26
CAPITAL MARKETS | INVESTMENT PROPERTIES 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants NNN Leases $13,300,000 8.28% Cap $114.60 psf OFFERING MEMORANDUM

384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

  • Upload
    lecong

  • View
    215

  • Download
    2

Embed Size (px)

Citation preview

Page 1: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

CAPITAL MARKETS | INVESTMENT PROPERTIES

384 N. Sunrise AvenueROSEV ILLE , C AL I FORNIA

Fully-Leased to Three Tenants • NNN Leases

$13,300,000 • 8.28% Cap • $114.60 psf

OFFERING MEMORANDUM

Page 2: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

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

© 2017 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. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. 20823173-199539

2

Page 3: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

INVESTMENT CONTACT

RANDY GETZExecutive Vice PresidentLic. 00828903+1 916 446 [email protected]

LOCAL MARKET CONTACT

JON SCHULTZSenior Vice PresidentLic. 00844740+1 916 446 [email protected]

CBRE, Inc.500 Capitol Mall, Ste. 2400Sacramento, CA 95814

CONTENTS

3

Page 4: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

EXECUTIVE SUMMARY

Page 5: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

As exclusive advisor CBRE is pleased to offer for sale a portion of Center Pointe Shopping Center, a 99%-leased power center in the upscale and steadily-growing city

of Roseville, California.

The Subject offering consists of a building at the north end of the Center that measures approximately 116,000 square feet on 11.5 acres improved with a paved

parking field for 672 vehicles.1 The building has been demised into three spaces: John’s Incredible Pizza has leased 52,000 square feet since 2006; AutoNation is

leasing 37,443 square feet as of December 2016, and V&S Enterprises, dba Rockin’ Jump, which opened in May 2017.

The Property is offered for sale priced at $13,300,000 which equates to $114.60 per square foot. At the asking price the yield on leases-in-place is 8.28%. All leases

are NNN. Our 10-year discounted cash flow analysis projects a cash IRR of 13.24% and an annual leveraged return of 23.63% utilizing debt as modeled.

1 Source: 2006 ALTA survey map

Center Pointe

Sh

opping Center

Roseville Automall

EUREKA RD

N SUNRISE AVE

LEAD HILL BLVD

THE OFFERING

5

Page 6: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

EUREKA RD

N

SU

NRI

SE A

VE

6

Page 7: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

The entire Center Pointe Shopping Center contains 472,800 square feet anchored by Home Depot, Pet Club, 24 Hour Fitness, and Pacific Sales. The Center lies

between Sunrise Ave. and I-80 immediately south of Eureka Rd. in Roseville, California, and consists of 20 stores on 18 separate parcels. In addition to the anchors, co-

tenants include the occupants within the Subject, as well as Shane Co. Jewelers, Honda Motorsports, Wendy’s, Bob’s Cycle Center, The Good Feet Store and Taco Bell.

John’s Incredible Pizza and Rockin’ Jump are examples of an emerging global and national trend to backfill space vacated by prototypical retailers with “activity”

tenants that have a business model immune to competition from online marketers like Amazon. The article accessed via the following link provides an excellent

summary of the trend: “Kiddie Activity Hubs Seen as Way to Make Malls Amazon-Proof” (National Real Estate Investor).

The Property enjoys excellent freeway visibility and is accessible at three points from N. Sunrise Ave., Eureka Road, and Lead Hill Boulevard. Traffic volume is high

due to the proximity of the freeway and the Eureka Rd. off-ramp. Average daily traffic on Sunrise Ave. is 25,218 vpd, on Eureka Rd. 31,186 vpd, and on I-80 it is

157,000 vpd. The Roseville Auto Mall, the region’s largest with 109 acres and 16 dealerships, is directly across Sunrise Avenue from the Subject.

