100%-leased retail center on one of sacramento’s busiest …€¦ · cbre is proud to present the...
TRANSCRIPT
100%-leased retail center on one of Sacramento’s
busiest commercial corridors
Capital Markets | Investment Properties
2901-2989 Arden WaySacramento, California
$7,100,000($142 psf)
FULTON AVE
AR
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Executive Summary ...............03
Property Overview .................07
Financial ...............................10
Tenancy ................................19
Market Overview & Trends ......22
RANDY GETZ
Executive Vice PresidentLic. 00828903 +1 916 446 [email protected]
CBRE, Inc.500 Capitol MallSuite 2400Sacramento, CA 95814
INVESTMENT CONTACT LOCAL MARKET CONTACT
RICK MARTINEZ
Senior Vice PresidentLic. 00991459 +1 916 446 [email protected]
Executive SummarySacramento
CBRE is proud to present the opportunity to acquire the fully-leased Ardendale Shopping Center on Arden Way, one of Sacramento’s busiest commercial corridors. The
property contains a little more than 50,000 square feet and is leased to seven tenants, two of which have operated at the Center since the mid-1990s. Ardendale enjoys
a superb retail location on the north side of Arden Way where Average Daily Traffic exceeds 28,000 vehicles.
The asset is priced at $7,100,000 which equates to $142 per square foot with an initial capitalization rate of 7.6%. All leases are triple-net or modified net with expense
recoveries exceeding 90%. Prospective investment yields are attractive. If debt is utilized as modeled in our 10-year discounted cash flow analysis, the projected annual
IRR is 15.0%. On a cash basis the 10-year projected IRR is 10.2% annually.
The property is leased to a synergistic mix of tenants offering food, services and products. Tenants include California Backyard, Total Beauty Experience, Crossroads Trading
Company, and others. The Center’s newest tenant, with its Grand Opening slated for the end of June, is Falling Prices which has been featured in multiple news reports
because of the huge crowds drawn to its first two stores in Carmichael and Folsom. Falling Prices is a liquidation specialty store with a novel twist. The store is completely
restocked every week with fresh merchandise from retailers such as Target and Amazon. Huge lines form in anticipation of the Tuesday morning openings when all items
are priced at $6.00. On Wednesday, and each day thereafter, the price is reduced until everything is sold. Shopper enthusiasm has exceeded projections, and Ardendale’s
other tenants stand to benefit from an anticipated surge in traffic when this store opens.
Executive Summary
* Photo shows Falling Prices’ Carmichael store
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Investment Highlights
• Well-located retail center on one of Sacramento’s busiest commercial
corridors
• 100%-leased to a diverse mix of internet-resistant retail tenants
• New tenant, Falling Prices, is Sacramento’s hottest new retailer,
drawing large crowds
• Total Beauty Experience and Crossroads Trading have occupied for
25 and 23 years, respectively
• Offered at $7,100,000 which equates to $142 per sqauare foot
• Attractive yields: 7.6% going-in capitalization rate; 15.0% 10-year
projected annual leveraged return
• High visibility and robust traffic count: 28,051 ADT on Arden Way
• New roof installed on both buildings in May 2019
PROPERTY TYPE Neighborhood Retail Center
PROPERTY NAME Ardendale
ADDRESS 2901-2989 Arden Way, Sacramento, CA 95825
NET RENTABLE AREA 50,021 square feet
NUMBER OF TENANTS Seven
CURRENT OCCUPANCY 100%
OFFERING PRICE (PSF) $7,100,000 ($142 psf)
CAPITALIZATION RATE Actual: 7.6%
PROJECTED 10-YEAR YIELDSCash: 10.2% Leveraged: 15.0%
Offering Summary
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Area OverviewThe Arden-Arcade area is bounded on the west by the Capital
City Freeway and American River, on the south by the American
River, on the east by Mission Ave. and on the north by, again,
the Capital City Freeway. The Arden/Arcade U.S. Post Office is
adjacent to Ardendale on the west. Only a few minutes northeast
of downtown Sacramento, the area is a rich mixture of residential,
office and retail uses. There are no less than 19 shopping centers
that contain a minimum of 65,000 square feet each. The largest
is Arden Fair Mall with more than 1.1 million square feet of
retail space anchored by Nordstrom, JC Penney, and Macy’s.
Popular national brand shops include Apple, Coach, Abercrombie
Kids, Aeropostale, Forever 21, American Eagle, Disney, Banana
Republic, Tumi, Victoria’s Secret and Pink, just to name a few.
Arden-Arcade’s retail centers draw from the many affluent
neighborhoods along Fair Oaks Boulevard and benefit from the
fact that downtown Sacramento does not have a regional mall. For
East Sacramento residents and the rapidly-growing populations of
Midtown and Downtown, Arden-Arcade is the most convenient
retail choice.
Traffic flow is excellent – served by Watt and Howe Avenues,
major north/south arterials that bridge the American River. Major
east/west thoroughfares are Arden Way and Fair Oaks Boulevard.
These high-traffic routes provide convenient access to both the
Capital City Freeway and Highway 50.
Downtown
AR
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Arden Fair Mall
AVON
DALE AVE
AVONDALE AVE
FULTON AVE
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Property OverviewSacramento
Property Summary
Name Ardendale
Address2901-2989 Arden Way Sacramento, California 95825
County Sacramento
Parcel numbers 279-0243-010; -011
Land area ±3.9 acres
Parking total / ratio 263 spaces / 5.25:1,000 sf
Zoning LC-Limited Commercial
Year built 1972; renovated 2007
Construction type Wood frame and stucco
Exterior Stucco; decorative awnings
Foundation Reinforced concrete slab
RoofBoth buildings received new roofs in May 2019
HVAC Refer to due diligence site
Fire Safety Wet fire suppression system
Confidentiality Agreement and Due Diligence Access
A website containing documents and additional information about the property has been created. Please contact us to receive a link to the Confidentiality Agreement and access to the due diligence site.
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Site Description
The two parcels that comprise the site total approximately 3.9 acres at the northwest corner of Arden Way and Avondale Ave. in unincorporated Sacramento County. The
front parking lot wraps around the east side of the center and then opens up to an even larger lot behind. Ingress and egress are excellent with three driveways on Arden
and a fourth serving the rear lot from Avondale Ave. Altogether there are 263 parking stalls, a parking ratio of 5.25:1,000 sf. The west building, soon to be occupied by
Falling Prices, also features a loading dock and separate store entry at the rear.
ARDEN WY
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Parcel lines are approximate and for illustrative purposes only.
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FinancialSacramento
Financial Summary
The asset is priced at $7,100,000 which equates to $142 per square foot with an initial
capitalization rate of 7.6%. All leases are net, but two contain limitation clauses. Recoveries,
however, are projected to exceed 90% of total expenses.
Anticipated yields are attractive: Our 10-year discounted cash flow analysis projects annual returns
averaging 10.2% on a cash basis, and 15.0% leveraged.
Following are several documents that provide additional information about the current and projected
financial performance of the asset.
