OFFERING MEMORANDUM HARBOR POINTE PLACE · Shared non-exclusive common area parking for all parcels, with : additional street parking / 4: ... Starbucks Corporation is the leading

HARBOR POINTE PLACEWEST SACRAMENTO, CA

OFFERING MEMORANDUM

Executive Summary

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HARBOR POINTE PLACE

HARBOR POINTE PLACEWEST SACRAMENTO, CALIFORNIA

• 100% leased 3 tenant retail investment with long term remaining on all three leases.

• Anchored by a very high volume Starbucks on an end cap with a rare drive through and patio, with Int. 80 freeway traffic of over 90,000 cars per day. As an original build to suit tenant, Starbucks has been operating at this location since 2003 and generates 60% of center net income and has six years left on a ten year renewal.

• Harbor Pointe Place shares an extremely busy Int. 80 exchange with RiverPointe Marketplace; an 800,000 square foot super regional center that enjoys a large expanded trade area, and includes IKEA, Walmart Super Center, Home Depot, Ross, Petco, Lazy Boy, and restaurants.

• High traffic, highway commercial site that shares ingress/egress & parking with Panda Express with drive through, and includes a Jack in the Box, Chevron/Subway. A 104 room Extended Stay America, 110 room Hampton Inn & Suites, a planned 96 room Marriott Springfield that should be under construction soon, and another proposed 82 room hotel adds to the site’s dinner traffic.

• Exceptional daytime population with over 91,000 employees within a ten minute drive of the site providing excellent lunch traffic to this three restaurant offering. The California Highway Patrol Academy, Bayer Crop Science, Cummins Engine, Tony’s Fine Foods & dozens of other quality employers are a short walk away.

• Nearby West Sacramento major employers include United States Postal Service (regional), State of California (General Services Agency), California State Teachers’ Retirement System (CALSTRS), United Parcel Service (UPS Regional), Raley’s/Bel-Air Headquarters, Tony’s Fine Foods/United National Foods, Nor-Cal Beverage, Clark Pacific, and Aetna Healthcare.

Property Highlights PRICE

$2,690,000 / 5% Actual Cap Rate

FIRST YEAR ESTIMATED NOI $134,104

TENANTS Starbucks - over 24,000 locations worldwide - currently in a 10

year extension

Manaao Thai Cuisine - Open since 2009 - currently in a 5

year extension

Taco Tuesday - Family run - currently in a 5 year initial term lease

PERCENTAGE LEASED 100%

RENTABLE SQUARE FEET 4,631 SF

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HARBOR POINTE PLACE


Property Overview

Property Overview

Address: 715 Harbor Pointe PlaceWest Sacramento, California 95691

Year of Construction: 2003

Building Size: 1-story retail building with an approximate 4,631 square feet

Site Size: Approx. 0.6 acres (approximately 26,136 square feet)

Parcel Numbers: 014-794-002

Land Use: Stores, Retail Outlet

Access: Private vehicles can access through driveway access on Harbor Pointe

Utilities: Water: City of West SacramentoElectricity: Pacific Gas & Electric Gas: Pacific Gas & Electric

Flood Hazard: Subject property is located in Zone X: Area of minimal flood hazard, usually depicted of FIRMS as above the 500-year flood level (per FEMA)

Seismic Hazard: This site is not located in a Special Study Zone as established by the Alquist-Priolo Geological Hazards Act

Parking: Shared non-exclusive common area parking for all parcels, with additional street parking

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HARBOR POINTE PLACE


Site Plan

Property Overview

±1,835 SF

±1,549 SF

±1,247 SF

Tenant Summary

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HARBOR POINTE PLACE


This Starbucks is reported to be one of their highest grossing locations in Northern California. Its strategic location and

drive-through have powered revenue since Day 1 , as evidenced by long lines at the drive-through and hours of operation

being expanded numerous times. Starbucks Corporation is the leading roaster, retailer, and marketer of specialty coffee

in the world. Its operations include upwards of 7,300 coffee shops and kiosks in the United States, and nearly 3,000 in 34

other countries, with the largest numbers located in Japan, Canada, the United Kingdom, China, Taiwan, South Korea, the

