FOR SALE INVESTOR OR OWNER/USER OPPORTUNITY€¦ · investor or owner/user opportunity. The...

FOR SALE

www.cbre.us/kevin.larscheid

$1,100,000 (±$70.62 psf)

FOR SALEINVESTOR OR OWNER/USER OPPORTUNITY11899 EDGEWOOD RD., AUBURN, CA 95603

FOR SALE11899 EDGEWOOD ROADAUBURN, CA 95603


EXECUTIVE SUMMARYCBRE, Inc. is pleased to present the opportunity to acquire the fee simple interest in 11899 Edgewood Road, Auburn, CA. 11899 Edgewood is a well located ±15,576 rentable square foot, multi-tenant office building, situated on its own ±0.72 acre parcel. This is an excellent value add investor or owner/user opportunity. The two-story asset is 63.5% leased to twelve tenants providing an investor with value add upside or can be occupied by an owner/user. The property has several tenant-ready suites available, which are currently offered for lease at $1.10 psf, per month, modified gross.

For an owner/user, the property offers an owner additional income with tenants in place, as well as the opportunity to own their own building and have ability for growth.

The property offers investors an excellent value at ±$70 per foot, value add with a combination of stability and income growth through lease up.

The property has mature landscaping and ample parking provide employees and visitors alike with ease of access together with an inviting appearance. 11899 Edgewood enjoys excellent access to the local area and the greater region via Highway 49 which is a major thoroughfare and is less than 3 miles from Interstate 80. The Property’s Highway 49 at Edgewood Road location offers convenient access to the vast local amenities including restaurants, fast food, banking, shopping and personal services, as well as a sizeable demographic of residences.

Kash Career College and Advanced Chiropractic are the largest tenants of the building; each enjoying 1,600 sq. ft. suites. Edward Jones and Advanced Chiropractic are the longest standing tenants with occupancy over 20 years.

The City of Auburn is located in Placer County, about 15 miles northeast of downtown Sacramento. Auburn is a well-established submarket located in Placer County along the I-80 corridor with proximity to the larger Roseville and Rocklin submarkets, of which Auburn is a part.

The Auburn office market consists just over 2 million square feet of inventory that provides business owners the ability to work in the community they reside in. Most of Auburn’s growth is due to the number of existing tenants who choose to stay in the Auburn area and expand their business locally.

CONTACT USKEVIN LARSCHEIDExecutive Vice President+1 916 781 [email protected]. 00816790

SHANA LENNONSenior Associate+1 916 781 [email protected]. 01446203

SCOTT RUSH First Vice President+1 916 781 [email protected] Lic. 01228497



INVESTMENT HIGHLIGHTS

EXCELLENT INVESTOR OR OWNER/USER OPPORTUNITY WITH IN-PLACE INCOME

RENT ROLL AND INCOME AND EXPENSES DETAILS ARE AVAILABLE UPON REQUEST.

+ Asking price $1,100,000 (±$70.62 psf)

+ Priced well below replacement cost at $70.62 per square foot!

+ Value add opportunity through lease up

+ Varied sized suites offer leasing flexibility for the market

+ Desirable Location: The Property benefits from being located on one of the busiest highways in Northern California, Highway 49, also known as Grass Valley Highway.

+ High traffic area: ±46,500 cars ADT 2017 on an average day at the collection street of Grass Valley Hwy and Nevada St (the next major street from Edgewood Rd).

+ Regional Access: The location has great access and is less than 3 miles from Interstate 80 via Hwy 49 and approximately 1.5 miles from Bell Road.

+ Ample Parking at 4/1000

+ 63.5% leased

+ Access to diversity of executive and employee housing

INVESTMENT & PROPERTY DETAILS

OFFERING PRICE $1,100,000 ($70.62 PSF)

STABILIZED CAP RATE 7.71%

STABILIZED NOI $90,168

ADDRESS 11899 Edgewood RoadAuburn, CA 95603

COUNTY Placer County

PROPERTY TYPE General Office

YEAR BUILT 1979

TOTAL BUILDING SIZE ±15,576 RSF

NUMBER OF STORIES Two

% LEASED 63.5%

LEASE TYPE MG

PARKING 4/1000

APN 038-113-053

TOTAL LAND ±0.72 Acres

ZONING C2-Dc (General Commercial)

USE General Office



GENERAL INFORMATION

11899 Edgewood Road was constructed in 1979 and is situated on its own rectangular shaped ±0.72 acre parcel, according to the Placer County Assessor’s office. Primary entry to the property is via Edgewood Road, but can also be accessed via Highway 49 utilizing the driveway of 1055 Grass Valley Highway.