Price $7,100,000
Price per Square Foot $142
Net Rentable Area 50,021
Potential Financing:
Type Proposed
Interest Rate 4.75%
Principal Amount @ 70% LTV $4,970,000
Down Payment $2,130,000
Amortization (years) 30
Maturity (years) 7
Estimated Monthly Payment $25,926
Estimated Annual Payment $311,110
Occupancy > 100%
Scheduled Gross Income $610,505
plus expense reimbursements $253,276
Adjusted Scheduled Gross Income $863,781
less vacancy and collection ($43,189)
Effective Gross Income $820,592
less Operating Expenses ($280,833)
Net Operating Income $539,759
per square foot $10.79
Estimated Annual Debt Service ($311,110)
Pre-Tax Cash Flow $228,649
Initial Capitalization Rate 7.6%
Initial Cash-on-Cash Return 10.7%
Argus Cash IRR 10.2%
Argus Leveraged IRR 15.0%
The Income/Expense statement at right details the estimated NOI following sale. Note that the
7.6% projected cap rate is achieved with taxes adjusted to reflect the sale and with a 5% vacancy
allowance, even though the center is 100% leased.
11
Rent Roll
The rent roll shows lease commencement and expiration dates, timing and amounts of the next scheduled rent increase, and which tenants have options to extend.
Estimated reimbursement amounts are taken from the Argus™ DCF analysis. There are two columns for Pro Rata Share because there are two parcels and each tenant
reimburses its pro rata share of taxes for the parcel on which it is located. CAM charge prorations are done based on the square footage of the entire center.
Annual rents are for the 12 months commencing July 1, 2019 including scheduled increases
Lease Term Current Base RentEst.
Expense Recovery
Escalations Options Pro Rata Share
Space TenantRentable
Sq. Ft. Start End Monthly PSF Annual Lease Type Date
New Mo. Rent PSF
No. x Term
Option Rent Center Bldg.
2901 Falling Prices (1) 14,100 Jul-19 Dec-26 $10,575 $0.75 $126,900 nnn $67,959 Jan-21 $10,857 0.77 1x7-yr. fmr 28.2% 100%
2929 Total Beauty Experience (2) 9,257 Oct-94 Jul-20 $12,668 $1.37 $155,183 Mod. nnn $43,101 Sep-19 $12,985 $1.40 none - 18.5% 25.8%
2933-35 Crossroads Trading (3) 6,664 Feb-96 Jan-23 $9,151 $1.37 $111,179 nnn $27,998 Feb-20 $9,425 $1.41 3x5-yr. (3) 13.3% 18.6%
2939 Sav On Cleaners 3,470 Aug-17 Jul-27 $4,685 $1.35 $58,123 nnn $19,820 Aug-19 $4,858 $1.40 2x5-yr. fmr 6.9% 9.7%
2947 California Backyard (4) 6,930 Jun-19 Jun-24 $5,000 $0.72 $60,000 nnn $39,583 Dec-20 $5,346 $0.77 none - 14% 19.3%
2951 World of Stereo (5) 4,800 Dec-18 May-22 $3,840 $0.80 $46,560 nnn $27,415 Jun-20 $4,320 $0.90 1x3-yr. $5,040 9.6% 13.4%
2989 Pita Kitchen 4,800 May-09 Mar-22 $4,320 $0.90 $52,560 nnn $27,415 Apr-20 $4,560 $0.95 none - 9.6% 13.4%
Total Property 50,021 $50,239 $610,505 $253,291 100%
Footnotes:(1) Tenant reimburses expenses semi-annually. Responsible for property taxes only on the parcel where premises are located (sole tenant on parcel 279-0243-11). Any unamortized rent abatement will be credited
to Purchaser at COE. (2) Rent increases are tied to CPI, projected 2.5% annually. Base CPI year is August 2014-July 2015. Tenant is exempt from property tax increases caused by sale or transfer of the property. (3) Reimbursements and rent increases are tied to CPI with a 3% minimum, 5% maximum. Reimbursement cap increases annually (Section 2 j.) 2018 cap will be $2.46 psf/year and increases 3% annually; current
expenses are below the cap. Option rents follow annual CPI pattern with 3% min. and 5% max.(4) Tenant has an option to terminate lease 18 months after initial occupancy on three months’ written notice. Effective 18 months after first occupancy rent shall increase annually by $0.05 psf/month.(5) Any unamortized rent abatement will be reimbursed by Seller at COE. Tenant to reimburse Landlord’s maintanance and repair costs semi-annually (para 5.3). Tenant also reimburses property taxes and property
(but not liability) insurance.
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Expenses
Expenses are projected based on actual 2018 operations, but with property taxes adjusted to reflect
approximate reassessment following sale. Management fees are estimated at a typical market rate of
3.0% of effective gross income.
2018 Argus Input Post-sale
Ad Valorem Taxes parcel -010 - 1.00042% 71,030
Ad Valorem Taxes parcel -011 35,282 0.21198% 15,050
Direct Levies -011 - 247 247
Direct Levies -010 - 2,819 2,819
Gas & Electricity 6,596 6,596 6,596
Sewer, Water, Trash 20,457 20,457 20,457
Insurance 16,569 16,569 16,569
Management (3% of EGI) $0 3.0% 24,618
Repairs and Maintenance 35,008 35,008 35,008
Cleaning-common area 3,570 3,570 3,570
HVAC 24,090 $0.25 12,505
Security 57,100 57,100 57,100
Landscaping / Parking 15,263 15,263 15,263
TOTAL OPERATING EXPENSES $213,935 n/a 280,833
$4.28 $5.61
$0.47
13
Argus Reports
We have included in this offering memorandum selected reports from the Argus™ DCF analysis. For interested parties that have Argus™ software and execute the
confidentiality agreement we will make the native file available on our due diligence website.
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Argus Assumptions
This table contains the underlying assumptions that were used in the Argus™ 10-year discounted cash flow (DCF) analysis.
Analysis term and starting date: Ten years commencing July 2019
Inflation Rates:
General: 2.5%
Market rent: 2.5%
Operating expenses: 2.5%
Property taxes: 2.0%
Current Market Rent: Market rent varies between $12.00-$15.60 psf/year depending on location.
Reserves: $0.10 psf/year. Both buildings re-roofed in 2019.
Operating Expenses:Based on actual operating expenses with property taxes adjudted for post-sale reassessment and imputed Management Fee modeled at 3% of Effective income
Expense Reimbursements
Current:NNN. Total Beauty has Prop 13 tax protection. Reimbursements for Crossroads Trading are capped with annual CPI increase (2019 cap will be $0.211 psf/month).
Future: Same. Total Beauty's Prop.13 protection continues throughout the analysis.
Rollover Assumptions
Renewal probability: 75%
Options: Assumes options to extend are exercised.
Months dark: 6
Starting rent: 100% of fair market rent when the lease commences.
Escalations: Assumes rent is increased annually by 2.5%.
T.I. Allowance: $10 per rentable square foot on new leases; none on renewals.
Concessions: None
Term length: 5 years.
Leasing commissions: 6.0% of base rent on the first five years of term; 3.0% on renewals
Minimum stabilized vacancy: 5.0%
Debt / Refinancing: 70% LTV, 4.75% interest, 30-year amortization, due in seven years.
Reversion:
Terminal capitalization rate: 7.5%
Present value discounting method: Annually, midpoint on cash flow, endpoint on sale.
