MULTI TENANT FLEX BUILDINGS AVAILABLE FOR SALE 4659 & 4661 GOLDEN FOOTHILL PARKWAY 4663 GOLDEN FOOTHILL PARKWAY EL DORADO HILLS, FOR ADDITIONAL INFORMATION CONTACT Doug Barnett 916-939-9935 doug@meridiancp.net The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.
EXECUTIVE SUMMARY THE OFFERING Meridian Commercial Properties is pleased to present two opportunities for sale which can be purchased together or separately. The first is 4659 & 4661 Golden Foothill Parkway totalling 25,057 square feet with 88% occupancy and the second is 4663 Goden Foothill Parkway which totals 12,621 square feet and is 100% occupied. All three buildings are part of the Carson Creek Business Park which consists of seven buildings located off the third entryway into the El Dorado Hills Business Park offering convenient proximity to Highway 50 and nearby retail support services in the El Dorado Towns Center development. El Dorado Hills is a thriving community located 30 miles east of Sacramento. The community has experienced tremendous growth over the last decade due to unmatched outdoor recreational opportunities and exceptional public schools. Located at the heart of El Dorado Hills is the award winning master planned community of Serrano. With over 1000 acres devoted to natural open space, Serrano is the Sacramento Regions largest and most successful residential communities which also features a championship golf course designed by Robert Trent Jones, Jr. 4659-4663 GOLDEN FOOTHILL PKWY 2
EXECUTIVE SUMMARY ADDRESS: SIZE: STORIES: POWER: PARKING: GRADE LEVEL: CLEAR HEIGHT: BUILT: 4659 & 4661 Golden Foothill Parkway 12,383 SF / 12,674 SF = 25,057 SF 2 800 AMPS (each building) 24-0.96/1000 SF 4-12 x12 (each building) 18-22 2008 ADDRESS: SIZE: STORIES: POWER: PARKING: GRADE LEVEL: CLEAR HEIGHT: BUILT: 4663 Golden Foothill Parkway 12,621 SF 1 800 AMPS 41-3.25/1000 SF 8-12 x12 18-22 2014 CONSTRUCTION: TYPE II-B, C - MASONRY CONSTRUCTION: TYPE II-B, C - MASONRY PROJECTED 2018 NOI: $214,246 PROJECTED 2018 NOI: $102,656 CAP RATE 6.5 CAP RATE 6.25 SALE PRICE: $3,299,000 SALE PRICE: $1,642,000 PRICE PSF: $131.66 PRICE PSF: $130.10 TENANTS: 11 TENANTS: 3 OCCUPANCY: 88% OCCUPANCY: 100% ALL BUILDINGS ZONING: R&D FIRE SPRINKLER: Yes FLOOD ZONE: Not in flood zone OWNERSHIP: Fee Simple 4659-4663 GOLDEN FOOTHILL PKWY 3
PROPERTY OVERVIEW 4659 4661 4663 4659-4663 GOLDEN FOOTHILL PKWY 4
EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS Opportunity to increase buyer yields as leases roll and with new tenants. Leases signed in Q3 2017 have over 20% higher rates than existing tenant rates. 12 of 15 tenants have annual rent increases. No competing product developed in the last 10 years. Balance of Carson Creek Business Park 98% occupied No competing product under construction No competing products developed in the last several years Price below replacement cost Average gross rent is $.94 psf Average net rent is $.63 psf Asking rent in competing flex projects is +/- $.90 nnn Minimal management with the Association responsible for everything outside the building (parking lot, landscaping, garbage removal, window cleaning) 4659-4663 GOLDEN FOOTHILL PKWY 5
CARSON CREEK BUSINESS PARK LOCATION 128 16 680 5 Winters Vacaville 70 49 Live Oak 20 Colusa 20 Yuba City 505 99 65 45 113 70 80 Woodland Davis 84 Fairfield 5 12 Rio Vista 160 160 Brentwood Clayton 4 80 Citrus Heights Sacramento Folsom EEl Dorado 50 Hills 49 Lincoln Auburn Roseville Latrobe Latrobe Elk Grove 99 104 888 12 26 Stockton 4 d Blue Canyon River Pines White Rock Rd San Andreas 49 Windfield Sandstone Dr Golden Jamestown 80 El Dorado Natl. Forest Residential Community Foothill Pkwy Tahoe Natl. Forest Latrobe R Latrobe Rd Rd South Lake Tahoe Arnold Hillsdale Cir Sonora 88 50 Lake Alpine Latrobe Rd Investment Blvd Da 108 N 50 4659-4663 GOLDEN FOOTHILL PKWY 6
