offering memorandum 1650 the alameda san jose, ca · executive summary 4 property information...

OFFERING MEMORANDUM 1650 The Alameda San Jose, CA±6,070 SF with ±504 SF Detached Garage

Alex LagemannSenior Associate+1 408 436 3615 [email protected] #02024474

300 Santana Row, Fifth Floor San Jose, CA 95128

ph: +1 408 615 3400 fx: +1 408 615 3444

cushmanwakefield.com

Offering Memorandum

1650 THE ALAMEDA, SAN JOSE, CALIFORNIA

Erik Hallgrimson, CCIMExecutive Managing Director+1 408 615 [email protected] #01274540

Chris BakerSenior Director+1 925 627 [email protected] #01334466

TABLE OF CONTENTS:

Disclaimer 3

Executive Summary 4 Property InformationPhotosFloor PlanParcel MapAerial

San Jose 13The Alameda - City of San JoseThe Alameda

Sale Comparables 15Comparable DetailsComparable Map

Financial Analysis 17Lease vs Own SummaryLease vs Own Assumptions

Demographics 19Demographic Summary & Traffic Counts

/31650 THE ALAMEDA

SAN JOSE, CALIFORNIA

Disclaimer

Cushman & Wakefield U.S., Inc. has been engaged as exclusive advisors to Seller,

in connection with Seller’s solicitation of offers for the purchase of 1650 The

Alameda located in San Jose, California (“The Property”). Said solicitation and

potential sale to be governed by this Confidential Offering Memorandum, as it

may be modified or supplemented (the “Offering Memorandum”) and a purchase

agreement. Prospective purchasers are advised that as part of the solicitation

process, Seller will be evaluating a number of factors including the current

financial qualifications of the prospective purchaser. Prospective purchasers

are further advised that the Seller expressly reserves the right in its sole and

absolute discretion to evaluate the terms and conditions of any offer and to

reject any offer without providing a reason therefore. Further, Seller reserves the

right to terminate the solicitation process at any time prior to final execution of

a purchase agreement. The Property is being offered on an “AS IS” basis. This

Offering Memorandum is furnished to prospective purchasers on a confidential

basis solely for the purpose of prospective purchasers determining whether to

submit an offer to purchase the Property. The information contained herein,

or any other related information provided by Seller may not be reproduced or

redistributed or used in whole or in part for any other purpose. No person has been

authorized to give any information or to make any representation or warranty,

either express or implied, other than those contained in an executed purchase

agreement subject to any disclaimer or limitations set forth therein, and if given

or made in any other form, such information or representation should not be

relied upon. While Seller has no reason to believe that the information provided

herein, or in the due diligence materials, contain any material inaccuracies,

neither Seller nor any of its respective officers, directors, shareholders, owners,

employees, agents, members, managers, etc., make any representations or

warranties, express or implied, as to the validity, accuracy or completeness of

the information provided or to be provided except as may be set forth in an

executed purchase agreement, subject to any disclaimers or limitations set forth

therein. Without limiting the generality of the foregoing sentence, nothing herein

shall be deemed to constitute a representation, warranty or promise by Seller

nor any of its respective officers, directors, shareholders, owners, employees,

agents, members, managers, etc., as to the future performance of the Property

or any other matters set forth herein. A prospective purchaser’s sole and

exclusive rights with respect to this prospective transaction, the Property, or

information provided herein or in the Due Diligence Materials, shall be limited

to those expressly provided in an executed purchase agreement and shall be

subject to the terms thereof. In no event shall a prospective purchaser have

any other claims against Seller or any of its officers, directors, shareholders,

owner’s employees, agents, members, managers, etc., for any damages, liability,

or causes of action relating to this solicitation process or the marketing or sale

of the Property. Prospective purchasers are not to construe the contents of this

Offering Memorandum, any Due Diligence Materials or any prior or subsequent

communications from Seller or any of its respective officers, directors,

shareholders, owners, employees, agents, members, managers, etc. as legal,

tax or other advice. Prior to submitting an offer, prospective purchasers should

consult with their own legal counsel and personal and tax advisors to determine

the consequences of an investment in the Property and arrive at an independent

evaluation of such investment.

