the fresno bee, 1626 e st. ±219,864 sf / 14.8 prime acres ...€¦ · 1626 e street fresno,...

Fresno Chandler Executive Airport

Downtown Fresno

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Capital Markets | Investment Properties

The Fresno Bee, 1626 E St. ±219,864 sf / 14.8 prime acres near Downtown Fresno

EXECUTIVE SUMMARY ............... 03

PROPERTY OVERVIEW ............... 08

AREA OVERVIEW ....................... 11

MARKET DATA ........................... 13

Randy Getz Executive Vice President +1 916 446 8287 Lic. 00828903 [email protected]

500 Capitol Mall Suite 2400 Sacramento, CA 95814

Tony Cortopassi Director +1 559 433 3549 Lic. 01413706 [email protected]

9 River Park Place East Suite 101 Fresno, CA 93720

INVESTMENT CONTACT LOCAL MARKET CONTACT

The Fresno Bee, 1626 E Street 2

mailto:[email protected]:[email protected]

THE OFFERING

CBRE, Inc. is pleased to offer an opportunity to acquire fee simple interest in the 219,864 square foot multi-function building in Fresno, California where for decades The McClatchy Company created and published the Fresno Bee newspaper. The property occupies ±14.8 prime acres on the western edge of Fresno’s CBD near Highway 99, one of two major freeways connecting northern and southern California. The California High Speed Rail right-of-way is across G Street from the property and the proposed Fresno HSR station is within easy walking distance.

The asset is offered without a fixed asking price. Interested parties may gain access to the due diligence website after executing a standard Non-Disclosure Agreement. Expressions of interest should be submitted to Randy Getz whose contact information is included herein.

EXECUTIVE SUMMARY

(continued on next page)


Downtown Fresno

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1626 E STREET


The McClatchy Company publishes 30 newspapers in 29 markets nationwide and has for some time been consolidating its operations to maximize efficiency and reduce operating costs. The Modesto Bee and The Fresno Bee are now produced at the Sacramento Bee printing plant. Fresno personnel occupy and use only ±15,000 square feet so the current facility is an asset that can be sold and the resources deployed elsewhere. Remaining employees will be relocated at COE or shortly thereafter.

The Fresno metro area, including Clovis, has a population in excess of 600,000 people. It is the economic and cultural hub of a region that ranks as one of the United States’ most important agricultural centers, responsible for producing more than half the nation’s fresh fruits and vegetables.

THE OFFERING (continued)


PROPERTY TYPE Industrial and office

PROPERTY NAME Fresno Bee Building

ADDRESS1626 E Street Fresno, California 93786

ESTIMATED SQ. FT.Gross: 295,227Rentable: 219,864

CURRENT OCCUPANCY ±15,000 square foot

YEAR BUILT In two phases - 1977 / 1991

SITE 14.8 acres; 644,688 sf

ZONING IL – light industrial

PARKING 577 spaces

OFFERING PRICE

None. Prospective bidders are encouraged to familiarize themselves with the property and due diligence materials prior to submitting offers. Access to the property and due diligence will be available following execution of a routine Non-Disclosure Agreement.

OFFERING SUMMARY INVESTMENT HIGHLIGHTS

• ±219,864 sq. ft. of office/industrial space

• ±14.8 prime acres on the western edge of Fresno’s CBD

• ½ block from Highway 99

• Across G Street from the proposed Fresno bullet-train station

• Ideal location for one or multiple government agencies to construct new offices

• Potential redevelopment as industrial, warehouse, food or agricultural processing/manufacturing

• Large development sites near downtown are seldom available


Source: California High-Speed Rail Authority

1626 E STREET


AREA OVERVIEW

The City of Fresno is the county seat of Fresno County. It is the sixth-largest city in California, the second largest inland city in California after Sacramento, and the 34th-largest city in the United States. Fresno is in the center of California’s San Joaquin Valley, a region that produces the majority of the country’s fresh produce. It is estimated that one out of three jobs in the Fresno area is related to agriculture, and more than 500 trucking and warehousing firms are located in the area due to agricultural production and the City’s strategic centralized location.

Fresno is approximately 220 miles northwest of Los Angeles, 170 miles southeast of Sacramento, and 185 miles southeast of San Francisco. This centralized locale makes it an excellent choice for manufacturing and distribution, due to its location within one day's drive of more than 40 million people. This is made possible by Fresno’s proximity to Highway 99 as well as Interstate 5 which runs the length of the state and connects with multiple east/west routes.

