Tai Martin+1 805 595 [email protected]. No. 01114741
Steve Golis+1 805 879 [email protected]. No. 00772218
Offering MemorandumFor Sale | Retail/Office
The Gateway Plaza
West Grand Avenue | Grover Beach, CA1800
The Gateway Plaza1800 Grand Avenue | Grover Beach, CA
Pro Forma Cap: 8.04% Pro Forma NOI: $379,811
The Gateway Plaza stands proudly on the corner at E
Grand Ave. (23,486 AADT) and S. Oak Park Blvd. (13,903
AADT), welcoming homesteaders and visitors alike to the
coastal community of Grover Beach.
This bright, L-shaped plaza disperses visibility to all tenants
of the center, while a quaint-yet-eyecatching coffeeshop
is perched at the intersection itself, luring passerbys in
with convenience and intrigue. With ample parking and
a lively, mixed-contemporary design. Gateway Plaza is
designed to execute it’s own marketing work, making is a
highly favorable location for customers and tenants alike.NOW OFFERED AT:
$4,725,000
OAK PARK BLVD - 13,903 AADT
GRAND AVE - 23,486 AADT
1FOR SALE The Gateway Plaza | 1800 Grande Avenue, Grover Beach CA
#of Units: 13 Retail/Office
Price: $4,725,000
Price/SF: $197 PSF
Current NOI: $181,919
APN: 060-309-010
Lot Size: +/-57,935 SF
Building Size: +/-23,959 SF
Built: 1997
Cap Rate:
Current 4.69%
Pro Forma 8.04%
Property Details
Tenant Roster
FOR SALE The Gateway Plaza | 1800 Grande Avenue, Grover Beach CA
UNIT TENANT SUITE SF % OF PLAZA PROFORMA ACTUAL RENT PSF LEASE TYPE
NNN AMOUNT
MONTHLY PAYMENT
LEASE START DATE ESCALATIONS OPTIONS
ABC Dragon Palace 4,473 SF 18.7% $5,636 $5,636 $1.26 PSF NNN $1,610 $7,246 12.1.2011 Annual Fixed 3-4% N/A
D J Nails & Spa 1,500 SF 6.3% $1,200 $1,210 $1.40 PSF NNN $540 $1,750 5.1.2015 Bi-Annual Fixed 6-7% 5 Year Option
C TKM Home Sales 1,020 SF 4.3 $1,581 $1,581 $1.55 PSF NNN $367 $1,948 7.31.2015 Annual Fixed +3% N/A
F Discount Cigarettes 1,500 SF 6.3% $2,250 $2,250 $1.50/ PSF NNN $540 $2,790 6.23.2000 Annual Fixed 3-4% N/A
G Vacant 1,500 SF 6.3% $1,875 - $1.25 PSF NNN - - - - -
HI Vacant 2,200 SF 9.2% $1,980 - $0.90 PSF NNN - - - - -
JK Vacant 2,000 SF 833% $1,800 - $0.90 PSF NNN - - - - -
L Storage/Office - - - - - - - - - - -
M Taqueria Guerro 1,490 SF 6.2% $2,300 $2,300 $1.54 PSF NNN $534 $2,834 4.3.2000 Annual Fixed 3-4% 5 Year Option
N Doughboys 1,044 SF 4.4% $1,409 $1,409 $1.35 PSF NNN $346 $1,755 3.29.2002 Annual Fixed 3-4% N/A
O Edward Jones 1,824 SF 7.6% $2,517 $2,517 $1.38 PSF NNN $657 $3,174 11.1.2008 Annual Fixed 3-4% N/A
P Vacant 2,000 SF 8.3% $3,000 - $1.50 PSF NNN - - - -
QR 7-Eleven, Inc $2,958 SF $12.3% $8,135 $8,948 $3.03 PSF NNN $1,065 $10,013 6.9.2011 10% Every 5 Years N/A
S Crossroads Cafe 450 1.9% $1,215 $1,215 $2.70 PSF NNN $162 7.1.2012 Bi-Annual Fixed 3-4% N/A
TOTALS: 23,959 SF $35,798 $27,956 $34,832
A B
C
D E
F G H I J
K
L M
N O
P Q
S
R
Current Tenant Layout
Corner Monument Sign
2
Breezeway
1800 Grande Avenue | Grover Beach, CA
FOR SALE The Gateway Plaza | 1800 Grande Avenue, Grover Beach CA
TENANT SUITE SIZE BUSINESS LEASE PER MO. NNN @ $0.36 PSF
GROSS INCOME
Formerly Dentist 1,500 SF Health Service $1,875 $540* $2,415
Formerly Mattress 2,200 SF Retail $1,980 $792* $2,771
Formerly H&R Block 2,000 SF Service $1,800 $720* $2,520
Formerly Goodwill 2,000 SF Retail $3,000 $720* $3,720
J Nails & Spa 1,500 SF Nail Salon $2,100 $540 $2,640
Crossroads Cafe 450 SF Coffee $1,215 $162 $1,377
Discount Cigarettes 1,500 SF Cigarettes $2,250 $540 $2,836
Doughboys 1,044 SF Pizza $1,409 $376 $1,785
Edward Jones 1,824 SF Services $2,517 $657 $3,174
Taqueria Guerrero 1,490 Restaurant $2,300 $536 $2,836
TKM Home Sales 1,020 SF Real Estate $1,581 $367 $1,948
Drangon Palace 4,473 SF Restaurant $5,636 $1,610 $7,246