Costs of Sale: 3.0% of reversion price
15
Argus Reports: Cash Flow
Schedule Of Prospective Cash Flow In Inflated Dollars for the Fiscal Year Beginning 7/1/2019 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
For the Years Ending Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027 Jun-2028 Jun-2029 Jun-2030Potential Gross Revenue Base Rental Revenue $610,505 $612,087 $637,119 $668,880 $685,029 $703,480 $729,147 $743,584 $745,225 $742,535 $760,998 Absorption & Turnover Vacancy (22,843) (12,856) (18,898) (31,518) (7,295) (7,310) (15,158)
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Scheduled Base Rental Revenue 610,505 589,244 624,263 668,880 685,029 684,582 697,629 736,289 737,915 742,535 745,840 Base Rental Step Revenue 4,166 9,960 18,394 26,828 17,899 24,063 26,095 41,327 39,475 Expense Reimbursement Revenue 253,276 252,350 261,660 272,514 278,349 275,106 282,048 297,645 304,565 314,674 313,960
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Total Potential Gross Revenue 863,781 841,594 890,089 951,354 981,772 986,516 997,576 1,057,997 1,068,575 1,098,536 1,099,275 General Vacancy (43,189) (20,379) (32,291) (47,568) (49,089) (31,373) (19,937) (45,970) (46,484) (54,927) (40,564)
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Effective Gross Revenue 820,592 821,215 857,798 903,786 932,683 955,143 977,639 1,012,027 1,022,091 1,043,609 1,058,711
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Operating Expenses Ad Valorem taxes - All 86,080 87,802 89,558 91,349 93,176 95,040 96,941 98,879 100,857 102,874 112,715 Direct levies -010 2,819 2,819 2,819 2,819 2,819 2,819 2,819 2,819 2,819 2,819 2,819 Direct levies -011 247 247 247 247 247 247 247 247 247 247 247 Gas & electricity 6,596 6,761 6,930 7,103 7,281 7,463 7,649 7,841 8,037 8,238 8,443 Sewer, water, trash 20,457 20,968 21,493 22,030 22,581 23,145 23,724 24,317 24,925 25,548 26,187 Insurance 16,569 16,983 17,408 17,843 18,289 18,746 19,215 19,695 20,188 20,692 21,210 Management 24,618 24,636 25,734 27,114 27,980 28,654 29,329 30,361 30,663 31,308 31,761 Repairs & maintenance 35,008 35,883 36,780 37,700 38,642 39,608 40,599 41,614 42,654 43,720 44,813 Cleaning-common area 3,570 3,659 3,751 3,844 3,941 4,039 4,140 4,244 4,350 4,458 4,570 HVAC 12,505 12,818 13,138 13,467 13,803 14,148 14,502 14,865 15,236 15,617 16,007 Security 57,100 58,527 59,991 61,490 63,028 64,603 66,218 67,874 69,571 71,310 73,093 Landscaping/parking 15,263 15,645 16,036 16,437 16,847 17,269 17,700 18,143 18,596 19,061 19,538
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Total Operating Expenses 280,832 286,748 293,885 301,443 308,634 315,781 323,083 330,899 338,143 345,892 361,403
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Net Operating Income 539,760 534,467 563,913 602,343 624,049 639,362 654,556 681,128 683,948 697,717 697,308
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Debt Service Interest Payments 234,420 230,696 226,793 222,699 218,407 213,906 209,187 Principal Payments 76,691 80,414 84,318 88,411 92,704 97,204 101,923 Origination Points & Fees 49,700
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Total Debt Service 360,811 311,110 311,111 311,110 311,111 311,110 311,110
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Leasing & Capital Costs Tenant Improvements 23,721 12,608 19,602 40,754 14,621 22,177 Leasing Commissions 27,860 15,588 16,616 44,998 17,562 18,665 Reserves @ $0.10 psf/year 5,002 5,002 5,002 5,002 5,002 5,002 5,002 5,002 5,002 5,002 5,002
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Total Leasing & Capital Costs 5,002 56,583 33,198 5,002 5,002 41,220 90,754 5,002 37,185 5,002 45,844
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Cash Flow After Debt Service $173,947 $166,774 $219,604 $286,231 $307,936 $287,032 $252,692 $676,126 $646,763 $692,715 $651,464 But Before Taxes ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Revenue/Expense Notes Ad valorem prop taxes -011 Direct input; for reimbursements only. Ad valorem prop taxes -010 Direct input; for reimbursements only. Current -010 ad valorem taxes Total Beauty is exempt form increases due to sale or transfer. This is 2018/2019 ad valorem taxes on parcel -010. 16
Argus Reports: Resale & IRR
Prospective Property Resale
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
For the Years Ending Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027 Jun-2028 Jun-2029
Resale Amount
Gross Proceeds from Sale $7,126,227 $7,518,840 $8,031,240 $8,320,653 $8,524,827 $8,727,413 $9,081,707 $9,119,307 $9,302,893 $9,297,440
Commissions & Adjustments (213,787) (225,565) (240,937) (249,620) (255,745) (261,822) (272,451) (273,579) (279,087) (278,923)
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
Net Proceeds From Sale 6,912,440 7,293,275 7,790,303 8,071,033 8,269,082 8,465,591 8,809,256 8,845,728 9,023,806 9,018,517
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
Outstanding Debt Retirement
Total Principal Balances (4,893,309) (4,812,895) (4,728,577) (4,640,166) (4,547,462) (4,450,258)
___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
Net Resale Proceeds After Debt $2,019,131 $2,480,380 $3,061,726 $3,430,867 $3,721,620 $4,015,333 $8,809,256 $8,845,728 $9,023,806 $9,018,517
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Unleveraged Annual IRR 5.08% 8.76% 10.54% 10.80% 10.75% 10.64% 10.69% 10.47% 10.41% 10.23%
Leveraged Annual IRR 3.09% 16.24% 21.38% 21.61% 21.03% 20.37% 18.92% 17.00% 15.93% 14.95%
Note: All resale values are calculated using the following year Proposition 13 expense value as shown on the Schedule of Prospective Cash Flow Report.
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Argus Reports: Property Summary
Timing & Inflation
Reporting Period: July 1, 2019 to June 30, 2029; 10 years
Inflation Month: Analysis Start
General Inflation Rate: 2.50%
Property Size & Occupancy
Property Size: 50,021 Square Feet
Alternate Size: 1 Square Foot
Number of rent roll tenants: 7
Total Occupied Area: 50,021 Square Feet, 100.00%, during first month of analysis
General Vacancy
Method: Percent of Potential Gross Revenue
Rate: 5.00%
Debt Financing
Number of Notes: 1
Beginning Principal Balance: $4,970,000
Average Year 1 Interest Rate: 4.75%
Property Purchase & Resale
Purchase Price: $7,100,000
Resale Method: Capitalize Net Operating Income
Cap Rate: 7.50%
Cap Year: Year 11
Commission/Closing Cost: $278,923
Net Cash Flow from Sale: $9,018,517
Present Value Discounting
Discount Method: Annually (Midpoint on Cash Flow/Endpoint on Resale)
Unleveraged Discount Rate: 10.20%
Unleveraged Present Value: $7,113,691 at 10.20%
Unleveraged Annual IRR: 10.23%
Leveraged Discount Rate: 15.00%
Value of Equity Interest: $2,120,931 at 15.00%
Leveraged Annual IRR: 14.95%
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TenancySacramento
Tenant Profiles
www.fallingprices.com
Falling Prices is a Sacramento-based company specializing in the liquidation of overstocks and unsold inventory of other retailers,
including Target and Amazon. Their unique approach has captured the imagination of many Sacramento shoppers and generated
a storm of media attention. Encouraged by overwhelming crowds at the first store in Carmichael, the company recently opened
its second location in Folsom, and the store at Ardendale, expected to open in late June, will be its third. The business model is
simple and irresistible to bargain-hunters: Each week the store is restocked with new merchandise and on Tuesday morning the
stores open with every item priced at $6.00. The next day all items cost $4.00; then $2.00; then $1.00; then on Saturday any
remaining items are priced at $0.25. On Sunday and Monday the store is restocked and the cycle begins again Tuesday morning.