LEA

D H

ILL

BLV

DEU

REKA RD

N SUNRISE AVE

7

Page 8: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

PROPERTY TYPE Retail power center (a portion of)

PROPERTY NAME Center Pointe Shopping Center

ADDRESS OF SUBJECT 384 N. Sunrise Ave., Roseville, California

NET RENTABLE AREA 116,058 square feet

OCCUPANCY/

TENANTS/LEASE TYPE100% / Three tenants / all NNN

OFFERING PRICE $13,300,000 ($114.60 psf)

PROJECTED YIELDS

Capitalization rate: 8.28%

Cash IRR: 12.68%

Leveraged IRR: 23.63% (10-year discounted cash flow projection)

YEAR BUILT 1992

CONSTRUCTION TYPE Concrete tilt-up wall panels with interior steel columns.

• Fully leased to three tenants

• Low (4.3%) submarket retail vacancy

• NNN leases

• High traffic counts and freeway visibility

• Part of a well-anchored power center with 99% occupancy

• Strong local demographics

INVESTMENT HIGHLIGHTS

OFFERING SUMMARY

(opening May 2017)

8

Page 9: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

TENANT SF LEASED COMMENCE EXPIRES RENT PSF

John’s Incredible Pizza 52,000 Oct. 2006 Feb. 2022 $13.00

AutoNation 37,443 Dec. 2016 Feb. 2022 $7.64

Rockin’ Jump (1) 25,046 Feb. 2017 Jan. 2028 $8.40

(1) Lease expires 120 months after the rent commencement date. Please see sections 1.4 and 4.2 of the lease and the First Amendment which restates section 1.5 for

further detail.

EUREKA RD

4 grade-level doors

7 dock-high doors

TENANT SUMMARY

9

Page 10: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

Roseville is considered one of the region’s most desirable communities in which to live, work, and raise a family. It offers a wide range of housing choices. A high

percentage of its residential stock is less than 25 years old, mostly in the upper-middle and executive price ranges. Roseville is known for excellent schools and for

large, newer retail destinations that feature a wide array of national retailers.

Retail vacancy in the South Placer submarket is trending down while market rents are rising. In Roseville proper, where the Subject is located, retail vacancy at the end

of 2Q 2017 measured only 4.3%. In 2016 a remarkable 57% of the Sacramento region’s total net absorption of retail space occurred in the South Placer submarket.

The Subject enjoys extraordinary visibility as it is bounded by three busy arterials and the I-80 freeway. It is across the street from the region’s largest and busiest auto

mall and roughly one mile from its largest and most successful shopping mall, the 1.9-million square foot Westfield Galleria.

Fountains at Roseville

Creekside Town CenterGalleria at Roseville

Roseville Automall

Fountains at Roseville

Galleria at Roseville

Golfland Sunsplash

AREA OVERVIEW

10

Page 11: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

EXECUTIVE SUMMARY

PROPERTY OVERVIEW

Page 12: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

NAME Center Pointe Shopping Center

ADDRESS (SUBJECT) 384 North Sunrise Avenue, Roseville, California 95661

COUNTY Placer

PARCEL NUMBER / AREA 048-451-022 / ±11.5 acres

PARKING 672 spaces (2006 ALTA survey map)

YEAR BUILT 1992

FLOOD ZONE Zone X. Outside the 500-year floodplain, per Flood Zone Panel 060243-06061C0479G dated 11/21/01.

SEISMIC Subject is not in a seismic Special Studies Zone as defined by the Alquist-Priolo Earthquake Fault Zone Act.

CONSTRUCTION TYPE Perimeter concrete tilt-up walls with interior steel columns.

EXTERIOR Painted concrete; painted stucco-faced portico

FOUNDATION Concrete

ROOF Steel trusses and steel decking. Roof was replaced in September 2013 and is still under warranty.

LOADING Seven dock-high loading doors and four grade level doors.

HVAC Roof-mounted package units

SECURITY/FIRE Automatic fire sprinkler system.

