Offering Memorandum - LoopNet · 2018. 11. 13. · SONOMA SQUARE SHOPPING CENTER. 1460 E Cotati Ave, Rohnert Park, CA 94928. 1. Annual Per SF. Income. $189,807 $19.79 NOI. $135,700

SONOMA SQUARE SHOPPING CENTER1460 East Cotati Avenue | Rohnert Park, CA 94928

Offering Memorandum

SONOMA SQUARE SHOPPING CENTER

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EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Reading International Inc 595

State Farm Insurance 517

Graton Resort & Casino 370

Walmart 350

Chick-Fil-A 254

Costco 250

Compumotor 200

Costco Wholesale Corporation 200

Rohnert Park Police Department 200

Cotati Pohnert Park Unif 198

Rieke Corporation 180

Sonoma State Enterprises Inc 167

DEMOGRAPHICS

1-Miles 2-Miles 3-Miles

2017 Estimate Pop 23,007 45,572 57,245

2010 Census Pop 22,122 43,929 55,213

2017 Estimate HH 7,679 17,129 21,546

2010 Census HH 7,344 16,442 20,710

Median HH Income $66,673 $64,111 $65,813

Per Capita Income $29,036 $30,780 $32,076

Average HH Income $80,893 $79,111 $82,971

VITAL DATA

YEAR 1 YEAR 2

Price $2,335,000 CAP Rate 4.56% 10.34%

Down Payment 100% / $2,335,000 Net Operating Income $106,557 $241,349

Loan Type All Cash Net Cash Flow After Debt Service 4.56% / $106,557 10.34% / $241,349

Gross Leasable Area (GLA) 14,549 SF Total Return 4.56% / $106,557 10.34% / $241,349

Price/SF $160.49

Current Occupancy 64.66%

Year Built / Renovated 1988

Lot Size 1.76 Acres

2


OFFERING SUMMARY

Tremendous upside in cash flow and asset value through lease-up.

Competing centers in the trade area enjoy occupancy rates of 90% to 100%.

Infill trade area.

Located less than one mile from Sonoma State University and Rancho Cotate High School.

Situated midway between the new Cotati SMART train depot and Sonoma State University.

INVESTMENT HIGHLIGHTS

Sonoma Square Shopping Center (the “Property”) is an attractive value-add opportunity offering an investor tremendous upside in both cash flow and asset value through

sound management, operations, and lease-up. The absentee owner of Sonoma Square Shopping Center is headquartered in Southern California. Demands in other areas

of its real estate portfolio over the past several years have been an obstacle to allocating the necessary managerial oversight and other resources to this asset. The result

is their decision to market and sell this multi-tenant retail investment. Competing unanchored and anchored retail centers within the trade area of Sonoma Square enjoy

occupancy levels of 90%-100%. Stabilizing the occupancy of the Property at market-correct rent levels will more than double the current net operating income, and

going-in capitalization rate. Stabilization costs are projected to be nominal to achieve the pro forma occupancy and income targets.

Located in the infill community of Rohnert Park in the San Francisco Bay area, Sonoma Square Shopping Center is situated between, and less than one mile from,

Sonoma State University, Rancho Cotate High School, and the new Cotati SMART train station. The zoning of Sonoma Square allows for a wide variety of uses, enhancing

the leaseability of the center. The Property has ample on-site parking, and ingress/egress is convenient for shoppers, with a dedicated left-turn lane eastbound on East

Cotati Avenue into the double-wide, curb-cut driveway. A second double-wide, curb-cut driveway allows ingress/egress to and from Christobal Way. Sonoma Square

Shopping Center’s primary frontage parallels East Cotati Avenue; the center is positioned on the soft corner of Snyder Lane and Maurice Avenue.

In summary, the fundamentals of Sonoma Square Shopping Center are in place and ready for an investor to take the Property to the next level of stabilization and

dramatically increase cash flows and asset value.

INVESTMENT OVERVIEW

3

Value-Add

Retail Strip Center

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PROPERTY PHOTO


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OFFERING SUMMARY

PROPERTY OVERVIEW

The single-story design is constructed of timber framing with stucco exterior walls. The roof is a flat built-up type

with cementitious tile mansard detail creating an appealing aesthetic. The mansard roof detail creates a covered

facade and walkway offering shoppers shelter from the elements. The rentable area is approximately 14,549

square feet, situated on a parcel of approximately 1.76 acres (76,665 square feet). The parking surface is asphalt

with multiple irrigated landscape islands and concrete curbing. Each retail space is served by separate-system

roof-mounted HVAC units.

