for sale billboard easement off us-101€¦ · for sale billboard easement off us-101 2055...

FOR SALE

BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054

www.svnfgg.com All Sperry Van Ness® Offices Independently Owned & Operated. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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FOR SALE


S A L E S O V E R V I E W

Sales Price $2,125,000

NOI $106,249

Cap Rate 5%

P R O P E R T Y D E S C R I P T I O N

SVN | FGG is excited to bring this unique opportunity to own an easement for an outdoor billboard along Highway 101 in the SF Bay Area. Currently leased to Clear Channel Outdoor Holdings, Inc (NYSE: CCO) on a NNN lease for a 24 year term expiring in 2041. The lease provides for an opportunity to increase base rents every three years through 2031. Easement ownership does qualify for 1031 Exchange. Easement on the property is held in perpetuity and there no obligations to the property owner for maintaining this easement.

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FOR SALE


P R O P E R T Y H I G H L I G H T S

• Rare opportunity to own an easement controlling

Highway 101 billboard

• 1031 Exchange qualified (please consult your tax

advisor)

• Long-term lease (24 years remaining) with NYSE

traded company

• Lease provides an opportunity to increase base rent

every three years through 2031

• High traffic counts of approximately 200,000 VPD

• High barriers of entry for additional billboards to be

constructed along Hwy 101

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FOR SALE


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I N C O M E S U M M A R Y

Annual Base Rent $106,249

Annual Percentage Rent * $0

Total $106,249

E X P E N S E S U M M A R Y

Annual Gross Expenses $0

Net Operating Income $106,249

L E A S E S U M M A R Y

Tenant Name Lease Starts Lease Ends Annual Rent

Clear Channel 11/1/2009 8/31/2041 $106,249

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*Lease contains percentage rent clause in addition to base rent, however none is currently projected.

FOR SALE


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L O C AT I O N M A P

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A R I E L M A P

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FOR SALE


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US-101 South Bound View US-101 North Bound View US-101 North Bound View

P H O T O S

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T E N A N T P R O F I L E

Clear Channel Outdoor, traded on NYSE, is one of the world’s largest outdoor advertising companies with more than 675,000 displays reaching more than half a billion people in more than 40 countries on five continents each month. Clear Channel Outdoor help advertisers create inspiring out-of-home campaigns via traditional and digital display formats in roadside, urban, transit and airport environments, on street furniture and at retail near point of sale. In the U.S., Clear Channel Outdoor operates in 45 of the top 50 U.S. markets and is the leading outdoor advertising company with the fastest-growing digital outdoor network now surpassing 1,110 displays.

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FOR SALE


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O N G O I N G A S S E T M A N A G E M E N T - O P T I O N A L

For $100 per month, First Guardian Group will manage your property and collect and distribute rents on your behalf.

Cash Application • Post Payments • Reconciliation • Investor Reporting

Lease Administration • Tenant Payment • Conversion • Post-closing Follow Up • Tenant Relations

Asset Management • Lease Renewals and Amendments • Documents and Consents • Landlord Relations

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FOR SALE


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P E R P E T U A L G R O U N D L E A S E E A S E M E N T S T R U C T U R E

Advertisers

Rent and Lease Agreement

Property Owners

Easement Owner

Rent and Lease Agreement

Perpetual Easement

• Real property interests underlying operationally essential infrastructure • Effectively triple net lease rents with no operating expenses or capex • Contractual rent escalators with upside

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U.S. OUTDOOR ADVERTISING REVENUE ($ in Billions)

FOR SALE


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$6.9 $7.0 $7.3 $7.7 $8.0 $8.3 $8.7 $9.0 $9.4 $9.7 $10.1 $10.5 $10.9 $11.3

More than 165,000 locations

• Outdoor advertising has been steadily growing in the US • Increasing traffic congestion on US-101 may lead to higher future valuation of billboard easements

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G R O W I N G T R E N D

AVERAGE DAILY TRAFFIC ON US-101 (Number of Vehicles Per Hour)

2005 10,100

2010 11,900

2015 14,800

Source: Outdoor Advertising Association of America Source: U.S. Department of Transportation

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FOR SALE


2 0 1 3 ( A U G T O D E C ) R E V E N U E B R E A K D O W N

Statement Period Base Rent Monthly Net Advertising Revenue Share % Percentage Rent Total Rent

