Post on 14-Jul-2020
EXCLUSIVE
LISTING
AGENTS
2628 El Camino AvenueS A C R A M E N T O , C A L I F O R N I A
KEVIN LARSCHEIDExecutive Vice President+1 916 781 4818 kevin.larscheid@cbre.com Lic. 00816790
SCOTT RUSHFirst Vice President+1 916 781 4802 scott.rush@cbre.com Lic. 01228497
COLIN BROWNSales Assistant+1 916 781 4858 colin.brown@cbre.com Lic. 02032520
2628 EL CAMINO AVENUE | 2 | INVESTMENT SALE
Offering SummaryCBRE, as exclusive agent, is pleased to present the opportunity to acquire the 100% fee simple interest in 2628 El Camino Avenue, Sacramento, Sacramento County, California. This ±17,785 sq. ft., single story multi-tenant office building was built in 1960 and is situated on approximately 2.19 acres. The asset is currently 93.6% leased to 15 tenants, providing an investor with a long history of stable occupancy and cash flow.
This garden-office complex consists of four individual buildings with 18 suites and is located in a neighborhood commercial setting on a major street in Sacramento and is surrounded by well-maintained single family homes and apartments. The property is located near Interstate 80 and major shopping centers, with good visibility and signage on El Camino Avenue, just east of Fulton Avenue and has ample parking around the building.
Four one-story buildings surround a landscaped breezeway, which includes two common area restrooms. Most of the suites also have their own in-suite restroom. There is one gas meter and one electric meter serving the entire four building complex. Most of the existing tenants are long term, including two dental offices, three dental labs, two hair salons, a chiropractor, an aesthetician, an insurance agent, two accountants, and three social service offices. Leases are all on a full service basis except some tenants provide their own janitorial service.
According to Costar, 2628 El Camino Avenue is leased at below-market rental rates and is priced well below replacement cost, providing an investor a great opportunity for increasing cash flow in the near future! Additionally, the building coverage ratio is only 16.5% offering a buyer with a potential value add opportunity with new construction.
T h e O f f e r i n g
2628 EL CAMINO AVENUE | 3 | INVESTMENT SALE
Property Details
BUILDING ADDRESS 2628 El Camino Avenue Sacramento, CA 95841
ASSESSOR’S PARCEL NO. 279-0011-007
COUNTY Sacramento County, California
PROPERTY TYPE General Office Building
BUILDING GROSS SQ. FT. ±17,785* SF
RENTABLE SQ. FT. ±17,785* RSF
LAND AREA ±2.19 Acres
PERCENT LEASED 93.6%
NUMBER OF TENANTS 15
YEAR BUILT 1960
NUMBER OF BUILDINGS Four
NUMBER OF STORIES One
ZONING BP, Sacramento
USE General Office, including medicas uses
* Approximate Sq.Ft. - according to the property Report at RealQuest.com.
Investment Highlights
LOCATIONLocated near Interstate Highway 80 and three major shopping center and is only 15 minutes from Downtown Sacramento and five minutes from Haggin Oaks Golf Course.
CASH FLOWThe property features 15 tenants; with most tenants on a month-to-month basis. However, five tenants are on leases that run at least through 2020. The majority of the month-to-month tenants have been long-term occupants.
BELOW REPLACEMENT COSTConsidering the asking price of $2,160,000 ($121.45 PSF), this offering is priced well below replacement cost. The building coverage ratio is only 16.5% allowing for possible building expansion.
DIVERSE GROUP OF TENANTSTenants at the property include dentists, dental labs, accountants, hair stylists, chiropractors, social services, and an insurance business.
GROWING POPULATIONSacramento County’s population is currently ±1,513,201 people and is projected to increase to nearly ±1,584,703 residents by 2022. Sacramento County has been one of the fastest growing re-gions in California.
TOTAL NUMBER OF HOUSEHOLDSIn 2017, within a 5-mile radius of the Property, the total number of households was estimated to be 138,301 and is projected to be 143,565 in 2022. The annual household growth rate between the year of 2010 - 2017 is 0.59%.
