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10370 & 10390Peter A. McCuen Boulevard
Two Class A office buildings • ±178,494 sq. ft.SACRAMENTO, CALIFORNIA
Capital Markets | Investment PropertiesOFFERING MEMORANDUM
Peter A. McCuen Blvd.
10370
Peter A. McCuen Blvd.
10390
| 10370 & 10390 PETER A. McCUEN BOULEVARD2
INVESTMENT CONTACTS
RANDY GETZExecutive Vice PresidentLic. 00828903+1 916 446 [email protected]
MATT POSTSenior AssociateLic. 01899707+1 916 446 [email protected]
STUART WRIGHTSenior AssociateLic. 01451087+1 916 446 [email protected]
CBRE, Inc.500 Capitol MallSuite 2400Sacramento, CA 95814
10370 & 10390 PETER A. McCUEN BOULEVARD | 3
Executive Summary ..................................................... 5
Property Overview Highlights ....................................................................14 Property Description ....................................................16 Financial Overview ....................................................... 20 Tenant Profiles .............................................................31
Area Overview ........................................................... 33
Market Trends ........................................................... 39
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EXECUTIVE SUMMARY
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CBRE, Inc., as exclusive advisor, is pleased to offer for sale a two-building 178,494 square foot Class A office property
located within Mather Field Business Park in Sacramento County. 10370 and 10390 Peter A. McCuen Boulevard
(“McCuen Property”) is an office complex that has enjoyed strong historical occupancy since its development in 2008.
EXECUTIVE SUMMARY
OFFERING SUMMARY
PRICE $33,100,000
SQUARE FEET 178,494
PRICE PSF $185
CURRENTLY LEASED 100%
YEAR CONSTRUCTED 2008
KEY TENANTSEducational Credit Management Corporation, California Office of Emergency Services, ACS/Xerox, Sutter
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• Offered at $33,100,000 ($185 per square foot)
• Institutional quality asset
• High-credit quality tenants with staggered lease terms
• Great location in Mather campus environment with concentration of government tenants
• Strong historical occupancy and high tenant retention
• Excellent 16.94% projected leveraged return by assuming existing loan (4.435% interest rate; 69% LTV)
• High-quality construction; award-winning tilt panel design (Tilt-Up Concrete Association)
• Immediate Highway 50 freeway access; Mather Field off-ramp is an underutilized, low traffic exit
• Public transportation – Light Rail and Sacramento Regional Transit bus
• Significant tenant investment in leased space
• Abundant parking – 5 spaces per 1,000 rentable square feet
• 3.5% vacancy in Mather Field portion of Highway 50 Corridor
• Proximity to Mather Field Airport with capacity to land the largest jets
• Best-in-class property management, which is available to any prospective buyer
INVESTMENT HIGHLIGHTS
BIDDING PROTOCOL
Ownership requests that initial expressions of interest be in the form of a non-binding Letter of Intent to CBRE, Inc. Offers
should identify the significant terms and conditions of the Bidder’s proposal including, at minimum, the following:
• Price and sources of funding (including debt and equity and relative ratios)
• Background and qualifications of bidder with transactional references
• Proposed time frames for due diligence, financing, and closing
| 10370 & 10390 PETER A. McCUEN BOULEVARD8
Downtown Sacramento
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Located approximately 85 miles northeast of San Francisco at the junction of Interstate 5 and
Interstate 80, Sacramento has convenient access to airports, rail, and a deep-water port. As the
capital of California, the region benefits from a strong government presence. Government jobs
make up more than 25% of the employment in the region and much of the State’s $171 billion
budget flows through Sacramento in some form. Sacramento has become increasingly attractive
to non-governmental industries including technology, life sciences, renewable energy, health care,
and education which have been drawn by the deep and well-educated labor pool, lower cost of
living, lack of seismic risk, and optimal location in proximity to other metropolitan areas throughout
the West.
AREA OVERVIEW
Newly developed Golden 1 Center in Downtown Sacramento
| 10370 & 10390 PETER A. McCUEN BOULEVARD10
10370 & 10390 Peter A. McCuen Blvd.
Downtown Sacramento
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The McCuen Property
is situated within the
Highway 50 Corridor, the
largest office submarket
in Sacramento with 11.4
million square feet of office
buildings. The Highway 50
Corridor is an ideal location
for tenants seeking a lower-
cost alternative to the CBD,
ease of freeway access,
abundance of free parking,
proximity to light rail and
public transportation and
diverse housing alternatives
for employees and
executives. Because of these
features, the submarket has
long catered to government
and large corporate tenants
and been a focal point for
institutional investors.
More particularly, the
Property is located within
Mather Field, an area within
the Highway 50 Corridor.
There are 27 office buildings
in Mather Field totaling
approximately 1,205,000
square feet. Office vacancy
in Mather Field is 3.52%
which reflects strong demand
for office space in this
location.
Downtown Sacramento
FOLSOM BLVD
50
MATHER FIELD RD
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Property Overview
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CLASS A BUILDINGS WITH ABUNDANT PARKING
Built in 2008, the two Class A buildings that comprise the
McCuen Property sit on one 12.1-acre parcel and benefit from
abundant parking, at 5 per 1,000 square feet. The McCuen
Property was constructed using an award-winning tilt-up panel
design devised by Comstock Johnson and LPA Sacramento
and recognized by the Tilt-Up Concrete Association.
DESIRABLE LOCATION
The Property is strategically positioned with convenient
freeway access to Highway 50, one of the region’s major
east-west routes. This access allows employers to draw from
several suburban residential areas and provides direct access
to Downtown Sacramento, only a 15-minute drive to the west.
Nearby public transit is essential to government tenants.
HIGHLIGHTS
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TENANT COMMITMENT
• California Office of Emergency Services, which
has occupied approximately 70% of the 10390
building since January 2012, has a specialized
LEED Gold-certified build-out in its suite that
includes room for the federal Department of
Homeland Security. In October 2015, Cal OES
committed an additional $1,401,463 of its own
funds to make further improvements to its space.
The Agency also owns a headquarters building
a short distance away within Mather. Cal OES’s
lease runs through December 2026.
• ECMC has leased space in the 10370 building
since January 2011 and recently signed a 7-year
renewal through December 2023. The space
includes a dedicated 4,500 square foot fitness
center for the exclusive use of its employees.
ATTRACTIVE LOAN ASSUMPTION
The existing loan, to be assumed, carries a 4.435%
interest rate, matures in February 2023, and requires
only a 31% down payment.
HIGH LEVERAGED RETURN
Using the debt assumptions in our DCF mode,
Buyer’s leveraged return is projected to be 16.94%.
PUBLIC TRANSPORTATION
The property connects to the Mather Field/Mills
Station Light Rail Station two miles away by a
Regional Transit bus line that stops on the south side
of McCuen Blvd. Access to public transportation is a
high priority for government tenants.
