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100% leased Core Bay Area Drug/pharmacy-Anchored Neighborhood Center
EL CERRITO, CACONFIDENTIAL OFFERING MEMORANDUM
Jones Lang LaSalle Americas, Inc. (“JLL”), Real Estate License #01223413
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JLL, as exclusive advisor, is pleased to offer the extraordinary opportunity to acquire in Del Norte Marketplace, a 64,270 square foot, institutional-quality, drug/pharmacy-anchored shopping center (the “Property”) located in the densely populated and high-growth Bay Area retail market of El Cerrito, CA.
The Property’s irreplaceable positioning on the highly trafficked San Pablo Ave (Highway 123) with direct visibility and access to the I-80 Freeway, as well as immediate adjacency to the busiest BART Station in Contra Costa County makes this one of the most exciting and irreplaceable retail assets in the East Bay.
Del Norte Marketplace is fully leased to an optimal mix of e-commerce resistant and regionally drawing tenants.
THE OFFERING
PROPERTY SUMMARYADDRESS 11511-11565 San Pablo Avenue
GLA (SF) 64,270
OCCUPANCY (%) 100%
WALT 8.9 Years
SITE AREA (ACRES) 4
YEAR BUILT / RENOV 1999
PARKING RATIO 4.0/1,000 SF
ZONING TOHIMU (in Qualified Opportunity Zone)
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EXISTING FINANCINGDel Norte Marketplace is currently encumbered by a $10 million loan that matures in August 2028 and carries a 3.93% fixed interest rate. This attractive financing may be assumed by buyer.
INVESTMENT SUMMARYPRICE BEST OFFER
YEAR 1 NOI $1,339,629
CORE IN-FILL EAST BAY LOCATION
TRANSIT ADJACENT LOCATION NEXT TO EL CERRITO DEL NORTE
BART STATION
DOMINANT EAST BAY DRUG-ANCHORED
RETAIL CENTER
EXCEPTIONAL FREEWAY
VISIBILITY AND ACCESS
BRAND NEW10-YEAR LEASE WITH
DD’S DISCOUNTS
8.9 YEAR WEIGHTED AVERAGE LEASE
TERM
SIGNIFICANT NEW MULTI-FAMILY
DEVELOPMENT IN IMMEDIATE AREA
$140,510 AVERAGE HOUSEHOLD INCOME WITHIN 5-MILES (11% GROWTH EXPECTED
THROUGH 2024)
INVESTMENT HIGHLIGHTS
100% LEASED WITH 90% OF INCOME GENERATED FROM CREDIT TENANTS
LONG-TERM EMBEDDED LAND VALUE AND FUTURE
MIXED-USE DEVELOPMENT POTENTIAL
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SAN FRANCISCO BAY
BAY BRIDGE
BERKELEY: 8 MIN ON BARTOAKLAND: 18 MIN ON BARTSA FRANCISCO: 32 MIN ON BART
OAKLAND
EL CERRITO DEL NORTE BART STATION
SAN PABLO AVE
DOWNTOWN SAN FRANCISCO
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INSTITUTIONAL IN-FILL BAY AREA RETAIL MARKET
El Cerrito is a core, in-fill East Bay retail market with an average Household Income (HHI) exceeding $140,510 and a retail vacancy rate of only 1.3%. The market has experienced exceptional residential growth and has seen a 10% increase in retail asking rents from pre-recession peaks. The trade area boasts numerous institutional owners including TRC, Regency Centers, UC Regents, DWS (Deutsche Bank), Stockbridge, and Kennedy Wilson among others.
EXCEPTIONAL NATIONAL CREDIT AND E-COMMERCE PROOF TENANT ROSTER
The Property is 100% leased to an impressive roster of national and credit tenants: Ross, dd’s Discounts, Walgreens, IHop, and T-Mobile. Approximately 90% of total revenue is generated from credit tenants. With a focus on drug and pharmacy, discount soft-goods, and restaurant tenants, Del Norte Marketplace’s roster of tenants is insulated from e-commerce.
SECURE INCOME STREAM AND EASY MANAGEMENT
Del Norte Marketplace is fully leased to only five tenants, all NNN leases, creating limited landlord obligations and ease of management. The WALT is 8.9 Years with very limited near-term lease roll creating a stable and secure long-term cash flow derived from category leading credit tenants.
INVESTMENT SUMMARY
• BRAND NEW 10-YEAR LEASE WITH DD'S DISCOUNTS
• NEW 10-YEAR EXTENSION WITH WALGREENS
DEMOGRAPHICS
300,870 Population within 5 Miles
$140,510 Average HH Income El Cerrito(Expected to grow by 11% over next 5 Years)
$793,380 Median Home Value El Cerrito
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INVESTMENT SUMMARY
LONG-TERM UPSIDE AND ABILITY TO ADD DENSITY – SAN PABLO SPECIFIC PLAN
Del Norte Marketplace offers an exceptional future mixed-use development site. The Property is located within El Cerrito’s San Pablo Specific Plan which is focused on dense, walkable, live / work / play developments along San Pablo Avenue and around El Cerrito Del Norte BART station. The Property is zoned Transit-Oriented-High-Intensity-Mixed-Use, enabling a clear path to adding density and a multi-family component to the site.
OPPORTUNITY ZONE STIMULATING SIGNIFICANT MULTI-FAMILY DEVELOPMENT
The Property benefits from its position within a designated Opportunity Zone, which is spurring significant development and redevelopment in the immediate vicinity. Through tax incentive programs, owners and developers are investing significant capital into dense mixed-use projects that will increase the number of residents and customers surrounding the site. There are more than 20 significant multi-family and mixed-use properties that have been developed or are currently in the pipeline within a mile of the property, adding 2,102 units to the immediate market.
