Willow Glen Neighborhood Portfolio 1588 MERIDIAN AVE | 1591 HAMILTON AVE SAN JOSE, CA NON-ENDORSEMENT & DISCLAIMER NOTICE
Total Page：16
File Type：pdf, Size：1020Kb
OFFERING MEMORANDUM Willow Glen Neighborhood Portfolio 1588 MERIDIAN AVE | 1591 HAMILTON AVE SAN JOSE, CA NON-ENDORSEMENT & DISCLAIMER NOTICE 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. © 2018 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. Activity ID: XXXXXX ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. TABLE OF CONTENTS INVESTMENT OVERVIEW 01 SECTION 1 Offering Summary • Property Description • Offering Highlights Rent Roll • Regional Map • Aerial Map Property Photos • Parcel Map • Sales Comparables MARKET OVERVIEW 02 SECTION 2 Market Analysis • Demographic Analysis section 1 Investment Overview offering summary property description offering highlights rent roll property maps & photos sales comparables Commercial / Residential Opportunity 1588 Meridian Avenue 1591 Hamilton Avenue Marcus & Millichap is pleased to announce this exciting opportunity to purchase a fully occupied center located at 1582-1596 Meridian Avenue in San Jose. 1582 Meridian Avenue is being offered with the adjacent single-family home positioned directly to the East. The homes address is 1591 Hamilton Avenue. The commercial parcel (APN# 429-47-017) consists of 18,480 sq. ft. on the corner of Meridian and Hamilton Ave. The residential parcel (APN# 429-47-016) consists of 8,990 sq. ft. with a single family home (two- bedroom|one-bath) of approximately 735 sq. ft. on it. Together the commercial and residential buildings total 8,873 sq. ft. The property has ample parking with 11 spaces in the front and 20 parking spaces in the rear. The retail portion includes seven commercial tenants with a strong historic occupancy rate. All tenants are currently paying below market rents allowing a new owner plenty of rental upside into the future. INVESTMENT HIGHLIGHTS High daily vehicle counts Below Market Rents Phenomenal Corner location Long term well established local tenant mix Adjacent to Walgreens and Shell Station Grocery (Safeway) and drug (Walgreens & Rite Aid) anchored intersection Historically low vacancy rate 6 INVESTMENT OVERVIEW INVESTMENT OVERVIEW 7 34,302 VPD 22,919 VPD 31,212 VPD 19,738 VPD 8 INVESTMENT OVERVIEW INVESTMENT OVERVIEW 9 10 INVESTMENT OVERVIEW INVESTMENT OVERVIEW 11 OFFERING HIGHLIGHTS // 1588 MERIDIAN AVENUE SAN JOSE, CA 95125 OFFERING PRICE UNPRICED PROPERTY DESCRIPTION *Building Square Feet 8,138 Lot Size 18,480 SF / 0.42 Acres Type of Ownership Fee Simple Units 7 Suites Occupancy 100% Sprinklers No Zoning CP *Building manager provided above sq. ft. which differs from County Recorder’s Office that has the total sq. ft. at 8,138. Buyer to conduct their own investigation to determine the correct sq. ft. 12 EXECUTIVEINVESTMENT SUMMARYOVERVIEW RENT ROLL // MERIDIAN CENTER Rentable Lease Lease % of Lease Base Monthly NNN Total INC Increased Security Renewal Unit Tenant Square CAM Starts Ends Building Term Rent Per Sq Ft Sq Ft Payment Date Amount Deposit Options Feet Bullseye One 3 1584 01/01/19 12/31/20 1,330 16.17% 24 $ 2,424.62 $ 1.82 $ 666.42 $ 0.50 $ 3,091.04 N/A N/A $ 3,000.00 Bishop Available upon execution of the confidentiality agreement year term Meridian 1586 05/01/18 04/30/23 1,095 13.31% 60 $ 2,393.09 $ 2.19 $ 548.51 $ 0.50 $ 2,941.60 05/01/21 $ 2,464.89 $ 1,500.00 None Computer Services Available upon execution of the confidentiality agreement 1588 Dynamic Salon 4/1/2019 03/31/24 1,100 13.37% 60 $ 1,652.11 Available$ 1.50 upon$ 550.98 execution$ 0.50 of the$ 2,203.09 confidentiality05/01/21 $agreement 1,701.68 $ 2,278.51 One 3 1590 Bay Drycleaners 05/01/18 04/30/21 1,046 12.72% 36 $ 2,285.98 $ 2.19 $ 524.20 $ 0.50 $ 2,810.18 N/A N/A $ 2,200.00 Available upon execution of the confidentiality agreement year term One 3 1592 Manley’s Donuts 05/01/18 04/30/23 1,050 12.77% 60 $ 2,060.81 $ 1.96 $ 526.26 $ 0.50 $ 2,587.07 05/01/21 $ 2,122.64 $ 2,520.00 Available upon execution of the confidentiality agreement year term 1594 Taqueria El Dorado 06/01/19 05/31/24 1,110 13.50% 60 $ 2,363.47Available$ 2.13 upon$ 556.34 execution$ 0.50 of the$ 2,919.81 confidentiality06/01/21 $agreement 2,434.38 $ 2,050.00 None Willow One 5 1596 04/01/20 03/31/23 1,494 18.16% 60 $ 3,468.75 $ 2.32 $ 748.38 $ 0.50 $ 4,217.13 05/01/21 $ 3 ,572.81 $ 2,988.00 Glen Shoe Repair Available upon execution of the confidentiality agreement year term TOTAL 8,225 100.00% $ 16,648.83 $ 2.02 $ 4,121.09 $ 0.50 $ 20,769.92 $ 16,536.51 INVESTMENT OVERVIEW 13 OFFERING HIGHLIGHTS // 1591 HAMILTON AVENUE SAN JOSE, CA 95125 OFFERING PRICE UNPRICED PROPERTY DESCRIPTION Building Square Feet 735 Bedrooms 2 Bathrooms 1 Lot Size 8,990 SF / 0.2 Acres Type of Ownership Fee Simple Tenancy To be Delivered Vacant Zoning R-1-8 14 EXECUTIVEINVESTMENT SUMMARYOVERVIEW INVESTMENT OVERVIEW 15 16 EXECUTIVEINVESTMENT SUMMARYOVERVIEW 1588 MERIDIAN AVENUE INVESTMENT OVERVIEW 17 SPECIAL COVID-19 NOTICE CONFIDENTIALITY & DISCLAIMER All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.) section 2 Market Overview location overview market research demographics SAN JOSE CALIFORNIA POPULATION 1.3 MILLION 20 MARKET OVERVIEW propertyname MARKET OVERVIEW SAN JOSE OVERVIEW 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 1,315 square miles is unincorporated ranch and farmland. The metro contains roughly 2 million inhabitants and more than half of the region’s residents reside in the city of San Jose. It is the metro’s largest city with more than 1 million residents, followed by Sunnyvale and Santa Clara. 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. METRO HIGHLI GHTS PREMIER HIGH-TECH CENTER Silicon Valley’s dense concentration of high-tech jobs is world renowned, attracting a variety of large employers and startups. HIGH INCOMES Well-paying jobs in the tech sector contribute to a median annual household income level that is almost double the U.S. median. HIGHLY EDUCATED WORKFORCE Nearly half of all residents age 25 and older have obtained at least a bachelor’s degree, well above the U.S. average. 1 MARKET OVERVIEW 21 propertyname MARKET OVERVIEW ECONOMY ▪ The San Jose employment base contains more than 1.1 million workers, ranking the metro as one of the 30 largest job markets in the nation.