ELECTRICAL All spaces 277/480V; Suites 130 and 170: 600 amps;

PROPERTY SUMMARY

12

Page 13: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

The site is an irregularly-shaped parcel measuring approximately 11.5 acres that is part of the Center Pointe Shopping Center comprising 47 acres and 20 stores

on 18 separate parcels. The Subject enjoys 422 lineal feet of frontage with driveway access on Eureka Road and is otherwise surrounded by the rest of the shopping

center. The paved parking lot includes accommodation for 672 cars as shown on the 2006 ALTA survey map.

EUREKA RD N SU

NRISE AVE

SITE DESCRIPTION

13

Page 14: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

PARCEL MAP

14

Page 15: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

ROS

EVILLE

www.rosevilleautomall.com

N SUNRISE AVE

EUREKA RD

NNOT TO SCALE --ALL DIMENSIONS

ARE APPROXIMATE.

SITE PLAN

15

Page 16: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

FINANCIAL

(opening May 2017)

Page 17: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

The offering price is $13,300,000 which equates to

$114.60 per square foot and an initial capitalization rate of

8.28%. Using prospective debt as modeled in our 10-year

cash flow analysis the projected annual return is 23.63%.

Net operating income is $1,100,730 which includes a 5%

vacancy and collection loss allowance.

Additional information related to the financial performance

of the asset is set forth on the following page.

Purchase Price: $13,300,000

Net Rentable Area 116,058

Price per Square Foot $114.60

Potential Financing:

Type Proposed

Interest Rate 4.25%

Principal Amount 65% $8,645,000

Down Payment $4,655,000

Amortization (years) 30

Years Due 10

Estimated Monthly Payment $42,528

Estimated Annual Payment $510,338

Scheduled Gross Income $1,174,283

plus expense reimbursements $296,788

Adjusted Scheduled Gross Income $1,471,071

less 5% vacancy and collection ($73,554)

Effective Gross Income $1,397,518

less Operating Expenses ($296,788)

Net Operating Income $1,100,730

Estimated Annual Debt Service ($510,338)

Pre-Tax Cash Flow $590,391

Initial Capitalization Rate 8.28%

Initial Cash-on-Cash Return 12.68%

Argus™ Unleveraged IRR 13.24%

Argus™ Leveraged IRR 23.63%

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

FINANCIAL SUMMARY

17

Page 18: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

The rent roll sets forth current rents for each tenant and shows the dates of scheduled rent increases and options to extend. Any unamortized rent abatement on the Rockin’ Jump

lease will be absorbed by Seller. Note that even though Rockin’ Jump does not pay base rent on the storage space, it does reimburse its full pro rata share of operating expenses.

Annual rents are for the 12 months commencing November 1, 2017 including scheduled increases

LEASE TERM CURRENT BASE RENT ESCALATIONS OPTIONS

SUITE TENANTRENTABLE

SQ. FT. START END MONTHLY PER

SQ. FT. ANNUAL LEASE TYPE DATE

NEW MO. RENT

PER SQ. FT.

NO. X TERM

OPTION RENT PRO RATA

150 John’s Incredible Pizza (1) 52,000 Oct-06 Sep-21 $56,333 $1.08 $676,000 nnn flat - - 3x5-yr. CPI 44.8%

170 AutoNation (2) 37,443 Dec-16 Feb-22 $23,832 $0.64 $287,899 nnn Mar-18 $24,311 0.65 2x5-yr. $27,523 32.3%

Mar-19 $25,389 0.68

Mar-20 $25,868 0.69

Mar-21 $26,721 0.71

130 Rockin’ Jump (3) 25,046 Feb-17 Jan-28 $17,532 $0.70 $210,384 nnn Feb-23 $19,285 0.77 2x5-yr. $21,214 21.6%

Storage Rockin’ Jump (4) 1,569 Dec-16 Mar-28 - - - nnn - - - - - 1.4%

116,058 $97,697 $0.84 $1,174,283 100.0%

Expenses shown are based

on Owner’s 2017 budget,

but with property taxes

adjusted to approximate

a re-assessment following

sale. All three leases are

NNN.

