Millich Drive Campbell Ca 95008
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5 9 5 MILLICH DRIVE CAMPBELL CA 95008 OFFERING MEMORANDUM • WEST VALLEY JEWEL BOX OFFICE Capital Markets | Investment Properties TO CUPERTINO 12 MINUTES GAS Tapsilog HASH NEGEEN HOUSE PERSIAN Bistro TO LOS GATOS 13 MINUTES TO DOWNTOWN CAMPBELL Frozen Yogurt 8 MINUTES HAMILTON AVE SAN TOMAS EXPWY TO DOWNTOWN SAN JOSE 12 MINUTES TO WILLOW GLEN 11 MINUTES PAGE 2 THE OFFERING Offered for sale by CBRE is a ±24,281 SF, fully rehabbed multi-tenant jewel box office building in the heart the West Valley. This represents the opportunity for a investor or owner-user to capture a piece of this high-demand market for self-use or investment. TO SANTA CLARA THE PROJECT 13 MINUTES ADDRESS 595 Millich Drive, Campbell, CA PARCEL # 305-15-011 TYPE Office BUILDING SIZE ±24,281 SF LAND SIZE 1.07 acres # OF BUILDINGS 1 STORIES 2 YEAR BUILT 1978 YEAR RENOVATED 2018 # OF TENANTS 3 5 9 5 # OF SUITES 6 MILLICH DRIVE OCCUPANCY PERCENTAGE 77% CAMPBELL CA 95008 PARKING 94 spaces, 3.87/1,000 PAGE 3 5 9 5 MILLICH DRIVE CAMPBELL CA 95008 PAGE 4 FULLY RENOVATED: The project is fully renovated, including new building systems, exterior finishes, ADA compliance, and all but one suite modernized. This offers a new owner a highly efficient and attractive asset with no imminent capital expenditures. LOCATION & IDENTITY: The project sits in the West Valley area of Silicon Valley where many companies choose to call home due to the abundant and convenient amenities, proximity to corporate decision makers, and the growing priority of commute efficiency. The site has excellent visibility from San Tomas Expressway which is a heavily traveled artery between the affluent areas to the west and the impacted 101 corridor to the east. MARKET POSITIONING: This project is well positioned to capitalize upon the large gap between the Class A and Class B market rental rates. Very little of the West Valley Office market has been modernized and what has been is almost exclusively Class A product. This building has Class A finishes and feel with the convenience of Class B occupancy. DIVERSITY OF RENT ROLL: Like the West Valley market, the rent roll in the project is diverse and includes auto-tech, insurance services, and theraputic- medical. This provides a future owner with sector diversification and a market full of tenants in a variety of industries. OCCUPANCY FLEXIBILITY: The seller has left vacant space available to an owner user which is currently over-subscribed with tenant demand. Additionally there is ±3,557 SF rolling in 2019 on the ground floor allowing a new owner to control up to ±9,227 SF (38%) of the building within 18 months of acquisition, or for an HIGHLIGHTS investor to push rents dramatically on this fully renovated product. PAGE 5 property The 595 MILLICH building is an approximately ±24,281 SF. multi-tenant office CONSTRUCTION building on a ±1.07 acre parcel in Campbell. It WALLS Wood Frame has been fully renovated with Class A exterior, ROOF TPO 60 mil Energy atrium, and common area finishes. The property Star white single-ply has signage exposure to the heavily traveled San membrane Tomas Expressway. CEILING HEIGHT 9’ SPRINKLERS Yes PROJECT 595 Millich ADDRESS 595 Millich Drive HVAC 15 new units totaling 60 tons Campbell, CA 95008 OWNERSHIP TYPE Fee Simple SUBMARKET West Valley, Campbell PARCEL NUMBER 305-15-011 USE AND DEVELOPMENT TYPE OF PROPERTY Office (100%) CURRENT ZONING Planned Development BUILDING SIZE ±24,281 SF LAND SIZE 1.07 acres CURRENT FAR 0.51 # OF BUILDINGS 1 GENERAL PLAN General Commercial STORIES 2 # OF TENANTS 3 # OF SUITES 6 YEAR BUILT 1978 YEAR RENOVATED 2018 ELEVATOR New WALK SCORE Very Walkable (72) TRANSIT SCORE Some Transit (33) PAGE 6 PAGE 7 property FULLY RENOVATED ••• The exterior of the project has been fully renovated with Class A finishes, including but not limited to, new TPO Roof overlay, HVAC, smooth stucco with ledger stone & aluminium reveals, elevator, structural steel stairs, stainless steel railings, new restroom layouts & finishes, landscaping, water management system, freshly sealed parking lot, and more. HIGHLY EFFICIENT ••• The building’s efficiency is dramatically improved after the renovation thanks to new HVAC and LED lighting . Electrical utility costs have dropped 25%-35%, giving this building an economic advantage over the majority of the competition. SPACE CONTROL ••• The seller has left vacant space available to an owner user which is currently over-subscribed with tenant demand. Additionally there is ±3,557 SF rolling in 2019 on the ground floor allowing a new owner to control up to ±9,227 SF (38%) of the building within 18 months of acquisition, or for an investor to push rents dramatically on this fully renovated product. RENOVATED INTERIORS ••• 85.4 percent of the building has new interior finishes including new LED interior lighting with motion sensors, modernized kitchens, 9’ finished ceilings, full height wood veneer doors with new clear aluminum door frames and sidelights. PAGE 8 property OPEN ATRIUM LAYOUT ••• This