san jose retail showroom 1033 s. bascom avenue san jose, … · san jose retail showroom 1033 s....

San Jose Retail Showroom

1033 S. Bascom AvenueSan Jose, CA

Chris Prohaska

(408) [email protected]

Lic. #01475124

❖ Offered at $1,550,000 ($256 psf), below replacement cost.

❖ 6,049 s.f. of Retail Showroom & Service Warehouse.

❖ Very high traffic section of Bascom Ave.

❖ Across from new Library, near Santa Clara Valley Med. Ctr.

❖ Just 2 blocks from Hwy. 280

Phone: (650) 961-6206 ● Fax: (408) 716-3218 ● 800 El Camino Real ● Mountain View, CA 94040 ● www.cpi-re.com

Table of Contents

SECTION 1 - PROPERTY INFORMATION

SECTION 2 - PHOTOS & MAPS

SECTION 3 - FINANCIAL SUMMARY

SECTION 4 - COMPARABLES

San Jose Retail Showroom


Chris Prohaska(408) 313-9172

CONFIDENTIALITY & DISCLAIMER

This Offering Memorandum has been prepared by California Partners Inc. (Broker) solely for the use of prospective purchasers (Buyers) of the referenced Property. The material resented in this memorandum is confidential, furnished solely for the purpose of considering investment in the Property, and is not to be copied and/or used for any purpose, or made available to other persons, without the express written consent of the seller (Seller) or Broker of the Property. This memorandum has been prepared to provide summary information to Buyers. It does not, however, purport to present all possible material information regarding the Property. Furthermore, the information contained in this package has been obtained from sources believed by Broker and Seller to be reliable, however, neither Broker nor Seller make any guarantee, warranty or representation whatsoever regarding the accuracy, or completeness of any material, physical, legal, financial, environmental or other information provided. Any financials, pro-formas, projections, opinions, assumptions or estimates are used for examples only and do not necessarily represent the current or future performance of the Property. Broker and Seller strongly recommend that Buyers conduct an in-depth investigation of all physical and financial aspects of the Property as part of their thorough due diligence to determine if the Property meets their needs and expectations. Broker and Seller are not empowered to provide, nor shall be held liable, for any tax, financial, or legal opinions or conclusions of Buyers regarding purchase or ownership of the Property. Seller retains the right to withdraw, modify, or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and Buyer(s) have executed a contract of sale containing terms and conditions acceptable to Seller. Such obligations of Seller shall only be those defined in such contract of sale.

page 3 of 19

Property InformationSan Jose Retail Showroom1033 S. Bascom AvenueSan Jose, CA

Property DescriptionSan Jose Retail Showroom



Showroom with distribution warehousePossible Automotive Products Retailer

Vacant for Owner-User: room for 23 parkingspaces, with 5 large, 12.5' high drive-in bays, fora rear distribution warehouse, this slump-stonebrick building built in 1973,is ideal for adistribution/retailer showroom in front, with verygood parking and easy access from bothBascom Avenue directions. Being just a coupleblocks from Highway 280, it is walking distanceto Santa Clara Valley Medical Center and thenew San Jose library. It is surrounded byseveral similar, single-user, well maintainedbuildings. On each side are 2 small multi-tenantstrip centers. Bascom avenue is a 6 lane maincorridor running through 4 different cities in the South Bay area. The CN Zoning has a Use Code ofCommercial Neighborhood: Shopping Center, Strip Center, Enterprise Zone. This can allow forretail automotive parts sales which would be the most likely the best, most immediate fit.(Installation or repairs requiring a use permit from the City).

page 5 of 19

Photos & MapsSan Jose Retail Showroom1033 S. Bascom AvenueSan Jose, CA

Property PhotosSan Jose Retail Showroom



Ideal for Owner - UserGreat Retail Auto location and building

From Bascom Service warehouse

Showroom Roll up doors

Library- across street Hospital- up Bascom ave.

page 7 of 19

Maps and AerialsSan Jose Retail Showroom



Traffic Counts

Traffic Counts

page 8 of 19

Maps and AerialsSan Jose Retail Showroom



Front Aerial

Side Aerial

page 9 of 19

Financial SummarySan Jose Retail Showroom1033 S. Bascom AvenueSan Jose, CA

Pro Forma SummarySan Jose Retail Showroom



TENANT ANNUAL SCHEDULED INCOME

Tenant Actual Market

Retail / Showroom $0 $112,512

TOTALS $0 $112,512

ANNUALIZED INCOMEActual Market

Gross Potential Rent $0 $112,512

Less: Vacancy $0 $0

Reimbursements $23,415 $29,041

Effective Gross Income $23,415 $141,553

Less: Expenses ($25,415) ($22,300)

Net Operating Income ($2,000) $119,253

Debt Service ($60,458) ($60,458)

