729 SIR FRANCIS DRAKE BLVD SAN ANSELMO, CA 94960 · San Anselmo is recognized as one of the best...

729 SIR FRANCIS DRAKE BLVDSAN ANSELMO, CA 94960

OFFERING MEMORANDUM

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information 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 due diligence 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, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

non-endorsement notice

marcus and millichap real estate investment services, inc. (“m&m”) 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 or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of m&m, its affiliates of subsidiaries, or any agent, product, service, or commercial listing or m&m, and its solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

all property showings are by appointment only. please contact agent for more details.

CONFIDENTIALITY AND DISCLAIMER

exclusively listedOFFICES NATIONWIDEwww.marcusmillichap.com

Investment Sales:Exclusively listed by:

exclusively l i stedErich ReichenbachFirst Vice President InvestmentsDirector, National Multi Housing GroupTel: (415) 625-2146Fax: (415) [email protected]

License CA: 01860626

55 Roque Moraes CourtMill Valley, CA 94941

Table of Contents

PROPERTY DESCRIPTIONInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Property Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Aerial Photo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Local & Regional Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

FINANCIAL ANALYSISAnnualized Operating Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Tenant Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

RECENT SALESRecent Sales Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Recent Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17-19

MARKET OVERVIEWMarin Economic Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Market Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23-24

summaryP R O P E R T Y D E S C R I P T I O N

EXECUTIVE SUMMARY 77 BULKLEY AVENUESAUSALITO, CA 94965

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Z0020477

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PROPERTY DESCRIPTION

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W729 Sir Francis Drake Blvd

San Anselmo, CA 94960

Marcus & Millichap has been selected to exclusively market for sale 729 Sir Francis Drake

Blvd, San Anselmo, CA. This is a rare opportunity for an investor to own an excellent,

well-located office building in one of Marin County’s most attractive markets. This

investment offers a rarely available small commercial property in a vibrant centrally-located

neighborhood, with owner-user opportunities and significant upside potential.

729 Sir Francis Drake Blvd Avenue is centrally located in downtown San Anselmo.

This office building offers on-site parking and flexibility in floor plan layout. The property is

located within walking distance to many restaurants, coffee shops, post office and other

local services within the quaint downtown. The building is currently leased to San Anselmo

Animal Hospital, with the lease term running to October 2020. Current rents are below

market, providing rental upside at the end of the term or potential excellent owner-user

opportunities. The property is zoned C-L and permits medical use in addition to various

other uses from office to retail, buyer to verify with Town of San Anselmo. The zoning also

allows for development opportunities to build additional stories, buyer also to verify with

the Town of San Anselmo.

The subject property is located on a 4,704-square foot lot, with five off-street parking

spaces. The building enjoys prominent signage on this very busy street. 729 Sir Francis

Drake enjoys a traffic count of 42,421 daily.

Located in Marin County near the city of San Rafael and 20 miles north of San Francisco,

San Anselmo is a town that is well known for its charming downtown, tight-knit community

and its status as the Northern California Antiques Capital. Home to only 12,000 residents

and three major roads, this 2.7-square-mile town is small, but it is still considered one of

the best places to live in the area. San Anselmo is recognized as one of the best towns

in Marin County with an enviable lifestyle, a charming downtown, annual events, close

proximity to local attractions in San Francisco and the rest of the Bay Area.

Commercial investment opportunities of this size, location, and quality are rarely offered in

San Anselmo. As such, this property offers investors a compelling investment opportunity

in the most desirable neighborhood in Marin County.