50
MATHER BLVD
PETER A McCUEN BLVD
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PROPERTY DESCRIPTION
SUMMARY
ADDRESS 10370 & 10390 Peter A. McCuen Boulevard, Mather, CA 95655
CITY none
COUNTY Sacramento
PARCEL # 067-0990-001
LAND AREA 12.1 acres
BUILDING SQUARE FOOTAGE ±178,494
YEAR BUILT 2008
FLOOD ZONE X – outside 500-year floodplain
FLOORS 2
PARKING 872 spaces; ±5.00:1,000 SF parking ratio
ZONING SPA (MFSPA) – Mather Field Special Planning Area
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CONSTRUCTION DETAIL
ARCHITECT Comstock Johnson
GENERAL CONTRACTOR Ballance Construction
CONSTRUCTION TYPE Concrete tilt-up
EXTERIOR WALLS Concrete tilt-up panels with overlaying panels
FOUNDATION Reinforced concrete slab
ROOF Flat built-up roofing system
CEILING HEIGHT 9’ interior ceiling height
FLOOR PLATE Building 10370 – 56,120 SF per floor; Building 10390 – 33,127 SF per floor
INTERIOR FINISHES
Floor – commercial grade carpeting, slate
Walls – wallpaper/gypsum
Ceilings – lay-in acoustic panels
Lighting – fluorescent fixtures
ELEVATORSBuilding 10370 – 1 passenger elevator and 1 freight elevator;
Building 10390 – 1 passenger elevator
HVAC Two rooftop units in each building
SPRINKLERS/FIRE ALARM Fully sprinklered (wet pipe system); intrusion alarm
SECURITYCard access system in both buildings. Building 10370 includes a secured lobby/
foyer area with access control desk and glass wall
COLUMN SPACING 30’ x 32’
POWER SPECIFICATIONS 2400 amps per building
ADDITIONAL FEATURES
Building 10370 and part of Building 10390 served by back-up generator
maintained and operated by Landlord. Building 10390 has a back-up
generator only serving ACS/Xerox that is maintained and operated by Tenant.
| 10370 & 10390 PETER A. McCUEN BOULEVARD18
10370 Peter A. McCuen Blvd.
10390 Peter A. McCuen
Blvd.
The McCuen Property is on the southeast line of Peter A. McCuen Boulevard, just southwest of Schriever Avenue.
Peter A. McCuen is a two-lane, fully improved arterial for the neighborhood. The Subject benefits from easy access
to Highway 50 approximately one mile north of site via nearby Mather Field Road.
SITE DESCRIPTION
N
BUILDING 10370
Educational Credit Mgmt Corp 84,998 sf
Sutter Connect LLC 27,242 sf
BUILDING 10390
Xerox/ACS State & Local Solutions 19,103 sf
Cal. Office Emergency Services 43,102 sf (usable)
NOT TO SCALE -- ALL DIMENSIONS ARE APPROXIMATE.
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10370 Peter A. McCuen Blvd.
10390 Peter A. McCuen Blvd.
| 10370 & 10390 PETER A. McCUEN BOULEVARD20
FINANCIAL OVERVIEW
You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
FINANCIAL SUMMARY
Purchase Price $33,100,000
Total Rentable Square Feet (1) 178,494
Price per Foot $185
Financing:
Type Existing, Assumable
Interest Rate - fixed 4.435%
Principal Balance as of August 2017 (69% LTV) $22,315,936
Down Payment (31% equity) $10,784,064
Amortization (months) 360
Maturity date February 1, 2023
Monthly Payment $121,685
Annual Payment $1,460,220
Current (2)
Scheduled Gross Income $3,629,119
plus projected expense reimbursements $26,733
Adjusted Scheduled Gross Income $3,655,852
less general vacancy loss $0
Effective Gross Income $3,655,852
less Operating Expenses ($1,305,056)
per square foot $7.31
Net Operating Income $2,350,796
Initial Cap Rate 7.1%
Year 2 Cap Rate 7.9%
Unleveraged IRR 9.36%
Leveraged IRR 16.94%
(1) The OES lease was converted from usable to rentable square footage for consistency purposes.(2) Current income represents Argus Year 1 figures.
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ANALYSIS ASSUMPTIONS
ANALYSIS TERM AND STARTING DATE: Ten years commencing August 2017
INFLATION RATES:
General: 3.0%
Market rent: 3.0%
Operating expenses: 3.0%
Property taxes: 2.0%
CURRENT MARKET RENT: $1.90 per square foot per month
RESERVES: $0.10 per square foot per year
OPERATING EXPENSES: Owner's 2017 budget, with taxes adjusted to reflect post-sale value and management fees based on 3% of EGI.
EXPENSE REIMBURSEMENTS
Current: The State OEM lease is gross with no reimbursements. The other tenants have full service leases and reimburse expenses pro-rata above a base year amount. ECMC has a 2016 Base Year but with an exclusion for increase in property taxes as a result of a property sale. Sutter has a 2015 Base Year. Xerox/ACS has a 2011 Base Year, but increases in "controllable expenses" are capped at 4% per year.
Future: Same
VACANCY ABSORPTION: Sutter Connect vacates 12/31/2017. See below.
MARKET LEASING ASSUMPTIONS MLA1
Renewal probability: 75%
Options: None considered.
Months dark: 6
Starting rent: 100% of fair market rent when the lease commences.
Escalations: Assumes rent is increased annually by $.05 per square foot per month.
T.I. Allowance: $25 per rentable square foot on new leases; $7 per square foot on renewals.
Concessions: None
Term length: 7 years.
Leasing commissions: 6% of base rent on the first five years and 3% on the remaining years.
GENERAL VACANCY RATE: 5%
DEBT / REFINANCING: Existing debt ($22.3m outstanding; 4.435% int; 30-yr amort; due Feb 2023) is assumed. Buyer refinances in Feb 2023 at 65% LTV, 5% interest, 30-yr amort, due in 10 years, and pays 1% loan origination fee.
REVERSION:
Terminal capitalization rate: 7.50%
Present value discounting method: Annually, midpoint on cash flow; endpoint on resale
Costs of Sale: 1.5% of purchase price.