Members of the group that started the company are experienced liquidators, and once worked on the A&E channel’s television
show “Storage Wars”.
www.pitakitchenplus.com
Pita Kitchen Plus opened in June 2008 to provide the Sacramento region with authentic Mediterranean Cuisine - healthy natural
food made from scratch, along with outstanding service. With over 25 years in the food business in Chicago, the owners had
moved to Sacramento and discovered there were few restaurants offering wholesome, authentic Middle Eastern food. With a
dedication to fresh, natural ingredients, the owners take seriously their goal to create food in which the flavor of each ingredient
comes through. All items are made from scratch, in their kitchen, with no additives or preservatives. Fresh pita is baked daily,
as are savory pies, desserts, and more.
www.totalbeautyexp.com
Catering to both men and women, TBE is a mega-salon with nearly 10,000 square feet devoted to haircare, makeup, fragrances,
skincare, nails, bath & body, and personal care services. Well-attended special events tailored to the needs and preferences of
its customers are held frequently. Demonstrating just how well they know their customers, one section of the salon is devoted
exclusively to high-quality pet care products.
Total Beauty Experience has been a tenant at Ardendale since 1994.
(continued on next page)
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Tenant Profiles
Sav-On Cleaners #25
www.saveon25.com
Sav On is a full-service dry cleaner operating on the premise that top-quality cleaning and laundry services do not have to be
expensive. Sav On offers tailoring services and top-tier garment care for comforters, wedding gowns, tuxedos, furs, fine cloths
and fabrics, table cloths / runners, and drapes / curtains. Sav On does not use perchloroethylene in its dry cleaning process.
They opened at this location in 2017.
www.californiabackyard.com
California Backyard is a lifestyle store specializing in outdoor furniture, hot tubs, outdoor kitchens and grills, with a seasonal
transition to holiday specialty items during the winter months. The company has been turning backyard dreams into reality for
Sacramento home owners for more than 30 years. The experienced service staff is focused on customer satisfaction and takes
pride in having their customers tell friends and family about the great deals and personal service at California Backyard.
In addition to its Arden store which opened in 2010, California Backyard has locations in Elk Grove, Roseville, Gold River, and
Reno.
www.crossroadstrading.com
Crossroads Trading is a soft goods retailer with a difference. They buy, sell, trade and consign fashion, and by recycling used
clothing, help the planet by cutting down on what goes into landfills. In addition to the Arden store they have 36 other locations
around the country. With constantly changing inventory and attractive prices, some customers find shopping at Crossroads akin
to a treasure hunt. Crossroads Trading Company has been a valued tenant at Ardendale since 1996.
www.worldofstereo.com
Established in 1988, World of Stereo had humble beginnings on Market Street in San Francisco. Originally they sold records and
electronics to locals and tourists but eventually migrated to specializing in the professional DJ and Pro Audio equipment that is
now their hallmark. World of Stereo offers expertise in DJ equipment, professional audio, lighting and recording gear, sales, and
equipment rentals. They also handle repairs and have a full-service website where customers can find and purchase a variety of
equipment from major manufacturers.
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Market Overview & TrendsSacramento
Downtown
ARDEN W
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Arden Fair Mall
AV
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FULTON AVE
AVONDALE AVE
ARDEN- ARCADE
Inventory:
7.1 million SF
New construction:
4,800 SFVacancy rate:
10.3%, trending ↓
Average NNN rent:
$21.79 psf, trending ↑
Demographics
ARDENDALE, 2901-2989 ARDEN WAY 1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS
POPULATION
2018 Population - Current Year Estimate 20,827 135,564 350,117
2023 Population - Five Year Projection 21,689 141,095 365,438
2010 Population - Census 19,477 128,676 331,744
2000 Population - Census 19,664 130,481 336,362
2010-2018 Annual Population Growth Rate 0.82% 0.63% 0.66%
2018-2023 Annual Population Growth Rate 0.81% 0.80% 0.86%
HOUSEHOLDS
2018 Households - Current Year Estimate 9,145 58,392 142,045
2023 Households - Five Year Projection 9,492 60,451 147,588
2010 Households - Census 8,554 56,023 135,831
2000 Households - Census 8,763 58,472 139,379
2010-2018 Annual Household Growth Rate 0.81% 0.50% 0.54%
2018-2023 Annual Household Growth Rate 0.75% 0.70% 0.77%
2018 Average Household Size 2.23 2.28 2.42
HOUSEHOLD
INCOME
2018 Average Household Income $61,265 $82,923 $77,287
2023 Average Household Income $70,963 $97,530 $91,257
2018 Median Household Income $42,540 $53,381 $52,876
2023 Median Household Income $48,593 $61,508 $60,363
2018 Per Capita Income $27,690 $36,212 $31,928
2023 Per Capita Income $31,793 $42,262 $37,404
HOUSING
UNITS
2018 Housing Units 10,070 63,723 154,220
2018 Vacant Housing Units 925 9.2% 5,331 8.4% 12,175 7.9%
2018 Occupied Housing Units 9,145 90.8% 58,392 91.6% 142,045 92.1%
2018 Owner Occupied Housing Units 2,699 26.8% 26,188 41.1% 64,995 42.1%
2018 Renter Occupied Housing Units 6,446 64.0% 32,204 50.5% 77,050 50.0%
EDUCATION
2018 Population 25 and Over 14,071 93,478 239,483
HS and Associates Degrees 8,176 58.1% 48,372 51.7% 129,372 54.0%
Bachelor's Degree or Higher 4,143 29.4% 35,701 38.2% 80,878 33.8%
PLACE OF WORK2018 Businesses 1,144 6,777 15,622
