Mountain Lakes Center - LoopNet · Mountain Lakes Center is substantially occupied by a single tenant, Southern Aluminum Finishing, Co. For the sake of clarity, the property is being

Mountain Lakes Center

OFFERING MEMORANDUM

±228,568 SF Multi-Tenant Industrial

5.14% Cap on Existing Income

Upside ±64,880 SF Available to Lease

Kidder Mathews | Mountain Lakes Center 2

TABLE OF CONTENTS

1. Executive Summary

• The Offering I & II• Neighboring Tenants • Mountain Lakes Indistrial Park• Redding Location• Investment Highlights

2. Tenancy

• Tenancy Summary • SAF, Mission Linen, Alpha Copy• Address Map • Office Plans Floor 1 & 2 • Rent Roll

• Building Summary

3. Property Description

• Property Profile

Jay Richter, CCIMFirst Vice [email protected] | LIC# 01305696

Nik HarmonSenior [email protected] | LIC# 02016311

Sean GallingerFirst Vice [email protected] | LIC# 01944291

Offered by

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

Kidder Mathews455 Capitol Mall, Ste 160Sacramento, CA 95814

kiddermathews.com



Executive Summary

Caterpillar Rd


APN: 114-300-020

APN: 114-300-001


Executive Summary - Part I

THE OFFERING - SAF

Kidder Mathews has been retained to exclusively market Mountain Lakes Center in Redding, CA for sale.

The ±228,568 square foot complex is well located in the Mountain Lakes Industrial Park at the intersection of Beltine Rd & Caterpillar Rd, which offers immediate access to Interstate-5. Mountain Lakes Center is substantially occupied by a single tenant, Southern Aluminum Finishing, Co.

For the sake of clarity, the property is being presented in two parts. The first part of the property that is illustrated by the outline below is nearly entirely comprised of industrial warehouse, manufacturing, and production areas occupied as follows: SAF ±147,619 SF, Alpha Copy ±2,047 SF, and a Vacant space offering ±2,002 SF (see site plan pg 13).

PROPERTY OVERVIEW - SAF

Property Mountain Lakes Center

Type Industrial Complex

Tenants & SF SAF - ±147,619 SFAlpha Copy - ±2,052 SF Vacant - ±2,004 SF

Total SF ±151,675 SF (±11,151 SF is basement level)

Addresses 4320, 4352, 4350, 4354, 4356 Caterpillar Road 1485, 1485-B Beltline Road

Construction Concrete/Steel/Metal

SAF Occupancy:Alpha Copy Occupancy: Vacancy:

97.33% 1.35% 1.32%

Condition State of the Art Anodizing Facility, Renovated 2012

Stories Single + Basement

Parking ±75 Spaces, yard area for additional parking/storage

Total Acreage 12.98 AC (Combined)

APN #s 114-300-020-000 (6.48 AC)114-440-001-000 (6.50 AC)

Zoning General Industrial (GI)

SAF NOI $611,265.00


Executive Summary - Part II

THE OFFERING - 1481 & 4300

Building 1481 consists of ±9,646 SF and is 100% occupied by Mission Linen Supply. Mission Linen Supply’s space would be one of eight individual condos if the condo map were applied to the subject property.

Building 4300 consists of ±64,880 SF and although it does have existing short term tenants. Shasta Venture Hub and Cloud Potential, it is being tracked as vacant for marketing purposes.

The short term leases in Building 4300 allow for an astute investor to reposition the asset and or to continue improving upon the Subject Property in phases to secure a substantial long term tenant.

PROPERTY OVERVIEW - 1481 & 4300

Property Mountain Lakes Center

Type Industrial Office Complex

Tenants & SF Mission Linen Supply - ±9,646 SF*Shasta Venture Hub - ±8,364 SF*Cloud Potential - ±2,127 SF*Common Area - ±5,241 SFVacant - ±49,148 SF

Total SF ±74,526 SF

Addresses 1481 & 1481C Beltline Road4300 Caterpillar Road

Construction Concrete/Steel/Metal

Bldg 1481 Occupancy:Bldg 4300 Occupancy*:

100% - Mission Linen Supply24% - Shasta Venture Hub & Cloud Potential

Condition Building 4300 Requires Some Updating

Stories Two Story (Building 4300)

Parking ±250 Spaces

Mission Linen NOI $42,766.80

Alpha Copy NOI $12,696.00

SAF NOI $611,265.00

TOTAL NOI $666,727.00

ASKING PRICE $12,975,000.00 ($57.00 PSF) *See Rent Roll and Lease Expiration Dates on page 15.