/41650 THE ALAMEDA


Executive SummaryProperty Information

• Prestigious location on The Alameda

• Excellent owner-user opporutnity

• Julia Morgan designed building

• Excellent Access to Highway 880 & Close Proximity to other Amenities

Julia Morgan was the first licensed female architect in California. She designed more than 700 buildings, including Hearst Castle.

Julia Morgan was born into a world that doubted the ability of women, but her mother and grandmother taught her not to listen. Not only did she graduate college as the only woman in her class getting a degree in civil engineering, she went on to attend l’École des Beaux-Arts in Paris, the best architecture school in the world at that time. She was the first woman to graduate from that school and finished the five-year degree in three years!

Upon returning to the USA she became the first woman to receive and architecture license in California. Not long after she opened her own business and was quickly singled out by the Hearst family, who admired her imaginative style and ground breaking work with reinforced steel.

She also built and advocated for the YWCA and Mills College, which both worked to advance women’s opportunities in the workplace. She designed several buildings for and around UC Berkeley, including Berkeley City Club, and Hearst Gymnasium. Here work can still be found in San Francisco, Los Angeles, Alameda, Oakland, Los Gatos, Palo Alto, Sacramento, Pacific Grove Hollywood, Riverside, and many other locations throughout California.

Source: Blue River Press

Location: 1650 The Alameda, San Jose

Building Size: ±6,070 SF

Detached Garage: ±504 SF

Lot Size: 0.46 Acres (±20,205 SF)

Year Built: 1922

APN: 261-07-033 & 261-07-034

Purchase Price: $3,425,000

Price Per SF: $564*

Property Overview

About The ArchitectProperty Summary

*Excluding ±504 Square Foot detached garage

/51650 THE ALAMEDA


Executive SummaryPhotos

Exterior

/61650 THE ALAMEDA



Entrance

/71650 THE ALAMEDA



Offices

/81650 THE ALAMEDA



Kitchen & Restrooms

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Yard

/101650 THE ALAMEDA


RECEPTION

OFFICE AREA

KITCHEN

DumbWaiter

STRG Walk-InCloset

OFFICE

STRG

OFFICE

LOUNGE

F/P

StrgUnderStairs

DRIVEWAY

DNDN

DN

UP

UPUP

DN

DN

UP

PORCH

LEASE PLANPREPARED FOR:

Lighthouse Management Group1650 The AlamedaSan Jose, CA 95126

1650 THE ALAMEDASAN JOSE, CA

TEL: (888) 393-6655FILE: 18-659

LASERTECH® is a registered US trademark of Lasertech® Floorplans Ltd.Copyright 1998 Lasertech® Floorplans Ltd., All Rights Reserved

Survey Accuracy: +/- %0.17

(As Measured: January 2019)FIRST FLOOR

VILLA AVE

THE

ALA

ME

DA

AREAS COMPUTED IN ACCORDANCE WITHANSI/BOMA (Z65.3) 2009 GROSS AREA STANDARD

Stairs: 21 s.f.

Porch/Stairs: 188 s.f.

Stairs: 13 s.f.

Floor Plan Executive Summary

FIRST FLOOR±2,668 SF

ATTIC±469 SF

UNFINISHED CRAWLSPACE±431 SF

GARAGE±504 SF

SECOND FLOOR±2,501SF

STORAGE ATTIC

DN

DN 7.0' Ceiling Ht

LEASE PLAN

PREPARED FOR:Lighthouse Management Group1650 The AlamedaSan Jose, CA 95126


TEL: (888) 393-6655FILE: 18-659Survey Accuracy: +/- %0.17 LASERTECH® is a registered US trademark of Lasertech® Floorplans Ltd.

