OFFERING MEMORANDUM 2799-2801 Middlefield Road Palo …...2799-2801 Middlefield Road LLC - 2799-2801...
22
OFFERING MEMORANDUM 2799-2801 Middlefield Road Palo Alto, CA 94306 PRIME LOCATION IN MIDTOWN
Transcript of OFFERING MEMORANDUM 2799-2801 Middlefield Road Palo …...2799-2801 Middlefield Road LLC - 2799-2801...
OFFE
RIN
G M
EM
OR
AN
DU
M
2799-2801 Middlefield RoadPalo Alto, CA 94306
PRIME LOCATION IN MIDTOWN
CONTENTS
Exclusively Marketed By
Brandon Kley Lily PizanoBroker Associate/Partner/Realtor Realtor/Partner/Property Manager(650) 759-8803 (650) 218-6690License # 01726167 License # [email protected] [email protected]
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.
01 Executive Summary Investment Summary 4 Location Summary 5
02 Property Description Property Features 6 Aerial Map 7 Business map 8
04 On Market Comps On Market Comparables Details 9 On Market Comparables Summary 10 On Market Comparables Charts 11 On Market Comparables Map 12
06 Rent Roll Rent Roll Details 13
07 Financial Analysis Income & Expense Analysis 14 Multiyear Cash Flow Assumptions 15 Cash Flow Analysis 16 Disposition Sensitivity Analysis 18
08 Demographics Demographics 19 Demographic Charts 20
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Peninsula Prime Realtyand it should not be made available to any other person or entity without the written consent of Peninsula Prime Realty. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to PeninsulaPrime Realty. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary levelof interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Peninsula Prime Realty has not made any investigation, and makes no warranty or representationwith 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, thepresence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financialcondition 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 offering memorandum has been obtained from sources we believe reliable; however, Peninsula Prime Realty has not verified, and will not verify, any of theinformation contained herein, nor has Peninsula Prime Realty conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy orcompleteness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for theircosts and expenses of investigating the subject property.
Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT PENINSULA PRIME REALTY FOR MORE DETAILS.Copyright © 2019 CREOP, LLC. All Rights Reserved.
Investment Summary | 04
OFFERING SUMMARYADDRESS 2799-2801 Middlefield Road
Palo Alto CA 94306
COUNTY Santa Clara
BUILDING SF 1,976 SF
LAND SF 8,240 SF
YEAR BUILT 1986
APN 127-34-052
FINANCIAL SUMMARYOFFERING PRICE $2,860,000
PRICE PSF $1,447.37
NOI (CURRENT) $70,083
CAP RATE (CURRENT) 2.45 %
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2019 Population 24,696 147,039 263,753
2019 Median HH Income $186,933 $137,676 $149,101
2019 Average HH Income $236,322 $193,944 $203,442
3 Suites Total.
Suite A: Palo Alto Smart Therapy
Lease Type: Modified Gross
Tenant pays 50.5% of the annual maintenance and monthly utilities:
Landscape maintenance and storm drain
Insurance
Roof Drain Cleaning
Plumbing
Suite B: Hair Salon
Lease type: Modified Gross
Tenant pays Tenant pays 20.5% of the annual maintenance and monthlyutilities:
Landscape maintenance and storm drain
Suite C: University Investment
Lease Type: Modified Gross
Tenant pays 29% of the annual maintenance and monthly utilities:
Landscape and storm drain
Current zoning information provided by the City of Palo Alto:
Downstairs use: Retail and personal services only.
Upstairs: Office/medical with a conditional use permit.
No office or medical allowed downstairs due to overlay zoningrequirements.
This property was formerly a gas station (Chevron). Ongoing soil testingwill performed by Chevron.
