2201 Shattuck Avenue Berkeley, CA
FOR SALE Exclusively Offered by:
John Gordon (510) 704-1800 [email protected]
2201 Shattuck Avenue Berkeley, California
Table of Contents
Investment Summary
• Investment Highlights • Offering Overview • Projected Income and Expenses
Property Description
• Building Overview • Tenant Overview • Aerial Map • Street Map • Plot Map • Floor Plans
Location
• Downtown, UC Berkeley and the Shattuck Corridor • Downtown Demographic Information
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INVESTMENT SUMMARY
Investment Highlights:
Premier Location
• Highly visible corner location in the heart of downtown Berkeley • Fronts onto Shattuck Avenue, Downtown Berkeley’s main street • High foot traffic and car traffic • Across the street from the downtown Berkeley BART station entrance with one of the largest rider counts in the system • One block from UC Berkeley campus • Daytime population of over 72,000 • All major amenities located within walking distance • Angled street parking in front of building • Population within 1 mile - 48,000 • Population within 3 miles - 182,000
Well Positioned and Well Appointed Building
• Extraordinary display exposure with wrap-around corner windows • Ground floor configured for multiple tenants with 5,100 and 7,064 sq. ft. retail spaces. Possibility of separating the 5,100 space into two spaces or combining the entire ground floor to accommodate a 14,500+ sq. ft. retail user • Elaborate tenant improvements at 2201 Shattuck including: dropped ceilings, track lighting, HVAC, concrete slab floor, well appointed dressing rooms, extensive backroom shelving • Upstairs office space built out in 1998 at a TI cost of over $100/sq. ft. - with high ceilings and a light and airy feel. Many private offices with windows, large conference rooms, built in AV facilities, outdoor deck areas, kitchen, and multiple lounge areas that facilitate both solitary and collaborative work needs
Offering Price
• $7,950,000
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Offering Overview
Address • 2201-2117 Shattuck Ave • 2108 Addison (legal address)
Parcel Number Situated in the City of Berkeley, County of Alameda, and is described as Parcel # 59-2030-001
Lot Area +/- 17,854 sq. ft.
Rentable Area +/- 26,206 sq. ft.
Rentable Spaces • 12,164 sq. ft. of ground floor retail space, that can be divided into 5,100 & 7,064 sq. ft. • 2,400 sq. ft. of barn/warehouse space that can be combined with retail space • 11,642 sq. ft. of second floor office space leased through 1/31/2009 at $1.82/sq. ft. NNN through 1/31/07
Zoning Berkeley Central Commercial District (C-2) with Arts District Overlay
Projected Annual Net $569,834 Operating Income
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PROPERTY DESCRIPTION
Building Overview
2201 Shattuck Ave is an “L”-shaped, two-story, mixed-use building on the southeast corner of Shattuck Avenue at Allston Way. It is a highly visible location; one block south of the main entrance to the downtown Berkeley BART station and one block west of UC Berkeley. This building is on the market for the first time in decades, presenting a once in a lifetime opportunity for an interested buyer to own a highly desirable corner of downtown Berkeley. This is one of the most prominent corners in downtown Berkeley and has been owned by the Havens family for generations.
The building is configured as follows: There are two retail spaces facing onto Shattuck Ave, a barn/warehouse space behind, and an office space on the second floor with a separate, secure entrance on Addison. There is also an elevator to the second floor. The retail spaces and barn/warehouse space are currently vacant, and the office space is leased through 1/31/2009 to the Berkeley Wireless Research Center, a consortium of industry, students, and faculty in the Department of EECS at the University of California at Berkeley and the Gigascale Silicon Research Center.
The building was previously the home of Edy’s Restaurant on the ground floor and KPFA upstairs. When Edy’s went out of business in the mid-1990s, the owner pre- leased downstairs space to Eddie Bauer and began the permitting process to renovate the building. It was an extensive renovation with only the east and south walls, and the “barn” behind the main building, remaining from the original. Everything else is brand new. The building was completely renovated to a very high building and design standard by Marcy Wong Architects.
