PRIME OPPOR T UNI T Y T O ACQUIRE A S INGL E-T EN A N T NNN L E A S ED IN V E S T MEN T IN MID T O W N

2009 N

The offering consists of two fully leased buildings situated on .15 acres of land in midtown; a 3,700 square foot, three story residential building (“original structure”) and a 2,200 square foot repurposed shipping container restaurant and beer hall known as The Federalist Public House (“FPH”). Both structures are being leased by FPH under one agreement expiring 1/31/2021 with one (1) five year option to extend at 100% Fair Market Value. The subject property is being offered for sale at $1,751,000, representing a 6% capitalization rate on existing income.

The original structure was built in 1907 and has housed a variety of office and residential uses since its construction over a century ago. The 3,700 square feet is exclusive of an approximate 800 square foot basement that is currently used as storage. The first floor contains a fully functional prep kitchen, bathroom and three special event rooms. Renovated in 2012, the second and third floors of the structure equal approximately 2,050 square feet and are used as a private residence with 3+ bedrooms and two full bathrooms. The residence boasts elegant hardwood floors, an updated kitchen, airy dining and living rooms and abundant natural light. One can’t help but appreciate the perfect balance between the charming character and touches of modern, contemporary flair after stepping into the space.

The Federalist Public House is a unique shipping container restaurant and beer hall located in the backyard of the original structure, with direct access to Matsui Alley between Capitol Ave and N Street on 20th. The FPH was built in 2014 and features an outdoor pizza oven, walk-in freezer, tap room, prep kitchen and two ADA compliant restrooms. Other finishes include cooling fans, misters and heat lamps for variable climate conditions.

P R O P E R T Y

S U M M A R YTURTON COMMERCIAL, AS EXCLUSIVE ADVISOR, IS PLEASED TO PRESENT THE OPPORTUNITY TO ACQUIRE THE 100% FEE SIMPLE INTEREST IN 2009 N STREET.

P R O P E R T Y I N F OAddress 2009 N Street

Price $1,751,000

Price per SF $298/sf

APN 007-0146-011-0000

Parcel Info 6,534 square feet (.15 acres)

Zoning C-2

Year Built Original Structure: 1907

Renovated 2012

Federalist Public House 2014

Construction Type Original Structure: Wood and Stick Frame

Federalist Public House: Reclaimed Shipping Containers

Net Rentable Original Structure:

First Floor: 1,650 sf

Second floor: 1,550 sf

Third Floor: 500 sf

Federalist Public House:

2,200 sf

Total Square Feet: 5,900 SF

Parking 1 space

P R O P E R T Y

e c o n o m i c s

R E N T R O L LTenant SF Lease Lease

ExpirationPer SF Cost

Lease Type Monthly Rent

Rent Increase Date

Increase Amount

FPH & Original Structure 5,900 2/1/2016 1/31/2021* $1.48 NNN** $8,755.00 2/1/2020 $8,930.00

*Tenant has one (1) five (5) year option to extend the lease at 100% Fair Market Value. **Tenant is responsible for property tax, insurance, utilities and all maintenance and repair to the property; Landlord shall only be responsible for roof maintenance of the original structure.

Midtown Sacramento is the perfect fusion of multi-generational locally owned business and organic youth infused goods and services; a healthy dose of carefully selected national and regional retailers and an eclectic mix of high-end demographic occupations that are intricately embedded in a landscape of unique older buildings and mature trees. Business owners, residents and investors have flocked to the center of Sacramento’s art, music, and cultural scene to cash in on the burgeoning and fruitful submarket. Many people consider Midtown to be the most centralized area in the City of Sacramento, with easy access to Downtown, Old Sacramento, West Sacramento and East Sacramento. Large infill housing and mixed-use development projects are scattered throughout the grid, indicating regional growth and an increased emphasis on inner-city living.

While the overall commercial Sacramento market has seen growth over the last 9 quarters, with the vacancy rate decreasing to approximately 10% in the fourth quarter of 2018, the Midtown submarket dramatically outpaced this average with a 3.9% vacancy rate. Even this number does not accurately reflect the demand for midtown as many of the buildings included in these figures are blighted, severely non-compliant and functionally obsolete or intentionally held vacant as owners review various development opportunities. Furthermore, residential vacancy in midtown is virtually non-existent.

Notable midtown development is abundant and headlined by a mixed-use grocery store concept at the corner of 21st and L Street by Pappas Investments, just two blocks from 2009 N Street. Construction will break ground in 2019. In conjunction with this project, Pappas Investments just completed a 4-story parking garage at the corner of 21st and Capitol Ave. Further, just a step from the Subject Property is the future home of the Tribute Building, a fully entitled 47,000 square foot mixed use project by Heller Pacific. The building is expected to be LEED certified and feature roof top terraces and an assorted retail mix. 3 blocks to the south of the Subject Property, a 32 detached townhome development called 20PQR and a 68-unit mixed-use apartment building called Q19 were recently completed.

P R O P E R T Y

L O C A T I O N

BUCKHORN GRILLAIOLI BODEGA

ESPANOLA

MULVANEY’S B&L

DEVINE, CHIPOTLE

OLD SOUL COFFEECREPEVILLE

ZOCALO*58 DEGREES

THE PRESS BISTRO

PAESANO’SPORTOFINO

JACK’S URBAN EATS

IZAKAYAMASSAGE ENVY

MXNW VAPORSPORTCLIPS

MELODY SALONTHE UPS STORE

FRESH CLEANERS

PRONTO PIZZATHAI CANTEENNISHIKI SUSHI

MAGPIEORCHID THAI*

INSIGHT COFFEEHOT ITALIAN

RYUJIN RAMEN

HOOK & LADDER

PANDA EXPRESS

UNIVERSITY OF BEER

Q19 DEV.

