single tenant net lease office building...assemi group, inc., is a family owned group of diverse...

SINGLE TENANT NET LEASE OFFICE BUILDINGIN HERNDON PROFESSIONAL CENTER

1368 W HERNDON AVENUE | FRESNO, CALIFORNIA 93711

VISINTAINER GROUP | INVESTMENT REAL ESTATE1368 W HERNDON AVE | FRESNO, CALIFORNIA

1368 W HERNDON AVE | FRESNO, CALIFORNIA

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EXECUTIVE SUMMARYOfferingInvestment HighlightsInvestment SummaryProperty Description

TENANT INFORMATIONTenant Profile

FINANCIAL INFORMATIONAssumptionsCash Flow Summary

LOCATION MAPSArea MapsSite MapFloor Plan

AREA OVERVIEWSale CompsCity Overview

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1368 W. HERNDON AVENUE FRESNO, CA 93711

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BRETT VISINTAINER, CCIMCommerical Investment AdvisorPrincipal | Visintainer Group

bre�@visintainergroup.com559.916.0370 MOBILE

CA Agent License 01792092

7636 N Ingram AvenueSuite 103Fresno, CA 93711

CA Broker License 02047928visintainergroup.com

JESSICA YOUNGOpera�ons ManagerVisintainer Group

[email protected] MOBILE

CA Agent License 02054008

VISINTAINER GROUP | INVESTMENT REAL ESTATE

OFFERING

FIVE-YEAR SALE LEASEBACK BY THE ASSEMI GROUP The Assemi Group will sign a five-year lease at the close of

escrow with a corporate guarantee. The lease will be triple-

net with 2.5% annual increases.

NO LANDLORD RESPONSIBILITIES ABSOLUTE NNN LEASE The tenant will be responsible for all maintenance of the

building. This is one of the only leases that gives an investor

ease of ownership of an office building.

WELL LOCATED IN NORTH FRESNO This property is located just down the street from the second busiest intersection in Fresno - Palm and Herndon Avenues - which has over 92,000 vehicles per day. This property is well located with easy access to HWY 99 and 41, with close proximity to many ancillary services such as banks, retail, and restaurants.


Visintainer Group, on behalf of Ownership, is pleased to present theopportunity to acquire a 4,711 square foot single-tenant net leasedinvestment property leased to The Assemi Group. This property islocated in Fresno, California and was built in 1990.

The Assemi Group will exercise a five-year lease as a sale-leaseback atclose of escrow. The Assemi Group is well diversified in residential andcommercial real estate, farming, development, multi-family, and foundersof California Health Science University.

OFFERING

INVESTMENT HIGHLIGHTS

6.25%

6.35%

6.45%

6.55%

6.65%

6.75%

6.85%

6.95%

7.05%

7.15%

7.25%

Year 1 Year 2 Year 3 Year 4 Year 5

INVESTMENT SUMMARY


YEAR

1

2

3

4

5

MONTHLY RENT MONTHLY PSF

$1.70

$1.74

$1.79

$1.83

$1.88

$1,479,0006.50% Year 1 Cap Rate

PRICE

CAP

RATE

RENT ROLL

ADDRESS

1368 W Herndon Avenue | Fresno, CA 93711

TENANT

Assemi Group, Inc.

RENTABLE AREA

4,711 SF

LEASE EXPIRATION

Five Years from Close of Escrow

NOI

$96,104

LANDLORD RESPONSIBILITIES

None

TAXES, INSURANCE, CAM

Tenant

YEAR BUILT

1990

APN

405-450-02

OCCUPANCY

100%

PROPERTY OVERVIEW

$8,008.70

$8,208.92

$8,414.14

$8,624.49

$8,840.11

6.50%

6.66%

6.83%

7.00%

7.17%

1368 W HERNDON AVE | FRESNO, CALIFORNIA VISINTAINER GROUP | INVESTMENT REAL ESTATE

Assemi Group, Inc., is a family owned group of diverse businesses with interests in farming, real estate development, single family construction, multi-family construction, real estate invest-ments, distribution of household appliances and related products, post graduate health sciences education and other investments.

