Retail Space For Lease @ 2500 New Stine Rd

Value-Add Opportunity with Existing Income: Prime New Stine Rd & Wilson Rd Corner location offering ±31,525 SF of multi-tenant retail shop and pad spaces on ±2.68 acres in the center of Bakersfield, CA. Offers (10) easy-to-rent retail spaces leased to long-term tenants - including Chuy's, Fun Zone + Gifts, & Cataldo's - on professionally drafted Triple Net leases. The property sits comfortably in Bakersfield’s primary retail area, and with its close proximity to major highway access easily accessible to motorists. Just over 1.5 miles away, is Valley Plaza Mall featuring over 170 retailers and drawing consumers from surrounding communities. Great visibility, convenient parking & easy access to CA-99 on/off ramps. Many front parking spaces available, and excellent existing corner signage. Potential owner/user fuel station redevelopment opportunity (site plan attached).

The value-add opportunity consists of addressing the under-market rent of (6) tenants, extending lease length over the next 6-12 months for the (1) tenant already at a market rates, and leasing the remaining (4) units totaling 11,870 SF (38.5%) of the property. Value-add opportunity with actual rents of $294,484/year collected plus upside potential. After addressing the vacancies alone, the annual income is $451,078 (174% upside). After addressing the undermarket units, this deal has potential annual income of $514,134. Unique investment offering easy-to-rent small spaces within an under-built market offering a strong need for these type of units. Once stabilized, the deal offers a 9.12% Cap rate, 14.85% cash-on-cash return when leveraged with 30% down, which produces a 1.95 Debt Coverage Ratio!

Chuy's lease was signed in 2010 during the Great Recession, paid an increased rent during the ’20 pandemic, and desires to extend the lease (previously 3% increases per annum). Get Faded Barber shop spent TI’s to improve the space and signed a 5-year lease with a $492/month increase per annum escalating to $1.25/SF at the end of the term. Inked Tattoo’s 3.5 year lease is up for renewal. Marotta Physical Therapy has occupied since 2016, with the most recent renewal extending the lease by 5-years; the 5-year renewal is anticipated to be $1.35/SF (FMV). Nailed Beauty Lounge’s lease is up for renewal; the 3-year renewal is anticipated to be $1.35/SF (FMV). Fun Zone + Gifts spent TI’s in 2017 to improve the space and signed a 5-year lease with a $152/month increase per annum escalating to $0.90/SF at the end of the term; the 3-year renewal is anticipated to be $1.35/SF (FMV). Cataldos signed a 3-year lease in 2015, renewed the lease for 5-years with 3% rent bumps per annum escalating to $1.68/SF at the end of the term; however, during the ’20 pandemic, the rent was reduced to $1.38/SF with a $200/month increase per annum. This space offers accomodations for: strip center.