Snle Tenant/NNN Lease Inestent...and all of California’s Wine Country. The city of Santa Rosa is...

FEATURES � Single Tenant Leased Investment - lease in place since 2007

� True NNN investment / Zero Management � 4 legal parcels comprising 1.76± ac. � Anchored by Empire Nissan of Santa Rosa � Strong rental history � Excellent visibility on Santa Rosa Avenue (main retail corridor) and U.S. Highway 101 including billboard

� In area with major national tenants � Close to public transportation � Annual rent increases Min. 2%/yr per CPI � Term through 2041 (includes options at market rent min. 2%/yr)

� Includes auto service shop 1,650± sf � Site part of and contiguous to Nissan Auto dealership

OFFERING PRICE $4,975,0005.6% Cap Rate / Annual Increases

Single Tenant /NNN Leased Investment1287, 1295 & 1345 Santa Rosa Avenue, Santa Rosa, CA | Sonoma County

The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein.

Dino D’Argenzio, PartnerErlina Othman, Agent

1355 N Dutton Ave., Santa Rosa, CA 95401(707) 528-1400 Cell: (707) 483-4783 Fax: (707) 524-1419

Lic #s: 00754303, [email protected], [email protected]

CONTACT: Dino D’Argenzio: (707) 483-4783 – [email protected]

Erlina Othman: (707) 528-1400 – [email protected]

SINGLE TENANT / NNN INVESTMENT OFFERING SANTA ROSA, CA

COMMERCIAL REAL ESTATE SALE

Primary Type: Fee Ownership of Leased/Land for Sale Ground with Stable Lease Income

Price: $4,975,000.00

Subcategory: Retail/Leased Investment

(Land Leased to Auto Dealership) Land Size in s.f.:

±,76,500 sft parcel (approximately 1.77± acres)

Agents: Dino D’Argenzio and Erlina O. D’Argenzio

1355 N. Dutton Avenue Suite 100 Santa Rosa, CA 95401

Cap Rate: 5.6% (With annual increases)

Lot Size in Acres:

±1.77 Acres (in 4 legal parcels) Includes 1,650± sf service building

Zoning: CG General Commercial Auto Retail

Property Address:

1287, 1295 & 1345 Santa Rosa Avenue, Santa Rosa, CA; Sonoma County APN #037-171-029; 037-171-028; 037-171-014; 037-17-027

Property Description:

This is a true NNN and Zero Management Investment offering with annual rent increases (minimum 2%/year or C.P.I./maximum 6%/year). Empire Nissan leases this site for retail sales/showroom and services and owns building next to this site. The subject site is crucial to the Nissan Auto Dealership. The site is paved and highly improved Auto Dealership Land with unsubordinated ground lease to Empire Nissan of Santa Rosa; lease commenced 2007 and is through May 2022 with annual C.P.I. of minimum 2% and maximum 6%/year through term; plus 19 year option period through April 2041.

Total Annual Adjusted Net Income: (see detail, back page)

$280,368.00/year/NNN (Adjusts May/Annually)

Total Annual Projected Operating Expense: (see detail, back page)

$0.00 (No Management Cost)

Total Annual Net Operating Income: $280,368.00/year (As of May 2018)



CONTACT: Dino D’Argenzio: (707) 483-4783 – [email protected]

Erlina Othman: (707) 528-1400 – [email protected]

Financing: Existing: Lender: Poppy Bank Principal: $1,517,000.00 Interest/Due Date: 5% Annual Debt

Service: $110,280.00/year

Cash Flow after Current Debt:

$170,088.00/year/NNN or 4.9% cash on cash return with annual increases. $1,517,000.00 (potentially assumable)

Cash Flow: No debt cash flow is $280,368.00/year; post debt cash flow with existing loan debt = $170,088.00/year Features: Lease Commencement April 2007: Tenant performed site improvements and constructed a dealership on adjacent owned land

A) Remaining Lease Term Rent Schedule: Minimum Base Rent:

May 1, 2018 – April 30, 2019: $23,831.00/mo./NNN May 1, 2019 – April 30, 2020: $24,307.00/mo./NNN May 1, 2020 – April 30, 2021: $24,795.00/mo./NNN May 1, 2021 – April 30, 2022: $25,290.00/mo./NNN

Above Base Rent is based on 2% annual increase. *(Note: Base Rent Schedule is the greater of 2% or up to 6%,year CPI/year and could increase May 2019-April 30, 2041)

B) First Option: Fifteen (15) Years: Base Rent for first year of first option to be the greater of 102% of 2022 year rent or Market Rent whichever is greater;

C) Second Option: Four (4) Years:

May 1, 2037 – April 30, 2041: (Same As Above)

D) Tenant to pay full increases in Real Estate Taxes and all maintenance costs of the site.



SITE PLAN PARCEL MAP

VICINITY MAP



DEMOGRAPHICS

POPULATION AVG HH INCOME1 mile 25,000 $75,000

3 miles 125,000 $82,000

ADT

Hwy 101 130,000 Santa Rosa Ave 28,093



INVESTMENT OFFERING

CITYSanta Rosa, CaliforniaCounty of Sonoma

HIGHWAY COMMERICALSanta Rosa Avenue

ADDRESS1287, 1295 & 1345 Santa Rosa Avenue, Santa Rosa

SIZE1.76± Acres Paved Site

OFFERING PRICE $4,975,000

ZONING AND GENERAL PLANCG (General Commercial) district. The CG zoning district is applied to areas appropriate for a range of retail and service land uses that primarily serve residents and businesses throughout the City, including shops, personal and business services, and restaurants. Residential uses may also be accommodated as part of mixed use projects, and independent residential developments.