�� Small, well-located office building in one of Marin’s most attractive markets

�� Building offers on-site parking and flexibility in floor plan layout

�� Currently 100% lease to established tenant, with two years remaining on lease

�� Property is zoned C-L and permits various uses from medical, office and retail

�� Excellent future potential owner-user opportunities

�� Compelling price point, attractive valuation, excellent financing options

Investment Overview

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8This 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent Z0020477

729 Sir Francis Drake BlvdSan Anselmo, CA 94960

The Offering Property Address 729 Sir Francis Drake Blvd

San Anselmo, CA 94960

Site Description Year Built/Renovated 1908

Rentable Square Feet 1,350

Ownership Fee Simple

Lot Size 0.1 Acre(s)

Property Details

Financial HighlightsOffering Price $575,000

Price/SF $425.93

Net Rentable Area 1,350 SF

Current CAP Rate 4.98%

Current NOI $28,610

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9This 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Z0020477


Subject Property 729 Sir Francis Drake Blvd

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10This 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Z0020477


Local MapRegional Map

729 Sir Francis Drake Blvd

729 Sir Francis Drake Blvd

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analysisF I N A N C I A L A N A LY S I S

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FINANCIAL ANALYSIS



Expenses

Current Pro Forma

CAM $1,575 $1,654

Insurance $1,200 $1,260

Real Estate Taxes $7,015 $7,015

Total Expenses $9,790 $9,929

Expenses/Suite $4,895 $4,964

Expenses/SF $7.25 $7.35

Summary

Price $575,000

Down Payment $575,000

Number of Suites 2

Price/Square Feet $425.93

Lot Size (SqFt) 0.1 Acres

Rentable Square Feet 1,350 SF

Approx. Year Built 1908

CAP Rate-Current 4.98%

CAP Rate-Pro Forma 5.16%

Annualized Operating Data

Income Current Pro Forma

Scheduled Base Rental Income $38,400 $39,600

Potential Gross Revenue $38,400 $39,600

Less: Operating Expenses 25.5% / $9,790 25.1% / $9,929

Net Operating Income $28,610 $29,671

Cash Flow $28,610 $29,671

Net Cash Flow After Debt Service 4.98% / $28,610 5.16% / $29,671

Total Return 4.98% / $28,610 5.16% / $29,671

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FINANCIAL ANALYSIS



Tenant SummaryTenant Name Suite Square

Feet% Bldg

ShareLease Date

CommencedLease Date

ExpiredAnnual

Rent per Sq. Ft

Total Rent Per Month

Total Rent Per Year

Pro Forma Rent Per

Year

Changes On

Rent Increase

Lease Type

Tenant 1 1 1,350 100.0% 10/1/15 10/1/20 $28.44 $3,200 $38,400 $39,600 Dec-2019 $3,300 Modified Gross

