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OFFERING MEMORANDUM
Market Tavern Dublin, CA | San Francisco Bay Area TABLE OF CONTENTS
PROPERTY HIGHLIGHTS 1 SITE PHOTOS 5
PROPERTY INFORMATION 2 AERIALS 6
TENANT INFORMATION 3 ABOUT THE AREA 8
SITE PLAN 4 DEMOGRAPHICS 12
Disclaimer MGM Capital Corp dba Preserve West Capital and Lockehouse Retail Group, Inc. (collectively, “Broker”) has been retained on an exclusive basis to market the property described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
Putnam Daily David Kram Rachel Kram Kirk DeClark Michael Maffia Partner Managing Director Vice President Vice President Managing Partner 415.445.5107 650.445.4491 650.445.4490 650.548.2664 415.373.4060 [email protected] [email protected] [email protected] [email protected] [email protected] CA RE License #01750064 CA RE License #01848816 CA RE License #02021048 CA RE License #01229650 CA RE License #01340853 PROPERTY HIGHLIGHTS
( 254 ,000 AAD T) HACIENDA CROSSINGS
• Rare 25-Year Absolute NNN Lease to Expanding Restaurant Concept in • Substantial Development Activity in Surrounding Area Infill Bay Area Location Hacienda-- 5,200+ New DrResidential (27,900 Units & AADT) 1.5+ Million Square Feet of Commercial - - 10% Rental Escalations Every 5 Years Space in Development Pipeline • Excellent Access and Visibility at I-580 Junction -- Adjacent to Planned IKEA-Anchored “Lifestyle Retail” Development Featuring 93,000 Square Feet of Retail Shops and Restaurant Space -- 281,900 Combined AADT • Affluent Consumer Base within 5 Mile Radius • Prominent Retail Location Outparcel to Hacienda Crossings Power Center -- Average Household Income of $189,260 -- Anchor Tenants Include Regal Cinemas, TJ Maxx, Bed Bath & Beyond, Best Buy, & More -- 35% of Households Earn $200,000+ Annually -- Other Major Tenants in Surrounding Area Include Whole Foods, Walmart, • Ideally Situated within Bay Area Economic Hub Target, & More -- GDP of $820.9 Billion within San Jose-San Francisco-Oakland Combined • Robust Demographics in California’s Fastest Growing City Statistical Area -- Population of 1.12 Million within 15 Mile Radius -- Major Companies Headquartered in Region Include Tesla, Salesforce, Dropbox, PG&E, Yelp, Twitter, Uber, Lyft, Mozilla, Airbnb, & More -- Annual Rate of 2.10% within 1 Mile of Site • Approximately 23 Miles from Oakland, 31 Miles from San Jose, and 35 -- 11th Fastest-Growing City in U.S. in 2018 Miles from San Francisco • Strong Intrinsics in Market Where Demand for Real Estate Far Exceeds Supply – Irreplaceable Bay Area Infill Location PRESERVE WEST CAPITAL + LOCKEHOUSE | 1 PROPERTY OVERVIEW
Location PRICE The property is located at 4775 Hacienda Drive in Dublin, California. Lot Size $6,657,000 Approximately 1.079 acres or 46,980 square feet. 6.00% CAP Rate Improvements A 6,722 square foot retail restaurant building for Market Tavern.
Parking Net Annual Income There are 81 parking spaces available onsite with additional parking available throughout the center. Years Annual Rent Return
Lease Years 1-5 $399,406 6.00%
Leased for 25 Years to Market Tavern Dublin, LP from March 25, 2018 through Years 6-10 $436,906 6.56% March 31, 2043 at an initial annual rent of $399,406. Rent is to increase by 10% every five years throughout the primary term of the lease. There are two (2) five- Years 11-15 $478,156 7.18% year options to renew the lease at market rent, not to be less than current rent in the term preceding the option period. The lease is net with tenant responsible Years 16-20 $523,531 7.86% for all taxes*, insurance, maintenance, including roof and structure, common area maintenance within the Tenant’s parcel, and its proportionate share of any amounts Years 21-25 $573,444 8.61% due under the REA. Years 26-30 (Option 1) FMRV n/a *If taxes increase within the first three calendar years of the lease term solely as the result of a sale or transfer of the premises, Tenant shall be responsible for Years 31-35 (Option 2) FMRV n/a 25% of the Tax Increase amount in the calendar year in which the increase takes effect, 50% of the Tax Increase amount in the first calendar year following the tax increase, 75% of the Tax Increase amount in the second calendar year following the tax increase, and 100% of the Tax Increase amount for the third calendar year Financing following the increase and every subsequent year thereafter. (Seller will credit the This property will be delivered free and clear of permanent financing. Buyer at closing any slippage on tax reimbursement not covered by the Tenant under its lease.) The lease is personally guaranted by Phillip Wong through March 25, 2021. The guarantor is required under the lease to maintain a term life insurance policy of $500,000, assigned to the benefit of the Landlord.
PRESERVE WEST CAPITAL + LOCKEHOUSE | 2 ABOUT THE TENANT
Market Tavern serves high quality food from scratch and unique beverages in a relaxed, upscale environment. The restaurant was founded in Stockton in 2013, and has expanded in recent years to its second location in Dublin, California. The restaurant offers a wide range of house-made breads, salads, starters, entrees, desserts, specialty drinks, and more, as well as a variety of pre-prepared meals, fresh-baked breads, and more in their “grab and go” service market.
PRESERVE WEST CAPITAL + LOCKEHOUSE | 3 SITE PLAN SITE