Copyright 1998 Lasertech® Floorplans Ltd., All Rights Reserved

(As Measured: January 2019)THIRD FLOOR

FLOOR SUMMARY SQ.FT.Exterior Gross Area 469Connectors 0Unclassified Mezzanine 0Restricted Headroom 302Vault Space 0


Restricted Headroom

UnfinishedCrawlspace

SERVER RM

StrgUnderStairs

UP

UP

LEASE PLAN



TEL: (888) 393-6655FILE: 18-659Survey Accuracy: +/- %0.17 LASERTECH® is a registered US trademark of Lasertech® Floorplans Ltd.

Copyright 1998 Lasertech® Floorplans Ltd., All Rights Reserved

(As Measured: January 2019)BASEMENT


FLOOR SUMMARY SQ.FT.Exterior Gross Area 431Connectors 0Unclassified Mezzanine 0Restricted Headroom 0Vault Space 0

27'-0"

17'-0"GARAGE

FLOOR PLAN


Note: All dimensions shown are rounded to thenearest inch, for informational purposes only.All measurements are recorded to 1/8" accuracyas documented in the final CAD drawing supplied.



TEL: (888) 393-6655FILE: 18-659


*Measured Area represents the footprint of the floor, and is usedsolely for billing purposes. It is NOT to be used for leasing purposes.

(As Measured: January 2019)GARAGE

*Garage Area: 504 s.f.

OFFICE

DECK

OFFICE

STRG

STRG STRG

OFFICE AREA

STORAGE

OFFICE AREA

BALCONY

STORAGESTORAGE

STORAGE

OFFICE AREA

STRG

Open ToBelow

DN

UP

UP DN

Void

LEASE PLAN



TEL: (888) 393-6655FILE: 18-659


(As Measured: January 2019)SECOND FLOOR


Deck: 282 s.f.


Balcony: 39 s.f.

/111650 THE ALAMEDA


Parcel Map Executive Summary

/121650 THE ALAMEDA


Aerial Executive Summary

San Jose Airport

DowntownSan Jose

101

101

280

1650 The Alameda

/131650 THE ALAMEDA


The Alameda - City of San Jose San Jose

SAN FRANCISCO BAY AREA

Fueled by technological innovation, the San Francisco Bay Area has one of the strongest economies in the world. The Bay Area has consistently received more venture capital dollars than any other region in the nation for nearly two decades. This funding has helped propel the Bay Area economy as technology related companies continue to ex-pand their total workforce. The unemployment rate in Santa Clara County has fallen from 2.9% to 2.7% over the past twelve months, and remains well below the California statewide unemployment rate of 4.2%.

THE CITY OF SAN JOSE

The City of San Jose is the largest city in the Bay Area, located roughly 50 miles south os San Francisco and 390 miles north of Los Angeles. The San Jose area is home to the largest concentration of technology expertise in the world-more than 6,600 technology companies employing more than 266,000 people. The City of San Jose has a world-renowned quality of life, offering a wide variety of exciting cultural, recreational, educational and entertainment opportunities. In addition, the City of San Jose has the nation’s best public safety record of any metropolitan area, a marvelous ethnic diversity and a beautiful climate.

THE ALAMEDA

For over 200 years, The Alameda has been at the heart of San Jose’s most vibrant and historic neighborhoods. The Alameda Business Association has been working since 1991 to strengthen this dynamic commercial and residential community. The ABA is primarily made up of businesses on The Alameda, a three-mile stretch of the El Camino Real linking Downtown San Jose to Santa Clara.