Vacant 0 0 $0.00 0 0 0 0 N/A N/A

Total 1,350 $28.44 $3,200 $38,400 $39,00

salesR E C E N T S A L E S

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RECENT SALES



Sales Comparables Map

• 729 Sir Francis Drake Blvd

1. 1118 Irwin St

2. 937 Sir Francis Drake Blvd

3. 870 College Ave




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1

4

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RECENT SALES



SALES COMPARABLES

ON MARKET COMPARABLES

SALES COMPS AVG

ON MARKET COMPS AVG

Avg. 0.00%

Avg. 3 .94%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

729 SirFrancis

Drake Blvd

1118Irwin S t

937 SirFrancisDrake

870 CollegeAve

6700 SirFrancis

Drake Blvd

312 SirFrancis

Drake Blvd

1620 SirFrancis

Drake Blvd

Average Cap Rate

Avg. $547.47Avg. $512.17

$0.00

$70.00

$140.00

$210.00

$280.00

$350.00

$420.00

$490.00

$560.00

$630.00

$700.00

729 SirFrancis

Drake Blvd

1118Irwin S t

937 SirFrancisDrake

870 CollegeAve

6700 SirFrancis

Drake Blvd

312 SirFrancis

Drake Blvd

1620 SirFrancis

Drake Blvd

Average Price Per Square Foot

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SALES COMPARABLES




Subject Property

Asking Price $575,000

Price/SF $425.93

CAP Rate 4.98%

Year Built 1908

Occupancy 100%

Parking Ratio 4:1

1

Close of Escrow: 1/26/2018

937 Sir Francis Drake BlvdKentfield, CA 94904

2

1118 Irvin StSan Rafael, CA 94901


Close of Escrow 7/25/2017

Days on Market 282

Sales Price $790,000

Rentable SF 1,443

Price/SF $547.47

Year Built 1922

On Market

List Price $1,500,000

Price/SF $433.28

Year Built 1943

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SALES COMPARABLES



870 College AveKentfield, CA 94904

Subject Property

On Market


Rentable SF 1,904

Price/SF $623.95

Year Built 1935

Parking Ratio 1.33



5

6700 Sir Francis Drake BlvdForest Knolls, CA 94933


On Market

Days on Market 172


Rentable SF 3,472

Price/SF $388.82

CAP Rate 3.94%

Year Built 1942

On Market

Days on Market 38


Rentable SF 2,993

Price/SF $501.17

Year Built 1942

3

4

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SALES COMPARABLES



1620 Sir Francis Drake BlvdFairfax, CA 94930

Subject Property

On Market

Days on Market 120

List Price $945,000

Rentable SF 1,540

Price/SF $613.64

Year Built 1963

6

overviewM A R K E T O V E R V I E W

MARKET OVERVIEW

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EMPLOYER Number of Employees

Kaiser Permanente 1,972

BioMarin Pharmaceuticals 1,770

Marin General Hospital 1,204

Fireman’s Fund Insurance Company 1,220

Autodesk 900

Dominican University 405

Safeway Inc. 925

Comcast 682

Macy’s 418

Bradley Real Estate 440

Occupation Projected Year Estimated Projected Number Percent

Biomedical Engineers 2012-2022 540 910 370 68.5%

Economists 2012-2022 760 1,190 430 56.6%

Statisticians 2012-2022 450 680 210 46.7%

Personal Care Aids 2012-2022 26,760 39,260 12,500 46.7%

Logisticians 2012-2022 1,250 1,780 530 42.4%

Market Research and Marketing Specialists* 2012-2022 10,250 14,480 4,230 41.3%

Interpreters and Translators 2012-2022 860 1,210 350 40.7%

Pipelayers 2012-2022 120 170 50 41.7%

Physician Assistants 2012-2022 330 460 130 39.4%

Diagnostic Medical Sonographers 2012-2022 250 350 100 40.0%

TOP EMPLOYERS

NAICS Industry Percent of Employees

Marin County 21.19%

Retail Trade 14.78%

Health Care 13.27%

Accommodation and Food Service 10.27%

Professional, Scientific Technical 9.72%

Finance 8.59%

Administrative Support 8.04%

Construction 7.73%

Other Service 4.84%

Real Estate 4.02%

LEADING INDUSTRIES

OCCUPATIONS WITH FASTEST JOB GROWTH (Percent of Change)

Estimated Year Employment Employment Change

MARKET OVERVIEW

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Marin County Profile

Located in the North Bay across the Golden Gate Bridge from San Francisco, Marin County is a dynamic community of 250,000 well-educated and involved residents. From its tidelands to the top of Mt. Tamalpais, Marin enjoys a high quality of life marked by beautiful beaches, groves of redwoods and oaks, rolling foothills, and scenic valleys. The mild, year-round Mediterranean climate is highlighted by cool, coastal fog tempering the warm inland temperatures of summer. Incorporated communities include Belvedere, Corte Madera, Fairfax, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael (the County seat), Sausalito, and Tiburon.