| 10370 & 10390 PETER A. McCUEN BOULEVARD22
PROJECTED CASH FLOW
Schedule Of Prospective Cash Flow In Inflated Dollars for the Fiscal Year Beginning 8/1/2017
YEAR 1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11
FOR THE YEARS ENDING $/SF/YR JUL-2018 JUL-2019 JUL-2020 JUL-2021 JUL-2022 JUL-2023 JUL-2024 JUL-2025 JUL-2026 JUL-2027 JUL-2028
Potential Gross Revenue
Base Rental Revenue $22.58 $3,939,678 $4,101,043 $4,096,955 $4,070,019 $4,136,104 $4,197,878 $4,479,084 $4,658,450 $4,812,247 $4,839,521 $4,959,290
Absorption & Turnover Vacancy (1.78) (310,559) (38,506) (39,661) (385,670) (63,658) (65,568) (213,706) (97,557)
Scheduled Base Rental Revenue 20.80 3,629,119 4,101,043 4,058,449 4,030,358 4,136,104 4,197,878 4,093,414 4,594,792 4,746,679 4,625,815 4,861,733
Base Rental Step Revenue 1,362 17,707 34,053 60,905 88,711 116,518 156,041 128,602 206,046 222,080
Expense Reimbursement Revenue 0.15 26,733 46,669 67,977 63,669 90,621 118,892 85,098 69,144 65,470 103,345 133,717
Total Potential Gross Revenue 20.96 3,655,852 4,149,074 4,144,133 4,128,080 4,287,630 4,405,481 4,295,030 4,819,977 4,940,751 4,935,206 5,217,530
General Vacancy (142,184) (108,679) (109,538) (154,439) (159,793) (118,750) (122,974) (18,000) (168,197)
Effective Gross Revenue 20.96 3,655,852 4,006,890 4,035,454 4,018,542 4,133,191 4,245,688 4,295,030 4,701,227 4,817,777 4,917,206 5,049,333
Operating Expenses
Ad valorem Property Taxes 2.27 396,505 404,435 412,524 420,774 429,190 437,773 446,529 455,459 464,569 473,860 524,139
Direct Levies 0.22 37,842 37,842 37,842 37,842 37,842 37,842 37,842 37,842 37,842 37,842 37,842
Utilities - Electric & Gas 1.60 278,703 306,190 313,073 322,466 334,582 344,620 331,898 361,801 372,655 375,094 393,675
Sewer, Water 0.19 32,981 33,970 34,990 36,039 37,120 38,234 39,381 40,562 41,779 43,033 44,324
Trash 0.15 25,499 26,264 27,052 27,863 28,699 29,560 30,447 31,361 32,301 33,270 34,269
Insurance 0.21 36,080 37,162 38,277 39,426 40,608 41,827 43,081 44,374 45,705 47,076 48,489
Property Management 0.63 109,676 120,207 121,064 120,556 123,996 127,371 128,851 141,037 144,533 147,516 151,480
Repairs & Maintenance 0.31 53,576 56,962 58,457 60,210 62,244 64,111 63,890 67,662 69,692 70,969 73,780
Janitorial/Cleaning 0.97 168,891 184,016 188,325 193,975 201,079 207,111 201,198 217,723 224,254 226,386 237,031
Carpet cleaning 0.11 18,989 19,559 20,145 20,750 21,372 22,013 22,674 23,354 24,055 24,776 25,520
Elevator Repair 0.04 7,647 7,876 8,113 8,356 8,607 8,865 9,131 9,405 9,687 9,978 10,277
HVAC 0.20 35,007 36,775 37,792 38,926 40,185 41,391 41,767 43,769 45,082 46,106 47,764
Landscaping/Parking 0.43 74,265 76,493 78,788 81,151 83,586 86,093 88,676 91,337 94,077 96,899 99,806
Window Washing 0.04 7,080 7,292 7,511 7,737 7,969 8,208 8,454 8,708 8,969 9,238 9,515
Telephone for HVAC/Elev/Fire 0.10 16,872 17,378 17,900 18,436 18,990 19,559 20,146 20,750 21,373 22,014 22,675
Fire/Life Safety 0.02 2,995 3,085 3,177 3,273 3,371 3,472 3,576 3,683 3,794 3,908 4,025
Pest Control 0.01 2,448 2,521 2,597 2,675 2,755 2,838 2,923 3,011 3,101 3,194 3,290
Total Operating Expenses 7.48 1,305,056 1,378,027 1,407,627 1,440,455 1,482,195 1,520,888 1,520,464 1,601,838 1,643,468 1,671,159 1,767,901
Net Operating Income 13.48 2,350,796 2,628,863 2,627,827 2,578,087 2,650,996 2,724,800 2,774,566 3,099,389 3,174,309 3,246,047 3,281,432
Debt Service
Interest Payments 5.62 980,029 958,294 935,576 911,829 887,007 1,070,280 1,341,193 1,320,250 1,298,236 1,275,095
Principal Payments 2.75 480,191 501,926 524,644 548,391 573,213 510,904 409,344 430,287 452,301 475,442
Origination Points & Fees 271,744
Total Debt Service 8.37 1,460,220 1,460,220 1,460,220 1,460,220 1,460,220 1,852,928 1,750,537 1,750,537 1,750,537 1,750,537
Leasing & Capital Costs
Tenant Improvements 3.90 681,050 240,055 1,167,159 396,858 646,741 295,238
Leasing Commissions 1.61 281,464 53,584 129,518 43,882 71,390
CapEx Reserve at $0.10/sf 0.10 17,444 17,968 18,507 19,062 19,634 20,223 20,830 21,455 22,098 22,761 23,444
Total Leasing & Capital Costs 5.62 979,958 17,968 18,507 312,701 19,634 20,223 1,317,507 21,455 462,838 740,892 318,682
Cash Flow After Debt ServiceBut Before Taxes ($0.51) ($89,382) $1,150,675 $1,149,100 $805,166 $1,171,142 $851,649 ($293,478) $1,327,397 $960,934 $754,618 $2,962,750
Revenue/Expense Notes 2016 ad valorem taxes ECM has a 2016 base year with Prop. 13 protection. ECM will pay a pro rata share of increases over 2016 taxes ignoring any increase due to sale or transfer. This amount increases 2%/year.
