feather river village - loopnet...ownership transititoning for health/age reasons. new owner...

2264 Fair Oaks Blvd, Suite 201 | Sacramento, CA 95825CA BRE #01904661

John DuBois916. 274. [email protected] BRE #00702547

Mark Denholm916. 274. [email protected] BRE #01437366

Jon Gianulias916. 274. [email protected] BRE #01227233

Presented by:

Offering Memorandum

Feather River Village Oroville, California

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Investment Overview

The Feather River Village offering presents the rare opportunity for an investor to acquire a high yielding stabilized asset that is prominently located on Oro Dam Blvd E (State Hwy 162) just off Highway 70. The center benefits from over 30,000 vehicles per day on Oro Dam Blvd and over 8,200 on Feather River Blvd. Furthermore, these traffic numbers are projected to increase by 12,000 VPD to 20,000 VPD due to the opening of the new Super Wal-Mart ½ mi to the south on Feather River Dr, which opened this year. The center has tremendous street presence with over 600’ of frontage and 3 significant pylon signs providing great exposure for all tenants along with highly visible signage on the buildings.

The offering consists of 8 buildings including stand alone restaurants on each end, totaling 39,238 SF and is 97% occupied by a great mix of national and local tenants serving the various needs of the local community. Several tenants have been in the center for over 20 years and some as much as 30 years and in general the center has a strong history of high occupancy. The center is anchored by the highly successful STREAM Charter School. STREAM (Science, Technology, Reading, Engineering, Art & Mathematics) is the most sought after school in the area with full capacity of 270 students and a wait list of over 400. STREAM is a public charter school that offers innovative technology and curriculum that has resulted in elevated test scores that exceed both local and state results. The school has secure and stable state funding. The school anchors the center bringing a regular flow of patrons to the center benefiting all tenants.

Feather River VillagePrice: $6,175,000Cap Rate: 8.05%Net Operating Income (NOI): $497,245 Price Per SF: $157Occupancy: 97%Cash on Cash (Yr 1)*: 11.85% - 13.72%Total Yield (Yr 1)*: 14.85% - 22.59%Address: 451-491 Oro Dam Blvd E (State Hwy 162) Oroville, CA 95965Gross Leasable Area: ±39,238 SFParcel Size: ±4.79 AcresAPN: 035-030-050 (±2.81 Acres) 035-030-059 (±1.98 Acres)*Based on a range of quotes obtained by broker. Ask broker for details.

COPYRIGHT © 2017. ALL RIGHTS RESERVED. CORE Commercial (“Agent”), CA DRE Lic. 01904661, has presented this brief, selected information pertaining to the Property and shall not be considered all-inclusive or unchanged since the date of preparation. No warranty as to the accuracy or completeness is expressed or implied. The information has been received from sources believed to be reliable but is not guaranteed. Prospective purchasers and tenants should independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. The Property is being offered on an “as-is, where-is” and “with all faults” basis unless otherwise specified. Owner reserves the right to withdraw this offering at any time, without further notice, with or without cause.

3Westgate Shopping Center / Woodland

Investment Highlights

Location and Dominant Presence• The major thoroughfare (30,000 VPD on Oro Dam Blvd and 8,200 VPD on Feather River Blvd)

• Over 600’ of frontage on THE major corridor in Oroville

• Less than 1000’ from the Highway 70 Exit

• 3 significant pylon signs on the frontage

Excellent 1031 Exchange Replacement Property• Delivered free and clear

• Pay cash or obtain new financing at historically low rates

• Attractive financing available from multiple sources (Ask broker for specific quotes obtained) Active Local Development• Brand new Super Wal-Mart opened ½ mi south of the subject on Feather River Blvd, relocating from the building 500’ to the west of the subject on Oro Dam Blvd

• Former Wal-Mart being redeveloped to include Smart & Final, Ross, and Fit Republic

• Brand new Panda Express and Starbucks developed across the street

• Recent construction of CVS at Oro Dam Blvd and 5th Ave

• An estimated $500 million being invested in the Oroville Dam Spillway, directly benefiting the local economy

Secure and Stable• 97% occupancy with 68% occupancy by long term national tenants and local tenants

o Pizza Hut – Strong operator of over 100 units in Northern and Central California, Southern Oregon and Northern Nevada. Tenant since 1988

o Subway – Corporate backed lease by dominant category leader

o One Main Financial – Corporate backed lease by nationwide lender

o National tenants, Coldwell Banker and Allstate Insurance, have maintained tenancy since 1995 and local Early Bird Donuts has maintained occupancy since 1987

o STREAM Charter School – The most desired school in the city with 270 students (full occupancy) and a wait list of over 400. With daily traffic in and out, Stream acts as an anchor to the center. Strong and secure state funding

• Recent investment of over $1 million into the center to improve the center • Comparable strip centers and anchored centers on Oro Dam Blvd E with less than 5% shop space vacancy.

