The Ice House

CLOVERDALE | CA

The Ice House Presented by

Tim Rangel & Kevin McDonald

CLOVERDALE

The Ice House

Offered at $1,100,000

Tim Rangel Sales Associate CADRE # 01280958

Sotheby's International Realty tim.rangel@sothebys.realty 707.280.1700 TimRangel.com

Kevin McDonald Sales Associate CADRE # 01944953 Sotheby's International Realty kevin.mcdonald@sothebys.realty 707.391.3382 KevinMproperties.com

* While information in this Memorandum has been obtained from reliable sources, it is not guaranteed to be accurate or complete.

Prospective Parties are encouraged to investigate all information and details contained within for accuracy.

Invest in Profitable History Located in Sonoma County's northern most Wine Country community of Cloverdale, The Ice House couples unique history and quality improvements in a profitable investment opportunity.

Once the area's original Ice House, the modern day Ice House has been thoroughly updated under the current ownership. The approximately 5,601square foot commercial building is sited on a roughly 14,000 square foot lot, with prime exposure. Zoned for multiple uses, including heavy retail, heavy commercial and warehousing, the site lends itself to a variety of uses. The Ice House is currently leased to an established manufacturing and distribution tenant, with 2 years remaining on their initial term and an option to extend. Recent upgrades include new roof, new HVAC and additional extensive interior and exterior upgrades.

Ideal location, quality upgrades and the security of a strong tenant make The Ice House an attractive investment for discerning investors.

Property Details -

840 N Cloverdale Blvd., Cloverdale, CA 95425

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Assessor Parcel Numbers: 116-040-032-000 ( .32 acres or 14,000 square feet)

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City of Cloverdale Service Commercial Zoning

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5,601 Sq. Ft. Fully Renovated Commercial Building Currently Configured for Light Manufacturing and Distribution Uses

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Significant Improvements include new roof, HVAC and Complete Interior and Exterior Renovations

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20 + Off-Street Parking Spaces

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Fenced Yard Area

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Public Utilities

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Open Space On Lot

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Located in Cloverdale, CA, at the northern end of Sonoma County and future terminus of the Smart Train, simplifying commuting options and setting the stage for future growth in the area.

* While information in this Memorandum has been obtained from reliable sources, it is not guaranteed to be accurate or complete.

Prospective Parties are encouraged to investigate all information and details contained within for accuracy.

Aerial Map

APN # 116-0 4 0 -0 3

* While information in this Memorandum has been obtained from reliable sources, it is not guaranteed to be accurate or complete.

Prospective Parties are encouraged to investigate all information and details contained within for accuracy.

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Established Tenant The Ice House is currently tenanted by a local, vertically integrated cannabis manufacturing and distribution company. All applicable local and state permits and licenses are in good standing and are the responsibility of the tenant. There is currently 2 years remaining on the initial term of the lease, with a strong possibility that the tenant will exercise their option to extend for an additional term.

Below is a current lease overview. Copies of Leases available upon request.

Current Lease Overview Tenant

The Garden Society

Address

Square Footage

840 N Cloverdale Blvd.

Gross Rents

4,000*

Price Per Square Foot $1.45

Monthly Rent $5,816

Annual Rent $69,792 $69,792

* Based on approximate interior square footage

* While information in this Memorandum has been obtained from reliable sources, it is not guaranteed to be accurate or complete.

Prospective Parties are encouraged to investigate all information and details contained within for accuracy.

Financial Considerations The Ice House offers a unique investment opportunity within the Northern Sonoma County commercial investment property market. Median Market cap rates for the area have hovered just shy of 5% over the past 3 years.

The Ice House offering delivers a consistent 5% to 6% return on investment from acquisition to disposition.

Beyond cash flow, appreciation of asset value has been constant in the area as well. We forecast appreciation at a rate of approximately 4% annually,

10 Year Outlook Year Ending

12/ 31/ 24

Acquisition Cost Rental Income

12/ 31/ 25

12/ 31/ 26

12/ 31/ 27

12/ 31/ 28

$1,144,000

($1,100,000)

$69,792

$71,886

$74,043

$76,264

$78,552

($2,000)

($2,060)

($2,122)

($2,186)

($2,252)

Real Estate Taxes

($8,600)

($8,858)

($9,124)

($9,398)

($9,680)

Insurance

($4,500)

($4,635)

($4,774)

($4,917)

($5,065)

NOI

$54,692

$56,313

$58,023

$59,763

$61,375

5%

5%

5%

5%

6%

Maintenance Expense

Percentage Rate of Return -

Assumes acquisition cost to buyer of $2,850,000

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Ten year hold with 4% Capitalization Rate annually

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Rental Income increases at 3% annually

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Real Estate Taxes, Insurance, Landscape/Maintenance and Utilities increase at 3% annually

8

Return on investment is typically limited by potential future capital expenditures and maintenance. The significant improvements and low maintenance needs of The Ice House should ensure profits without major cap expenses for years to come.

The pro-forma table below, demonstrates potential returns based on a medium term 10-year holding period.

12/ 31/ 29

12/ 31/ 30

12/ 31/ 31

12/ 31/ 32

12/ 31/ 33

10-Year Totals

$1,550,589

$450,589

2

$80,909

$83,336

$85,836

$88,411

$91,063

$800,092

2)

($2,320)

($2,390)

($2,462)

($2,536)

($2,612)

($22,940)

0)

($9,970)

($10,269)

($10,557)

($10,874)

($11,200)

($98,530)

5)

($5,217)

($5,374)

($5,535)

($5,701)

($5,872)

($51,590)

5

$63,402

$65,303

$67,282

$69,300

$71,379

$1,077,621

%

7%

6%

6%

6%

6%

* While information in this Memorandum has been obtained from reliable sources, it is not guaranteed to be accurate or complete.

Prospective Parties are encouraged to investigate all information and details contained within for accuracy.

CLOVERDALE

Location

Cloverdale is located in the picturesque Alexander Valley wine region of Sonoma County, just off Northern California Highway 101 about 15 miles north of Healdsburg. With good proximity to urban centers and within easy driving distance to San Francisco, Cloverdale is evolving as a smart growth city with small town charm.

An exceptional place to live, the city covers 2.7 square miles. The median household income is $59,120 with a population of approximately 11,032 and is surrounded by Oak-studded rolling hills, outstanding recreational opportunities, wineries, vineyards and small farms.

With walkable and bike-friendly neighborhoods, dotted with family-oriented parks, apartment and home prices range from the affordable to luxury. Enjoy moderate winters, warm summers with balmy summer nights and enjoy downtown plaza events and Farmers Markets!

Listings of local businesses are available on their website, as well as on the website of the Cloverdale Chamber of Commerce, which also provides resources for those looking to relocate their home or business to Cloverdale.