layout is found in a very small segment of Silicon Valley buildings because it reduces site density. However, it allows for exceptionally high levels of natural light on both the first and second floors since the light enters from two directions into a relatively shallow bay depth. ADA COMPLIANCE ••• The property is now fully ADA compliant. Some of the work required to comply with the American Disabilities Act was the installation of the new elevator, enlarged and reconfigured restrooms and new handicapped parking stalls with reworked path of travel to and from the building entrances. This allows a new owner the opportunity to make future building modifications without the fear of triggering code compliance issues which have already been addressed by the current ownership. WALKABLE LOCATION ••• PROPERTY OVERVIEW The site has a walking score of 77 which indicates it is highly walkable. There are several dining and convenience options within a short walk across San Tomas Expwy, including a Starbucks, Safeway and Gas, Citibank, Gold’s Gym and restaurants. IDENTITY / VISIBILITY ••• The site/building benefits from visbility by traffic on San Thomas which is a heavily traveled artery between the Campbell/Los Gatos area and Santa Clara. The building can be seen from North and South bound traffic and the opportunity exists to place signage on the building to promote corporate identity. PAGE 9 NEW ROOF A new energy star rated, white, mechanically attached, 60mil TPO roof overlay membrane was recently installed with new flashing, counterflashing, and boots at each penetration. The new roof comes with a 15 year manufacturer’s warranty and 5-year workmanship warranty. A new mansard roof and new fascia BIKE LOCKERS (installed after photo) PARKING LOT The entire parking lot was slurry sealed after select areas of asphalt were removed and replaced. The lot has been re-striped to include ADA path of travel demarcations and handicapped stalls. Solar timed LED parking lot lights have been installed. PAGE 10 PAGE 10 NEW HVAC All HVAC units on the roof have been replaced with new Bryant High- efficiency, energy saving, low NOx with vibration isolated compressors. There are a total of 14 package units including (3) 5 ton units; (9) 4 ton units; (2) 3 ton units. There is an additional 3 ton split system serving the second floor server room. The estimated efficiency gain for these new units is 25%-35%. NEW EXTERIOR FINISHES The majority of the exterior surfaces are new. This includes new tile on the walkways, smooth stucco with aluminum reveals, ledgerstone, and a steel awning over the front door. PAGE 11 PAGE 11 RENOVATION New SECURITY SYSTEM A new security system has been installed at the common area entrances of the building. Access comes via key fob and/or key pad. Security cameras monitor ongoing activity on the premises. NEW ELEVATOR The building renovation includes a new Phoenix ADA compliant hydraulic elevator model #SLF with 3500 LB capacity. NEW STEEL WORK New steel and concrete staircases have been installed within the atrium area. The handrails of the staircases as well as the guardrails around the upper walkway are stainless steel and add greatly to the aesthetic of the areas. NEW Landscaping All landscaping around the exterior of the building and in the atrium has been replaced with new drought tolerant landscaping. Additionally, there are timed and zoned sprinklers to optimize water usage and a beautiful water feature which adds to the peaceful look and feel of the atrium. PAGE 12 PAGE 12 RENOVATION kitchens All kitchens and kitchenettes are modern with top of the line finishes including quartz countertops, Wilsonart laminate cabinetry, plank LVT with a vintage reclaimed oak visual. NEW INTERIOR FINISHES Over 85% of the interior space has been fully renovated including new doors, aluminum frames with sidelights, carpet, paint, kitchens, and motion sensing LED lighting. SECOND FLOOR The entire second floor is occupied by Arteris. Their space includes a full kitchen as well as a separate kitchenette, all new finishes, an en suite shower, and IT room with dedicated air. Reconfigured and Updated Restrooms The common area restrooms (upstairs and downstairs) were upgraded and reconfigured for ADA compliance. All new finishes were installed, including ceramic tile, partitions, lighting and fixtures. PAGE 13 PAGE 13 TRANSPORTATION CALTRAIN TO PALO ALTO AND SAN FRANCISCO DIRIDON STATION 880 280 WEST SAN CARLOS PITTSBURG CONCORD SAN RAFAEL RICHMOND RACE STATION 87 WALNUT CREEK 280 MILL VALLEY BERKELEY CALTRAIN FRUITDALE STATION MACARTHUR LAWRENCE EXPWY OAKLAND EMBARCADERO W. OAKLAND WIlliams rd BASCOMAVE COLISEUM WINCHESTER AVE WINCHESTER SAN FRANCISCO 17 SAN LEANDRO BASCOM OAKLAND DUBLIN STATION DALY CITY BAY FAIR DALY CITY SAN TOMAS EXPWY PAYNE AVE HAYWARD SAN BRUNO UNION CITY almaden rd SOUTHWEST EXPY AVE MERIDIAN millbrae HAMILTON AVE LIGHT RAIL SARATOGA AVE SAN MATEO FREMONT FREMONT DOWNTOWN CAMPBELL REDWOOD CITY STATION CAMPBELL AVE MILPITAS PALO ALTO MILPITAS 5 9 5 AVE LEIGH MILLICH DRIVE winchester curtner AVE BERRYESSA STATION S.