You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
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Schedule Of Prospective Cash Flow In Inflated Dollars for the Fiscal Year Beginning 8/1/2017
YEAR 1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11
FOR THE YEARS ENDING $/SF/YR JUL-2018 JUL-2019 JUL-2020 JUL-2021 JUL-2022 JUL-2023 JUL-2024 JUL-2025 JUL-2026 JUL-2027 JUL-2028
Potential Gross Revenue
Base Rental Revenue $22.58 $3,939,678 $4,101,043 $4,096,955 $4,070,019 $4,136,104 $4,197,878 $4,479,084 $4,658,450 $4,812,247 $4,839,521 $4,959,290
Absorption & Turnover Vacancy (1.78) (310,559) (38,506) (39,661) (385,670) (63,658) (65,568) (213,706) (97,557)
Scheduled Base Rental Revenue 20.80 3,629,119 4,101,043 4,058,449 4,030,358 4,136,104 4,197,878 4,093,414 4,594,792 4,746,679 4,625,815 4,861,733
Base Rental Step Revenue 1,362 17,707 34,053 60,905 88,711 116,518 156,041 128,602 206,046 222,080
Expense Reimbursement Revenue 0.15 26,733 46,669 67,977 63,669 90,621 118,892 85,098 69,144 65,470 103,345 133,717
Total Potential Gross Revenue 20.96 3,655,852 4,149,074 4,144,133 4,128,080 4,287,630 4,405,481 4,295,030 4,819,977 4,940,751 4,935,206 5,217,530
General Vacancy (142,184) (108,679) (109,538) (154,439) (159,793) (118,750) (122,974) (18,000) (168,197)
Effective Gross Revenue 20.96 3,655,852 4,006,890 4,035,454 4,018,542 4,133,191 4,245,688 4,295,030 4,701,227 4,817,777 4,917,206 5,049,333
Operating Expenses
Ad valorem Property Taxes 2.27 396,505 404,435 412,524 420,774 429,190 437,773 446,529 455,459 464,569 473,860 524,139
Direct Levies 0.22 37,842 37,842 37,842 37,842 37,842 37,842 37,842 37,842 37,842 37,842 37,842
Utilities - Electric & Gas 1.60 278,703 306,190 313,073 322,466 334,582 344,620 331,898 361,801 372,655 375,094 393,675
Sewer, Water 0.19 32,981 33,970 34,990 36,039 37,120 38,234 39,381 40,562 41,779 43,033 44,324
Trash 0.15 25,499 26,264 27,052 27,863 28,699 29,560 30,447 31,361 32,301 33,270 34,269
Insurance 0.21 36,080 37,162 38,277 39,426 40,608 41,827 43,081 44,374 45,705 47,076 48,489
Property Management 0.63 109,676 120,207 121,064 120,556 123,996 127,371 128,851 141,037 144,533 147,516 151,480
Repairs & Maintenance 0.31 53,576 56,962 58,457 60,210 62,244 64,111 63,890 67,662 69,692 70,969 73,780
Janitorial/Cleaning 0.97 168,891 184,016 188,325 193,975 201,079 207,111 201,198 217,723 224,254 226,386 237,031
Carpet cleaning 0.11 18,989 19,559 20,145 20,750 21,372 22,013 22,674 23,354 24,055 24,776 25,520
Elevator Repair 0.04 7,647 7,876 8,113 8,356 8,607 8,865 9,131 9,405 9,687 9,978 10,277
HVAC 0.20 35,007 36,775 37,792 38,926 40,185 41,391 41,767 43,769 45,082 46,106 47,764
Landscaping/Parking 0.43 74,265 76,493 78,788 81,151 83,586 86,093 88,676 91,337 94,077 96,899 99,806
Window Washing 0.04 7,080 7,292 7,511 7,737 7,969 8,208 8,454 8,708 8,969 9,238 9,515
Telephone for HVAC/Elev/Fire 0.10 16,872 17,378 17,900 18,436 18,990 19,559 20,146 20,750 21,373 22,014 22,675
Fire/Life Safety 0.02 2,995 3,085 3,177 3,273 3,371 3,472 3,576 3,683 3,794 3,908 4,025
Pest Control 0.01 2,448 2,521 2,597 2,675 2,755 2,838 2,923 3,011 3,101 3,194 3,290
Total Operating Expenses 7.48 1,305,056 1,378,027 1,407,627 1,440,455 1,482,195 1,520,888 1,520,464 1,601,838 1,643,468 1,671,159 1,767,901
Net Operating Income 13.48 2,350,796 2,628,863 2,627,827 2,578,087 2,650,996 2,724,800 2,774,566 3,099,389 3,174,309 3,246,047 3,281,432
Debt Service
Interest Payments 5.62 980,029 958,294 935,576 911,829 887,007 1,070,280 1,341,193 1,320,250 1,298,236 1,275,095
Principal Payments 2.75 480,191 501,926 524,644 548,391 573,213 510,904 409,344 430,287 452,301 475,442
Origination Points & Fees 271,744
Total Debt Service 8.37 1,460,220 1,460,220 1,460,220 1,460,220 1,460,220 1,852,928 1,750,537 1,750,537 1,750,537 1,750,537
Leasing & Capital Costs
Tenant Improvements 3.90 681,050 240,055 1,167,159 396,858 646,741 295,238
Leasing Commissions 1.61 281,464 53,584 129,518 43,882 71,390
CapEx Reserve at $0.10/sf 0.10 17,444 17,968 18,507 19,062 19,634 20,223 20,830 21,455 22,098 22,761 23,444
Total Leasing & Capital Costs 5.62 979,958 17,968 18,507 312,701 19,634 20,223 1,317,507 21,455 462,838 740,892 318,682
Cash Flow After Debt ServiceBut Before Taxes ($0.51) ($89,382) $1,150,675 $1,149,100 $805,166 $1,171,142 $851,649 ($293,478) $1,327,397 $960,934 $754,618 $2,962,750
Revenue/Expense Notes 2016 ad valorem taxes ECM has a 2016 base year with Prop. 13 protection. ECM will pay a pro rata share of increases over 2016 taxes ignoring any increase due to sale or transfer. This amount increases 2%/year.
| 10370 & 10390 PETER A. McCUEN BOULEVARD24
RESALE AND IRR
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
FOR THE YEARS ENDING JUL-2018 JUL-2019 JUL-2020 JUL-2021 JUL-2022 JUL-2023 JUL-2024 JUL-2025 JUL-2026 JUL-2027
Resale Amount
Gross Proceeds from Sale $35,051,507 $35,037,693 $34,374,493 $35,346,613 $36,330,667 $36,994,213 $41,325,187 $42,324,120 $43,280,627 $43,752,427
Commissions & Adjustments (525,773) (525,565) (515,617) (530,199) (544,960) (554,913) (619,878) (634,862) (649,209) (656,286)
Net Proceeds From Sale 34,525,734 34,512,128 33,858,876 34,816,414 35,785,707 36,439,300 40,705,309 41,689,258 42,631,418 43,096,141
Outstanding Debt Retirement
Total Principal Balances (21,835,745) (21,333,820) (20,809,176) (20,260,785) (19,687,572) (27,009,783) (26,600,438) (26,170,151) (25,717,851) (25,242,409)
Net Resale Proceeds After Debt $12,689,989 $13,178,308 $13,049,700 $14,555,629 $16,098,135 $9,429,517 $14,104,871 $15,519,107 $16,913,567 $17,853,732
Unleveraged Annual IRR 8.62% 8.23% 7.50% 8.02% 8.48% 8.66% 9.49% 9.58% 9.53% 9.36%
Leveraged Annual IRR 16.78% 15.16% 12.93% 14.09% 14.99% 15.21% 17.23% 17.45% 17.34% 16.94%
Note: All resale values are calculated using the following year Proposition 13 expense value as shown on the Schedule of Prospective Cash Flow Report.
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YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
FOR THE YEARS ENDING JUL-2018 JUL-2019 JUL-2020 JUL-2021 JUL-2022 JUL-2023 JUL-2024 JUL-2025 JUL-2026 JUL-2027
Resale Amount
Gross Proceeds from Sale $35,051,507 $35,037,693 $34,374,493 $35,346,613 $36,330,667 $36,994,213 $41,325,187 $42,324,120 $43,280,627 $43,752,427
Commissions & Adjustments (525,773) (525,565) (515,617) (530,199) (544,960) (554,913) (619,878) (634,862) (649,209) (656,286)
Net Proceeds From Sale 34,525,734 34,512,128 33,858,876 34,816,414 35,785,707 36,439,300 40,705,309 41,689,258 42,631,418 43,096,141
Outstanding Debt Retirement
Total Principal Balances (21,835,745) (21,333,820) (20,809,176) (20,260,785) (19,687,572) (27,009,783) (26,600,438) (26,170,151) (25,717,851) (25,242,409)
Net Resale Proceeds After Debt $12,689,989 $13,178,308 $13,049,700 $14,555,629 $16,098,135 $9,429,517 $14,104,871 $15,519,107 $16,913,567 $17,853,732
Unleveraged Annual IRR 8.62% 8.23% 7.50% 8.02% 8.48% 8.66% 9.49% 9.58% 9.53% 9.36%
Leveraged Annual IRR 16.78% 15.16% 12.93% 14.09% 14.99% 15.21% 17.23% 17.45% 17.34% 16.94%
Note: All resale values are calculated using the following year Proposition 13 expense value as shown on the Schedule of Prospective Cash Flow Report.
