100% OCCUPIED MULTI-TENANT RETAIL CENTER - PACHECOPASS - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
100% OCCUPIED MULTI-TENANT RETAIL CENTER
950 Renz Lane, Gilroy, CA 95020
PACHECOPASS
CENTER
INVESTMENT CONTACTS TABLE OF CONTENTS
ERIC CARLTON
Executive Vice President 04 Property Overview
License No. 01809955 Offering Summary
949.724.5561 Investment Highlights
eric.carlton@colliers.com
JEREME SNYDER 10 Property Overview
Executive Vice President Site Plan
License No. 01360233
Tenant Overview
949.724.5552
jereme.snyder@colliers.com
JOHN MACHADO
20 Location Overview
Executive Vice President
Gilroy, CA
License No. 00876747 Retail Market
408.282.3862 Aerial
john.machado@colliers.com Demographics
PACHECOPASS
CENTER
FINANCIAL SUMMARY
$20,950,000 $1,048,062 5.00%
LIST PRICE NET OPERATING CAP RATE
INCOME
PROPERTY OVERVIEW
We are pleased to offer to qualified investors an opportunity to purchase
fee simple, a 100% occupied 63,148 SF multi-tenant retail investment
leased to national tenants such as Home Goods, Old Navy, Kirklands
and more as well as a 4,489 SF two tenant freestanding pad building
leased to Starbucks and Sleep Number. Positioned near the entrance of
Pacheco Pass Plaza this offering provides investors a rare opportunity
to acquire a best-in-class shopping center as well as a freestanding
outparcel building with excellent visibility, minimal landlord obligations
and occupied by strong national credit tenants.
PARCEL DETAILS
Parcel 841-18-079
Bulding Size 67,637 SF
Land Size 7.63 Acres
PG. 4 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 5
RENT ROLL
Lease Lease Lease Current Annual Rental Option
Tenant SF
Type Start Expiration Rent Rent PSF Adjustments Periods
2 - 5 Year Options
10% Increases
None
Ulta Salon NNN 10,493 11/1/2012 2/29/2024 $225,075 $21.45 Each Option
3/1/2024: $247,635
3/1/2029: $272,398
1 - 5 Year Options
3% Annual Increases
Max Muscle NNN 1,616 11/1/2014 3/31/2020 $43,648 $27.01 None
Each Option
4/1/2020: $44,973
2 - 5 Year Options
1% Annual Increases
1% Annual Increases
Kirklands Gross 7,000 7/1/2012 1/31/2023 $182,840 $26.12 (Next Bump - 2/1/2020:
2/1/2023: $202,860
$184,800)
2/1/2028: $222,040
2 - 3 Year Options
9% Increases
Old Navy Gross 18,800 9/1/2005 3/31/2020 $286,700 $15.25 None Each Option
4/1/2020: $312,456
4/1/2023: $340,656
2 - 5 Year Options
$0.50/SF Increases INCOME & EXPENSES
None Each Option Annual Rent $1,261,082
HomeGoods NNN 25,239 9/1/2005 9/30/2023 $328,107 $13.00
10/1/2023: $328,107
1/1/2025: $47,616 Expense Reimbursements + Admin Fee $232,552
10/1/2028: $353,346
1 - 5 Year Option Vacancy Factor @ 3% ($37,832)
Sleep Number NNN 2,431 10/1/2016 9/30/2021 $102,102 $42.00 10/1/2019: $106,964 11% Increase
10/1/2021: $119,119 Operating Expenses
4 - 5 Year Options Taxes $168,507
10% Increases
Each Option Insurance $18,651
Starbucks NNN 2,058 9/1/2016 8/31/2026 $92,610 $45.00 9/1/2021: $101,871 9/1/2026: $112,058
9/1/2031: $123,581 CAM $220,582
9/1/2036: $135,581
9/1/2041: $149,143 Roof & Structure Landlord
Totals 67,637 $1,261,082 Net Operating Income $1,048,062
PG. 6 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 7
GILROY
PREMIUM OUTLETS
INVESTMENT HIGHLIGHTS
• 100% Occupied 63,148 SF Multi-Tenant NNN Retail Center
GILROY EAGLE RIDGE
• Anchored by Home Goods (TJ Maxx) - Rated “A+” by S&P’s
High School Golf Club SOUTH VALLEY
Investment Grade Credit Middle School
GLEN VIEW
• Leased to National Credit Tenants - Home Goods, Old Navy, Starbucks Elementary School
GILROY
• 4,489 SF Two-Tenant Outparcel Building - Occupied by Starbucks & Sleep Number Prep School
• Ability to Reduce Basis by Spinning Off Starbucks/Sleep Number
• Positioned at the Entrance of the Pacheco Pass Shopping Center
• Major Traffic Generators: Include Lowe’s, Costco and Walmart Supercenter 80,900