MARKET DATA

DESCRIPTION OF IMMEDIATE SUB-MARKETSThis Commercial Zoned Land has been an auto sales property since 1980 period. In 20 the property was secure under a long term lease by Empire Nissan of Santa Rosa and in order for the Lessee to construct their Auto Dealership sales and service building on adjacent land owner by Empire Nissan. Nissan Corp. and Empire Nissan built the existing next door facility.

DESCRIPTION OF OVERALL MARKETThe site includes a freestanding Highway visible billboard used by Lessee. This is a prime retail site with Freeway visibility raw land values for inferior locations run from $35.00 psft to $55.00 psft for undeveloped parcels with no improvements and zero income.

NARRATIVE DESCRIPTION OF OFFERINGThis is a Triple Net Leased Investment offering of Land and Existing Improvements leased to Empire Nissan of Santa Rosa.

DESCRIPTION OF PHYSICAL IMPROVEMENTSApproximately 1.76± acre parcel land with a highway billboard and small detailing shop. Site includes approx. 1,650± sf structure along South parcel line used for auto detailing of new and used cars.

DESCRIPTION OF LOCATIONEmpire Nissan of Santa Rosa occupies this prime Auto/Retail Center location just south of the downtown business district and along the “Original Auto Row” Santa Rosa Avenue and just north of several major anchored “Pomer Centers”. The Auto/Retail Center is conveniently and easily accessible from both Santa Rosa Avenue and US Highway 101 by public and private transportation and is positioned along one of the busiest commercial corridors of Santa Rosa/Sonoma County. Existing and neighboring high profile tenants include Boot Barn, Old Navy, Starbucks, Target, Costco, Best Buy, Office Depot, Cost Plus, Trader Joe’s, many restaurants and numerous other commercial and business service ventures.



SANTA ROSA

LOCATION DESCRIPTION Santa Rosa, California is the county seat of Sonoma County. It is the largest city in the North Bay Area and all of California’s Wine Country. The city of Santa Rosa is the North Bay’s premier location and as a business and service hub, Santa Rosa is the economic engine that drives the region. As the largest city between Portland and San Francisco, Santa Rosa serves a four county region as the hub for technology and entrepreneurial businesses, retail, banking and employment. Santa Rosa has a dynamic and well-balanced economy, anchored by strengths in tourism, high-tech manufacturing and retail. Residents enjoy a superb quality of life while employers benefit from a skilled workforce. Santa Rosans have a deep appreciation for the arts, education, conscientious business development and quality living.The city of Santa Rosa offers a one-stop permitting process, easy access to Economic Development program staff and Community Development staff, collaborative partnerships with key business players; from our local chambers of commerce, the higher education institutes, brokers, benchmark industries, and community organizations to a global venture community, just to name a few.The city of Santa Rosa is conveniently located just 55 miles north of San Francisco via the Golden Gate Bridge. Santa Rosa is a main shopping hub for the surrounding neighborhoods near and along the 101 corridor, such as Petaluma, Rohnert Park, Windsor, Sonoma, Healdsburg, and Sebastopol. Santa Rosa has several prominent shopping districts, including Downtown, Santa Rosa Avenue, and Montgomery Village, offering a variety of general retail, boutique shops, dining, and entertainment. There are two regional shopping malls, Coddingtown Mall and Santa Rosa Plaza.Home to approx. 500,000 people, Sonoma County is a prime location for tourism as well as residence. Just a short drive from the San Francisco Bay Area, there are nine incorporated cities in the county, in addition to seventeen unincorporated areas. The city of Santa Rosa is the most populous area, home to approximately one-third of the county’s population and was recently named as one of the nation’s “most livable communities” by Partners for Livable Communities.Sonoma County’s unemployment rate is one of the lowest in California and the county continues to show long-term job growth in the health care, hospitality and business service sectors. For the leisure, hospitality, educational and health services, which includes trade schools, social workers and health care professionals, has seen employment growth improve on a year-over-year basis. And business and professional services jobs have increased from a year earlier. In addition, new housing continues to increase throughout the county, while job growth and taxable sales also continue to rise.



SONOMA COUNTY RELAXED LIFESTYLEWith our relaxed lifestyle and diverse scenic beauty that stretches from the vineyards of Sonoma Valley to the Redwood forests and the Pacific Ocean, Sonoma County epitomizes easy living. That’s why Sonoma County receives top marks for its quality of life. The County recently ranked as one of the top 20 counties in the U.S. for climate/scenic beauty by the U.S. Department of Agriculture.

IDEAL LOCATIONLocated less than an hour’s drive north of San Francisco, Sonoma County enjoys the world-class culture of the San Francisco Bay Area, while still maintaining its agricultural heritage and rustic charm. Not surprisingly, Sonoma County was recently ranked as one of the top 100 metropolitan places to live by U.S. News and World Report.

GREAT PLACE TO START A BUSINESSSonoma County provides a range of options that make it a great place to do business. Over 25,000 businesses, both large and small, call Sonoma County home. Having some of the most affordable housing costs and a more competitive cost-of-doing-business compared to the rest of the San Francisco Bay Area, it’s no surprise that young business start-ups are discovering Sonoma County as an ideal place to launch and grow. Nerdwallet.com recently ranked the cities of Healdsburg and Sonoma in the top 20 places to start a business. Sonoma County has also been recognized as one of the top 10 places for supporting Minority-Owned Businesses and Latino Entrepreneurs.



Snle Tenant/NNN Lease Inestent...and all of California’s Wine Country. The city of Santa Rosa is...

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