Ground Floor Space
Eddie Bauer pre-leased 7,064 sq. ft. on the ground floor before construction began. They received a tenant improvement allowance of $100/sq. ft., which they used to build the facility. Eddie Bauer operated at this location until the chain declared bankruptcy. As part of the bankruptcy, this store closed, along with many other East Bay locations and the flagship store in downtown San Francisco. The space is currently available for lease at $2.50/sq. ft. NNN.
Gateway Computer leased the remaining 5,100 sq. ft. of ground floor space at this building. They did the build out for their store and operated successfully at the location
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until the chain closed all their operating stores. The space is currently available for lease at $2.50/sq. ft. NNN.
Barn/Warehouse Space – There is a 2,400 sq. ft. “barn” in the rear of this building that is a portion of what was believed to be Berkeley Farms (The rest of the Berkeley Farms building was demolished when the adjacent Gaia Building was built.) There was some seismic work done to the barn during the renovation process but it has not been occupied since the building was renovated.These ground floor spaces can be combined for a total of 12,164 (without the barn) or 14,564 sq. ft. (with the barn) of retail space.
Tenant Overview – Upstairs Office Space
The second floor space is leased to a department of the University of California at Berkeley called the Electronics Research Lab/ Berkeley Wireless Research Center (BWRC). The tenant is in year 7 of their 10 year lease. BWRC is a research consortium of industry, students and faculty in the Department of EECS at UC - Berkeley and the Gigascale Silicon Research Center. BWRC’s goal is to create an environment for research into the design issues necessary to support next generation wireless communication systems and expand the graduate research program in the wireless segment.
This second floor office space was built out in 1998 at a TI cost in excess of $100/sq. ft. It has high ceilings and a light and airy feel. There are many private offices with windows, large and small conference rooms, built-in AV facilities, two outdoor deck areas, a kitchen, and multiple lounges that facilitate both solitary and collaborative work needs.
UC Berkeley Lease Recap Lease Commencement February 1, 1999 Landlord Wells Fargo Bank as trustee for Weston Havens Trust Tenant Regents of the University of California Department: Electronics Research Lab/Berkeley Wireless Research Center (http://bwrc.eecs.berkeley.edu/) Lease Termination Date Termination Date: January 31, 2009 Monthly Rent $21,188.44 (2/1/06-1/31/07) Rent Increases 2.7% effective 2/1/07 ($21,770.54) 3.2% effective 2/1/08 ($22,469.06) Operating Expenses Triple Net - Tenant pays separately metered utilities and their property taxes and insurance. Landlord arranges for janitorial service which shall be reimbursed by Tenant Insurance Tenant shall procure and pay for Comprehensive or Commercial Form General Liability Insurance
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2201 Shattuck Avenue Projected Income and Expenses REVENUE Rent/ Market Rent Tenant Sq.Ft. Sq. Ft. Monthly Annual
Retail - projected rent 7,042 27.00% NNN 2.50 17,605 211,260
Retail - projected rent 5,000 19.17% NNN 2.50 12,500 150,000
UC Berkeley - second floor 11,642 44.63% NNN 1.87 21,188 254,256
Warehouse - projected rent 2,400 9.20% Gross 1.00 2,400 28,800
GROSS INCOME 26,084 100.00% 53,693 644,316
Vacancy factor 2.50% 1,342 16,108
EFFECTIVE GROSS 52,351 628,208
EXPENSES
Property Taxes 1.25% 8,333 100,000
Property Taxes-Special Assments $0.60 1,304 15,650
Insurance 625 7,500
Utilities 200 2,400
Water 250 3,000
Repairs & Maintenance 2.00% 1,047 12,564
Management 3.00% 1,571 18,846
Reserve 1.50% 785 9,423
Bus. Lic. 1.40% 733 8,795
TOTAL EXPENSES 14,848 178,179
Expense Reimbursements NNN = 90.80% 9,984 119,805
Net operating costs 4,864 58,374
NET OPERATING INCOME 47,486 569,834
NOTE: Information provided by Owner or other sources we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. All information should be verified prior to purchase or lease.
