SONOMA SQUARE SHOPPING CENTER 1460 East Cotati Avenue | Rohnert Park, CA 94928 Offering Memorandum
SONOMA SQUARE SHOPPING CENTER1460 East Cotati Avenue | Rohnert Park, CA 94928
Offering Memorandum
SONOMA SQUARE SHOPPING CENTER
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EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Reading International Inc 595
State Farm Insurance 517
Graton Resort & Casino 370
Walmart 350
Chick-Fil-A 254
Costco 250
Compumotor 200
Costco Wholesale Corporation 200
Rohnert Park Police Department 200
Cotati Pohnert Park Unif 198
Rieke Corporation 180
Sonoma State Enterprises Inc 167
DEMOGRAPHICS
1-Miles 2-Miles 3-Miles
2017 Estimate Pop 23,007 45,572 57,245
2010 Census Pop 22,122 43,929 55,213
2017 Estimate HH 7,679 17,129 21,546
2010 Census HH 7,344 16,442 20,710
Median HH Income $66,673 $64,111 $65,813
Per Capita Income $29,036 $30,780 $32,076
Average HH Income $80,893 $79,111 $82,971
VITAL DATA
YEAR 1 YEAR 2
Price $2,335,000 CAP Rate 4.56% 10.34%
Down Payment 100% / $2,335,000 Net Operating Income $106,557 $241,349
Loan Type All Cash Net Cash Flow After Debt Service 4.56% / $106,557 10.34% / $241,349
Gross Leasable Area (GLA) 14,549 SF Total Return 4.56% / $106,557 10.34% / $241,349
Price/SF $160.49
Current Occupancy 64.66%
Year Built / Renovated 1988
Lot Size 1.76 Acres
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SONOMA SQUARE SHOPPING CENTER
OFFERING SUMMARY
Tremendous upside in cash flow and asset value through lease-up.
Competing centers in the trade area enjoy occupancy rates of 90% to 100%.
Infill trade area.
Located less than one mile from Sonoma State University and Rancho Cotate High School.
Situated midway between the new Cotati SMART train depot and Sonoma State University.
INVESTMENT HIGHLIGHTS
Sonoma Square Shopping Center (the “Property”) is an attractive value-add opportunity offering an investor tremendous upside in both cash flow and asset value through
sound management, operations, and lease-up. The absentee owner of Sonoma Square Shopping Center is headquartered in Southern California. Demands in other areas
of its real estate portfolio over the past several years have been an obstacle to allocating the necessary managerial oversight and other resources to this asset. The result
is their decision to market and sell this multi-tenant retail investment. Competing unanchored and anchored retail centers within the trade area of Sonoma Square enjoy
occupancy levels of 90%-100%. Stabilizing the occupancy of the Property at market-correct rent levels will more than double the current net operating income, and
going-in capitalization rate. Stabilization costs are projected to be nominal to achieve the pro forma occupancy and income targets.
Located in the infill community of Rohnert Park in the San Francisco Bay area, Sonoma Square Shopping Center is situated between, and less than one mile from,
Sonoma State University, Rancho Cotate High School, and the new Cotati SMART train station. The zoning of Sonoma Square allows for a wide variety of uses, enhancing
the leaseability of the center. The Property has ample on-site parking, and ingress/egress is convenient for shoppers, with a dedicated left-turn lane eastbound on East
Cotati Avenue into the double-wide, curb-cut driveway. A second double-wide, curb-cut driveway allows ingress/egress to and from Christobal Way. Sonoma Square
Shopping Center’s primary frontage parallels East Cotati Avenue; the center is positioned on the soft corner of Snyder Lane and Maurice Avenue.
In summary, the fundamentals of Sonoma Square Shopping Center are in place and ready for an investor to take the Property to the next level of stabilization and
dramatically increase cash flows and asset value.
INVESTMENT OVERVIEW
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Value-Add
Retail Strip Center
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SONOMA SQUARE SHOPPING CENTER
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PROPERTY PHOTO
SONOMA SQUARE SHOPPING CENTER
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OFFERING SUMMARY
PROPERTY OVERVIEW
The single-story design is constructed of timber framing with stucco exterior walls. The roof is a flat built-up type
with cementitious tile mansard detail creating an appealing aesthetic. The mansard roof detail creates a covered
facade and walkway offering shoppers shelter from the elements. The rentable area is approximately 14,549
square feet, situated on a parcel of approximately 1.76 acres (76,665 square feet). The parking surface is asphalt
with multiple irrigated landscape islands and concrete curbing. Each retail space is served by separate-system
roof-mounted HVAC units.