Vehicles Per Day
• Exceptional Location - Intersection of Hwy 101 & Hwy 152 101 E. 6TH
S. VALLEY FWY. ST.
(Pacheco Pass Hwy)
• Approximately 110,400 AADT @ Hwy 101 & Hwy 152
• Close Proximity to Silicon Valley (One of the Highest Priced
29,500
Housing Markets in the U.S.) Vehicles Per Day 23,600
Vehicles Per Day
• Part of a Class “A” Regional Power Center Anchored by Costco, Lowe’s,
Walmart, Marshalls and More Y.
• Over 53,300 Residents within a 3 Mile Radius HW
SS O AR ROYO
• Affluent Demographics - AHHI Over $100,200 within a 3 Mile Radius PA CAMIN
ECO
• Rapid Growth - Over 17% Population Growth within a 3 Mile Radius H
C
PA
Z LN
REN
PG. 8 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 9
PACHECOPASS
CENTER
NAP
Mathnasium
Sunny Smiles Dentistry
Icicles
Hawaiian BBQ
Danny’s Restaurant
Taqueria
Cancun
CAMINO ARROYO 23,600 VPD
Pho Thanh
An
Le Chic
PD
0V
RE
NZ
,50
. 29
LA
NE
WY
SH
AS
OP
NAP
HEC
NAP
PAC
US HWY 1
01 80,900
PG. 10 | PACHECO PASS CENTER | GILROY, CA VPD PACHECO PASS CENTER | GILROY, CA | PG. 11
PACHECO PASS CENTER DESCRIPTION APN: 841-18-075 PARCEL MAP
±3.94 ACRES
Pacheco Pass I & II is located in the north-east
quadrant of US Highway 101 and Pacheco Pass
LOCATION: Highway (152) on Camino Arroyo and Renz Lane
in Gilroy, California, approximately 30 miles east of 23,600
downtown San Jose in Santa Clara County. Vehicles Per Day
850 – 950 Renz Lane and 7011 – 7210 Camino Arroyo
ADDRESS:
Gilroy, CA 95020
CA
PROPERTY SIZE (SF): 194,304 SF
MI
NO
APN: 841-18-061
APN: 841-18-
AR
ASSESSOR’S PARCEL NUMBER ±0.7 ACRES
059/061/062/070/071/072/075/077/078/079
RO
AND SITE AREA:
YO
27.41 Acres
APN: 841-18-59 APN: 841-18-077
ZONING: C3 (Shopping Center Commercial)
±3.62 ACRES ±1.4 ACRES
The center has approximately 2,203 linear feet of
FRONTAGE: frontage along Camino Arroyo Drive and approximately APN: 841-18-078
887 linear feet along Pacheco Pass. ±1.84 ACRES APN: 841-18-079
80,900 APN: 841-18-062 ±7.63 ACRES
Phase I: 2003 & 2004 Vehicles Per Day
YEAR BUILT: ±1.03 ACRES
Phase II: 2004 & 2005
Approximately 23,600 cars daily on Camino Arroyo
S. V
TRAFFIC COUNTS: Drive, 28,500 cars on Pacheco Pass and 80,900 cars
per day on US Highway 101. APN: 841-18-071
ALL
±2.39 ACRES
EY
There are thirteen entry points to the property. There
ACCESS: are eight access points along Camino Arroyo and five
F
WY
along Renz Lane
.
APN: 841-18-070
The center provides striped surface parking for ±2.9 ACRES
PARKING: approximately 1,130 vehicles including 43 disabled 101
accessible for a ratio of 5.8/1,000. APN: 841-18-072 29,500
Vehicles Per Day
±1.33 ACRES
PACHECO PASS HWY.
