Investment Opportunity Multi Tenant Leased

Downtown Merced 1729 - 1735 Canal Street, Merced, CA 95340

Offering Memorandum : Commercial BrokerageP: (800)277-5732

E: info@MercedYosemite.com

CA BRE License #1825768

1735 Canal Street

Table of Contents

Area Overview

• Merced Demographics

• Merced Growth

• Merced Growth : UC Merced

Maps | Aerials

• Downtown Merced Corridor

• Public Parking Lot Map

• Parcel Map

• Floor Plans

Investment Summary

• Property History

• Investment Summary

• Income and Expenses

• Lease Abstract

Tenant Profiles

• Merced Art Hop

• La Mejor

• Lens 360

• Betty’s Bridal

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Merced Demographics

Merced City Abstract

Merced is a “City on the Rise”; a dynamic community located in

the Central Valley of California. Merced citizens fondly state that

Merced is “two hours from everything.” It’s true. The City is

located approximately 110 miles southeast of San Francisco and

310 miles northwest of Los Angeles. Merced is known as ‘The

Gateway to Yosemite’ as it is less than a two hour drive away from

the National Park. The City has a population of about 81,130 as of

2014. Merced is located on Highway 99, the dominant north- south

freeway in California, and is served also by Highways 140 and 59.

Merced has a small-town feel with city perks. The University of

California Merced campus opened in 2005 and provides new

educational and economic opportunity, adding to the already-

established growth in the region. Local planning is underway to

accommodate campus development, with a goal of 10,000

students by 2020 and to eventually accommodate about 25,000

students.

Located in the heart of the San Joaquin Valley, a portion of

California’s Great Central Valley, Merced is the region’s hub for

education, culture, and business. The community offers abundant

shopping, pleasant neighborhoods and established treelined

streets. Merced’s revitalized downtown is emerging as the

entertainment center of the area. Annual events and festivals

bring regional and even national recognition. Merced’s Valley

location southeast of San Francisco provides easy access to the

central California coast, Sierra Nevada mountains and national

parks, and major cities. Residents enjoy short drives to skiing,

beaches, fishing, and other outdoor attractions.

1 Mile

17,400

Population:

Average Age:

Households:

Average Household Income:

5 Mile

96,9003 Mile

83,800

1 Mile

285 Mile

28

3 Mile

28

1 Mile

5,350

5 Mile

29,8473 Mile

26,380

1 Mile

$35,000

5 Mile

$53,0003 Mile

$51,000

0 500 1000 1500 2000 2500

County of Merced

UC Merced

Mercy Medical Center

Merced City School District

Merced Unified High School Dist

Merced Community College

Golden Valley Health Center

City of Merced

Quad Graphics

Wal-Mart

Top Merced County Employers

Merced Growth

Downtown Revival:

El Capitan Hotel | The Mainzer: Expected Completion : 2019

San Francisco-based Joie de Vivre Hotels

is partnering in the renovation of the four-

story hotel. Expected to finish construction

in 2019, this boutique hotel will

significantly elevate the downtown area.

UC Merced : Downtown Center Completed 2018

The three-story Downtown Campus Center

has given UC Merced a much-needed

physical presence in the heart of

downtown, increasing the economic

vitality of the downtown area and creating

major new opportunities for collaboration

between the university and the

community. Adding over 300 employees

who will be co-located in the heart of

downtown.

Hotel Tioga : Luxury ApartmentsExpected Completion : 2019

The Tioga is on the National Register of

Historic Places and its remodel will keep

the historic character of the original

building. The historic hotel was visited by

John F. Kennedy, Marilyn Monroe and

many other movie stars of the 1960’s.

Merced Growth Cont. Merced County: Among the fastest growing in the State

Merced County’s population is projected to grow by nearly 68 percent between 2015 and 2060, reaching 452,519 residents.Expanding Transportation:

California High Speed Rail: Estimated completion 2025Merced is slated to be a hub on the High Speed Rail, a $64

Billion dollar project, connecting San Francisco with Las

Angeles. ACE Train: Estimated completion 2027.

ACE Train: Estimated completion 2027Recently approved Senate Bill 1 approves extension for the

existing ACE Train to Merced, providing jobs and access over

Altamont Pass to this fast growing region.

Campus Parkway: Estimated completion 2022$100 Million in State Hwy funds to extend campus parkway

between UC Merced and Highway 99; setting the way for the

business and trade corridor growth in Merced.

Castle Commerce Center Tenant Highlights:

Waymo (Google): Current Tenant Google’s self driving vehicle testing facility that is currently utilizing ~121

acres.

Port of LA: Planning StageThe recently approved agreement between the County of Merced and The

Port of LA (Los Angeles) earmark more than 8 million square feet for

industrial development. This could potentially bring in thousands of

additional jobs to the region.

Merced Growth Expanded : UC Merced

MERCED 2020 Project : Overview / Fast Facts

Since opening its doors in 2005, UC Merced has

been the fastest growing public university in the

nation. This growth is now being accelerated with

the UC Merced 2020 Project, which includes13

new building on the campus in a three-year span.

The $1.3 billion expansion will allow UC Merced

to serve up to 10,000 students by 2020.

