Medical Office - Downtown San Jose

Medical Office - Downtown San Jose560 E. St John Street, San Jose, CA 95112

OFFERING MEMORANDUM

E X C L U S I V E LY L I S T E D B Y

Carlos Azucena

First Vice President Investments

Tel: (408) 391-1746

Fax: (408) 391-1710

[email protected]

License: CA 01738155

Joshua Johnson

Vice President Investments

Tel: (650) 391-1784

Fax: (650) 391-1710

[email protected]


N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

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The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of

interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with

respect to the income or expenses for the subject property, the future projected financial performance of the

property, the size and square footage of the property and improvements, the presence or absence of contaminating

substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the

improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or

intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure

has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding

these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the

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PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

560 E. St John Street

San Jose, CA 95112

ACTIVITY ID ZAB0010210

EXECUTIVE SUMMARY

560 E. ST JOHN STREET

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LISTING SUMMARY

Price $1,050,000

Gross Leasable Area 1,240 SF

Property Type Medical Office

Year Built 1912

Lot Size 4,600 SF

Type of Ownership Fee Simple

Assessor’s Parcel Number 467-16-019

Zoning Designation CO, Commercial Office

General Plan Land Use Residential Neighborhood

Urban Village Land Use Residential Neighborhood

BUILDING SUMMARY

Number of Floors One Plus Partial Basement

Exam Rooms Two

Private Offices Three

Restrooms Two

Records Storage One Room Plus Basement

Parking Spaces Six

Parking Ratio 4.83 Per 1,000 SF

INVESTMENT OVERVIEW


PROPERTY HIGHLIGHTS

Marcus & Millichap is pleased to exclusively market for sale 560 E. St John Street, a single-tenant medical office building located in downtown San Jose. The

building measures approximately 1,240 gross square feet (per owner) and is situated on a 4,600 square foot site on St. John Street between 12th Street and 13th

Street. Currently, the property is configured with a reception area, three private offices, two exam rooms, a lab, break room, medical records storage area, and

two restrooms. The building also has a basement (not included in the GBA) that is used for records storage. There are six on-site parking spaces at the rear of the

site and a handicap-accessible ramp. The owner recently painted the building and has installed a new water heater, furnace, and air conditioning unit during the

past few years.

560 East St. John Street is located near a clustering of medical and dental facilities in downtown San Jose. It is less than one-half mile from the Valley Health

Center Downtown outpatient clinic operated by Santa Clara Valley Medical Center and the non-profit Gardner Downtown Health Center. The property benefits

from its proximity to US Highway 101, Interstate 280, and State Highway 87. In addition to being easily accessible from these highways, the building is one block

from Santa Clara Street and is near bus stops for Santa Clara VTA service.

Downtown San Jose is currently undergoing a major development boom and the property is well-positioned for a tenant or owner-occupant to take advantage of

the growing population nearby. More than 13,650 residential units have either been recently completed or are in the planning stages in the downtown area.

Approximately 6.6 million square feet of new office space has been proposed in projects by Jay Paul, TMG Partners, Acquity Realty, and The Sobrato

Organization. Additionally, Google recently submitted plans to develop a major transit village on the west side of downtown San Jose. The proposal includes up

to 7.3 million square feet of office space, 5,900 residential units, 500,000 square feet of retail space, 300 hotel rooms, 800 limited-term corporate residences, and

a 100,000 square foot event center. Finally, the property is only one-half mile from San Jose State University, which has an undergraduate enrollment of more

than 27,000 students.

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▪ Single-Tenant Medical Office Building Ideal for Owner-Occupant

▪ Excellent Location in Downtown San Jose; Blocks from San Jose State University

▪ Six On-Site Parking Spaces

▪ Building Has Been Well Maintained by Seller and is in Good Condition

▪ Easy Access from US Highway 101, Interstate 280, and State Highway 87

▪ Near Two Major Outpatient Clinics and Several Medical/Dental Properties

▪ Located in the East Santa Clara Street Urban Village Plan Area

▪ Major Development Projects in Downtown San Jose Will Increase the Residential

Population and Daytime Employee Count

LOCAL MAP


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560 E. ST JOHN ST


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AERIAL


San Jose State

University

City Hall

Downtown

San Jose

BUILDING LAYOUT


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Drawing Not to Scale


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PROPERTY PHOTOS


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RESIDENTIAL DEVELOPMENT MAP


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RESIDENTIAL DEVELOPMENT PROJECTS


