old sacramento investment property€¦ · 129 k street in sacramento, california. the property is...

KIDDER.COM

OLD SACRAMENTO INVESTMENT PROPERTY

OFFERING MEMORANDUM | 121-129 K STREET | SACRAMENTO, CA 95814

This 100% occupied multi-tenant retail leased investment property is located at 121-129 K Street in Sacramento, California. The property is in the heart of this historic preservation area of Old Sacramento at the northeast corner of the firehouse alley midway between Front and Second Streets.

This Gold Rush Era brick building has ±9,621 rentable square feet with 5 tenants and 75% of the space has been occupied by the same tenants for more than 10 years. The largest tenant has been there for almost 30 years. The property is split level with four tenants at the boardwalk/sidewalk level and 1 tenant who leases the entire subterranean/ basement level. The property has a stepped parapet above the covered wooden sidewalk. There is unique detailing and craftsmanship to the building with good access and visibility for its tenants.

The property is currently 100% leased with an actual/scheduled rental income and pass-through revenue in excess of $223,000 per year. The current owner has held the property since May of 2012 and is selling this asset as their children will be attending college next year. The property is being offered at an 10.9% cap rate which reflects the Coronavirus uncertainty and the need for scheduled capital improvements. The property has had a stable and predictable stream of income and is priced for a quick sale. This is the perfect property for an income investor or for a 1031 exchange buyer.

PROPERTY DESCRIPTION

In-place multi-tenant income

Reasons to buy 121-129 K Street:

Heart of Old Sacramento with 4.3 million visitors/year

Longstanding tenants

A great cap rate

121-129 K STREET OFFERING MEMORANDUM KIDDER MATHEWS 2

3121-129 K STREET OFFERING MEMORANDUM KIDDER MATHEWS

PROPERTY OVERVIEW SUMMARY

Offering Price $1,400,000

2019 Net Operating Income $152,880

Cap Rate on 2019 NOI 10.9%

Price / Building Square Foot $146/SF

Number of Suites 5

Current VacancyNo Vacancy – Operations suspended for Coronavirus closure

Scheduled Monthly Income NNN $15,512

Addresses 121-129 K Street, Sacramento, CA

MunicipalityCity of Sacramento- Old Sacramento Neighborhood/Sub-Market

County Sacramento

Zoning C3- As shown on Zoning Map Page K6

APN 006-0071-038

Parcel Size ±5,727 Square Feet*

Building Size ±9,621*

Year Built

Portions of subterranean and basement level date back to ±1870-1890. The street level masonry and structures were extensively constructed and redeveloped in ±1977.

Stories Two

PROPERTY DESCRIPTION

*= Best Estimates need to be verified by Buyer


LOCATION AERIAL

OLD SACRAMENTO

RAIL YARDS

DELTA KING

SUTTER HEALTH PARK

STATE CAPITOL

ZIGGURAT

TOWER BRIDGE GOLDEN ONE ARENA

WELLS FARGO BUILDING

121-129 K STREET

N


121-129 K STREET

OLD SACRAMENTO

DELTA KING

CALSTRS BUILDING

RAILROAD MUSEUM

HOLIDAY INN

EMBASSY SUITES

OLD SACRAMENTO PARKING GARAGE

ZIGGURAT

TOWER BRIDGE

K STREET WALKWAY

RAIL YARDS

LOCATION AERIAL


OLD SACRAMENTO: Old Sacramento is a unique 28-acre National Historic Landmark District and State Historic Park located along the beautiful Sacramento River. Bustling with activity, the district is alive with shopping, dining, entertainment, historical attractions and world-renowned museums set within the time of the California Gold Rush and the Transcontinental Railroad.