$1.3 B

Budget

1.2 M

SQ FT

13LEED Certified Gold

Buildings

7,375Under Grad Students

592Grad Students

9,202Alumni

Top 100

Among Public Schools*

1,532 Staff & Facility

Downtown Merced Corridor

Downtown Center

Target Property

Public Downtown Parking Lots

In addition to ample street parking, downtown Merced

has approximately 1,400 dedicated Parking Spaces

Target Property

Parcel Map

Floor Plans

Living Area Area Calculation Summary Calculation Details

1st Floor Approximately 5,820 Sq Ft = (76 x 75) + (15 x 8)

2nd Floor Approximately 6,840 Sq Ft = 90 x 76

TOTAL (Rounded): Approximately 12,660 Sq Ft

Property History

History in Brief //

The New Lodging House, later known as the Angelus

Hotel, occupied the upper floor of this building in 1914

while the Garibaldi Grocery Company was on the first

floor. The United States Post Office serving Merced was

located in this building from 1914-1921. The

postmasters during this period, C.D. Radcliffe (1915-

1918) and A.E. Daneri, were both Wilson appointees.

By the 1920's the French Grocery Company had

replaced the Garibaldi's store. The Lewis Shoe

Company opened for business here around 1923.

Following the Lewis Shoe company, the building was

sold to Joseph Stefani, who opened up his iconic men's

clothing store, which was established in June 1935, and

moved to this location in 1940. The clothier remained

an anchor for ~25 years in this location.

The building has remained within the Stefani family for

the past three generations and currently houses a

number of tenants, including the Merced Art Hop; a

keystone member of the cultural infrastructure of

downtown Merced.

1959

1970

1914

Investment Summary & Comparison

Offering Price

Price | Building SF

NOI

Cap Rate

Occupancy

Replacement Cost

Address

County

Assessor’s Parcel No.

Building Area

Land Area

Stories

Ownership

Year Built

Architect

Historic Name

$849,000.00

$67.14

$6,157.00 Projected

Variable

60%

PENDING

1729 - 1735 Canal Street

Merced, CA 95340

Merced

031-141-004-00012,660 Sq Ft est. (1st and 2nd Story)

~6750 SF est.

2 Stories

Fee Simple

1912

Unknown

Harris-Garibaldi Building

Offering Price

Price | Building SF

NOI

Cap Rate

Occupancy

Replacement Cost

Address

County

Assessor’s Parcel No.

Building Area

Land Area

Stories

Ownership

Year Built

Architect

$5,379,270.00

$229.19

$322,756.20

6%

100%

$6,750,000

501 W. Main Street

Merced, CA 95340

Merced

031-141-006-00018,112 Sq Ft

.17 Acres

3 Stories

Fee Simple

1928

Kingsbury E. Parker

Income and Expenses

Gross Income Jan 2017 – April 2018 $43,994.40

Total Expenses $37,837.09

Net Operating Income (NOI) $6,157.31

Expenses Jan 2017 – April 2018

Property Maintenance $4,200.00

Building Supplies $378.58

PG&E $11,273.00

San Joaquin Glass $600.00

Professional Services $3,773.50

Insurance $6,240.00

Merced County Tax $1,720.00

City of Merced $686.53

Gateway Fire Equipment $211.36

Income Summary Expense Summary

Monthly Individual Tenant Rent Rate

Merced Art Hop $ 825.00

Betty’s Bridal $ 1000.00

La Mejor $ 500.00

Lens 360 $ 800.00

Total $ 3650.00

Lease Abstract

Tenants

Premises

Lease Term

Renewal Options

Lease Type

Rent Increases Restrictions

Use

Property Taxes

Utilities

Property Insurance

Roof & Structure

Maintenance & Repairs

Lens 360

Betty’s Bridal

La Mejor

Merced Art Hop

12,660 Sq Ft est.

Month to Month Agreements

N/A

Lease in Gross

N/A

Various Retail Application

Landlord Pays

Landlord Pays

Landlord Pays

Landlord Pays

Landlord Pays

Tenant Spotlight : La Mejor

La Mejor Magazine : Overview

Regionally syndicated magazine highlighting

local Hispanic Culture, Events and Businesses

in the San Joaquin Valley. La Mejor Magazine

was founded to give voice to the current

happenings and heritage that affect the

Hispanic community today.

Tenant Spotlight : Merced Art Hop

Merced Art Hop: Overview

Merced Art Hop is an educational non-profit organization,

educating art awareness, expressing creativity and

culture. To date, they have presented thirty one Art Hops

with support and enthusiasm from the Community each

event has tons of art, rich in culture, live music, interactive

art activities and performers. The Art Hop is expanding in

attendance and participation. Each event draws around

3,000 art enthusiasts and yearly total of 12,000, from all

ages. To date they’ve recruited around 300 visual and

performing artists and have outreached to over 30 schools

(Elementary, HS, and Colleges), and tabled 25 plus

community events yearly. They continue to persevere in

our mission to enhance the health and quality of life in the

community of Merced and Central California, through the

art and artists which live among us.

Tenant Spotlight : Betty’s Bridal

Betty’s Bridal : Overview

Betty’s Bridal has been supplying the greater

Merced area with dresswear and decor for all of

life’s most important events since 2012.

Tenant Spotlight : Lens 360

Lens 360: Overview

Specializing in Social Media Management and

Video Editing, Lens 360 has proven itself to be a

fast growing business in the Merced Area. Lens

360 also offers itself as a small event venue for

private art and entertainment.