self-storage opportunity · site confidential offering memorandum se-stoae oppotnt 641 n. capitol...

SITESITE

Confidential Offering Memorandum

colliers.com/renoSELF-STORAGE OPPORTUNITY 641 N. Capitol Ave // San Jose // California

Colliers International5520 Kietzke Lane, Suite 300

Reno, NV 89511P: +1 775 823 9666

Self-Storage Opportunity

The Orchard Self-Storage

641 N. Capitol Ave, San Jose, California 95133

©2020 Colliers International. Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification.

Tom de JongSenior Vice President+1 408 282 [email protected] License #0188901

For property related questions please contact Tom de Jong:

641 N. Capitol Ave


CONTENTS Investment Overview

Site DescriptionAnnualized Property Operating Data

Materials OptionFloor Plans

Property PhotosSurrounding Area Map

Competitive MatrixArea Residential Construction

Unit Mix


INVESTMENT OVERVIEW

THE ORCHARD SELF STORAGE is an opportunity to build a fully entitled self-storage project within a Signature Project in an underserved area within the San Jose, California MSA. With only 4.57 square feet of supply per capita within the 3 mile radius and very limited supply on the eastern side of the 680 freeway (only 2 established competitors), this is an excellent opportunity to build a new, class A, multi-story, climate controlled facility within San Jose, “The Capital of Silicon Valley”.

The Planned Development (PD) approval allows for a minimum of 70,000 SF gross building size. The site is 0.76 acres and has an 80’ height limit, so increasing to five floors can easily be accomplished by simply adjusting the PD, which would be consistent with the PD zoning.

Based on the proposed 4-story design with just over 50,000 NRSF year 4 stabilized NOI is estimated at $710,502, offering an implied value of $14,200,000 (5.0% CAP rate).

General The Orchard Self Storage

Status Rough Graded with Approved FEMA CLOMR-F

County Santa Clara County, California

Planning District San Jose, CA

Tax Lot 254-90-001

Parcel size .76 acre lot

Population (2017 est., 3-Mile) 259,015

Population Growth (2017-2022) 6.30%

% Household RENTERS 44.40%

Est. SF/Capita 4.57 NRSF

Traffic Count Hwy 680 50,000++

Gross Building Area Minimum 70,000 GSF

Net Rentable Area ±51,000

Projected Closing Date Fall 2020

Average Units Size < 100 SF

Climate Controlled 100%

Average Rents CC / overall $1.75

Weighted Average Rents $1.75

SITE DESCRIPTION

PROJECT DETAILSDEMOGRAPHICS

HIG

HW

AY 6

80

GIMELLI WAY

N C

APIT

OL

AVE

NU

E

PROPOSED PRIVATE DRIVE

PROPOSED PRIVATE DRIVE 26' 37'

24' 24'11'

2'2'

26'

26'

26'

32'12' 18'

25' 25'

23'

24'24'

17'

18'12' 26'

34'

16'

6'

9' 12'

20'

20'

26'

24'32'

4'

4'

27'

28' 28'

22'24'

11'11'

4'

10'

3'

2'

3'

GEAR COMMERCIAL± 10,000 SF COMMERCIAL

MEDICALOFFICE

BUILDING±28,000 SF

Hybrid (13 Plex)Hybrid (12 Plex)

E-Homes (5 Plex) E-Homes (5 Plex) E-Homes (5 Plex)

E-H

omes

(5 P

lex)

E-H

omes

(5 P

lex)

E-H

omes

(5 P

lex)

E-H

omes

(5 P

lex)

E-H

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(5 P

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E-H

omes

(5 P

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E-H

omes

(5 P

lex)

E-H

omes

(5 P

lex)

E-H

omes

(5 P

lex)

E-H

omes

(5 P

lex)

E-H

omes

(5 P

lex)

E-H

omes

(5 P

lex)

E-H

omes

(5 P

lex)

E-Homes (5 Plex)

E-Homes (5 Plex)

E-Homes (5 Plex)

Hyb

rid (8

Ple

x)