Occupancy %: 100% 100% 95%

2017 BUDGET ARGUS INPUT PRO FORMA

Ad Valorem Property Taxes 164,919 1.093% $145,409

Direct Levies - 37,622 37,622

Electricity 15,882 15,882 15,882

Sewer, Water 18,944 18,944 18,944

Insurance 14,255 14,255 14,255

Management (3% of EGI) 31,868 2.50% 35,333

Repairs and Maintenance 12,943 12,943 12,943

Janitorial / Cleaning - - -

HVAC - - -

Security - - -

Landscaping / Parking 16,400 16,400 16,400

TOTAL OPERATING EXPENSES $275,211 n/a $296,788

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

(1) Option rents are based on CPI, but in no event less than a 10% increase from previous term. Ten percent increase modeled. Carve-out for structural, but replacements are reimbursable if amortized over useful life. (2) Option to terminate at the end of 36 months with payment of penalty and unamortized leasing costs. Does not reimburse capital items. (3) Tenant received permits on February 13, 2017 and rent commences January 13, 2018. Seller will credit Purchaser for any free rent. The lease expires 1/31/2028. Triple-net reimbursements commence three months following receipt of permits. Capital replacements are reimbursable if amortized over the useful life of the item. (4) Pays NNN charges only; no rent.

RENT ROLL

EXPENSES

18

Page 19: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

TENANCY

Page 20: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

www.johnspizza.com

In September of 1997 John’s Incredible Pizza founder, John Parlet, opened the first John’s Incredible Pizza Company – a 16,000 square foot location in Victorville, California. Almost 20 years later, with 11 locations, the typical John’s footprint has grown to over 50,000 square feet with an all-you-can-eat buffet, multiple dining rooms, and more than 100 exciting rides, games, and other attractions.

What makes John’s business model successful is the combination of food on one side of the venue and fun on the other. Upon entering guests discover a family-style buffet with many items made from scratch. The buffet features a variety of freshly-made pizzas, fried chicken, pasta with homemade sauces, a large salad bar, soups, potato bar, and desserts. Guests can enjoy their meal in one of many themed dining rooms, including the Tahoe-style “Cabin Fever”, the kid favorite “Toon Time Theatre”, or “Hall of Fame” sports room with big screen TVs. On the other side guests of all ages enjoy Fun World – filled with games, rides and other attractions, including adult-sized Bumper Cars; an intense spinning experience called Twister; Mini Bowling Alley and Air IncrediBear, a swinging airplane. Each venue features numerous party rooms for birthdays, private events and even business meetings.

In January 2017 John’s Incredible Pizza Company announced that in the spring it will be opening a new 65,000 square foot family entertainment center that can accommodate up to 1,000 guests at the newly-renovated NewPark Mall in Newark, California. The shopping center is owned by national retail developer and operator, Rouse Properties. The venue will be located in the mall’s new restaurant pavilion. John’s will add approximately 250 jobs to the local area.

(NYSE: AN)

www.autonation.com

AutoNation, founded in 1996, is the largest automotive retailer in the United States and the leading provider of new and pre-owned vehicles. AutoNation owns and operates 310 franchises throughout the country. It is traded on the New York Stock Exchange and has a market capitalization in January 2017 of $5.3 billion.

For the year ending December 31, 2016 the Company reported net earnings of $431 million on revenues of $21.6 billion. For the quarter ending June 30, 2017 the Company reported net earnings of $87.7 million on revenues of $5.28 billion. The Company reported $52.5 million in cash and cash equivalents on hand and stockholder equity of $2.5 billion. The Company’s long-term debt is rated BBB-/Stable and its short term debt A-3 by Standard & Poor’s.

www.rockinjump.com

Rockin’ Jump was started in 2010 based on a business model designed to create a family-oriented facility where people could stay fit and have fun in the process.