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Presentation Rent Roll & Current Term Tenant Summary As of Aug-2017
TENANT NAMETYPE & SUITE NUMBERLEASE DATES & TERM
SQFTBLDG
SHARE
RATE & AMOUNTPER YEAR
PER MONTHCHANGES
ON
CHANGES
TO RECOVER METHOD
ASSUMPTION ABOUTSUBSEQUENT TERMS
FOR THIS TENANT NOTES
1 Educational Credit Mgmt Corp $17.40 Jan-2018 $1.60 ECMC - 2016 Base Year with Prop 13 protection
MarketSee assumption:
MLA1
Analysis ignores $0.83/sf/mo rent reduction received through 12/31/17 in lieu of TI allowance. Seller will provide Buyer with purchase price credit in the amount of the reduced rent remaining post-closing. Tenant has one-time right to terminate on or after 12/31/21 with 12 months prior notice and payment of termination penalty (Para. 2.4 of First Amendment to Lease).
Building 10370 84,998 $1,478,965 Jul-2018 $1.65
Jan-2011 to Dec-2023 48.72% $1.45 Jul-2019 $1.70
156 Months $123,247 Jul-2020 $1.75
Jul-2021 $1.80
Jul-2022 $1.85
Jul-2023 $1.90
2 Sutter Connect LLC $22.20 - - 2015 BY VacateSee assumption:
MLA1
Analysis assumes Tenant does not exercise its 3-year renewal option.
Building 10370 27,242 $604,772
Jan-2011 to Dec-2017 15.62% $1.85
84 Months $50,398
3 Xerox/ACS State & Local Solutions $24.00 Jun-2017 $2.06 Xerox/ACS - 2011 Base Year, but increases in controllable expenses capped at 4%/yr
OptionSee assumption:
MLA1
2-year option must be exercised by 9/30/17; assumed exercised.
Building 10390 19,103 $458,472
Jun-2011 to Jun-2018 10.95% $2.00
85 Months $38,206
3 Xerox/ACS State & Local Solutions $25.44 Jul-2019 $2.19 Xerox/ACS - same as above
MarketSee assumption:
MLA1 Building 10390 19,103 $485,980
Jul-2018 to Jun-2020 10.95% $2.12
24 Months $40,498
4 Cal. Office Emergency Srvcs (1) $29.34 Jan-2018 $2.50 Full Service: No reimbursement
Market See
assumption:MLA1
State has option to terminate this lease at any time on or after 12/31/19, but this seems unlikely given its specialized use and financial commitment to the space.
Building 10390 43,102 $1,264,451 Jan-2019 $2.55
Jan-2012 to Dec-2026 24.71% $2.44 Jan-2020 $2.29
180 Months $105,371 Jan-2022 $2.34
Jan-2024 $2.39
Total Occupied SqFt 174,445 (1)
(1) Square footage shown for Cal. Office of Emergency Services is “usable.”
RENT ROLL
You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
| 10370 & 10390 PETER A. McCUEN BOULEVARD28
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
FOR THE YEARS ENDING JUL-2018 JUL-2019 JUL-2020 JUL-2021 JUL-2022 JUL-2023 JUL-2024 JUL-2025 JUL-2026 JUL-2027
Minimum Debt Service
Interest Payments $980,029 $958,294 $935,576 $911,829 $887,007 $505,513
Principal Payments 480,191 501,926 524,644 548,391 573,213 346,281
Total Minimum Debt Service 1,460,220 1,460,220 1,460,220 1,460,220 1,460,220 851,794
Reductions & Retirement
Principal Balloon or Call 19,341,291
Total Reductions & Retirement 19,341,291
Total Cash Flow Paid To Lender $1,460,220 $1,460,220 $1,460,220 $1,460,220 $1,460,220 $20,193,085
Principal Balance Summary
Beginning Principal Balance $22,315,936 $21,835,746 $21,333,820 $20,809,176 $20,260,785 $19,687,572
Periodic Principal Reductions (480,191) (501,926) (524,644) (548,391) (573,213) (346,281)
Principal Balloon Payments (19,341,291)
Ending Principal Balance $21,835,745 $21,333,820 $20,809,176 $20,260,785 $19,687,572
Interest Rates
Interest Rate on Principal 4.44% 4.44% 4.44% 4.44% 4.44% 2.59%
Cash Flow Coverage Ratios
Cash to Total Interest Charged 239.87% 274.33% 280.88% 282.74% 298.87% 539.02%
Cash to Minimum Debt Service 160.99% 180.03% 179.96% 176.55% 181.55% 319.89%
Loan To Value Ratios
Loan to Purchase Price 67.42% 65.97% 64.45% 62.87% 61.21% 59.48%
Loan to Capitalized Value 71.20% 62.30% 60.89% 60.54% 57.32% 54.19%
Loan to Lowest Present Value 70.94% 69.42% 67.82% 66.15% 64.41% 62.59%
Loan to Highest Present Value 64.06% 62.68% 61.24% 59.73% 58.16% 56.51%
Lenders Yields (IRR)
Base Yield to Maturity 4.44%
INDIVIDUAL LOAN AND DEBT SERVICE SUMMARY
Loan Number 1 - Existing Loan
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YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
FOR THE YEARS ENDING JUL-2018 JUL-2019 JUL-2020 JUL-2021 JUL-2022 JUL-2023 JUL-2024 JUL-2025 JUL-2026 JUL-2027
Minimum Debt Service
Interest Payments $564,767 $1,341,193 $1,320,250 $1,298,236 $1,275,095
Principal Payments 164,623 409,344 430,287 452,301 475,442
Total Minimum Debt Service 729,390 1,750,537 1,750,537 1,750,537 1,750,537
Fees & Contingencies
Origination Points & Fees 271,744
Total Fees & Contingencies 271,744
Reductions & Retirement
Principal Balloon or Call 25,242,409
Total Reductions & Retirement 25,242,409
Total Cash Flow Paid To Lender $1,001,134 $1,750,537 $1,750,537 $1,750,537 $26,992,946
Principal Balance Summary
Beginning Principal Balance $27,174,406 $27,009,782 $26,600,438 $26,170,152 $25,717,851
Periodic Principal Reductions (164,623) (409,344) (430,287) (452,301) (475,442)
Principal Balloon Payments (25,242,409)
Ending Principal Balance $27,009,783 $26,600,438 $26,170,151 $25,717,851
Interest Rates
Interest Rate on Principal 2.08% 5.00% 5.00% 5.00% 5.00%
Cash Flow Coverage Ratios
Cash to Total Interest Charged 482.46% 206.87% 234.76% 244.51% 254.57%
Cash to Minimum Debt Service 373.57% 158.50% 177.05% 181.33% 185.43%
Loan To Value Ratios
Loan to Purchase Price 82.10% 81.60% 80.36% 79.06% 77.70%
Loan to Capitalized Value 74.80% 73.01% 64.37% 61.83% 59.42%
Loan to Lowest Present Value 86.39% 85.87% 84.56% 83.20% 81.76%
Loan to Highest Present Value 78.00% 77.53% 76.36% 75.12% 73.82%
Lenders Yields (IRR)
Base Yield to Maturity 5.00%
Including Fees & Penalties 5.26%
Loan Number 2 - Refinance
INDIVIDUAL LOAN AND DEBT SERVICE SUMMARY
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TENANT PROFILES
EDUCATIONAL CREDIT MANAGEMENT CORPORATIONwww.ecmc.org
10370 Peter A. McCuen Blvd Square Footage: 84,998 Lease Expiration: Dec-23
Established in 1994, ECMC is a non-profit company that provides support for the administration of the Federal Family Education Loan (FFEL) Program as a student loan guaranty agency. ECMC also sponsors programs to help students and families plan and pay for college. In 2010, ECMC assumed responsibility for the FFEL Program guaranty portfolio. Accordingly, federal student loans guaranteed by the California Student Aid Commission and serviced by EdFund were transferred to ECMC.