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THE OFFERING
Property Sonoma Square Shopping Center
Price $2,335,000
Property Address 1460 E Cotati Ave, Rohnert Park, CA
Assessors Parcel Number 143-350-023
SITE DESCRIPTION
Year Built/Renovated 1988
Gross Leasable Area 14,549 SF
Ownership Fee Simple
Lot Size 1.76 acre(s)
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LOCATION OVERVIEWLOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMESONOMA SQUARE SHOPPING CENTER
PRICING AND VALUATION MATRIX
PROPERTY NAMESONOMA SQUARE SHOPPING CENTER
AERIAL
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SONOMA SQUARE SHOPPING CENTER
REGIONAL MAP
SONOMA SQUARE SHOPPING CENTER
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LOCAL MAP
SONOMA SQUARE SHOPPING CENTER
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AERIAL PHOTO
SONOMA SQUARE SHOPPING CENTER
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FINANCIAL ANALYSIS
SONOMA SQUARE SHOPPING CENTER
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TENANT SUMMARY
FINANCIAL ANALYSIS
SONOMA SQUARE SHOPPING CENTER
OPERATING STATEMENT
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FINANCIAL ANALYSIS
SONOMA SQUARE SHOPPING CENTER
PRICING DETAIL
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SONOMA SQUARE SHOPPING CENTER
SALES COMPARABLES MAP
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SONOMA SQUARE SHOPPING CENTER(SUBJECT)
West Plaza Shopping Center
10 Enterprise
The Crossroads Center
1630 Sebastopol Rd
University Square Shopping Center
1199 Yulupa Ave
SALES COMPARABLES
1
2
3
4
5
6
1
2
3
4
SONOMA SQUARE SHOPPING CENTER5
6
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PROPERTY NAMESONOMA SQUARE SHOPPING CENTER
SALES COMPARABLES
Avg. 6.86%
0.0
0.8
1.6
2.4
3.2
4.0
4.8
5.6
6.4
7.2
8.0
SonomaSquare
ShoppingCenter
West PlazaShopping
Center
10Enterprise
TheCrossroads
Center
1630Sebastopol
Rd
UniversitySquare
ShoppingCenter
1199Yulupa Ave
Average Cap Rate
Avg. $228.16
$0
$40
$80
$120
$160
$200
$240
$280
$320
$360
$400
SonomaSquare
ShoppingCenter
West PlazaShopping
Center
10Enterprise
TheCrossroads
Center
1630Sebastopol
Rd
UniversitySquare
ShoppingCenter
1199Yulupa Ave
Average Price Per Square Foot
SALES COMPARABLES SALES COMPS AVG
%
%
%
%
%
%
%
%
%
%
%
PROPERTY NAME
MARKETING TEAM
SONOMA SQUARE SHOPPING CENTER
SALES COMPARABLES
rentpropertyname1
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SALES COMPARABLES
Annual Per SF
Income $201,613 $13.86
Expenses $95,056 $6.53
NOI $106,557 $7.32
Occupancy 64.66%
Tenants Lease Type
Asking Price: $2,335,000 Domino’s NNN
Price/SF: $160.49 Ronnie’s Deli NNN
CAP Rate: 4.56% China Wok NNN
Year Built: 1988 Laundromat NNN
SONOMA SQUARE SHOPPING CENTER1460 E Cotati Ave, Rohnert Park, CA 94928
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Annual Per SF
Income $189,807 $19.79
NOI $135,700 $14.15
Occupancy 84%
Tenants Lease TypeClose Of Escrow:
3/29/2016 Happy Nails NNN
Sales Price: $2,300,000 Pearl's Diner NNN
Price/SF: $239.78 Personal Hair & Skin NNN
CAP Rate: 6.30% Shanghai Restaurant NNN
Year Built: 1977 Raffo's Hrdwd. Floor NNN
WEST PLAZA SHOPPING CENTER551 5th St W, Sonoma, CA 95476
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Annual Per SF
NOI $133,584 $11.59
NOTESThe property was 100% leased at the time of sale. The center has been sold three times in recent years; 2007, 2013 and 2016.
