Keegan & Coppin REAL ESTATE

KEEGAN & COPPIN COMPANY, INC. O N C O R I N T E R N AT I O N A L Commercial Real Estate Services

F or S ale NNN I nvestment AutoZone/Mattress Discounters

2510 Santa Rosa Ave Santa Rosa, CA County of Sonoma

10 mile

Population

101,216

188,625

298,885

Avg. HH Income

$65,011

$73,878

$78,029

28.4

33.3

36.0

Avg. Age

Baker Ave.

Target Costco Best Buy Sportmart Office Depot

d. Hill R

5 mile

p

Sebasto

Hearn Ave.

NORTH

uma

3 mile

ol Rd.

Petal

Demographics

12

12

Santa Rosa Ave.

Purchase Price: $5,254,000

. d St

r

t3 Wes

Dutton Ave.

●

101

Burbank Ave.

● Auto Zone: 8,016± sf - New 15 Year Lease with 15% Increase Every 5 Years ● Mattress Discounters: 5,000± sf - 5 year Renewal with 3% Increase Each Year ● 13,016± sf Freestanding Building ● 45,738± sf Lot (Zoned CG) ● Sonoma County Regional Retail Row ● 5% Cap Rate

SUBJECT

101

Cost Plus Toys ‘R’ Us Pier 1 Office Max

Vicinity Map

Contact:

Tom Laugero, Partner KEEGAN & COPPIN COMPANY, INC. ONCOR INTERNATIONAL

1355 North Dutton Avenue - Santa Rosa, CA 95401

(707) 528-1400  Fax (707) 524-1419

Email: [email protected]  www.KeeganCoppin.com  Lic #: 00473264 The above information, while not guaranteed, has been secured from sources we believe to be reliable. This is not an offer to sell or lease and is subject to change or withdrawal. An interested party should verify the status of the property and the information herein. Maps provided by Google Inc. & Microsoft Corp., respectively.

2510 Santa Rosa Avenue Santa Rosa, California County of Sonoma

Contact:

Thomas Laugero, Partner

KEEGAN & COPPIN COMPANY, INC. ONCOR INTERNATIONAL

Keegan & Coppin REAL ESTATE

1355 North Dutton Avenue Santa Rosa, CA 95401 (707) 528-1400  Fax (707) 524-1419  Lic #: 00473264 Email: [email protected] www.keegancoppin.com

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

KEEGAN & COPPIN COMPANY, INC. Keegan & Coppin REAL ESTATE

INCOME & EXPENSE SUMMARY PROPERTY TYPE: Lease Type: NNN

TENANT

AREA SF

RENT PSF

MONTHLY RENT

LEASE START

LEASE END

LEASE PERIOD

Autozone

8,016 sf

$1.60

$12,826.00

Nov. 2013

Nov. 2028

15 years (1)

T

T

Mattress Discounters

5,000 sf

$1.85

$9,250.00

Nov. 2013

Nov. 2018

5 years

T

T

TOTAL

13,016 sf

TAXES

INS.

COM. AREA

RENT ESC.

EXT. OPTION

T

15% each 5 yr.

2 – 5 yr. @ 10% increase

T

3% each year

1 – 5 yr. @ FMV

T=Tenant / O = Owner

(1)

$22,076

Autozone has a 1-time early termination right in year 10 with a 1 year notice & 1 year rent & NNN penalty (approx. $275,000).

Total Annual Scheduled Gross Income:

$ 264,912.00

Expenses: Taxes

$T

Insurance

$T

Utilities

$T

Maintenance

$T

Common Area

$T

Replacement Reserves (2% of Mattress Discounters)

Total Annual Projected Operating Expenses: Net Operating Income:

$2,222.00

$2,220.00 $262,692.00

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

2510 Santa Rosa Avenue Santa Rosa, California County of Sonoma

Contact:

Thomas Laugero, Partner

KEEGAN & COPPIN COMPANY, INC. ONCOR INTERNATIONAL

Keegan & Coppin REAL ESTATE

1355 North Dutton Avenue Santa Rosa, CA 95401 (707) 528-1400  Fax (707) 524-1419  Lic #: 00473264 Email: [email protected] www.keegancoppin.com

