1891 Wardrobe Ave, Merced, CA 95341

Property Description

This 24,142 SF bldg is leased to Solar City (a NYSE company) thru December 2018. Triple net lease averages $77,920 net income annually over remaining term. Tenant has 2 consecutive 3-year lease renewal options thereafter with rent adjusted upward by 4% / year. The lease encumbers approximately 2.56 m/l acres of the 5 acre parcel and therefore there is roughly 2.44 m/l acres remaining that can be developed for other tenant(s) or for an owner user. Using a conservative $2.00/SF value for the excess acreage the value of the excess acreage is roughly $212,500 leaving $1,037,500 allocated to the leased portion of the property which equates to a 7.51% capitalization rate. Existing structure is fully insulated, has fire sprinkler system throughout, boasts 1,000 AMP 3-Phase electrical service, has 2 separate recessed truck docks and 2 grade level roll-up doors and has fenced yard area. Building is on City water but has its own septic system. Has 14,574 SF of shop area + a 630 SF shop bldg attached to it, 3,227 SF of offices (2,026 SF on 1st floor + 1,201 SF on 2nd floor), 825 SF of second floor mezzanine, an 1,836 SF insulated walk-in box and a 3,050 SF covered canopy for the dock area on the west side of the bldg.