SUTTER CONNECT (DBA SUTTER PHYSICIAN SERVICES)www.sutterphysicianservices.org
10370 Peter A. McCuen Blvd Square Footage: 27,242 Lease Expiration: Dec-17
Established in 1999 as a Sutter Health affiliate, Sutter Physician Services provides medical billing services to physician groups, hospitals, and integrated delivery networks across the nation. More specifically, the company provides revenue cycle, patient access, and accountable care solutions to health care provider and payer organizations.
XEROX STATE & LOCAL SOLUTIONS, INC.www.xerox.com
10390 Peter A. McCuen BlvdSquare Footage: 19,103Lease Expiration: Jun-18
Xerox State & Local Solutions, Inc. provides administrative and healthcare services. The Company’s services include solutions for human services such as eligibility determination and case management, electronic payment card services, customer care, and child support services; solutions for transportation including, electronic toll collection, parking management, weigh-in-motion, and credential verification and public safety and justice solutions. The Company also offers healthcare solutions including health program administration and pharmacy benefits management. The Company was formerly known as ACS State & Local Solutions, Inc. and changed its name to Xerox State & Local Solutions, Inc. in April, 2012.
Lease Guarantor: Affiliated Computer Services Inc. (which merged with Xerox in 2010)
STATE OF CALIFORNIA - GOVERNOR’S OFFICE OF EMERGENCY SERVICESwww.caloes.ca.gov
10390 Peter A. McCuen Blvd Square Footage: 43,102 (usable) Lease Expiration: Dec-26
The Governor’s Office of Emergency Services administers numerous programs to address threats and risks to California’s people, property, economy and environment. The office coordinates overall state agency and local government response to disasters. This office has been renamed a number of times throughout its over 70-year history. Most recently, from 2009 until 2013, the office was known as the California Emergency Management Agency.
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10370 & 10390 PETER A. McCUEN BOULEVARD | 33
Area Overview
| 10370 & 10390 PETER A. McCUEN BOULEVARD34
SACRAMENTO MARKET
Sacramento, with an estimated population of 2,207,469 residents, is the cultural and economic center of the
Sacramento Metropolitan Area (MSA) which includes seven counties. Its metropolitan area is the 4th largest in
California after the Greater Los Angeles, San Francisco Bay, and the San Diego Metropolitan Areas and the 25th
largest in the United States. Sacramento benefits from a strong government employment base, a deep and well-
educated labor pool and an affordable cost of living. Located approximately 85 miles northeast of San Francisco at
the junction of Interstate 5 and 80, Sacramento has convenient access to airports, rail and a deep-water port.
Sacramento boasts an increasingly diversified economy with traditional and innovative economic activity that provides
stability and growth to the market. The Region is quickly developing into a world-class technology community with
specific competitive advantages in renewable energy, health care, biotechnology and agricultural and food sciences.
SACRAMENTO REGION’S COMPETITIVE ADVANTAGES
• California’s Policy HQ – Home base for federal and state agencies and departments as well as executive
and legislative arms of state government.
• Affordability – The most affordable of California’s major metro areas, from business costs to costs of living.
• Talented Workforce – Employers can draw from world-class universities, including University of California
at Davis and California State University, Sacramento.
• Strong Education – UC Davis, Sacramento State and several community colleges provide over 150,000
students with a diverse, world-class education.
• Optimal Logistics Location – Strategic location at the intersection of I-5 and I-80 with a strong air, roadway,
rail, and waterway transportation system.
TOP EMPLOYERS
Some of the top public and private employers in the Sacramento area are tenants at the Mather Portfolio buildings.
PUBLIC PRIVATE
Federal....................... 13,732
State ........................ 115,362
Local ........................ 102,882
University of California, Davis ........................................ 12,639
Sutter Health Sacramento Region ................................... 11,242
UC Davis Health System .................................................. 9,905
Kaiser Permanente .......................................................... 9,247
Intel Corp. ...................................................................... 6,000
Raley’s Inc. ..................................................................... 5,507
Dignity Health................................................................. 5,212
California State University, Sacramento ............................ 2,999
Source: Sacramento Business Journal, 2015 Book of Lists
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MAJOR REDEVELOPMENT ACTIVITY
• Downtown Arena – The new downtown entertainment and sports arena, Golden 1 Center, has created a swell
of activity and attracted the interest of investors and developers not previously in this market. The Golden
1 Center, built at a cost of $588 million and home to the NBA’s Sacramento Kings, is an indoor-outdoor
multi-use facility that accommodates sporting and entertainment events such as professional and collegiate
sports, concerts, ice shows, indoor rodeo, trade shows, large graduations, family shows, and other indoor
entertainment. The Center will host approximately 240 events per year. In addition, the partnership that
owns the Sacramento Kings is constructing a mixed-use development next door dubbed DOCO (Downtown
Commons) that includes a new 250-room Kimpton hotel, 475,000 square feet of office space, 350,000
square feet of retail and up to 500,000 square feet for residential units.
• Sacramento Railyards – This 244-acre former Union Pacific rail yard is the largest infill project in the country
and is adjacent to Sacramento’s downtown. Currently undergoing infrastructure improvements, the Railyards
will essentially double the size of downtown and be a mixed-use hub for entertainment, retail, housing, office,
theaters, parks, museums, and hotels. Kaiser Permanente recently purchased 18 acres in the northwest
corner of the Railyards near Interstate 5 for a new hospital campus.