FRESNO

NMAP NOT TO SCALE


Downtown Fresno

1626 E STREET

High Speed Rail Right of Way

H ST

E ST

G ST


PROPERTY OVERVIEWThe Fresno Bee property was built in two phases in 1977 and 1991 and totals just under 300,000 sf gross (±220,000 sf rentable) on ±14.8 acres. Purpose-built for the creation, production, and distribution of a daily newspaper, the improvements consist of office, warehouse, printing and loading/distribution facilities. The property is located on the edge of Fresno’s downtown in an area surrounded by industrial and flex-type properties. The U.S. Post Office is adjacent. The site is zoned IL for light industrial and manufacturing.

Because of the multiple functions historically carried out here, the property is not laid out like a typical office or industrial property. Some of the office space has been updated over the years but some has not. The warehouse areas used for storage of raw materials and finished production do not feature large, uniform clear heights like conventional warehouses. And the printing plant portions of the property are highly specialized. All printing equipment will be removed prior to delivery.

Bock & Clark Environmental completed a phase 1 environmental site assessment in January 2016 which will be included in the available due diligence materials.


PROPERTY SUMMARY1

NAME Fresno Bee building

ADDRESS1626 E Street Fresno, California 93706-2006

COUNTY Fresno

ASSESSED VALUE (2019/2020) $12,085,679

PARCEL NUMBER 465-084-30

LAND AREA 14.8 acres (644,688 sf)

PARKING TOTAL / RATIO 577 / 2.6:1,000 sf rentable

ZONING IL-light industrial

YEAR BUILT 1977/1991

SQUARE FOOTAGES BY TYPE (ESTIMATED)

Industrial/warehouse/mfg.: ±119,864 sfOffice/administrative: ±100,000 sf

FLOORS Three + basement

CONSTRUCTION TYPE Concrete

FOUNDATION Concrete

ROOFCommercial polyurethane [details pending]

CEILING HEIGHTVaries by location. Max. 18’ at north loading area

LOADING FACILITIES 15 dock-height doors; 10 drive-in doors

ELEVATORS Three freight; one passenger

HVAC [details pending]

FIRE Fire sprinklers throughout

SECURITYSecurity cameras and key card entry system

ELECTRICAL 12,000V/3-phase

UNDERGROUND STORAGE TANKS

Two 12,000-gallon USTs with dispensers for fuel are located at the northeast corner of the building.

NON-DISCLOSURE AGREEMENT AND DUE DILIGENCE ACCESS

A website containing documents and additional information about the property has been set up. Please contact us if you would like to receive a link to the Non-Disclosure Agreement and access to the due diligence site.

1 Sources: On-site property manager; appraisal dated December 2018


SITE DESCRIPTION

The site is irregularly shaped and enjoys excellent ingress and egress with two driveways each on both E Street and G Street. Frontage totals 1,031 feet along E Street and 710 feet on G Street. Approximately 577 parking spaces are provided in a paved lot located primarily in the southeast portion of the site.

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AREA OVERVIEWThe City of Fresno is the county seat of Fresno County. It is the sixth-largest city in California, the second largest inland city in California after Sacramento, and the 34th-largest city in the United States. Fresno is in the center of California’s San Joaquin Valley, a region that produces the majority of the country’s fresh produce.

The City is without question the economic hub of the region, with the unincorporated rural areas surrounding Fresno engaged in large-scale agricultural production. In fact, agriculture directly employs 20 percent of the workforce and provides more than $3.5 billion to the local economy. It is estimated that one in three jobs in the Fresno area is in some way related to agriculture, and more than 500 trucking and warehousing firms are located in the area due to agricultural production and the City’s strategic centralized location. Two railways operate intermodal facilities in the county and UPS, FedEx, and DHL all operate out of Fresno-Yosemite International Airport.

A majority of America’s produce is grown here and Fresno is the number one agricultural county in the United States. More than 7,500 farmers grow 250 types of crops on 1 million acres of some of the world’s most productive farmland. Major crops include grapes, cotton, cattle, tomatoes, milk, plums, turkeys, oranges, peaches, and nectarines. Not surprisingly a large food processing industry has developed around all this farming activity; a large number of canning, curing, drying, and freezing plants are located in the area.

