Guerneville Plaza Building
OFFERING MEMORANDUM
Guerneville Plaza Building
Guerneville, CA | Sonoma County
www.preservewestcapital.com
Preserve West Capital and JLL (“Broker”) has been retained on an exclusive basis to market the property described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
Disclaimer
www.preservewestcapital.com
TABLE OF CONTENTS
PROPERTY HIGHLIGHTS
1
PROPERTY OVERVIEW
2
FINANCIAL ANALYSIS
3
RENT ROLL
6
TENANT PROFILES
8
AERIALS
9
ABOUT THE AREA
10
DEMOGRAPHICS
13
John Schaefer
Executive Vice President
415.299.6855
john.schaefer@am.jll.com
CA RE License #01251740
Putnam Daily
Partner
415.445.5107
putnam@preservewc.com
CA RE License #01750064
Michael Maffia
Managing Partner
415.373.4060
mike@preservewc.com
CA RE License #01340853
Ma
in
S
t
F
ir
st
S
t
Johnson’s
Beach
Guerneville Plaza Building
•
Prominent Hard Corner Location in Downtown Guerneville
•
Potential 6.48% Year 2 Return Following Lease-Up
•
Popular Tourist Destination in Heart of California’s Wine
Country
-
7.4 Million Tourists Visit Sonoma County Annually,
Spending $1+ Billion
-
Within 2 Hours’ Drive of San Francisco Bay Area
•
Strong Demographics within Trade Area
-
Average Household Income of $94,223
PROPERTY HIGHLIGHTS
PRESERVE WEST CAPITAL
|
1
•
Trade Area Reaches from Santa Rosa to the Coast
•
Excellent Access and Visibility Along River Road/
Main Street
-
10,800 AADT
•
Only 75 Miles from San Francisco
•
Vacation and Resort Area Highly Trafficked in
Summer Season Along Russian River
-
Approximately 1 Block from Johnson’s Beach, a
PROPERTY OVERVIEW
ESTIMATED VALUE RANGE
PRESERVE WEST CAPITAL
|
2
Tenant Profiles
Equality Vines is the world’s first cause wine portfolio dedicated to
equality for lesbian, gay, bisexual, and transgendered people. The
winery partners with well-known winemakers around the region
and gives a portion of every sale to lesbian, gay, bisexual, transgender and queer-friendly
charities, as well as the League of Women Voters, and was co-founded by Jim Obergefell, the
lead plaintiff in the supreme court case which legalized gay marriage nationwide in 2015.
Amber’s Salon provides haircuts, hairstyling, and other hair salon
services.
Amber’s Salon
Location
The property is located at 16215 Main Street in Guerneville, California.
Lot Size
Approximately 0.084 acres or 3,659 square feet.
Improvements
A 3,659 square foot retail building demised into 4 retail suites with
additional hallway, bathroom, ADA entrance, and basement space.
Equality Vines | 757 square feet
Amber’s Salon | 386 square feet
Vacant | 664 square feet with additional 144 square foot shipping
area
Vacant | 517 square feet
Basement & Attic Improvements
Premises include additional usable basement space of approximately
2,927 square feet.
In addition, the premises include a semi-finished attic which could be
developed into residential space.
Parking
FINANCIAL ANALYSIS
PRESERVE WEST CAPITAL
|
3
Projected Gross Revenue
YEAR 1
YEAR 2
Scheduled Base Rental Revenue
$47,400
$88,826
Expense Reimbursement Revenue
$9,087
$23,525
Total Potential Gross Revenue
$56,487
$112,351
Effective Gross Revenue
$56,487
$112,351
YEAR 1
YEAR 2
Net Operating Income
$24,227
$77,649
CAP Rate
1.92%
6.14%
Annual Expenses
Common Area Maintenance
$7,530
$7,756
Insurance
$7,855
$8,091
Taxes
$15,180
$15,484
Management @ 3%
$1,695
$3,371
Total Operating Expenses
$32,260
$34,702
Note
The net income is an estimate and does not provide for all potential costs and expenses (i.e. maintenance, repair, etc.) that may be required of the owner. Any reserves set forth herein are merely estimates and not based on any experience, physical inspection, or prior knowledge. All prospective purchasers are strongly advised to make an independent investigation to determine their estimate of costs and expenses prior to entering into an agreement to purchase.