These two major developments in downtown Sacramento will increase office rents and parking rates which will
motivate tenants to seek lower cost alternatives such as the Highway 50 submarket.
Rendering courtesy SacramentoESC.com
A mixed-use development next door to the Golden 1 Center will include a hotel, office, retail, and residential space.
| 10370 & 10390 PETER A. McCUEN BOULEVARD36
HIGHWAY 50 CORRIDOR
The McCuen Property is situated within the Highway 50 Corridor submarket which consists of 11.4 million square feet.
The Highway 50 Corridor generally extends from Howe Avenue on the western end to Hazel Avenue on the eastern
end. The largest submarket in the Sacramento MSA, the Highway 50 Corridor is an ideal location for tenants seeking
a lower-cost alternative to the CBD, ease of freeway access, abundant free parking, proximity to public transportation
and diverse housing alternatives for employees and executives. Large floor plate users find the submarket attractive
due to the many options available.
NMAP NOT TO SCALE
Highway 50 Corridor
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MATHER FIELD
Existing Buildings
Future Buildings
Church
To Independence Homes,Golf Course and Regional Park
ComstockJohnson
Architects
1-28-13Map not to scale
EMD
BloodSource
MatherSports
Complex
MatherSports
Complex
VA Medical Center
General AviationAircraft ApronCargo Aircraft
Apron
OLD PLACERVILLE ROAD
MACREADY WAY
MATHER BLVD
MATHER BLVD
NORDEN AVE NORDEN AVE
MATHER BLVD
VO
NK
ARM
AN
ST
WH
ITEH
EAD
ST
SCOESCOE
PrecisionFlight
vARMSTRONG AVE
PETER A McCUEN BLVD
PETER A McCUEN BLVD
MATHER FIELD ROAD
ToUS HWY 50
V
INTERNATIONAL DRIVE To Zinfandel Drive
V
NEELY
AVE
BLE
CK
ELY
ST
FEM
OY
ER S
TFU
TURE
DEB
ELLE
VU
E S
T
SCHRIEVER AV
BloodSourceLaboratories
CAL EMA
SCHRIEVER AV
MatherCommunity
CampusMather
CommunityCampus
V
ECMC/Sutter
CALEMA/ACS
Sac Metro Fire
Health Club
SutterConnect
SutterConnect
Sutter
VA MedicalCenter
ContractorsLicensing
School
Cal ArmyNat'l Guard
Rex Moore
50,000
100,
000+
/-
70,000+/-
70,0
00+/
-
30,000
Sutter
Nor CalSheet Metal
For over 70 years, Mather Air Force Base played
a significant role in the defense of the nation as
well as the economic base of the Sacramento
region. After the air base was closed in 1993,
Sacramento County initiated a comprehensive
reuse planning effort and in May 1997 the
Sacramento County Mather Field Specific
Plan was established to set the guidelines for
conversion of the base from military to private
uses. Consisting of approximately 5,716 acres,
the Mather Field complex has been transformed
into mixed commercial, industrial, recreation
and residential land uses. Government-
related tenants occupy a large percentage of
the office space in Mather Field, creating a
campus environment where agencies and their
employees can easily connect. Below is a site
map for that portion of Mather Field north of
the airstrip.
McCuen Property
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10370 & 10390 Peter A. McCuen Blvd.
Downtown Sacramento
PETER A M
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10370 & 10390 PETER A. McCUEN BOULEVARD | 39
Downtown Sacramento
FOLSOM BLVD
50
MATHER FIELD RD
Market Trends
| 10370 & 10390 PETER A. McCUEN BOULEVARD40
SACRAMENTO MARKET
Sacramento’s office market recorded 882,885 square feet of positive absorption in 2016 and ended Q1 2017
with 36,529 square feet more. 2016 represents the 5th straight year of positive net absorption. The vacancy rate
decreased in Q1 2017 to 14.5%, down ten basis points from the previous quarter. This represents the lowest
vacancy rate in the market since Q4 2007. The average asking lease rate sits at $1.79 full service gross, with
Class A asking rents increasing to $2.14.
The continued tightening of Sacramento’s Central Business District, with its higher lease rates, costly and limited
parking options, and lack of available office space has prompted more leasing activity in the suburbs. The positive
absorption seen most recently in Sacramento is due largely to healthy suburban leasing activity. While market
asking rates have stabilized, achieved rents are increasing throughout the market. While nationally it is expected
that overbuilding and softening tenant requirements will result in an increase in vacancy in the near-term, the
Sacramento market will likely be protected from this due to a lack of new office construction.
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The McCuen Property is located
within Mather Field, an area
within the Highway 50 submarket.
There are approximately 27 office
buildings in Mather Field, totaling
approximately 1,205,000 square
feet. Current office vacancy in
Mather Field is 3.52% which reflects
the desirability of the location.
Vacancy of Class A office properties
in the Highway 50 submarket as
of Q1 2017 is 10.7%, below the
market wide vacancy rate for Class
A of 11.5%. Average asking rents
HIGHWAY 50 SUBMARKET
VACANCY/RENTAL RATE ANALYSIS
HISTORICAL NET ABSORPTION - HWY 50 CORRIDOR OFFICE SUBMARKET
Source: CBRE Research, Q1 2017
NO NEW CONSTRUCTION
No Class A buildings have been delivered to the
Highway 50 Submarket since 2012 and none are
under construction in the submarket at this time. It
is reported that development is set to begin this
summer on a 300,000 square foot California Military
Department headquarters at 10100 Bear Hollow Drive,
which is two blocks east of 10590 Armstrong Avenue.
This 30-acre complex would house various agencies
within the Military Department, including the California
Air National Guard, California State Military Reserve
and California National Guard, the last of which would
relocate from Bradshaw Business Park.
INSTITUTIONAL OWNERSHIP
The enduring strength of the Highway 50 Submarket is
evidenced by the high number of institutional investors
who own office properties in this area, including:
FUTURE HOUSING DEVELOPMENT
Rancho Cordova is one of Sacramento’s largest bedroom communities with over 65,000 residents and plans are in
progress to make it larger. Residential developers are planning to build 3,000 homes on 900 acres south of Mather
Airport, which will include commercial lots, greenways and parks, and a sporting complex. These developments
include projects by Richmond American Homes, Woodside Homes, and Lennar.
• KBS
• Griffin Capital
• UBS
• Deutsche Asset & Wealth Management
• Panattoni
• Eaton Vance
• CalPERS
• Divco West
• Hines
HIGHWAY 50 CORRIDOR OFFICE SUBMARKETHistorical Net Absorption
108,810
(73,303)
(183,004)
(426,586)
(6,466)
(355,534)
178,622 246,632
52,551
435,809
(173,335)
2,137
(500,000)
(400,000)
(300,000)
(200,000)
(100,000)
0
100,000
200,000
300,000
400,000
500,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD2017
Source: CBRE Research, Q1 2017.
in Highway 50 for Class A properties are at $1.74 full service gross and have held steady for the past several years.