Net Cash Flow after Debt Service ($62,458) $58,795

Principal Reduction $21,346 $21,346

Total Return ($41,112) $80,141

ANNUALIZED EXPENSES

Actual MarketProperty Management Fee $1,115 $0

Replacement Reserves $2,000 $0

Property Taxes $17,400 $17,400

Maintenance $2,400 $2,400

Building Insurance $2,500 $2,500

Total Expenses $25,415 $22,300

Expenses Per RSF $4.20 $3.69

INVESTMENT SUMMARY

Price: $1,550,000

Year Built: 1973

Tenants: 1

RSF: 6,049

Price/RSF: $256.24

Lot Size: 22,000 sf

Floors: 1

Cap Rate: -.13%

Market Cap Rate: 7.69%

FINANCING SUMMARY

Loan Amount: $930,000

Down Payment: $620,000

Loan Type: Fixed

Interest Rate: 4.25%

Term: 25 years

Monthly Payment: $5,038

DCR: -.03

page 11 of 19

Executive SummarySan Jose Retail Showroom



ACQUISITION COSTS

Purchase Price, Points and Closing Costs $1,566,300

Investment - Cash $636,300

First Loan $930,000

INVESTMENT INFORMATION

Purchase Price $1,550,000

Price per Tenant $1,550,000

Price per Sq. Ft. $256.24

INCOME, EXPENSES & CASH FLOW

Gross Scheduled Income $23,415

Total Vacancy and Credits $0

Operating Expenses ($25,415)

Net Operating Income ($2,000)

Debt Service ($60,458)

Cash Flow Before Taxes ($62,458)

Total Interest (Debt Service) ($39,112)

Depreciation and Amortization ($38,627)

Taxable Income (Loss) ($79,740)

Tax Savings (Costs) $29,504

Cash Flow After Taxes ($32,954)

FINANCIAL INDICATORS

Cash on Cash Return Before Taxes -9.82%

Optimal Internal Rate of Return (yr 10) 1.80%

Debt Coverage Ratio -0.03

Capitalization Rate -0.13%

Gross Income / Square Feet $3.87

Gross Expenses / Square Feet ($4.20)

Operating Expense Ratio 108.54%

page 12 of 19

Demographic and Income ProfileDemographics Prepared by Chris ProhaskaBascom Retail

Summary Census 2010 2012 2017Population 39,402 40,320 42,418Households 15,387 15,757 16,689Families 8,842 8,949 9,578Average Household Size 2.51 2.51 2.49Owner Occupied Housing Units 5,663 5,521 6,015Renter Occupied Housing Units 9,724 10,236 10,674Median Age 33.9 33.9 34.2

Trends: 2012 - 2017 Annual Rate Area State NationalPopulation 1.02% 0.67% 0.68%Households 1.16% 0.66% 0.74%Families 1.37% 0.81% 0.72%Owner HHs 1.73% 1.03% 0.91%Median Household Income 3.50% 3.35% 2.55%

2012 2017 Households by Income Number Percent Number Percent

<$15,000 1,643 10.4% 1,605 9.6%$15,000 - $24,999 1,328 8.4% 1,099 6.6%$25,000 - $34,999 1,484 9.4% 1,171 7.0%$35,000 - $49,999 2,452 15.6% 2,272 13.6%$50,000 - $74,999 2,956 18.8% 2,958 17.7%$75,000 - $99,999 1,577 10.0% 2,207 13.2%$100,000 - $149,999 2,232 14.2% 2,782 16.7%$150,000 - $199,999 1,170 7.4% 1,512 9.1%$200,000+ 915 5.8% 1,083 6.5%

Median Household Income $56,149 $66,675Average Household Income $80,175 $92,963Per Capita Income $32,026 $37,257

Census 2010 2012 2017 Population by Age Number Percent Number Percent Number Percent

0 - 4 3,132 7.9% 3,184 7.9% 3,356 7.9%5 - 9 2,442 6.2% 2,480 6.2% 2,605 6.1%10 - 14 1,945 4.9% 1,954 4.8% 2,072 4.9%15 - 19 2,033 5.2% 1,975 4.9% 1,982 4.7%20 - 24 2,873 7.3% 2,990 7.4% 2,897 6.8%25 - 34 8,098 20.6% 8,423 20.9% 8,936 21.1%35 - 44 6,039 15.3% 6,003 14.9% 6,231 14.7%45 - 54 5,302 13.5% 5,252 13.0% 5,127 12.1%55 - 64 3,780 9.6% 4,039 10.0% 4,456 10.5%

65 - 74 1,750 4.4% 1,914 4.7% 2,425 5.7%75 - 84 1,227 3.1% 1,259 3.1% 1,388 3.3%

85+ 781 2.0% 847 2.1% 943 2.2%Census 2010 2012 2017

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 21,506 54.6% 21,656 53.7% 21,902 51.6%Black Alone 1,923 4.9% 2,053 5.1% 2,307 5.4%American Indian Alone 441 1.1% 460 1.1% 511 1.2%Asian Alone 5,595 14.2% 5,799 14.4% 6,413 15.1%Pacific Islander Alone 228 0.6% 236 0.6% 261 0.6%Some Other Race Alone 7,472 19.0% 7,779 19.3% 8,462 19.9%Two or More Races 2,237 5.7% 2,337 5.8% 2,562 6.0%

Hispanic Origin (Any Race) 15,239 38.7% 15,864 39.3% 17,407 41.0%Data Note: Income is expressed in current dollars.

