High Exposure Retail Spaces Available in Gateway Plaza

Gateway Plaza is located on the Southwest corner of Union Ave and 4th St. The Shopping Center is located in Downtown Bakersfield. The Shopping Center is North of CA-58, South of California, West of King St, and East of Chester Ave. The Shopping Center is surrounded by existing residential neighborhoods and is in close proximity to many National and Local Retailors including Dollar General, Jack in the Box, Little Caesars Pizza, Subway, Walmart, Panda Express, Taco Bell and many more!Value-Add Opportunity with Existing Income: Prime Union Ave & 4th St corner location offering ±32,635 SF multi-tenant retail shops on ±2.94 acres in Downtown Bakersfield, CA. Offers (13) easy-to-rent retail spaces leased to long-term tenants - including Family Dollar - on professionally drafted Triple Net leases. The property sits comfortably in one of Bakersfield’s primary retail area, and with its close proximity to major highway access easily accessible to motorists. Just over 3 miles away, is Valley Plaza Mall featuring over 170 retailers and drawing consumers from surrounding communities. Great visibility, convenient parking & easy access to CA-58 on/off ramps. Many front parking spaces available, and excellent existing corner signage. The value-add opportunity consists of addressing the under-market rent of (7) tenants, extending lease length over the next 6-12 months for the (2) tenants already at a market rates, and leasing the remaining (4) units totaling 5,095 SF (15.5%) of the property. Value-add opportunity with actual rents of $302,400/year collected plus upside potential. After addressing the vacancies alone, the annual income is $378,816 (126% upside). After addressing the undermarket units, this deal has potential annual income of $445,944. 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 9.93% Cap rate, 17.93% cash-on-cash return when leveraged with 30% down, which produces a 2.18 Debt Coverage Ratio! Luxyl Beauty Supply (#101B) lease was signed in 2019 where they improved the space significantly on their own dime. The lease increased every 6 months upfront, increases again to $4,000 on 1/2022, then their optiuon allows for 3% increases per year thereafter. Family Dollar (#101) went dark and is guaranteeing rent until 06/30/2023; the Landlord is allowed to release the space which is worth more than they are paying. Barber Shop (#103) signed a lease in 2012, has been an excellent tenant, and is currently MTM at a below market rate.Smoke Shop (#207) signed a lease during the ’20 pandemic and experiences 5% increases per year. Ana's Frutas (#209) also signed a lease during the ’20 pandemic and experiences 5% increases per year. The Water Store just signed a lease until 01/01/2023 with 5% increases per year.The Gateway Plaza is well-located on one of Bakersfield's busiest retail corridor - California Avenue - historically serving the vast majority of Bakersfield residents. There are currently (6) suites available ranging from ±921 SF - ±11,550 SF of end-cap and inline retail shop spaces. The center is in close proximity to Freeway 58 and California State University, Bakersfield. With the shopping center being surround by National retailors there is a tremendous draw to the area. ±921 SF - ±11,550 SF of retail space available.