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Aerial View
Street Map
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Plot Map
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Floor Plan – First Floor
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Floor Plan – Second Floor
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DOWNTOWN, UC BERKELEY AND THE SHATTUCK CORRIDOR
Downtown Berkeley
Berkeley is densely populated with a highly educated, high-income population. There are close to 90,000 residents within a 1.5- to 2-mile radius of downtown. Almost a third of their households have annual incomes greater than $100,000. 32% of these residents over age 25 have Bachelor’s degrees, and an additional 40% have Graduate degrees.
Downtown Berkeley has a daytime working population of over 72,000. Students, office workers, downtown residents, shoppers, families and travelers all come downtown to partake of the stores, restaurants and services offered. Downtown Berkeley is bounded on the north by Hearst Ave., on the east by Oxford/Fulton Sts., on the south by Dwight Way, and on the west by MLK Way.
Downtown Berkeley Facts
• Over 1,000,000 square feet of office space • Safe, seven day a week retail environment • Excellent foot traffic • Lively Downtown Arts District including Berkeley Repertory Theater, Aurora Theater and Jazzschool • Wide variety of enterprises including, live theater, movie theaters, museums, over 100 restaurant/dining options, non-profit organizations, professional services, and retail shops selling the gamut of goods including art, antiques, clothing, electronics, furnishings, games, groceries, gifts, hardware, music, and books • Many national and local retailers • Lively, walking environment similar to other college towns like Cambridge, MA and Madison, WI • Great transportation – easy access by car, BART, bus, bicycle and foot
The Shattuck Corridor
Shattuck Avenue is the main shopping street in Downtown Berkeley, and one of the widest streets in the city. Properties on Shattuck enjoy superior window frontage as well as angled street parking. There are two Bart stations that serve Shattuck Avenue; near the corner of Shattuck and Center streets in downtown and also near the major
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intersection of Shattuck and Ashby (on Adeline between Essex and Woolsey). Many AC Transit lines run down Shattuck Ave.
The University of California at Berkeley
The University of California at Berkeley, located adjacent to downtown, is the largest employer in Berkeley, the largest user of office space in downtown Berkeley, and contains a large, mobile, population that uses downtown Berkeley as an extension of the campus. UC Berkeley has a daily on-campus headcount of close to 45,000. This includes 31,800 students, 1,760 faculty, 3,000 academic staff and visitors, and 8,100 of nonacademic staff. Downtown Berkeley is a walking environment, similar to other metropolitan shopping areas like Cambridge, MA and Madison, WI. Recent developments are creating more “mixed use” blocks that allow shoppers to visit many businesses in one trip. New downtown housing enables residents to enjoy easy access to transit and convenient local shopping.
UC Berkeley Long Range Development Plan (LRDP)
The LRDP for the Berkeley Campus for the period 2005 –2020 predicts daily headcount is expected to grow to over 51,000 by 2020. Growth in campus population will trigger new space demands for housing, academic/support space, and parking spaces. The LRDP looks to Downtown Berkeley to supply 800,000 GSF of additional space needed for Academic and Support functions.
UC Berkeley’s upcoming space needs offers enormous potential to enhance the synergy of campus and Downtown Berkeley. Downtown Berkeley will be the primary focus of future university investment in new research, cultural and service functions that require locations near, but not on, the Campus itself. The LRDP hopes that these future investments will invigorate the downtown and create an inviting, exciting “front door” to the UC Berkeley campus. This development may be done through creative partnerships with other public and private sector organizations. An example is the newly proposed hotel, conference center, and museum complex. As part of this project, the University will look to encourage a privately developed and operated conference center.
The University of California at Berkeley is a major generator of economic activity in the city of Berkeley. The scope of development proposed by the LRDP shows this impact will continue.
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Changes Coming to Downtown Berkeley and Recent Developments Downtown is constantly expanding and changing in ways that enhance the office market as well as the retail market for products and services offered by downtown businesses. Some highlights and planned changes include:
• Close to 1,600 new residential units have been added since 2,000 and over 1,000 more units are now under construction or in the permit process. Sixteen projects are in the works to bring new housing to downtown Berkeley. Of these projects: • Six new multi-story, mixed-use buildings are currently under construction that will introduce close to 400 residential units and just under 20,000 sq. ft. of retail and commercial space into Downtown Berkeley. • Three additional multi-story projects have been approved that will add over 190 residential units and over 7,600 sq. ft. of retail and commercial space. • Seven new projects are in the permit process. These mostly 4-and 5- story buildings will create over 410 new residential units and over 63,000- sq. ft. of retail and commercial space.
