SVN The Kase Group
Home Depot Net Leased Offering | Santa Clara, CA (Bay Area) $26,500,000 | 5.50% CAP
Actual Site Photo
Offering Highlights Extremely Rare Bay Area/Silicon Valley Big Box Opportunity Tenant has Expressed Interest in Long Term Lease Extension - Call for Details Under Market Rent - Tenant Only Pays $1.25/sf/month Corporate Lease - S&P Rated A Investment Grade Credit - NYSE: HD Irreplaceable Real Estate - Highly Desirable Location Located Near the New Levi’s Stadium, Home to the San Francisco 49ers Asset is in Close Proximity to the San Jose International Airport High Barriers to Entry - Difficult for Tenant to Relocate Largest Home Improvement Retailer in the United States
www.TheKaseGroup.com Jacob Abusharkh Managing Director 415.269.2474
[email protected] BRE#01385529
Home Depot Net Leased Offering SVN The Kase Group
Disclaimer | Confidentiality The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of Sperry Van Ness or Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Property Owner (“Owner”) in connection with the sale of the Property is the Sperry Van Ness Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to Sperry Van Ness. Neither the Sperry Van Ness Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property. This Offering Brochure may include certain statements and estimates by Sperry Van Ness with respect to the projected future performance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the Sperry Van Ness Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final,
fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the Sperry Van Ness Advisor, nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Investment Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the Sperry Van Ness Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering SVN The Kase Group
CONTENTS PROPERTY OVERVIEW Offering Highlights Executive Summary Tenant Summary FINANCIAL OVERVIEW Financial Summary LOCATION OVERVIEW Location Maps Aerial Photo Property Photos DEMOGRAPHICS Demographics Report Demographics Map
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering SVN The Kase Group
PROPERTY OVERVIEW Offering Highlights Executive Summary Tenant Summary
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering Offering Highlights
Extremely Rare Bay Area/Silicon Valley Big Box Opportunity Tenant has Expressed Interest in Long Term Lease Extension - Call for Details Under Market Rent - Tenant Only Pays $1.25/sf/month Corporate Lease - S&P Rated A Investment Grade Credit - NYSE: HD Irreplaceable Real Estate - Highly Desirable Location Located Near the New Levi’s Stadium, Home to the San Francisco 49ers Asset is in Close Proximity to the San Jose International Airport High Barriers to Entry - Difficult for Tenant to Relocate Largest Home Improvement Retailer in the United States
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering Executive Summary
2435 Lafayette Street | Santa Clara, CA
Investment Overview Sale Price: $26,500,000 CAP Rate: 5.50% Net Operating Income: $1,457,808 Building Size: 95,700 SF Lot Size: 6.93 Acres Year Built: 1995 Market: Bay Area
Property This is an extremely rare Bay Area opportunity unlike anything else available in the market. The offering is the 100% fee simple interest in a modified NNN leased Home Depot. There are three remaining 5 year options to renew. There and scheduled 10% increases every 5 years at each renewal option. The asset is located in Santa Clara, not far from the new Levi’ s Stadium, home to the San Francisco 49ers. It is also very close to the San Jose Airport and Santa Clara University. Home Depot has expressed the desire to extend their lease long term. Please call for details.
Location Santa Clara is a city in Santa Clara County, California, named after the Spanish mission that was established there in 1777. The city’s population was 116,468 at the 2010 United States Census, making it the ninth-most populous city in the San Francisco Bay Area. Located 45 miles southeast of San Francisco, the city was founded in 1777 and incorporated in 1852. The city is the site of the eighth of 21 California missions, Mission Santa Clara de Asís, and was named after the mission. The Mission and Mission Gardens are located on the grounds of Santa Clara University.
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering Tenant Summary
Corporate Information
Tenant Overview
Ownership: Public
The Home Depot is an American retailer of home improvement and construction products and services.