Rockin’ Jump initially opened three corporate locations in the San Francisco Bay Area to perfect the concept before launching the trampoline park franchise program in June 2013. The Company’s Executive Vice President and General Counsel started out as a customer who frequented Rockin’ Jump with his kids and was impressed with the concept. Partnering with two other families, they decided that franchising the concept was the obvious step forward. Since then, Rockin’ Jump has grown exponentially and already has more than 90 Trampoline Park franchise locations either open or in pre-opening development, such as the Subject’s Roseville location.

In addition to California, Rockin’ Jump has locations open or opening soon in South Carolina, Missouri, New Jersey, Wisconsin, Illinois, Georgia, Ohio, Minnesota, Connecticut, Texas, Florida, Maryland, North Carolina, New Mexico, Nevada, Alabama, New York, and Bangkok, Thailand.

TENANT PROFILES

20

Page 21: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

AREA OVERVIEW / MARKET TRENDS

Page 22: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

HISTORY, EMPLOYMENT AND LIFESTYLE

Roseville started in 1864 as a railroad junction,

became a city in 1909, then grew steadily

in importance and size with rapid growth

during WWII. Although the railroad is still a

major employer, the City soon began to see

diversification in its economic base with growth in

other employment sectors.

Interstate 80 through Roseville was completed in

1956 and the city experienced steady population

growth throughout the ‘60s and ‘70s, as

shopping centers, major retailers, and homes

were constructed throughout the City. In 1985

Roseville’s population stood at 29,000 people.

Five years later it was 44,700 and by 2000 it

was 74,200 people. Some of this growth was

fueled by the arrival of major employers such

as Hewlett Packard in 1979 and NEC in 1983.

Today the estimated population of Roseville alone

is estimated at 131,000 and for the South Placer

submarket which includes Rocklin and Lincoln

the current population is estimated at more than

239,000 residents.

While the character of Roseville has changed

over the years as the City grew from small-town

beginnings to its status as a major urban city

today, it has retained much of its historic charm

and character. Roseville is no longer a “railroad

town”, but the Union Pacific Railroad is still the

sixth largest employer (see Major Employers on

following page).

Roseville Automall

Folsom Lake

LEAD

HIL

L BL

VD

EUREKA RD

N S

UN

RISE AVE

AREA OVERVIEW

22

Page 23: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

RETAIL

The Sacramento region’s biggest and most popular retail destination is located roughly one mile

northeast of the Subject. Westfield’s Galleria at Roseville contains more than 1.9 million square

feet anchored by national retailers Nordstrom, JC Penney, Macy’s, and Sears. The Galleria at

Roseville features the only Sacramento-area locations for luxury retailers Louis Vuitton, Burberry,

Tiffany & Co., Omega, Kate Spade New York, and Hugo Boss. Other notable tenants include

Apple, the Disney Store, Guess, Oakley, and Banana Republic. The mall also features a food court

and several notable restaurants such as Ruth's Chris Steak House, The Cheesecake Factory, and Il

Fornaio Italian Restaurant.

Across Galleria Boulevard from the mall is the 372,000 square foot Creekside Town Center. It features

many national retailers including Best Buy, Old Navy, Saks Fifth Avenue, Michaels’s, Nordstrom

Rack, Marshall’s, Babies ‘R’ Us and many more. Across Roseville Parkway is The Fountains, a lifestyle

center located just west of the mall. It contains 40 shops and 9 restaurants and is known for its water

features and frequent special events and concerts. This upscale center had 330,000 square feet in its

first phase, then added a second phase with an additional 240,000 square feet.

Directly across Sunrise Avenue from Center Pointe is The Roseville Automall, the region’s largest

with 16 dealerships representing 24 different marques. Just outside the auto mall proper are a

Hyundai dealership, John L. Sullivan Chevrolet, Enterprise Auto Sales, and CarMax.