Philippines, Thailand, Malaysia, Mexico, Australia, Germany, and New Zealand. In addition to a variety of coffees and coffee

drinks, Starbucks shops also feature Tazo teas; pastries and other food items; espresso machines, coffee brewers, and other

coffee- and tea-related items; and music CDs. The company also sells many of these products via mail-order and online at

starbucks.com. It also wholesales its coffee to restaurants, businesses, education and healthcare institutions, hotels, and

airlines. Through a joint venture with Pepsi-Cola Company, Starbucks bottles Frappuccino beverages and the Starbucks

DoubleShot espresso drink and sells them through supermarkets and convenience and drugstores. Through a partnership

with Kraft Foods, Inc., the company sells Starbucks whole bean and ground coffee into grocery, warehouse club, and mass

merchandise stores. From a single small store that opened in 1971 to its status as a 21st-century gourmet coffee giant,

Starbucks has led a coffee revolution in the United States and beyond.

Recovery

Starbucks #6724 (Option 1) $52.68 Jul-2017 $54.00 $4.50 StarbucksSuite: A $81,600 Jul-2018 $55.35 $4.61

6/20/2003 - 6/30/2023 $4.39 Jul-2019 $56.74 $4.73 5% annual cap20 Years 11 Days $6,800 Jul-2020 $58.67 $4.89 on increases

Jul-2021 $59.60 $4.97 Jul-2022 $61.09 $5.09

Starbucks #6724 (Option 2) $72.51 Suite: A $112,320

7/1/2023 - 6/30/2028 $6.04 5 Years $9,360

Starbucks #6724 (Option 3) $83.43 Suite: A $129,240

7/1/2028 - 6/30/2033 $6.95 5 Years $10,770

33.45%

1,54933.45%

Rent Details

1,54933.45%

1,549

General Tenant Information

Tenant Summary

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HARBOR POINTE PLACE


Taco Tuesday is a fresh, new taqueria concept that is perfect for this high traffic, employment center location. Taco

Tuesday’s focus is on a quick service menu of tasty Mexican food, beverages; including specialty drinks, tap Mexican

beers, and wine, and delicious desserts. Tenant has extensive previous experience in the food business as a plant

manager for two wholesale bakeries.

RecoveryTenant Name Rate Per YearSuite Number Amount Per Year Rent Rent Rent Structure NameLease Dates Rate Per Month Changes On Changes To Changes To TypeLease Term Amount Per Month Date $/SF-Annual $/SF-Monthly Input Amount

1. Manaao Thai Cuisine $18.00 Dec-2017 $18.60 $1.55 NetSuite: B $33,030 Dec-2018 $19.20 $1.60

4/12/2016 - 11/30/2020 $1.50 Dec-2019 $19.80 $1.65

4 Years 7 Months 19 Days $2,753

Recovery

2. Taco Tuesday $16.84 Jul-2017 $17.44 $1.45 NetSuite: C $21,000 Jul-2018 $18.04 $1.50

4/12/2016 - 6/30/2021 $1.40 Jul-2019 $18.64 $1.55

5 Years 2 Months 19 Days $1,750 Jul-2020 $19.25 $1.60

3. Taco Tuesday (Option 1) $19.85 Jul-2022 $20.45 $1.70 NetSuite: C $24,750 Jul-2023 $21.05 $1.75

7/1/2021 - 6/30/2026 $1.65 Jul-2024 $21.65 $1.805 Years $2,063 Jul-2025 $22.25 $1.85

Recovery4. Starbucks #6724 $52.68 Jul-2017 $54.00 $4.50 Starbucks

Suite: A $81,600 Jul-2018 $55.35 $4.616/20/2003 - 6/30/2023 $4.39 Jul-2019 $56.74 $4.73

20 Years 11 Days $6,800 Jul-2020 $58.67 $4.89Jul-2021 $59.60 $4.97Jul-2022 $61.09 $5.09


Initial AreaBuilding Share %

1,83539.62%

1,24726.93%

1,549

1,24726.93%

33.45%

Rent Details

General Tenant Information Rent Details


Following many successful years in the restaurant business, this experienced family operator opened Manaao Thai cuisine

in 2009, where they continue to serve highly rated homestyle Thai cuisine. A major expansion and remodel was completed

last year and includes new restrooms, an open ceiling dining room with craft beer and wine bar, and custom high end

imported wallpapers, lighting, and decor throughout. Manaao Thai’s significant investment in their business was part of

a five year lease extension that runs through November of 2020, adding significant value to the center.