Hyb

rid (8

Ple

x)

Hyb

rid (8

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x)

Hyb

rid (8

Ple

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Hybrid (7 Plex)

Hyb

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Hyb

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Gear (5 Plex)1 BIKESHOP

6 8 10 11 12 13

20212223

28

GEAR

STORAGE

19

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5

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2 24

27

25

26

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MEDICAL

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SITE PLAN

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DRAWN BY:

PROJECT NO:

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CHECKED BY:

DESIGNED BY:

DATE:

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SEPTEMBER 26, 2017

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Land Use EntitlementsLand Planning

Landscape ArchitectureCivil Engineering

Utility DesignLand Surveying

Stormwater Compliance

1570 Oakland Road (408) 487-2200San Jose, CA 95131 HMHca.com

1 PER CITY COMMENTS03/07/2018

Hybrid· 3-story· ±1,381 -1,577 S.F.· 3 - 4 bedrooms· 2 car garage (50 tandem, 48 s/s)· Solar· All electric

PROJECT SUMMARY

Total Site Area:

Residential Site Area:

± 10.6 Acres (462,280 S.F.)· Public Storage: 0.73 Ac. (32,098 S.F.)· Medical Office: 0.97 Ac. (42,212 S.F.)· Gear Commercial: 0.44 Ac. (19,206 S.F.)· Public Park & Link: 1.08 Ac. (46,884 S.F.)· Sidewalk Easement: 0.07 Ac. (3,169 S.F.)· Residential Alleyways: 2.06 Ac. (89,824 S.F.)

± 5.25 Acres (228,887 S.F.) (less above areas)

188 Homes· (95) E-Homes· (93) Hybrids

35.8 Homes per Net Acre

Open Space:

27,260 S.F. Total (145 S.F. per home)· Common: 18,800 S.F. (100 S.F. per home)· Private: 8,460 S.F. (60 S.F. per home for 75% of units)

49,241 S.F. Total (261 S.F. per home)· Common: 29,856 S.F.· Private: 19,385 S.F.

412 Spaces· Residential: 301 Spaces· Gear: 26 Spaces· MOB: 73 Spaces· Storage: 12 Spaces

502 Spaces· Res. Garage: 376 Spaces· Res. Head In: 3 Spaces (8.5' x 17' typ.)· Shared: 109 Spaces (park, medical office and gear building)· Storage: 14 Spaces

Required:

Provided:

Parking:Required:

Provided:

Total Units:

Residential Net Density:

E-Homes· 3-story· ±1,560 - 1,628 S.F.· 3 bedrooms + den· 2 car side-by-side garage· Solar· All electric

Setback Information· Northeast setback (North Capitol Avenue): 10 foot maximum· Southwest setback (Along Interstate 680): 5 foot minimum· Northwest setback (Gimelli Way): 5 foot maximum· Southeast setback (Along adjacent parcel): 10 foot minimum

Notes:1. Building Footprints might change due to the final design elevation style.2. Open space area is subject to change due to the balcony design of the elevation.3. Building setbacks are measured from property lines to building foundation lines.

Gear· ±5,000 S.F. dividable commercial space (ground floor)· ±5,000 S.F. dividable office space (second floor)· 28 parking spaces (8.5' x 17' typ.)

Bike Parking (typ.)Required: 59 spaces· Residential: 1 space / 4 homes· Gear: 3 spaces· Medical Office: 6 spacesProvided: 230 spaces· Residential: 1 space / garage· Gear / Art Plaza: 12 spaces· Medical Office: 4 spaces· Link / Park: 6 spaces· Bike Shop: 12 spaces· Public Storage 4 spaces

Medical Office / Office Building· ±28,000 S.F.· 2-story· 74 parking spaces (8.5' x 17' typ.)· 1 loading space (10' x 30' typ.)

Art Plaza

Public Storage· ±70,000 S.F.· 14 parking spaces (8.5'x17' typ.)· 3 loading spaces (10' x 30' typ.)

