Christopher Sheldon Senior Vice President LIC #

Transcription

1 File Photograph Subject Property Bell Plumbing & Heating / Clear Channel Billboard Price: $3,187, % Cap Rate Established Long Term Tenancy Rare Highway 101 Billboard Location with Percentage Rent Existing Cell Tower Income For more information, please contact: Andrew Bogardus Senior Managing Director, Principal Andy.Bogardus@cassidyturley.com LIC # Cassidy Turley Christopher Sheldon Senior Vice President Chris.Sheldon@cassidyturley.com LIC # Sutton Roley Partner sutton.roley@cassidyturley.com LIC #

2 LOCATION th Street, LOT SIZE Approximately 0.34 acres 14,810+/ square feet IMPROVEMENTS A two-story industrial building consisting of approximately 3,233+/ square feet, plus an attached row of single and two-story wood structures of approximately 5,000 square feet. The two-story industrial building was originally constructed in The site also contains a billboard (leased to Clear Channel) that is visible from / adjacent to Highway 101, and a cell tower leased to Cingular/AT&T. NET OPERATING INCOME As of May 2014 As of May 2016 Bell Plumbing $ 75,178 $ 78,215 Clear Channel - Base Rent $ 84,000 $ 90,000 Percentage Rent (1) $ 44,474 $ 47,182 AT&T Mobility $ 23,431 $ 24,890 Total Rents $227,113 $240,287 Property Tax Reimbursement (2) $ 3,597 $ 3,817 Insurance Reimbursement (2) $ 3,415 $ 3,553 Effective Gross Income $234,125 $247,657 Less Property Tax Expense (3) (1.2% of Asking Price) (3) $ 38,100 $ 39,639 Insurance $ 4,796 $ 5,090 Net Operating Income $191,229 $202,928 (1) Average of last three years percentage rent paid. Assume increases by 3% per year. (2) Bell Plumbing pays 75% of insurance, and 75% of the property tax assessment prior to a 2007 ownership change due to Proposition 13 protection. (3) Taxes and Insurance are increased by 2% per year. PRICE $3,187, % Cap Rate

3 LEASES Leased to BELL PLUMBING AND HEATING, INC. for 10 years from May 2011 until May 2021 (7 years remaining). The net annual rent of $75,178 (as of May 2014) increases annually by 2%. The lease is net with the tenant paying 75% of insurance and all maintenance including roof and structure. The tenant pays 75% of insurance, and 75% of the property tax assessment prior to a 2007 ownership change due to Proposition 13 protection. The tenant has an early termination right on April 30, 2016 with six months written notice. CLEAR CHANNEL owns the existing billboard on the site that is visible from Highway 101, adjacent to the property. As of May 2014, the rental rate is $84,000 per year NNN annually, that increases by $6,000 every 2 years, or 32% of the gross revenue, whichever is greater. The lease expires in December Cingular, now AT&T Mobility, leases the cell tower until May As of May 2014, the net annual rent is $23,461. The lease increases annually by 3%. The tenant may terminate the lease at anytime with 30 days notice and paying six months rent. BELL PLUMBING AND HEATING, INC. Bell Plumbing and Heating, Inc. is a local residential and commercial plumbing services company in business for 20 years. Residential services include installation, repair and replacement of sewers and drains, faucets, sinks, toilets, showers & tubs, waterlines, pipework, disposers, dishwashers, water heaters and septic tanks. Bell Plumbing is the company to call for any commercial plumbing work, drain cleaning, high-pressure water jetting, underground leak and line detection, video camera pipe inspections, grease trap and liquid waste pumping, backflow protection, automated drain care programs and pipe repair and replacement. Bell Plumbing offers minute arrival once a call for service is made, 24 hours a day / 7 days a week service and no additional charge on the weekends and holidays. Website: sfbellplumbing.com

4 CLEAR CHANNEL COMMUNICATIONS, INC. CLEAR CHANNEL COMMUNICATIONS, INC. was founded in San Antonio, TX with the purchase of a single radio station in After decades of growing media assets globally, the company has become one of the world s leading media and entertainment companies, operating as CC MEDIA HOLDINGS (OTCBB:CCMO). Clear Channel consists of two main media businesses: CLEAR CHANNEL OUTDOOR HOLDINGS (NYSE: CCO) and the wholly owned Clear Channel Media and Entertainment. Between these divisions, Clear Channel focuses on providing a spectrum of multi-platform advertising and marketing opportunities for partners and world-class entertainment for listeners and users. Clear Channel Outdoor Holdings, Inc. is one of the world s largest outdoor advertising companies, with more than 675,000 displays in over 40 countries across five continents, including 47 of the 50 largest markets in the United States. Clear Channel Outdoor Holdings offers many types of displays across its global platform to meet the advertising needs of its customers. This includes a growing digital platform that now offers over 1,000 digital billboards across 37 U.S. markets. Clear Channel Outdoor Holdings International segment operates in nearly 30 countries across Asia, Australia, Europe and Latin America in a wide variety of formats. For the fiscal year ended December 31, 2013, Clear Channel Outdoor reported operating income of $290 million. Net loss of $48 million and total stockholder s equity was at a loss of $42 million. More information is available at and