PG. 12 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS
BEST
CENTER
BUY | GILROY, CA | PG. 13
TENANT OVERVIEWS
Starbucks Inc. (NASDAQ: SBUX) Ulta Beauty (NASDAQ: ULTA) is the largest beauty retailer
Starbucks Corporation, together with its subsidiaries, in the United States and the premier beauty destination in the
operates as a roaster, marketer, and retailer of United States and the premier beauty destination for cosmetics,
specialty coffee worldwide. Its stores offer coffee fragrance, skin care products, hair care products and salon
and tea beverages, roasted whole bean and ground services. The Company offers more than 20,000 products from
coffees, single-serve and ready-to-drink coffee and approximately 500 well-established
tea products, and food and snacks; and various food and emerging beauty brands across all
products, such as pastries, breakfast sandwiches, and lunch items. As of categories and price points, including
July 26, 2018, the company operated 28,720 stores across 75 countries. Ulta Beauty’s own private label. As of
Starbucks Corporation was founded in 1971 and is based in Seattle, October 28, 2017, Ulta Beauty operates
Washington. 1,058 retail stores across 48 states and the District of Columbia
and also distributes is products through its website.
Sleep Number Corporation is a U.S.-based manufacturing company
that is the exclusive manufacturer, marketer, retailer and servicer of the
revolutionary Sleep Number bed. Since its founding, Sleep Number has been
a pioneer in the mattress industry, most notably in biometric sleep tracking
and adjustability. Sleep Number currently operates 550 locations
and employs 3,800 people across
the United States. Over the past five
years, Sleep Number Corporation’s
investments have proceeded to
differentiate its brand and strengthen its competitive advantages: proprietary
innovations that provide meaningful sleep benefits for its customers; ongoing
customer relationships that are enabled by a direct-to-consumer business
model.
PG. 14 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 15
TENANT OVERVIEWS
HomeGoods is the leading off-price retailer of home fashions in the U.S. It Old Navy is an American clothing and accessories retailing
offers an array of home basics, giftware, accent furniture, lamps, rugs, wall company owned by American multinational corporation Gap Inc.
It has corporate operations in the Mission Bay neighborhood
décor, seasonal items, decorative accessories from around the world, and
of San Francisco. The largest of the Old Navy stores are its
other merchandise. Stores offer an assortment flagship stores, located in New York
of brand name and designer merchandise at City, Seattle, Chicago, San Francisco,
prices generally 20% to 60% below department and Mexico City. Old Navy is known
for their signature denim wall of styles
and specialty store regular prices on comparable
that never change. The styles are super
merchandise. HomeGoods falls under the banner of The TJX Companies, Inc.
skinny, skinny, original, and boot-cut, and are available in four
(NYSE: TJX; S&P: A+) which also operates stores under TJ Maxx, Marshalls, different washes. Most stroes are separated into seven different
Winners, HomeSense, and Sierra Trading Post. The TJX Companies is one divisions: women’s, men’s, girls, toddler girl, boys, toddler boys,
and baby. The company was founded in 1994 and there are
of the largest in the world, ranking #87 on Fortune 500 (2017). There are
current ly 1,100 locations
currently 660 HomeGoods locations throughout the United States.
throughout the United States.
PG. 16 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 17
TENANT OVERVIEWS
Kirkland’s Inc. is a U.S. specialty home décor retailer chain. Founded in Max Muscle, established in 1990, is the premier franchise
1966 in Jackson, TN, the company has been selling home decor, specializing specializing in Sports Nutrition. Max Muscle offers a diverse and
integrated product mix of nutritional supplements, fashionable
in furnishings, accessories and gifts for over 50 years. Kirkland’s Inc.
athletic apparel and magazine publishing that targets a broad
offers a broad selection of distinctive merchandise ncluding wall decor,
consumer base concerned with fitness
textiles, lamps, furniture, artificial floral products,
and health. Founded by athletes
decorative accessories and seasonal items. This committed to living a healthy lifestyle
combination of ever changing merchandise, value that exercise and nutrition provides. Max
pricing, and a stimulating Muscle has over 100 franchise locations
online and in-store experience has led to their emergence as a leader in operating across the United States with a projected 750 new
franchises in the next 5 years. Max Muscle began its nationwide
home décor and has enabled them to develop a strong customer base.
expansion in 2004 and has recently added many new store
Kirkland has 409 locations in 36 states, as well as an e-Commerce enabled
locations and has added a larger regional franchise offering to
website, and is continuing to grow, with plans to open more stores in the
qualified, business oriented individuals. Max Muscle has created
upcoming year. Kirkland’s had a 2016 annual sales revenue of $549 million. a new brand image along with a dynamic new store design to
give customers a truly one of a kind in-store experience.