Flexible Surface, e.g. food trucks, carpool and shuttledrop off/pick up, zip car parking, parking, commercial

loading and unloading

Bike Shop

A

LEGENDAccessible Units

1 Building Number JANUARY 30, 2019

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PMEN

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Projected NOI Year 1 Year 2 Year 3 Year 4

Average Rental Rate/SF 1.75 $1.80 1.872 1.94688

Occupancy % 40% 70% 85% 90%

Effective Gross Income $458,388 $802,179 $1,013,037 $1,115,533

Operating Expenses/SF $4.72 $5.17 $5.43 $5.62

Total Operating Expenses $(339,919) $(372,534) $(391,387) $(405,031)

Net Operating Income $118,469 $429,645 $621,650 $710,502

• Approved site with minimum 70,000 gross SF approval

• Approved for up to height 80’ (up to 90’ with elevator shaft) based on PD approval (up to 5 floors)

• Adjacent to Highway 680

• Portion of “The Orchard” project with 188 approved, attached, for sale homes under construction

• Existing supply at 4.57 SF/capita

INVESTMENT HIGHLIGHTS

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ANNUALIZED PROPERTY OPERATING DATA

Lease-Up As StabilizedYear 1 Year 2 Year 3 Year 4

Gross Potential Rent (See Unit Mix) $1,071,000 $1.75 $1,071,000 $1.80 $1,113,840 $1.87 $1,158,394 $1.95 Ancillary Income @ 7.0% of gross $74,970 $74,970 $77,969 $81,088 Gross Income $1,145,970 $1,145,970 $1,191,809 $1,239,481 Less: Vacancy/Concessions $(687,582) 60% $(343,791) 30% $(178,771) 15% $(123,948) 10%Effective Gross Income $458,388 $802,179 $1,013,037 $1,115,533 Less: Expenses $(339,919) $(372,534) $(391,387) $(405,031)Stabilized Net Operating Income $118,469 26% $429,645 54% $621,650 61% $710,502 64%

Payroll $86,000 $88,150 $90,354 $92,613 Utilities $36,000 $36,900 $37,823 $38,768 Office Expenses $18,000 $18,450 $18,911 $19,384 Repairs & Maintenance $12,000 $12,300 $12,608 $12,923 Misc. $18,000 $18,450 $18,911 $19,384 3rd Party Management Fee (5%) $22,919 $40,109 $50,652 $55,777 Advertising & Promotion $24,000 $24,600 $25,215 $25,845 Insurance $8,000 $8,200 $8,405 $8,615 Property Tax $115,000 $117,875 $120,822 $123,842 Cap Ex $- $7,500 $7,688 $7,880 Total Estimated Expenses $339,919 74% $372,534 46% $391,387 39% $405,031 36%

PHASE I Stabilized Property Value:

5.0% CAP $14,210,047 5.5% CAP $12,918,225 6.0% CAP $11,841,706

Lease-Up Year 1 Year 2 Year 3 Year 4Occupancy 40% 70% 85% 90%

Expenses estimated based on similar projects in the San Jose market. Annual increases in expenses of 2.5% and 4.0% bump in rents years 3 and 4.


MATERIALS OPTION

±47'-0"

±52'-0"

14'-0"10'-0"

F.F.

Floor to Floor

47'-0"

Floor to Floor

10'-0"

Floor to Floor

10'-0"

Roof

3'-0"

Parapet

±14'-0"

±52'-0"

±48'-0"

14'-0"10'-0"

F.F.

Floor to Floor

47'-0"

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The OrchardSan Jose, CA

City Ventures

© 2016 WILLIAM HEZMALHALCH ARCHITECTS, INC.

2016098 | October 6, 2016

PD16-025

Self Storage BuildingEast & West Elevations

East Elevation

West Elevation

materials1. Cement Plaster with reveals2. ribbed metal siding 3. roll-uP doors- inoPerable4. Cement Plaster aCCent Feature5. storeFront glazing6. CanoPy at Customer entry7. stair & elevator tower8. glazing in metal siding

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FLOOR PLAN LEVEL 2 SITE PLAN


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2016098 | October 6, 2016

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Unit Mix # Units Sq Ft Rate Monthly Total10 x 10 510 51,000 $175 $89,250

51,000 $89,250

UNIT MIX

1.02Acres

cc

*Unit mix TBD by buyer. All units presumed to be climate controlled units with an estimated average unit size below 100 SF.