/141650 THE ALAMEDA


San JoseThe Alameda

San Jose International Airport

Wrap This Mediterranean Cuisine

Gaudalupe River Park

Trader Joe’s

Office DepotChili’s

El Pollo LocoJamba Juice

Sweet Tomatoes

Diridon San Jose Caltrain Station

SAP CenterWhole Foods

CVSChipotle

Sushi Infinity

Scrambl’zFive Guys

YMCA

Bill’s Cafe

Valley InnTaco Bell

Subway Ike’s

Safeway

7-Eleven

deedee’s Food

Pizza My Heart

Round Table PizzaAnnie’s Sandwiches

Togo’s

Toppings TreeHatco

Jasmine Thai4 Season Pho

Mio Vicino

Santa Clara Police Dept.

The Mission Inn

White ElephantSu’s Mongolian BBQ

Taqueria la Veracruzana

Reed Street Dog Park

CostcoMcDonald’s

La Costa Del Sol

Burger King

Starbucks Coffee

PeetsUPS Store

Lowe’s

StaplesSmoking Pig BBQ

In-N-Out-Burger

Park Station Hashery

Santa Clara Caltrain Station

Santa Clara University

Avaya StadiumStarbucks Coffee

Cramer’s BagelsCandlewood Suites

1650 The Alameda

Restaurants

Lodging

Grocery & Retail Stores

Public

Whole Foods | 3 MinutesSAP Center | 3 MinutesCity Sports Club | 8 MinutesAvaya Stadium | 6 Minutes

City Sports Club

BJ’s Restaurant

Starbucks

/151650 THE ALAMEDA


Sale ComparablesComparable Details

2. 1217 PARK AVE , SAN JOSE

Building Size (SF): 1,534

Sold: $1,030,000

Price/SF: $671.45

Property Type: Office

Date Sold: Oct. 2018

5. 1905 THE ALAMEDA, SAN JOSE


Sold: $2,220,000

Price/SF: $456.79


Date Sold: April 2017

3. 1032 W HEDDING ST, SAN JOSE


Sold: $550,000

Price/SF: $431.71


Date Sold: Sept. 2016

1. 530 STOCKTON AVE, SAN JOSE


Sold: $1,800,000

Price/SF: $688.60


Date Sold: Dec. 2016



Sold: $1,350,000

Price/SF: $519.23


Date Sold: July 2018

6. 2060 THE ALAMEDA, SAN


Sold: $1,245,000

Price/SF: $475.19


Date Sold: May 2017



Sold: $1,270,000

Price/SF: $412.07


Date Sold: Feb. 2017

/161650 THE ALAMEDA


Sale ComparablesComparable Map

1650 THE ALAMEDA

7

6

45

2

1

3

/171650 THE ALAMEDA


Financial AnalysisLease vs Own Summary

LEASE ASSUMPTIONS:

Property Square Feet 6,070

Rent per Square Foot per Month NNN $3.50

Rent per Month (total) $21,245

PURCHASE ASSUMPTIONS:

Base Property Price $3,425,000

Total Cost $3,425,000

START-UP COSTS

Prepaid Rent and Security Deposit $42,490

Total Start-Up Costs $42,490

START-UP COSTS

Cash down payment (10%) $342,500

Loan fees and costs $53,430

Total Start-Up Costs $395,930

MONTHLY COSTS

Rent Payment $21,245

Total Monthly Costs $21,245

MONTHLY COSTS

Mortgage Payment $19,710

OPEX $1,760

Property Taxes $3,568

Total Monthly Costs $25,038

MONTLY OWNERSHIP BENEFITS

Annual Appreciation $0

Annual Depreciation: At 40% Tax Bracket $0

Average Monthly Principal Payment (Debt Reduction) $0

Total Ownership Benefits $0

MONTLY OWNERSHIP BENEFITS

Annual Appreciation At 2% $5,708

Annual Depreciation: At 40% Tax Bracket $1,756

Average Monthly Principal Payment (10 YR Avg) $7,805

Total Ownership Benefits $15,270

LEASE OWN

TOTAL EFFECTIVE MONTHLY COST: $21,245 TOTAL EFFECTIVE MONTHLY COST: $9,768

/181650 THE ALAMEDA


Financial AnalysisLease vs Own Assumptions

• INCREASE IN PROPERTY VALUE & OWNER’S EQUITY •Property

ValueLoan

Balances Owner'sEquity

Property Value

Owner's Equity

YEAR 5: $3,781,477 $2,676,161 $1,105,316 YEAR 15: $4,609,599 $3,155,785

YEAR 10: $4,175,056 $2,145,880 $2,029,176 YEAR 20: $5,089,370 $4,538,814

”Equity” is based upon property value appreciating at 2% per year less the loan balances.