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

2510 Santa Rosa Avenue Santa Rosa, California County of Sonoma Property Summary

• • • • •

Purchase Price: $5,254,000 ($403.65 psf) Cap Rate: 5% Building Size: 13,016 sf Lot Size/Zoning: 45,738 sf zoned CG Tenants: Autozone: AS OF NOVEMBER 23, 2013, THE COMPANY OPERATED 5,210 STORES, including 4,843 stores in the United States, including Puerto Rico; 363 in Mexico; and 4 in Brazil. AutoZone, Inc. was founded in 1979 and is based in Memphis, Tennessee. Annual Revenue approximately $10 billion. AutoZone (NYSE: AZO) is the leading specialty retailer of automotive parts and accessories, with about a 19.6% market share. Standard & Poors rating of BBB. Mattress Discounters: A brand name by Sleep Train, a private company started in 1985 by Dale Carlson. Headquartered in Rocklin, California, Sleep Train operates about 300 retail mattress stores in California, Oregon, Washington, Nevada and Idaho under the brand names Sleep Train, Mattress Discounters, Got Sleep and Sleep County USA. • Building: 13,016 sf building on a 45,738 sf lot built in 1998 and is located at the signalized intersection of Hearn Ave. on/off ramp to Hwy 101 and Santa Rosa Ave. Hearn Ave. on/off ramp T’s into this property and 2510 Santa Rosa Ave. has all direction signalized access. • Area: 2510 Santa Rosa Ave. is located in the heart of Sonoma County Regional Retail Row of over 1,00,000 sf of high profile retailers. Area tenants to the North are: Costco, Target, Best Buy, Petsmart, Marshalls, Sport Authority, Trader Joe’s, Ulta, BevMo, Office Depot. South: Pier 1, Cost Plus, Toys R Us, REI, Bed Bath & Beyond, Michaels, Smart & Final Extra. • Rents: Autozone is a new lease starting November 1, 2013 and Mattress Discounters is an onsite relocation and new option (they’ve been at 2510 Santa Rosa Ave. for 10 years) starting November 1, 2013. Autozone rents at $1.60 psf NNN and Mattress Discounters rents at $1.85 psf NNN are substantially below market rents with immediate area rents ranging from $2.38 psf NNN to $2.79 psf NNN for larger spaces and shop rents from $2.75 psf to $4.00 psf NNN. The below market rents secure long term future tenancy and the aggressive rent increases offer the owner a hedge against inflation and a secure long term problem free investment.

Contact:

Thomas Laugero, Partner

KEEGAN & COPPIN COMPANY, INC. ONCOR INTERNATIONAL

Keegan & Coppin REAL ESTATE

1355 North Dutton Avenue Santa Rosa, CA 95401 (707) 528-1400  Fax (707) 524-1419  Lic #: 00473264 Email: [email protected] www.keegancoppin.com

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

2510 Santa Rosa Avenue Santa Rosa, California County of Sonoma Rent Comparison Locations

1

4

Location 1. 1950 Santa Rosa Ave., Santa Rosa 2. 2350 Santa Rosa Ave., Santa Rosa 3. 2350 Santa Rosa Ave., Santa Rosa 4. 2182 Santa Rosa Ave., Santa Rosa 5. 2725 Santa Rosa Ave., Santa Rosa Subject

3 2

5

Tenant

Size

Lease Date

Lease Rate

Petsmart

16,000

9/2011

$2.28 psf NNN

Sleep Number

4,250

8/2013

$2.50 psf NNN

Comcast/Xfinity

3,243

9/2013

$2.79 psf NNN

TBD

$4.00 psf NNN

TBD

$2.75 to $3.25 psf NNN

Nov 2013 Nov 2013

$1.60 psf NNN $1.85 psf NNN

Available - Negotiating Available – Negotiating AutoZone Mattress Discounters

1,400 sf to 3,645 sf 1,980 sf to 3,000 sf 8,016 sf 5,000 sf

Contact:

Thomas Laugero, Partner

KEEGAN & COPPIN COMPANY, INC. ONCOR INTERNATIONAL

Keegan & Coppin REAL ESTATE

1355 North Dutton Avenue Santa Rosa, CA 95401 (707) 528-1400  Fax (707) 524-1419  Lic #: 00473264 Email: [email protected] www.keegancoppin.com

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