INDOOR SWAP MEET INVESTMENT

Offering Memorandum

For Sale | 335, 343, 347 Rodriguez St. | Watsonville, CA 95076James Kendall | DRE #02010395

INDOOR SWAP MEET INVESTMENTLISTING PRICE: $4,400,000 | CAP RATE: 6.01% | BUILDING SF: 30,800 +/-

INDOOR SWAP MEET INVESTMENT

James [email protected] ext. 112DRE #02010395

Mahoney & Associates 501 Abrego St | Monterey, CAwww.mahoneycommercial.com

PRESENTED BY:

OFFERING MEMORANDUM

TABLE OF CONTENTS:

01 FINANCIAL INFORMATION

Lease Abstract 5Financial Analysis 6

02 PROPERTY INFORMATION

Property Photos 8-9Aerial Map 10Satellite Map 11-12Site Plan 13Firm Information 14

INVESTMENT OVERVIEW 4

OM | 335, 343, 347 Rodriguez St. | Watsonville, CA 95076 3 MAHONEY & ASSOCIATES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.


INVESTMENT OVERVIEW

Mahoney & Associates is pleased to present the

leased retail investment opportunity known as

the Discount Mall, located in the heart of historic

downtown Watsonville. The subject property

is approximately 30,800+/- sq. ft. indoor flea

market with +/- 55 off-street parking spaces.

Master leased to the same tenant since 1993,

the operator then subleases the approximately

27 interior spaces to individual vendors.

In October of 2014, a 14.5-year lease was

signed, with rent increases of 5% every 5

years. The next scheduled rent increase is to

occur on March 1, 2024. The rent will increase

to $29,484 per month. The tenant pays for

all utilities and is responsible for interior

maintenance. The property taxes, the building

roof, structure, parking lot, and insurance are

the responsibility of the owner. The subject

property is situated on 3 adjacent parcels, two

of which provide the approximately 55 off-

street parking spaces.

PROPERTY DESCRIPTION

Address 335, 343, 347 Rodriguez St. Watsonville, CA 95076

Price $4,400,000

Price PSF $142.85

Cap Rate 6.01%

APN 017-101-41 | 017-101-42 | 017-101-16

Building SF +/- 30,800 SF

Land Area +/- 57,891 SF (3 parcels)

Zoning Central Commercial Core Area

Parking +/- 55 off-street designated spaces

Improvements Single Story Concrete/Masonry Building

Sprinkled Yes

Frontage 323 feet on Rodriguez St and 165 West Beach St.

HVAC Yes

Year Built 1924 - Remodeled 1990

01FINANCIAL INFORMATION

LEASE ABSTRACT

FINANCIAL ANALYSIS




LEASE ABSTRACT INFO

LEASE ABSTRACT

Lessee Pacific KOAM Investments, Inc.

Lease Term 15 years

Start Date 10/1/14

End Date 2/28/29

SF Leased 30,800

Current Rent $344,400

Rent Increase $375,036 on March 1, 2024

Recoveries Modified Gross - tenant pays utilities and interior maintenance

Renewal Options None

Purchase Options None




FINANCIAL ANALYSIS

INCOME & EXPENSES

Gross Income $344,400

Less Vacancy of 5% $17,220

Adjusted Gross Income $327,180

Annual Prop Tax Amount $51,480

Insurance $4,617

Reserves for Replacement (2%) $6,890

Net Income $264,193

SF% of Total

SFMonthly

RentAnnual

RentRent/SF Start Date

Expiration Date

Lease Type

Options

Pacific KOAM

Investments, Inc

30,800 100.00% $28,700 $344,400 $0.93 10/1/14 2/28/29 MG None

335-347 RODRIGUEZ ST. WATSONVILLE

02PROPERTY INFORMATION

PROPERTY PHOTOS

AERIAL MAP

SATELLITE MAP

SITE PLAN

FIRM INFORMATION

PROPERTY PHOTOS

PROPERTY PHOTOS




AERIAL MAP

017-101-41017-101-41

017-101-16017-101-16017-101-42017-101-42

RO

DR

IGU

EZ

ST

RO

DR

IGU

EZ

ST

WEST BEACH STWEST BEACH ST




SATELLITE MAP

PROPERTY LOCATION




SATELLITE MAP

WATSONVILLE

MONTEREY | 27 MILES

SANTA CRUZ | 20 MILES




SITE PLAN Tax Map 343 Rodriguez St, Watsonville, CA 95076

Tax Map 343 Rodriguez St, Watsonville, CA 95076 1/12/2020 Page 1 (of 1)

©2005-2020 First American Financial Corporation and/or its affiliates. All rights reserved.

