sacramento state development opportunity€¦ · 1 1327 65 th street 1327 65th street, sacramento,...

Offering Memorandum

S A CRAMENTO S TATE DEVE LOPMENT OPPORTUN I T Y7042, 6948-6669 Folsom Blvd Sacramento, CA 95826

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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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 information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

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information about this listing to prospective customers.

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PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

SAC STATE DEVELOPMENT OPPORTUNITY

Sacramento, CA

ACT ID Z0030503

2

INVESTMENT

OVERVIEW

SACRAMENTO STATE DEVELOPMENT OPPORTUNITY7042 Folsom Boulevard

6948-6669 Folsom Boulevard

Sacramento, CA 95826

OFFICES NATIONWIDE AND THROUGHOUT CANADA

WWW.MARCUSMILLICHAP.COM

VITAL DATA

Price $7,822,080

Down Payment 100% / $7,822,080

Lot Size (SF) 97,776

Price/SF $80.00

Lot Size (Acres) 2.24 acre(s)

Price/Acre $3,492,000

Zoning C-2

Number of Lots 2

Type of Ownership Fee Simple

E X E C U T I V E S U M M A R Y

S A C R A M E N TO S T A T E D E V E L O P M E N T O P P O R T U N I T Y

7 0 4 2 F o l s o m B o u l e v a r d , S a c r a m e n t o , C A 9 5 8 2 6 ( 4 5 , 1 4 7 S q f t . )

O F F E R I N G P R I C E

$7,822,080L O T S I Z E

2.24 ACRES

Parcels Numbers 079-0222-034, 079-0222-002

6 9 4 8 - 6 6 6 9 F o l s o m B o u l e v a r d , S a c r a m e n t o , C A 9 5 8 2 6 ( 5 2 , 6 2 9 S q f t . )

Properties Can Be Sold Separately Or Together

I N V E S T M E N T O V E R V I E WMarcus & Millichap is pleased to present the sale of an infill development opportunity, located at 6948-6969 and 7042 Folsom Boulevard, in Sacramento, CA. The subject

property consists of 2 parcels which combine for a total of 2.24 acres and are being offered for sale either individually or together. The property is zoned C-2 providing a

buyer the opportunity to develop a range of different uses.

The property is located at the Southern entrance of Sacramento State University on the Folsom Blvd/Ramona Avenue intersection. This intersection is currently under

construction and will be the new main California State University, Sacramento entrance for the south side of Campus. The parcels are on both sides of the new Ramona

Avenue Road extension, which connects to the new southern entrance to Sacramento State University. This new road will provide increased accessibility to the campus and

offer an alternative travel path around the Power Inn Road/Howe Avenue/Folsom Blvd intersection. This development will also provide direct access to CSUS for The

Crossings, a new 225-unit, student housing community that will serve 750 students as well as Sacramento States innovation hub which is still in its conceptual phase of

development.

There is a 4,600 sqft restaurant located on the eastern parcel, that has been occupied by Fahrenheit 250 for 5 years. They pay 7,500 a month plus triple net. On the

western parcel, there is a 5,000 sqft industrial building that is currently vacant and two family homes that are each rented for $900 per month.

This presents a very rare opportunity to acquire property with in-place income, that is prime for multifamily or commercial development.

➢ Development Opportunity

➢ Current In-Place Income

➢ 97,776 Sqft

➢ APN: 079-0222-034, 079-0222-002

➢ Parcels Can Be Sold Separately

➢ Located at the New Main Sac State Southern Entrance

I N V E S T M E N T H I G H L I G H T S

P R O J E C T D E S C R I P T I O N

The City of Sacramento, in cooperation with Caltrans, proposes to extend Ramona Avenue from its current terminus at Brighton Avenue to a new signalized intersection at

Folsom Boulevard. The project will include a roundabout at the Brighton Avenue intersection, an at-grade crossing with the existing Placerville Industrial Lead Spur track,

and a retaining wall for the existing Highway 50 embankment.

L O C A L M A P

S A C S T A T E

D E V E L O P M E N T O P P O R T U N I T Y

FINANCIAL

ANALYSIS






F A H R E N H E I T 2 5 07 0 4 2 F o l s o m B l v d , S a c r a m e n t o , C A 9 5 8 2 6

VITAL DATA

Net Operating Income $90,000

APN 079-0222-034

Gross Leasable Area 4,600 SF

Current Occupancy 100%

Year Built / Renovated 1940 / 2011

Lease Comm. / Exp. 01/01/2014 - 01/01/2019

Lease Type NNN

T H E M A R C U S & M I L L I C H A P A D V A N T A G E

At Marcus & Millichap, we tailor our investment strategies to meet the unique needs and goals of each client. To best serve our clients and to maximize value, we combine our

collaborative culture with the world’s most advanced technology to create the industry’s most powerful proprietary marketing system.