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THE OFFERING

Property Sonoma Square Shopping Center

Price $2,335,000

Property Address 1460 E Cotati Ave, Rohnert Park, CA

Assessors Parcel Number 143-350-023

SITE DESCRIPTION

Year Built/Renovated 1988

Gross Leasable Area 14,549 SF

Ownership Fee Simple

Lot Size 1.76 acre(s)

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LOCATION OVERVIEWLOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMESONOMA SQUARE SHOPPING CENTER

PRICING AND VALUATION MATRIX


AERIAL

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REGIONAL MAP


7

LOCAL MAP


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AERIAL PHOTO


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FINANCIAL ANALYSIS


10

TENANT SUMMARY

FINANCIAL ANALYSIS


OPERATING STATEMENT

11

FINANCIAL ANALYSIS


PRICING DETAIL

12


SALES COMPARABLES MAP

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SONOMA SQUARE SHOPPING CENTER(SUBJECT)

West Plaza Shopping Center

10 Enterprise

The Crossroads Center

1630 Sebastopol Rd

University Square Shopping Center

1199 Yulupa Ave

SALES COMPARABLES

1

2

3

4

5

6

1

2

3

4

SONOMA SQUARE SHOPPING CENTER5

6

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SALES COMPARABLES

Avg. 6.86%

0.0

0.8

1.6

2.4

3.2

4.0

4.8

5.6

6.4

7.2

8.0

SonomaSquare

ShoppingCenter

West PlazaShopping

Center

10Enterprise

TheCrossroads

Center

1630Sebastopol

Rd

UniversitySquare

ShoppingCenter

1199Yulupa Ave

Average Cap Rate

Avg. $228.16

$0

$40

$80

$120

$160

$200

$240

$280

$320

$360

$400

SonomaSquare

ShoppingCenter

West PlazaShopping

Center

10Enterprise

TheCrossroads

Center

1630Sebastopol

Rd

UniversitySquare

ShoppingCenter

1199Yulupa Ave

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

%

%

%

%

%

%

%

%

%

%

%

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

Annual Per SF

Income $201,613 $13.86

Expenses $95,056 $6.53

NOI $106,557 $7.32

Occupancy 64.66%

Tenants Lease Type

Asking Price: $2,335,000 Domino’s NNN

Price/SF: $160.49 Ronnie’s Deli NNN

CAP Rate: 4.56% China Wok NNN

Year Built: 1988 Laundromat NNN

SONOMA SQUARE SHOPPING CENTER1460 E Cotati Ave, Rohnert Park, CA 94928

1

Annual Per SF

Income $189,807 $19.79

NOI $135,700 $14.15

Occupancy 84%

Tenants Lease TypeClose Of Escrow:

3/29/2016 Happy Nails NNN

Sales Price: $2,300,000 Pearl's Diner NNN

Price/SF: $239.78 Personal Hair & Skin NNN

CAP Rate: 6.30% Shanghai Restaurant NNN

Year Built: 1977 Raffo's Hrdwd. Floor NNN

WEST PLAZA SHOPPING CENTER551 5th St W, Sonoma, CA 95476

2

Annual Per SF

NOI $133,584 $11.59

NOTESThe property was 100% leased at the time of sale. The center has been sold three times in recent years; 2007, 2013 and 2016.


5/26/2016 B&C Registration NNN

Days On Market:

136 Martial Arts NNN

Sales Price: $2,005,000 Power Fit NNN

Price/SF: $173.92 Sunflower Spa NNN

CAP Rate: 6.66%

Year Built: 1978

10 ENTERPRISE10 Enterprise Dr, Rohnert Park, CA 94928

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

3

Annual Per SF

NOI $149,435 $10.67

Occupancy 67%

NOTES

Part of the buyer's 1031 Exchange. 67% occupied at time of sale.


3/3/2016 Asiana Market NNN

Days On Market:

126 Friendly City NNN

Sales Price: $2,000,000 Highway Tattoo NNN

Price/SF: $142.86 Jelly Donut NNN

CAP Rate: 7.74%

Year Built: 1964

THE CROSSROADS CENTER7665 Old Redwood Hwy, Cotati, CA 94931

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Annual Per SF

Income $198,624 $20.21

Expenses $29,160 $2.97

NOI $169,880 $17.28

Occupancy 100%

NOTES

Center was fully occupied at time of sale.


9/22/2016 Dulceria Las Tapatia NNN

Days On Market:

567 Tu Casu Furnture NNN

Sales Price: $2,528,000

Price/SF: $257.20

CAP Rate: 6.72%

Year Built: 2014

1630 SEBASTOPOL RD1630 Sebastopol Rd, Santa Rosa, CA 95407

5

NOTES

Confirmed Cap Rate information was not available.


8/31/2016 Fast & Easy Mart NNN

Sales Price: $3,175,000 Gracie Martial Arts NNN

Price/SF: $218.51 Jelly Donut NNN

Year Built: 1997 Oasis Laundry NNN

TCBY Yogurt NNN

UNIVERSITY SQUARE SHOPPING CENTER7271 Snyder Ln, Rohnert Park, CA 94928

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

6

NOTES

No confirmed Cap Rate information was available for this sale.