Marin County is known for its combination of rural and suburban lifestyles. It is a recreation destination for the entire Bay Area - the Golden Gate National Recreation Area and Point Reyes National Seashore are just two destinations out of more than 140,000 acres of public lands within Marin. The County’s active economy includes insurance related (e.g., Fireman’s Fund), finance, movie and video production (e.g., Lucas Films), agriculture, bio-technology (e.g., BioMarin), computer software (e.g., Autodesk), communications equipment, printing, and tourism. Marin County children excel in school with test scores well above the average. The 19 school districts in Marin range in attendance from 20 to 8,000, the Marin Community College has two campuses (Kentfield and Novato) and

Economic Profile

Marin County had yet another strong economic year and is forecasted to continue to grow. As of August 2017, Marin County has a residential unemployment rate of 3.1 percent seasonally adjusted, among the lowest county rates in California. Marin County’s personal income level per capita remains the highest in California by almost $20,000 per person at approximately $96,000 per person. Marin County’s median household income level is topped only by San Francisco and San Mateo counties; Marin's households generate approximately $86,000 at the median as of 2015.

Employment growth continues in Marin County. As of August 2017, Marin County employers added more than 3,300 jobs since August of 2016. Marin County is estimated to have inflation-adjusted (real) gross county product (GCP) growth of approximately 0.8 percent since 2016, a sign that businesses are generating income but the cost of living is also increasing.

MARKET OVERVIEW

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Real Estate and Financial Markets

Marin County housing prices continue to increase in the face of regional demand and low inventories. According to the California Association of REALTORS®, Marin County’s median home price for a single-family home was approximately $1.087 million in August 2017, up over 11 percent from 2016. With continued low interest rates, the threat of interest rates rising soon, and a continued lack of inventory across the Bay Area, Marin County is a microcosm of what remains a tight housing market with excess demand.

The short-term future of residential real estate prices depends on how interest rates adjust to any central banking decisions and global growth, but also to local supply conditions. Rental markets are in similar conditions to homes for purchase. A lack of inventory in rental housing also continues to support relatively high prices regionally. The longer-term depends on jobs and population growth and demographic shifts in demand for the housing stock available.

The placement of both new commercial and residential units in Marin County has continued to be a controversial subject for elected officials and local residents and employers. Issues of drought, traffic and other socioeconomic and environmental issues are part of all these local decisions.

Summary

The Marin County economy is expanding and at full employment, washing most of the Great Recession’s effects away. Local costs of living are outpacing the state and national inflation rates, housing and rental prices have increased due to both rising incomes and home prices, employment growth and new businesses are positive outcomes of this growing economy. Traffic, housing density and resource constraints are now more challenging.

Employment growth continues, mainly in service-oriented industries. More than 300 new payroll businesses started in Marin County in net. Personal income growth in Marin County is likely to be slower in real terms (inflation- adjusted) than in California overall, because growth is slowly moving toward lower-income areas of the state and inflation is rising more quickly in Marin County and the Bay Area. Marin County continues to have the highest, personal income per capita in the state of California.

In Marin County, commercial real estate vacancies continue to be filled, but not at the pace of San Francisco. San Francisco County is currently in a commercial real estate boom. In Marin County, office vacancies remain slightly above 9 percent, but demand is rising for larger spaces and tenants. Rents in Marin County have been slow to react; 2016 is a year when commercial rents began to rise more quickly since 2010.

2018 will be yet another year of slow economic growth. Like the California economy, Marin County’s income and employment and housing markets are all forecasted to grow, with the costs of rising goods and housing prices, higher traffic levels (hopefully alleviated by the SMART rail system starting in 2017), and continued concerns over social and environmental issues.

OFFICES NATIONWIDEwww.marcusmillichap.com

Investment Sales:Exclusively listed by:Erich ReichenbachFirst Vice President InvestmentsDirector, National Multi Housing GroupTel: (415) 625-2146Fax: (415) [email protected]

License CA: 01860626

exclusively l i sted

729 SIR FRANCIS DRAKE BLVD SAN ANSELMO, CA 94960 · San Anselmo is recognized as one of the best...

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Transcript of 729 SIR FRANCIS DRAKE BLVD SAN ANSELMO, CA 94960 · San Anselmo is recognized as one of the best...