In the mid-1960’s, a plan was set forth to redevelop the area and through it, the first historic district in the West was created. Today, with 53 historic buildings, Old Sacramento has more buildings of historic value condensed into its 28 acres than most areas of similar size in the west. Registered as a National and California Historic Landmark, the properties in the district are primarily owned by private owners, with individual businesses leasing shops and offices. The area has flourished and is once again a thriving commercial trade center. The area’s history is a rich backdrop for exploring all that Old Sacramento has to offer, from dining and shopping to entertainment and culture.

Historic Old Sacramento dates back to 1848 when the discovery of gold attracted prospectors and entrepreneurs in search of adventure and riches on the riverfront. Old Sacramento was the last stop on the Pony Express route, the terminus of the transcontinental railroad and housed the original California Supreme Court Chambers.

Old Sacramento is one of the region’s main tourist destinations including the California State Railroad Museum, the Delta King (an Historic Paddle Wheel Vessel), former Pony Express Stop, Sacramento History Museum and Underground Tour. Old Sacramento isn't a place lost in time. It's a thriving business and residential district full of shops, restaurants and nightlife in an historic setting. Tour a museum, have dinner and then catch a comedy show, get your fortune read, or browse unique locally owned shops selling everything from pizza, socks, jewelry, to art galleries featuring many local artists.

This Historic District fronts the Sacramento River. It is the terminus of the American River Bike Trail – a 32-mile trail for cyclists, runners and walkers that courses up to Folsom. Sports and entertainment venues are within walking distance 0.3 miles walking to Golden One Arena, home of the NBA’s Sacramento Kings, Sutter Health Park, home of the AAA Farm Team of the San Francisco Giants is 0.7 miles walk over the Tower Bridge, and the MLS Soccer Stadium is being planned nearby in the Railyards. Downtown Sacramento Partnership reports that there are 4.3 million visitors annually to this historic and dynamic district.

The current zoning is shown on the Zoning Map at page K6 as C-3 Zone. The purpose of the C-3 zone, also known and referred to as the central business district (CBD, is to provide for the most intense residential, retail, commercial,

and office developments in the city. The maximum density is 450 dwelling units per net acre. There is no lot coverage requirement.

Coming from any direction in the state, take Interstate 5 to the J Street exit and follow the signs into the district. In addition, you can cross the Tower Bridge heading east towards the State Capitol and immediately to the north is a Public Parking Structure serving Old Sacramento. The Sacramento Amtrak Station is located at 401 I Street, adjacent to Old Sacramento and a close walk. The Old Sacramento Boat Docks are available for daily and overnight use. Abundant covered parking is available in two parking structures located at either end of Old Sacramento. In addition, a surface parking lot is located at Front & L streets (enter from L Street at Firehouse Alley). There are also a limited number of metered, 90-minute on-street parking spaces throughout Old Sacramento. A wealth of information including current events and activities can be found at https://www.oldsacramento.com/


SITE PLAN

FIRST FLOOR

Round Table Pizza±4,810 SF

Mea

Vita

Jew

elry

±1,

203

SF

Sock

City

±1,

203

SF

The

Fort

une

Telle

r±

1,20

3 SF

Art

ists

' Co

llab

ora

tive

Gal

lery

±1,

203

SF

18.5'

121K

18.5'

123K

18.5'

125K

18.5'

129K 127K

65' 65'

74'

BASEMENT

ARTISTS' COLLABORATIVE GALLERYThe Artists Collaborative Gallery has been in existence for over 40 years and features the work of over 30 highly talented award-winning artists from a wide variety of creative backgrounds. Their artists are local, their work is of the highest quality and most art is one of a kind. Their artists media include oil, acrylic, and watercolor paintings are accompanied by photography, glass, ceramics, textiles, gourd, basketry, jewelry and sculpture. Because it is a collaborative, they work together to give clients beautiful art at the best prices. More at http://www.artcollab.com/

SOCK CITYis all about socks, in as many lengths, patterns, and sizes that you can imagine. It’s a family owned business staffed by experienced and passionate people who love socks. They have expanded to 3 stores in California (Sacramento, Lake Tahoe, CA, and Park City, UT) and have a flourishing online presence. They offer novelty socks that perfectly capture one’s aesthetic. More at https://funsockcity.com/