5 AT&T, INC. AT&T INC. (NYSE: T) is an American multinational telecommunications corporation headquartered in downtown Dallas, Texas. AT&T is the largest provider both of mobile telephony and of fixed telephony in the United States, and also provides broadband subscription television services. As of May 2013, AT&T is the 21st largest company in the world by market value, and the 13th largest non-oil company. As of 2014, it is also the 20th largest mobile telecom operator in the world, with over 250 million mobile customers. AT&T is recognized as one of the leading worldwide providers of IP-based communications services to businesses. The company also has the nation's most reliable 4G LTE. They also have the largest international coverage of any U.S. wireless carrier, offering the most phones that work in the most countries. AT&T operates the nation's largest Wi-Fi network including more than 32,000 AT&T Wi-Fi Hot Spots at popular restaurants, hotels, bookstores and retailers, and provides access to nearly 1 million hotspots globally through roaming agreements. AT&T is the only national U.S. TV service provider to offer a 100-percent IP-based television service. It's part of AT&T s "three-screen" integration strategy to deliver services across the mobile device, the PC and the TV. AT&T U-verse includes fiber optic technology and computer networking to bring its customers better digital TV, faster Internet, and a smarter phone. For the fiscal year ended December 31, 2013, total revenue was $128.8 billion (1.9% increase compared to fiscal 2012) and net income increased 151% to $18.2 billion. Total stockholder s equity was $91 billion. Website:

6 SITE INFORMATION The subject property is located at the corner of 26th Street and Kansas, just east of and parallel to US Highway 101, with excellent visibility. This is a suburban business park environment in an urban location along the Bayshore Corridor. Easy access to Interstate 280, US Highway 101, and the Third Street Light Rail. The subject property is just minutes from downtown and SFO, in the heart of San Francisco s Industrial Zone. The site also contains a billboard that is visible from / adjacent to Highway 101, and a cell tower leased to Cingular/AT&T. BAYSHORE CORRIDOR San Francisco s Bayshore Boulevard is the core of a large warehouse cluster in the southeast corner of the city. It is San Francisco s main industrial districts with easy access to Highway 101, Interstate 280, the Bay Bridge, and the airport to the south. In addition to Bayshore Boulevard, one of the city s oldest commercial thoroughfares, major access roads to the Bayshore district include Industrial Street, Oakdale Avenue, Jerrold Avenue and Silver Avenue. Cesar Chavez Street is considered the neighborhood s northern boundary, after which it becomes Potrero Hill, while the intersection of Highways 101 and Interstate 280 constitutes its southern border with the Portola neighborhood. The Bayshore corridor offers an abundance of warehouses in the ,000 sq ft range, as well as smaller warehouse condo units in multi-tenant properties. SAN FRANCISCO, CALIFORNIA The City and County of San Francisco, is the leading financial and cultural center of Northern California and the San Francisco Bay Area. As the only consolidated city-county in California, San Francisco encompasses a land area of about 46.9 square miles on the northern end of the San Francisco Peninsula, giving it a density of about 17,620 people per square mile. It is the most densely settled large city (population greater than 200,000) in the state of California and the second-most densely populated major city in the United States. San Francisco is the fourth most populous city in California, and the 14th most populous city in the United States with a Census-estimated 2012 population of 825,863. The city is also the financial and cultural hub of the larger San Jose-San Francisco- Oakland metropolitan area, with a population of 8.4 million. San Francisco is ranked 44th of the top tourist destinations in the world, and is the sixth most visited one in the United States in The city is renowned for its cool summers, fog, steep rolling hills, eclectic mix of architecture, and landmarks including the Golden Gate Bridge, cable cars, the former prison on Alcatraz Island, and its Chinatown district. It is also a primary banking and finance center.