Location Summary | 05
Property Features | 06
PROPERTY FEATURESNUMBER OF TENANTS 3
BUILDING SF 1,976
LAND SF 8,240
LAND ACRES 0.19
YEAR BUILT 1986
# OF PARCELS 1
ZONING TYPE C2
BUILDING CLASS B
NUMBER OF STORIES 2
NUMBER OF BUILDINGS 1
LOT DIMENSION 70 x 110
NUMBER OF PARKING SPACES 11
MECHANICALHVAC AC & Heat
Aerial Map | 07
Business map | 08
On Market Comparables Details | 09
1
636 Middlefield RdPalo Alto, CA 94301
RSF 1,464
YEAR BUILT 1939
ASKING PRICE $2,750,000
PRICE/SF $1,878.42
CAP RATE 3.00 %
OCCUPANCY 100.00 %
DAYS ON MARKET 109
DISTANCE 1.9 miles
Cap Rate Range 2.45 % - 3.00 %
LOW HIGH
Price/Square Ft $1,447 - $1,878
LOW HIGH
DOM Range 109 - 109
LOW HIGH
S
2799-2801 Middlefield RoadPalo Alto, CA 94306
RSF 1,976
YEAR BUILT 1986
ASKING PRICE $2,860,000
PRICE/SF $1,447.37
CAP RATE 2.45 %
Cap Rate Range 2.45 % - 3.00 %
LOW HIGH
Price/Square Ft $1,447 - $1,878
LOW HIGH
On Market Comparables Summary | 10
PROPERTY BLDG SF ASK PRICE PSF CAP RATE YR BUILT DISTANCE (mi)
1 636 Middlefield RdPalo Alto, CA 94301 1,464 $2,750,000 $1,878.42 3.00% 1939 1.90
AVERAGES 1,464 $2,750,000 $1,878.42 3.00% 1939 1.90
SUBJECT 1,976 $2,860,000 $1,447.37 2.45% 1986
On Market Comparables Charts | 11
On Market Comparables Map | 12
# Address City
S 2799-2801 Middlefield Road Palo Alto1 636 Middlefield Rd Palo Alto
Properties: 2799-2801 Middlefield Road LLC - 2799-2801 Middlefield Road Palo Alto, CA 94306Units: ActiveAs of: 09/12/2019Unit Tags Tenant Status Rent Deposit Lease From Lease To Move-in
2799-2801 Middlefield Road LLC - 2799-2801 Middlefield Road Palo Alto, CA 943062799(downstairs2nd unit)
Kim Keyak Current 1,092.73 1,000.00 05/24/2011 08/31/2021 05/24/2011
2799Middlefield(Suite A)
Krista Regedanz, Ph.D., APsychological Corporation
Current 3,900.00 12,300.00 04/03/2017 10/31/2021 04/03/2017
2799Middlefield(Upstairs)
University Investments Current 2,382.00 2,500.00 09/17/1999 10/31/2021 09/17/1999
3 Units 100.0% Occupied 7,374.73 15,800.00
Total 3Units
100.0% Occupied 7,374.73 15,800.00
Rent Roll
Created on 09/12/2019 Page 1
Rent Roll Details | 13
Income & Expense Analysis | 14
INCOME CURRENT YEAR 2
Effective Gross Income $89,614 $91,151
Less: Expenses $19,531 $19,608
Net Operating Income $70,083 $71,543
EXPENSES CURRENT YEAR 2
Real Estate Taxes $10,656 $10,656
Insurance $2,394 $2,394
Management Fee $4,481 $4,558
Repairs & Maintenance $2,000 $2,000
Total Operating Expense $19,531 $19,608
Expense / SF $9.88 $9.92
% of EGI 21.79 % 21.51 %
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
Multiyear Cash Flow Assumptions | 15
GLOBALSale Price $2,860,000
Cash Flow Analysis | 16
CASH FLOWCalendar Year Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $89,614 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151Gross Potential Income $89,614 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151
Effective Gross Income $89,614 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151 $91,151Operating ExpensesReal Estate Taxes $10,656 $10,656 $10,656 $10,656 $10,656 $10,656 $10,656 $10,656 $10,656 $10,656Insurance $2,394 $2,394 $2,394 $2,394 $2,394 $2,394 $2,394 $2,394 $2,394 $2,394Management Fee $4,481 $4,558 $4,558 $4,558 $4,558 $4,558 $4,558 $4,558 $4,558 $4,558Repairs & Maintenance $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000Total Operating Expense $19,531 $19,608 $19,608 $19,608 $19,608 $19,608 $19,608 $19,608 $19,608 $19,608
Net Operating Income $70,083 $71,543 $71,543 $71,543 $71,543 $71,543 $71,543 $71,543 $71,543 $71,543
Effective Gross Income vs Operating Expenses Cash Flow
Cash Flow Analysis | 17
