Business center for rent on Fresno St, Fresno, CA

Mixed-use two-story value-add opportunity with existing income: ±22,600 SF consisting of (8) commercial retail/office spaces on the ground floor and (34) singe room multifamily spaces upstairs on (2) APN’s totaling ±0.258 acres within Chinatown in Downtown Fresno. Unique investment offering (42) easy-to-rent small spaces within an under-built market offering a strong need for these type of spaces. Commercial spaces of 8,118 SF, residential 4,950 SF, and common areas of 1,944 SF. Great visibility, convenient parking & easy access to CA-99 and CA-180 on/off ramps. All units have high speed Internet, secure entrances, various access points, ample signage, and abundant nearby parking. Many front parking spaces available, quick access to the 2nd floor, and excellent existing corner exposure/signage.

 

The value-add opportunity consists of (i.) leasing the (2) commercial vacancies at $1/SF (900 and 1,000 SF), and (2) 1-bedroom multifamily units, and (ii.) increasing the rent of all multifamily units to $600/month (Section 8 allows up to $859) and the commercial units to $1/SF over the next 6-12 months. In addition, charging the customary "pass-through" expenses of Water, Sewer, Trash, and Gardening to eliminate these items from the Landlords ledger.

 

Actual rents collected of $230,040/year plus upside potential. After leasing 4 vacancies ($34,440/year), the realistic 6-12 month stabilized gross annual income is $264,840 at month 12. Further rent growth of under-market remaining units provide potential gross income of $320,616/year the following year. Once stabilized, the deal offers a TEEN cash-on-cash return when leveraged w/ 30% down! After leasing the 4 vacancies (before rent increases), this deal produces a 9.9% cash-on-cash return and a 1.67 DCR!

Highlights

• Rare Opportunity to Develop Iconic Property Next to HSR Station

• $20m+ Mixed Use Project Under Construction Across Street

• ±22,600 SF On ±0.258 Acres w/ Fresno St Frontage

• Double Digit Cash-on-Cash Returns After Stabilized

• Investment Opportunity: Leased Office/Retail Spaces + Apartments

• Long-Term Tenants | Low Turnover | Low Maintenance

• Cash Cow To Produce $320K In Rents ($21.36/SF/Yr)

• Rent Growth Of Under-Market Remaining Units

• Quality Construction | Well Maintained | Great Exposure

• Easy Access from Surrounding Major Corridors & Downtown

• Functional Spaces | Easy To Rent | Move-in Ready

• Easy Access to Highway 99 & Major Retail Arterials

• Excellent Existing Signage On 2 City Street Corners

• Well-Known Freestanding Building @ Corner Location

• Located at the Gateway to Downtown Fresno

• Hard Corner Adjacent to Historic Fresno Fire Dept #3

• Area Slated to Receive over $70 million in Cap & Trade Redevelopment Grants