Their operating practices and investment strategy include a long-term outlook. They believe this approach has been a significant contributor to their success. The Assemi Group evaluatesdecisions and considers what is best for the long-term growth and sustainability of their businesses.

Founded in 1977, they operate in three business segments - Real Estate Development, Agriculture, and Investments.

HEADQUARTERS

Fresno, CAFOUNDED

1977WEBSITE

assemigroup.com

AgricultureThe agriculture business is primarily located in Central California. The farming division owns and operates ranches primarily planted to permanentcrops which include almonds, blueberries, cherries, raisins, lemons, navel oranges, pistachios and walnuts. They also lease open land to 3rd partiesfor crop rotation, entitle it for solar farms or use it for water allocation on their ranches.

Real EstateDevelopment

The real estate development division includes the single-family home construction business which began in 1977. Operating under the marketingname of Granville Homes and Wathen Castanos homes, they are a local private homebuilder who builds and sells a variety of new homes designedfor first time buyers, as well as first-time and second-time move up buyers. They construct homes and develop subdivisions and master plannedcommunities independently and with partners, primarily in the Central Valley and Central Coast of California.

Real EstateInvestments

REAL ESTATE INVESTMENTThey acquire land, paper lots, finished lots and agricultural land for investment in the Central Valley and Central Coast of California. They entitleand sell land, paper lots and/or finished lots to third parties or sell to an affiliated entity to construct homes that are sold to homebuyers.

REAL ESTATE INVESTMENT - RENTAL PROPERTIESThey invest in apartments, single family homes and commercial office building rentals. They construct apartment buildings under the name of GVUrban primarily to hold as long-term investments and focus on acquisition, development and management of rental apartment properties in urbanand suburban markets primarily in Central California. These investments are primarily managed by an in-house property management division. They also acquire commercial office properties and own a portfolio of Class A office buildings in the Fresno area. The strategy is to acquire assetsin high traffic or growth areas that have significant upside potential.

REAL ESTATE INVESTMENT - HIGHER EDUCATIONCalifornia Health Sciences University (CHSU) was founded in 2012. The spirit and vision for the university is to provide education for students,who may not have had an opportunity otherwise, to become healthcare professionals and to bring medical care to the underserved communitieswe live in and throughout various parts of the country. CHSU opened its first college – the College of Pharmacy in 2014. CHSU is currentlyworking on developing a College of Osteopathic Medicine and plans to open other health science related colleges in the future. CHSU will beeligible to be a fully accredited university in 2018.

ASSUMPTIONS


ANALYSIS PERIOD

May 1, 2019 - April 30, 2020

5 Years

1st Fiscal Year (”FY1”) of Ownership

Term

ANNUAL GROWTH RATES

2.00%

2.50% After First Year

Operating Expenses

Rental Growth After Initial Term

OPERATING EXPENSES

$6.31 PSF Annual | $0.53 PSF Monthly

Yes

1.2116%

Total Operating Expenses

Property Tax Reassessed Due to Sale

Property Tax Rate

ANNUAL RESERVES

$0.15Annual Reserves

LOAN TERMS

65%

$961,350

$517,650

$9,614

$527,264

$67,439

5.00%

25 Years

10 Years

1.41

7.02%

LTV

Loan Amount

Down Payment

Loan Origination Fee (1.00%)

Initial Investment

Annual Debt Service

Interest Rate

Amortization

Due

DCR

Loan Constant

DISPOSITION - END OF YEAR 5

Price

Cap Rate

Cost of Sale

$1,673,353

6.50%

4.00%

[1] FY1 Expenses reflect following: 4.0% increase from 2017 expenses for CAM, insurance quote from Farmers Insurance, taxes reassessed at list price.

[2] Proposed loan terms provided by Matt Renney - Broker | California Realty Capital, Inc. | 559-222-5070 | [email protected]. Loan quote is subject to typical due diligence, underwriting, financial strength, experience

of borrower and third party reports. Rates change daily.