4/12/2016 - 11/30/2020 $1.50 Dec-2019 $19.80 $1.65


Recovery


4/12/2016 - 6/30/2021 $1.40 Jul-2019 $18.64 $1.55



7/1/2021 - 6/30/2026 $1.65 Jul-2024 $21.65 $1.805 Years $2,063 Jul-2025 $22.25 $1.85


Suite: A $81,600 Jul-2018 $55.35 $4.616/20/2003 - 6/30/2023 $4.39 Jul-2019 $56.74 $4.73




1,83539.62%

1,24726.93%

1,549

1,24726.93%

33.45%

Rent Details





4/12/2016 - 11/30/2020 $1.50 Dec-2019 $19.80 $1.65


Recovery


4/12/2016 - 6/30/2021 $1.40 Jul-2019 $18.64 $1.55



7/1/2021 - 6/30/2026 $1.65 Jul-2024 $21.65 $1.805 Years $2,063 Jul-2025 $22.25 $1.85


Suite: A $81,600 Jul-2018 $55.35 $4.616/20/2003 - 6/30/2023 $4.39 Jul-2019 $56.74 $4.73




1,83539.62%

1,24726.93%

1,549

1,24726.93%

33.45%

Rent Details



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HARBOR POINTE PLACE


Location Aerial

Property Overview

WEST SACRAMENTO - AERIAL

N

80

STILLWATER RD - 26,216 ADT

90,000 ADT

RE

ED

AV

E -

16

,20

0 A

DT

80

SUBJECT

RiverPointe Marketplace

FUTURE82-ROOM HOTEL

(PROPOSED) 96-ROOM HOTEL(PLANNED)

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HARBOR POINTE PLACE


Location Aerial

Property Overview


ACADEMY

FUTURE82-ROOM HOTEL

(PROPOSED)

96-ROOM HOTEL(PLANNED) 80

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HARBOR POINTE PLACE


Location Aerial

Property Overview


N

RIVERPOINT MARKETPLACE

±133,992 SF GLA

RIVERBEND SHOPPING PLAZA±15,000 SF GLA

CALIFORNIASTATE

CAPITOL

SACRAMENTOSTATE

CAL EXPOSACRAMENTO CITY COLLEGE

SACRAMENTOEXECUTIVE

AIRPORT

THE ZIGGURAT THE BARN

CALSTRS BUILDING

ARDEN FAIR MALL

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HARBOR POINTE PLACE


Retail Aerial - City of West Sacramento

Property Overview


80 80

CALIFORNIA HIGHWAY PATROL ACADEMY

PACIFIC COAST BANKER’S BANK

KMAX

RIVERBEND SHOPPING PLAZA

WESTERN TRUCKPARTS & EQUIPMENT VALLEY

POWER SYSTEM

TONY’S FINE

FOODS

US SOCIAL SECURITY ADMINISTRATION

TOMRA SORTING

SOLUTIONS

SUPER IMPORT

BAVANFOOD

BAYER CORP

FUTURE82-ROOM HOTEL

(PROPOSED)96-ROOM HOTEL

(PLANNED)

CUMMINS SALES & SERVICE

Area Overview

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HARBOR POINTE PLACE


West Sacramento is a vibrant riverfront community located across the Sacramento River

and minutes from the State Capitol and downtown Sacramento. It is recognized as an

innovation leader in the region and a growing center of commerce, with an expanding

cluster of food industry companies. Urban farms dot the landscape, providing fresh

produce to residents and restaurateurs. Incorporated in 1987, West Sacramento

encompasses approximately 23 square miles, with a population approaching 50,000

people. West Sacramento is home to Raley Field, the 14,500 seat stadium for the

Sacramento River Cats, the #1 minor league in the AAA, and affiliate of the San

Francisco Giants. A regional entertainment center, Raley Field offers scenic views of

the Sacramento skyline during games, concerts and festivals. Raley Field anchors the

developing Bridge District, a 180-acre, development area between the Tower Bridge

and the Pioneer Memorial Bridge. Over 1,000 new homes have been occupied along this

one-mile stretch of Sacramento riverfront, near Garden Park and riverfront bicycle trails.