2018 Employees 11,470 69,044 190,715
23
Lease CompsRe: Ardendale
FOR INFORMATION: Retail Lease Transactions
Lease Comp InformationProperty Information Additional Information
Sunrise Plaza Shopping Center
7861 - 7885 Greenback Lane
Citrus Heights, CA 95610
Suite: N/A
Strip/In-Line Center
Year Built / Renovated:
1
Lease Term:
Lease Exp Date:
Sublease:
TIs:
16,640 SF
Transaction SF: 3,200
$1.83 NNN
01/23/19 : 02/20/19
$25.00/sf
60 Months
02/20/24
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1111
Park Ratio:
Lessee:
Lessor: JFL LLC
Bridge Locations, LLC dba Xfinity and/or Comcast
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.65/sf
Activity Type: New Lease
Trans ID: 100572183
Property Class:
TL Floors: Tenant Rep: Beta Retail Incorporated, Matthew Lux
Landlord Rep: CBRE, Scott Carruth
Rent Steps: 1-60: $1.83
Notes: Electronics
Loc Type:
Promenade at Sacra Gateway
Truxel Rd
Sacramento, CA 95834
Suite:
Neighborhood Center
Year Built / Renovated:
2
Lease Term:
Lease Exp Date:
Sublease:
TIs:
665,600 SF
Transaction SF: 6,532
$1.25 NNN
12/10/18 : 02/01/19
$30.00/sf
126 Months
07/30/29
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
2006
Park Ratio:
Lessee:
Lessor: CLPF Promenade, LP c/o Clarion Partners
Jade Korean BBQ, JL & BL
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $1.25/sf
Activity Type: New Lease
Trans ID: 100563157
Property Class:
TL Floors: Tenant Rep: Keller Williams Realty Elk Grove,
Tuan Nguyen
Landlord Rep: CBRE, Jon Schultz
Free Rent: 6 Months
Rent Steps: 7-30: $1.25, 31-54: $1.33, 55-60:
$1.40, 61-78: $1.40, 79-102: $1.49, 103-120:
$1.58, 121-126: $1.58
Notes: Restaurant (full service)
Loc Type:
Stone Creek Center
1587 W El Camino Avenue
South Natomas, CA 95833
Suite: 101
Neighborhood Center
Year Built / Renovated:
3
Lease Term:
Lease Exp Date:
Sublease:
TIs:
50,000 SF / 5.2 acres
Transaction SF: 3,000
$1.85 NNN
12/07/18 : 12/01/18
65 Months
04/30/24
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1992
Park Ratio:
Lessee:
Lessor: R.E.B. Enterprises V, LLC
Mya Kohart and Seth Kohart
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.40/sf
Activity Type: New Lease
Trans ID: 100563163
Property Class:
TL Floors: Tenant Rep: CBRE, Rick Martinez
Landlord Rep: CBRE, Rick Martinez
Free Rent: 4 Months
Rent Steps: 5-6: $0.93, 7-18: $1.85, 19-30:
$1.90, 31-42: $1.95, 43-54: $2.00, 55-64:
$2.05, 65-65: $2.05
Notes: Restaurant (quick serve)
Loc Type:
We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors
should conduct your own investigation of the property and transaction.
Retail Lease Transactions (Image) 1 of 7 5/6/2019
(continued on next page)
24
Lease Comps (continued)Re: Ardendale
FOR INFORMATION: Retail Lease Transactions
Lease Comp InformationProperty Information Additional Information
Sylvan Corners Plaza
7084 - 7144 Auburn Boulevard
Citrus Heights, CA 95610
Suite: 100
Strip/In-Line Center
Year Built / Renovated:
4
Lease Term:
Lease Exp Date:
Sublease:
TIs:
21,568 SF
Transaction SF: 3,629
$1.30 NNN
11/09/18 : 05/01/19
As Is
60 Months
04/30/24
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
2007
Park Ratio:
Lessee:
Lessor: RC Consulting, Inc.
Ukrainian Federal Credit Union
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.72/sf
Activity Type: New Lease
Trans ID: 100560343
Property Class:
TL Floors: Tenant Rep: USKO Realty, Stephan Skots
Landlord Rep: CBRE, Josh Schmidt
Rent Steps: 1-12: $1.30, 13-24: $1.35, 25-36:
$1.39, 37-48: $1.44, 49-60: $1.49
Notes: Bank/Financial Services.
Loc Type:
Sylvan Corners Plaza
7084 - 7144 Auburn Boulevard
Citrus Heights, CA 95610
Suite: 7084-100
Strip/In-Line Center
Year Built / Renovated:
5
Lease Term:
Lease Exp Date:
Sublease:
TIs:
21,568 SF
Transaction SF: 3,629
$1.30 NNN
11/09/18 : 05/01/19
60 Months
04/30/24
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
2007
Park Ratio:
Lessee:
Lessor: RC Consulting Inc.
Ukrainian Federal Credit Union
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.72/sf
Activity Type: New Lease
Trans ID: 100560364
Property Class:
TL Floors: Tenant Rep: USKO Realty, Stephan Skots
Landlord Rep: CBRE, Josh Schmidt
Rent Steps: 1-12: $1.30, 13-24: $1.35, 25-36:
$1.39, 37-48: $1.44, 49-60: $1.49
Notes: Bank/ Financial Services
Loc Type:
Citrus Town Center
7901 - 7983 Greenback Lane
Citrus Heights, CA 95610
Suite:
Community Center
Year Built / Renovated:
6
Lease Term:
Lease Exp Date:
Sublease:
TIs:
118,007 SF
Transaction SF: 4,000
$1.70 NNN
09/20/18 : 09/20/18
87 Months
12/31/25
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1975 / 2012
Park Ratio:
Lessee:
Lessor: Peter P. Bollinger 2003 LLC
Ben's Barketplace
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.45/sf
Activity Type: New Lease
Trans ID: 100555853
Property Class:
TL Floors: Tenant Rep: FGP Commercial Leasing, Inc., Scott
Simcik
Landlord Rep: CBRE, Craig Burress
Free Rent: 3 Months
Notes: Pet Supply Store
Loc Type:
2214 - 2216 Arden Way
Sacramento, CA 95825
Suite: 2216
Strip/In-Line Center
Year Built / Renovated:
7
Lease Term:
Lease Exp Date:
Sublease:
TIs:
6,900 SF
Transaction SF: 2,216
$1.50 NNN
09/14/18 : 10/01/18
64 Months
01/31/24
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1111
Park Ratio:
Lessee:
Lessor: May Mar & Sue Lim
Molina Insurance Agency
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.60/sf
Activity Type: New Lease
Trans ID: 100554411
Property Class:
TL Floors: Tenant Rep: ProEquity Asset Management, Race
Merritt
Landlord Rep: CBRE, Josh Schmidt
Free Rent: 4 Months
Rent Steps: 5-16: $1.50, 17-28: $1.55, 29-40:
$1.59, 41-52: $1.64, 53-64: $1.69
Notes: Insurance Services
Loc Type:
We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors
should conduct your own investigation of the property and transaction.