FY1 FY1 FY1 FY2 FY3 FY4 FY5 FY6YEAR ENDING PSF/ANNUAL PSF/MO Apr 2020 Apr 2021 Apr 2022 Apr 2023 Apr 2024 Apr 2025

POTENTIAL RENTAL INCOME $1.70 $20.40 $96,104 $98,507 $100,970 $103,494 $106,081 $123,022

Vacancy & Credit Loss $0.00 $0.00 $0 $0 $0 $0 $0 $0

EFFECTIVE RENTAL INCOME $1.70 $20.40 $96,104 $98,507 $100,970 $103,494 $106,081 $123,022

Expense Reimbursements $0.53 $6.31 $29,716 $30,311 $30,917 $31,535 $32,166 $36,224

GROSS OPERATING INCOME $2.23 $26.71 $125,821 $128,818 $131,887 $135,029 $138,247 $159,246

OPERATION EXPENSES

Real Estate Taxes ($0.32) ($3.80) ($17,920) ($18,278) ($18,644) ($19,016) ($19,397) ($19,785)

Insurance ($0.03) ($0.40) ($1,900) ($1,938) ($1,977) ($2,016) ($2,057) ($2,098)

CAM ($0.18) ($2.10) ($9,897) ($10,095) ($10,297) ($10,503) ($10,713) ($10,927)

TOTAL OPERATING EXPENSES ($0.53) ($6.31) ($29,716) ($30,311) ($30,917) ($31,535) ($32,166) ($32,809)

NET OPERATING INCOME $1.70 $20.40 $96,104 $98,507 $100,970 $103,494 $106,081 $126,437

6.50% 6.66% 6.83% 7.00% 7.17%

Reserves $0.01 $0.15 ($707) ($707) ($707) ($707) ($707)

Acquisition Price ($1,479,000) $0 $0 $0 $0 $0 Unleveraged

Disposition Price $0 $0 $0 $0 $1,673,353 IRR

CASH FLOW BEFORE DEBT SERVICE ($1,479,000) $95,398 $97,800 $100,263 $102,787 $1,711,793 8.22%

6.45% 6.61% 6.78% 6.95%

Interest Payment $47,617 $46,603 $45,537 $44,417 $43,239

Principal Payment $19,822 $20,836 $21,902 $23,023 $24,201

Annual Debt Service ($67,439) ($67,439) ($67,439) ($67,439) ($67,439) Leveraged IRR

CASH FLOW AFTER DEBT SERVICE ($527,264) $27,958 $30,361 $32,824 $35,348 $792,788 12.81%

5.30% 5.76% 6.23% 6.70%

[1] FY1 Expenses reflect following: 4.0% increase from 2017 expenses for CAM, insurance quote from Farmers Insurance, taxes reassessed at list price[2] Taxes are 1.21821% of list price, $1,479,000[3] Loan Terms: 1.00% Fee, 65% LTV, 25 Year Amortization, Due in 5 Years, 5.00% Interest Rate, 1.41 DCR

CAP RATE

UNLEVERAGED CASH ON CASH

LEVERAGED CASH ON CASH

FISCAL YEAR (FY) OF OWNERSHIP


LEVERAGEDIRR

12.81%


CASH FLOW

UNLEVERAGEDIRR

8.22%

VILLAGIO SHOPPINGCENTER

UNIVERSAL PARK

THE SHOPS ATRIVER PARK

THE MARKETPLACEAT RIVER PARK

24

5

PARK PLACE

PALM BLUFFSCORPORATE CENTER

235 acre business park forClass A and B office buildings

SUBJECT PROPERTY

1

3

HERNDON AVENUE

41

PARK PLACE

1

VILLAGIO SHOPPING CENTER

2

UNIVERSAL PARK SHOPPING

3

4

5

THE SHOPS AT RIVER PARK

MARKETPLACE AT RIVERPARK


NEES AVENUE

PALM AVEN

UE

BLACKSTON

E AVENU

E

41


N PALM

AVENU

E - 36,162 VPD

SUBJECT PROPERTY

W HERNDON AVENUE - 55,893 VPD | 2nd busiest intersection in Fresno with 92,055 VPD


HERNDON PROFESSIONAL CENTER

The property is located in Herndon Professional Center, a 12-building90,000+ square foot office complex in the heart of North Fresno.