• The University of California, in conjunction with the Carpenter Company is proposing a 12- story hotel, conference and museum complex in Downtown Berkeley that will create a world-class conference and meeting facility in Downtown Berkeley, and double the area of the Downtown Arts District. The project plan calls for: • A hotel with 175 to 200 beds, and with 10,000 to 20,000 square feet of conference space and underground parking. • A museum complex that includes the world renowned Berkeley Art Museum, the Pacific Film Archive, and the Phoebe Hearst Museum of Anthropology collections. The museum complex could measure as much as 165,000 square feet. • A banking center on the portion of the site owned by Bank of America that would cover around 5,000 square feet.
• The City of Berkeley is requesting proposals to develop a Design Plan for the Downtown Berkeley Bart Plaza and Transit Area. This project was initiated in response to the intensified use of downtown and will plan for transportation
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infrastructure and open space to support the growing density of the downtown area.
• The 1½-mile stretch of University Avenue between Oxford and San Pablo is undergoing dramatic change including the construction of many new multi-story mixed-use buildings and the change of long-term tenants at numerous locations.
• The Oxford Plaza and the David Brower Center have received ZAB approval for the lot on Oxford at Allston. This will be an environmentally conscious mixed-use project with affordable housing, retail, and the Brower Center, a diverse mix of environmental organizations in one home. The Brower Center will have a strong focus on community outreach, fostering public discussion and action, offering education on crucial issues, and interfacing with the university community. Tenants will include the Earth Island Institute, the Center for Eco-Literacy, and the Rainforest Action Network. Initial agreement has been made with the developer. Architectural plans are pending. Project components include: • Housing - 96 units of affordable workforce housing. • David Brower Center - 33,000 sq. ft. of office space for non-profit organizations, 7,400 sq. ft. conference and educational facility providing auditorium, meeting rooms, and gallery to public benefit organizations and the community. This will include a 200- seat auditorium with state-of-the-art media equipment. Also includes a 3,400 sq. ft. restaurant in collaboration with Alice Waters, famed Berkeley Chez Panisse chef. • Oxford Street Retail - 8,700 sq. ft. ground floor retail. Patagonia has been mentioned as a possible tenant. • Residential Parking - On-site above grade parking spaces for use by residents. • Bicycle Parking – For residents and employees.
• A new jazz club, Anna's Jazz Island, opened in the Gaia Building. The club, run by Anna de Leon, former owner of Anna’s Jazz Bistro in Berkeley, will feature food, a full bar, and host local jazz acts nightly. A new performance space also opened in the Gaia Building.
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• Long’s Drug opened in fall 2005 in a 15,000-sq. ft. building at 2300 Shattuck, adding a full service drug store/pharmacy to Downtown.
• Berkeley City College (formerly Vista College) will move to its new, six-story, 160,000-sq. ft. permanent campus at 2050 Center Street in June 2006. The Community College has enrollment of 4,500 students per semester with plans to expand to 10,000 per semester by 2014.
• SNK Development, Inc. was approved for a nine-story, 149 residential unit property at 2055 Center Street, across from the new Vista College/Berkeley City College site and expects to start construction in spring 2006. It will include 10,000-sq. ft. on the ground floor with two full size stages that will be used by Berkeley Rep as dedicated rehearsal space. These performance spaces will be made available for use by community theater groups at least 100 days per year. The ground floor will also include a walkway connecting Center Street with the heart of the theater district on Addison Street. The walkway will offer rotating public exhibition space for artwork. The building will include one parking space for each residential unit and at least another 20 – 30 spaces available to the public as valet parking.
• Freight and Salvage will soon submit a permit application to relocate into the building they already own across from the Berkeley Repertory Theater on Addison St.