MARKET

COMPARABLES






S A L E S C O M P A R A B L E S - S U M M A R Y

PROPERTY NAME PRICE PRICE/SF LOT SIZE PRICE/ACRE

Sacramento State Development Opportunity7042 Folsom Blvd, Sacramento, CA 95826

$7,822,080 $80.17 2.24 acres $3,492,000

1327 65th Street $2,050,000 $78.44 0.6 acres $3,416,667

University Station $3,319,500 $65.48 1.27 acres $2,613,779

1

2

Avg. $73.14

$0.00

$8.00

$16.00

$24.00

$32.00

$40.00

$48.00

$56.00

$64.00

$72.00

$80.00

Sac StateDevelopmentOpportunity

132765th St

UniversityStation

Average Price Per Square Foot

Avg. $2,372,233

$0

$400,000

$800,000

$1,200,000

$1,600,000

$2,000,000

$2,400,000

$2,800,000

$3,200,000

$3,600,000

$4,000,000

Sac StateDevelopmentOpportunity

132765th St

UniversityStation

Average Price Per Acre

S A L E S C O M P A R A B L E S

Asking Price $7,822,080

Price/SF $80.17



ENTITLED: YES | PERMIT READY: YES

SAC STATE DEVELOPMENT OPPORTUNITY7042 Folsom Blvd, Sacramento, CA

Close of Escrow 6/19/2017

Sales Price $2,050,000

Price/SF $78.44



1 1327 65TH STREET1327 65th Street, Sacramento, CA

Close of Escrow 1/4/2018

Sales Price $3,319,500

Price/SF $65.00



UNIVERSITY STATION6779 Q Street, Sacramento, CA

2

MARKET

OVERVIEW






SACRAMENTOOVERVIEW

The Sacramento-Roseville-Arden-Arcade metro is composed of four counties: Sacramento, El

Dorado, Placer and Yolo, located in the middle of the 400-mile-long Central Valley of California.

Unlike the nearby San Francisco Bay Area, Sacramento is seismically quiet. The area contains

nearly 2.3 million people.

Sacramento, home of the state capitol, is the most populous city, with approximately 501,000

residents, followed by Elk Grove and Roseville with 164,400 and 130,400, respectively. During

the next five years, a more affordable cost of living and infill redevelopment projects will help

draw businesses and residents to the area.

METRO HIGHLIGHTS

SOLID JOB CREATIONLower costs than nearby metros attract businesses and drive job

creation above the U.S. level. Many commuters into the Bay Area

also reside in the area.

POPULATION GROWTHEmployment opportunities and redevelopment efforts will contribute

to pushing Sacramento’s population growth above the national

average.

LOW COST OF LIVINGSacramento’s median home price is more affordable than many

other California metros.

ECONOMY▪ Sacramento is home to the state capitol, making the government sector important to the region’s economy, though less so than

in the past as the economy diversifies.

▪ Sacramento’s seismic stability and low business costs compared with the region attract major corporations seeking to establish

operations. Among these are Intel Corp., Apple Computer and Siemens Transportation Systems.

▪ DHL and United Parcel Service use the former Mather Air Force Base to ship freight. The former McClellan Air Force Base is now

an industrial park and includes tenants such as Northrop Grumman and J.C. Penney.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

California State University Sacramento

Sutter Health

Kaiser Permanente

Raley’s Inc.

Intel Corp.

Catholic Healthcare West

University of California Davis

UC Davis Health System

Hewlett-Packard Co.

Target Corp.* Forecast

MANUFACTURING4%

GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

3%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

16%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

1%INFORMATION

14%

6%

24% 11% 5%

16%

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

▪ The metro is expected to add nearly 154,000 people over the next five years, resulting in the formation of nearly

71,000 households.

▪ A median home price well above the national median has produced a homeownership rate of 59 percent, compared

with the national rate of 64 percent.

▪ Among residents age 25 and older, 31 percent hold bachelor’s degrees and 11 percent also have a graduate or

professional degree.

Residents and visitors to Sacramento can enjoy many recreational activities. The region is home to professional sports teams such

as the Kings (NBA), Sirens (IWFL) and the River Cats. A short drive from the city leads to some of the world’s finest wine-

producing regions: the Napa, Sonoma and Alexander valleys. The area offers various cultural opportunities including the ballet,

opera, museums, a zoo and music festivals. In addition to four community colleges, there are two universities located in the

region: California State University, Sacramento, and University of California, Davis. Housing is relatively affordable in the

Sacramento region compared with the nearby San Francisco Bay Area, drawing many residents.