PRICING
PRICE
$1,265,000
General Assumptions
Analysis Date
January 2021
Total Rentable Area
2,324 SF
Total Area for CAM
Reimbursement Calculations
2,324 SF
General Inflation per Annum
3%
General Expense Growth
per Annum
3%
Real Estate Tax Growth
per Annum
2%
Management Fee
3% of EGR
PRESERVE WEST CAPITAL
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4
FINANCIAL ANALYSIS
GENERAL ASSUMPTIONS
FIRST STREET MAIN STREET Guerneville Plaza
Amber’s
Salon
Vacant 664 SF Vacant 517 SF 386 SF 757 SFPRESERVE WEST CAPITAL
|
5
FINANCIAL ANALYSIS
CASH FLOW PROJECTION
Guerneville Plaza
Cash Flow Projection
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Jan-2021 Jan-2022 Jan-2023 Jan-2024 Jan-2025 Jan-2026 Jan-2027 Jan-2028 Jan-2029 Jan-2030 Jan-2031 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029 Dec-2030 Dec-2031
Net Rentable Area - Sq. Ft.
2,324
Base Rental Revenue PSF/mo.
$1.70
$3.29
$3.36
$3.44
$3.37
$3.42
$3.63
$3.68
$3.74
$3.81
$3.86
Total Operating Expenses PSF/yr.
$13.88
$14.93
$15.35
$15.73
$16.09
$16.59
$16.99
$17.46
$17.89
$18.22
$19.89
Absorption & Turnover Vacancy %
-
2.6%
-
-
4.2%
-
2.5%
-
-
4.4%
-General Vacancy %
-
-
-
-
-
-
-
-
-
-
-Potential Gross Revenue
Base Rental Revenue
47,400
91,772
93,798
96,003
93,961
95,342
101,177
102,708
104,386
106,114
107,707
Absorption & Turnover Vacancy
-
(2,946)
-
-
(5,402)
-
(3,415)
-
-
(6,262)
-Scheduled Base Rental Revenue
47,400
88,826
93,798
96,003
88,559
95,342
97,762
102,708
104,386
99,852
107,707
Expense Reimbursement Revenue
9,087
23,525
24,773
25,408
33,193
36,301
36,091
38,224
39,162
37,576
43,529
Total Potential Gross Revenue
56,487
112,351
118,571
121,411
121,752
131,643
133,853
140,932
143,548
137,428
151,236
General Vacancy
-
-
-
-
-
-
-
-
-
-
-Effective Gross Revenue
56,487
112,351
118,571
121,411
121,752
131,643
133,853
140,932
143,548
137,428
151,236
Operating Expenses
CAM - $3.24
7,530
7,756
7,988
8,228
8,475
8,729
8,991
9,261
9,538
9,825
10,119
Insurance - $3.38
7,855
8,091
8,333
8,584
8,841
9,106
9,379
9,661
9,951
10,249
10,557
Taxes @ 1.2%
15,180
15,484
15,793
16,109
16,431
16,760
17,095
17,437
17,786
18,142
21,004
Management @ 3%
1,695
3,371
3,557
3,642
3,653
3,949
4,016
4,228
4,306
4,123
4,537
Total Operating Expenses
32,260
34,702
35,671
36,563
37,400
38,544
39,481
40,587
41,581
42,339
46,217
NET OPERATING INCOME
24,227
77,649
82,900
84,848
84,352
93,099
94,372
100,345
101,967
95,089
105,019
Leasing & Capital Costs
Tenant Improvements
-
4,970
-
-
10,650
-
5,761
-
-
12,346
-Leasing Commissions
-
3,519
-
-
6,453
-
4,080
-
-
7,480
-Total Leasing & Capital Costs
-
8,489
-
-
17,103
-
9,841
-
-
19,826
-Cash Flow Before Debt Service
24,227
69,160
82,900
84,848
67,249
93,099
84,531
100,345
101,967
75,263
105,019
INTERNAL RATE OF RETURN - 10 Year Hold
EXIT SALE CALCULATION - End of Year 10
IRR Price Per SF Cap Year 1 Total Dollars Per SF