NEIGHBORING TENANTS

Caterpillar Rd

Beltine R

d

N

MOUNTAIN LAKES CENTER

ALPHACopy


N

273273

MOUNTAIN LAKES INDUSTRIAL PARK


Mountain Lakes Industrial Park Submarket consists of approximately 1.18 Million SF and serves as a distribution and industrial hub for national and international companies alike such as, Pepsi Bottling Group, Coca Cola, Amerigas, Southern Aluminum Finishing, Co., Petersen CAT in addition to many others. Mountain Lakes Industrial Park is an established industrial park and traditionally has a low vacancy rate and benefits from its proximity to Interstate 5 and its proximity to amenities in Downtown Redding.


REDDING LOCATION AERIAL

REDDING

DOWNTOWN

ENTERPRISE N

Lake Blvd E

S M

arket St

N M

arke

t St

Eureka Way

Caterpillar Rd

Beltline R

d

Oasis R

d

MT SHASTA MALL

Sacram

ento R

iver


273

299

Distance to Major Markets from Redding

Sacramento, CA 162 miles

Reno, NV 198 miles

Stockton, CA 208 miles

San Francisco, CA 216 miles

Portland, OR 422 miles

Los Angeles, CA 546 miles

Seattle, WA 594 miles

San Diego, CA 664 miles

Pheonix, AZ 917 miles

Denver, CO 1,231 miles

Albuquerque, NM 1,242 miles


INVESTMENT HIGHLIGHTS

Redding, CA

With a diverse culture and prosperous center of commerce and industry, Redding embodies all of the benefits of living in Northern California. Having been long recognized for its quality business environment, outdoor lifestyle, clean air, and a bustling metropolitan area; Redding is the ideal location to own an investment of this quality and magnitude. Redding is located 545 miles north of Los Angeles; 162 miles north of Sacramento; 433 miles south of Portland, Oregon; and 592 miles south of Seattle, Washington. In addition, it is uniquely positioned as the midway point of the I-5 Corridor. As the retail hub for Shasta, Tehama, Trinity, and Siskiyou counties, Redding is the predominant central location for Northern California commerce.

Irreplaceable Opportunity

The offering, Mountain Lakes Center, is priced significantly below replacement cost. Southern Aluminum Finishing Co. is in its 73rd year of operation and is a credit tenant with owned assets in other markets. The offering will be delivered with a brand new 10 year NNN lease with six (6) five (5) year renewal options. With stable income guaranteed by SAF on 66% of the Subject Property, and additional lease revenue from existing Tenants,

there will be significant opportunity and incentive for an institutional investor to reposition the ±64,880 SF office portion of the Subject Property.

For Example:

a.) Condominiumise building 4300 and strategically sell off the Asset. Condominium map approval expires May 6,2020.

b.) Lease up building 4300 to a single tenant at a discounted lease rate to increase NOI.

c.) Reposition building 4300 and lease up to multiple tenants to increase NOI and market as a leased investment.

There are abundant possibilities available for a creative investor to maximize and unlock Building 4300’s potential.


Tenancy



TENANCY SUMMARY

SAF Co. ±149,671 SF

Mission Linen Supply ±9,646 SF

Alpha Copy ±2,052 SF

Vacant/Short Term Tenants ±66,884 SF


SOUTHERN ALUMINUM FINISHING COMPANY

SAF is the only metal service center in the country with anodizing and painting facilities, a full-time fabrication center, and an unparalleled stock of sheet and extrusions from a single source. Based in Atlanta, Georgia, SAF is a nation-wide aluminum finisher specializing in Kynar painting and architectural anodizing, aluminum extrusions and sheet distributor, and metal fabricator. SAF also fabricates custom column covers, architectural panels, and commercial roofing trim to architectural specifiers, glazing contractors, and other industries.