7 SAN FRANCISCO, CALIFORNIA (CONTINUED) Economy Tourism, the city's largest private-sector employer, is the backbone of the San Francisco economy. Its frequent portrayal in music, film, and popular culture has made the city and its landmarks recognizable worldwide. San Francisco attracts the fourth-highest number of foreign tourists of any city in the U.S., ranks 35th out of the 100 most visited cities worldwide, and claims Pier 39 near Fisherman's Wharf as the third-most popular tourist attraction in the nation. More than 16.5 million visitors arrived in San Francisco in 2012, injecting $8.9 billion into the economy. With a large hotel infrastructure and a world-class convention facility in the Moscone Center, San Francisco is also among the top-ten North American destinations for conventions and conferences. The legacy of the California Gold Rush turned San Francisco into the principal banking and finance center of the West Coast in the early twentieth century. Montgomery Street in the Financial District became known as the "Wall Street of the West," home to the Federal Reserve Bank of San Francisco, the Wells Fargo corporate headquarters. Bank of America was founded in San Francisco and in the 1960s, built the landmark modern skyscraper at 555 California Street for its corporate headquarters. Many large financial institutions, multinational banks and venture capital firms are based in or have regional headquarters in the city. With over 30 international financial institutions, seven Fortune 500companies, and a large support infrastructure of professional services including law, public relations, a architecture and design also with significant presence in the city, San Francisco is designated as one of eighteen Alpha World Cities. San Francisco ranks 18th in the world's top producing cities, and 12th place in the top twenty global financial centers. San Francisco's economy has increasingly become tied to San Jose and Silicon Valley, its neighbors to the south, sharing the need for highly educated workers with specialized skills. Many popular and prominent Internet companies and "start-ups" such as Craigslist, Twitter, Square, Zynga, Salesforce.com, Airbnb, and the Wikimedia Foundation among others have established their head offices in San Francisco. San Francisco has been positioning itself as a biotechnology and biomedical hub and research center. The Mission Bay neighborhood, site of a second campus of UCSF, fosters a budding industry and serves as headquarters of the California Institute for Regenerative Medicine, the public agency funding stem cell research programs statewide. As of 2009, there were 1,800 full-time biochemists and biophysicists employed in San Francisco, with an annual mean wage of $92,620.

8 SAN FRANCISCO, CALIFORNIA (CONTINUED) Economy (Continued) Small businesses with fewer than 10 employees and self-employed firms make up 85% of city establishments as lately, it has been particularly popular with entrepreneurs establishing "start-up" companies. The successful penetration of national big box and formula retail chains into the city has been made intentionally difficult by political and civic consensus. In an effort to buoy small privately owned businesses in San Francisco and preserve the unique retail personality of the city, the Small Business Commission supports a publicity campaign to keep a larger share of retail dollars in the local economy, and the Board of Supervisors has used the planning code to limit the neighborhoods where formula retail establishments can set up shop, an effort affirmed by San Francisco voters. The top employer in the city is the city government itself, employing 6.25% of the city's population, followed by University of California, San Francisco. Third, at 2.04%, is Wells Fargo, the largest private-sector employer. Colleges & Universities The University of California, San Francisco is the sole campus of the University of California system entirely dedicated to graduate education in health and biomedical sciences. It is ranked among the top-five medical schools in the United States and operates the UCSF Medical Center, which ranks among the top 15 hospitals in the country. UCSF is a major local employer, second in size only to the city and county government. A 43-acre Mission Bay campus was opened in 2003, complementing its original facility in Parnassus Heights. It contains research space and facilities to foster biotechnology and life sciences entrepreneurship and will double the size of UCSF's research enterprise. UCSF operates 20 facilities across San Francisco. The University of California, Hastings College of the Law, founded in Civic Center n 1878, is the oldest law school in California. San Francisco State University is part of the California State University. The school has approximately 30,000 students and awards undergraduate, master's and doctoral degrees in more than 100 disciplines. The City College of San Francisco, with its main facility in the Ingleside district, is one of the largest two-year community colleges in the country. It has an enrollment of about 100,000 students and offers an extensive continuing education program.