Fresno City Hall

Old Fresno Water Tower

Downtown Fresno

(continued on next page)


FRESNO’S TOP EMPLOYERS

# EMPLOYER# OF

EMPLOYEES

1 Fresno Unified School District 11,5002 County of Fresno 6,5003 Community Medical Centers 5,8364 City of Fresno 3,7805 Clovis Unified School District 3,3706 Saint Agnes Medical Center 2,8127 Kaiser Permanente 2,6968 Ruiz Food Products 2,5009 California State University 2,334

10 Pelco 2,15011 Coalinga State Hospital 1,92512 Clovis Community Medical Center 1,66713 State Center Community College District 1,63014 Alorica 1,30015 Quinn Group Inc 1,17816 Foster Farms 1,10017 AT&T 1,00018 Cargill Meat Solutions 99919 Zacky Farms 97520 Aetna 95021 VA Central CA Health Care System 89722 Fresno County Office of Education 759

Sources: fresnoedc.com; Fresno County; Business Journal

Fresno is strategically centralized within the state, approximately 220 miles northwest of Los Angeles, 170 miles southeast of Sacramento, and 185 miles southeast of San Francisco. Fresno is a perfect location for manufacturing and distribution by virtue of being within one day’s drive of more than 40 million people. This is made possible by Fresno’s proximity to Highway 99 as well as Interstate 5 which runs the length of the state and connects with multiple east/west routes. Manufacturing firms in the region produce farm machinery, metal products, transportation equipment, stone, clay, and glass products, lumber and wood products, furniture and fixtures, and electrical equipment.2

2 City-data.com

AREA OVERVIEW (continued)

FRESNO

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MARKET DATA

New construction:496,000 SF

Average rent:$6.48 psf, trending ↑

Inventory:84.8 million SF

FRESNO

INDUSTRIAL

PROPERTIES

Average cap rate:

6.4%, trending →Average price:

$75 psf, trending ↑

Vacancy rate:3.4%,

trending →


SALE COMPARABLES: CENTRAL VALLEY INDUSTRIAL

1626 E STREET FRESNO

3400 FINCH RD. MODESTO

705 N. CARLTON AVE.

STOCKTON

4315 E. CHILDS AVE.

MERCED

2624 E. EDGAR AVE.

FRESNO

2100 Q STREET

SACRAMENTO

1325 H STREET MODESTO

DATE SOLD Subject 7/10/19 11/30/18 11/2/18 9/26/18 9/7/17 12/6/16

SALE TYPE TBD Investment Owner-user Owner-user Owner-user Investment- sale-leaseback Owner-user

PURCHASER TBD Endsley Properties ModestoKevin & May Xu

HaywardFagundes Dairy

MercedCandor-Ags, Inc.

FresnoShopoff Realty

IrvineStanislaus County

Office of Education

PROPERTY TYPE Mfg./Warehouse/Office Warehouse Warehouse Warehouse WarehouseNewspaper plant/

offices

Newspaper plant/offices former Modesto Bee

ZONING IL - light industrial M I-G I-H M-3 C-2-SP unknown

YEAR BUILT 1977/1991 1980 unreported 1991 1989 1952 1986

PCT. OFFICE 45% 25% 16% 3% 5% 45% 50%

PRICE TBD $11,000,000 $3,398,000 $8,750,000 $10,500,000 $44,750,000 $6,895,000

SIZE 219,864 241,831 62,224 168,150 233,840 409,720 154,000

PRICE/SF - $45.49 $54.61 $52.04 $44.90 $109.22 $44.77

1 2 3 4 5 6


MAP: SALE COMPARABLES: CENTRAL VALLEY INDUSTRIAL

1

2

3

4

5

6

MAP PROPERTY

Subject - 1626 E St., Fresno

1 3400 Finch Rd., Modesto

2 705 N. Carlton Ave., Stockton

3 4315 E. Childs Ave., Merced

4 2624 E. Edgar Ave., Fresno

5 2100 Q St., Sacramento

6 1325 H St., Modesto

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AFFILIATED BUSINESS DISCLOSURE

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

COPYRIGHT NOTICE

© 2020 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. 20122203-349536


Randy Getz Executive Vice President +1 916 446 8287 Lic. 00828903 [email protected]

Tony Cortopassi Director +1 559 433 3549 Lic. 01413706 [email protected]

INVESTMENT CONTACT LOCAL MARKET CONTACT

500 Capitol Mall Suite 2400 Sacramento, CA 95814

9 River Park Place East Suite 101 Fresno, CA 93720

The Fresno Bee, 1626 E Street
mailto:[email protected]:[email protected]

the fresno bee, 1626 e st. ±219,864 sf / 14.8 prime acres ...€¦ · 1626 e street fresno,...

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