Traded As: NYSE: HD Headquarters: Atlanta, GA Founded: 1978 Revenue: $78+ Billion (2014) Website: www.HomeDepot.com
Tenant Highlights Largest Home Improvement Retailers in the U.S. Over 2,248 Locations Nationwide Approximately $78 Billion in Revenue (2014)
It operates many big-box format stores across the United States (including all 50 U.S. states, the District of Columbia, Puerto Rico, the United States Virgin Islands and Guam), all ten provinces of Canada, as well as Mexico. The company is headquartered at the Atlanta Store Support Center in Cobb County, Georgia, in Greater Atlanta. In terms of overall revenue reported to the U.S. Securities and Exchange Commission, the company is the largest home improvement retailer in the United States, ahead of rival Lowe’s. The store operates out of large warehouse-style buildings averaging 105,000 square feet with megastores operating in larger facilities (the company’s largest store, located in Union, New Jersey is 225,000 square feet). The Home Depot was founded in 1978 by Bernard Marcus, Arthur Blank, Ron Brill, and Pat Farrah. The Home Depot’s proposition was to build home-improvement superstores, larger than any of their competitors’ facilities. Investment banker Ken Langone helped Marcus and Blank to secure the necessary capital. In 1979, the first two stores, built in spaces leased from J. C. Penney that were originally Treasure Island “hypermarket” (discount department and grocery) stores, opened in metro Atlanta (in Doraville and Decatur both near I-285) on June 21. Two more opened not long after, and all four shared the space under the “squiggly” zig-zag roof with Zayre on its right side. It became a publicly traded company on April 19, 1984.
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering SVN The Kase Group
FINANCIAL OVERVIEW Financial Summary
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering Financial Summary
2435 Lafayette Street | Santa Clara, CA
$26,500,000 | 5.50% CAP CAP Rate: 5.50% Building SF: 95,700 Lot Size: 6.93 Acres Year Built: 1995 Type of Ownership: Fee Simple
Tenant Name
GLA
Lease Begin
Lease End
Annual Rent
Increases
Options
Home Depot
95,700 SF
5/1/2015
4/20/2020
$1,457,808
Rent Increases
Tenant has
10% every 5
four 5
years at
year options
each option
to renew
Operating Summary
2015
Option 2
Option 3
Option 4
Net Operating Income
$1,457,808
$1,603,588
$1,763,946
$1,940,340
CAP Rate
5.50%
6.05%
6.66%
7.32%
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering SVN The Kase Group
LOCATION OVERVIEW Location Maps Aerial Photo Property Photos
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering 2. LOCATION OVERVIEW
Location Maps
HOME DEPOT NNN LEASED OFFERING
All Sperry Van Ness® Offices Independently Owned & Operated.
www.TheKaseGroup.com
Location Maps
www.TheKaseGroup.com
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
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Home Depot Net Leased Offering Aerial Photo
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering Property Photos
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
Home Depot Net Leased Offering SVN The Kase Group
DEMOGRAPHICS Demographics Analysis Demographics Map
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
4. DEMOGRAPHICS
HOME DEPOT NNN LEASED OFFERING
Demographics Report
Home Depot Net Leased Offering
Demographics Analysis For Sale | $29,156,160
2435 Lafayette Street | Santa Clara, CA 95050 1 Mile Total Population Total Number of Households Total Number of Persons per Household Average House Value Average Household Income
8,221
3 Miles
5 Miles
133,633
446,797
2,946
51,185
170,745
2.8
2.6
2.6
$531,644
$642,506
$614,152
$70,907
$100,097
$95,111
Median Age
30.8
34.7
34.7
Median Age - Male
29.4
34.4
34.2
Median Age - Female
32.9
35.1
35.4
3,857 46.9%
64,849 48.5%
203,532 45.6%
241 2.9%
3,671 2.7%
13,994 3.1%
2,317 28.2%
44,333 33.2%
148,568 33.3%
47 0.6%
644 0.5%
2,729 0.6%
73 0.9%
881 0.7%
3,765 0.8%
1,321 16.1%
12,940 9.7%
56,189 12.6%
2,606 31.7%
28,139 21.1%
113,597 25.4%
Total Population - White Total Percent - White Total Population - Black Total Percent - Black Total Population - Asian Total Percent - Asian Total Population - Hawaiian Total Percent - Hawaiian Total Population - Indian Total Percent - Indian Total Population - Other Total Percent - Other
Total Population - Hispanic Total Percent - Hispanic
* Demographic information provided by BuildOut, Inc.
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated.
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
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Home Depot Net Leased Offering 4. DEMOGRAPHICS
Demographics Map
HOME DEPOT NNN LEASED OFFERING
Demographics Map
Radius Map
2435 Lafayette Street | Santa Clara, CA 95050
1 Mile
3 Miles
5 Miles
Total Population
8,221
133,633
446,797
Total Number of Households
2,946
51,185
170,745
$70,907
$100,097
$95,111
30.8
34.7
34.7
Average Household Income Median Age
* Demographic information provided by BuildOut, LLC
www.TheKaseGroup.com
All Sperry Van Ness® Offices Independently Owned & Operated.
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.
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SVN The Kase Group PRESENTED BY
Jacob Abusharkh Managing Director 415.269.2474
[email protected] BRE#01385529
www.TheKaseGroup.com All Sperry Van Ness® Offices Independently Owned & Operated © 2013 All rights reserved
