orchard plazaA trophy strip center
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fully leased retail strip center, shadow anchored by small format grocery store540 Bogue Rd, Yuba City, CA
• high-traffic intersection• strong demographics & traffic counts• Significant term remaining on leases
with staggered rollover
RentABle SF . . . . . . . . . . . 10,916 SFPRiCe PeR SF . . . . . . . . . . . $258oCCuPAnCY . . . . . . . . . . . 100%YeAR Built . . . . . . . . . . . 2005 lot Size . . . . . . . . . . . . . . 1 .01 AC
PRICE: $2,810,000CAP: 7.51%noI: $211,055
Listing Team Contact Info
thE subjECt PRoPERty Is thE shoPs PoRtIon of A gRoCERy AnChoREd CEntER loCAtEd In An AffluEnt mARkEt In noRthERn CAlIfoRnIA.
Capital Pacific collaborates . Click Here to meet the rest of our San Francisco team .
dave lucasdlucas@capitalpacific .com | (415) 274-7390CA BRE# 01389761
The shopping center is shadow anchored by a small format grocery store, which serves as a daily needs ‘bodega’ for the dense suburban residential population .
The center is leased to a diverse mix of tenants, including a nail salon, restaurant, dentist’s office, fitness tenant, ice cream shop, and a dry cleaners . Most of the tenants in the center have renewed their original leases, demonstrating strong commitments to the center . Straw Hat Pizza (end cap tenant) has 9 years remaining on their lease .
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
investment highlights
orchard Plaza | 2
staggered lease rollover with significant term remaining on leases.See page 7 for more details.
core characteristics
well maintained & recent capital improvementsThe attractive, 2005 construction and handsome building facade lends tremendous curb appeal . The building was recently improved with aesthetic updates including new high-quality Evershield paint, with a redesigned color palette, stone tile, landscaping, improvements, and new parking lot sealing and striping . A new monument sign is also in the process of being installed .
small format grocery anchored centerThe center is shadow anchored by a 10,000 SF small-format Tower Market grocery store . Power Market is a complete grocery anchor with a full fresh produce section, butcher counter, and dairy section . The presence of the Tower Market (not a part of the offering) brings in daily needs customers to the center who would otherwise have to travel significant distances toward the congested downtown of Yuba City to get to a grocery store .
access and visibility The subject property is located at the signalized intersection of Garden Highway and Bogue Road with prominent visibility from both roads and outstanding ingress/egress . There is dedicated left-hand turn access into the site from Bogue Road .
excellent retail location with limited competitionLocated at the southwest corner of Garden Highway and Bogue Road, the subject property serves a dense residential population in the southeast quadrant of Yuba City, with limited retail competition in the surrounding area and low probability of additional retail development . Please contact agent for full details on submarket development .
high traffic countsThe site is located at the intersection of Bogue Road (17,410 VPD) and Garden Highway (11,450 VPD) with a combined traffic count of 28,860 VPD . Highway 99 is a mile west of the site and has 32,500 VPD .
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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Aerial
Colusa Highway
Golden State Highway
Garden Highway
Bogu
e Ro
ad
Bogue Road
linc
oln
Road
Fran
klin
Roa
d
Franklin Avenue
9999
20
20SUTTER COUNTY
AIRPORT
Park Avenue elementary
Riverbend elementary
Butte Vista elementary
Bridge Street elementary
St . isadore Catholic School
Yuba City Charter School
Gray Avenue Middle Schoollincrest
elementary
lincoln elementary
Andros Karperos School
Yuba City High School
River Valley High School
YuBA SutteR MAll
YuBA CitY MARKetPlACe
SACRAMENTO
99
17,410 DAILY
retail oasis with limited competition in the surrounding area
SUBJECT PROPERTY
ReSidentiAl tRAde AReA
PlAnned FoR ReSidentiAl
deVeloPMent
ReSidentiAl/CoMMeRCiAl tRAde AReA
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
orchard Plaza | 4
hESPERIAN CENTER
orchard plaza has a combined traffic count of 28,860 vpd and is one mile from highway 99 (32,500 vpd)
99
99
traffic counts & residential density
BoGue RoAd
GARden HW
Y
tRAFFiC CountS
bogue rd: 17,410 VPD
highway 99: 32,500 VPD
garden hwy: 11,450 VPD
HiGH denSitY SuBuRBAn ReSidentiAl
17,410 DAILY
11,450 DA
ILY32
,500
DA
ILY
SUBJECT PROPERTY
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
orchard Plaza | 5
drone image of shopping center
starbucks (nap) has been at this location for 10 years and just extended for another 10 years in 2016.
