CLOVERDALE| CA
SilverwoodBuilding
Presented by TimRangel& KevinMcDonald
SilverwoodBuilding
CLOVERDALE
Offered at $3,050,000
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
EaseofMindInvestment
TheSilverwoodBuildingislocatedontheNorthernfringesof SonomaCounty'sdesirableWineCountrywithinthe bucolic Cloverdalecommunity. Positionedinthetown'sreimagined downtowncore,TheSilverwoodBuildingoffersanopportunity toinvest inanasset whichhasbeencompletelyrestoredand includesastrongtenant base.
Comprisedof2separatelegalparcels,totaling26,670squarefeet, theofferingfrontstwowell-traveledcitystreets,Cloverdale BoulevardandEast 1st Street Withoneparcelimproved,the secondparcelhasbeenleft vacant intentionallytoallowfor ampleoff-street parking
TheSilverwoodBuildingconsistsof12,000squarefeet,demised into7separateunits completelyredesignedandrebranded underthecurrent ownership Lendingitselftotheprime downtownlocation,thebuildingishighlyvisibleandflowing withitspaseostyledlayout Thebuildinghasundergone extensiverenovationsandcapitalimprovementsoverthepast 5 yearsinaneffort toensureanewownercanfocusoncashflows fromstrongtenantsinlong-termleases
TheSilverwoodBuildingpresentsanopportunityfordiscerning investorstoenter theWineCountrymarket orexpandtheir current portfoliowithasound,qualityandlowriskasset.
*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
PropertyDetails
- 102 S Cloverdale Blvd.,105 E1st St.,109 E1st St.,111EIst St.,113 E1st St.,115,E1st St ,and 117 E1st St Cloverdale,CA95425
- Assessor Parcel Numbers: 001-123-016 ( 27 acres or 11,850 Sq Ft ) and 001-123-011 ( 34 acres or 14,820 Sq Ft ) Both independent legal parcels
- City of Cloverdale Downtown Commercial Zoning
- 12,000 Sq.Ft.Fully Renovated Commercial Building Demised into 7 Units
- Fully Leased
- Redesigned with Significant Improvements,including new roof,electrical,interior and exterior upgrades,and paseo styled parking lot
- 15 Off-Street Parking Spaces
- Public Utilities
- Landscaped
- 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 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
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*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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AStrongTenant Base
Prime location and quality improvements have attracted strong tenants with successful local businesses Tenanted by 6 separate businesses, all diverse in their profiles, the Silverwood Building has seen little to no vacancies under current ownership
Below is a current lease overview. Copies of Leases available upon request.
Current LeaseOverview
Tenant Address Square Footage Price Per Square Foot Monthly Rent Annual Rent Tian Yuan 102 N Cloverdale Blvd 4,000 $1 10 $4,400 $52,800 YWendt Photo 105 E1st St 1,401 $1 20 $1,680 $20,160 Low Knob 109 E1st St 1,490 $1 07 $1,587 $19,044 State Farm 111 E1st St 1,080 $1 72 $1,854 $22,248 Erin Mavis 113 E1st St 960 $1 20 $1,153 $13,836 SonomaTrading 115 E1st St 755 $2 12 $1,600 $19,200 Erin Mavis 117 E1st St 2,314 $1 02 $2,350 $28,200 GrossRents $175,488
*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 Silverwood Building 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 Silverwood 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
($5,150) ($5,305) ($5,464) ($5,628)
($22,696) ($23,377) ($24,078) ($24,800)
-
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 ($2,850,000) Rental Income $175,488 $180,753 $186,176 $191,761 $197,514 Landscape/ Maintenance Expense ($5,000)
Estate Taxes ($22,035)
Insurance ($8,500)
Utilities ($4,600)
NOI $135,353 $139,414 $143,596 $147,904 $152,341 Percentage Rate of Return 5% 5% 5% 5% 5%
Real
($8,755) ($9,018) ($9,289) ($9,568)
($4,738) ($4,880) ($5,026) ($5,177)
Assumes
acquisition
Return on investment is typically limited by potential future capital expenditures and maintenance The significant improvements and low maintenance needs of The Silverwood Building 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.
4
) ($5,797) ($5,971) ($6,150) ($6,335) ($6,525) ($57,325)
) ($25,544) ($26,310) ($27,099) ($27,912) ($28,749) ($252,600)
) ($9,855) ($10,151) ($10,456) ($10,770) ($11,093) ($97,455)
) ($5,332) ($5,492) ($5,657) ($5,827) ($6,002) ($52,731)
1
*While
8 12/31/29 12/31/30 12/31/31 12/31/32 12/31/33 10-Year Totals $3,830,161
$980,161
$203,439 $209,542 $215,828 $222,303 $228,972 $2,011,776
$166,466 $171,459 $176,603 $2,531,826 % 5% 6% 6% 6% 6%
$156,911 $161,618
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 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.