TENANT PROFILESTENANT PROFILES

ROUND TABLEFounded in Menlo Park, CA in 1959, Round Table Pizza has been a west coast institution for 60 years. Round Table has grown to be a leader in the premium pizza market and focuses on serving the needs of families. The company, known for making “The Last Honest Pizza,” has approximately 450 locations open and under development, including 70 corporate-owned restaurants across the Western U.S, Alaska, and Hawaii, including 10 locations overseas. This particular location is a longstanding Round Table location now operated by a franchisee, an experienced restauranteur. The franchisor is Global Franchise Group, the strategic brand management company and franchisor of Great American Cookies, Hot Dog on a Stick, Pretzelmaker, and Marble Slab Creamery/MaggieMoo’s Ice Cream & Treatery acquired the Round Table Pizza brand and all of its affiliated concepts back in 2017. More at https://www.roundtablepizza.com/

MEA VITA JEWELRYMea Vita is a local handcrafted jewelry and clothing boutique with a diverse and interesting collection. Its reputation for stylish and unique clothing, quality materials, custom jewelry pieces, fair prices and great service has led to a strong following of loyal clients. Owner Aida Makarevic is a talented and creative jewelry designer and has an eye for great fashion. Come on in and you won’t be disappointed! More at https://www.yelp.com/biz/mea-vita-sacramento

FORTUNE TELLEROld Sacramento Psychics are intuitive readers, spiritual advisors and consultants that provide fortune telling services including Tarot or Palm readings. Many of their clients are word of mouth. They’ve proudly served Sacramento and the surrounding regions for over 30 years. Stop by to learn more about your future.

121-129 K STREET OFFERING MEMORANDUM KIDDER MATHEWS 8


RENT ROLL SUMMARY

SUMMARY

Address Tenant SF

121 K Street Mea Vita Jewelry ±1,203

123 K Street Sock City ±1,203

125 K Street The Fortune Telller ±1,202

127 K Street Round Table Pizza ±4,810

129 K Street Artists' Collaborative Gallery ±1,203

Totals 5 Suites ±9,621

Scheduled Rents Per Month $15,512

Scheduled Pass-Throughs Per Month $3,091


PROPERTY PHOTOS

Sock City

Side of Building Patio Area Old Sacramento Looking South East

Round Table Pizza Interior

Old Sacramento Looking North East Mea Vita

Old Sacramento Looking North

Artists' Collaborative Gallery

Round Table Pizza


DEMOGRAPHICSAVERAGE

HOUSEHOLD INCOME

$81,761

ESTIMATED POPULATION

134,305

ANNUAL POPULATION

GROWTH

1.06%WITHIN 3 MILES OF THE SUBJECT PROPERTY

130 G STREET | DAVIS, CA

1 Mile 3 Miles 5 Miles

Population

Estimated Population (2019) 15,861 134,305 306,418

Projected Population (2024) 17,125 141,548 321,515

Census Population (2010) 13,197 122,584 280,384

Projected Annual Growth (2019 to 2024) 1,264 7,243 15,097

Historical Annual Growth (2010 to 2019) 2,664 11,721 26,034

Households

Estimated Households (2019) 7,215 59,187 122,182

Projected Households (2024) 7,838 62,382 127,858

Projected Annual Growth (2019 to 2024) 1.67% 1.06% 0.91%

Historical Annual Change (2010 to 2019) 2.5% 1.0% 0.75%

Estimated Average Household Income (2019) $64,446 $81,761 $80,737

Daytime Demographics

Total Businesses 3,529 12,075 22,361

Total Employees 75,925 163,963 271,082

5 MILES

3 MILES

1 MILE

SUBJECT PROPERTY


CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT

In consideration of the opportunity to review certain confidential documents and proprietary information of (“Seller”) which are disclosed to the undersigned principal (“Principal”) (and its procuring agent (“Agent”), if any) solely for the purpose of evaluating the suitability of an acquisition of 121-129 K Street offered by Seller, the undersigned agree as follows:

