LONG TERM (NNN) LEASED INVESTMENT 1631 CHALLENGE DRIVE, CONCORD, CALIFORNIA 94520 PRICED TO SELL QUICKLY SELLER HAS 1031 LINED UP PRICE: $7,405,714 CAP RATE: 8.75% 2018 NOI: $648,000 TERM: 14 YEARS REMAINING MARK HINKINS CCIM FRICS PRESIDENT 925 627 6027 mark.hinkins@sperrycga.com CA Lic. #01320849 LARRY EASTERLY MCR SENIOR VICE PRESIDENT 925 279 4655 larry.easterly@colliers.com CA Lic. #00958987 1631 CHALLENGE DRIVE, CONCORD, CA SKY HIGH SPORTS TRAMPOLINE PARK NNN LEASED INVESTMENT 1
INVESTMENT HIGHLIGHTS A rare high-cap San Francisco Bay Area NNN opportunity for investors with quick-close capabilities, driven by the Seller s immediate 1031 exchange opportunity. This offering provides a highly desirable long-term cash flow, from an established leading brand in the indoor trampoline recreational sector. The asset comprises a centrally located single tenant NNN leased warehouse on a long-term commitment to Sky High Sports Concord, LLC for 15 years. The original lease commenced March 1, 2010 and a new lease was signed May 1st, 2017 to April 30th, 2032 (14 years remaining) with scheduled rent increases on May 1, 2022 and May 1, 2027. SALE PRICE $7,405,714 CAP RATE 8.75% NET OPERATING INCOME $648,000 LOT SIZE 1.46 Acres / ±63,597 square feet BUILDING SIZE ±24,000 SF TENANT SKY HIGH SPORTS CONCORD, LLC GUARANTOR SKY HIGH SPORTS OPERATION, LLC APN 127-231-024 ADMINISTRATIVE PERMIT Allowing trampoline park, highly sought after permit PARKING 61 stalls or 2.54/1,000 SF CEILING HEIGHT ±20-22 clear height and center-line columns at 20 YEAR BUILT 1972 (Renovated 2010) ROOF Replaced 2010 HVAC 2010, 48 tons total ZONING Industrial Business Park (IBP) BLDG AMENITIES Grade & dock high loading, skylights, insulated ceiling, excellent lighting, fully sprinklered Copyright 2018 Colliers International & Sperry Commercial. Information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. All properties subject to change or withdrawal without notice. 1631 CHALLENGE DRIVE, CONCORD, CA SKY HIGH SPORTS TRAMPOLINE PARK NNN LEASED INVESTMENT 2
LEASE HIGHLIGHTS Sky High Sports has been at location for 8 years and recently renewed for 15 years The Lease is Guaranteed by Sky High Sports Concord Operations LLC Sky High Sports has a Right of First Refusal to purchase the property with a fifteen (15) day response timeline. Sky High is committed to the location and the marketplace which is evidenced by their new fifteen (15) year lease committment. TENANT HIGHLIGHTS Sky High Sports has eight (8) locations in California and is located in five (5) other states in the US. According to Environics Analytics the target market for Sky High cliental, children between the ages of 5-20, is comprised of 94,474 children. Their nearest competitors are more than 17 miles away in Brentwood and Pleasanton. Within a ten (10) mile radius of the Subject Property there are ninety eight (98) Middle and Elementary schools for Sky High to draw from. Copyright 2018 Colliers International & Sperry Commercial. Information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. All properties subject to change or withdrawal without notice. 1631 CHALLENGE DRIVE, CONCORD, CA SKY HIGH SPORTS TRAMPOLINE PARK NNN LEASED INVESTMENT 3
CONCORD RETAIL AMENITIES PLEASANT HILL SHOPPING CENTER 680 CONCORD AVE WILLOW PASS ROAD CONTRA COSTA BLVD SUN VALLEY MALL 680 LOCATION OVERVIEW Just minutes from I-680 & HWY 242. The surrounding mixed-use industrial business park is home to a cross section of recreational sports businesses, home improvement showrooms, and light industrial uses, all situated within minutes of the freeway. Nearby retail is locatedat the Willows Shopping Center and the brand new Veranda life-style shopping and entertainment center, opened 2018, which includes retail, movie theater, restaurants, food & beverage retail. The property is less than one mile from Sun Valley Mall, the East Bay s largest covered Shopping Mall. 1631 CHALLENGE DRIVE, CONCORD, CA SKY HIGH SPORTS TRAMPOLINE PARK NNN LEASED INVESTMENT 5
LOCAL SURROUNDING BUSINESSES THE WILLOWS SHOPPING CENTER 0.5 miles FROM INTERSTATE 680 28,358 CARS PER DAY EAST BAY SPORTS ACADEMY SUN VALLEY MALL HOBBY LOBBY CRAFTS COOKS COLLISION SHERWIN WILLIAMS PAINT SAMCLAR OFFICE FURNITURE PALAZZO KITCHEN & BATH 146,000 CARS PER DAY 680 DIABLO ROCK CLIMBING 112,000 CARS PER DAY MOMENTUM FITNESS 1631 CHALLENGE DRIVE, CONCORD, CA SKY HIGH SPORTS TRAMPOLINE PARK NNN LEASED INVESTMENT 6
CAPTIVE MARKETPLACE & COMPETITION POPULATION DEMOGRAPHICS SNAPSHOT 2018 SUMMARY OAKLAND CONCORD 17 mi Population 5 mile 10 mile 15 mile Age 5-9 14,575 27,106 66,320 Age 10-14 15,483 29,954 71,421 Age 15-17 9,366 18,961 45,204 Age 18-20 8,538 18,219 50,454 Age 21-24 11,473 23,740 63,500 SAN FRANCISCO 19 mi PLEASANTON Household Income 5 mile 10 mile 15 mile Average HH Income $122,178.17 $136,367.82 $135,117.88 Median HH Income $91,232.10 $94,592.84 $92,766.39 Population 5 mile 10 mile 15 mile 2010 Census 248,452 463,707 1,139,374 2018 Estimate 263,370 496,512 1,224,218 2023 Projection 273,394 517,277 1,278,317 Household Growth 5 mile 10 mile 15 mile % Change: 2018 to 2023 4.04 4.37 4.65 SAN JOSE Sky High Sports benefits from a captive market No direct competitors within 17 miles Copyright 2018 Colliers International & Sperry Commercial. Information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. All properties subject to change or withdrawal without notice. 1631 CHALLENGE DRIVE, CONCORD, CA SKY HIGH SPORTS TRAMPOLINE PARK NNN LEASED INVESTMENT 7