June 27, 2013

©2013 Esri Page 1 of 2

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017.

Demographic and Income ProfileDemographics Prepared by Chris ProhaskaBascom Retail

AreaStateUSA

Trends 2012-2017

Population Households Families Owner HHs Median HH Income

Annual

Rat

e (i

n p

erce

nt)

3.5

3

2.5

2

1.5

1

0.5

0

20122017

Population by Age

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

Perc

ent

20

18

16

14

12

10

8

6

4

2

0

2012 Household Income

<$15K10.4%

$15K - $24K8.4%

$25K - $34K9.4%

$35K - $49K15.6%

$50K - $74K18.8%

$75K - $99K10.0% $100K - $149K

14.2%

$150K - $199K7.4%

$200K+5.8%

2012 Population by Race

White Black Am. Ind. Asian Pacific Other Two+

Perc

ent

50

45

40

35

30

25

20

15

10

5

0

2012 Percent Hispanic Origin: 39.3%

June 27, 2013

©2013 Esri Page 2 of 2

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017.

ComparablesSan Jose Retail Showroom1033 S. Bascom AvenueSan Jose, CA

Recent Sales ComparablesSan Jose Retail Showroom



S San Jose Retail Showroom1033 S. Bascom AvenueSan Jose, CA

Sale Price $1,550,000

Tenants 1

Price/Tenant $1,550,000

Price/SqFt $256.24

Cap Rate -0.13%

Year Built 1973

NOTESVacant building, with 4 warehouse bays, and approx. 1,300 S.F. front showroom space. Brick building, with ample parking, and good street exposure for retail.

1 Precision Auto Tune1365 W. San CarlosSan Jose, CA 95126

Sale Price $800,000

Tenants 1

Price/Tenant $800,000

Price/SqFt $227.53

Cap Rate N/A

Year Built N/ASale Date 8/8/2012

Major Tenants

Precision Auto Tune

NOTESSold as a leased investment.

2 Goodyear Tires1800 WinchesterCampbell, CA 95008

Sale Price $945,000

Tenants 1


Price/SqFt $216.35

Cap Rate N/A

Year Built 1900Sale Date 2/25/2013

Major Tenants

Good Year Tires

NOTESSold as all cash sale, with 6 years remaining on National Tenant lease.

page 16 of 19




3 America's Tire980 E. Hamilton AveCampbell, CA 95008


Tenants 1


Price/SqFt $229.52

Cap Rate N/A


Major Tenants

America's Tire

NOTESSold as a leased investment. Local tenant.

4 970 S. Bacom showroom970 S. Bascom Ave.San Jose, CA 95128


Tenants 1


Price/SqFt $279.83

Cap Rate N/A


Major Tenants

Cal Febcing Academy

NOTESSold as a leased investment. Local tenant.

5 O'Reilly Auto Parts18506 Prospect RdSan Jose, CA 95129


Tenants 1


Price/SqFt $250.32

Cap Rate 7.16%


Major Tenants

O'Reilly Auto Parts

NOTESSold as leased investment. Corp. tenant in place. Sold as 1031 exchange up-leg.

page 17 of 19




6 1492 Almaden Strip1492 AlmadenSanJose, CA 95125


Tenants 5


Price/SqFt $293.67

Cap Rate 6.8%


Major Tenants

Bella Light Salon

EZ Coin Laundromat

KN Mini Market

Los Mancilla Taqueria

NOTESAll cash purchase. Legal issues. Retail Center on Highly Traveled Almaden Road. Long-Term Tenants with Hard-to-Move Improvements. High population area NewConstruction - Built 1990 Low Average Rents ($1.53 psf)

page 18 of 19




S 1033 S. Bascom Avenue, San Jose, CA ($1,550,000)

1 1365 W. San Carlos, San Jose, CA 95126 ($800,000)

2 1800 Winchester, Campbell, CA 95008 ($945,000)

3 980 E. Hamilton Ave, Campbell, CA 95008 ($1,275,000)

4 970 S. Bascom Ave., San Jose, CA 95128 ($3,100,000)

5 18506 Prospect Rd, San Jose, CA 95129 ($3,100,000)

6 1492 Almaden, SanJose, CA 95125 ($1,720,000)

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san jose retail showroom 1033 s. bascom avenue san jose, … · san jose retail showroom 1033 s....

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