Aug 2013 6,690.35 31,089.28 43.0% 6,678.04 13,368.39

Sep 2013 6,600.00 26,105.18 48.5% 6,061.01 12,661.01

Oct 2013 6,509.65 27,768.39 48.5% 6,958.02 13,467.67

Nov 2013 6,600.00 23,869.05 48.5% 4,976.49 11,576.49

Dec 2013 6,600.00 23,181.88 48.5% 4,643.21 11,243.21

Totals 33,000.00 132,013.78 29,316.77 62,316.77

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FOR SALE


2 0 1 4 R E V E N U E B R E A K D O W N


Jan 2014 6,600.00 23,306.07 48.5% 4,703.44 11,303.44

Feb 2014 6,600.00 24,000.00 48.5% 5,040.00 11,640.00

Mar 2014 6,600.00 9,571.43 48.5% - 6,600.00

Apr 2014 6,600.00 10,714.29 48.5% - 6,600.00

May 2014 6,600.00 8,571.43 48.5% - 6,600.00

Jun 2014 6,600.00 16,785.71 48.5% 1,541.07 8,141.07

Jul 2014 6,600.00 21,428.57 48.5% 3,792.86 10,392.86

Aug 2014 6,600.00 14,111.61 48.5% 244.13 6,844.13

Sep 2014 6,600.00 21,535.71 48.5% 3,844.82 10,444.82

Oct 2014 6,600.00 23,125.00 48.5% 4,615.63 11,215.63

Nov 2014 6,600.00 21,964.29 48.5% 4,052.68 10,652.68

Dec 2014 6,600.00 21,000.00 48.5% 3,585.00 10,185.00

Totals 79,200.00 216,114.11 31,419.63 110,619.63

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FOR SALE




Jan 2015 6,600.00 13,785.71 48.5% 86.07 6,686.07

Feb 2015 6,600.00 19,364.65 48.5% 2,791.86 9,391.86

Mar 2015 6,600.00 10,883.23 48.5% - 6,600.00

Apr 2015 6,600.00 21,964.28 48.5% 4,052.68 10,652.68

May 2015 6,600.00 25,132.15 48.5% 5,589.09 12,189.09

Jun 2015 6,600.00 23,378.57 48.5% 4,738.61 11,338.61

Jul 2015 6,600.00 17,303.57 48.5% 1,792.23 8,392.23

Aug 2015 6,600.00 17,503.58 48.5% 1,889.24 8,489.24

Sep 2015 6,600.00 19,607.15 48.5% 2,909.47 9,509.47

Oct 2015 6,600.00 12,446.42 48.5% - 6,600.00

Nov 2015 6,600.00 19,821.44 48.5% 3,013.40 9,613.40

Dec 2015 6,600.00 19,196.42 48.5% 2,710.26 9,310.26

Totals 79,200.00 220,387.17 29,572.90 108,772.90

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FOR SALE




Jan 2016 6,600.00 18,017.86 48.5% 2,138.66 8,738.66

Feb 2016 6,600.00 25,696.43 48.5% 5,862.77 12,462.77

Mar 2016 6,600.00 29,339.28 48.5% 7,629.55 14,229.55

Apr 2016 6,600.00 26,464.28 48.5% 6,235.18 12,835.18

May 2016 6,600.00 23,267.87 48.5% 4,684.92 11,284.92

Jun 2016 6,600.00 13,821.42 48.5% 103.39 6,703.39

Jul 2016 6,600.00 20,160.72 48.5% 3,177.95 9,777.95

Aug 2016 6,600.00 12,946.43 48.5% - 6,600.00

Sep 2016 8,854.07 12,767.85 48.5% - 8,854.07

Oct 2016 8,854.07 7,857.14 48.5% - 8,854.07

Nov 2016 8,854.07 24,642.86 48.5% 3,097.72 11,951.79

Dec 2016 8,854.07 19,196.42 48.5% 456.19 9,310.26

Totals 88,216.28 234,178.56 33,386.32 121,602.60

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FOR SALE


2 0 1 7 Y T D R E V E N U E B R E A K D O W N


Jan 2017 8,854.07 10,517.86 48.5% - 8,854.07

Feb 2017 8,854.07 9,500.00 48.5% - 8,854.07

Mar 2017 8,854.07 10,517.86 48.5% - 8,854.07

Apr 2017 8,854.07 19,706.35 48.5% 703.51 9,557.58

Totals 35,416.28 50,242.07 703.51 36,119.79

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FOR SALE


C O N TA C T

For more information, please contact: Paul Getty President and Managing Director (408) 392-8822 [email protected] BRE# 01705899

Office Location: 777 North First Street, Suite 720 San Jose, CA 95112

All Sperry Van Ness® Offices Independently Owned & Operated. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Erik Carlson Senior Advisor and Vice President (408) 392-8822 [email protected] BRE# 01347649

Jane Lee Associate Advisor (408) 392-8822 [email protected] BRE# 01913569

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