S c a l e : 1 ” = 2 0 ’ - 0 ”

* NOTE: ALL SQUARE F O O TA G E C A L C U L ATED T O THE INSIDE FA C E O F STUD O F EXTERIOR W ALL Sheet

AC-6The OrchardSan Jose, CA

City Ventures


2 0 1 6 0 9 8 | O c t o b e r 6 , 2 0 1 6

PD16-025

Self S t o r a g e B u i l d i n gF loor P l a n Site P l a n

20’ Sewer & Storm Easement

The Capitol Residential Project

NOT A PART

UTILITY/ DRAINAGE

AREA

UTILITY/ DRAINAGEAREAx

UTILITY/ DRAINAGE

AREA

FULLY ENTITLED STORAGE BUILDING.76 acre lot

Minimum 70,000 GSFApproved at 4 stories, Flexible Zoning (up to 80’h)

12 parking stalls required, 3 loading +14 spaces provided Rough Graded with Approved FEMA CLOMR‐F

BUYER TO PROCESS UTILITY CONNECTIONS:PGE/Comcast/ATTWater (SJWC)SewerStorm

4:1 max slope


PROJECT STATUS


SURROUNDING AREA MAP

SITESITE

McKee

Road

McKee

Road

Maybury

Road

Maybury

Road N Capital Avenue

N Capital Avenue

N Jackson Avenue

N Jackson Avenue

Capitol Square Mall

641 N. Capitol Ave


COMPETITIVE MATRIX

WEIGHTED AVERAGE 2.18

Subject Property Address Est. SF Rating Distance 5x5 (CC if avail) 5x10 (CC if avail) 10x10 (CC if avail) 10x15 (CC if avail) 10x20* (CC if avail) 1 McKee Road Mini Storage 2801 McKee Road 64,358 C+ 0.46 - - - - -2 Alum Rock Self Storage 2487 Alum Rock Ave 84,320 C+ 1.00 - - - - -3 Life Storage 1855 Las Plumas Ave 146,558 A 1.02 $2.35 $1.84 $1.49 $1.43 $1.364 StoragePro Self Storage 601 North King Road 95,838 B+ 1.19 - - - - -5 Public Storage 675 North King Road 132,740 B+ 1.24 - - - - -6 Public Storage 691 Lenfest Road 60,504 B+ 1.39 $3.08 $1.80 $1.36 $0.97 $1.397 Public Storage 1395 Mabury Road 63,900 B+ 1.63 $2.88 $2.78 $2.69 $1.81 $1.568 Golden Wheel Self Storage 1400 Oakland Road 53,331 C+ 2.44 - - - - -9 Extra Space Storage 1265 Oakland Road 81,000 C+ 2.46 $2.92 $2.62 $2.03 $1.74 $1.4110 A-1 Self Storage 1415 Oakland Road 77,214 C+ 2.48 $2.76 $1.86 $1.42 $1.39 $1.5011 Public Storage 925 Felipe Ave 185,227 C 2.5 $2.92 $2.70 $1.62 $1.57 $1.5612 Extra Space Storage 720 North 10th Street 126,550 B 2.63 $3.16 $2.68 $1.83 $1.61 $1.513 Public Storage 1500 Story Road 80,989 C 2.65 $2.84 $2.64 $2.25 $1.49 $1.2414 A-1 Self Storage 401 Santa Ana Ave 84,699 B- 2.69 $2.60 $1.96 $1.39 $1.26 $1.43