Calendar Year Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 2.45 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 %CAP Rate 2.45 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 %Operating Expense Ratio 21.79 % 21.51 % 21.51 % 21.51 % 21.51 % 21.51 % 21.51 % 21.51 % 21.51 % 21.51 %Gross Multiplier (GRM) 31.91 31.38 31.38 31.38 31.38 31.38 31.38 31.38 31.38 31.38Breakeven Ratio 21.79 % 21.51 % 21.51 % 21.51 % 21.51 % 21.51 % 21.51 % 21.51 % 21.51 % 21.51 %Price / SF $1,447.37 $1,447.37 $1,447.37 $1,447.37 $1,447.37 $1,447.37 $1,447.37 $1,447.37 $1,447.37 $1,447.37Income / SF $45.35 $46.12 $46.12 $46.12 $46.12 $46.12 $46.12 $46.12 $46.12 $46.12Expense / SF $9.88 $9.92 $9.92 $9.92 $9.92 $9.92 $9.92 $9.92 $9.92 $9.92
Disposition Sensitivity Analysis | 18
5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE PSF PROCEEDS AFTER
LOAN PAYOFFIRR
0.25% $28,617,380 $14,482 $28,617,380 59.73%0.50% $14,308,690 $7,241 $14,308,690 39.44%0.75% $9,539,127 $4,827 $9,539,127 28.88%1.00% $7,154,345 $3,621 $7,154,345 21.92%1.25% $5,723,476 $2,896 $5,723,476 16.81%1.50% $4,769,563 $2,414 $4,769,563 12.83%1.75% $4,088,197 $2,069 $4,088,197 9.58%2.00% $3,577,173 $1,810 $3,577,173 6.86%2.25% $3,179,709 $1,609 $3,179,709 4.53%
10 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE PSF PROCEEDS AFTER
LOAN PAYOFFIRR
0.25% $28,617,380 $14,482 $28,617,380 27.01%0.50% $14,308,690 $7,241 $14,308,690 18.83%0.75% $9,539,127 $4,827 $9,539,127 14.36%1.00% $7,154,345 $3,621 $7,154,345 11.33%1.25% $5,723,476 $2,896 $5,723,476 9.06%1.50% $4,769,563 $2,414 $4,769,563 7.27%1.75% $4,088,197 $2,069 $4,088,197 5.79%2.00% $3,577,173 $1,810 $3,577,173 4.53%2.25% $3,179,709 $1,609 $3,179,709 3.45%
Demographics | 19
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 22,500 130,679 235,223
2010 Population 23,518 137,041 244,278
2019 Population 24,696 147,039 263,753
2024 Population 25,250 152,940 274,917
2019 African American 508 6,412 9,914
2019 American Indian 38 458 877
2019 Asian 9,379 40,495 67,065
2019 Hispanic 1,578 29,888 53,973
2019 White 12,935 74,250 141,661
2019 Other Race 568 15,193 26,421
2019 Multiracial 1,196 7,963 14,309
2019-2024: Population: Growth Rate 2.20 % 3.95 % 4.15 %
2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 376 3,739 5,694
$15,000-$24,999 218 2,075 3,468
$25,000-$34,999 208 2,567 3,969
$35,000-$49,999 343 3,188 5,523
$50,000-$74,999 679 4,950 8,653
$75,000-$99,999 585 4,351 8,050
$100,000-$149,999 1,122 7,283 14,084
$150,000-$199,999 1,361 6,311 11,855
$200,000 or greater 4,318 19,061 37,218
Median HH Income $186,933 $137,676 $149,101
Average HH Income $236,322 $193,944 $203,442
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 9,120 49,786 93,046
2010 Total Households 8,957 50,453 92,363
2019 Total Households 9,208 53,525 98,513
2024 Total Households 9,366 55,723 102,583
2019 Average Household Size 2.67 2.61 2.59
2000 Owner Occupied Housing 5,622 24,071 47,928
2000 Renter Occupied Housing 3,294 24,425 41,820
2019 Owner Occupied Housing 5,606 25,866 50,504
2019 Renter Occupied Housing 3,602 27,660 48,009
2019 Vacant Housing 365 3,115 5,590
2019 Total Housing 9,573 56,640 104,103
2024 Owner Occupied Housing 5,782 26,977 52,500
2024 Renter Occupied Housing 3,584 28,745 50,083
2024 Vacant Housing 356 2,984 5,368
2024 Total Housing 9,722 58,707 107,951
2019-2024: Households: Growth Rate 1.70 % 4.05 % 4.05 %
Source: esri
Demographic Charts | 20
1 Mile Radius 3 Mile Radius 5 Mile Radius
2019 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2019 Population by Race
Demographic Charts | 21
2019 Household Occupancy - 1 Mile Radius
Average Income Median Income
2019 Household Income Average and Median
Exclusively Marketed By
Brandon Kley Lily PizanoBroker Associate/Partner/Realtor Realtor/Partner/Property Manager(650) 759-8803 (650) 218-6690License # 01726167 License # [email protected] [email protected]
powered by CREOP