EMPLOYER # OF JOBS

Kaiser Permanente 3,231

Hewlett-Packard 2,132

Sutter Roseville Medical Center 1,654

Roseville Joint Union High School District 1,434

Union Pacific Railroad 1,137

Adventist Health 1,019

Roseville City School District 1,000

City of Roseville 991

Wal-Mart 460

MAJOR EMPLOYERS

Fountains at Roseville Galleria at Roseville

23

Page 24: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

ROSEVILLE ROCKLIN/ROSEVILLE/LINCOLN

POPULATION

2016 Population - Current Year Estimate 131,005 239,051

2021 Population - Five Year Projection 140,876 256,578

2010 Population - Census 118,795 218,588

2000 Population - Census 80,774 129,677

2010-2016 Annual Population Growth Rate 1.58% 1.44%

2016-2021 Annual Population Growth Rate 1.46% 1.43%

HOUSEHOLDS

2016 Households - Current Year Estimate 49,078 88,600

2021 Households - Five Year Projection 52,622 94,673

2010 Households - Census 45,064 82,343

2000 Households - Census 31,088 48,659

2010-2016 Annual Household Growth Rate 1.37% 1.18%

2016-2021 Annual Household Growth Rate 1.40% 1.33%

2016 Average Household Size 2.65 2.68

HOUSEHOLD

INCOME

2016 Average Household Income $97,296 $97,191

2021 Average Household Income $106,311 $106,460

2016 Median Household Income $78,725 $79,413

2021 Median Household Income $88,353 $89,394

2016 Per Capita Income $36,722 $36,264

2021 Per Capita Income $39,957 $39,498

HOUSING

UNITS

2016 Housing Units 52,381 94,711

2016 Vacant Housing Units 3,303 6.3% 6,111 6.5%

2016 Occupied Housing Units 49,077 93.7% 88,599 93.5%

2016 Owner Occupied Housing Units 31,486 60.1% 59,743 63.1%

2016 Renter Occupied Housing Units 17,591 33.6% 28,856 30.5%

EDUCATION

2016 Population 25 and Over 87,288 159,861

HS and Associates Degrees 49,945 57.2% 91,702 57.4%

Bachelor’s Degree or Higher 32,811 37.6% 59,972 37.5%

PLACE OF WORK2016 Businesses 6,005 9,068

2016 Employees 73,962 105,697

DEMOGRAPHICS

24

Page 25: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

MARKET TRENDS

Market fundamentals in the Sacramento retail market and South Placer submarket are favorable. In 2016 retail occupancy in Sacramento increased by 217,000

square feet. Net absorption was impacted by the closures of The Sports Authority and Sports Chalet, both victims of e-commerce. The Subject’s South Placer

submarket demonstrated surprising strength with 123,000 sf of net absorption, 57% of the Sacramento region total.

Although big box closures occasioned by the recession such as those cited above added to vacancy for a while, most such space in good locations has since been

leased, often by national retailers entering the Sacramento market for the first time. Sacramento’s overall retail vacancy is 9.3%, but South Placer’s vacancy rate is

7.7%, and Roseville’s is even lower at 5.8%.

Demand is sufficiently robust that 2.3 million square feet of retail space is under construction in the region. Most is build-to-suit space but the new Delta Shores

master-planned development adjacent to I-5 south of Downtown accounts for 1.3 million square feet of this total. No new retail construction is underway in Roseville.

Fountains at Roseville

Creekside Town CenterGalleria at Roseville

Roseville Automall

Golfland Sunsplash

25

Page 26: 384 N. Sunrise Avenue - images3.loopnet.comimages3.loopnet.com/.../document.pdf · 384 N. Sunrise Avenue ROSEVILLE, CALIFORNIA Fully-Leased to Three Tenants • NNN Leases ... All

INVESTMENT CONTACT

RANDY GETZExecutive Vice PresidentLic. 00828903+1 916 446 [email protected]

LOCAL MARKET CONTACT

JON SCHULTZSenior Vice PresidentLic. 00844740+1 916 446 [email protected]

CBRE, Inc.500 Capitol Mall, Ste. 2400Sacramento, CA 95814