PG. 18 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 19Industry & Economy
Historically, Gilroy’s economy has been based in agricultural products and
processing. Over the years, prunes, tomatoes, flowers, onions and, of course,
garlic, have contributed to the economic health of the agricultural industries. Food
LOCATION OVERVIEW processing centers have also established themselves in Gilroy, and government
Gilroy is centrally located within a short driving distance of Monterey Bay, Santa centers also employ many local residents. The Outlets at Gilroy, a five-phase retail
Cruz, the San Joaquin Valley, and the San Francisco Bay Area. Gilroy is situated complex, draws shoppers from all over the Bay Area and Central Coast regions.
in South Santa Clara County at the crossing of U.S. Highway 101 and State
Highway 152. 150 MILES • Projected job growth in Gilroy is expected to average between 0.8 and 1.6
percent annually over the next decade. Much of this job growth is expected to
The city is known for its peaceful residential environment, its award-winning
11 MILES occur in retail, transportation, construction, hospitality, information, and health
parks, golf course and recreation programs, and for its urban forest, for which
care.
the city has won Tree City USA awards annually since 1979. 88 MILES
• Gilroy’s proximity to Silicon Valley makes it an attractive location for operations
80 MILES
Population Trends looking for lower cost locations for expansion.
Gilroy is a growing community with a population of about 51,544.
25 MILES • Given the employment indicators and Gilroy’s worker profile, target industries
• Between 2000 and 2010, Gilroy’s population increased by 15 percent. potentially include wholesale/distribution; food manufacturing; sheet metal
Following Dublin with a 35 percent population increase, Gilroy was the fastest manufacturing; machine shops; communications equipment manufacturing; other
growing city among the comparison cities and the fastest among all cities in electrical equipment and component manufacturing; professional, scientific and
Santa Clara County. The trend continued between 2010 and 2013, with Gilroy technical services; and health services.
adding about 2,700 new residents.
Education
• Between 2010 and 2013, Gilroy’s population continued to accelerate, There are 15 public schools in the Gilroy Unified School District. Enrollment in
the district is about 11,400 students. The School Board, which sets policy, adopts
increasing close to 6 percent over three years, to a current total of 51,544.
the budget and hires personnel, is made up of seven members elected to 4-year
Compared to the other cities in the list, Gilroy was still the second fastest terms. The district has about 1,100 employees. Five private schools serve an
growing city after Dublin. additional 400 students, and approximately 4,500 students attend Gavilan College.
PG. 20 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 21Pacheco Pass
Shopping Center
RETAIL MARKET RETAIL MARKET
Gilroy Outlets
• Gilroy currently has a net capture of regional sales in all retail
D
• Much of Gilroy’s retail support includes regional spending from
2,565 VP
residents living in surrounding communities, overnight visitors and categories except for florists, nurseries, second hand stores,
day travelers. specialty food stores, and full-service restaurants (including both
EY RD
restaurants with full bar service, and restaurant sales from hotels)
LEAVESL
• The strongest performing categories in Gilroy are apparel stores, .
PD
0V
service stations, eating places, and general merchandise stores. • With full-service restaurants, the leakage is not especially large,
,00
and fast-food and limited-service restaurants show a large net
23
RROYO
CAMINO A
• Geographically, Premium Outlets, Gilroy Crossing, and Pacheco capture of sales. However, with Gilroy’s large net capture in other SAN YSIDRO AVE 6,593 VPD
PACHECO PASS HWY
retail categories, full-service restaurants could be a potential area
6,92 TH ST
D
Pass Center alone account for half of Gilroy’s total taxable sales.
2 VP
of focus. ARROYO C
E6
IRCLE 4,913 VPD
80,900 VPD
• The Premium Outlets represent Gilroy’s largest taxable sales
generator with nearly $287 million in 2012. The outlet center • The outlets in particular are a significant visitor attraction, while
also showed strong growth, even during the recession and now Gilroy Crossing and Pacheco Pass Center function as highway Gilroy Crossing
accounts for 23.6 percent of the citywide taxable sales. commercial centers for travelers heading along CA-152.