LOCATION 50 WHITE ROCK RD LATROBE GOLDEN FOOTHILL PKWY 5 4659-4663 GOLDEN FOOTHILL PKWY 7
SITE PLAN 4659-4663 GOLDEN FOOTHILL PKWY 8
RENT ROLL 4659 Golden Foothill Parkway Tenant Lease Suite Size % Start Finish Rate Deposit Monthly Annual Comment Yenos Gross 101 1351 9.2 7.6.16 9.30.21 $1.30 $1,000 $1,756 $21,072 10.1.18: $1,800 10.1.19: $1,845 10.1.20: $1,891 Giant Marketing Gross 102 1576 12.7 3.20.15 5.19.19 $0.83 $1,341 $1,308 $15,696 4.1.18: $1,341 Bowen Healing Gross 103 3074 26.1 3.15.11 MTM $0.77 $2,000 $2,500 $30,000 Paul Hale Gross 105 1576 12.7 6.1.14 7.31.19 $0.75 $1,214 $1,185 $14,215 8.1.18: $1,214 Allstate (BSIC) Gross 106 1300 10.5 5.1.16 8.31.21 $1.18 $1,656 $1,535 $18,420 9.1.18: $1,568 9.1.19: $1,615 ThinCi Gross 201 1753 14.2 4.19.14 7.31.20 $1.16 $2,177 $2,033 $24,402 8.1.18: $2,104 8.1.19: $2,177 Ari Software Gross 206 1753 14.2 11.1.17 10.31.22 $1.00 $1,753 $1,753 $21,036 11.1.18: $1,797 11.1.19: $1,842 11.1.20: $1,888 11.1.21: $1,935 Total 12,383 100 $0.97 $11,141 $12,070 $144,840 4661 Golden Foothill Parkway Tenant Lease Suite Size % Start Finish Rate Deposit Monthly Annual Crossfit Bios Net 101 4696 37.1 9.19.16 1.31.21 $0.53 $2,575 $2,508 $30,096 2.1.19: $2,599.85 2.1.20: $2,691.80 Hiebert Commercial Gross 104 1614 12.7 12.16.10 MTM $0.68 0 $1,100 $13,200 Leroi Gardner Gross 105 1654 13.1 4.15.11 6.30.19 $0.92 0 $1,522 $18,260 7.1.18: $1,588 3 Strands Global Net 206 1677 13.2 1.1.17 12.31.19 $1.01 $1,750 $1,700 $20,400 1.1.19: $1,750 Vacant Net 103 1614 12.7 na na $0.73 $1,178 $14,139 Vacant Net 106 1419 11.2 na na $1.00 $1,419 $17,028 Total 12,674 100 $0.74 $4,325 $9,427 $113,123 4659 & 4661 Building Total 25,057 100 $15,466 $21,497 $257,963 88% Occupied 4663 Golden Foothill Parkway Tenant Lease Suite Size % Start Finish Rate Deposit Monthly Annual Nor Cal Mechanical Net 101 3292 26.1 6.21.14 8.31.20 $0.75 $2,074 $2,469 $29,628 9.1.18: $2,568 9.1.19: $2,667 Mraz Brewing Net 103 3044 24.1 3.27.15 6.26.20 $0.62 $2,016 $1,919 $23,026 4.1.18: $1,967 4.1.19: $2,016 Colou Enterprises Net 105 6285 49.8 3.15.15 3.14.20 $0.63 $4,230 $3,928 $47,134 3.1.18: $4,127 3.1.19: $4,230 4663 Building Total 12,621 100 $0.67 $8,320 $8,417 $99,788 100% Occupied 4659-4663 GOLDEN FOOTHILL PKWY 9
BUILDING PROFORMA BUILDING PROFORMA 4659 Golden Foothill 4661 Golden Foothill 4663 Golden Foothill Projected 2018 Budget Projected 2018 Budget Projected 2018 Budget Scheduled Rental Income $ 145,993 $ 113,520 $ 102,657 Expense Recapture $ - $ 24,203 $ 34,794 Gross Operating Income $ 145,993 $ 137,723 $ 137,451 Operating Expenses Management $ 5,109 $ 3,732 $ 3,593 Insurance $ 1,475 $ 1,466 $ 1,458 Association Dues $ 9,500 $ 9,500 $ 9,500 Repairs $ 3,200 $ 3,200 $ 3,200 Water $ 1,292 $ 1,148 $ 688 Sewer $ 2,533 $ 575 $ 593 Taxes $ 13,731 $ 12,997 $ 15,761 Total Operating Expenses $ 36,841 $ 32,618 $ 34,794 10.6 2018 Projected NOI $ 109,151 $ 105,105 $ 102,656 Note: 4659 Golden Foothill is 100% leased 4661 Golden Foothill is 88% leased The Projected NOI includes Suite 103 (1,614 SF) leased at $.73 NNN and Suite 106 (1,419 SF) leased at $1.00 NNN. 4663 Golden Foothill is 100% leased 4659-4663 GOLDEN FOOTHILL PKWY 10