T h e O f f e r i n g
2628 EL CAMINO AVENUE | 4 | INVESTMENT SALE
BUILDING SYSTEMS
UTILITY PROVIDERS
FLOOD AND EARTHQUAKE
CONSTRUCTION Wood frame
HVAC 14 split units (rooftop)
ELECTRICITY SMUD
GAS PG&E
SEWER Sacramento County
WATER Sacramento Suburban Water District
TRASH Atlas Disposal
FLOOD ZONE Zone X – The property is not located in a flood zone.
EARTHQUAKE Not in an earthquake fault zone.
Property Details (continued)
T h e O f f e r i n g
2628 EL CAMINO AVENUE | 5 | INVESTMENT SALE
Property Photos
T h e O f f e r i n g
2628 EL CAMINO AVENUE | 6 | INVESTMENT SALE
PRICING $2,160,000
PRICE PER GROSS SQ. FT. $121.45
NET OPERATING INCOME $10,648
CAP RATE 6.0 %
RENTABLE SQ. FT. ±17,785* RSF
GROSS BUILDING SQ. FT. ±17,785* SF
LAND AREA ±2.19 Acres
CURRENT OCCUPANCY 93.6% Leased
YEAR BUILT 1960
ASSESSOR’S PARCEL NO. 279-001-007
ZONING BP, Sacramento
USE General Office including medical uses
LEASE TYPES FSG
Financial Summary
F i n a n c i a l O v e r v i e w
income & expense summary
SCHEDULED GROSS INCOME $238,500
Adjusted Gross Income $238,500 Less Vacancy (Actual) $0
EFFECTIVE GROSS INCOME $238,500
OPERATING EXPENSES Taxes $26,449 Direct Levies $1,248 Insurance $4,700 Utilities $31,300 Water/Sewer/Garbage $9,000 Janitorial $10,000 Management Fee $7,155 Repairs & Maintenance $10,000 Landscaping $8,000 TOTAL OPERATING EXPENSES ($107,852)
NET OPERATING INCOME1 $130,648
1 Assumptions: Taxes are based on sale price. Management fee is based on 3% of EGI. All other expenses are actual 2017 provided by Seller.
INCOME - ACTUAL
* Approximate Sq.Ft. - according to the property Report at RealQuest.com.
2628 EL CAMINO AVENUE | 7 | INVESTMENT SALE
F i n a n c i a l O v e r v i e w
Rent Roll
Lease Term Base RentSuite Tenant Sq. Ft.% of Total
Bldg.Lease Term
Begins EndsRent / Mo. Annual PSF /Yr. PSF /Mo.
Increas-es
Lease Type
Business Type
A1 Genesis Dental 1,180 6.6% 1998 MTM $1,400 $16,800 $14.24 $1.19 FSG Dental Lab
A3 Dental Masters 315 1.8% 2012 MTM $350 $4,200 $13.33 $1.11 FSG Dental Lab
A5 American Dental 625 3.5% 2006 MTM $850 $10,200 $16.32 $1.36 FSG Dental Lab
A6 MU’EED, Inc. 1,070 5.9% 2014 MTM $1,225 $14,700 $13.74 $1.14 FSG Social Services
A7 Valerie Aiken 220 1.2% 2016 MTM $300 $3,600 $16.36 $1.36 FSG Tax Accounting
A8 Sandra Riley 600 4.4% 2017 2020 $800 $9,600 $16.00 $1.33 FSG Esthetician
A14 John Taylor 655 3.7% 1991 MTM $800 $9,600 $14.66 $1.22 FSGFarmers Insurance
B1 Vacant 1,960 10.9% 2018 2019 $2,000 $24,000 $12.24 $1.02 FSGRent Guarantee
B2 No Stress Services 1,130 6.3% 2017 2020 $1,000 $12,000 $10.62 $0.88 FSG Accounting
B6 Badie et al 1,230 6.8% 2006 MTM $1,800 $21,600 $17.56 $1.46 FSG Hair Salon
B7 Miguel Cortez 800 4.4% 2013 MTM $1,000 $12,000 $15.00 $1.25 FSG Dentist
C1 Gurwinder Bath 1,115 6.2% 2017 2020 $1,200 $14,400 $12.91 $1.08 FSG Chiropractor
C2 Vacant 880 4.9% - - - - - - - Unimproved
C3 Owner 265 1.5% - - - - - - -On-Site Manager
C10 Pereira/Patrick 1,740 9.7% 2017 2027 $2,500 $30,000 $17.24 $1.44$3,000 in 2022
FSG Dentist
D1 Friend’s for Survival 800 4.4% 1995 MTM $900 $10,800 $13.50 $1.13 FSG Social Services
D5 Phillips et vir 600 3.3% 2008 2018 $650 $7,800 $13.00 $1.08 FSG Hair Salon
D18 Widowed Persons Association 2,600 14.5% 1998 2023 $3,100 $37,200 $14.31 $1.19 FSG Social Services
Total Leased Square footage 16,640 93.6% Total Leased Income $238,500
Total Rentable Square footage 17,785 100%
2628 EL CAMINO AVENUE | 8 | INVESTMENT SALE
M a r k e t O v e r v i e w
Sacramento, California Overview
Sacramento County has been one of the fastest growing regions in California for the last 25 years.