Feather River Village

Income & Expense (CY 2018)In-Place

Minimum Rent 1 500,868CAM Reimbursement 162,438

Total Gross Income 663,306Vacancy Allowance

Effective Gross Income 663,306

Expenses Common Area Maintenace 2 48,014Insurance 2 13,616Property Taxes 3 69,000Management Fees 4 5% 31,507Replacement Reserves $0.10 3,924

Total Expenses $166,061

Net Operating Income $497,245

Footnotes

2. Based on 2016 actual increased 3%/yr3. Based on 1.15% of reassessed value4. 5% of Total Gross Income

1. Min ren based on the 38,038 SF currently leased and 1200 SF vacant. Assumes no lease up of 1,200 SF

ProformaFeather River Village

Proposed Purchase StructureConservative Aggressive

Quote QuotePurchase Price $6,175,000 $6,175,000LTV 65.0% 80.0%Equity Reuired $2,161,250 $1,235,000Loan Amount $4,013,750 $4,940,000Rate 4.400% 4.450%Amortization 30 25

Net Operating Income $497,245 $497,245Debt Service Interest Payments $175,286 $217,600 Principal Payments $65,905 $110,217 Total Debt Service ($241,191) ($327,817)Cash Flow After Debt $256,054 $169,428

Performance MetricsCash on Cash 11.85% 13.72%Total Yr 1 Yield 14.90% 22.64%Yr 1 DSCR 2.062 1.517

Broker received several loan quotes from interested lendersPlease request from broker.

Rent Roll

Suite Tenant Name Size ± Share Start End Annual Monthly $/SF on to Options/Comments

451 Pizza Hut 3,600 9.2% 1/1/88 3/31/19 $92,520 $7,710 $2.14 Apr-19 $8,095 1 - 5 yr option 4-2019Oct-21 $8,500

455 A Amazing Massage 1,650 4.2% 4/1/15 5/31/18 $21,780 $1,815 $1.10 No remaining options

455 B RJ's Jamaican Restaurant & Market 1,302 3.3% 11/1/17 10/31/20 $17,184 $1,432 $1.10 Nov-18 $1,461 1 - 3 yr option at same terms and 2% annual increasesAnnually 2%

455 C Subway 1,303 3.3% 1/1/12 12/31/21 $18,336 $1,528 $1.17 Jan-19 $1,559 1, 5-yr option with annual 2% increasesAnnually 2%

455 D Metro PCS 1,200 3.1% 11/1/14 1/31/22 $16,560 $1,380 $1.15 Feb-18 $1,421 No remaining optionsAnnually 3%

455 E STREAM Charter School 1,167 3.0% 6/1/15 8/31/24 $11,904 $992 $0.85 Aug-19 $1,022 2 - 5 yr options with 2% annual increasesAnnually 2%

455 G STREAM Charter School 399 1.0% 3/1/16 8/31/24 $3,672 $306 $0.77 Mar-18 $312 2 - 5 yr options with 2% annual increasesAnnually 2%

459 A Tara Properties 1,200 3.1% 5/1/95 MTM $12,000 $1,000 $0.83MTM but has no intentions of leaving. Tenant since 1995. New Lease pending negotiations

459 B STREAM Charter School 1,200 3.1% 10/1/17 8/31/24 $15,840 $1,320 $1.10 Aug-18 $1,346 2 - 5 yr options with 2% annual increasesAnnually 2%

459 C Lovely Nails 1,200 3.1% 5/1/06 4/30/20 $15,840 $1,320 $1.10 May-18 $1,356 No remaining options

459 D VACANT 1,200 3.1% 1/1/19 12/31/23 $16,560 $1,380 $1.15

459 E Coldwell Banker 1,200 3.1% 10/1/95 MTM $15,120 $1,260 $1.05Ownership transititoning for health/age reasons. New owner (Current employee), wants to extend lease. New Lease pending negotiations

463 - 481 STREAM Charter School 14,371 36.6% 8/1/14 8/31/24 $146,580 $12,215 $0.85 Aug-19 $12,582 2 - 5 yr options with 2% annual increasesAnnually 2%

475 A OneMain Financial 1,174 3.0% 5/1/13 4/30/18 $20,592 $1,716 $1.46 May-18 $1,750 1 - 5 yr option with 2% annual increasesAnnually 2%