Founded in 1946 – Southern Aluminum Finishing Co. operates five manufacturing plants throughout the country and is the single source for architectural aluminum sheet, aluminum extrusion shapes, aluminum anodizing, paint finishing and fabricating services. Southern Aluminum Finishing Co. is a 70+ year old company that has exhibited measurable expansion over decades to become the market leader in all things aluminum. Southern Aluminum Finishing Co. opened SAF West in March of 2007.

Tenancy

SAF U.S. Locations

REDDING, CA

INDIANAPOLIS, IN

NASHVILLE, TN

VILLA RICA, GA & ATLANTA, GA


MISSION LINEN

Mission Linen Supply is a family-owned, privately-held company and a leading provider of products and services to hospitality, medical and industrial businesses. Founded in 1930 by George “Ben” Page, the company has grown from a one-man operation to a leading player in the linen rental and uniform business. Currently the company operates forty-three facilities in California, Arizona, Texas, Oregon and New Mexico and has a fleet of more than eight hundred vehicles.

ALPHA COPY

ALPHACopy is an independent office machine retailer with 36 years in the office machine industry. ALPHACopy opened in 1993 in Redding with the goal to provide the North State with alternative options from the high priced dealers and their monopolies in this industry. ALPHACopy specializes in the re-sale of low metered Digital Copiers, Printers, and Fax Machines with full support after the sale on supplies and service. Their factory trained technicians can also service equipment purchased elsewhere.

Tenancy

courtesy of missionlinen.com

courtesy of missionlinen.com courtesy of alphacopy.com


ADDRESS MAP

FIRST & SECOND FLOOR PLAN NEXT PAGE

ALPHACopy

AVAILABLE


FIRST & SECOND FLOOR OFFICE PLAN

*Plan if Subject Property were to be divided into a multi-tenancy project

Mission Linen Supply

Common Area

Common Area

SAF Co.



TENANT LEASE FROM LEASE TO TOTAL LEASE AREA BASE RENT ANNUAL PSF TYPE ESCALATION RENEWALS NOI

SAF 4354 Caterpillar Road 4350 Caterpillar Road 1485 Beltline Road 1485 Beltline Road, Unit B

Close of Escrow 10 Years from COE

±149,671 SF $50,938.79 $4.03 NNN TBD During Negotiations

Six (6) Five (5) year options

$611,265.00

ALPHA COPY 4320 Caterpillar Road

10/1/2016 9/30/2021 ±2,052 SF $1,058.00 $6.18 NNN None None $12,696.00

VACANT (SAF SIDE) Landlord upside - Seperarely metered office space.

- - ±2,004 SF - - - - - -

MISSION LINEN 1481 Beltline Road 1481 Beltline Road, Unit C

12/1/2015 12/31/2020 ±9,646 SF $3,563.90 $4.43 NNN None None $42,766.80

SHASTA VENTURE HUB* 4300 Caterpillar Road

9/1/2017 9/1/2018 ±8,364 SF $6,748.81 $9.68 Gross TBD 2 Year Option N/A

CLOUD POTENTIAL* 4300 Caterpillar Road, Unit G

10/1/2016 9/30/2018 ±2,127 SF $1,382.55 $7.23 Gross TBD None N/A

COMMON AREA 4300 Caterpillar Road

N/A N/A ±5,241 SF N/A N/A N/A N/A N/A N/A

RENT ROLL

*Shasta Venture Hub and Cloud Potential are not anticipated to renew leases at the Subject Property and are not included in the NOI. The Common Area is only applicable if using an executive office approach to lease up.


BUILDING SUMMARY

Caterpillar Rd

TOTAL LEASE AREA

SAF Portion: 98.6% ±151,675 SF

Building 1481: 100% ±9,646 SF

Building 4300: 24% ±64,480 SF

TOTAL SF ±228,568 SF

(including Alpha Copy & vacant unit)

(short term leases, treat as vacant)

(Missing ±2,367 SF TBD)

HIGHLIGHTS

2 Credit Tenants

1 New 10 Year Lease ±149,671 SF

70+ Year National Anchor Tenant

NOI Term Tenants $666,727.00

Condo Map Approval - Up to 8 Units (2020)

