tm exclusive offering memorandum€¦ · 2016-2021 annual rate 0.62% 0.72% 0.77% 2016 male...

Mark Hefner Managing [email protected]: 916 804 0262CalBRE # 00823945

EXCLUSIVE OFFERING MEMORANDUM

SIERRA SCHOOL AT EASTERN20,000+/- SF ON 2.57 ACRES

1150 EASTERN AVENUESACRAMENTO, CA 95864

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FOR SALENATIONAL CREDIT

SINGLE-TENANT NNN LEASE

OR OWNER/USER

FOR SALERIVERFRONT PROPERTY

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SINGLE-TENANT NNN LEASE OR

OWNER/USER

CONTENTS

EXECUTIVE SUMMARY

SITE DESCRIPTION

TRANSACTION SUMMARY

PROPERTY PHOTOGRAPHS

PLANS

MAPS

AERIAL IMAGES

MARKET OVERVIEW

DEMOGRAPHICS REPORT

DISCLAIMER

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INVESTMENT HIGHLIGHTS

> 20,000+/- SF Campus

> Rare and valuable entitlement for educational use

> Exclusive Arden Park neighborhood (see attached demographics)

> Three buildings (10 classrooms + 2 portables that are leased by tenant) plus

administrative offices

> Large auditorium/gymnasium

> 79 parking spaces

EXECUTIVE SUMMARY

Sierra School at Eastern

1150 Eastern AvenueSacramento, CA 96864

RD 2: Conditional use permit for school in place, runs with land

2.57+/- acres

18% coverage offers development potential

NAME

ADDRESS

ZONING

TOTAL LAND AREA

POTENTIAL USES

LIST PRICE

CAP RATE

PRICE PER EXISTING BUILDINGSQUARE FOOT

INITIAL LEASE TERM

EFFECTIVE BASE RENT

RENTAL INCREASES

$4,500,000

8.92%

$225.00

7/1/2009 – 6/30/20195 year option to renew at FMV

$20.07 PSF per annum

ANNUAL


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EXECUTIVE SUMMARY

The property at 1150 Eastern Avenue has served the affluent Arden Park neighborhood as an educational center since the early 1960’s. The site possesses a rare and valuable Conditional Use Permit (CUP) to operate a school, which runs with the land.

Originally, the campus was constructed on 12.77 acres as an elementary school, serving the neighborhood in that capacity until it transitioned into an adult education facility. In 1984, the property was declared surplus property by the San Juan Unified School District. The Subject Property was sold to River Oaks Center for Children, Inc. (formerly Re-Ed West) for operation of a non-profit private school, and the balance of the original school site was sold to Mission Oaks Park and Recreation District for a community park and the home of the Eastern Little League, which remains in operation today.

Sierra School at Eastern has operated at 1150 Eastern Avenue since 2009, originally as SESI, or Specialized Education Services, Inc. For 30 years, SESI—headquartered in Yardley, PA—has been expertly and holistically meeting the academic, behavioral, and emotional needs of K–12+ students facing intensive learning, language, and social challenges. Implementing a signature education model that incorporates supportive therapies and life skills training, SESI emphasizes guiding students to success in and out of the classroom and optimally preparing them for next steps. SESI has an impressive graduation rate of 79%–98% for special education students (across all SESI schools) and a partner retention rate of more than 90%.

SESI operates the Sierra School of Sacramento (one of 5-6 Sierra Schools and Academies) and the High Road Schools and Academies as its flagship stand alone Special Education facility. Local School Districts send students to the schools and pay a tuition for their specialized education. School districts typically place a student in a “ non-public” school when they can no longer meet their unique individual educational needs or when students become too complex or disruptive or a danger to themselves or others if they remain in their neighborhood schools.

In 2015, SESI merged with Catapult Learning. Founded in 1976, Catapult Learning is a full-service instructional provider of proven intervention, professional development, assessment, and dropout prevention and recovery programs, with a special focus on struggling and at-risk students. Catapult Learning’s school and district partners consistently report significant student gains, with annual pre- to post-intervention standardized test scores rising an average of 12 normal-curve equivalent (NCE) points in math and 11 in reading over the past eight academic years. Additionally, over 95% of Catapult Learning partners renew their contracts, and the average tenure of partnership is 17 years.

The 1150 Eastern Avenue campus is within walking distance to one of three Whole Foods Markets in the entire Sacramento Metro Area. It is also close to other pre-eminent educational institutions: Jesuit High School, St. Francis Catholic High School, Sacramento Country Day School (K-12) and Rio Americano High School, one of the region’s highest rated public academic institutions.

The Seller is also willing to work with an owner/user to deliver the campus upon close of escrow and unencumbered by a lease or with a limited and finite lease term remainder, subject to seller and tenant approval.