Operating Expense Costs (OPEX): Includes estimated CAM charges, insurance, utilities and janitorial expenses.

Depreciation: Estimated based upon 60% allocation of the purchase price to building cost.

• SBA 504 FINANCING PROGRAM •Purchase price $3,425,000 * Note that interest rates vary from

month to month and loan terms differ from one lender to another.

Cash down payment: 10% $342,500

Amount financed $3,082,500 Monthly payment (combined 1st & 2nd) $19,710

* The SBA 504 financing program combines a loan from a regular bank for 50% of the total loan amount and a loan from the SBA for 40% of the total loan amount (total 90%). The buyer provides a 10% cash down payment.

SBA Financing 1st Mortgage by Bank 2nd Mortgage by Bank

Loan Amount $1,712,500 $1,370,000

Interest Rate 5.50% 5.20% amortization

Amortization in years 25 year amortization 20 year of total

Percent of Total Loan Amount 50% of total 40% $36,305

Loan Fee 1.00% $17,125 2.65%

Monthly Payment $10,516 $9,193

Disclaimer - The Lease vs. Own Financial Analysis Summary and Assumptions are intended to serve as a sample scenario. While we strive to ensure the content is correct, we do not warrant the completeness or accuracy of the information. You must contact a Certified Public Accountant and Lender(s) to review the details of your specific financial situation.

/191650 THE ALAMEDA


DemographicsDemographic Summary & Traffic Counts

2018 Summary 1-Mile 3 -Mile 5-Mile

Population 21,985 212,584 608,501

Households 8,822 87,137 232,783

Families 4,899 48,749 152,175

Average Household Size 2.41 2.57 2.85

Owner Occupied Housing Units 43.2% 38.6% 47.0%

Renter Occupied Housing Units 53.9% 58.5% 50.6%

Median Age 36.6 34.7 35.5

Median Household Income $816,689 $696,107 $695,545

Average Household Income $129,122 $106,435 $117,351

Per Capita Income $52,338 $40,766 $40,921

2023 Summary

Population 23,780 249,252 718,456

Households 9,481 92,459 245,801

Families 5,267 51,754 160,715

Average Household Size 2.43 2.58 2.87

Owner Occupied Housing Units 41.3% 38.7% 45.9%

Renter Occupied Housing Units 54.0% 55.6% 50.2%

Median Age 36.9 35.3 36.2

Median Household Income $107,132 $89,419 $101,944

Average Household Income $155,119 $128,878 $139,784

Per Capita Income $62,296 $48,994 $48,435

Trends: 2018-2023 Annual Rate

Population 1.58% 1.20% 1.16%

Households 1.45% 1.19% 1.09%

Families 1.46% 1.20% 1.10%21,000CARS PER DAY

11,060CARS PER DAY

TRAFFIC COUNTS

24,000CARS PER DAY

37,000CARS PER DAY

1650 THE ALAMEDA

OFFERING MEMORANDUM 1650 The Alameda, San Jose, CA

±6,070 SF with ±504 SF Detached Garage

Erik Hallgrimson, CCIMExecutive Managing Director+1 408 615 [email protected] #01274540

Chris BakerSenior Director+1 925 627 [email protected] #01334466

Alex LagemannSenior Associate+1 408 436 3615 [email protected] #02024474

CONTACT

offering memorandum 1650 the alameda san jose, ca · executive summary 4 property information...

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