Retail Lease Transactions (Image) 2 of 7 5/6/2019
(continued on next page)
25
Re: Ardendale
FOR INFORMATION: Retail Lease Transactions
Lease Comp InformationProperty Information Additional Information
Park Place II
4690 - 4780 Natomas Boulevard
Natomas, CA 95835
Suite: 100
Community Center
Year Built / Renovated:
8
Lease Term:
Lease Exp Date:
Sublease:
TIs:
165,559 SF
Transaction SF: 4,000
$1.50 NNN
07/25/18 : 09/30/18
$1.75/sf
60 Months
09/23/23
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
2004
Park Ratio:
Lessee:
Lessor: B33 Park Place JV LLC
US Army Recruiting Center
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.45/sf
Activity Type: New Lease
Trans ID: 100547869
Property Class:
TL Floors: Tenant Rep:
Landlord Rep: CBRE, Scott Carruth
Notes: Other - Miscellaneous
Loc Type:
Fair Oaks Pointe
8525 Madison Avenue
Fair Oaks, CA 95628
Suite: 110
Neighborhood Center
Year Built / Renovated:
9
Lease Term:
Lease Exp Date:
Sublease:
TIs:
56,664 SF / 4.8 acres
Transaction SF: 5,383
$1.40 NNN
07/11/18 : 07/15/18
$20.00/sf
62.1 Mnths
09/15/23
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1986 / 2004
Park Ratio:
Lessee:
Lessor: CSS Properties, LLC
Fidelity National Title Company
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.40/sf
Activity Type: New Lease
Trans ID: 100546545
Property Class:
TL Floors: Tenant Rep: Cornish & Carey, Richard Ellsworth
Landlord Rep: CBRE, Chris Campbell
Free Rent: 1 Month
Rent Steps: 2-2: $0.70, 3-12: $1.40, 13-24:
$1.44, 25-36: $1.48, 37-48: $1.51, 49-62:
$1.55
Notes: Real Estate Services
Loc Type:
Promenade at Sacra Gateway
Truxel Rd
Sacramento, CA 95834
Suite: S-1C
Power Center
Year Built / Renovated:
10
Lease Term:
Lease Exp Date:
Sublease:
TIs:
665,600 SF
Transaction SF: 2,760
$1.81 NNN
07/06/18 : 07/01/18
$20.00/sf
64 Mths
10/31/23
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
2006
Park Ratio:
Lessee:
Lessor: CLPF- Promenade, LP, c/o Clarion Partners
Sweaty Shelly, Sweaty Shelly LLC
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.68/sf
Activity Type: New Lease
Trans ID: 100547839
Property Class:
TL Floors: Tenant Rep: Kidder Mathews-Roseville, Jay Richter
Landlord Rep: CBRE, Josh Schmidt
Free Rent: 4 Months
Rent Steps: 4-12: $1.81, 13-14: $1.81, 16-24:
$1.81, 25-36: $1.86, 37-48: $1.92, 49-60:
$1.98, 61-64: $2.04
Notes: Fitness Center
Loc Type:
Howe Former Verizon
1417 Howe Ave
Sacramento, CA 95825
Suite:
Free-Standing(non food)
Year Built / Renovated:
11
Lease Term:
Lease Exp Date:
Sublease:
TIs:
5,000 SF
Transaction SF: 5,000
$1.75 NNN
04/06/18 : 06/01/18
63 Months
08/31/23
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1979
Park Ratio:
Lessee:
Lessor: 4Swan Properties LP, Karen G. Swanson and RDKJ, In
Sleep Choice LLC
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.50/sf
Activity Type: New Lease
Trans ID: 100532881
Property Class:
TL Floors: Tenant Rep:
Landlord Rep: CBRE, Chris Campbell
Free Rent: 3 Months
Rent Steps: 4-15: $1.75, 16-27: $1.80, 28-39:
$1.86, 40-51: $1.91, 52-63: $1.97
Notes:
Loc Type:
We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors
should conduct your own investigation of the property and transaction.
Retail Lease Transactions (Image) 3 of 7 5/6/2019
(continued on next page)
Lease Comps (continued)
26
Re: Ardendale
FOR INFORMATION: Retail Lease Transactions
Lease Comp InformationProperty Information Additional Information
Fair Oaks Pointe
8525 Madison Avenue
Fair Oaks, CA 95628
Suite:
Neighborhood Center
Year Built / Renovated:
12
Lease Term:
Lease Exp Date:
Sublease:
TIs:
56,664 SF / 4.8 acres
Transaction SF: 2,386
$1.10 NNN
02/16/18 : 02/01/18
65 Months
07/01/23
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1986 / 2004
Park Ratio:
Lessee:
Lessor: CSS Properties, LLC
Tres Babes, LLC aba Kaia Fit
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.40/sf
Activity Type: New Lease
Trans ID: 100523089
Property Class:
TL Floors: Tenant Rep: Nor Cal Commercial, David Macko
Landlord Rep: CBRE, Chris Campbell
Free Rent: 5 Months
Rent Steps: 6-17: $1.10, 18-29: $1.13, 30-41:
$1.16, 42-53: $1.18, 54-65: $1.21
Notes: Fitness Center
Loc Type:
Arden Howe Plaza
1566 - 1612 Howe Avenue
Sacramento, CA 95825
Floor: 1 Suite: 2230D
Strip/In-Line Center
Year Built / Renovated:
13
Lease Term:
Lease Exp Date:
Sublease:
TIs:
30,297 SF
Transaction SF: 3,600
$1.10 NNN
02/01/18 : 02/05/18
As Is
120 months
01/31/28
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1980
Park Ratio:
Lessee:
Lessor: Arden Howe LLC
Thai Terrace
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.80/sf
Activity Type: New Lease
Trans ID: 100520275
Property Class:
TL Floors: Tenant Rep: Century 21 Select Real Estate, Brian
Serina
Landlord Rep: CBRE, Josh Schmidt
Free Rent: 6 months
Rent Steps: 7-12: $0.63, 13-24: $1.10, 25-36:
$1.13, 37-48: $1.17, 49-60: $1.24, 61-72:
$1.28, 73-84: $1.31, 85-96: $1.35, 97-108:
$1.39
Notes: Full Service. 6 months free. 6 months at 1/2
rent
Loc Type:
Park Place II
4690 - 4780 Natomas Boulevard
Natomas, CA 95835
Suite: 170
Community Center
Year Built / Renovated:
14
Lease Term:
Lease Exp Date:
Sublease:
TIs:
165,559 SF
Transaction SF: 3,000
$1.63 NNN
01/01/18 : 01/01/18
As Is
60 months
12/31/22
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
2004
Park Ratio:
Lessee:
Lessor: WCBMT 2005-C21 Retail LP
Leslie's Swimming Pool Supplies
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.67/sf
Activity Type: Renewal
Trans ID: 100518261
Property Class:
TL Floors: Tenant Rep: NONE
Landlord Rep: CBRE, Scott Carruth
Rent Steps: 1-36: $1.63, 37-48: $1.77, 49-60:
$1.83
Notes: Other
Loc Type:
San Juan Village
3291 Truxel Road
South Natomas, CA 95833
Suite: 18
Neighborhood Center
Year Built / Renovated:
15
Lease Term:
Lease Exp Date:
Sublease:
TIs:
109,106 SF
Transaction SF: 2,500
$1.75 NNN
11/07/17 : 05/01/18
As Is
60 months
04/30/23
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1987 / 2002
Park Ratio:
Lessee:
Lessor: Westcore Croydon LP
Natomas Fabric and Grocery
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.55/sf
Activity Type: Renewal
Trans ID: 100518259
Property Class:
TL Floors: Tenant Rep: NONE
Landlord Rep: CBRE, Scott Carruth
Rent Steps: 1-12: $1.75, 13-24: $1.80, 25-36:
$1.86, 37-48: $1.91, 49-60: $1.97
Notes: Quick Serve
Loc Type:
We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors
should conduct your own investigation of the property and transaction.
