2664 Berryessa Road
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OFFERING MEMORANDUM CLICK HERE FOR PROPERTY VIDEO BERRYESSA PROFESSIONAL CENTER 2664 BERRYESSA ROAD | SAN JOSE | CALIFORNIA CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. ACTIVITY ID: Z0010963 EXCLUSIVELY LISTED BY KIRK TRAMMELL JOSHUA JOHNSON DAVID CUTLER Senior Managing Director Investments Senior Associate Vice President Investments Palo Alto Office Palo Alto Office Palo Alto Office Cell: 650.450.0920 // Office: 650.391.1809 Cell: 650.208.5282 // Office: 650.391.1784 Cell: 650.269.5637 // Office: 650.391.1753 [email protected] [email protected] [email protected] License: CA 01038657 License: CA 01930127 License: CA 01514751 Multi-Tenant Medical/ Dental Office Building 2664 BERRYESSA ROAD, SAN JOSE 3 EXECUTIVE SUMMARY 2664 BERRYESSA ROAD | SAN JOSE | CALIFORNIA $12,350,000 Cap Rate Current 4.87% | Market 6.62% APN 591-01-038 Net Rentable Area 30,683 SF Price/SF $402.50 Lot Size 2.28 Acres Zoning CO, Commercial Office Year Built 1979 Number of Stories 2 Number of Units 24 Easy Access From Value-Add Significant Recent Most Tenants are Dentists with Interstate 680, Capitol Avenue, Medical/Dental Property Capital Improvements Long-Term Occupancy and Berryessa Road 4 2664 BERRYESSA ROAD, SAN JOSE EXTENSIVE RECENT CAPITAL IMPROVEMENTS; NEW ROOF, NEW HVAC, AND MUCH MORE 2664 BERRYESSA ROAD, SAN JOSE 5 INVESTMENTS HIGHLIGHTS MULTI-TENANT MEDICAL/DENTAL OFFICE PROPERTY Berryessa Professional Center is a multi-tenant medical/dental building with 24 suites that is primarily occupied by dental practices VALUE-ADD INVESTMENT This offering provides the investor an opportunity to substantially increase the property income by leasing up vacant space and moving contract rents to market EXTENSIVE CAPITAL IMPROVEMENTS Owner has recently invested more than $750,000 in capital improvements, including replacing the roof, installing new HVAC units, rebuilding all decks, railings, and exterior stairways, installing new compressor and vacuum systems, and much more STABLE TENANT PROFILE Most tenants are dental practices that have occupied the property on a long-term basis DENSELY POPULATED NEIGHBORHOOD More than 213,000 people live within three miles of the property, providing a large prospective client base for tenants HIGH-TRAFFIC LOCATION AND EXCELLENT ACCESS The property is less than one-half mile from an interchange with Interstate 680 and more than 25,000 vehicles pass the site each day on Berryessa Road 6 2664 BERRYESSA ROAD, SAN JOSE PROPERTY PHOTOS 2664 BERRYESSA ROAD, SAN JOSE 7 INTERIOR PHOTOS 8 2664 BERRYESSA ROAD, SAN JOSE PREMIER HIGH-TECH CENTER N BERRYESSA PROFESSIONAL CENTER MAJOR EMPLOYERS Google Apple Cisco Systems County of Santa Clara Adobe Systems Inc Hewlett-Packard Co. City of San Jose Intel Corp eBay US Veterans Medical Center 2664 BERRYESSA ROAD, SAN JOSE 9 SURROUNDING RETAIL McDonalds CAPITOL AVENUE 25,000 CARS PER DAY BERRYESSA ROAD BERRYESSA PROFESSIONAL CENTER 10 2664 BERRYESSA ROAD, SAN JOSE AERIAL MAP DENSELY POPULATED NEIGHBORHOOD BERRYESSA ROAD 2664 BERRYESSA ROAD, SAN JOSE 11 OPERATING DATA Current Rent Market Rent Total $ PSF Total $ PSF Rental Income $762,017 $24.84 $1,009,286 $32.89 Expense Reimbursement $149,329 $4.87 $187,030 $6.10 Vacancy (5.0%) $0 $0.00 ($59,816) ($1.95) Effective Gross Income $911,345 $29.70 $1,136,500 $37.04 Real Estate Taxes $160,065 $5.22 $160,065 $5.22 Property Insurance $8,000 $0.26 $8,000 $0.26 Electricity $23,000 $0.75 $23,000 $0.75 Water $8,700 $0.28 $8,700 $0.28 Common Area Utilities $6,250 $0.20 $6,250 $0.20 Trash Removal $17,800 $0.58 $17,800 $0.58 Repairs & Maintenance $17,400 $0.57 $17,400 $0.57 Janitorial $13,860 $0.45 $13,860 $0.45 Landscaping $10,240 $0.33 $10,240 $0.33 General & Administrative $7,600 $0.25 $7,600 $0.25 Management Fee (4.0%) $36,454 $1.19 $45,460 $1.48 Total Operating Expenses $309,369 $10.08 $318,375 $10.38 Net Operating Income $601,977 $19.62 $818,125 $26.66 12 2664 BERRYESSA ROAD, SAN JOSE OPERATING DATA Current Rent Market Rent Total $ PSF Total $ PSF Rental Income $762,017 $24.84 $1,009,286 $32.89 Expense Reimbursement $149,329 $4.87 $187,030 $6.10 Operating Expense Tenant/Landlord Responsibility Vacancy (5.0%) $0 $0.00 ($59,816) ($1.95) Real Estate Taxes Tenant Pays Pro Rata Share of Increase Over Base Year Effective Gross Income $911,345 $29.70 $1,136,500 $37.04 Property Insurance Tenant Pays Pro Rata Share of Increase Over Base Year Real Estate Taxes $160,065 $5.22 $160,065 $5.22 Electricity Tenant Pays Pro Rata Share Property Insurance $8,000 $0.26 $8,000 $0.26 Water Tenant Pays Pro Rata Share Electricity $23,000 $0.75 $23,000 $0.75 Common Area Utilities Tenant Pays Pro Rata Share Water $8,700 $0.28 $8,700 $0.28 Common Area Utilities $6,250 $0.20 $6,250 $0.20 Trash Removal Tenant Pays Pro Rata Share Trash Removal $17,800 $0.58 $17,800 $0.58 Repairs & Maintenance Landlord Pays Repairs & Maintenance $17,400 $0.57 $17,400 $0.57 Janitorial Landlord Pays Janitorial $13,860 $0.45 $13,860 $0.45 Landscaping Landlord Pays Landscaping $10,240 $0.33 $10,240 $0.33 General & Administrative Landlord Pays General & Administrative $7,600 $0.25 $7,600 $0.25 Management Fee Landlord Pays Management Fee (4.0%) $36,454 $1.19 $45,460 $1.48 Total Operating Expenses $309,369 $10.08 $318,375 $10.38 Net Operating Income $601,977 $19.62 $818,125 $26.66 2664 BERRYESSA ROAD, SAN JOSE 2664 BERRYESSA ROAD, SAN JOSE 1313 LOCAL MAP REGIONAL MAP BERRYESSA PROFESSIONAL CENTER N 14 2664 BERRYESSA ROAD, SAN JOSE PARCEL MAP APN: 591-01-038 REGIONAL MAP BERRYESSA PROFESSIONAL CENTER 2664 BERRYESSA ROAD, SAN JOSE 15 DEMOGRAPHICS ABOUT SAN JOSE, CALIFORNIA Known to the world as Silicon Valley, the San Jose metro is located at the southern end of the San Francisco Bay and encompasses Santa Clara and San Benito counties. A large portion of the area’s NEIGHBORHOODS AND DISTRICTS 1,315 square miles is unincorporated ranch and farmland. The metro contains more than 2 million Santana Row inhabitants in 15 cities. More than half of the region’s residents reside in the city of San Jose. It The Alameda is the metro’s largest city with more than 1 million residents, followed by Sunnyvale and Santa Clara. There are various Fortune 500 companies headquartered in San Jose, including Intel, Cisco Systems, Apple Inc., eBay and Google Inc. Venture capital funds received in the 1990s helped to turn the area into the world’s most prominent technology hub, a distinction that remains today. The San Jose metro has an enviable combination of major universities that produce a highly SoFa District Rose Garden educated workforce, cutting-edge firms and exceptional affluence. Residents can visit a plethora of museums including the San Jose Museum of Art and the Tech Museum of Innovation. Santa Clara County is home to performing arts companies and hosts the San Jose Jazz Festival. The San Francisco 49ers play their home games at Levi’s Stadium and the San Jose Sharks hockey team plays at the SAP Center. Other sports venues include the San Jose Municipal Stadium and Buck Communications Hill Palm Haven Shaw Stadium.