The neighborhood consists mostly of commercial uses including office, some medical, and retail uses located along the main thoroughfares, as well as residential uses in the side streets and extended neighborhoods. Commercial thoroughfares within the area include Highway 49 and Bell Road.

ZONING DETAIL:

According to Placer County, the property is currently located in General Commercial zone C2-Dc. Uses permitted within this district include retail, personal service, entertainment, office and related commercial uses.

UTILITY PROVIDERS

Electricity PG&E

Gas PG&E

Sewer City of Auburn

Water PCWA

Trash Recology

FLOOD & EARTHQUAKE

According to a First American Natural Hazard Disclosure Report, the property is not within a Flood Hazard Area, an Earthquake Fault Zone or Wildland Area/High Fire Hazard area.


MARKET OVERVIEW

AUBURN OFFICE MARKET

Auburn has 168 existing office buildings (not owner occupied); with a total square footage of 1,321,880 SF. The vacancy rate has stabilized since mid-2016, with today’s vacancy rate of 4.6%, down from its 5-year average of 8.2% (Costar). The vacancy rate is less than the Sacramento market’s vacancy rate of 12.8% (CBRE Q1-Market View). The Auburn market is a stabilized market with competitive rents that attract a diverse sector of businesses.

ROSEVILLE MARKET OVERVIEW

The Roseville/Rocklin office submarket has a total inventory of approximately 7.2 million sq. ft. and is one of the most desirable areas for office users in the market. The submarket finished 2017 with ±102,239 sq. ft. of positive net absorption. The Q1 2018 vacancy rate for the Roseville/ Rocklin office submarket is 11.1%, less than the greater Sacramento Suburban market of 12.8% vacancy.

SACRAMENTO MARKET OVERVIEWThe Sacramento office market consists of over 52.1 million sq. ft. and has seen steady occupancy and rent growth since the beginning of 2012. The market closed 2017 with approximately 45,796 million sq. ft. of positive net absorption annually and enjoys a vacancy rate of 12.8%. This decrease marked the eight consecutive quarter in which the vacancy rate dropped.

PLACER COUNTY OVERVIEWBetween 1990 and 2015 (estimated) Placer County population grew by an astounding 117 percent – due in part to in-state migration from the Bay Area and Los Angeles regions. Broken down, during the period of 2000-2015 the increase was 51% and in the last five years of that time-frame (2010-2015) Placer County has grown eight percent. As part of Placer County, Roseville/Rocklin market has surpassed every other submarket in the Sacramento region. Between 1994 and 2004, Placer County job opportunities increased to just over 134,000, a growth of over 88%. This is almost three times higher than the Sacramento region, 10 times higher than the Bay Area and over four and a half times higher than California’s rate over the same time period. Placer County is projecting an increase of total employees in 2020 to be 165,233 and jumping to 209,797 by 2035. (Source Placer County Economic & Demographic Profile, SACOG 2020 and 2035 MTP/SCS Land Use Forecast).

Placer County recently announced a more defined vision (Aug. 2017) to revise its 20-year plan for the county’s 200-acre Historic DeWitt Center, originally constructed in 1944, in North Auburn which potentially could include low income housing, a new three-story Health and Human Services Headquarters, and a 30,000 sq. ft. community center surrounded by expansive landscaped areas.

Placer County is located just 80 miles northeast of San Francisco, California. The county’s strong growth and development can, in large part, be attributed to the relocation of Hewlett-Packard from the Bay Area to Roseville in the beginning of the 1980s. The continued interest shown by new, expanding, and relocating companies to Placer County developed into a demand for substantial expansion of the available commercial and residential space. Today’s Placer County represents a rapidly growing and prosperous community characterized by a healthy and mature economy, attractive business environment, and residents who benefit from a developed educational, safety, and healthcare infrastructure, in addition to abundant recreational opportunities.



MORE ABOUT AUBURN

HISTORY

Auburn is the county seat of Placer County, California. It is known for its California Gold Rush history and is registered as a California Historical Landmark. The city is bursting with energy, optimism and spirit for all ages to enjoy. Visitors are attracted to the charming Downtown and Old Town districts as well as to the multitude of events that come to the City of Auburn each year – from rodeos to the antique fair to parade of lights – the city of Auburn offers activities and events for everybody to enjoy.