SUBJECT PROPERTY

FLOOR PLAN


KITCHEN

CONFERENCEROOM

MENWOMEN

STORAGE

ADMIN

1

7405, 7433, 7461, 7475,7489 N First St

Fresno, CA

Dec. 2018

$10,200,000

$283

36,045 SF

6.36%

Address

Sale Date

Sale Price

PSF

SF

Cap Rate

575 E Alluvial AveFresno, CA

Dec. 2018

$5,375,000

$318

16,925 SF

6.20%

Address

Sale Date

Sale Price

PSF

SF

Cap Rate

HERNDON AVENUE

BLACKSTON

E AVENU

ESUBJECT PROPERTY

SALE COMPARABLES


1368 W Herndon AveFresno, CA

$1,479,000

$314

4,711 SF

6.50%

Address

Sale Price

PSF

SF

Cap Rate

PALM AVEN

UE


FRESNO | CALIFORNIA

Fresno is the 5th largest city in California with a population of 527,438

200 miles north of Los Angeles and 170 miles south of Sacramento

California State University, Fresno was listed on Forbes “America’s

Best College List of 2018”

As of 2018 the enrollment is 24,995 for undergraduates, graduates,

and post-baccalaureate

Home of the Washington Nationals AAA affiliate, the Fresno Grizzlies

Southern entrance to Yosemite National Park - 65 miles to the north

Richest and most productive agricultural county in the world, grossing

over $7 billion from 350 crops+ (2017)

Fresno boasts a diverse food service economy that has been a test

market for several years complementing the culinary industry with

locally grown food products

500+ trucking & warehousing firms operate in the area due to the

central location in the state of California

Some of the top businesses in Fresno recognized worldwide are:

Quickie Design – Largest wheelchair manufacturer worldwide

Pelco – Worldwide distributor of surveillance equipment

Duncan Enterprises – Worlds largest ceramics manufacturer

Any information provided with this Offering Memorandum shall be considered strictly confidential at all times. As an express conditionof you receiving and reviewing this Offering Memorandum you agree to treat its contents confidential and to ensure that anyone youprovide this information, in whole or in part, agrees to keep the contents strictly confidential as well. We reserve the right to issueyou a recall notice, in which case you agree to return this information to us and to recover and transmit any copies you have furnishedto other parties, including prospective purchasers.

You also understand that the information in this Offering Memorandum is being provided in good faith and largely using informationprovided by our client or public resources, and that in no way to do we verify or guarantee the ultimate accuracy of informationcontained herein, including without limitation: values of properties; square footage; zoning or land use; actual versus projected NOIfigures; the strength or intentions of any tenant; any condition of title; area tenants or tenant mixes; comparable sales; land bordersor boundaries; the existence or absence of any hazardous materials or substances; the topography or suitability of land for constructionor expansion; and/or the coverage, duties or limitations imposed by any CC&Rs, DDAs, REAs or otherwise.

You and your client’s due diligence (once in escrow) is the opportunity you have to complete a final verification of any informationyou determine is necessary for vetting the property or properties and you may not rely on information in this Offering Memorandum.

You also understand that this Offering Memorandum contains abbreviated or summary versions of key facts or data and are notintended to be comprehensive or all-inclusive list of information. No warranty or representation, expressed or implied, is made bythe owner, the agent, the broker of record or our company as to the accuracy of the information contained herein or any otherwritten or oral communications.

We expressly disclaim any liability connected with the information or other communications made in the course of listing, negotiating,escrow, closing or post-closing.

This Offering Memorandum is subject to modification, rescission, termination or withdrawal, with or without notice. It is not deemedto be an offer to sell any property. The property owner or owners shall have no legal commitment or obligation to any interestedparty reviewing this Offering Memorandum to accept an offer or respond to an offer.

DISCLAIMER AND DISCLOSURE AGREEMENT

7636 N Ingram AvenueSuite 103Fresno, CA 93711

559-916-0370 MOBILEvisintainergroup.com

single tenant net lease office building...assemi group, inc., is a family owned group of diverse...

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