475 B Allstate 1,190 3.0% 3/1/16 2/28/21 $15,696 $1,308 $1.10 Mar-21 $1,348 2 - 3 yr options with 3% annual increasesAnnually 3%

475 C Early Bird Donut Shop 1,200 3.1% 11/1/87 10/31/21 $15,276 $1,273 $1.06 Nov-17 $1,273 1 option - terms TBDAnnually 2%

491 Hidalgo Restaurant 4,682 11.9% 9/1/16 11/30/26 $53,376 $4,448 $0.95 Dec-18 $4,670 3 - 5 yr options at greater of 90% of FMV or then current base rent.Biennially 5%

TOTAL OFFERING 39,238 $508,836 $42,403 $1.08 Average

Lease Dates Rental Income Increases


Site Plan Feather River Village

FENCE LINE

FENCE LINE

FENCE LINE

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STREAM Charter School Soccer Field (NAP)

ORO DAM BLVD

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Charter School Access To/From 7th Ave

ORO DAM BLVD E

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Feather River VillageParcel MapFE

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SUBJECT PROPERTY

APN 035-030-050APN 035-030-059

Total ± 4.79 Acres

Feather River VillageProperty Photos3 Pylon Signs

Feather River VillageKey Tenant Profiles

STREAM’s vision is to provide a model for student learning and educational delivery of 21st Century knowledge and skills. Students will leave STREAM engaged in continuous learning, confident in their knowledge and abilities, able to make responsible choices, and committed to making a positive impact on the community and the wider world. STREAM will collaborate and share what we learn about successfully integrating STREAM (Science, Technology, Reading, Engineering, Arts and Mathematics) into a rigorous academic program that serves a diverse student body.

STREAM started as an idea to bring an Oroville School into the 21st Century. Teachers at STREAM all came from within the Oroville or surrounding school districts. STREAM was able to recruit the top performing teachers who believed in the vision laid out by STREAM, so much so they left the comfort and protection of their union membership to teach at STREAM, which is a non-union school. Teachers help and push one another to do what is in the best interest of the kids at all times. They are not punching a clock.

STREAM’s first classes began in 2014 at full capacity with 270 students. While remaining at full capacity every year, the wait list has risen to over 400. STREAM students are selected by lottery to ensure a fair representation of the Oroville school district student population. In only a few short years, Stream students significantly outperform their peers at Oroville area district schools as well as exceeding the state wide average, cementing STREAM as the most desired school for parents to send their kids.

State Priority: Pupil Achievement (Priority 4)CAASPP (California Assessement of Student Performance & Progress) Test Results in English Language Arts/Literacy (ELA) and Mathematics for All Students

Subject 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16English Language Arts/Literacy (Grades 3-8 and 11) 44% 51% 25% 30% 44% 48%Mathematics (Grades 3-8 and 11) 34% 49% 17% 22% 34% 36%

From the California Department of Education School Accountability Report Card (SARC)

State Priority: School Climate (Priority 6)

Suspensions and Expulsions

Rate 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16Suspensions 3.8 2.1 12.7 12.8 3.80 3.70Expulsions 0.0 0.0 0.3 0.3 0.10 0.10


STREAM Oroville School Districts State

Percent of Students Meeting or Exceeding the State Standard



After a walk around the campus and quick observation of the interactions between parents, students and staff, one is impressed with the tight knit community. The positive climate and culture are evident when looking at suspension and expulsion rates as compared to the district and statewide averages. STREAM clearly has figured out how to reach and engage their students both educationally as well as behaviorally.

State Priority: School Climate (Priority 6)

Suspensions and Expulsions

Rate 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16Suspensions 3.8 2.1 12.7 12.8 3.80 3.70Expulsions 0.0 0.0 0.3 0.3 0.10 0.10



Given their success, one might ask if they will leave for larger space. The answer is an emphatic NO. Part of their core belief is in tight community and central to that is a student body size of less than 300. When asked about growth, the answer is that if there was to be growth, it would be through a second campus where they could replicate what they have demonstrated here.

Financing for the school comes from the state and is approved every 5 years. Once approved, losing such financing is difficult and is reserved for cases where there has been mistreatment of students or student performance suffers over a long period of time. In the case of STREAM and their demonstrated success, approval appears to be assured.

Below are links to learn more about STREAM

STREAM Beliefs, Vision, History - https://www.streamcharterschool.org/about-stream

STREAM School Accountability Report Card (SARC) - https://docs.wixstatic.com/ugd/df67fc_4647525285ef4fef92743e1d44254da3.pdf -This report card provides details about staff qualifications, student performance, facilities and much more. The facilities received an exemplary rating!