South Valley
Plaza
MONTERE
Y RD
PG. 22 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS
BEST
CENTER
BUY | GILROY, CA | PG. 23DEMOGRAPHICS POPULATION DENSITY DEMOGRAPHICS HOUSEHOLD INCOME
GILROY, CA 53,374+ RESIDENTS GILROY, CA $100,295 AHHI
POPULATION 1-MILE 3-MILE 5-MILE WITHIN 3-MILE RADIUS INCOME 2019 1-MILE 3-MILE 5-MILE WITHIN 3-MILE RADIUS
Estimated Population (2019) 6,473 53,374 66,386 Avg. Household Income $72,153 $100,295 $113,035
Projected Population (2024) 6,226 51,197 63,877 Median Household Income $52,747 $78,598 $89,822
HOUSEHOLDS 1-MILE 3-MILE 5-MILE BUSINESS FACTS 2019 1-MILE 3-MILE 5-MILE
Estimated Households (2019) 1,565 15,055 19,047 Total # of Businesses 426 1,948 2,119
Projected Households (2024) 1,636 15,760 19,861 Total # of Employees 5,874 23,031 24,614
PG. 24 | PACHECO PASS CENTER | GILROY, CA MATTRESS
PACHECO
FIRM
PASS
- WINGSTOP
CENTER | GILROY, CA | PG. 25INVESTMENT CONTACTS
This Offering Memorandum contains select information pertaining to Owner and Colliers International expressly reserve the right, at their ERIC CARLTON JEREME SNYDER JOHN MACHADO
the business and affairs of Pacheco Pass Center - Gilroy, CA. It has sole discretion, to reject any and all expressions of interest or offers to Executive Vice President Executive Vice President Executive Vice President
been prepared by Colliers International. This Offering Memorandum purchase the Property and to terminate discussions with any person
may not be all-inclusive or contain all of the information a prospective or entity reviewing this Offering Memorandum or making an offer License No. 01809955 License No. 01360233 License No. 00876747
purchaser may desire. The information contained in this Offering to purchase the Property unless and until a written agreement for 949.724.5561 949.724.5552 408.282.3862
Memorandum is confidential and furnished solely for the purpose of the purchase and sale of the Property has been fully executed and eric.carlton@colliers.com jereme.snyder@colliers.com john.machado@colliers.com
a review by a prospective purchaser of the Property. It is not to be delivered.
used for any other purpose or made available to any other person
without the written consent of Seller or Colliers International. The If you wish not to pursue negotiations leading to the acquisition of
material is based in part upon information supplied by the Seller and Pacheco Pass Center - Gilroy, CA or in the future you discontinue
in part upon financial information obtained from sources it deems such negotiations, then you agree to purge all materials relating to this
reliable. Owner, nor their officers, employees, or agents makes any Property including this Offering Memorandum.
representation or warranty, express or implied, as to the accuracy or A prospective purchaser’s sole and exclusive rights with respect to
completeness or this Offering Memorandum or any of its contents and this prospective transaction, the Property, or information provided
no legal liability is assumed or shall be implied with respect thereto. herein or in connection with the sale of the Property shall be limited
Prospective purchasers should make their own projections and form to those expressly provided in an executed Purchase Agreement and
their own conclusions without reliance upon the material contained shall be subject to the terms thereof. In no event shall a prospective
herein and conduct their own due diligence. purchaser have any other claims against Seller or Colliers International
By acknowledging your receipt of this Offering Memorandum from or any of their affiliates or any of their respective officers, Directors,
Colliers, you agree: shareholders, owners, employees, or agents for any damages, liability,
or causes of action relating to this solicitation process or the marketing
1. The Offering Memorandum and its contents are confidential; or sale of the Property.
2. You will hold it and treat it in the strictest of confidence; and This Offering Memorandum shall not be deemed to represent the state
of affairs of the Property or constitute an indication that there has
3. You will not, directly or indirectly, disclose or permit anyone been no change in the state of affairs of the Property since the date
else to disclose this Offering Memorandum or its contents in this Offering Memorandum.
any fashion or manner detrimental to the interest of the Seller.
Colliers International | 3 Park Plaza, Suite 1200 | Irvine, CA 92614 | USA
Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability.
This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reservedYou can also read
