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 GORDON COMMERCIAL REAL ESTATE SERVICES 2091 Rose Street Berkeley, CA 94709 ~ (510) 704 -1800 phone (510) 704 -1830 fax www.gordoncommercial.com Page 2 of 19 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 GORDON COMMERCIAL REAL ESTATE SERVICES 2091 Rose Street Berkeley, CA 94709 ~ (510) 704 -1800 phone (510) 704 -1830 fax www.gordoncommercial.com Page 3 of 19 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 GORDON COMMERCIAL REAL ESTATE SERVICES 2091 Rose Street Berkeley, CA 94709 ~ (510) 704 -1800 phone (510) 704 -1830 fax www.gordoncommercial.com Page 4 of 19 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 GORDON COMMERCIAL REAL ESTATE SERVICES 2091 Rose Street Berkeley, CA 94709 ~ (510) 704 -1800 phone (510) 704 -1830 fax www.gordoncommercial.com Page 5 of 19 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 GORDON COMMERCIAL REAL ESTATE SERVICES 2091 Rose Street Berkeley, CA 94709 ~ (510) 704 -1800 phone (510) 704 -1830 fax www.gordoncommercial.com Page 6 of 19 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. GORDON COMMERCIAL REAL ESTATE SERVICES 2091 Rose Street Berkeley, CA 94709 ~ (510) 704 -1800 phone (510) 704 -1830 fax www.gordoncommercial.com Page 7 of 19 Aerial View Street Map GORDON COMMERCIAL REAL ESTATE SERVICES 2091 Rose Street Berkeley, CA 94709 ~ (510) 704 -1800 phone (510) 704 -1830 fax www.gordoncommercial.com Page 8 of 19 Plot Map GORDON COMMERCIAL REAL ESTATE SERVICES 2091 Rose Street Berkeley, CA 94709 ~ (510) 704 -1800 phone (510) 704 -1830 fax www.gordoncommercial.com Page 9 of 19 Floor Plan – First Floor GORDON COMMERCIAL REAL ESTATE SERVICES 2091 Rose Street Berkeley, CA 94709 ~ (510) 704 -1800 phone (510) 704 -1830 fax www.gordoncommercial.com Page 10 of 19 Floor Plan – Second Floor GORDON COMMERCIAL REAL ESTATE SERVICES 2091 Rose Street Berkeley, CA 94709 ~ (510) 704 -1800 phone (510) 704 -1830 fax www.gordoncommercial.com Page 11 of 19 DOWNTOWN, UC BERKELEY AND THE SHATTUCK CORRIDOR Downtown Berkeley Berkeley is densely populated with a highly educated, high-income population.