West Sacramento Overview

Key West Sacramento Assets• Global Food Industry Hub: 35 food producers & distributors

• 500 acres of City and Port-owned land

• Sacramento River Cats, AAA team and Raley Field, stadium and event center

• Close Proximity to State Capitol /Downtown Sacramento

• Close Proximity to UC Davis

• Center of intersection of all interstate highways: I-5, I-80, US50

• Sacramento City College Downtown Center

• U.S.P.S. Regional Processing Center & UPS Regional Center

• Port of West Sacramento & Foreign Trade Zone #143

• Port Area is “Craft Beer District”

The Bridge District is the region’s first LEED neighborhood, planned for 4,000

high-rise homes, offices, retail and entertainment venues. Plans are underway for

a streetcar line that will connect the Bridge District with the State Capitol.

The City offers new and established neighborhoods for all ages and incomes,

including town homes, lofts and master planned new home communities.

Regional amenities abound including the West Sacramento River Walk and 11

miles of riverfront for boating, sailing, fishing and paddle boarding. The River City

Rowing Club and the U.C. Davis Rowing Club hosts NCAA championship races

at the Port of West Sacramento. Well-maintained parks and bicycle trails are

located throughout West Sacramento. The southern “Southport” area features

new, master-planned home communities, parks and schools, near the City’s

Recreation Center, which offers tennis courts, rock climbing wall, pools for adults

and children, and a large water slide.

West Sacramento’s City Hall and Civic Center, Community Center, Yolo County

Public Library and Sacramento City College anchor West Sacramento’s downtown

revitalization. The Community Center houses the City’s award-winning, universal

preschool programs, an art gallery, and black box theater and community rooms

for leisure classes, meetings and performances. Educational choices include

public, private and charter schools, the UC Davis Early College Prep High School,

Career Tech Academy and Culinary Arts and Farm-to-Fork Education program.

West Sacramento offers ample business space and land, high-quality water

and a full suite of business services. Home to global companies Bayer Crop

Science, Siemens Healthcare, McKesson, Xerox and Miyamoto International, West

Sacramento is also proud to host locally-grown companies including Raley’s/Bel

Air Markets, Nor-Cal Beverage, and Tony’s Fine Foods. Public agencies include the

California Fuel Cell Partnership, the California Department of General Services,

and headquarters offices of the California State Teachers Retirement System.

Area Overview

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HARBOR POINTE PLACE


Sacramento Regional Overview• A recent Wall Street Journal states that Sacramento is California’s newest

real estate hot spot and leads with “Price cuts have been replaced by

bidding wars. A once-sleepy downtown is flush with urban-renewal

projects. A luxury condo tower with penthouses priced over $4 million is

under construction. Sacramento, CA, long seen as a fairly bland government

town, is in the midst of a real estate boom.” Highlights include a 3.2 billion

dollar investment in an urban renaissance including the new Golden 1

Center and Downtown Commons. At 8% year over year, rent growth for

apartments is the fastest growing among major U.S. metro areas. The

office sector is considered a top 5 market for investments due to strong

job growth, low vacancy rates, and healthy rent growth. Retail absorption

continues to reduce vacancy across the region. The West Sacramento

submarket contains over 1.8M square feet of retail with no space listed for

sublease. The submarket has one of the lowest retail vacancy rates of any

submarket in the region with overall vacancy at 3.1%. The market should

continue its pattern of falling vacancy throughout 2017.

• The Sacramento region is experiencing a profound shift in its competitive

position, thanks in large part to an influx of entrepreneurs, businesses,

creative professionals, and a highly-educated, STEM-driven talent base.

• The City of Sacramento’s Innovation Zone is a set of initiatives that

concentrates resources and amenities to help provide the infrastructure and

support fresh companies need to grow. The City of Sacramento’s limited

partnership with 500 Startups, the world’s foremost seed investor group, is

part of its ongoing commitment to the region’s tech future.

• Greater Sacramento is hosting more international business activity than

ever before. Roughly one in every four companies that is showing interest

in investing and creating jobs in the Sacramento Region has a parent

company in another country. This is also reflected in recent successes—

of the last 17 companies the organization assisted with expansions or

new locations, nine were based outside of the U.S. For four of them, this

was their first location in the U.S.

• Over 400 separate food crops are grown in California. Food production

is a $54 billion industry in California, with over $21 billion coming from

foreign exports. Agri-business leaders like H.M. Clause, Bayer Crop

Science, and Monsanto know the value of the Central Valley. Revolutionary

technology is developed and implemented here every day. And these

industry innovators have a significant presence in Greater Sacramento,

the heart of the Central Valley region.