6/30/2016 California Cuts NNN

Sales Price: $1,495,000 Crystal Corners NNN

Price/SF: $336.71 Lila's Mexican Rest. NNN

Year Built: 1992 Modern Nails NNN

1199 YULUPA AVE1199 Yulupa Ave, Santa Rosa, CA 95405

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COMPARABLE SHOPPING CENTERS

SONOMA SQUARE SHOPPING CENTER(SUBJECT)

Commerce Center

College Center

Wolf Den Plaza

10 Enterprise

Padre Town Center

Raleys Towne Center

6245-6475 Redwood Drive

Target Center

Expressway Marketplace

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

7

8

9

1

2

3

5

6

18

1

2


3

4

5

6

7

89



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AVERAGE OCCUPANCY

Avg. 85.11%

0

10

20

30

40

50

60

70

80

90

100

SonomaSquare

ShoppingCenter

CommerceCenter

CollegeCenter

Wolf DenPlaza

10Enterprise

Padre TownCenter

RaleysTowneCenter

6245-6475Redwood

Drive

TargetCenter

ExpresswayMarketplace

%

%

%

%

%

%

%

%

%

%

%



20

AVERAGE RENT PER SQUARE FOOT

Avg. $2

$0.00

$0.30

$0.60

$0.90

$1.20

$1.50

$1.80

$2.10

$2.40

$2.70

$3.00

SonomaSquare

ShoppingCenter

CommerceCenter

CollegeCenter

Wolf DenPlaza

10Enterprise

Padre TownCenter

RaleysTowneCenter

6245-6475Redwood

Drive

TargetCenter

ExpresswayMarketplace

PROPERTY NAME

MARKETING TEAM



rentpropertyname1


rentpropertyname1


rentpropertyname1


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Total GLA Available SF Asking Rent/SF

14,549 SF 5,142 SF $0.84

YEAR BUILT: 1988

SONOMA SQUARE SHOPPING CENTER1460 East Cotati Avenue, Rohnert Park, CA 94928

OCCUPANCY: 100% | YEAR BUILT: 1973


16,558 SF 0 SF $1.70

MAJOR TENANTS

Big O Tires

Royal Treatment

El Charro Mexican Restaurant

1

NOTESRetail rents of $20.50 ann. / $1.70 mo. modified gross. Source - Costar

COMMERCE CENTER5979 Commerce Blvd, Rohnert Park, CA 94928



5,060 SF 0 SF $1.50

MAJOR TENANTS

Pizza Hut

Lemus Family Enterprises

A & L Market

Taqueria Sol Azteca

2

NOTESRetail rental rate of $18.00 ann. / $1.50 mo. NNN. Source - Costar

COLLEGE CENTER1435 E Cotati Ave, Rohnert Park, CA 94928

PROPERTY NAME

MARKETING TEAM



rentpropertyname1


rentpropertyname1


rentpropertyname1


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18,720 SF 0 SF $2.25

MAJOR TENANTS

Jimmy John's

Debra Coughlin

Juice Shack

Starbucks

3

NOTESRent levels of $27.00 ann. / $2.25 mo. NNN. Source - Costar.

WOLF DEN PLAZA1706 E Cotati Ave, Rohnert Park, CA 94928



11,528 SF 4,703 SF $1.20

MAJOR TENANTS

Power Fit

B & C Registration Service

Appliance Alternative Solutions

To Dye For

4

NOTESTwo spaces for lease. $14.40 ann. / $1.20 mo. NNN. Source - Costar

10 ENTERPRISE10 Enterprise Dr, Rohnert Park, CA 94928



34,850 SF 16,605 SF $1.65

MAJOR TENANTS

Popeye's

Q-Zar Tag

Cost Less Outlet Store

Action Fitness

5

NOTESAsking rents of $18.00 ann. / $1.50 mo. NNN to $20.00 ann. / $16.66 mo. NNN. Source - Costar.

PADRE TOWN CENTER15 Padre Pkwy, Rohnert Park, CA 94928

PROPERTY NAME

MARKETING TEAM



rentpropertyname1


rentpropertyname1


rentpropertyname1


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141,747 SF 9,272 SF $2.25

MAJOR TENANTS

Raleys Market

Wells Fargo Bank

Round Table Pizza

Rohnert Park Salon

6

NOTESAsking rent of $27.00 ann. / $2.25 mo. NNN. Source - Costar.

RALEYS TOWNE CENTER6455 State Farm Dr, Rohnert Park, CA 94928



11,400 SF 2,400 SF $1.50

MAJOR TENANTS

Tam Cam Dance Studio

Andrew Lee

Easy Stop Market

Sam's

7

NOTESRetail & mixed-use. Office space available. $18.00 ann. / $1.50 mo. modified gross.

