Presented by TimRangel& KevinMcDonald
CLOVERDALE| CA TheIceHouse
TheIceHouse
CLOVERDALE
Offered at $1,100,000
TimRangel
Sales Associate
CADRE#01280958
Sotheby's International Realty tim.rangel@sothebys.realty
707280 1700
TimRangel com
KevinMcDonald
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 inProfitableHistory
LocatedinSonomaCounty'snorthernmost WineCountry communityofCloverdale,TheIceHousecouplesuniquehistory andqualityimprovementsinaprofitableinvestment opportunity.
Oncethearea'soriginalIceHouse, themoderndayIceHouse hasbeenthoroughlyupdatedunderthecurrent ownership. The approximately5,601squarefoot commercialbuildingissitedon aroughly14,000squarefoot lot,withprimeexposure. Zonedfor multipleuses,includingheavyretail,heavycommercialand warehousing,thesitelendsitselftoavarietyofuses TheIce Houseiscurrentlyleasedtoanestablishedmanufacturingand distributiontenant,with2yearsremainingontheirinitialterm andanoptiontoextend Recent upgradesincludenewroof, newHVACandadditionalextensiveinterior andexterior upgrades
Ideallocation,qualityupgradesandthesecurityof astrong tenant makeTheIceHouseanattractiveinvestment for discerninginvestors
PropertyDetails
- 840 N Cloverdale Blvd.,Cloverdale,CA 95425
- Assessor Parcel Numbers: 116-040-032-000 ( .32 acres or 14,000 square feet)
- City of Cloverdale Service Commercial Zoning
- 5,601Sq Ft Fully Renovated Commercial Building Currently Configured for Light Manufacturing and Distribution Uses
- Significant Improvements include new roof,HVAC and Complete Interior and Exterior Renovations
- 20 + Off-Street Parking Spaces
- Fenced Yard Area
- Public Utilities
- Open Space On Lot
- 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
AerialMap
*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
APN # 116-0 40 -03
-032-0 0 0
EstablishedTenant
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 LeaseOverview
* Based on approximate interior square footage
Tenant Address Square Footage Price Per Square Foot Monthly Rent Annual Rent The Garden Society 840 N Cloverdale Blvd 4,000* $1 45 $5,816 $69,792 GrossRents $69,792
*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
FinancialConsiderations
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,
10YearOutlook
Real
($1,100,000) $1,144,000
($2,000) ($2,060) ($2,122) ($2,186) ($2,252)
($8,600) ($8,858) ($9,124) ($9,398) ($9,680)
($4,500) ($4,635) ($4,774) ($4,917) ($5,065)
- Assumes acquisition cost to buyer of $2,850,000
- Ten year hold with 4%Capitalization Rate annually
- Rental Income increases at 3%annually
- Real Estate Taxes, Insurance, Landscape/Maintenance and Utilities increase at 3%annually
Year Ending 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 Acquisition Cost
Rental Income $69,792
Expense
$71,886 $74,043 $76,264 $78,552 Maintenance
Estate Taxes
Insurance
NOI $54,692
Percentage Rate of Return 5% 5% 5% 5% 6%
$56,313 $58,023 $59,763 $61,375
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.
2
) ($2,320) ($2,390) ($2,462) ($2,536) ($2,612) ($22,940)
) ($9,970) ($10,269) ($10,557) ($10,874) ($11,200) ($98,530)
) ($5,217) ($5,374) ($5,535) ($5,701) ($5,872) ($51,590)
5
*While
8 12/31/29 12/31/30 12/31/31 12/31/32 12/31/33 10-Year Totals $1,550,589 $450,589
$80,909 $83,336 $85,836 $88,411 $91,063 $800,092
$65,303 $67,282 $69,300 $71,379 $1,077,621
7% 6% 6% 6% 6%
$63,402
%
for accuracy
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
CLOVERDALE
Location
Cloverdale is located in the picturesque Alexander Valley wine region of Sonoma County,just off Northern California Highway 101about 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.