QUALITY OF LIFE

2017 Population by Age

0-4 YEARS

6%5-19 YEARS

20%20-24 YEARS

7%25-44 YEARS

27%45-64 YEARS

26%65+ YEARS

14%

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

37.2

2017MEDIAN AGE:

U.S. Median:

37.8

$63,900

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

2.3M

2017POPULATION:

Growth2017-2022*:

6.6%

841K

2017HOUSEHOLDS:

8.4%

Growth2017-2022*:

Created on September 2018

POPULATION PROFILE 1 Miles 3 Miles 5 Miles▪Population by Age

0 to 4 Years 4.92% 6.28% 6.39%5 to 14 Years 6.46% 11.16% 11.76%15 to 17 Years 1.72% 3.12% 3.32%18 to 19 Years 7.42% 3.04% 2.47%20 to 24 Years 18.58% 8.65% 7.71%25 to 29 Years 11.96% 9.52% 9.49%30 to 34 Years 7.73% 8.42% 8.40%35 to 39 Years 5.28% 6.72% 6.71%40 to 49 Years 8.78% 11.80% 11.96%50 to 59 Years 9.21% 11.92% 12.51%60 to 64 Years 4.43% 5.40% 5.45%65 to 69 Years 3.77% 4.49% 4.54%70 to 74 Years 2.87% 3.07% 3.06%75 to 79 Years 2.31% 2.20% 2.21%80 to 84 Years 1.94% 1.79% 1.77%Age 85+ 2.60% 2.42% 2.26%Median Age 29.45 34.88 35.32

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪Population 25+ by Education Level

2017 Estimate Population Age 25+ 6,300 96,740 261,910

Elementary (0-8) 1.03% 4.12% 5.57%

Some High School (9-11) 3.28% 7.95% 8.52%

High School Graduate (12) 13.27% 17.92% 20.32%

Some College (13-15) 24.25% 23.83% 24.20%

Associate Degree Only 9.26% 7.54% 7.71%

Bachelors Degree Only 28.79% 20.62% 18.63%

Graduate Degree 19.44% 13.70% 11.14%

DEMOGRAPHICS

IncomeIn 2017, the median household income for your selected geography is $47,869,

compare this to the US average which is currently $56,286. The median household

income for your area has changed by 33.30% since 2000. It is estimated that the

median household income in your area will be $58,757 five years from now, which

represents a change of 22.75% from the current year.

The current year per capita income in your area is $36,442, compare this to the US

average, which is $30,982. The current year average household income in your area

is $69,947, compare this to the US average which is $81,217.

PopulationIn 2017, the population in your selected geography is 10,347. The population has

changed by 21.93% since 2000. It is estimated that the population in your area will

be 10,477.00 five years from now, which represents a change of 1.26% from the

current year. The current population is 47.09% male and 52.91% female. The

median age of the population in your area is 29.45, compare this to the US average

which is 37.83. The population density in your area is 3,289.81 people per square

mile.

HouseholdsThere are currently 5,159 households in your selected geography. The number of

households has changed by 22.45% since 2000. It is estimated that the number of

households in your area will be 5,293 five years from now, which represents a

change of 2.60% from the current year. The average household size in your area is

2.02 persons.

EmploymentIn 2017, there are 12,059 employees in your selected area, this is also known as

the daytime population. The 2000 Census revealed that 74.57% of employees are

employed in white-collar occupations in this geography, and 26.42% are employed in

blue-collar occupations. In 2017, unemployment in this area is 5.98%. In 2000, the

average time traveled to work was 23.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows: 58.65% White,

7.93% Black, 0.47% Native American and 13.92% Asian/Pacific Islander. Compare

these to US averages which are: 70.42% White, 12.85% Black, 0.19% Native

American and 5.53% Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 22.84% of the current year population in your

selected area. Compare this to the US average of 17.88%.

HousingThe median housing value in your area was $305,277 in 2017, compare this to the

US average of $193,953. In 2000, there were 2,022 owner occupied housing units in

your area and there were 2,191 renter occupied housing units in your area. The

median rent at the time was $568.

DEMOGRAPHICS

TRAFFIC COUNT

YEAR COUNT

2014 246,000

2009 20,156

2016 2,124

MARKETING PLANLOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAME

PRICING AND VALUATION MATRIX

PROPERTY NAME

Source: © 2017 Experian

MARKET OVERVIEW

sacramento state development opportunity€¦ · 1 1327 65 th street 1327 65th street, sacramento,...

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