AREA OVERVIEW SACRAMENTO REGIONAL OVERVIEW The Sacramento Region encompasses approximately 5,361 square miles and is comprised of four counties, which include Sacramento, El Dorado, Placer and Yolo Counties. The Sacramento MSA population grew by over 350,000 people from 2000 to 2010 and the population is projected to increase by 420,000 people to nearly 2.8 million residents by 2021. Two thirds of the population increase is due to migration (Bay Area and Southern California) while only one-third is due to natural increases. The consistent growth of the Sacramento Region is attributed to its desirability as a great place to live and work, while offering a much lower cost of living than the San Francisco Bay Area, Los Angeles and San Diego metropolitan areas. BUSINESS CLIMATE & WORKFORCE With a unique and increasingly healthy mix of economic opportunities for companies and job seekers alike, the Sacramento Region has experienced strong population and steady job growth over the last few decades and is expected to outpace the national average by more than double over the next ten years. This growth is credit to the diversification and strength of the region s economic base with a shift from primarily government employment to include private sector employment that now represents dynamic and expanding industries including high technology, life sciences, healthcare, and clean energy technology. In fact, the renewable energy and clean energy technology industries have been investing in the Sacramento region at levels never seen before and an increasing number of national and international firms are choosing the Sacramento region as their base of operations for the United States. In addition to the Sacramento Region s strengths for traditional businesses, including lower costs, a positive business climate, and high quality of life, the region is seeing a new wave of technology companies moving to the area to take advantage of an entirely new set of competitive advantages. These advantages include strong educational and research institutions, location of the state capital, proximity to the San Francisco Bay Area, an emerging venture capital network, premier sites and a qualified technical workforce. The Sacramento Region s non-farm employment totals roughly 840,000 or about 6 percent of the statewide total. The region suffered employment losses greater than statewide and national averages during the recent nationwide recession, however, the region is now experiencing stronger growth than California evidenced by the Sacramento MSA being ranked number 1 in projected population growth from 1995-2020 for the largest 50 metropolitan areas in the nation. As home to the state capital and government operations, the Sacramento Region s public sector has played a major role in the economy. While still very important to the health of the regional economy, during the last two decades its proportion of total jobs steadily declined as a result of the rapid growth of private sector jobs. Since the recession, however, the private sector has gained jobs at a faster pace than the government category, particularly due to the housing decline s effects on construction and supporting industries such as financial activities and retail trade. The public sector s proportion of total employment increased from its low in 2005 of around 26 percent to currently about 28 percent. The largest proportions of total jobs in the Sacramento region are in Government; Trade, Transportation & Utilities (including retail and distribution of goods); Professional & Business Services; and Educational & Health Services. The Government sector comprised nearly 235,000 jobs in the Sacramento Region and has historically been the largest sector in the region. The Trade, Transportation & Utilities; Educational & Health Services; and Professional & Business Services sectors each include over 100,000 regional jobs. 4659-4663 GOLDEN FOOTHILL PKWY 11