100% OCCUPIED MULTI-TENANT RETAIL CENTER - PACHECOPASS - LoopNet
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100% OCCUPIED MULTI-TENANT RETAIL CENTER
890 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
16 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
$6,795,775 $385,094 5.67%
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 11,835 SF multi-tenant retail investment
leased to AAA, L&L Hawaiian BBQ and more. Positioned next to
Walmart Supercenter and in front of Costco this offering provides
investors an opportunity to acquire a proven retail asset with a diverse
tenant mix (restaurant, dental, education, and insurance) with NNN
leases and minimal landlord obligations.
PARCEL DETAILS
Parcel 841-18-075
Bulding Size 11,835 SF
Land Size 3.94 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
3% Annual Increases 1 - 10 Year Option
Dany's NNN 1,875 7/1/2012 11/30/2022 $63,225 $33.72 (Next Bump - 12/1/2019: 3% Annual Increases
Restaurant $65,250) 12/1/2022: $63,310
2 - 5 Year Options
2% Annual Increases
AAA NNN 3,810 10/1/2014 1/31/2020 $121,310 $31.84 None Each Option
2/1/2020: $126,187
2/1/2025: $139,332
L&L Hawaiian NNN 1,500 3/1/2006 2/28/2021 $66,375 $44.25 None None
BBQ
3% Annual Increases 1 - 4 Year Option
Icicles NNN 1,331 9/1/2017 2/28/2021 $51,120 $38.41 (Next Bump - 9/1/2019: 3% Annual Increases
$52,560) 3/1/2021: $44,948
Sunny Smiles NNN 1,725 4/1/2006 9/30/2021 $73,002 $42.32 None
1 - 5 Year Option
15% Increase
INCOME & EXPENSES
Dentistry
10/1/2021: $83,956 Annual Rent $405,637
Expense Reimbursements + Admin Fee $107,965
1 - 4 Year Options
Mathnasium NNN 1,594 1/1/2016 5/31/2021 $30,605 $19.20 2/1/2020: $31,752 4% Annual Increases Vacancy Factor @ 4% ($20,544)
6/1/2021: $33,028
Operating Expenses
Totals 11,835 $405,637 Taxes $59,316
Insurance $3,149
CAM $45,499
Roof & Structure Landlord
Net Operating Income $385,094
PG. 6 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 7
GILROY
PREMIUM OUTLETS
INVESTMENT HIGHLIGHTS
• 100% Occupied 11,385 SF Multi-Tenant NNN Retail Center
GILROY EAGLE RIDGE
• Diverse Tenant Mix - Restaurant, Dental, Education, and Insurance High School Golf Club SOUTH VALLEY
Middle School
• Adjacent to Walmart Supercenter and In Front of Costco GLEN VIEW
Elementary School GILROY
• Major Traffic Generators: Include Lowe’s, Costco and Walmart Supercenter Prep School
• Exceptional Location - Intersection of Hwy 101 & Hwy 152
(Pacheco Pass Hwy)
• Approximately 110,400 AADT @ Hwy 101 & Hwy 152 80,900
Vehicles Per Day
• Close Proximity to Silicon Valley (One of the Highest Priced 101 E. 6TH
S. VALLEY FWY. ST.
Housing Markets in the U.S.)
• Part of a Class “A” Regional Power Center Anchored by Costco, Lowe’s,
Walmart, Marshalls and More 29,500
Vehicles Per Day 23,600
Vehicles Per Day
• Over 53,300 Residents within a 3 Mile Radius
• Affluent Demographics - AHHI Over $100,200 within a 3 Mile Radius
Y.
• Rapid Growth - Over 17% Population Growth within a 3 Mile Radius HW
SS O AR ROYO
PA CAMIN
ECO
CH
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 PARCEL MAP APN: 841-18-075
±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
downtown San Jose in Santa Clara County.
850 – 950 Renz Lane and 7011 – 7210 Camino Arroyo
ADDRESS:
Gilroy, CA 95020
PROPERTY SIZE (SF): 194,304 SF
CA
M
APN: 841-18-061
IN
APN: 841-18-
O
ASSESSOR’S PARCEL NUMBER ±0.7 ACRES
059/061/062/070/071/072/075/077/078/079
AR
AND SITE AREA:
RO
27.41 Acres
YO
APN: 841-18-59 APN: 841-18-077
ZONING: C3 (Shopping Center Commercial) ±1.4 ACRES
±3.62 ACRES
The center has approximately 2,203 linear feet of 23,600
Vehicles Per Day
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
The American Automobile Association, more commonly Mathnasium (also Mathnasium Learning Center) is an education
known as AAA, is a federation of motor clubs throughout North America. brand and supplemental learning franchise consisting
As North America’s largest motoring and leisure of over 900 learning centers in North America, South America,
travel organization, AAA provides more than 58 Europe, the Middle East, and Asia that
million members with travel, insurance, financial, and provides instruction in mathematics to
automotive-related services. AAA has more than 1,100 students in pre-kindergarten through
offices in the U.S. and Canada and offers personal
high school. As of March 11, 2017, there
service through its network of more than 40,000 full time employees.
are 800 Mathnasium locations within the United States.
The AAA Club Alliance, Inc. is the 3rd largest of 50 individual AAA clubs
throughout the United States and Canada. AAA Club Alliance Inc, serves Icicles is an American-owned dessert cafe specializing in hand-
more than 6,000,000 members, providing automobile, travel, and insurance rolled ice cream treats. Icicles’ original cafe opened July 2016
services to in 14 states across the U.S. in San Jose, California. As of August 2018, Icicles cafes are
located in 10 locations across two states
L&L Hawaiian BBQ, or simply L&L, is a Hawaiian- (8 in northern California, and 2 in New
themed franchise restaurant chain based in Honolulu, Mexico) with a new cafe projected to
Hawaii, centered on the Hawaiian plate lunch. Today, open late 2018 in Berkley, California.
there are approximately 200 locations in Alaska, Arizona, The dessert concept originates from Thailand and is known as
Colorado,Nevada, New York, Oregon, Tennessee, Texas, stir-fried ice cream or “I-Tim-Pad” (ice pan ice cream).
Florida, Utah, Washing, and Guam.In 2002, L&L was
Sunny Smiles Denistry is an American privately-owned dental
named one of the “50 Regional Powerhouse Chains” by Nation’s Restaurant
practice specializing in family dentistry services.
News. Additionally, Restaurant Business magazine ranked L&L #15 of its 50
Top Growth Chains in the Nation in 2005. Entrepreneur Magazine has also Dany’s Restaurant is an privately-owned family-friendly
ranked L&L’s parent company, L&L Franchise, Inc. at #165 out of the top restaurant specializing in American fare.in family dentistry
500 franchises in 2005. services.
PG. 14 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 15
Industry & 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. 16 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 17
Pacheco 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. 18 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS
BEST
CENTER
BUY | GILROY, CA | PG. 19DEMOGRAPHICS 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. 20 | PACHECO PASS CENTER | GILROY, CA MATTRESS
PACHECO
FIRM
PASS
- WINGSTOP
CENTER | GILROY, CA | PG. 21INVESTMENT 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 reserved
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