MULTI-TENANT NNN RETAIL CENTER - 890 Renz Lane, Gilroy, CA 95020 - PACHECOPASS - LoopNet
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MULTI-TENANT
NNN 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
18 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
$9,051,900 $525,873 5.81%
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 14,821 SF multi-tenant retail investment
leased to national tenants such as GameStop, Subway, Sprint, Sport
Clips and more. Located directly adjacent to Best Buy and in front of
Lowe’s at the entrance of the shopping center, this offering provides
investors a unique opportunity to acquire a proven multi-tenant retail
location, with minimal landlord obligations occupied by strong national
credit tenants on NNN leases.
PARCEL DETAILS
Parcel 841-18-071
Bulding Size 14,821 SF
Land Size 2.39 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
Pho Thanh An NNN 2,000 12/1/2004 12/31/2019 $87,160 $43.58 None None
Jamba Juice NNN 1,500 1/1/2004 1/31/2024 $54,540 $36.36 None None
Le Chic NNN 1,443 4/1/2005 3/31/2020 $59,163 $41.00 None None
2% Annual Increases
Tacqueria
NNN 2,528 11/1/2006 2/28/2022 $120,687 $47.74 (Next Bump - 3/1/2020: None
Cancun
$124,302)
Sprint NNN 1,500 12/1/2003 12/31/2019 $63,315 $42.21 None None
1 - 5 Year Option
GameStop NNN 1,500 11/1/2003 1/31/2021 $64,665 $43.11 10/1/2019: $106,964 11% Increase
2/1/2021: $119,119
Vacant 1,500 INCOME & EXPENSES
2 - 5 Year Options Annual Rent $539,782
15% Increases Expense Reimbursements + Admin Fee $128,348
Sport Clips NNN 1,200 9/1/2014 12/31/2019 $36,000 $30.00 None Each Option
1/1/2020: $41,400
1/1/2025: $47,616
Operating Expenses
3% Annual Increases 1 - 5 Year Option
Blazin Bagels NNN 1,650 12/1/2010 10/31/2021 $54,252 $32.88 (Next Bump - 11/1/2019: 3% Annual Increases Taxes $68,383
$55,886) 11/1/2021: $59,301 Insurance $4,490
Totals 14,821 $539,782 CAM $69,384
Roof & Structure Landlord
Net Operating Income $525,873
PG. 6 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 7
GILROY
PREMIUM OUTLETS
INVESTMENT HIGHLIGHTS
• 90% Occupied 14,821 SF Multi-Tenant NNN Retail Center
GILROY EAGLE RIDGE
• National Tenants Include: GameStop, Sprint, Subway, Sport Clips High School Golf Club SOUTH VALLEY
Middle School
• Positioned at the Entrance of the Pacheco Pass Shopping Center GLEN VIEW
Elementary School
• Excellent Visibility & Access - Outparcel to Lowe’s & Adjacent to Best Buy GILROY
Prep School
• Major Traffic Generators: Include Lowe’s, Costco and Walmart Supercenter
• Exceptional Location - Intersection of Hwy 101 & Hwy 152
80,900
(Pacheco Pass Hwy) Vehicles Per Day
• Approximately 110,400 AADT @ Hwy 101 & Hwy 152 101 E. 6TH
S. VALLEY FWY. ST.
• Close Proximity to Silicon Valley (One of the Highest Priced
Housing Markets in the U.S.)
• Part of a Class “A” Regional Power Center Anchored by Costco, Lowe’s, 29,500
Vehicles Per Day
Walmart, Marshalls and More
• Over 53,300 Residents within a 3 Mile Radius
Y. 23,600
HW
Vehicles Per Day
• Affluent Demographics - AHHI Over $100,200 within a 3 Mile Radius
SS
PA ARROYO
• Rapid Growth - Over 17% Population Growth within a 3 Mile Radius CAMINO
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 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
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
Jamba, Inc. and its wholly owned subsidiary Jamba Juice GameStop Corp. (known simply as GameStop) is an American
Company form an American restaurant retailer headquartered video game, consumer electronics, and wireless services
in Frisco, Texas and previously headquartered in retailer. The company is headquartered
Emeryville, California. Jamba Juice was founded on in Grapevine, Texas, United States,
March 31, 1990 by Kirk Perron, an avid cyclist and a suburb of Dallas, and operates
healthy-lifestyle advocate. Currently, the company 7,117 retail stores throughout the
has over 885 locations operating in 26 U.S. states, United States, Canada, Australia, New
as well as The Philippines, Mexico, Taiwan, South Korea, Thailand and Zealand, and Europe. The company’s retail stores primarily
the United Arab Emirates. There are approximately 68 company-owned operate under the GameStop, EB Games, ThinkGeek, and
locations and 752 franchiseoperated stores in the United States, in addition Micromania brands. In addition to retail stores, GameStop also
to the 65 international stores. In December 2008, Jamba began a strategic owns Game Informer, a video game magazine; Simply Mac, an
move to transform the company from a smoothie shop to include a line of Apple products reseller; and Spring Mobile, an AT&T wireless
wraps, sandwiches, salads, and flatbreads. In 2014 Jamba Juice launched reseller.
its expanded Fresh Juice menu, and began making juices blends to order
with fresh ingredients such as kale, beets and ginger.