EVIVA MIDTOWN

BLACK PINE DEV.

SEASONS COFFEEPRESERVATION CO.

POUR HOUSE

ZUDA YOGABREW BIKE

TRUITT BARK PARK

Q19 DEV.

THE SHADY LADYBURGERS & BREW

ACE OF SPADESR15

CAFE BERNARDO

KUPROS

THE PROPERTY

CAPITOL PARK

MIDTOWN

DOWNTOWN

BURGERTOWNFACES

SAWASDEE THAIOLD SPAG. FACTORY

LOW BRAUBLOCK BUTCHER BAR

NEKTER JUICERYAZUL MEXICAN

PIZZERIA URBANOPEET’S COFFEE TANK HOUSE

PETE’S BREWHOUSEPACHAMAMA COFFEE

SUBWAYMARIKA CAFE

21ST S

TREE

T

19TH S

TREET

P STREET

CAPITOL AVE

DEVELOPMENT

PRESS DEVELOPMENT

Milk MoneyAll GoodWest ElmWarby ParkerBonobosPhilz CoffeeBeast & BountyMendocino Farms

Title BoxingDevice Brewing Co.Pure BarreHealthy Hounds KitchenButton Up BoutiqueBishop’s Cuts/ColorPressed Juicery

• FPH has occupied the buildings since 2014 and it is likely the tenant will extend their lease for an additional five years upon lease expiration.

• However, in the event FPH does not elect to exercise their 5-year renewal option upon lease expiration in January 2021, the Subject Property can easily be released to separate residential and retail tenants with little downtime or out-of-pocket costs.

• The Original Structure features three distinct residential units, each with a bathroom and kitchen. The three units could be released to three separate residential tenants with little downtime. Further, the second-generation shipping container restaurant, standing alone, would generate considerable interest from restaurateurs, bar operators, and breweries in Midtown. The underwriting for this bifurcated option is as follows:

T R I P L E X L E A S E A N A L Y S I SBasement Storage Rent $125

First Floor Unit (1,650 SF) $3,230

Second Floor Unit (1,550 SF) $2,850

Third Floor Unit (500 SF) $1,100

Gross Monthly Rent: $7,305

Gross Annual Rent: $87,660

Less 3% Vacancy Reserve ($2,629)

Annual Rent Less V/R $85,031

Less OpEx (33% of gross rent) ($28,060)

Net Operating Income $56,971

Value at a 5% Cap Rate $1,139,420

Less TI Costs ($30,000)

Less Carry/Leasing Costs ($8,325)

“As-is” Value of Original Structure $1,100,000

Price per Square Foot $297

S H I P P I N G C O N T A I N E R L E A S E A N A L Y S I SMonthly Shipping Container Rent (2,200 SF @ $2.25/NNN)

$4,950/NNN

Annual Rent $59,400

Less 5% Vacancy Reserve ($2,970)

Annual Rent less V/R $56,430

Less OpEx (NNN) $0

Net Operating Income $56,430

Value at a 7.75% Cap Rate $728,129

Less Free Rent (5 Months) ($8,250)

Less Carry Costs (5 Months) (8,250)

Less Leasing Commissions ($7 PSF) ($15,400)

“As-Is” Value Value of Shipping Container Restaurant

$696,229

Together, the value of the Original Structure, now operating as a triplex, and the second-generation shipping container restaurant is $1,796,229 inclusive of market vacancy reserves, carry/leasing costs, and some minor tenant improvements. Thus, the Subject Property could, in theory, be worth more vacant and released to 4 separate tenants than under the single, NNN lease.

IF FPH DOES NOT RENEW THEIR LEASE

L E A S E

A N A LY S I S

TRUITT BARK PARK

17 & S DEV.

EVIVA MIDTOWN

20 PQR

Q19THE PRESS BUILDING

1915 S DEV.

ICE BLOCKS

1430 Q DEV.

20 PQR

Strong interest in

the area has spurred

the redevlopment of

nearby properties.

The Sacramento

grid is currently

peppered with new

developments, but R

Street is the epicenter.

PROPERTYNEARBY DEVELOPMENT

There are currently nine multi-family mixed use projects slated for development over the next two to three years. This will create as many as 1,200 new units on the market averaging about 600 SF per unit. In addition, almost 100,000 SF of retail space has been included with those permits not including almost 70,000 SF of new retail at the Ice Blocks project near the Subject Property. A majority of these projects are targeted for the P – Q – R Street corridors due to their centralized location to Midtown, Downtown and the Central District as well as their ideal proximity to Light Rail Transit’s urban hub at 16th and Q Street. Whether investing or developing, the time is now for this area of Midtown.

700,0009 270,000SF OF NEW OFFICE/RETAILMAJOR NEW DEVELOPMENTS SF OF NEW RESIDENTIAL

© 2019 This information has been secured from sources believed to be reliable. Any projections, opinions, assumptions or estimates used are for example only and do not constitute any warranty or representation as to the accuracy of the information. All information should be verified through an independent investigation by the recipient, prior to execution of legal documents or purchase, to determine the suitability of the property for their needs. Logos and/or pictures are displayed for visual purposes only and are the property of their respective

owners.

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