Colonel Fletcher Building - For Sale

Highlights:

• WHOLE BUILDING CONTROL, CONDO FLEXIBILITY: The offering delivers every office floor in the building plus the parking garage. An office condominium map is already recorded and the CC&Rs permit up to 26 office condominiums, so the floors can be held as one asset, occupied floor by floor, or sold off suite by suite. That optionality is unusual for a downtown building of this size and gives a buyer several exits.
• BASIS WELL BELOW REPLACEMENT COST: At $4,250,000, or roughly $156 per rentable square foot, the Property is priced at a fraction of what it would cost to replicate a seismically retrofitted, fully sprinklered brick and timber building with its own garage in the downtown core. No comparable creative office product can be built at this basis.
• MODERN SYSTEMS INSIDE A 1908 LANDMARK: The 2008 renovation replaced the core of the building: seismic upgrades, a new elevator, electrical, plumbing, HVAC and fire sprinklers, and added the on-site garage. The buyer inherits the character without the deferred maintenance.
• CREATIVE OFFICE THAT TENANT ASK FOR: Exposed brick, hardwood floors, open wood ceilings, high windows on two street frontages and operable glass are the finishes that creative, professional and nonprofit users seek downtown. Floor plates of roughly 7,300 square feet each allow single tenant floors or multiple suites.
• SIGNIFICANT FIRST YEAR TAX ADVANTAGE: A preliminary cost segregation proposal prepared by MVO Consulting at the $4,250,000 offering price estimates $842,826 of first year depreciation and $280,698 of first year federal and state tax savings, with an upside case of $363,692. See page 12 for detail.
• PRIVATE PARKING IN A PARKING CONSTRAINED CORE: The secure on-site garage with 17 spaces is a rare amenity for a historic downtown building, and one that most competing brick and timber buildings simply cannot offer. It supports owner occupancy, tenant retention and a separate income stream.
• HEALTHY ASSOCIATION, FULLY FUNDED RESERVES: The Property is part of a two member owners association with the separately owned ground floor retail condominium. Reserves are fully funded, and the office units hold approximately 74% of the assessment allocation and 24 of 32 association votes.
• WALKABLE, TRANSIT SERVED LOCATION: Sixth and Broadway sits between the Financial District, the Gaslamp Quarter and the Civic Center, steps from the US Grant and Westgate hotels, the courthouses and the MTS Trolley line that connects to UCSD and UTC, with access to 1-5 and SR-163 minutes away.

Description:

Commercial Asset Advisors, as exclusive advisor to the Seller, is pleased to present the office portion of the Colonel Fletcher Building, a landmark 1908 building at the northeast corner of Sixth Avenue and Broadway in downtown San Diego. The offering consists of the entire third, fourth and fifth floors, approximately 27,176 rentable square feet of creative office, together with the building's secure on-site parking garage, offered at $4,250,000, or approximately $156 per rentable square foot.

The building was fully retrofitted in 2008 with new seismic, elevator, electrical, plumbing, HVAC and fire sprinkler systems. The result is a rare combination: exposed brick, hardwood floors, open wood ceilings and operable windows inside a building whose core systems are modern. An office condominium map is already recorded, and the CC&Rs allow the three floors to be divided into as many as 26 office condominiums, so a buyer can occupy, lease or sell space in whatever increments the market rewards.

The Property sits within a two member owners association with the separately owned ground floor retail condominium. Reserves are healthy and fully funded, and the office units control the large majority of the association's votes. Because the offering is priced well below the cost to build downtown, and because a preliminary cost segregation study has already been prepared at this basis, a buyer can expect a meaningful first year tax benefit on top of an attractive going in basis.

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