Pizza Hut is an American restaurant chain and international franchise, known for its Italian-American cuisine menu including pizza and pasta, as well as side dishes and desserts. The company 16,000 locations, and is a subsidiary of Yum! Brands, Inc.. Yum! Brands, Inc., is one of the world’s largest restaurant companies with over 41,000 restaurants in more than 125 countries. WingStreet is a restaurant chain specializing in chicken. It too is owned by Yum! Brands and is almost always co-located with Pizza Hut.

The Feather River Village Pizza Hut/Wing Street is operated by Pacpizza, LLC, an operator of over 100 units throughout Northern and Central California, Northern Nevada and Southern Oregon. They have maintained their presence since 1988.

Subway is a privately held American fast food restaurant franchise that primarily sells submarine sandwiches and salads. Subway is one of the fastest-growing franchises in the world and, as of June 2017, has approximately 45,000 stores located in more than 100 countries. More than half of the stores are located in the United States. It is the largest single-brand restaurant chain and the largest restaurant operator in the world. The Subway chain consistently ranks at the top of Entrepreneur magazine’s Franchise 500 rankings. Besides being number one for the Submarine Sandwich Category, the Subway chain has received the distinction of being the number one Franchise Opportunity for 14 of the past 18 years. The Feather River Village Subway is operated by a 3 unit franchisee (All units in Oroville) and is in the process of opening a fourth location in the new Oroville Wal Mart.

With an A+ BBB rating, OneMain Financial is a large providers of personal installment loans in the United States with approximately 2.2 million customers and a nationwide branch network of more than 1,700 branches across 44 states. OneMain is headquartered in Evansville, Indiana, and has more than 10,000 employees.

In March 2015, Springleaf Holdings, Inc. announced plans to acquire OneMain Financial from Citigroup for $4.25 billion. The acquisition was completed in November 2015 and the new company kept the name OneMain Financial. OneMain is currently traded on the NYSE under the ticker symbol “OMF”.

The Coldwell Banker brand is the oldest and most established residential real estate franchise system in North America. Coldwell Banker changed the way people bought and sold homes across America, ultimately becoming one of the most trusted real estate brands in the world. More than 100 years later, the Coldwell Banker network is still continuously recognized for its innovation and leadership across 3,000 offices in 49 countries and territories.

The Feather River Village Coldwell Banker has been operated by the same operator since 1995. Currently there are discussions between the original owner and two of the top agents about a transition of ownership. Once completed, all parties want to draft a new lease to extend their tenancy.


The Allstate Corporation is the second largest personal lines insurer in the United States (behind State Farm) and the largest that is publicly held. The company also has personal lines insurance operations in Canada. Allstate was founded in 1931 as part of Sears, Roebuck and Co., and was spun off in 1993.

The Feather River Village office of Allstate has operated since 1995. Discussions have begun to transition from month to month to a longer term lease.

Hidalgo Restaurant is a local restaurant that specializes in the authentic foods of Mexico. Hidalgo’s offers a full menu of savory Mexican cuisine including tacos, enchiladas, tamales, burritos, tostadas, and more for breakfast, lunch, and dinner. The operator of Hidalgo’s is a local entrepreneur who also operators Hidalgo’s Food Trucks in the area.

Tara PropertiesTara Property Management has been established as a full service property management company since 1977. They presently manage an excess of 125 units in Oroville including Thermalito, Kelly Ridge, Palermo, Wyandotte, and Berry Creek. Discussions have begun to draft a new lease converting to NNN and extending the tenancy.

Established in 1994 as General Wireless, Inc., MetroPCS is a prepaid wireless service in the United States that is part of T-Mobile US, Inc MetroPCS provides nationwide talk, text, and data using 4G LTE and similar networks. The operator of the Feather River Village store operates 9 locations.

Established at the Feather River Village in 1987, Early Bird Donuts has been a family operation since inception and has continuously and successfully provided fresh donuts and coffee to the community.

Retail Aerial

Feather River VillageCompeting PropertiesTotal Shop Suites Shop Space Asking

Center Address Total SF Space Available Available Rent Comments

1. Bald Rock Plaza 1751 Oro Dam Blvd E 14,500 14,500 0 0 NA Very Comparable Property

2. 1900 Oro Dam 1900 Oro Dam Blvd E 14,400 14,400 0 0 NA Comparable property but in much rougher condition and very tight parking

3. Oroville Plaza 1952=1 Oro Dam Blvd E 98,336 54,080 2 4,000 Negotiable Anchored by Big Lots and Dollar Tree. Center has long suffered from depth and line of sight issues