Upside ±64,880 SF Available to Lease

Price Per Square Foot $57.00

N


Property Description



Property Profile

SUMMARY


4300-4352 Caterpillar Road & 1481-1485 Beltine Road, Redding CA 96003

Site Square Footage First floor total: Second floor total: Basement total: Total Project NRA:

±183,563 SF ±33,854 SF ±11,151 SF ±228,568 RSF* *per architectural diagram

Site Area 12.98 AC (565,409 SF)

Structural Steel/Metal/Concrete

Year Built 1970s

Parcel Numbers 114-300-020-000 & 114-440-001-000

Number of Stories Single and Two Story

Occupancy SAF Portions: Building 1481: Building 4300:

98.68% 100% Short-Term Tenants (See Rent Roll)

Parking Stalls 325+ with varying ratios

Parking Type Asphalt surface parking

Loading

There are 6 mechanized dock doors with 9 total dock positions, 7 dock levelers, and 3 doors at grade level approach utilized by SAF. Building 1481 has a single grade level door utilized by Mission Linen Supply Co.

Ceiling Height 24’ - 28’


STRUCTURE

Foundation Conventional concrete spread footings

Exterior Walls The building consists of a combination of concrete tilt-up panels and insulated metal panels. The subject property is fully insulated and interior warehouse walls are painted white.

Roof System Metal/Maintained/Weather tight/Insulated

Ceilings Office area ceilings generally consist of 2x2 or 2x4 lay-in acoustic tiles; they are set in suspended grids with lay-in fluorescent light fixtures. Warehouse ceilings consist of insulated ceiling and roof framing.

Lighting Systems Interior lighting of the warehouse is accomplished by LED and High Efficiency fluorescent fixtures. Lighting in tenant spaces is provided by recessed fluorescent fixtures.

Windows Typical windows consist of standard dark bronze anodized aluminum storefront systems with insulated glass.

HVAC System SAF Warehouse - High Efficiency Air Supply Systems and evaporating coolers

SAF Building 1485 - No Heating/Cooling

SAF Office- Gas & Electric HVAC

Building 4300, First Floor - 4 pipe system, 2 highly efficient boilers, compressor and new controls to 20 zones

Building 4300, Second Floor - Package units on roof, ±15,000 SF section not activated

Electrical Service

Electrical Distribution

3,700 Amps 3-phase, 4 wire

SAF - 2,000 amp 277/480 volt, 3 phase, 4 wire service

Buildings 4300 & 1481 - 1,700 amp 277/480 volt, 3 phase, 4 wire service with 400 amps 277/480 volt serving Mission Linen and 600 amps 277/480 volt serving building 4300 with another 700 amps 277/480 volt available for use.


STRUCTURE

Plumbing System Building has a significant water service supply and has been updated with new backflow preventers.

Restrooms A combination of single and multiple-occupancy restrooms are provided in individual tenant spaces.

Utilities Water: City of Redding Sewer: City of Redding Electric: Redding Electric Gas: PG&E Waste: City of Redding

Emergency Power 50 kw diesel generator over SAF’s anodizing line

Fire/Life Safety System

Subject property has fire alarm panels to monitor sprinkler flow and tamper switches.

Sprinkler System Buildings are equipped with an automatic wet-pipe sprinkler system - modernized and updated.

Landscaping And Site Improvements

Landscaping along street frontages consists of lawns and mature trees. Parking lot islands and landscape areas around front elevations of the building have a combination of lawn, shrubs and mature trees.

Ingress/Egress Primary access is via Interstate 5 to Caterpillar Road.

Building Trusses Steel Frame

Parking Lot Lighting Parking areas equipped with overhead lights.

Overhead Cranes Located above the anodizing line and production area

Warehouse Cooling High Efficiency Swamp coolers

Elevator One


Jay Richter, CCIM

First Vice [email protected] | LIC# 01305696

Sean GallingerFirst Vice [email protected] | LIC# 01944291

Nik HarmonSenior [email protected] | LIC# 02016311

kiddermathews.com

Documents

Mountain Lakes Center - LoopNet · Mountain Lakes Center is substantially occupied by a single tenant, Southern Aluminum Finishing, Co. For the sake of clarity, the property is being