Additions to Downtown in the Last Few Years • The Downtown Arts District, on Addison Street between Shattuck and Milvia, has become a nationally recognized model for art-based downtown revitalization. It is home to the Berkeley Repertory Theater, Aurora Theater, Jazzschool, and the restaurant “Downtown”. It features unique sidewalk art and sculptures at both the entrance to the District and the nearby BART station. .
• Restaurant Downtown is an informal but elegant California/Mediterranean seafood brasserie located at the corner of Shattuck Avenue and Addison Street in the Francis Shattuck Building. This 150-seat restaurant marks the entrance to the Downtown Arts District, and features live jazz music in the evening.
• The Francis Shattuck building leased more than 28,000 square feet of renovated office and more than 10,000 square feet of restored retail
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space. Renovations have added a fourth floor and a corner turret to the building and brought the property back to its original grandeur.
• The Berkeley Repertory Theater completed a $17.5 million expansion project in 2001, resulting in the building of The Roda Theatre, a 600-seat theater that complements the existing 400-seat stage, creating a vital and versatile performing arts complex. Berkeley Rep also opened an accompanying theatre school, housed next-door in the Nevo Education Center, which offers classes and activities for both youth and adults.
• The Kress Building, across from the Francis Shattuck, underwent a complete renovation. Additions to this building include a wall of windows on the second floor and an elevator. Half Price Books opened for business in the Kress Building in September 2005. Comic Relief is now open next door, at 2026 Shattuck.
• The Jazzschool relocated to the lower level of the Kress Building. The new facility of 7,500 square feet has classroom area for small and large bands. The entrance along Addison Street adds another strong user to the Arts district.
• The Aurora Theater created an intimate, state-of-the-art 150-seat theater on Addison Street next door to Berkeley Rep. The new theater opened in 2003.
• In nine separate development projects since 1998, over 400 residential units and over 40,000 sq. ft. of retail and commercial space have been created. Developers include Patrick Kennedy, Avi Nevo, the University of California and Affordable Housing Associates (AHA).
• The Hotel Shattuck Plaza, is now a fully renovated 1910 historical landmark hotel with all the modern luxuries of a high quality hotel. A new 10,000 square foot restaurant was added as part of this renovation.
• The Berkeley Public Library completed a $30 million renovation and expansion project, adding a 70,000-sq. ft. addition,
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increasing the library’s shelf capacity by 40%, and adding 95 electronic public access terminals, among other improvements. The new Library is now twice the size of the original 1931 Landmark building.
• Berkeley City Hall underwent a complete overhaul. A new Public Safety Building, at the corner of Addison and Martin Luther King, Jr. was built.
• The Stanley Kaplan Educational Center upgraded and expanded the property at the point of Shattuck Square on Shattuck and Center Street. Their highly successful location at the downtown BART station draws students from around the Bay Area.
• The University of California’s Haas Pavilion underwent reconstruction and now features a Sports Complex that attracts more than 300,000 visitors each year for basketball games and track and field tournaments.
• Berkeley High School underwent a major renovation that included a new administration building, new classrooms, science labs, graphic arts and television studio, and improvements made to many of the athletic playing fields and other buildings on campus.
• San Pablo Avenue at University Avenue, an International Marketplace, is bursting with a collection of restaurants, specialty markets and unique shops you won't find anywhere else in the city.
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Downtown Demographic Information The following chart shows demographic information for the roughly 90,000 residents who use Downtown Berkeley regularly. The majority of these residents live within a 1.5 mile radius of the corner of Shattuck Ave. and Center St.
Population Attribute Reported # % of Total 2004 Population 88,269 Total Age 25+ by Educational Attainment 57,729 Total Bachelor’s Degree 18,469 31.99 Some college through Bachelor’s Degree 28,649 49.63 Graduate Degree 22,701 39.32 Household Income 39,338 Total $75,000 - $100,000 2,034 13.13 > $100,000 11,162 28.37 Housing Values 16,745 Total Home Value $500K+ 10,990 65.63 Class of Worker 49,759 Total White Collar 42,265 84.94 Blue Collar 3,280 6.59 Service and Farm 4,214 8.47 Downtown Berkeley Daytime Population 72,195 Total
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