Tenants Lease TypeClose Of Escrow:
5/26/2016 B&C Registration NNN
Days On Market:
136 Martial Arts NNN
Sales Price: $2,005,000 Power Fit NNN
Price/SF: $173.92 Sunflower Spa NNN
CAP Rate: 6.66%
Year Built: 1978
10 ENTERPRISE10 Enterprise Dr, Rohnert Park, CA 94928
PROPERTY NAME
MARKETING TEAM
SONOMA SQUARE SHOPPING CENTER
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
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Annual Per SF
NOI $149,435 $10.67
Occupancy 67%
NOTES
Part of the buyer's 1031 Exchange. 67% occupied at time of sale.
Tenants Lease TypeClose Of Escrow:
3/3/2016 Asiana Market NNN
Days On Market:
126 Friendly City NNN
Sales Price: $2,000,000 Highway Tattoo NNN
Price/SF: $142.86 Jelly Donut NNN
CAP Rate: 7.74%
Year Built: 1964
THE CROSSROADS CENTER7665 Old Redwood Hwy, Cotati, CA 94931
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Annual Per SF
Income $198,624 $20.21
Expenses $29,160 $2.97
NOI $169,880 $17.28
Occupancy 100%
NOTES
Center was fully occupied at time of sale.
Tenants Lease TypeClose Of Escrow:
9/22/2016 Dulceria Las Tapatia NNN
Days On Market:
567 Tu Casu Furnture NNN
Sales Price: $2,528,000
Price/SF: $257.20
CAP Rate: 6.72%
Year Built: 2014
1630 SEBASTOPOL RD1630 Sebastopol Rd, Santa Rosa, CA 95407
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NOTES
Confirmed Cap Rate information was not available.
Tenants Lease TypeClose Of Escrow:
8/31/2016 Fast & Easy Mart NNN
Sales Price: $3,175,000 Gracie Martial Arts NNN
Price/SF: $218.51 Jelly Donut NNN
Year Built: 1997 Oasis Laundry NNN
TCBY Yogurt NNN
UNIVERSITY SQUARE SHOPPING CENTER7271 Snyder Ln, Rohnert Park, CA 94928
PROPERTY NAME
MARKETING TEAM
SONOMA SQUARE SHOPPING CENTER
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
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SALES COMPARABLES
6
NOTES
No confirmed Cap Rate information was available for this sale.
Tenants Lease TypeClose Of Escrow:
6/30/2016 California Cuts NNN
Sales Price: $1,495,000 Crystal Corners NNN
Price/SF: $336.71 Lila's Mexican Rest. NNN
Year Built: 1992 Modern Nails NNN
1199 YULUPA AVE1199 Yulupa Ave, Santa Rosa, CA 95405
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SONOMA SQUARE SHOPPING CENTER
COMPARABLE SHOPPING CENTERS
SONOMA SQUARE SHOPPING CENTER(SUBJECT)
Commerce Center
College Center
Wolf Den Plaza
10 Enterprise
Padre Town Center
Raleys Towne Center
6245-6475 Redwood Drive
Target Center
Expressway Marketplace
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7
8
9
11
20
12
14
15
16
17
13
18
10
4
7
8
9
1
2
3
5
6
18
1
2
SONOMA SQUARE SHOPPING CENTER
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4
5
6
7
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PROPERTY NAMESONOMA SQUARE SHOPPING CENTER
COMPARABLE SHOPPING CENTERS
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AVERAGE OCCUPANCY
Avg. 85.11%
0
10
20
30
40
50
60
70
80
90
100
SonomaSquare
ShoppingCenter
CommerceCenter
CollegeCenter
Wolf DenPlaza
10Enterprise
Padre TownCenter
RaleysTowneCenter
6245-6475Redwood
Drive
TargetCenter
ExpresswayMarketplace
%
%
%
%
%
%
%
%
%
%
%
PROPERTY NAMESONOMA SQUARE SHOPPING CENTER
COMPARABLE SHOPPING CENTERS