9 SAN FRANCISCO, CALIFORNIA (CONTINUED) Colleges & Universities Founded in 1855, the University of San Francisco, a private Jesuit university the oldest institution of higher education in San Francisco and one of the oldest universities established west of the Mississippi River. Golden Gate University is a private, nonsectarian, coeducational university formed in 1901 and located in the Financial District. It is primarily a post-graduate institution focused on professional training in law and business, with smaller undergraduate programs linked to its graduate and professional schools. With an enrollment of 13,000 students, the Academy of Art University is the largest institute of art and design in the nation. Founded in 1871, the San Francisco Art Institute is the oldest art school west of the Mississippi. The California College of the Arts, located north of Potrero Hill, has programs in architecture, fine arts, design, and writing. The San Francisco Conservatory of Music, the only independent music school on the West Coast, grants degrees in orchestral instruments, chamber music, composition, and conducting. The California Culinary Academy, associated with the Le Cordon Bleu program, offers programs in the culinary arts, baking and pastry arts, and hospitality and restaurant management. California Institute of Integral Studies, founded in 1968, offers a variety of graduate programs in its Schools of Professional Psychology & Health, and Consciousness and Transformation. Known for combining spirituality and social change, the Institute also features a bachelor's degree completion program. Airports Located 13 miles south of downtown in unincorporated San Mateo County, San Francisco International Airport (SFO) is under the jurisdiction of the City and County of San Francisco. SFO is a hub for United Airlines and Virgin America. SFO is a major international gateway to Asia and Europe, with the largest international terminal in North America. In 2011, SFO was the 8th busiest airport in the U.S. and 22nd busiest in the world, handling over 40.9 million passengers. Located across the bay, Oakland International Airport (OAK) is a popular, low-cost alternative to SFO. With four runways and over 10 million passengers in 2012, Oakland International Airport is served by various major and low-cost airlines offering numerous direct and connecting flights throughout the country, with connections to all points of the globe.

10 DEMOGRAPHICS DEMOGRAPHICS 3-MILES 5-MILES 7-MILES Population (2012) 461, ,392 1,026,225 Average HH Income $85,142 $94,368 $92,685 *The above net income is an estimate and does not provide for all potential costs and expenses (i.e., maintenance, repair, etc.) that may be required of the owner. Any reserves set forth herein are merely estimates and not based on any experience, physical inspection, or prior knowledge. All prospective purchasers are strongly advised to make an independent investigation to determine their estimate of costs and expenses prior to entering into an agreement to purchase. NOTE The information set forth herein has been received by us from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness of the information and make no representations with respect thereto. The above is submitted subject to errors, prior sale or lease, change in status, or withdrawal without notice. SAN FRANCISCO COUNTY

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15 Population Summary Market Profile th St,, Ring: 1 mile radius Latitude: Longitude: mile 3 miles 5 miles 2000 Total Population 49, , , Total Population 48, , , Total Population 50, , , Group Quarters 1,288 15,446 23, Total Population 53, , , Annual Rate 1.29% 1.18% 1.06% Household Summary 2000 Households 17, , , Average Household Size Households 18, , , Average Household Size Households 19, , , Average Household Size Households 20, , , Average Household Size Annual Rate 1.55% 1.38% 1.25% 2010 Families 8,683 72, , Average Family Size Families 8,808 73, , Average Family Size Families 9,624 79, , Average Family Size Annual Rate 1.79% 1.68% 1.51% Housing Unit Summary 2000 Housing Units 17, , ,101 Owner Occupied Housing Units 35.5% 29.6% 33.2% Renter Occupied Housing Units 61.1% 65.7% 62.0% Vacant Housing Units 3.4% 4.7% 4.8% 2010 Housing Units 19, , ,414 Owner Occupied Housing Units 37.3% 30.1% 32.7% Renter Occupied Housing Units 56.1% 61.4% 59.0% Vacant Housing Units 6.6% 8.5% 8.3% 2012 Housing Units 20, , ,918 Owner Occupied Housing Units 36.1% 29.2% 31.8% Renter Occupied Housing Units 57.9% 62.8% 60.4% Vacant Housing Units 6.0% 8.0% 7.8% 2017 Housing Units 21, , ,466 Owner Occupied Housing Units 37.0% 30.3% 33.1% Renter Occupied Housing Units 57.9% 62.8% 60.3% Vacant Housing Units 5.1% 6.9% 6.6% Median Household Income 2012 $66,666 $56,481 $64, $80,982 $69,815 $79,154 Median Home Value 2012 $558,359 $567,953 $588, $625,785 $633,433 $658,765 Per Capita Income 2012 $36,727 $38,453 $41, $44,194 $45,786 $49,194 Median Age Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and Esri converted Census 2000 data into 2010 geography. Made with Esri Business Analyst April 15, Esri Try it Now! Page 1 of 5