• The Greater Sacramento region is a national hub for renewable energy

research and development. The area hosts over 200 green firms and

organizations, many with headquarters in the region.

• Anchored by Northern California’s best healthcare system, Greater

Sacramento is a life science and health service destination. Dignity

Healthcare, Kaiser Permanente, Sutter Health, and the UC Davis Health

System are primary drivers of discovery. UC Davis Medical Center is

on the cutting edge of treatments and cures. Greater Sacramento’s

healthcare system ranks among the top in the nation for cancer treatment,

cardiovascular care, and treatment of strokes. UC Davis School of

Veterinary Medicine is ranked #1 in the world. Greater Sacramento is a

leader in genomic and biomedical research, and life sciences industries.

Area Overview

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HARBOR POINTE PLACE


Area Overview, continuedThe major league sports teams that call the Sacramento region home

include the Sacramento Kings, who play in the new innovative Golden

1 Center just 3 miles away from subject property. West Sacramento

is the home of the AAA baseball team, the River Cats, and a state-of-

the-art, multi-use baseball complex, Raley Field. The River Cats are the

minor league affiliate of Major League Baseball’s San Francisco Giants.

NBUSINESS

80LOOP

BUSINESS

80LOOP

PROPERTY

SOUTHPORT

RIVER CITYHIGH

SCHOOL

DEEP WATER CHANNEL

PORT OF SACRAMENTO

SA

CR

AM

EN

TO

RIV

ER

CHPACADEMY

DOWNTOWNSACRAMENTO

Shaun Morrow, CCIMSenior Director916-617-4242 [email protected] #00548078

Erik NeeseDirector916-329-1545 [email protected] #01243960

400 Capitol Mall,Suite 1800 Sacramento, CA 95814

ph: 916-288-4800 fx: 916-446-0024

www.cushmanwakefield.com

Confidential Offering Memorandum

HARBOR POINTE PLACE, WEST SACRAMENTO, CA

CONFIDENTIALITY & DISCLAIMER

The information contained in this marketing brochure (“Materials”) is proprietary and confidential. It is intended to be re-

viewed only by the person or entity receiving it from Cushman & Wakefield (“Agent”). The Materials are intended to be used

for the sole purpose of preliminary evaluation of the subject property (“Property”) for potential purchase.

The Materials have been prepared to provide unverified summary financial, physical, and market information to prospective

buyers to enable them to establish a preliminary level of interest in potential purchase of the Property. The Materials are not

to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial,

physical, and market conditions relating to the Property.

The information contained in the Materials has been obtained by Agent from sources believed to be reliable, however, no

representation or warranty is made regarding the accuracy or completeness of the Materials. Agent makes no representation

or warranty regarding the Property, including but not limited to income, expenses, or financial performance (past, present, or

future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating sub-

stances (PCB’s, asbestos, mold, etc.); Compliance with laws and regulations (local, state, and federal); or, financial condition

or business prospects of any tenant (tenant’s intentions regarding continued occupancy, payment of rent, etc). Any prospec-

tive buyer must independently investigate and verify all of the information set forth in the Materials. Any prospective buyer is

solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating and evaluating

the Property.

By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.

All Property showings are by appointment only and must be coordinated through the Agent.

Addendum

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HARBOR POINTE PLACE


Sale Procedures

All investors should base their offers and pricing on the “As-Is, Where-Is” condition of

the property. Qualified prospective investors will have the opportunity to inspect the

property. Each prospective investor is to rely upon its own investigation, evaluation and

judgment as to the condition of the property. Inquiries regarding Harbor Pointe should be directed to either of the following:

Shaun Morrow, CCIMSenior DirectorRetail Investments916-617-4242 [email protected] #00548078

Erik NeeseDirectorCapital Markets Investments916-329-1545 [email protected] #01243960

400 Capitol Mall, Suite 1800 Sacramento, California 95814

ph: 916-288-4800 fx: 916-446-0024

Cushman & Wakefieldwww.cushmanwakefield.com

Documents

OFFERING MEMORANDUM HARBOR POINTE PLACE · Shared non-exclusive common area parking for all parcels, with : additional street parking / 4: ... Starbucks Corporation is the leading