Market Averages 300,606 $2.83 $2.32 $1.79 $1.47 $1.44

1

2

1 2

3

3

4

6

5

5

6

7 8 9 10 11 12 13 14

7

8

910

11

12

13

14

*10 x 20 rates verified as higher than smaller unit sizes due to excess demand


AREA RESIDENTIAL CONSTRUCTION

Name Address City State Zip Distance Stage Start Dates Units1 THE ORCHARD MIXED-USE DEV N CAPITOL AVE SAN JOSE CA 95127 0.40 CONSTRUCTION Q2 Q3 2017 1882 ALUM ROCK FAMILY HOUSING 2350 ALUM ROCK AVE SAN JOSE CA 95116 1.08 PLANNING AND APPROVAL Q1 2020 873 SUNSET @ ALUM ROCK 2101 ALUM ROCK AVE SAN JOSE CA 95116 1.15 PLANNING AND APPROVAL Q2 Q3 2019 7384 ALUM ROCK URBAN VILLAGE 1936 ALUM ROCK AVE SAN JOSE CA 95116 1.27 CONSTRUCTION Q3 Q4 2018 945 MARKET PARK 1590 BERRYESSA RD SAN JOSE CA 95133 1.69 PLANNING AND APPROVAL Q2 Q3 2019 40006 EMPIRE LUMBER SITE REDEVELOPMENT 1260 E SANTA CLARA ST SAN JOSE CA 95116 2.00 CONSTRUCTION Q1 Q2 2017 4187 ROOSEVELT HOUSING N 21ST ST SAN JOSE CA 95110 2.04 PLANNING AND APPROVAL Q1 2020 808 ROOSEVELT PARK APARTMENTS 21 N 21ST ST SAN JOSE CA 95116 2.26 PLANNING AND APPROVAL Q3 2020 159 ROOSEVELT PARKS APARTMENTS 21 N 21ST ST SAN JOSE CA 95116 2.26 PLANNING AND APPROVAL Q1 2020 7910 HIGH-TECH CAMPUS MIXED-USE DEV SANTA CLARA ST AND SAN FERNANDO ST SAN JOSE CA 95116 2.44 CONSTRUCTION Q3 Q4 2016 32511 7TH AND EMPIRE APARTMENTS 535 NORTH 7TH ST SAN JOSE CA 95112 2.90 CONSTRUCTION Q1 2018 9712 JAPANTOWN MIXED-USE PROJECT E TAYLOR ST AND N 6TH ST SAN JOSE CA 95112 2.94 CONSTRUCTION Q3 2018 52013 FIFTH STREET APARTMENTS 117 N 5TH ST SAN JOSE CA 95112 3.17 PLANNING AND APPROVAL Q2 Q3 2020 2814 NORTH 4TH STREET STUDENT TOWER N 4TH ST AND E ST JOHN ST SAN JOSE CA 95112 3.22 CONSTRUCTION Q2 2018 40015 SPARTAN HEIGHTS NORTH FOURTH AND EAST ST JOHN ST SAN JOSE CA 95112 3.22 PLANNING AND APPROVAL Q4 2019 31616 MIRO - SAN JOSE 167 E SANTA CLARA ST SAN JOSE CA 95113 3.23 CONSTRUCTION Q1 2018 60017 147 E SANTA CLARA ST 147 E SANTA CLARA ST SAN JOSE CA 95113 3.27 PLANNING AND APPROVAL Q2 2021 25018 VILLAS ON THE PARK 278 N SECOND ST SAN JOSE CA 95112 3.29 CONSTRUCTION Q3 2018 8419 KELSEY AYER STATION 447 N 1ST ST SAN JOSE CA 95112 3.32 PLANNING AND APPROVAL Q1 2020 11120 SAN JOSE 1ST STREET APARTMENTS 1ST ST SAN JOSE CA 95112 3.33 CONSTRUCTION Q3 2017 51

Total Units 36,736 Total Population 87,055


This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, condi-tions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2020. All rights reserved.

Colliers International5520 Kietzke Lane, Suite 300

Reno, NV 89511P: +1 775 823 9666

Tom de JongSenior Vice President+1 408 282 [email protected] License #01889017

For property related questions please contact Tom de Jong:

self-storage opportunity · site confidential offering memorandum se-stoae oppotnt 641 n. capitol...

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