All documents and information, whether written or oral, disclosed to Principal and Agent shall be deemed confidential and proprietary. Principal and Agent shall not disclose any confidential documents or proprietary information of Seller to anyone except the respective principals of Principal and Agent and their respective employees, agents, consultants, attorneys and accountants who have executed this agreement. Seller retains sole and exclusive ownership of the documents and information disclosed to Principal and Agent.

Principal and Agent shall return to Kidder Mathews (KM) within ten (10) days after written request all documents and information disclosed under this offering which have not been destroyed (including all copies made by or at the direction of Principal or Agent) and shall certify in writing that all documents and information in the hands of Principal and Agent and their respective agents, employees, consultants, accountants and attorneys have been returned to KM or destroyed.

Principal and Agent agree that Seller’s remedy at law for any breach of any of the covenants and agreements set forth in this Agreement may be inadequate and that, in the event of any such breach or threatened breach, Seller shall, in addition to all other remedies which may be available to it at law, be entitled to equitable relief in the form of preliminary and permanent injunctions without the necessity of proving damages. Principal and Agent

further agree that the terms of this Agreement shall in no way restrict or limit any other remedies Seller may have against Principal or Agent. Seller shall be entitled to recover the costs including reasonable attorney’s fees, should Principal or Agent breach the terms this Agreement. This Agreement shall be interpreted, construed, and enforced in accordance with the laws of the State of California.

The obligations of this agreement shall continue for a period of three (3) years from the date of last disclosure to Principal or Agent and shall survive the acquisition of the Property by Principal and the destruction or return of documents to KM in accordance with this agreement.

No contract or agreement providing for any transaction between Seller and Principal shall be deemed to exist unless and until a final definitive agreement has been executed and delivered. Principal and Agent hereby waive in advance any claims, including without limitation breach of contract, in connection with any transaction between Seller and Principal unless and until they have executed a final definitive agreement. Unless and until a final definitive agreement regarding a transaction between Seller and Principal has been executed and delivered, Seller will be under no legal obligation of any kind whatsoever to Principal or Agent with respect to such a transaction by virtue of this Agreement except for the matters specifically agreed to herein.

Principal and Agent further acknowledge and agree that: (i) Seller shall have no obligation to authorize or pursue any transaction with Principal; and (ii) Seller reserves the right, in its sole and absolute discretion, to reject all proposals and to terminate discussions and negotiations with Principal at any time.

JIM GRAY

[email protected] N° 00524597

NAHZ ANVARY



Principal

By:

Print:

Company:

Address:

Phone:

Fax:

Email:

Date:

Upon execution, please return/fax this form to: [email protected] and [email protected]

Agent

By:

Print:

Company:

Address:

Phone:

Fax:

Email:

Date:

JIM GRAY


NAHZ ANVARY


By signing and returning this agreement, Agent and Principal agree to keep all documents and information disclosed to them in confidence, and to use such information solely for the purpose of evaluating a potential investment in the Property.

Principal acknowledges either: (1) that Principal is to be represented by the undersigned Agent and that it is not represented by any other real estate agent with regard to its interest in the Property, or (2) if an Agent is

not designated below, the Principal acknowledges that it is not represented by a real estate agent with regard to its interest in acquiring the Property. Agent will earn a commission by separate agreement to be paid by Seller out of the proceeds of the sale as set forth by separate agreement by and between Seller and KM.

Agent and Principal have read the foregoing, agreed to its content in its entirety.

CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT

KIDDER.COM

EXCLUSIVELY REPRESENTED BY

JIM GRAY, CCIM, LEED AP


NAHZ ANVARY, CCIM


old sacramento investment property€¦ · 129 k street in sacramento, california. the property is...

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