orchard Plaza | 6
CurrentCurrentCurrentCurrent CurrentCurrentCurrentCurrent
Price: $2,810,000 Proposed Loan Amount $1,826,500
Capitalization Rate: 7.51% Loan to Value 65%
Price Per Square Foot: $257.42 Interest Rate 4.75%
Down Payment 35% $983,500 Amortization 25 Year
Loan Amount 65% $1,826,500 Term 10 Year Fixed
Total Leased (SF): 100.00% 10,916 Lender Type Bank
Total Vacant (SF): 0.00% 0 Net Operating Income $211,055
Total Rentable Area (SF): 100.00% 10,916 Debt Service ($124,958)
INCOMEINCOMEINCOMEINCOME Per Square FootPer Square FootPer Square FootPer Square Foot Pre-Tax Cash Flow $86,097
Scheduled Rent $20.66 $225,553 Debt Coverage Ratio 1.69
Expense Recovery $5.90 $64,424 Cash-on-cash Return 8.75%
EFFECTIVE GROSS INCOMEEFFECTIVE GROSS INCOMEEFFECTIVE GROSS INCOMEEFFECTIVE GROSS INCOME $289,977$289,977$289,977$289,977 Principal Pay down (Year 1) $39,042
Vacancy Factor (5%) ($1.33) ($14,499) Total Return $125,139
ADJUSTED GROSS INCOMEADJUSTED GROSS INCOMEADJUSTED GROSS INCOMEADJUSTED GROSS INCOME $275,479$275,479$275,479$275,479 Yield 12.72%
EXPENSE (2016 Budget) EXPENSE (2016 Budget) EXPENSE (2016 Budget) EXPENSE (2016 Budget) Property Tax (current) ($1.80) ($19,600)
Increased Property Tax (1.03%of sale price) ($0.98) ($10,650)
Insurance ($0.15) ($1,650)
Water & Sewer ($0.09) ($955)
Trash Removal ($0.38) ($4,200)
Back Flow Testing ($0.01) ($150)
Fire Life Safety (520,540) ($0.19) ($2,100)
Janitorial (510,520,540) ($0.18) ($1,979)
Common Area Expenses (Orchard Center inlcudes some MGNT) ($2.12) ($23,140)
TOTAL OPERATING EXPENSESTOTAL OPERATING EXPENSESTOTAL OPERATING EXPENSESTOTAL OPERATING EXPENSES ($5.90)($5.90)($5.90)($5.90) ($64,424)($64,424)($64,424)($64,424)
NET OPERATING INCOMENET OPERATING INCOMENET OPERATING INCOMENET OPERATING INCOME $211,055$211,055$211,055$211,055
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
income & expense
orchard Plaza | 7
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
rent roll
COMMENTS
Suite Tenant Sq. Ft. Percent of LotYears
RemainingMonthly Rent
Annual
Rent
Monthly
Rent/FT/YR
Annual
Rent/FT/YR
W1 Straw Hat Pizza 3,007 27.55% 10/16/08 10/31/26 9.5 $5,863.65 $70,363.80 $1.95 $23.40
One Store Franchisee Increase 11/01/21 10/31/26 $6,450.02 $77,400.18 $2.15 $25.74
Option 1 11/01/26 10/31/31 $7,095.02 $85,140.20 $2.36 $28.31
Option 2 11/01/31 10/31/36 $7,804.52 $93,654.22 $2.60 $31.15
W2 Top This Yogurt 1,385 12.69% 05/01/17 08/31/22 5 $2,592.75 $31,113.00 $1.87 $22.46 Net Lease
Sole proprietor Increase 09/01/18 08/31/19 $2,662.00 $31,944.00 $1.92 $23.06
Increase 09/01/19 08/31/20 $2,731.25 $32,775.00 $1.97 $23.66
Increase 09/01/20 08/31/21 $2,800.50 $33,606.00 $2.02 $24.26
Increase 09/01/21 08/31/22 $2,869.75 $34,437.00 $2.07 $24.86
Option 1 09/01/22 08/31/27 $2,955.84 $35,470.11 $1.80 $25.61
W3 Smash Fitness 1,388 12.72% 04/01/17 06/30/20 3 $2,151.40 $25,816.80 $1.55 $18.60
Sole proprietor Increase 07/01/18 06/30/19 $2,220.80 $26,649.60 $1.60 $19.20
Increase 07/01/19 06/30/20 $2,290.20 $27,482.40 $1.65 $19.80