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Project Name Location Units Status Project Name Location Units Status

Roosevelt Park Apartments 21 N. 21st Stret 80 Approved Museum Place Residential 180 Park Avenue 306 Approved

Marquis 817 N. 10th Street 166 Completed - 2015 The Graduate 300 S. Second Street 260 Under Construction

Hanover Cannery Park 415 E. Taylor Street 403 Completed - 2018 Gateway Tower 455 S. First Street 300 Approved

Mio Japantown 688 N. Seventh Street 103 Completed - 2015 Sparq Apartments 598 S. First Street 105 Completed - 2020

Japantown Senior Apartments* 685 N. Sixth Street 75 Completed - 2015 The Pierce 60 Pierce Avenue 232 Completed - 2016

Japantown Corporation Yard 620 N. Sixth Street 520 Approved Aura 180 Balbach Street 101 Completed - 2019

Seventh & Empire 535 N. Seventh Street 97 Approved Delmas Multi-Family 363 Delmas Avenue 120 Under Construction

Sparta 525 E. Santa Clara Street 86 Under Construction Park Delmas 201 Delmas Avenue 123 Approved

Sixth Street Multi-Family 73 N. Sixth Street 197 Approved Diridon Station Residential 402 W. Santa Clara Street 325 Approved

27 North 27 N. Sixth Street 119 Completed - 2016 Montgomery 7 565 Lorraine Street 54 Approved

MIRO 167 E. Santa Clara Street 630 Under Construction Vespaio at Diridon 138 Stockton Avenue 164 Under Construction

Donner Lofts* 158 E. Saint John Street 101 Completed - 2016 715 West Julian 715 W. Julian Street 249 Under Construction

Villas on the Park 278 N. Second Street 84 Completed - 2020 Modera The Alameda 787 The Alameda 168 Completed - 2018

Park View Towers 254 N. First Street 220 Approved Avalon Morrison Park 899 Morrison Park Drive 250 Completed - 2014

The James Apartments 98 N. First Street 195 Completed - 2019 Laurel Grove Apartments 777 Park Avenue 182 Under Construction

StarCity 199 Bassett Street 800 Approved West San Carlos Urban Village 270 Sunol Street 149 Approved

North San Pedro Studios* 201 Bassett Street 135 Under Construction McEvoy Affordable Housing 699 W. San Carlos Street 365 Approved

San Pedro Square 195 W. Julian Street 381 Under Construction 750 West San Carlos 750 W. San Carlos Street 56 Approved

San Pedro Tower 3 201 W. Julian Street 313 Under Construction 808 West 808 W. San Carlos Street 315 Completed - 2018

Centerra 77 N. Almaden Boulevard 347 Completed - 2015 Silver - Block A 860 W. San Carlos Street 263 Approved

Silvery Towers 188 W. Saint James Street 643 Under Construction Silver - Block C 365 Sunol Street 268 Under Construction

Modera by Millcreek 45 N. San Pedro Street 201 Under Construction Silver - Block B 345 Sunol Street 269 Under Construction

One South Market 1 S. Market Street 312 Completed - 2015 425 Auzerais* 425 Auzerais Avenue 130 Approved

Firestone 477 S. Market Street 130 Approved The Standard 515 Lincoln Avenue 190 Completed - 2017

27 West 27 S. First Street 374 Approved Mosaic 500 Race Street 388 Completed - 2012

Garden Gate Tower 600 S. First Street 285 Approved Meridian at Midtown 1432 W. San Carlos Street 218 Completed - 2015

Post & San Pedro 171 Post Street 228 Approved Buena Vista Midtown* 1535 W. San Carlos Street 95 Completed - 2015

Greyhound Station Residential 70 S. Almaden Avenue 781 Approved

* Affordable Housing Property

REGIONAL OVERVIEW


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Known to the world as Silicon Valley, the San Jose metro is located at the

southern end of the San Francisco Bay and encompasses Santa Clara and San

Benito Counites. A large portion of the area’s 1,315 square miles is

unincorporated ranch and farmland.