IRREPLACEABLE TRANSIT ADJACENT LOCATION
The Property is located directly across from El Cerrito Del Norte BART station, a major East Bay transit hub, proving access to the Silicon Valley, San Francisco, and throughout the East Bay. El Cerrito Del Norte BART station is commuter collection site serving as the primary BART station for the cities of El Cerrito, San Pablo, El Sobrante, Pinole, Hercules, and several other cities along Interstate-80. The station is currently completing a $32 million renovation and modernization project to enhance facilities for the 18,000 daily riders.
POSITIONED WITH EXCEPTIONAL ACCESS AND VISIBILITY
The Property has over 900 linear feet of visibility to over 190,000 vehicles per day along Interstate-80 and San Pablo Avenue, the major East Bay North / South thoroughfares. This irreplaceable positioning provides ease of access attracting shoppers and retailers to the Property and has promoted an exceptionally high average occupancy rate.
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EL CERRITO DEL NORTE BART STATION
Oakland - 18 minsSan Francisco - 32 mins
Albany Hill Park
EL CERRITO PLAZA BART STATION
EL CERRITO PLAZA (2.5 MILES)
(0.8 MILES)
DEL NORTE PLACE
MACDONALD 80 SHOPPING CENTER (0.9 MILES)S
AN
PAB
LO A
VE
PROPOSED 124 KEYHAMPTON INNDEVELOPMENT
PROPOSED REDEVELOPMENT TO INCLUDE 315 UNITS
OF MULTI-FAMILY AT ADJACENT PROPERTY
WITH 62,000 SF CHEVROLET DEALERSHIP AND 11,750 SF GROUND
FLOOR RETAIL
ENTITLED 223 UNITS OF MULTI-FAMILY
(0.2 MILES)
PROPOSED 130 UNITS OF MULTIFAMILY
(0.4 MILES)
HOTEL MIRA VISTA BERKELEY NORTH
(0.2 MILES)
PROPOSED 130 UNIT MULTIFAMILY (0.5 MILES FROM SITE)
ENTITLED 170 UNITS OF MULTIFAMILY
(0.6 MILES)
63 UNIT MULTIFAMILY PROJECT IN LEASE UP
DOWNTOWN OAKLAND
SIZE (SF) 13,905% of GLA 21.6%EXPIRATION 3/31/2029
SIZE (SF) 24,000% of GLA 37.3%EXPIRATION 1/31/2028
SIZE (SF) 2,000% of GLA 3.1%EXPIRATION 7/17/2022
SIZE (SF) 2,500% of GLA 3.9%EXPIRATION 10/19/2024
NEW 10-YEAR LEASE
SIZE (SF) 21,865% of GLA 34.0%EXPIRATION 1/31/2030
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TAX PARCEL SUMMARY
PARCEL (APN) # ACRES BUILDING
(SF) NOTES
513-362-011-1 0.35 4,500 IHOP, T-MOBILE
513-362-012-9 1.86 24,000 ROSS
513-362-013-7 1.69 21,865 dd's Discounts
513-362-014-5 1.08 13,905 Walgreens
4.98 64,270
TAX PARCEL MAP
170,000 ADF
SAN PABLO AVE (23,900 ADF)
PEER
LESS
AVE
APN: 513-362-012-9
APN: 513-362-013-7
APN:513-362-014-5
APN:
513-
362-
011-
1Del Norte Marketplace is
composed of four separate
parcels, providing investors
with a diverse exit strategy and
ability to lower their basis.
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3.9%
21.6%
71.4%
3.1%
Food & Beverage
Health & Beauty
Discount Retailer
General Retailer
TENANT ROSTER
TENANT MIX
Del Norte Marketplace is 100% occupied by a mix of e-commerce resistant, national credit retailers, with long-term leases.
TENANT SUMMARY
TENANT SUITE SIZE (SF) % of GLA LED CREDIT RATING (S&P)
11545 24,000 37.3% 1/31/2028 A- INVESTMENT GRADE
11555 21,865 34.0% 1/31/2030 A- INVESTMENT GRADE
11565 13,905 21.6% 3/31/2029 BBB INVESTMENT GRADE
11511 2,500 3.9% 10/19/2024 No Rating
11511A 2,000 3.1% 7/17/2022 BB+
TOTAL: 64,270 100.0% WALT: 8.9 Years
SAN PABLO AVE(23,900 ADT) 550 FEET OF SAN PABLO AVE FRONTAGE123
24,000 SF
13,905 SF
NAP
NAP
NAP
2,500 SF
2,00
0 SF
(170,000 ADT)
PEER
LESS
AVE
CUTT
ING B
LVD(1
5,30
0 AD
T)
80
Former OSH, Proposed 629 Multi-Family
Units
21,865 SF
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SAN PABLO AVE(23,900 ADT) 550 FEET OF SAN PABLO AVE FRONTAGE123
24,000 SF
13,905 SF
NAP
NAP
NAP
2,500 SF
2,00
0 SF
(170,000 ADT)
PEER
LESS
AVE
CUTT
ING B
LVD(1
5,30
0 AD
T)
80
Former OSH, Proposed 629 Multi-Family
Units
21,865 SF
EL CERRITO del NORTE BART
STATION
OwnedNot a Part
SITE PLAN
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
EL CERRITO, CA
JORDAN [email protected] Lic. # 01419993
JAKE DEMPSEY [email protected] Lic. # 02099920
INVESTMENT ADVISORS DEBT ADVISOR ANALYSTERIC [email protected] Lic. #01896107
BRYAN LEY [email protected] Lic. #01458927
TIM KURUZAR [email protected] Lic. #01778384