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AVERAGE RENT PER SQUARE FOOT
Avg. $2
$0.00
$0.30
$0.60
$0.90
$1.20
$1.50
$1.80
$2.10
$2.40
$2.70
$3.00
SonomaSquare
ShoppingCenter
CommerceCenter
CollegeCenter
Wolf DenPlaza
10Enterprise
Padre TownCenter
RaleysTowneCenter
6245-6475Redwood
Drive
TargetCenter
ExpresswayMarketplace
PROPERTY NAME
MARKETING TEAM
SONOMA SQUARE SHOPPING CENTER
COMPARABLE SHOPPING CENTERS
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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Total GLA Available SF Asking Rent/SF
14,549 SF 5,142 SF $0.84
YEAR BUILT: 1988
SONOMA SQUARE SHOPPING CENTER1460 East Cotati Avenue, Rohnert Park, CA 94928
OCCUPANCY: 100% | YEAR BUILT: 1973
Total GLA Available SF Asking Rent/SF
16,558 SF 0 SF $1.70
MAJOR TENANTS
Big O Tires
Royal Treatment
El Charro Mexican Restaurant
1
NOTESRetail rents of $20.50 ann. / $1.70 mo. modified gross. Source - Costar
COMMERCE CENTER5979 Commerce Blvd, Rohnert Park, CA 94928
OCCUPANCY: 100% | YEAR BUILT: 1988
Total GLA Available SF Asking Rent/SF
5,060 SF 0 SF $1.50
MAJOR TENANTS
Pizza Hut
Lemus Family Enterprises
A & L Market
Taqueria Sol Azteca
2
NOTESRetail rental rate of $18.00 ann. / $1.50 mo. NNN. Source - Costar
COLLEGE CENTER1435 E Cotati Ave, Rohnert Park, CA 94928
PROPERTY NAME
MARKETING TEAM
SONOMA SQUARE SHOPPING CENTER
COMPARABLE SHOPPING CENTERS
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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OCCUPANCY: 92% | YEAR BUILT: 2004
Total GLA Available SF Asking Rent/SF
18,720 SF 0 SF $2.25
MAJOR TENANTS
Jimmy John's
Debra Coughlin
Juice Shack
Starbucks
3
NOTESRent levels of $27.00 ann. / $2.25 mo. NNN. Source - Costar.
WOLF DEN PLAZA1706 E Cotati Ave, Rohnert Park, CA 94928
OCCUPANCY: 60% | YEAR BUILT: 1978
Total GLA Available SF Asking Rent/SF
11,528 SF 4,703 SF $1.20
MAJOR TENANTS
Power Fit
B & C Registration Service
Appliance Alternative Solutions
To Dye For
4
NOTESTwo spaces for lease. $14.40 ann. / $1.20 mo. NNN. Source - Costar
10 ENTERPRISE10 Enterprise Dr, Rohnert Park, CA 94928
OCCUPANCY: 53% | YEAR BUILT: 1977
Total GLA Available SF Asking Rent/SF
34,850 SF 16,605 SF $1.65
MAJOR TENANTS
Popeye's
Q-Zar Tag
Cost Less Outlet Store
Action Fitness
5
NOTESAsking rents of $18.00 ann. / $1.50 mo. NNN to $20.00 ann. / $16.66 mo. NNN. Source - Costar.
PADRE TOWN CENTER15 Padre Pkwy, Rohnert Park, CA 94928
PROPERTY NAME
MARKETING TEAM
SONOMA SQUARE SHOPPING CENTER
COMPARABLE SHOPPING CENTERS
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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OCCUPANCY: 89% | YEAR BUILT: 1980
Total GLA Available SF Asking Rent/SF
141,747 SF 9,272 SF $2.25
MAJOR TENANTS
Raleys Market
Wells Fargo Bank
Round Table Pizza
Rohnert Park Salon
6
NOTESAsking rent of $27.00 ann. / $2.25 mo. NNN. Source - Costar.
RALEYS TOWNE CENTER6455 State Farm Dr, Rohnert Park, CA 94928
OCCUPANCY: 79% | YEAR BUILT: 1989
Total GLA Available SF Asking Rent/SF
11,400 SF 2,400 SF $1.50
MAJOR TENANTS
Tam Cam Dance Studio
Andrew Lee
Easy Stop Market
Sam's
7
NOTESRetail & mixed-use. Office space available. $18.00 ann. / $1.50 mo. modified gross.