Retail Lease Transactions (Image) 4 of 7 5/6/2019
(continued on next page)
Lease Comps (continued)
27
Re: Ardendale
FOR INFORMATION: Retail Lease Transactions
Lease Comp InformationProperty Information Additional Information
Frazee Paints
2285 Arden Way
Sacramento, CA 95825
Suite:
Free-Standing(non food)
Year Built / Renovated:
16
Lease Term:
Lease Exp Date:
Sublease:
TIs:
6,336 SF
Transaction SF: 6,336
$1.35 NNN
11/01/17 : 11/01/17
$10.00/sf
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1965
Park Ratio:
Lessee:
Lessor: Demas Enterprises
Hustler Hollywood
No
Actual Rate:
Trans / Occ Date:
NNN, CAM:
Activity Type: New Lease
Trans ID: 100520099
Property Class:
TL Floors: Tenant Rep:
Landlord Rep:
Free Rent: 6 months Escalations: 3%
Notes:
Loc Type:
Natomas Town Center
2851 Del Paso Road
Natomas, CA 95835
Suite: 160
Neighborhood Center
Year Built / Renovated:
17
Lease Term:
Lease Exp Date:
Sublease:
TIs:
130,000 SF
Transaction SF: 4,305
$1.75 NNN
10/10/17 : 10/01/17
$50.00/sf
120 months
09/30/27
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
2005
Park Ratio:
Lessee:
Lessor: North Natomas Town Center, LLC
Dos Coyotoes Border Cafe
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $1.04/sf
Activity Type: New Lease
Trans ID: 100492172
Property Class:
TL Floors: Tenant Rep: CBRE, Heath Kastner
Landlord Rep: CBRE, Chris Campbell
Rent Steps: 1-60: $1.75, 61-120: $1.93
Notes: Quick Serve
Loc Type:
Natomas Landing
E Commerce Way
Natomas, CA 95834
Suite: B100
Strip/In-Line Center
Year Built / Renovated:
18
Lease Term:
Lease Exp Date:
Sublease:
TIs:
20,525 SF
Transaction SF: 3,070
$1.75 NNN
09/20/17 : 09/20/17
$60.00/sf
131 months
09/01/28
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
2008
Park Ratio:
Lessee:
Lessor: Natomas Landing
Sukhraman Dhillom and Gora Thind
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.62/sf
Activity Type: New Lease
Trans ID: 100489766
Property Class: B
TL Floors: Tenant Rep: CCP Real Estate, Sam Moore
Landlord Rep: CBRE, Chris Campbell
Free Rent: 11 months
Rent Steps: 12-23: $1.75, 24-35: $1.79, 36-47:
$1.84, 48-59: $1.88, 60-71: $1.93, 72-83:
$1.98, 84-95: $2.03, 96-107: $2.08, 108-119:
$2.13, 120-131: $2.19
Notes: Full Service
Loc Type:
Sunriver Village
2202 - 2286 Sunrise Boulevard
Rancho Cordova, CA 95670
Suite:
Neighborhood Center
Year Built / Renovated:
19
Lease Term:
Lease Exp Date:
Sublease:
TIs:
104,125 SF / 15.62 acres
Transaction SF: 2,250
$1.50 NNN
08/18/17 : 08/18/17
$10.00/sf
60 months
08/17/22
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1990
Park Ratio:
Lessee:
Lessor: REB Enterprises V, LLC
T-Mobile
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.40/sf
Activity Type: New Lease
Trans ID: 100485077
Property Class:
TL Floors: Tenant Rep: TRI Commercial, Christina Snyder
Landlord Rep: CBRE, Rick Martinez
Rent Steps: 1-12: $1.50, 13-24: $1.55, 25-36:
$1.60, 37-48: $1.65, 49-60: $1.70
Notes: Telephone
Loc Type:
We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors
should conduct your own investigation of the property and transaction.
Retail Lease Transactions (Image) 5 of 7 5/6/2019
(continued on next page)
Lease Comps (continued)
28
Re: Ardendale
FOR INFORMATION: Retail Lease Transactions
Lease Comp InformationProperty Information Additional Information
Natomas Village
3810 - 3890 Truxel Road
Natomas, CA 95834
Suite:
Strip/In-Line Center
Year Built / Renovated:
20
Lease Term:
Lease Exp Date:
Sublease:
TIs:
49,756 SF
Transaction SF: 2,185
$1.63 NNN
08/10/17 : 09/01/17
$18.00/sf
120 months
08/31/27
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
2005
Park Ratio:
Lessee:
Lessor: Fairway Plaza, LLC
Nothing Bundt Cakes
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.60/sf
Activity Type: New Lease
Trans ID: 100485496
Property Class: B
TL Floors: Tenant Rep: ProEquity Asset Management, Keith
Mellor
Landlord Rep: CBRE, Josh Schmidt
Free Rent: 6 months
Rent Steps: 7-60: $1.62, 61-120: $1.79
Notes: Bakery
Loc Type:
2243 Arden Way
Sacramento, CA 95825
Suite:
Free Standing(food)
Year Built / Renovated:
21
Lease Term:
Lease Exp Date:
Sublease:
TIs:
6,000 SF
Transaction SF: 6,000
$1.30 NNN
07/13/17 : 02/01/18
As Is
126 months
07/31/28
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1111
Park Ratio:
Lessee:
Lessor: Paul Jorjorian et al
Culici Town
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.10/sf
Activity Type: New Lease
Trans ID: 100484679
Property Class:
TL Floors: Tenant Rep: H&R Realty, Nora Herrera
Landlord Rep: CBRE, Rick Martinez
Free Rent: 6 months
Rent Steps: 7-18: $1.30, 19-30: $1.35, 31-42:
$1.45, 43-66: $1.50, 67-78: $1.60, 79-90:
$1.63, 91-102: $1.65, 103-114: $1.68,
115-126: $1.70
Notes: Full Service
Loc Type:
Greenback Square
8029 - 8085 Greenback Lane
Citrus Heights, CA 95610
Suite:
Strip/In-Line Center
Year Built / Renovated:
22
Lease Term:
Lease Exp Date:
Sublease:
TIs:
45,300 SF
Transaction SF: 3,870
$1.20 NNN
07/12/17 : 08/01/17
As Is
64 months
11/30/22
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1111
Park Ratio:
Lessee:
Lessor: Peter Bollinger Investment Company
Sleep Choice Mattress Center
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.42/sf
Activity Type: New Lease
Trans ID: 100481246
Property Class:
TL Floors: Tenant Rep: CBRE, Dave White
Landlord Rep: CBRE, Craig Burress
Free Rent: 4 months
Rent Steps: 5-10: $1.20, 11-28: $1.60, 29-40:
$1.65, 41-52: $1.70, 53-64: $1.75
Notes: Mattress
Loc Type:
Park Place II
4690 - 4780 Natomas Boulevard
Natomas, CA 95835
Suite: 140
Community Center
Year Built / Renovated:
23
Lease Term:
Lease Exp Date:
Sublease:
TIs:
165,559 SF
Transaction SF: 2,250
$1.75 NNN
06/29/17 : 07/01/17
$10.00/sf
126 months
12/30/27
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
2004
Park Ratio:
Lessee:
Lessor: WBCMT 2005-C21 Retail 4726 LP
Sourdough & Co
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.67/sf
Activity Type: New Lease
Trans ID: 100483199
Property Class:
TL Floors: Tenant Rep: NONE
Landlord Rep: CBRE, Scott Carruth
Free Rent: 6 months
Rent Steps: 7-12: $1.75, 13-24: $1.80, 25-36:
$1.86, 37-48: $1.91, 49-60: $1.97, 61-72:
$2.03, 73-84: $2.09, 85-96: $2.15, 97-108:
$2.22, 109-120: $2.28, 121-126: $2.35
Notes: Quick Serve
Loc Type:
We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors
should conduct your own investigation of the property and transaction.