Jamba Inc. (DBA Jamba Juice)
Type Public
Traded as NYSE: JMBA Game Stop Corp (“Game Stop”)
Founded 1990 Type Public
Headquarters Frisco, TX Traded as NYSE: GME
Number of locations +/- 885 Founded 1984
Revenue $70.926 Million (FY2017) Headquarters Grapevine, TX
Website www.jambajuice.com Number of locations +/- 7,276 (US)
Website www.gamestop.com
PG. 14 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 15
TENANT OVERVIEWS TENANT OVERVIEWS
Sprint Corporation is an American telecommunications company that Sport Clips Haircuts is an American privately held sports- Subway is an American privately held fast food restaurant Phò Thanh An is a family-owned restaurant specializing in authentic
provides internet and wireless themed haircare franchise. Sport Clips has more than 1,700 franchise that primarily sells submarine sandwiches (subs) and Vietnamese cuisine. Specialty dishes include stews, fish cakes, egg rolls
services. As of October 2017, it is ranked the fourth- locations in the US and Canada. salads. Subway is one of the fastest- and many varieties of Phò, the popular Vietnamese street dish consisting
largest mobile network operator in the United States Originally designed to target men and growing franchises in the world and, of broth, rice noodles called bánh phò, herbs, and meat, primarily made
and serves 54 million customers. The company also boys in a previously underserved as of June 2017, has approximately with either beef or chicken. Phò Thanh An consistently ranks well on Yelp
offers wireless voice, messaging, and broadband market in a multibillion-dollar industry, 45,000 stores located in more than for their quality of food and service.
services through its various subsidiaries under the Sport Clips refocused their business 100 countries. More than half of the
Le Chic Nails is a privately-owned salon specializing in manicures,
Boost Mobile, Virgin Mobile, and Assurance Wireless brands, and wholesale plan and now caters to families by providing hassle-free stores are located in the United States. It is the largest single-
pedicures and hair removal.
access to its wireless networks to mobile virtual network operators. hairstyling in a unique, sports-themed environment. In brand restaurant chain and the largest restaurant operator in
In July 2013, a majority of the company was purchased by Japanese 2017 and 2018, Sport Clips was ranked within the Top 10 in the world. Tacqueria Cancun is a privately-owned restaurant specializing in authentic
telecommunications company SoftBank Group Corp., although the remaining Entrepreneur Magazine’s annual “Franchise 500.” Mexican cuisine. Specialty dishes include carne asada tacos, chile verde
shares of the company continue to trade on the New York Stock Exchange. burritos and shrimp cocktail. In addition to their menu offerings, Taccqueria
The company remains one of the largest long-distance providers in the Cancun has a fresh salsa & chips bar and makes their own horchata drinks
United States. & tamarindo waters for refreshment.
Blazin’ Bagelz is a privately-owned restaurant specializing in bagels and
Sprint Corporation
breakfast-related foods. The café setting and
Type Public extensive expresso and coffee bar invites customers
Traded as NYSE: S to enjoy their offerings onsite. Blazin’ Bagelz
Parent SoftBank Group Corp. (84%) consistently garners high reviews on Yelp for their
Sport Clips Inc. (DBA Sport Clips) Subway IP Inc. (DBA Subway)
quality of food and service.
Founded 1899 Type Private Type Private
Headquarters Overland Park, KS Industry Personal Care Services (Hair Salon) Industry Food Service (Fast Food)
Number of locations +/- 4,500 Founded 1993 (Franchised in 1995) Founded 1965
Number of Employees +/- 30,000 Headquarters Georgetown, TX Headquarters Milford, CT
Revenue $32.18 Billion (FY2016) Number of locations +/- 1,700 (United States & Canada) Number of locations +/- 44,834 (112 Countries)
Website www.sprint.com Website www.sportclips.com Website www.subway.com
PG. 16 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 16 PACHECO PASS CENTER | GILROY, CA | PG. 17
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. 18 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS CENTER | GILROY, CA | PG. 19Pacheco 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. 20 | PACHECO PASS CENTER | GILROY, CA PACHECO PASS
BEST
CENTER
BUY | GILROY, CA | PG. 21DEMOGRAPHICS 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. 22 | PACHECO PASS CENTER | GILROY, CA MATTRESS
PACHECO
FIRM
PASS
- WINGSTOP
CENTER | GILROY, CA | PG. 23INVESTMENT 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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