4. Las Plumas Plaza 1036-1160 Oro Dam Blvd E 166,000 41,155 1 1,530 $1.50/SF Nice center anchored by Food Maxx and Grocery Outlet. The one available suite is a difficult to lease crotch space

5. Currier Square NEQ Oro Dam Blvd and Meyers St 131,204 11,587 1 1,350 NegotiableCenter anchored by Raley's, Petco, Marshalls and USPS but suffered due to being well below grade and no visibility from Oro Damn Blvd

Totals 424,440 135,722 4 6,880 5% Shop space vacancy

Only 5% Shop Space Vacancy in Competing Centers! (All vacancies inferior to subject)

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SUBJECT PROPERTY

SUBJECT PROPERTY

Oroville, California

Oroville is located at the base of the foothills of Northern California, about 75 minutes from Sacramento and about 3 hours from San Francisco. Oroville, or “The City of Gold,” has a population of 19,033 but serves a much broader community of over 70,000 as there is a significant rural population in the greater Oroville region. Population has been steadily increasing about 1% per year. Oroville serves as the county seat of Butte County.

At one time, the city had its roots in gold but today the local economy is driven by agriculture and tourism. The agriculture crop production in Butte County was over $705 million in 2016 with the largest crops being nuts, rice and cattle, as reported by the Department of Agriculture. https://www.buttecounty.net/Portals/2CropReports/2016CropReport.pdf

The City of Oroville is considered the Gateway to Lake Oroville and the Feather River recreational areas. Lake Oroville, at the base of the foothills, adjacent to the city, is the second largest lake in California, created by the construction of the Oroville Dam in 1968, the tallest earthen dam in the United States. It offers many sporting activities throughout the year. The recreational areas in the Oroville area are some of the most significant attractions in the region. The California Department of Parks and Recreation report well over well over 1 million recreational visitors each year with the number increasing every year. These visitors bring significant revenue to the city and directly benefit many of the tenants within Feather River Village.

The largest employers in Oroville include the County of Butte, Oroville Hospital, and Pacific Coast Producers.

Location and Market Information

Feather River VillageOroville DamThe short and long term benefits of the Oroville spillway crisis, a “Blessing in disguise”.

On February 7, 2017, The Oroville Dam’s main spillway was damaged and over the following days and weeks, eroded the hillside. The Dam was never at risk, however, an evacuation was ordered as the lake levels reached the emergency spillway crest. With a little luck and hard work, flooding was averted and the population returned to their homes. That was the crisis and the bad news. The good news is that repairs to the spillway began immediately and are well underway. The highest priority repairs will be completed before winter 2017/18 begins. Total repairs will span over the next several years and further increased spending will be sustained for many years beyond given the extreme attention and inspections to make sure every detail is addressed for the long term.

The crisis received national and international coverage, bringing much attention to the massive feat of engineering, the tallest earthen dam in the world. Oroville and Lake Oroville, once regionally known, is now on a national stage. With this exposure, recreational tourism has increased 30-fold today while repairs are ongoing. While that level of increase is not expected to be sustained in the long term, it is expected that long term tourism will increase substantially, bringing sustainable growth and benefit to the local businesses and population.

Furthermore, the estimates for repair now exceed $500 million dollars! Much of that money will stay local and will be spent locally many times over. This has been a boon to the local economy in the form of hundreds of new construction jobs, full hotels, doubling and even tripling revenue for restaurants and other local businesses and an increase in local tax collections to the benefit of the city and county.

While the spillway crisis was significant, the benefits to the local community will be felt for a very long time in the form of increased tourism and tourism spending as well as the MASSIVE near term boost to the local economy in the form of jobs, increased revenue/spending and for local businesses as well as increased revenue from sales taxes, hotel fees, and so much more.

http://www.latimes.com/local/lanow/la-me-ln-oroville-dam-recovery-20170221-story.html

Feather River VillageOroville Dam

Trade Area Demogrpahics


Demographics 1Mile 3 Mile 5 Mile Trade AreaPopulation 3,082 29,918 38,595 70,265

Average HH Income $35,047 $48,712 $51,685 $59,011

Total Employees 4,225 16,374 17,950 23,861

Total Businesses 483 1,619 1,784 2,553

Area Retailers


www.corecre.com

ORO DAM BLVD E

FEATHER RIVER BLVD

2264 Fair Oaks Blvd, Suite 201Sacramento, CA 95825

CA BRE #01904661

Listed for Sale Exclusively by:

John DuBois916. 274. [email protected] BRE #00702547

Mark Denholm916. 274. [email protected] BRE #01437366

Jon Gianulias916. 274. [email protected] BRE #01227233

OPENED JUNE 2017

feather river village - loopnet...ownership transititoning for health/age reasons. new owner...

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