Retail Lease Transactions (Image) 6 of 7 5/6/2019
(continued on next page)
Lease Comps (continued)
29
Re: Ardendale
FOR INFORMATION: Retail Lease Transactions
Lease Comp InformationProperty Information Additional Information
Quail Pointe
5303 - 5347 Sunrise Boulevard
Fair Oaks, CA 95628
Suite:
Community Center
Year Built / Renovated:
24
Lease Term:
Lease Exp Date:
Sublease:
TIs:
97,868 SF / 9 acres
Transaction SF: 5,731
$1.80 NNN
06/09/17 : 01/01/18
As Is
60 months
12/31/22
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1987
Park Ratio:
Lessee:
Lessor: Madison Sunrise Associates
Performance Bicycle
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.52/sf
Activity Type: Renewal
Trans ID: 100478222
Property Class:
TL Floors: Tenant Rep: NONE
Landlord Rep: CBRE, Craig Burress
Rent Steps: 1-12: $1.80, 13-24: $1.85, 25-36:
$1.91, 37-48: $1.96, 49-60: $2.02
Notes: Sporting Goods
Loc Type:
8042 Greenback Lane
Citrus Heights, CA 95610
Suite:
Free-Standing(non food)
Year Built / Renovated:
25
Lease Term:
Lease Exp Date:
Sublease:
TIs:
4,200 SF
Transaction SF: 4,074
$1.18 NNN
06/07/17 : 08/01/17
As Is
62 months
09/30/22
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1975
Park Ratio:
Lessee:
Lessor: Pat Kennelly
Mathew's Mattress
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.55/sf
Activity Type: New Lease
Trans ID: 100477438
Property Class:
TL Floors: Tenant Rep: NONE
Landlord Rep: CBRE, Craig Burress
Free Rent: 2 months
Rent Steps: 3-26: $1.18, 27-62: $1.30
Notes: Mattress
Loc Type:
6542 Fair Oaks Boulevard
Carmichael, CA 95608
Suite:No Image Available
Other Retail
Year Built / Renovated:
26
Lease Term:
Lease Exp Date:
Sublease:
TIs:
3,000 SF / 0.4 acres
Transaction SF: 3,000
$1.42 NNN
06/01/17 : 06/01/17
60 Months
05/31/22
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1993
Park Ratio:
Lessee:
Lessor: Polady Family Trust
Broadbase Inc. (Jiffy Lube Franchisee)
No
Actual Rate:
Trans / Occ Date:
NNN, CAM:
Activity Type: New Lease
Trans ID: 100563927
Property Class:
TL Floors: Tenant Rep:
Landlord Rep:
Notes: 6 bays total with 2 drive through pits. Three,
5-year Options to Renew.
Loc Type:
2220 Gold Springs Court
Gold River, CA 95670
Suite: 109No Image Available
Mixed Use Retail
Year Built / Renovated:
27
Lease Term:
Lease Exp Date:
Sublease:
TIs:
5,419 SF
Transaction SF: 5,036
$1.37 NNN
05/01/17 : 05/01/17
As Is
126 months
10/31/27
Property Dev Type:
Property Status: Existing
Bldg / Site Size:
1989
Park Ratio:
Lessee:
Lessor: Gold River Village Associates
Mountain Mike's
No
Actual Rate:
Trans / Occ Date:
NNN Charges: $0.35/sf
Activity Type: New Lease
Trans ID: 100475656
Property Class:
TL Floors: Tenant Rep: Turton Commercial, Jon Lang
Landlord Rep: CBRE, Scott Carruth
Free Rent: 6 months
Rent Steps: 7-18: $1.37, 19-30: $1.42, 31-42:
$1.46, 43-54: $1.50, 55-66: $1.55, 67-78:
$1.59, 79-90: $1.64, 91-102: $1.69, 103-114:
$1.74, 115-126: $1.79
Notes: Full Service
Loc Type:
TOTAL Transactions: 27 Transaction SF: 102,942
We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors
should conduct your own investigation of the property and transaction.
Retail Lease Transactions (Image) 7 of 7 5/6/2019
Lease Comps (continued)
30
Sale Comps
2901-2989 ARDEN WY. SACRAMENTO 95825
2300-2330 NORTHGATE BL. SACRAMENTO
2917-2999 FULTON AVE. SACRAMENTO 95821
4141 MANZANITA AVE. CARMICHAEL
2648 WATT AVE. SACRAMENTO 95821
6406-6472 FAIR OAKS BL. CARMICHAEL
SUBMARKET TBD 2/28/19 5/8/18 10/23/17 9/27/17 5/15/17
DATE SOLD Investment Investment Investment Investment Investment
PURCHASER TBDRedwood Properties
TracyEpona Investment Group
StocktonConrad Properties
VHZ Investments Rancho Cordova
C. Tran San Jose
TENANT(S)California Backyard, Total
Beauty Experience, more…Nine Multi Four Four
Multiple, Subway, Papa Murphy's
YEAR BUILT 1972 2009 1951 1985 1992 1988
OCCUPANCY 100% 100% 40% 75% 90% 50%
PRICE $7,100,000 $3,600,000 $13,000,000 $2,549,500 $3,176,500 $5,475,000
CAP RATE ACTUAL 7.60% 6.1% n/a 4.7% 7.5% unreported
PROPERTY SIZE 50,021 16,720 125,600 20,263 14,288 69,388
PRICE/SF $142 $215 $104 $126 $222 $79
ADJUSTMENTS TO VALUE
MARKET TIMING - 0% 0% 5% 5% 5%
LOCATION - 10% 0% 5% 0% 10%
AGE/CONDITION - -25% 15% -5% -5% -5%
OCCUPANCY - -5% 30% 10% 0% 35%
TOTAL ADJUST. - -20% 45% 15% 0% 45%
ADJUSTED VALUE $7,100,000 $2,880,000 $18,850,000 $2,931,925 $3,176,500 $7,938,750
ADJ. VALUE PSF $142 $172 $150 $145 $222 $114
NOTES REO
1 2 3 4 5
31
Sale Comps: Map
1
2
3
45
MAP PROPERTY
Subject - Ardendale, 2901-2989 Arden Wy., Sacramento
1 2300-2330 Northgate Blvd, Sacramento
2 2917-2999 Fulton Ave., Sacramento
3 4141 Manzanita Ave., Carmichael
4 2648 Watt Ave., Sacramento
5 6406-6472 Fair Oaks Blvd., Carmichael
NMAP NOT TO SCALE
32
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
© 2019 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. 20524193-274301
33
RANDY GETZ
Executive Vice PresidentLic. 00828903 +1 916 446 [email protected]
CBRE, Inc.500 Capitol MallSuite 2400Sacramento, CA 95814
INVESTMENT CONTACT
LOCAL MARKET CONTACT
RICK MARTINEZ
Senior Vice PresidentLic. 00991459 +1 916 446 [email protected]
2901-2989 Arden WaySacramento, California