Option 1 07/01/20 06/30/23 $2,358.91 $28,306.87 $1.70 $20.39
W4 Venus Nail Salon 1,155 10.58% 10/01/11 07/31/23 6 $1,790.25 $21,483.00 $1.55 $18.60 Net Lease
Sole proprietor Increase 08/01/18 07/31/19 $1,848.00 $22,176.00 $1.60 $19.20
Increase 08/01/19 07/31/20 $1,905.75 $22,869.00 $1.65 $19.80
Increase 08/01/20 07/31/21 $1,963.50 $23,562.00 $1.70 $20.40
Increase 08/01/21 07/31/22 $2,021.25 $24,255.00 $1.75 $21.00
Increase 08/01/22 07/31/23 $2,079.00 $24,948.00 $1.80 $21.60
Option 1 08/01/23 07/31/28 $2,141.37 $25,696.44 $1.85 $22.25
W5 Veronica's Taqueria 1,170 10.72% 05/01/11 04/30/21 4 $1,843.58 $22,122.96 $1.58 $18.91 Net Lease
Sole proprietor Increase 05/01/18 04/30/19 $1,898.88 $22,786.56 $1.62 $19.48
Increase 05/01/19 04/30/20 $1,955.85 $23,470.20 $1.67 $20.06
Increase 05/01/20 04/30/21 $2,014.53 $24,174.36 $1.72 $20.66
W6 Fit Dental 1,611 14.76% 11/16/10 04/30/21 4 $2,754.49 $33,053.88 $1.71 $20.52 Net Lease
Sole proprietorowned by Dentist Increase 05/01/18 04/30/19 $2,837.12 $34,045.44 $1.76 $21.13
Increase 05/01/19 04/30/20 $2,922.24 $35,066.88 $1.81 $21.77
Increase 05/01/20 04/30/21 $3,009.90 $36,118.80 $1.87 $22.42
W7 Town Cleaners 1,200 10.99% 11/01/16 04/30/19 2 $1,800.00 $21,600.00 $1.50 $18.00 Net Lease
Two Store operator Increase 11/01/17 10/31/18 $1,860.00 $22,320.00 $1.55 $18.60
Drop - off only - no plant onsite Increase 11/01/18 04/30/19 $1,920.00 $23,040.00 $1.60 $19.20
Current Totals: 10,916 100.00%
Occupied 10,916 100.00% $18,796.12
Vacant 0 0.00% $225,553.44
Net Lease
2016 Total Annual Gross Rent:
LEASE TERMS
Term
Net Lease
TENANT INFO
2016 Total Monthly Gross Rent:
RENTal Rates
Option has annual 3% increases
Option has annual 3% increases
No Options
No Options
No Options
Option has annual 3% increases. Tenant Amortizes is amortizing an additional $23,075k
in tenant improvements during the primary term (an additonal $0.32/sf over the base
rent of $1.55/sf
orchard Plaza | 8
site plan
Bogue Road
Gard
en H
ighw
ay
MonuMent SiGn
17,410 dAilY
BUILDABLE PAD
Site PlAn KeYPARCEL LinES:
SuBjECT PRoPERTY:
BuiLDinG AREA: 10,835 SF
inGRESS/EGRESS:
11,4
50 d
Ail
Y
MAS
teR
leAS
e (2
YeA
RS)
GAS CAnoPY
PoWeR MARKet
CHeVRon/PoWeR MARKet
Shan
ghai
Res
taur
ant
HigH-Volume StarbuckS extended tHeir leaSe in
2016 for 10 yearS.
center iS ancHored by a 10,000 Sf Small-format grocery Store
Ven
uS n
AilS
toW
n C
leAn
eRS
toP
tHiS
YoG
uRt
almost all tenants in the center have renewed their original leases
PeRS
onAl
tR
A in
inG
ReSidentiAl ReSidentiAl
ReSi
den
tiAl
This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. orchard Plaza | 9
subject photos
subject property is a part of a larger center anchored by a small-format grocery
store with a drive-thru starbucks.
orchard Plaza | 10
tenants
Venus nail Salon is a local nail salon establishment offering skin and nail care services such as manicures, pedicures, acrylic overlays, uV gel overlays, nail art, and waxing . Venus nail Salon’s high-end services and accommodations make it an ideal spot for local relaxation and pampering .