Net absorption in Highway 50 for all classes in 2016 was negative 173,335 square feet, reflecting Bank of America’s
closure of a 194,0000 square foot office. By contrast, 2015 saw 435,809 square feet of positive absorption in this
submarket.
| 10370 & 10390 PETER A. McCUEN BOULEVARD42
LEASE COMPS
2882 PROSPECT PARK DR RANCHO CORDOVA
10391 PETER A. MCCUEN BLVD MATHER
3100 ZINFANDEL DR RANCHO CORDOVA
10940 WHITE ROCK RD RANCHO CORDOVA
10834 INTERNATIONAL DR RANCHO CORDOVA
YEAR BUILT 1999 2009 1990 2002 1998
TENANT VITEK Real Estate Kleinfelder, Inc. Sutter Health Farmers Insurance Westin Engineering AMEC Foster Wheeler Blue Shield
SF 19,716 17,791 110,960 12,129 3,912 12,811 50,000
MONTHLY RATE $1.85/SF $2.02/SF $1.39/SF $1.90/SF $2.10/SF $1.80/SF $1.16/SF
LEASE TYPE FSG FSG NNN FSG FSG FSG NNN
START DATE Apr-17 Sep-15 Mar-17 Jul-16 Nov-15 Jun-16 Jan-16
TERM (YRS) 7 7 8 5 4 5 10
NEW OR RENEWAL New New Renewal New New New New
2
1 2
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2882 PROSPECT PARK DR RANCHO CORDOVA
10391 PETER A. MCCUEN BLVD MATHER
3100 ZINFANDEL DR RANCHO CORDOVA
10940 WHITE ROCK RD RANCHO CORDOVA
10834 INTERNATIONAL DR RANCHO CORDOVA
YEAR BUILT 1999 2009 1990 2002 1998
TENANT VITEK Real Estate Kleinfelder, Inc. Sutter Health Farmers Insurance Westin Engineering AMEC Foster Wheeler Blue Shield
SF 19,716 17,791 110,960 12,129 3,912 12,811 50,000
MONTHLY RATE $1.85/SF $2.02/SF $1.39/SF $1.90/SF $2.10/SF $1.80/SF $1.16/SF
LEASE TYPE FSG FSG NNN FSG FSG FSG NNN
START DATE Apr-17 Sep-15 Mar-17 Jul-16 Nov-15 Jun-16 Jan-16
TERM (YRS) 7 7 8 5 4 5 10
NEW OR RENEWAL New New Renewal New New New New
1
3
4
5
NMAP NOT TO SCALE
3 4 5
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SALE COMPS
10391 PETER A. MCCUEN BLVD. MATHER
2241 & 2251 HARVARD ST. SACRAMENTO
3300 ZINFANDEL & 10834 INTERNATIONAL DR.
RANCHO CORDOVA2365 IRON POINT RD.
FOLSOM11185 INTERNATIONAL DR.
RANCHO CORDOVA11150 INTERNATIONAL DR.
RANCHO CORDOVA10949 N. MATHER BLVD.
RANCHO CORDOVA
DATE SOLD 03/15/17 08/24/16 08/16/16 10/13/15 04/27/15 04/10/15 10/28/13
SALE TYPE Investment Investment Investment Investment Investment Investment Investment
PURCHASER Rich Uncles REIT Basin Street Properties Equity Capital Management Swift Real Estate Oddo Family Trust Rohit Kumar GPT Properties, Massachusetts
YEAR BUILT 2009 1987-88 1996 2003 1999 1999 2012
OCC. 100% 91% 100% 99% 100% 100% 100%
PRICE $27,000,000 $38,600,000 $39,725,000 $28,100,000 $13,150,000 $16,500,000 $21,190,000
CAP RATE 6.87% 7.75% 6.95% 7.80% 8.11% 7.80% 8.00%
SIZE 110,960 283,487 175,000 148,534 71,817 90,111 93,807
PRICE/SF $243 $136 $227 $189 $183 $183 $226
RELATIVE LOCATION Similar Similar Similar Superior Similar Similar Similar
COMMENTSLeased until July 2025 to
Sutter HealthMulti-tenant property
Leased to Blue Shield until January 2026
Freeway-fronting, multi-tenant property; 25% of space
expires within first 12 months
Leased to Delta Dental until 2020
Leased to the State; new 4+4 extension term
Leased to Cal. Dep’t. of Consumer Affairs through
June 2027
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MA
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10370 & 10390 PETER A. McCUEN BOULEVARD | 45
10391 PETER A. MCCUEN BLVD. MATHER
2241 & 2251 HARVARD ST. SACRAMENTO
3300 ZINFANDEL & 10834 INTERNATIONAL DR.
RANCHO CORDOVA2365 IRON POINT RD.
FOLSOM11185 INTERNATIONAL DR.
RANCHO CORDOVA11150 INTERNATIONAL DR.
RANCHO CORDOVA10949 N. MATHER BLVD.
RANCHO CORDOVA
DATE SOLD 03/15/17 08/24/16 08/16/16 10/13/15 04/27/15 04/10/15 10/28/13
SALE TYPE Investment Investment Investment Investment Investment Investment Investment
PURCHASER Rich Uncles REIT Basin Street Properties Equity Capital Management Swift Real Estate Oddo Family Trust Rohit Kumar GPT Properties, Massachusetts
YEAR BUILT 2009 1987-88 1996 2003 1999 1999 2012
OCC. 100% 91% 100% 99% 100% 100% 100%
PRICE $27,000,000 $38,600,000 $39,725,000 $28,100,000 $13,150,000 $16,500,000 $21,190,000
CAP RATE 6.87% 7.75% 6.95% 7.80% 8.11% 7.80% 8.00%
SIZE 110,960 283,487 175,000 148,534 71,817 90,111 93,807
PRICE/SF $243 $136 $227 $189 $183 $183 $226
RELATIVE LOCATION Similar Similar Similar Superior Similar Similar Similar
COMMENTSLeased until July 2025 to
Sutter HealthMulti-tenant property
Leased to Blue Shield until January 2026
Freeway-fronting, multi-tenant property; 25% of space
expires within first 12 months
Leased to Delta Dental until 2020
Leased to the State; new 4+4 extension term
Leased to Cal. Dep’t. of Consumer Affairs through
June 2027
NMAP NOT TO SCALE
1
3
4
56
7
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10370 & 10390 PETER A. McCUEN BOULEVARD | 47
AFFILIATED BUSINESS DISCLOSURE
CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
CONFIDENTIALITY AGREEMENT
Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
DISCLAIMER
This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.
The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.
COPYRIGHT NOTICE
© 2017 CBRE, Inc. All Rights Reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. 20919173-203958
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INVESTMENT CONTACTS
RANDY GETZExecutive Vice PresidentLic. 00828903+1 916 446 [email protected]
MATT POSTSenior AssociateLic. 01899707+1 916 446 [email protected]
STUART WRIGHTSenior AssociateLic. 01451087+1 916 446 [email protected]
CBRE, Inc.500 Capitol MallSuite 2400Sacramento, CA 95814
10370 & 10390Peter A. McCuen Boulevard
SACRAMENTO, CALIFORNIA