The subject property is a well-maintained neighborhood retail center situated at a busy four-way signalized hard-corner. It is located in a dense infill neighborhood with direct visibility along North El Dorado Street (27,700 average daily traffic counts), one of Stockton’s main commercial retail corridors. The subject property is located directly across from a Dollar General anchored retail center with the Sherwood Mall (anchored by Macy’s, Best Buy, Petco, Ulta, HomeGoods and Dick’s Sporting Goods) and Weberstown Mall (anchored by J.C. Penney, Sears, Dilliard’s and Barnes & Noble) both located about one mile north. The University of Pacific (6,255+ students), Cleveland Elementary School and First Baptist Christian School are all located less than one mile away. There are 103,788 households and over 326,788 residents located within a five-mile radius.
The subject property is 100% occupied by a diverse mix of long-time consumer service and restaurant tenants. In 2018, six tenants signed new leases each with annual rent increases, showing commitment to this location. Eric’s New York Style Pizza, which occupies the second largest suite, has been a tenant since 1987. El Dorado Liquors, which is occupies the third largest suite, has been a tenant since 2013 while Jani’s Famous Cuts has been a tenant since 1997. CRE8 Printing and Design (Suite 4126) recently approached the owner requesting to lease additional space should any become available onsite. Eight of the nine tenants have annual rent increases ranging from 2.5% to 5%, providing an investor with a continuous stream of higher cash flow.
The subject property has been owned and managed by the same owner since 1995. The owner has invested a great deal of time and money to keep the subject property well-maintained. Recent major renovations to the property include: majority roof replacement ($45,000 cost in 2015), HVAC replacement in Suite 4110 ($7,000 cost in 2016), HVAC replacement in Suite 4122 ($9,290 cost in late July 2018), new fencing (2017) and substantial landscaping improvements (2017-2018). In 2018, Suites 4114 (Supreme Barbering), 4120 and 4122 (Dumbuya’s Mercado Market) were remodeled with new paint and flooring. Dumbuya’s Mercado Market paid for a significant portion of the tenant improvement costs. The El Dorado Retail Center provides investors with the opportunity to own a well-maintained neighborhood retail center located at a signalized hard corner with direct frontage along a heavily-trafficked main retail corridor.