According to the State Department of Finance, Sacramento County population is currently projected to be 1,513,201 people and is projected to increase to nearly 1,584,703 residents by 2022.
With a qualified workforce and strong business sector, Sacramento County has a 7.3% unemployment rate which is one of the lowest unemployment rates among California cities.
Driving the employment rate is a 10% increase in job growth in Sacramento over the past five years, to an approximate of 60,000 jobs*. In the first quarter in 2017 the labor market job growth is well above the California and U.S. averages.
Additionally, Sacramento reports that their business climate is noted for being among the most affordable cities to do business in the state with a supportive climate for entrepreneurs.
* www.labormarketinfo.edd.ca.gov
Sacramento State Capitol
2628 EL CAMINO AVENUE | 9 | INVESTMENT SALE
9,061
91,508
218,328
1-MILE 3-MILE 5-MILE
M a r k e t O v e r v i e w
592,462EMPLOYEES**
1,513,2012017 TOTAL POPULATION**
15.6 millionANNUAL REGIONAL VISITORS**
45,604BUSINESSES**
Market Demographic Quick Facts
SACRAMENTO COUNTY ANNUAL SALARY BREAKDOWN***Over $100K. 27% $50K-$75K. 18% $25K-$35K. 9.2%$75K-$100K. 13.3% $35K-$50K. 12.7% Under $25K. 19.8%
LARGEST NEARBY EMPLOYMENT INDUSTRIES IN SACRAMENTO*
Based on data from 2017 / Costar.
SOURCES:
*CBRE Fast Maps, 2017**CBRE Research***Costar.com
TOTAL POPULATION WITHIN VARYING RADIUS***
Healthcare/Social Asst.,
14.7%
Retail Trade, 13.0%
Professional/Scientific/Tech. Svc.,
8.0%
Educational Services,
7.5%
Accomodation/Food Services,
7.2%
Finance/Insurance,
7.0%
Manufacturing, 6.6%
7.2%
2 0 , 0 2 7
1 4 2 , 6 3 0
3 7 1 , 5 5 5
541,711TOTAL HOUSING UNITS**
2628 EL CAMINO AVENUE | 10 | INVESTMENT SALE
L o c a t i o n M a p s
2628
2628
© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. All marks displayed on this document are the property of their respective owners. PN 255008
2628 EL CAMINO AVENUE | 11 | INVESTMENT SALE
P a r c e l M a p V i e w
2628
2628 EL CAMINO AVENUE | 12 | INVESTMENT SALE
2628
EL CAMINO AVE
A e r i a l V i e w
FULT
ON
AVE
EXCLUSIVE
LISTING
AGENTS
KEVIN LARSCHEIDExecutive Vice President+1 916 781 4818 kevin.larscheid@cbre.com Lic. 00816790
SCOTT RUSHFirst Vice President+1 916 781 4802 scott.rush@cbre.com Lic. 01228497
COLIN BROWNSales Assistant+1 916 781 4858 colin.brown@cbre.com Lic. 02032520
EL CAMINO AVE
FULT
ON
AVE
ARDEN WAY
ETH
AN
WAY
County of Sacramento