FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
www.svnfgg.com All Sperry Van Ness® Offices Independently Owned & Operated. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
www.svnfgg.com
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
S A L E S O V E R V I E W
Sales Price $2,125,000
NOI $106,249
Cap Rate 5%
P R O P E R T Y D E S C R I P T I O N
SVN | FGG is excited to bring this unique opportunity to own an easement for an outdoor billboard along Highway 101 in the SF Bay Area. Currently leased to Clear Channel Outdoor Holdings, Inc (NYSE: CCO) on a NNN lease for a 24 year term expiring in 2041. The lease provides for an opportunity to increase base rents every three years through 2031. Easement ownership does qualify for 1031 Exchange. Easement on the property is held in perpetuity and there no obligations to the property owner for maintaining this easement.
2
www.svnfgg.com
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
P R O P E R T Y H I G H L I G H T S
• Rare opportunity to own an easement controlling
Highway 101 billboard
• 1031 Exchange qualified (please consult your tax
advisor)
• Long-term lease (24 years remaining) with NYSE
traded company
• Lease provides an opportunity to increase base rent
every three years through 2031
• High traffic counts of approximately 200,000 VPD
• High barriers of entry for additional billboards to be
constructed along Hwy 101
3
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
www.svnfgg.com
I N C O M E S U M M A R Y
Annual Base Rent $106,249
Annual Percentage Rent * $0
Total $106,249
E X P E N S E S U M M A R Y
Annual Gross Expenses $0
Net Operating Income $106,249
L E A S E S U M M A R Y
Tenant Name Lease Starts Lease Ends Annual Rent
Clear Channel 11/1/2009 8/31/2041 $106,249
4
*Lease contains percentage rent clause in addition to base rent, however none is currently projected.
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
www.svnfgg.com
L O C AT I O N M A P
5
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
www.svnfgg.com
A R I E L M A P
6
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
www.svnfgg.com
US-101 South Bound View US-101 North Bound View US-101 North Bound View
P H O T O S
7
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
www.svnfgg.com
T E N A N T P R O F I L E
Clear Channel Outdoor, traded on NYSE, is one of the world’s largest outdoor advertising companies with more than 675,000 displays reaching more than half a billion people in more than 40 countries on five continents each month. Clear Channel Outdoor help advertisers create inspiring out-of-home campaigns via traditional and digital display formats in roadside, urban, transit and airport environments, on street furniture and at retail near point of sale. In the U.S., Clear Channel Outdoor operates in 45 of the top 50 U.S. markets and is the leading outdoor advertising company with the fastest-growing digital outdoor network now surpassing 1,110 displays.
8
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
www.svnfgg.com
O N G O I N G A S S E T M A N A G E M E N T - O P T I O N A L
For $100 per month, First Guardian Group will manage your property and collect and distribute rents on your behalf.
Cash Application • Post Payments • Reconciliation • Investor Reporting
Lease Administration • Tenant Payment • Conversion • Post-closing Follow Up • Tenant Relations
Asset Management • Lease Renewals and Amendments • Documents and Consents • Landlord Relations
9
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
www.svnfgg.com
P E R P E T U A L G R O U N D L E A S E E A S E M E N T S T R U C T U R E
Advertisers
Rent and Lease Agreement
Property Owners
Easement Owner
Rent and Lease Agreement
Perpetual Easement
• Real property interests underlying operationally essential infrastructure • Effectively triple net lease rents with no operating expenses or capex • Contractual rent escalators with upside
10
U.S. OUTDOOR ADVERTISING REVENUE ($ in Billions)
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
www.svnfgg.com
$6.9 $7.0 $7.3 $7.7 $8.0 $8.3 $8.7 $9.0 $9.4 $9.7 $10.1 $10.5 $10.9 $11.3
More than 165,000 locations
• Outdoor advertising has been steadily growing in the US • Increasing traffic congestion on US-101 may lead to higher future valuation of billboard easements
11
G R O W I N G T R E N D