The metro contains roughly 2 million inhabitants and more than half of the

region’s residents reside in the City of San Jose. It is the metro’s largest city,

with more than 1 million residents, followed by Sunnyvale and Santa Clara.

Venture capital funds received in the 1990s helped to turn the area into the

world’s most prominent technology hub, a distinction that remains today.

The San Jose employment base contains more than 1.1 million workers, ranking

the metro as one of the 30 largest job markets in the nation. There are 18

Fortune 500 companies headquartered in the San Jose metro, including Cisco

Systems, Intel, Apple, eBay and Alphabet. The area’s many institutions of higher

learning, including Stanford, San Jose State, and Santa Clara University, support

these companies by graduating thousands of engineering and computer science

students each year.

The metro is expected to add approximately 107,300 people through 2024 and

during the time more than 41,000 households will be formed. High home prices

contribute to a home ownership rate below the national rate of 57 percent.

Roughly 48 percent of residents age 25 and older hold a bachelor’s degree,

including 22 percent who have also obtained a graduate or professional degree.

The San Jose metro has an enviable combination of major universities that

produce a highly-educated workforce, cutting-edge firms and exceptional

affluence. Residents can visit a variety of museums, including the San Jose

Museum of Art and the Tech Museum of Innovation. Santa Clara County is home

to performing arts companies and hosts the San Jose Jazz Festival. The San

Francisco 49ers play their home games at Levi’s Stadium in Santa Clara and the

San Jose Sharks hockey team plays at the SAP center in San Jose. Other sports

venues include Excite Ballpark and Stevens Stadium. The metro is close to San

Francisco and some of the world’s finest wine-producing regions, notably the

Napa, Sonoma, and Alexander valleys.

AREA DEMOGRAPHICS


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Source: © 2019 Experian

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Population 49,878 291,052 677,541

▪ 2018 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2018 Estimate 84,691 330,814 734,852

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Households 18,041 93,259 218,834

▪ 2018 Estimate


Average (Mean) Household Size 2.54 3.04 3.02

▪ 2010 Census


▪ 2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2018 Estimate

$200,000 or More 10.79% 10.76% 13.28%

$150,000 - $199,999 8.63% 9.90% 11.55%

$100,000 - $149,000 15.59% 17.23% 19.44%

$75,000 - $99,999 9.93% 11.18% 11.01%

$50,000 - $74,999 12.27% 14.15% 13.60%

$35,000 - $49,999 10.66% 10.16% 9.33%

$25,000 - $34,999 7.43% 7.20% 6.48%

$15,000 - $24,999 10.01% 8.63% 6.96%

Under $15,000 10.33% 8.93% 8.38%

Average Household Income $106,977 $108,881 $122,984

Median Household Income $63,535 $73,194 $86,687

Per Capita Income $39,420 $34,513 $39,251

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2018 Estimate Total Population 48,420 283,401 663,924

Under 20 21.42% 24.90% 24.75%

20 to 34 Years 37.52% 28.75% 26.00%

35 to 39 Years 7.27% 7.99% 7.74%

40 to 49 Years 11.90% 13.34% 13.61%

50 to 64 Years 13.69% 15.63% 16.94%

Age 65+ 8.20% 9.40% 10.97%

Median Age 30.40 33.01 34.56

▪ Population 25+ by Education

2018 Estimate Population Age 25+

31,280 188,585 449,319

Elementary (0-8) 12.08% 11.96% 9.18%

Some High School (9-11) 9.95% 10.71% 8.88%

High School Graduate (12) 17.87% 20.53% 20.24%

Some College (13-15) 14.86% 16.06% 17.44%

Associate Degree Only 6.40% 6.52% 6.97%

Bachelors Degree Only 21.43% 19.43% 21.67%

Graduate Degree 14.15% 10.24% 11.83%

www.MarcusMillichap.com

Carlos Azucena

First Vice President Investments

Tel: (408) 391-1746

Fax: (408) 391-1710

[email protected]


Joshua Johnson

Vice President Investments

Tel: (650) 391-1784

Fax: (650) 391-1710

[email protected]


E X C L U S I V E LY L I S T E D B Y

Medical Office - Downtown San Jose

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