16 2012 Households by Income Market Profile th St,, Ring: 5 mile radius Latitude: Longitude: mile 3 miles 5 miles Household Income Base 19, , ,350 <$15, % 16.3% 13.7% $15,000 - $24, % 9.9% 8.7% $25,000 - $34, % 7.7% 7.2% $35,000 - $49, % 11.2% 10.7% $50,000 - $74, % 14.5% 14.6% $75,000 - $99, % 10.2% 10.5% $100,000 - $149, % 13.6% 15.1% $150,000 - $199, % 7.3% 8.3% $200, % 9.2% 11.3% Average Household Income $94,807 $85,135 $94, Households by Income Household Income Base 20, , ,972 <$15, % 15.2% 12.5% $15,000 - $24, % 7.7% 6.7% $25,000 - $34, % 6.0% 5.5% $35,000 - $49, % 9.6% 9.1% $50,000 - $74, % 13.5% 13.4% $75,000 - $99, % 13.2% 13.4% $100,000 - $149, % 15.6% 17.0% $150,000 - $199, % 8.9% 10.0% $200, % 10.2% 12.4% Average Household Income $113,176 $100,921 $112, Owner Occupied Housing Units by Value Total 7,316 60, ,409 <$50, % 0.7% 0.5% $50,000 - $99, % 5.4% 4.6% $100,000 - $149, % 5.2% 5.7% $150,000 - $199, % 3.5% 4.0% $200,000 - $249, % 3.5% 3.5% $250,000 - $299, % 3.8% 3.6% $300,000 - $399, % 8.7% 8.1% $400,000 - $499, % 11.2% 10.4% $500,000 - $749, % 29.1% 27.5% $750,000 - $999, % 15.3% 15.8% $1,000, % 13.5% 16.5% Average Home Value $573,517 $600,971 $626, Owner Occupied Housing Units by Value Total 8,021 66, ,023 <$50, % 0.3% 0.2% $50,000 - $99, % 2.4% 2.0% $100,000 - $149, % 2.4% 2.5% $150,000 - $199, % 2.7% 2.9% $200,000 - $249, % 2.6% 2.5% $250,000 - $299, % 2.3% 2.1% $300,000 - $399, % 6.5% 5.7% $400,000 - $499, % 13.6% 12.5% $500,000 - $749, % 32.4% 30.7% $750,000 - $999, % 18.5% 19.1% $1,000, % 16.4% 19.7% Average Home Value $653,016 $674,691 $702,644 Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest dividends, net rents, pensions, SSI and welfare payments, child support, and alimony. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and Esri converted Census 2000 data into 2010 geography. April 15, 2014 Made with Esri Business Analyst 2014 Esri Try it Now! Page 2 of 5

17 2010 Population by Race/Ethnicity Market Profile th St,, Ring: 5 mile radius Latitude: Longitude: mile 3 miles 5 miles Total 48, , ,182 White Alone 57.4% 49.3% 48.2% Black Alone 5.1% 8.8% 6.3% American Indian Alone 0.9% 0.7% 0.5% Asian Alone 12.9% 26.0% 32.6% Pacific Islander Alone 0.5% 0.6% 0.5% Some Other Race Alone 16.9% 9.4% 7.3% Two or More Races 6.2% 5.2% 4.7% Hispanic Origin 36.4% 20.8% 16.5% Diversity Index Population by Race/Ethnicity Total 50, , ,383 White Alone 57.3% 49.2% 48.0% Black Alone 4.9% 8.5% 6.0% American Indian Alone 0.9% 0.7% 0.5% Asian Alone 12.9% 26.0% 32.7% Pacific Islander Alone 0.5% 0.6% 0.5% Some Other Race Alone 17.2% 9.7% 7.5% Two or More Races 6.3% 5.3% 4.8% Hispanic Origin 37.2% 21.4% 17.1% Diversity Index Population by Race/Ethnicity Total 53, , ,297 White Alone 56.9% 48.8% 47.5% Black Alone 4.5% 7.7% 5.5% American Indian Alone 0.9% 0.8% 0.6% Asian Alone 12.9% 26.2% 33.0% Pacific Islander Alone 0.6% 0.7% 0.5% Some Other Race Alone 17.7% 10.2% 7.9% Two or More Races 6.5% 5.5% 5.0% Hispanic Origin 38.8% 22.8% 18.1% Diversity Index Population by Relationship and Household Type Total 48, , ,182 In Households 97.4% 96.3% 97.0% In Family Households 62.3% 57.7% 61.9% Householder 17.8% 17.1% 18.6% Spouse 11.5% 11.7% 13.4% Child 20.6% 18.2% 19.2% Other relative 6.8% 7.0% 7.2% Nonrelative 5.6% 3.7% 3.5% In Nonfamily Households 35.0% 38.7% 35.1% In Group Quarters 2.6% 3.7% 3.0% Institutionalized Population 1.0% 0.8% 0.7% Noninstitutionalized Population 1.6% 2.8% 2.4% Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from different race/ethnic groups. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and Esri converted Census 2000 data into 2010 geography. April 15, 2014 Made with Esri Business Analyst 2014 Esri Try it Now! Page 4 of 5