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Sierra School at Eastern

1150 Eastern AvenueSacramento, CA 95864

Arden Park neighborhood (Eastern Ave. is a four-lane surface street connecting to Arden Way to the north and Fair Oaks Blvd. to the south)

Telephone (multiple carriers serve the property or reside within the Eastern Avenue right of way)Electric (Sacramento Metropolitan Utilities District)Gas (Pacific Gas & Electric)Water (Sacramento Suburban Water District)Sewer (County of Sacramento)

School campus

RD 2: Conditional use permit for school in place, runs with land

School Realty of Sacramento, LLC

289-0161-021-0000

2.57+/- acres

School (existing approved use); residential development potential; re-development or development of senior care (subject to entitlements and approvals)

SITE DESCRIPTION

NAME

ADDRESS

ACCESS

UTILITIES

PROPERTY TYPE

ZONING

OWNER OF RECORD

APN

TOTAL LAND AREA

POTENTIAL USES


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OWNER/USER

Seller is seeking a qualified investor or school operator to acquire the property

$4,500,000

Submission of interest will be accepted through June 30, 2017, subject to extension or earlier withdrawal by Seller without notice.

Buyers will be required to submit an expression of interest to seller containing the following information:

1. Purchase price: The purchase price shall be all cash2. Due diligence period3. Non-refundable amount4. Close of escrow date

1. Ability to perform2. Banking references3. Recent closing references

There is no obligation on the part of the seller to accept any proposal submitted in response to this solicitation.

1. Tenant lease (dated 7/1/2009)2. ALTA survey (6/18/2009)3. Preliminary title report (5/5/2017), Old Republic Title4. Phase I environmental site assessment report (6/26/2009)5. Various architectural dawings (incomplete, various dates)6. Limited Phase I environmental site assessment report (May 2017)7. Property Condition Assessment (May 2017)

TRANSACTION SUMMARY

PURPOSE OF MEMORANDUM

ASKING PRICE

SUBMISSION OF INTEREST

TERMS OF INTEREST

DEVELOPER QUALIFICATIONS

OTHER PROVISIONS

AVAILABLE DUE DILIGENCE

This Confidential Offering Memorandum is being presented to a select number of qualified investors or school operator. Parties interested in acquiring 1150 Eastern Avenue are expected to comply with the terms of the solicitation as outlined herein.


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ALTA SURVEY


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PLANS

Various architectural plansdating from 1988–2003

PLANS


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* SUBJECT PROPERTY

REGIONAL MAP

LOCAL MAP

*SUBJECT PROPERTY

LAKE TAHOE(120 min. by car)

SAN FRANCISCO(90 min. by car)

SAN JOSE

SANTA ROSA80

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AERIAL VIEWS

SUBJECT PROPERTY

SITE

Mariemont Elementary

Arden Middle School

Rio AmericanoHigh School

Jesuit High School

OW ErlewineElementary

Sierra Oaks K-8

SacramentoCountry Day

Isador CohenElementary

El Camino High School

SIERRA OAKSARDEN PARK

ARDEN OAKS

LAKE TAHOE

American River

HQ

HQ


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MARKET OVERVIEW (CALIFORNIA)

39,250,017

14,325,377

31.4%

4th highest in U.S.

2.6%

32.3%

$61,818

#30 rank in states

#4 rank in states

Los Angeles: 3.8 MSan Diego: 1.25 MSan Jose: 1 MSan Francisco: 837,000Sacramento: 476,000

Produces over $1 trillion more than NY, with CA representing 14% of U.S. economy

Computers and ElectronicsVehicles and MachineryAgriculture, Food, and BeveragesChemicals and Pharmaceuticals

UCLA Health System (35,543)Walt Disney Parks & Resorts (28,000)UCLA (27,489)University of California, Davis (20,295)Department of Transportation, Sacramento, CA (20,000)

POPULATION

EMPLOYMENT

BACHELOR’s DEGREE

COST OF LIVING

JOB GROWTH

COLLEGE ATTAINMENT

MEDIAN HOUSEHOLD INCOME

FORBES BUSINESS RANK

FORBES GROWTH PROSPECTS

TOP 5 CITIES

ECONOMY

LEADING EXPORTS

TOP EMPLOYERS


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DEMOGRAPHICS REPORTPopulation

2000 Population 10,085 139,132 291,437

2010 Population 10,127 136,849 290,761

2016 Population 10,302 140,137 298,362

2021 Population 10,627 145,259 309,957

2000-2010 Annual Rate 0.04% -0.17% -0.02%

2010-2016 Annual Rate 0.27% 0.38% 0.41%

2016-2021 Annual Rate 0.62% 0.72% 0.77%

2016 Male Population 48.7% 47.9% 48.2%

2016 Female Population 51.3% 52.1% 51.8%

2016 Median Age 50.5 39.1 37.6

In the identified area, the current year population is 298,362. In 2010, the Census count in the area was 290,761. The rate of change since 2010 was 0.41% annually. The five-year projection for the popula-tion in the area is 309,957 representing a change of 0.77% annually from 2016 to 2021. Currently, the population is 48.2% male and 51.8% female.