The new Historic Placer County Courthouseconstructed in part in 1894 and was dedicated in1898. The courthouse is one of Placer County’s active Superior Court locations. The Placer County Museum occupies the first floor of Auburn’s historic courthouse.

ECONOMY

Auburn has a stable economic environment withits population steadily growing each year. Theunemployment rate in Auburn is 4.8%, which is lower the U.S. average of 5.2%. Compared to the rest of the country, the cost of living is also 39.3% higher than the U.S. average. The city continues to

experience positive revenue growth as well as a flourishing economy.

HIGHER EDUCATION

Sierra College: Sierra College is a public communitycollege located in Rocklin, California and is 10 miles from the center of Auburn. The campus extends over 300 acres and has almost 19,000 students enrolled. Extended campuses are located in Auburn and Grass Valley.

William Jessup University: William Jessup Universityis a private liberal arts university located in Rocklin,California and is 13 miles from the center of Auburn. The campus has a total enrollment of just over 1,100 students and offers both undergraduate and graduate programs.

AIRPORTS

Auburn Municipal Airport: Auburn Municipal Airportis a public airport located three miles north of Auburn, serving Placer County, CA and its surrounding area. The airport is mostly used for general aviation and is owned by the City of Auburn. It totals approximately 285 acres with 80 acres within the industrial park complex.

Sacramento International Airport: SacramentoInternational Airport is a public airport centrallylocated in Sacramento, a city in Sacramento County,CA and is only 40 miles away from Auburn, CA. It isowned by the Count of Sacramento and is run by the Sacramento County Airport System. Over 10 million people use this airport a year, making it the seventh busiest airport in California.

TOURISM

Old Town Auburn: Old Town Auburn is a quainttown with a lot of character. Tourists can found outabout local history, walk around the town, and enjoythe variety of shops. There are plenty of things to doin the town, including boutique shops, wine tastings,museums and concerts.

Auburn State Recreation Area: Auburn StateRecreation Area is a state park unit of California. Itruns for 40 miles along the North and Middle Forks of the American River. Once teeming with gold mining activity, the area now offers a wide variety of outdoor recreational opportunities. Major recreational uses include trail running, hiking, swimming, boating, fishing and camping.



SITE

PARCEL MAP

APN: 038-113-054



Major Employers - Placer County

Sutter Health 5,435

Kaiser Permanente 5,361

Placer County 2,700

Squaw Valley / Alpine Meadows 2,500

Hewlett-Packard 2,100

Sierra College 1,940

Thunder Valley Casino Resort 1,915

Safeway, Inc. 1,254

Pride Industries 1,155

SolarCity Corp 1,120

Union Pacific Railroad 1,091

Source: 2016 Book of Lists, Sacramento Business Journal

INCOME $80,976 MEDIAN HH INCOME

$40,953 PER CAPITA INCOME

EMPLOYMENT 157,894 EMPLOYEES

14,119 BUSINESSES

4.7% RESIDENTIAL UNEMPLOYMENT RATE

DEMOGRAPHICS PLACER COUNTY

Property Demographics 1 Mi 3 Mi 5 Mi

Projected Population 2023 8,292 32,308 47,141

Total Population 2018 7,869 30,634 44,779

No. Households 2018 3,126 12,558 18,069

Avg. HH Income $82,927 $80,385 $93,223

Source: Costar

DEMOGRAPHICS PROPERTY 1,3 & 5 MILE

PLACER COUNTY POPULATION BY YEAR

2022

2017

2010

300,000 320,000 340,000 360,000 380,000 400,000 420,000

407,755

381,674

348,432


AERIAL


AERIALEDGEW

OOD ROAD


AERIAL WITH AMENITIES

Shopping Center

StarbucksSutter Auburn Faith Hospital

To Auburn Airport

BELL ROAD

Shopping Center

®STARBUCKS

SITE

REGAL CINEMAS

BEST BUYMEL’S DINER

To I-80

LUTHER ROAD

NEVADA STEDGEWOOD ROAD



AREA & REGION MAPS

SITESITE



LOCATION MAP

CONTACT US

KEVIN LARSCHEIDExecutive Vice President+1 916 781 [email protected]. 00816790

SHANA LENNONSenior Associate+1 916 781 [email protected]. 01446203

SCOTT RUSHFirst Vice President+1 916 781 [email protected] Lic. 01228497

© 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.

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FOR SALE INVESTOR OR OWNER/USER OPPORTUNITY€¦ · investor or owner/user opportunity. The...

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