7-Eleven, Inc. 2,958 SF Sundries $8,135 $1,065 $9,199
Current Monthly Lease Income: $27,143
Current Monthly CAM Fees: $5,853
Current Gross Monthly Income: $32,996
Current Effective Gross Economic Income: $395,950
Projected Monthly Lease Income: $35,798
Proforma Monthly CAM Fees @ $.55 PSF: $13,177
Projected Gross Monthly Income: $48,975
Effective Gross Economic Income: $587,700
*current and projected monthly lease rates using historical rates
3
Executive Summary
#of Units: 13 Retail/OfficePrice: $4,725,000
Price/SF: $197 PSFCurrent NOI: $221,821
CURRENT CAP: 4.69%
APN: 060-309-010
Lot Size: 57,935 SF
Building Size: 23,959 SF
FINANCIALS
Annual ExpensesExpense Pro Forma % GOI
Real Estate Taxes 1.170% $55,283 9.41%Bank Service Charges: Est. $1,050 0.18%Advertising: Est. $2,505 0.43%Insurance: Est. $17,773 3.02%Utilities: (Gas, Water, Electric) Est. $39,922 6.79%Telephone: Est. $6,905 1.17%Property Alarm: Est. $693 0.12%Office Expense: Est. $857 0.15%Management Fees: Est. $12,300 2.09%Maintenance & Repairs: Est. $36,466 6.20%Legal & Accounting Est. $34,135 5.81%
Total Annual Expenses: $207,889 35.4%
Current Pro Forma
GOI: $395,950 $587,700
Annual Exp: $174,138 $207,889
NOI: $221,812 $379,811
CAP Rate: 4.69% 8.04%
Calculations:
PRO FORMA
1800 Grande Avenue | Grover Beach, CA
FOR SALE The Gateway Plaza | 1800 Grande Avenue, Grover Beach CA
4
Atascadero
S
1
2
3
San Luis Obispo & Five Cities
5
6
7
Sale Comparables
COMP. PROPERTY ADDRESS DATE OF SALE SALE PRICE # UNITS LOT SIZE
(ACRES) BUILDING
SF PRICE PSF CAP RATE
SGateway Plaza 1800 Grand Ave. Grover Beach, CA
Subject $5,250,000 13 1.33 ±23,959 SF $209/SF 4.69%
1Tenwise Park 3536-3546 S. Higuera St. San Luis Obispo, CA
Active $6,000,000 6 3.98 25,454 SF $236/SF 5.42%
2
Arroyo Town & Country Center 1464 E. Grand Ave. Grover Beach, CA
9/18/2017 $8,020,000 15 2.81 23,609 SF $340/SF
3Marigold Center 3940-3960 Broad St. San Luis Obispo, CA
7/11/2017 $43,550,000 9 2.47 174,428 SF $250/SF 5.76%
4The Adobe Plaza 7305-7385 El Caino Real Atascadero, CA
Active $7,100,000 5 3.65 38,599 SF $184/SF 6.17%
5 618-324 E. Grand Ave. Grover Beach, CA 4,600 SF $1,490,000 6 0.36 5,808 SF $257/SF 5.40%
6AG West Villiage130 W. Branch St. Arroyo Grande, CA
1,420 SF $5,380,000 8 $511 $160/SF 7.80%
7 215-295 W. Grand Ave. Grover Beach, CA 1,396 SF $2,800,000 10 0.7 $503 $311/SF 4.95%
4
FOR SALE The Gateway Plaza | 1800 Grand Avenue, Grover Beach CA [email protected] | [email protected]
FOR SALE The Gateway Plaza | 1800 Grande Avenue, Grover Beach CA
Photo Gallery
5
FOR SALE The Gateway Plaza | 1800 Grand Avenue, Grover Beach CA [email protected] | [email protected]
Plaza Surgery Specialist Ctr.
Digital Medical Imaging
Arroyo Grande
COMMERCIAL CORRIDOR
OAK
PARK
- 13
.9K
AADT
Pismo Beach 101
1011
Driv
e Ti
me:
3 M
in (G
atew
ay P
laza
to 10
1)
SUBJECT
2,315 HOUSEHOLDS
HOTEL DVLPMNT.
Traffic Volume: 23,486 AADT
Z
Average Household Income (2018)
$8.86K
Projected Population Growth (2023)
48.4K
Current Population (2018)
46.6K
Total Households
$18.8K
1,287 HOUSEHOLDS
3 MI. DEMOGRAPHICS
SUBJECT
Gateway Plaza
Transit Routes & Bus Stops
Major Arteries
Public School
Amtrak Station
Annual Consumer Spending
$541.7K
Steve Golis+1 805 879 [email protected]. No. 00772218
Tai Martin+1 805 575 [email protected]. No. 01114741
$
MONARCH BUTTERFLY GROVE
OCEANO DUNES & CAMPGROUND
KEY:
6
FOR SALE The Gateway Plaza | 1800 Grand Avenue, Grover Beach CA [email protected] | [email protected]
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Tai Martin+1 805 595 [email protected]. No. 01114741
Steve Golis+1 805 879 [email protected]. No. 00772218
Grand Avenue | Grover Beach, CA1800
Offering MemorandumFor Sale | Retail/Office
The Gateway Plaza