TABLE OF CONTENTS
DISCLOSURE
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
METHODOLOGY
METHODOLOGY
METHODOLOGY
PROPERTY
METHODOLOGY
METHODOLOGY
LOCATION MAP
OPPORTUNITY ZONES
OPPORTUNITY ZONES
OPPORTUNITY ZONES
OPPORTUNITY ZONES
OPPORTUNITY ZONES
LOCATION DETAIL
LOCATION DETAIL
LOCATION DETAIL
MANAGEMENT TEAM
LOCATION DETAIL
LOCATION DETAIL
DISCLOSURE
This Package contains information compiled from area experts, contractors and engineers regarding projected construction costs, lease and absorption rates, and thus projected returns. Although this package contains the initial information received, development projects have constantly changing inputs. Though information has been secured from sources that Wilhelm Sauls Investments, LLC deems reliable, Wilhelm Sauls Investments, LLC makes no representation or warranties, either express or implied, as to the accuracy of any information on this property. All information contained herein is further subject to correction, modification or withdrawal without further notice. Prospective investors should perform their own due diligence and must verify the information and bear all the risk of inaccuracies.
Funds received in this offering will be applied and used solely for development and management of the property and to pay for the pre-construction documents needed to advance the project to the point of starting construction.
This information is confidential in nature and should not be reproduced in whole or in part without the express written permission of Wilhelm Sauls Investments, LLC. Projected Returns are subject to change due to loan terms, new discovery, occupancy, additional capital investment, owner decisions, various factors involved in property management, and changes to the economic environment; and therefore Wilhelm Sauls Investments, LLC and their affiliates do not guarantee these returns, and further do not guarantee that the property will close or the specific date on which it will close. Income distributions, if any, will be evaluated on a quarterly basis.
This material does not constitute an offer or a solicitation to purchase securities. An offer can only be made by the Private Placement Memorandum. This document is an informational summary and is authorized for use only by interested parties who meet the suitability standards established by Wilhelm Sauls Investments, LLC by virtue of their experiences and financial circumstance.
PROPERTY INFORMATION
Additional Information
The “Downtown Marketplace”, is designed and approved as a three story mixed use commercial office and retail project. Upon completion and lease up the building will be refinanced to permanent financing at interest rates according to the market at such time of the refinance. Refinance proceeds in excess of paying off debt required for construction and stabilization, if any, will be distributed to equity investors as a return of capital.
The Existing Site
The site is located on the southeast corner of Kalmia Street and Washington Avenue in Murrieta, California. The site is approximately 72,140 square feet. The property is currently undeveloped. Under the approved plans, site improvements will include new sidewalk, curb and gutter, utility connections and under-grounding of utilities.
Current Owner
The owner of the property is Downtown SPE 906-090-014, LLC), a California limited liability Company currently owned solely by Wilhelm Sauls Investments, LLC (owned equally by Tami C. Wilhelm and Edwin G. Sauls individually). Additionally, related parties, Wilhelm Sibling Trust and Hemet Ranch LLC are the existing first trust deed lender on the project.
The Approved Project
The project has received City of Murrieta approval. The approved project consists of three stories of retail and office space comprising of 51,569 rentable sq. ft. including a roof top restaurant and bar, and 113 parking spaces. Additional parking spaces will be shared with a neighboring property and through public on street parking. This project approval allows for immediate progress to construction without any further discretionary approvals (construction documents are in process).
Regulatory Context
The site is zoned Mixed Use, allowing incentives for development consistent with the Downtown Master Plan including reduced fees, reduced setbacks and flexible parking requirements.
Construction Drawings
Construction drawings are designed by JG Stouse Constructors, Inc. Anticipated date for construction permit issuance is on or about January 2020. Site improvement plans are prepared by Mayers and Associates Civil Engineering Inc. It is expected that the site improvement plans will be completed and approved prior to the expected construction permit approval so site work can commence in advance of approved building plans.
Mixed Use Concept
The project has been designed consistent with building codes and underlying zoning, to operate as a three-story commercial mixed-use project with restaurant, office, and retail uses. The ground floor offers open deck seating for restaurants fronting on Washington avenue and a separate lobby providing two elevators and stairway access for upper level office and restaurants. Walk through areas provide easy access to parking and street frontage restaurants. The third floor level includes view decks for outdoor dining and private offices.
Marketability of Office, Retail and Restaurant Space
Downtown Murrieta provides a blend of character, history and convenience offering a unique niche discerning tastes of today’s commercial tenants. The two most comparable properties are adjacent and immediately across the street on Washington Avenue. These are similar mixed-use properties in the area at or close to 100% occupied (as of the time of this writing). The subject property offers better design features such as covered patio and roof top dining, private view decks for third floor offices and superior exterior architectural features. Murrieta’s Downtown is the popular destination for growth of restaurants and office space having a unique identity that sets it apart from the typical commercial space. The Murrieta area tourism market has been growing at a record pace. Evidence of this is Wyndham Timeshare’s recent purchase of the thirteen-acre parcel located at the opposite corner to Downtown Marketplace where approximately 160 condominiums are planned as timeshare units. Additionally, the Northeast corner of this primary interesting is anticipating development of a 100+ room hotel.
Business Plan
The Plan is to construct and operate the project for production of income over a multi-year period.. During the operating period, cost segregation of depreciable assets will minimize taxable income. Significant cash distributions, with entirely or substantially deferred federal tax liabilities, are anticipated. The Manager may choose to liquidate the property at any time but anticipates holding the property into perpetuity, though investors in the project will have the right to exit at the end of year five and every two years thereafter.