AVERAGE DAILY TRAFFIC ON US-101 (Number of Vehicles Per Hour)
2005 10,100
2010 11,900
2015 14,800
Source: Outdoor Advertising Association of America Source: U.S. Department of Transportation
www.svnfgg.com
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
2 0 1 3 ( A U G T O D E C ) R E V E N U E B R E A K D O W N
Statement Period Base Rent Monthly Net Advertising Revenue Share % Percentage Rent Total Rent
Aug 2013 6,690.35 31,089.28 43.0% 6,678.04 13,368.39
Sep 2013 6,600.00 26,105.18 48.5% 6,061.01 12,661.01
Oct 2013 6,509.65 27,768.39 48.5% 6,958.02 13,467.67
Nov 2013 6,600.00 23,869.05 48.5% 4,976.49 11,576.49
Dec 2013 6,600.00 23,181.88 48.5% 4,643.21 11,243.21
Totals 33,000.00 132,013.78 29,316.77 62,316.77
12
www.svnfgg.com
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
2 0 1 4 R E V E N U E B R E A K D O W N
Statement Period Base Rent Monthly Net Advertising Revenue Share % Percentage Rent Total Rent
Jan 2014 6,600.00 23,306.07 48.5% 4,703.44 11,303.44
Feb 2014 6,600.00 24,000.00 48.5% 5,040.00 11,640.00
Mar 2014 6,600.00 9,571.43 48.5% - 6,600.00
Apr 2014 6,600.00 10,714.29 48.5% - 6,600.00
May 2014 6,600.00 8,571.43 48.5% - 6,600.00
Jun 2014 6,600.00 16,785.71 48.5% 1,541.07 8,141.07
Jul 2014 6,600.00 21,428.57 48.5% 3,792.86 10,392.86
Aug 2014 6,600.00 14,111.61 48.5% 244.13 6,844.13
Sep 2014 6,600.00 21,535.71 48.5% 3,844.82 10,444.82
Oct 2014 6,600.00 23,125.00 48.5% 4,615.63 11,215.63
Nov 2014 6,600.00 21,964.29 48.5% 4,052.68 10,652.68
Dec 2014 6,600.00 21,000.00 48.5% 3,585.00 10,185.00
Totals 79,200.00 216,114.11 31,419.63 110,619.63
13
www.svnfgg.com
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
2 0 1 5 R E V E N U E B R E A K D O W N
Statement Period Base Rent Monthly Net Advertising Revenue Share % Percentage Rent Total Rent
Jan 2015 6,600.00 13,785.71 48.5% 86.07 6,686.07
Feb 2015 6,600.00 19,364.65 48.5% 2,791.86 9,391.86
Mar 2015 6,600.00 10,883.23 48.5% - 6,600.00
Apr 2015 6,600.00 21,964.28 48.5% 4,052.68 10,652.68
May 2015 6,600.00 25,132.15 48.5% 5,589.09 12,189.09
Jun 2015 6,600.00 23,378.57 48.5% 4,738.61 11,338.61
Jul 2015 6,600.00 17,303.57 48.5% 1,792.23 8,392.23
Aug 2015 6,600.00 17,503.58 48.5% 1,889.24 8,489.24
Sep 2015 6,600.00 19,607.15 48.5% 2,909.47 9,509.47
Oct 2015 6,600.00 12,446.42 48.5% - 6,600.00
Nov 2015 6,600.00 19,821.44 48.5% 3,013.40 9,613.40
Dec 2015 6,600.00 19,196.42 48.5% 2,710.26 9,310.26
Totals 79,200.00 220,387.17 29,572.90 108,772.90
14
www.svnfgg.com
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
2 0 1 6 R E V E N U E B R E A K D O W N
Statement Period Base Rent Monthly Net Advertising Revenue Share % Percentage Rent Total Rent
Jan 2016 6,600.00 18,017.86 48.5% 2,138.66 8,738.66
Feb 2016 6,600.00 25,696.43 48.5% 5,862.77 12,462.77
Mar 2016 6,600.00 29,339.28 48.5% 7,629.55 14,229.55
Apr 2016 6,600.00 26,464.28 48.5% 6,235.18 12,835.18
May 2016 6,600.00 23,267.87 48.5% 4,684.92 11,284.92
Jun 2016 6,600.00 13,821.42 48.5% 103.39 6,703.39
Jul 2016 6,600.00 20,160.72 48.5% 3,177.95 9,777.95
Aug 2016 6,600.00 12,946.43 48.5% - 6,600.00
Sep 2016 8,854.07 12,767.85 48.5% - 8,854.07
Oct 2016 8,854.07 7,857.14 48.5% - 8,854.07
Nov 2016 8,854.07 24,642.86 48.5% 3,097.72 11,951.79
Dec 2016 8,854.07 19,196.42 48.5% 456.19 9,310.26
Totals 88,216.28 234,178.56 33,386.32 121,602.60
15
www.svnfgg.com
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
2 0 1 7 Y T D R E V E N U E B R E A K D O W N
Statement Period Base Rent Monthly Net Advertising Revenue Share % Percentage Rent Total Rent
Jan 2017 8,854.07 10,517.86 48.5% - 8,854.07
Feb 2017 8,854.07 9,500.00 48.5% - 8,854.07
Mar 2017 8,854.07 10,517.86 48.5% - 8,854.07
Apr 2017 8,854.07 19,706.35 48.5% 703.51 9,557.58
Totals 35,416.28 50,242.07 703.51 36,119.79
16
www.svnfgg.com
FOR SALE
BILLBOARD EASEMENT OFF US-101 2055 Laurelwood Rd, Santa Clara, CA 95054
C O N TA C T
For more information, please contact: Paul Getty President and Managing Director (408) 392-8822 [email protected] BRE# 01705899
Office Location: 777 North First Street, Suite 720 San Jose, CA 95112
All Sperry Van Ness® Offices Independently Owned & Operated. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
Erik Carlson Senior Advisor and Vice President (408) 392-8822 [email protected] BRE# 01347649
Jane Lee Associate Advisor (408) 392-8822 [email protected] BRE# 01913569
17