For Sale: 3315 Almaden Expressway
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FOR SALE: 3315 ALMADEN EXPRESSWAY EXCLUSIVE AGENT: ANN MARIE LAROCCO JOEL SENIOR VICE PRESIDENT C 650.224.3971 [email protected] BRE: #01463740 EXECUTIVE SUMMARY Ritchie Commercial, as exclusive advisor, is pleased to present the outstanding and rare opportunity to acquire this fully leased multi-tenant office investment situated on ±3.6 acres located in the heart of Silicon Valley’s San Jose, California. 3315 Almaden Expressway offers ±47,124 rentable square feet of high quality office space with approximately 500 lineal feet of exceptional Almaden Expressway visibility. The Property is situated along Almaden Expressway at Hillsdale with outstanding proximity to Silicon Valley freeways, transit, retail and food amenities, well established residential communities, Downtown San Jose and world renowned technology company headquarter sites such as Ebay, Apple, Google and Adobe. Nearby retail amenities are abundant and include the newly constructed Almaden Ranch featuring a Bass Pro Superstore, thirteen diverse restaurants and a new 115 bed hotel branded by Wyndham. Additional nearby amenities include Whole Foods and Westfield’s Oakridge Mall with 1.14 million square feet of retail and food services. In addition, demographics in this market are very strong with a 2017 1-Mile Average Household Income of $141,852. The Property can provide investment revenue with value add with near term rent adjustments and/or redevelopment opportunities. The Property offers at least two distinct and unique redevelopment opportunities. The first redevelopment scenario offers the rare opportunity to capitalize on an Urban Village designation with the potential for near term redevelopment as a Signature Project. The second redevelopment scenario utilizes the current coveted CP (Commercial Pedestrian) zoning and NCC (Neighborhood Community Commercial) Designation. The Commercial Pedestrian zoning permits a wide range of office, retail and other commercial uses, including medical office uses. 47,124 SF COVERED LAND ±3.6 URBAN VILLAGE VALUE ADD SIGNATURE PROJECT HIGHLY VISIBLE 100% LEASED ACRES DESIGNATION MULTI-TENANT POTENTIAL SAN JOSE LOCATION LEASED INVESTMENT Page 2 ALMADEN EXPRESSWAY@HILLSDALE/CAPITOL EXPRESSWAY, SAN JOSE, CA 95118 PROPERTY SUMMARY Page 3 ALMADEN EXPRESSWAY@HILLSDALE/CAPITOL EXPRESSWAY, SAN JOSE, CA 95118 PROPERTY SUMMARY – 3315 ALMADEN EXPRESSWAY Address 3315 Almaden Expressway 3315 ALMADEN EXPRESSWAY San Jose, California 95118 Year Built 1980 The ±47,124 RSF building sits on ±155,509 SF (±3.6 Building Size: 47,124 SF Lot Size: 3.6 Acres / 155,509 SF Acres). The building is concrete tilt up construction APN: 451-09-067 with stucco exterior and floor to ceiling arched Parking 3.80 /1,000 (179 Spaces) window lines and is capped by a clay tile mansard Current Zoning/General CP / Neighborhood Community roof façade. Package rooftop HVAC units provide Plan Commercial/Almaden Hillsdale Urban Designation/Growth Village (Horizon III) zoned heating and cooling inside each suite. Area Type: Improvements were completed in 2014 which Current Use: Office Building included new signage, monument sign, Designation: Almaden Hillsdale Urban Village: contemporary landscaping with drip irrigation and Horizon III parking lot resurfacing with ADA compliance Floors One features. % Leased 100%* Since most suites have their own restroom facilities, building common area is minimized emphasizing a low maintenance approach for property management. As an added on-site amenity, iJava offers tenants and their clients convenient on-site café services. The current owner-user has been in place for over 25 years. Pride of ownership is evident by the attention to detail and quality of the improvements throughout the Property. *Including Owners/Users as future potential leaseback tenants Page 4 ALMADEN EXPRESSWAY@HILLSDALE/CAPITOL EXPRESSWAY, SAN JOSE, CA 95118 PROPERTY SUMMARY – PARCEL MAP 3315 Almaden Expressway 451-09-067 ±3.57 Acres / 155,509 SF 3315 Almaden Expressway Page 5 ALMADEN EXPRESSWAY@HILLSDALE/CAPITOL EXPRESSWAY, SAN JOSE, CA 95118 PROPERTY SUMMARY: AREA MAPS SITE Page 6 ALMADEN EXPRESSWAY@HILLSDALE/CAPITOL EXPRESSWAY, SAN JOSE, CA 95118 PROPERTY SUMMARY– AREA AMENITY MAP Page 7 ALMADEN EXPRESSWAY@HILLSDALE/CAPITOL EXPRESSWAY, SAN JOSE, CA 95118 REDEVELOPMENT OPPORTUNITY: ± 3.6 ACRES URBAN VILLAGE / SIGNATURE PROJECT This ±3.6 Acre Property in San Jose, California is uniquely located within an Urban Village designation. The Property offers two near term redevelopment opportunities; with its current CP Zoning as well as with its Urban Village Designation and potential for a Signature Project. There may be an immediate opportunity for a buyer to redevelop the Property under a scenario called a