6245-6475 REDWOOD DRIVE6245-6475 Redwood Drive, Rohnert Park, CA 94928
OCCUPANCY: 100% | YEAR BUILT: 1985
Total GLA Available SF Asking Rent/SF
293,224 SF 0 SF $2.50
MAJOR TENANTS
Target
JoAnn's Fabrics
99 Cents Only
Burlington Coat Factory
8
NOTESEffective rents of $30.00 ann. / $2.50 mo. NNN for shop space. - Source -Costar
TARGET CENTER311 Rohnert Park Expy W, Cotati, CA 94928
PROPERTY NAME
MARKETING TEAM
SONOMA SQUARE SHOPPING CENTER
COMPARABLE SHOPPING CENTERS
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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OCCUPANCY: 93% | YEAR BUILT: 1991
Total GLA Available SF Asking Rent/SF
148,536 SF 10,400 SF $1.90
MAJOR TENANTS
Food Maxx
Big Lots
PetSmart
Chuck E Cheese
9
NOTESEffective rents for shop space $30.00 ann. / $2.50 mo. NNN. Source -Costar
EXPRESSWAY MARKETPLACE575 Rohnert Park Expy W, Rohnert Park, CA 94928
PROPERTY NAME
MARKETING TEAM
SONOMA SQUARE SHOPPING CENTER
DEMOGRAPHICS
Source: © 2017 Experian
Created on November 2018
POPULATION 1 Miles 2 Miles 3 Miles 2022 Projection
Total Population 23,185 46,191 58,163
2017 Estimate
Total Population 23,007 45,572 57,245
2010 Census
Total Population 22,122 43,929 55,213
2000 Census
Total Population 21,004 42,501 53,741
Current Daytime Population
2017 Estimate 22,578 41,860 51,828
HOUSEHOLDS 1 Miles 2 Miles 3 Miles 2022 Projection
Total Households 7,896 17,664 22,253
2017 Estimate
Total Households 7,679 17,129 21,546
Average (Mean) Household Size 2.62 2.50 2.52
2010 Census
Total Households 7,344 16,442 20,710
2000 Census
Total Households 7,112 15,747 19,858
Occupied Units
2022 Projection 7,896 17,664 22,253
2017 Estimate 7,805 17,457 22,035
HOUSEHOLDS BY INCOME 1 Miles 2 Miles 3 Miles 2017 Estimate
$150,000 or More 8.37% 8.54% 9.81%
$100,000 - $149,000 18.22% 15.95% 16.29%
$75,000 - $99,999 16.75% 16.74% 16.77%
$50,000 - $74,999 20.50% 20.79% 20.45%
$35,000 - $49,999 11.37% 11.80% 11.73%
Under $35,000 24.81% 26.20% 24.96%
Average Household Income $80,893 $79,111 $82,971
Median Household Income $66,673 $64,111 $65,813
Per Capita Income $29,036 $30,780 $32,076
HOUSEHOLDS BY EXPENDITURE 1 Miles 2 Miles 3 MilesTotal Average Household Retail Expenditure $77,575 $75,288 $76,880
Consumer Expenditure Top 10 Categories
Housing $22,924 $22,356 $22,773
Shelter $15,248 $14,804 $15,032
Transportation $12,653 $12,186 $12,441
Personal Insurance and Pensions $7,910 $7,553 $7,844
Food $7,892 $7,671 $7,823
Health Care $3,853 $3,969 $4,112
Utilities $3,482 $3,432 $3,510
Apparel $3,093 $2,834 $2,920
Entertainment $2,975 $2,942 $3,018Household Furnishings and Equipment $1,823 $1,780 $1,827
POPULATION PROFILE 1 Miles 2 Miles 3 Miles Population By Age
2017 Estimate Total Population 23,007 45,572 57,245
Under 20 27.97% 24.52% 23.90%
20 to 34 Years 28.97% 27.34% 26.30%
35 to 39 Years 5.72% 6.03% 6.03%
40 to 49 Years 12.02% 12.11% 12.30%
50 to 64 Years 16.91% 18.30% 19.47%
Age 65+ 8.39% 11.71% 12.00%
Median Age 29.91 33.63 34.86
Population 25+ by Education Level
2017 Estimate Population Age 25+ 13,512 29,421 37,723
Elementary (0-8) 2.41% 2.79% 2.86%
Some High School (9-11) 6.42% 6.87% 6.81%
High School Graduate (12) 22.34% 22.12% 22.24%
Some College (13-15) 28.70% 29.25% 28.84%
Associate Degree Only 11.45% 11.15% 10.65%
Bachelors Degree Only 19.09% 18.89% 19.66%
Graduate Degree 7.55% 7.58% 7.75%
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SONOMA SQUARE SHOPPING CENTER
DEMOGRAPHICS
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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and shouldnot be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or anytenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures toverify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo orname is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
SONOMA SQUARE SHOPPING CENTERRohnert Park, CAACT ID Z0570047
Investment Contacts
John Koskinen(805) [email protected] CA 02036512
Mark Mason(415) [email protected] CA 0022124