Limitation of Liability for Informational ReportIMPORTANT – READ CAREFULLY:THIS REPORT IS NOT AN INSURED PRODUCT OR SERVICE OR A REPRESENTATION OF THE CONDITIONOF TITLE TO REAL PROPERTY. IT IS NOT AN ABSTRACT, LEGAL OPINION, OPINION OF TITLE, TITLE INSURANCE COMMITMENT ORPRELIMINARY REPORT, OR ANY FORM OF TITLE INSURANCE OR GUARANTY. THIS REPORT IS ISSUED EXCLUSIVELY FOR THE BENEFITOF THE APPLICANT THEREFOR, AND MAY NOT BE USED OR RELIED UPON BY ANY OTHER PERSON. THIS REPORT MAY NOT BEREPRODUCED IN ANY MANNER WITHOUT FIRST AMERICAN’S PRIOR WRITTEN CONSENT. FIRST AMERICAN DOES NOT REPRESENT ORWARRANT THAT THE INFORMATION HEREIN IS COMPLETE OR FREE FROM ERROR, AND THE INFORMATION HEREIN IS PROVIDEDWITHOUT ANY WARRANTIES OF ANY KIND, AS-IS, AND WITH ALL FAULTS. AS A MATERIAL PART OF THE CONSIDERATION GIVEN INEXCHANGE FOR THE ISSUANCE OF THIS REPORT, RECIPIENT AGREES THAT FIRST AMERICAN’S SOLE LIABILITY FOR ANY LOSS ORDAMAGE CAUSED BY AN ERROR OR OMISSION DUE TO INACCURATE INFORMATION OR NEGLIGENCE IN PREPARING THIS REPORTSHALL BE LIMITED TO THE FEE CHARGED FOR THE REPORT. RECIPIENT ACCEPTS THIS REPORT WITH THIS LIMITATION AND AGREESTHAT FIRST AMERICAN WOULD NOT HAVE ISSUED THIS REPORT BUT FOR THE LIMITATION OF LIABILITY DESCRIBED ABOVE. FIRSTAMERICAN MAKES NO REPRESENTATION OR WARRANTY AS TO THE LEGALITY OR PROPRIETY OF RECIPIENT’S USE OF THEINFORMATION HEREIN.


FIRM INFORMATION

MAHONEY & ASSOCIATES

UNEQUALED COMMITMENT TO OUR CLIENTS’ NEEDS AND SATISFACTION… MAHONEY & ASSOCIATES WORKS TIRELESSLY ON MAXIMIZING REAL ESTATE VALUES.

With our Collaborative Team of Real Estate Professionals and Consultants, Mahoney & Associates works to maximize your property’s potential, whether for selling, leasing or trading. In everything we do, there is just one driving principle: client satisfaction.

For over 40 years, Mahoney & Associates has been known as a local and regional trusted industry leader, founded by John Mahoney. Our clients span every industry, so we serve them with broad, creative and diverse expertise and a market knowledge that touches every facet of commercial real estate, from raw land development to sophisticated 1031 Single-and Multi-Tenant Net Leased exchanges in other states. In every transaction we enter, beyond the beams and masonry or ROI, one mission alone drives us all and that is representing your interests as if they were our own.

It will be our pleasure and duty to sit with you and listen…so we can understand your motivation, background, needs, challenges and goals in discussing potential solutions for your properties. We have learned that one solution does not fit all situations and look forward to working with you to develop a strategy that encompasses all stakeholders’ interests. Nothing is more satisfying than driving by a property with which we have partnered with owners, knowing there is now a new business, a greater stream of income, a legacy honoring a family member, a community treasure restored…the list is endless in how we work with our valued clients to enrich their lives and the community in which their property sits.

JAMES KENDALL | SALES ASSOCIATEDRE #02010395

Born and raised in Pacific Grove, James Kendall earned his Bachelor’s of Science degree in Business Administration from Columbia College while completing majors in Marketing, Management, Human Resources, and International Business. During his studies he spent extensive time in Colombia, South America where he learned and became fluent in Spanish. Residing in beautiful Carmel Valley, James enjoys spending time with his wife and two young boys on the family horse ranch and hiking the surrounding hills and parks. An avid motorsports fan, he regularly attends events and Laguna Seca Raceway as a volunteer for SCRAMP. James is a Monterey Commercial Property Owner’s Association board member, Salinas City Center Improvement Association sub-committee member, and on the Carmel Valley Land Use Advisory Committee.

$3 BILLION

1,000+

1,750+

6,000,000

IN TRANSACTION VOLUME

ASSETS SOLD

LEASE TRANSACTIONS

SQUARE FEET LEASED

SOLD PROPERTY HIGHLIGHTS

40+ Years of Commercial Real Estate Represented

DISCLAIMER

JAMES KENDALL

DRE #02010395

[email protected]

831.646.1919 ext. 112

MAHONEY & ASSOCIATES

501 Abrego St | Monterey, CA

www.mahoneycommercial.com

831.646.1919

E XC L U S I V E LY L I S T E D B Y :Mahoney & Associates (M&A) hereby advises all prospective purchasers of property as follows: All materials and information received or derived from M&A and its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither M&A and its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. M&A will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. M&A makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. M&A does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/ or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by M&A and in compliance with all applicable fair housing and equal opportunity laws.

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INDOOR SWAP MEET INVESTMENT