Venus Nail Salon
Fit Dental Fit Dental is an experienced dental service provider of general, restorative, and cosmetic dentistry for children and adults . Fit Dental uses state-of-the-art technology, including digital X-rays, to give their patients efficient, convenient care . Their patients enjoy high-end treatment rooms that include HD TVs . Fit Dental is the private office of Ajaipal Singh Sekhon D .D .S . Dr . Sekhon has been working in Yuba City since october of 2008, and opened Fit Dental in May 2011 .
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
opening its doors for the first time in San Leandro, Straw Hat Pizza began serving its trailblazing “Genuine California Pizza” on july 10, 1959 . By the mid-Eighties, Straw Hat Pizza was regarded as the dominant pizza restaurant in the Western united States . Pizza Hut made a move to eliminate its competition by purchasing all company-owned Straw Hat Pizza restaurants in 1987 . Although the company-owned Straw Hat restaurants were converted to Pizza Hut locations, Straw Hat’s franchise owners refused to participate in the acquisition . They stuck together and won the right to carry forward the Straw Hat brand . Although a smaller chain than before, it was a first of its kind in the restaurant industry . Today, there are 30+ locations across California and nevada .
Straw hat Pizza Local Operator Veronica’s Taqueria
Veronica’s Taqueria is a local Mexican restaurant serving everything from burritos to bowls, tacos, quesadillas, and salads . They use fresh ingredients in all of their food and top shelf meats, poultry, and fish . When possible, they try to use organics vegetables . All of their suppliers are local to ensure the freshest and healthiest food .
Town Cleaners offers dry cleaning and laundry services to the local Yuba City area . They also offer alteration services . This is their second location, both located in Yuba City .
Town Cleaners
Local frozen yogurt shop with many flavors and toppings to choose from . This is their only location .
Top This Yogurt
Personal training gym offering one-on-one fitness classes . This is their only location .
Smash Fitness
regional map
traffic counts in excess of 17,000 vpd on bogue rd.
SuBjeCt PRoPeRtY loCAtionReGionAl MAP
YUBA CITY
2 hR 6 MIN136 MILES
SACRAMENTO
SANTA ROSA
wALNUT CREEk
SAN FRANCISCO
1 hR 38 MIN109 MILES
48 MIN42 MILES
SUBJECT PROPERTY
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
orchard Plaza | 12
1 MILE
3 MILES
5 MILES
1-Mile 3-Miles 5-Miles2010 11,104 52,088 116,5572016 11,154 52,735 119,7782021 11,234 53,314 122,639
PoPuLATIon
1-Mile 3-Miles 5-MilesAverAge $79,918 $64,028 $63,051MediAn $68,854 $49,448 $46,735
2016 HouSEHoLd InCoMES
Town & Country Shopping Center
demographics 119,000+ residents within 5 miles with an average household income of $63,000+
[ sutter buttes ]
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
orchard Plaza | 13
AbouT yubA CITy, CAYuba City is the seat of Sutter County in northern California and is the principal city of the Yuba City Metropolitan Statistical Area, which has a total population of 164,138 (the 21st largest metropolitan area in CA) .
The top industries in the city include retail, healthcare, and agriculture . Sunsweet Growers incorporated, the largest dried fruit processing plant in the world, is located here and is one of the city’s top employers .
yubA CITy, CAPoPuLATIon
164,138
location
company ± employeeS
Fremont-Rideout Health Group* 1,850Yuba City unified School District 1,316Sutter County 970Sunsweet Growers 670
ToP EMPLoyErS In yubA CITy, CA
AbouT SACrAMEnTo, CASacramento is the capital of California, the sixth-largest city in the state, and the 35th largest city in the country . The urban Sacramento area has a population of 1 .44 million while the Sacramento metropolitan area -- which includes seven counties -- has an estimated population of 2 .66 million . Government and transportation are key sectors of the economy . Technology companies, such as intel and Hewlett-Packard, have also increasingly been drawn to Sacramento based on its proximity to research centers and its well-educated labor pool . other economic drivers include health services, hospitality, education, and construction .
SACrAMEnTo, CAPoPuLATIon
488,000
[ sacramento, ca ]
*AlSo A tenAnt in tHe CenteR
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the informa-tion and bears all risk for any inaccuracies.
orchard Plaza | 14
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