Signature Project which is an exception process within the Urban Village designation that allows high profile locations to proceed with redevelopment in advance of their allocated Horizon (phase). As this economic cycle continues to bring market changing milestones to San Jose such as the potential Google development in Downtown San Jose, this Property is well positioned to capitalize on a similar market changing opportunity. While the opportunity to redevelop the Property under this designation is by default approximately 8-10 years in the future since it has been assigned to Horizon III; the city has developed an exception process called a Signature Project which, if successful, would allow for a redevelopment under the Urban Village designation “immediately”. An Urban Village carries very dense residential requirements as well as required job creation by way of increased commercial square footage. This in turn translates to increased land value. A Signature Project is a process by which a property located within an Urban Village designation can submit an application to redevelop utilizing the Urban Village designation in advance of its predetermined phase or Horizon. Several Signature Projects have recently secured approvals and several projects are actively seeking approval at this time. Examples of approved sites are: Sparta Student Housing Project, Orchard /City Ventures Project and the Volar Project. Signature Project: http://www.sanjoseca.gov/index.aspx?NID=4294 Urban Village City of San Jose Data Sheet: http://www.sanjoseca.gov/index.aspx?NID=1738 Page 8 ALMADEN EXPRESSWAY@HILLSDALE/CAPITOL EXPRESSWAY, SAN JOSE, CA 95118 MARKET OVERVIEW Page 9 ALMADEN EXPRESSWAY@HILLSDALE/CAPITOL EXPRESSWAY, SAN JOSE, CA 95118 SAN JOSE MARKET OVERVIEW San Jose, California is home to over one million people from diverse cultures with global reach. The city is the tenth most populous city in the United States. It is also located in the heart of Silicon Valley. Cisco Systems, eBay, Adobe Systems, PayPal, Brocade, Samsung, Acer, and Western Digital maintain their headquarters in San Jose. In addition, recent announcements have added Amazon and Google to the downtown landscape nearly doubling employment for the downtown market. Silicon Valley has been one of the hottest office markets in the expansion. Vacancy rates now stand well-below the lows of the last cycle, and the historical average, while year-over- year rent growth was still around 6% at the end of 2016. The market should remain very tight in the face of new supply, around 5.5 million SF was under construction as of May 2017, as most construction is heavily preleased and there is a substantial list of upcoming tenant expansions. Pricing continues to increase in the metro, however Photo: San Jose Mercury News overall volume trailed well behind the record levels seen in 2015. Top Five The City is home to NHL’s Sharks, the SAP Center and the Convention Center which attracts over one Technology Employers million conference attendees per year. In addition to several new high rise residential towers, Google has in San Jose been touted as the name behind recent land acquisitions where a developer plans to build a mixed use campus that would accommodate over 20,000 Google employees. The recent announcement regarding Google’s impending project in Downtown San Jose which is promising 20,000 new jobs to downtown, spawned a flurry of activity within the commercial leasing and sales markets for downtown and the surrounding areas. The Almaden Expressway/Capitol Expressway/Hillsdale Avenue sub-market is anticipated to benefit from this flurry. As tenants become outpriced in downtown, demand will increase in the surrounding markets increasing the pace of absorption and increasing lease rates and sale prices. Page 10 ALMADEN EXPRESSWAY@HILLSDALE/CAPITOL EXPRESSWAY, SAN JOSE, CA 95118 SILICON VALLEY REGIONAL MARKET OVERVIEW SAN FRANCISCO BAY AREA/SILICON VALLEY Favored for its temperate climate, well educated workforce and as the world’s headquarters for entrepreneurial hi-tech ventures, the San Francisco Bay Area is regarded as one of the most attractive and innovative regions in the world. The impact of Google, Facebook, Apple and other Silicon Valley headquartered technology companies together with 25% of the World’s venture capital totaling over $10 Top Five Employers in The San Francisco Bay Area is one of the Billion drive the Bay Area Economy. Silicon Valley nation’s most impressive geographies The fierce competition for talent producing a GDP of over $500 Billion attracts college graduates and and ranking 3rd globally for GDP per entrepreneurs from all corners of the capita. Silicon Valley is home to over 7 Globe and further drives Bay Area million people. Technology and employment. Innovation have dominated Silicon