Median Age

The median age in this area is 50.5, compared to U.S. median age of 38.0.

Race and Ethnicity

2016 White Alone 86.2% 67.3% 65.3%

2016 Black Alone 1.1% 9.0% 8.7%

2016 American Indian/Alaska Native Alone 0.4% 0.9% 1.1%

2016 Asian Alone 6.6% 7.6% 8.1%

2016 Pacific Islander Alone 0.2% 0.7% 0.8%

2016 Other Race 1.5% 7.3% 8.9%

2016 Two or More Races 3.8% 7.2% 7.2%

2016 Hispanic Origin (Any Race) 7.3% 18.6% 21.2%

Persons of Hispanic origin represent 21.2% of the population in the identified area compared to 17.9% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which mea-sures the probability that two people from the same area will be from different race/ethnic groups, is 70.6 in the identified area, compared to 63.5 for the U.S. as a whole.

Households

2000 Households 4,099 60,740 121,851

2010 Households 4,093 58,798 119,808

2016 Total Households 4,122 59,750 121,796

2021 Total Households 4,223 61,651 125,823

2000-2010 Annual Rate -0.01% -0.32% -0.17%

2010-2016 Annual Rate 0.11% 0.26% 0.26%

2016-2021 Annual Rate 0.49% 0.63% 0.65%

2016 Average Household Size 2.49 2.32 2.41

The household count in this area has changed from 119,808 in 2010 to 121,796 in the current year, a change of 0.26% annually. The five-year projection of households is 125,823, a change of 0.65% annu-ally from the current year total. Average household size is currently 2.41, compared to 2.39 in the year 2010. The number of families in the current year is 69,931 in the specified area.

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Median Household Income

2016 Median Household Income $103,051 $52,698 $51,123

2021 Median Household Income $112,611 $54,233 $52,058

2016-2021 Annual Rate 1.79% 0.58% 0.36%

Average Household Income

2016 Average Household Income $143,265 $76,608 $72,312

2021 Average Household Income $157,006 $82,534 $77,992

2016-2021 Annual Rate 1.85% 1.50% 1.52%

Per Capita Income

2016 Per Capita Income $58,030 $33,068 $30,058

2021 Per Capita Income $63,151 $35,411 $32,181

2016-2021 Annual Rate 1.71% 1.38% 1.37%

Households by Income

Current median household income is $51,123 in the area, compared to $54,149 for all U.S. households. Median household income is projected to be $52,058 in five years, compared to $59,476 for all U.S. households Current average household income is $72,312 in this area, compared to $77,008 for all U.S. households. Average household income is projected to be $77,992 in five years, compared to $84,021 for all U.S. households Current per capita income is $30,058 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to be $32,181 in five years, com-pared to $32,025 for all U.S. households

Housing

2000 Total Housing Units 4,183 63,120 127,291

2000 Owner Occupied Housing Units 3,589 30,543 61,205

2000 Renter Occupied Housing Units 511 30,197 60,645

2000 Vacant Housing Units 83 2,380 5,441













Currently, 43.9% of the 133,784 housing units in the area are owner occupied; 47.1%, renter occupied; and 9.0% are vacant. Currently, in the U.S., 55.4% of the housing units in the area are owner occupied; 32.9% are renter occupied; and 11.7% are vacant. In 2010, there were 131,169 housing units in the area - 45.8% owner occupied, 45.6% renter occupied, and 8.7% vacant. The annual rate of change in housing units since 2010 is 0.88%. Median home value in the area is $299,005, compared to a median home value of $198,891 for the U.S. In five years, median value is projected to change by 3.95% annually to $362,923.

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DISCLAIMER

Mohr Partners, Inc. exclusively presents the listing of Sierra School at Eastern (“Property”) for your acquisition. The owner is offering for sale the Property through its exclusive listing with the team.

Mohr Partners, Inc. and owner provides the material presented herein without representation or warranty. A substantial portion of information must be obtained from sources other than actual knowledge and not all sources can be absolutely confirmed. Moreover, all information is subject to changes by the parties involved as to price or terms before sale, to withdrawal of the Property from the market, and to other events beyond the control of Mohr Partners, Inc. or owner. No representation is made as to the value of this possible investment other than hypothetical scenarios. It is encouraged that you or any of your affiliates consult your business, tax and legal advisors before making a final determination of value or suitability of the Property for acquisition.

As a condition of Mohr Partners, Inc.’s consent to communicate the information contained herein–as well as any information that may be communicated to you subsequently either verbally or in writing by Mohr Partners, Inc., owner or agents of either of these parties regarding the Property–it is required that you agree to treat all such information confidentially.

tm exclusive offering memorandum€¦ · 2016-2021 annual rate 0.62% 0.72% 0.77% 2016 male...

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