Listed by Summit Real Estate
$5,500,000
Foothill Shopping Center
Details
APN 038-3182-027
Property Type Retail
Sub Type Shopping Center
Square Footage 27,126
Cap Rate 3.51%
NOI $193,027
Occupancy 39%
Tenancy Multi
Lease Type NNN
Pro-Forma Cap Rate 12.91%
Pro-Forma NOI $709,901
Price per SqFt $203
Investment Type Value Add
Ground Lease No
Ownership Leasehold Interest
Retail | 3.51% CAP | 27,126 SqFt
Investment highlights
- 27,126 SF Neighborhood Shopping Center — Leasehold Interest Value-Add Opportunity with Significant Lease-Up Upside and the Option to Purchase the Underlying Land from the City of Oakland
- Significant Value-Add Opportunity — 61% of the Center is Vacant (16,654 SF), Offering Immediate Lease-Up Upside and Potential Stabilized Yield of 12.5+%
- Irreplaceable Basis — Priced at $203 SF, Well Below Replacement Cost for a Newly Constructed 27,126 SF Neighborhood Retail Center in the Oakland Market
- Option to Purchase the Land — Buyer Inherits Two Options to Acquire the Fee Interest from the City of Oakland Starting at $2,400,000, with the Ability to Convert to Fee Simple Ownership and Dramatically Increase Asset Value
- Minimal Ground Rent — Currently Only $1,000/Month ($12,000/Year) Through 2036, Providing a Long Runway of Low Land Cost While the Investor Executes the Lease-Up Business Plan
- Long-Term Ground Lease Security — 66-Year Lease with the City of Oakland (Expires ~2082), Providing Over 56 Years of Remaining Term
- Diverse Tenant Mix with Staggered Expirations — Six Occupied Suites with Lease Expirations Ranging from 2027–2031, Providing Stability and Reducing Rollover Risk During the Lease-Up Period
- City of Oakland Partnership — Ground Lessor is a Municipality with a Vested Interest in the Center’s Success, Including Covenants Requiring Commercially Reasonable Lease-Up Efforts and Protections for Leasehold Mortgage
Listing Contacts
Listed by Summit Real Estate
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Loan Amount
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Annual Debt Service
$--
$--
Annual Cash Flow
$193,027.00
$16,085.58/mo
Valuation Metrics
0
DSCR
3.51%
Cap Rate
3.51%
ROI
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