6245-6475 REDWOOD DRIVE6245-6475 Redwood Drive, Rohnert Park, CA 94928



293,224 SF 0 SF $2.50

MAJOR TENANTS

Target

JoAnn's Fabrics

99 Cents Only

Burlington Coat Factory

8

NOTESEffective rents of $30.00 ann. / $2.50 mo. NNN for shop space. - Source -Costar

TARGET CENTER311 Rohnert Park Expy W, Cotati, CA 94928

PROPERTY NAME

MARKETING TEAM



rentpropertyname1


rentpropertyname1


rentpropertyname1


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148,536 SF 10,400 SF $1.90

MAJOR TENANTS

Food Maxx

Big Lots

PetSmart

Chuck E Cheese

9

NOTESEffective rents for shop space $30.00 ann. / $2.50 mo. NNN. Source -Costar

EXPRESSWAY MARKETPLACE575 Rohnert Park Expy W, Rohnert Park, CA 94928

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on November 2018

POPULATION 1 Miles 2 Miles 3 Miles 2022 Projection

Total Population 23,185 46,191 58,163

2017 Estimate


2010 Census


2000 Census


Current Daytime Population

2017 Estimate 22,578 41,860 51,828

HOUSEHOLDS 1 Miles 2 Miles 3 Miles 2022 Projection

Total Households 7,896 17,664 22,253

2017 Estimate


Average (Mean) Household Size 2.62 2.50 2.52

2010 Census


2000 Census


Occupied Units

2022 Projection 7,896 17,664 22,253

2017 Estimate 7,805 17,457 22,035

HOUSEHOLDS BY INCOME 1 Miles 2 Miles 3 Miles 2017 Estimate

$150,000 or More 8.37% 8.54% 9.81%

$100,000 - $149,000 18.22% 15.95% 16.29%

$75,000 - $99,999 16.75% 16.74% 16.77%

$50,000 - $74,999 20.50% 20.79% 20.45%

$35,000 - $49,999 11.37% 11.80% 11.73%

Under $35,000 24.81% 26.20% 24.96%

Average Household Income $80,893 $79,111 $82,971

Median Household Income $66,673 $64,111 $65,813

Per Capita Income $29,036 $30,780 $32,076

HOUSEHOLDS BY EXPENDITURE 1 Miles 2 Miles 3 MilesTotal Average Household Retail Expenditure $77,575 $75,288 $76,880

Consumer Expenditure Top 10 Categories

Housing $22,924 $22,356 $22,773

Shelter $15,248 $14,804 $15,032

Transportation $12,653 $12,186 $12,441

Personal Insurance and Pensions $7,910 $7,553 $7,844

Food $7,892 $7,671 $7,823

Health Care $3,853 $3,969 $4,112

Utilities $3,482 $3,432 $3,510

Apparel $3,093 $2,834 $2,920

Entertainment $2,975 $2,942 $3,018Household Furnishings and Equipment $1,823 $1,780 $1,827

POPULATION PROFILE 1 Miles 2 Miles 3 Miles Population By Age

2017 Estimate Total Population 23,007 45,572 57,245

Under 20 27.97% 24.52% 23.90%

20 to 34 Years 28.97% 27.34% 26.30%

35 to 39 Years 5.72% 6.03% 6.03%

40 to 49 Years 12.02% 12.11% 12.30%

50 to 64 Years 16.91% 18.30% 19.47%

Age 65+ 8.39% 11.71% 12.00%

Median Age 29.91 33.63 34.86

Population 25+ by Education Level

2017 Estimate Population Age 25+ 13,512 29,421 37,723

Elementary (0-8) 2.41% 2.79% 2.86%

Some High School (9-11) 6.42% 6.87% 6.81%

High School Graduate (12) 22.34% 22.12% 22.24%

Some College (13-15) 28.70% 29.25% 28.84%

Associate Degree Only 11.45% 11.15% 10.65%

Bachelors Degree Only 19.09% 18.89% 19.66%

Graduate Degree 7.55% 7.58% 7.75%

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DEMOGRAPHICS

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and shouldnot be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation 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 duediligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, thefuture 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 orasbestos, 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 anytenant'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 bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures toverify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo orname is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

SONOMA SQUARE SHOPPING CENTERRohnert Park, CAACT ID Z0570047

Investment Contacts

John Koskinen(805) [email protected] CA 02036512

Mark Mason(415) [email protected] CA 0022124

Documents

Offering Memorandum - LoopNet · 2018. 11. 13. · SONOMA SQUARE SHOPPING CENTER. 1460 E Cotati Ave, Rohnert Park, CA 94928. 1. Annual Per SF. Income. $189,807 $19.79 NOI. $135,700