Description

208 North Douty Street is a two-story, high-street retail property in downtown Hanford, CA, within the Hanford/Armona submarket. Its 21,450 SF of gross leasable area and Douty Street exposure give an investor a substantial downtown building with multiple tenant spaces.

Built in 1898, the freestanding Property combines ground-floor retail and office space with smaller rooms upstairs. Separate spaces and functional floor plans give an owner more than one leasing format to work with, while outdoor seating and a patio extend the ground-floor tenant offering. A city-owned parking lot behind the building and street parking support customer access. The Property occupies 0.26 acres and carries MX-D: Downtown Mixed Use zoning.

The Property sits on Douty Street north of 7th Street and south of 8th Street, near restaurants, services and other downtown businesses. Quesadilla Gorilla and Leonards Barber Salon flank its corner, while The Ivy Boutique and Dancers Edge are across the street. Fox Theater and Carnegie Museum are among the nearby landmarks. Access between CA-198 and CA-43 connects this downtown Hanford address with the wider Fresno market.

The asking price is $1,625,000, or $75.76 PSF. In-place rents are $84,804/year, with $31,075 in-place NOI and a 1.91% in-place cap rate. The stabilized figures are $177,188 NOI and a 7.96% cap rate, distinguishing the projected investment case from current income. For a buyer prepared to manage the leasing plan, the combination of smaller spaces, established ground-floor tenancy and downtown exposure provides a defined path to pursue that stabilized position.

Highlights

7.96% Cap & 7.96% Cash-on-Cash Return After Stabilized
Cash Cow To Produce $290K In Rents ($16.75/SF/Yr)
Functional Hard To Find Small Spaces
Easy To Rent
Proposed High-Speed Rail Station to Be Located in Hanford
Offers Long-Term Growth Potential Through Improved Accessibility
Long Term Tenants w/ Upside Potential Via Leasing
Quality Roof
Working HVAC's on Bottom Floor, & Functional Floorplans
Well-Known Freestanding Building w/ Douty Ave Exposure
Rear City Owned Parking Lot + Street Parking
Great Visibility
Convenient Location Between CA-198 and CA-43
Busy & Established Corridor w/ Quick Access to Downtown
Great Access & Visibility w/ Easy Highway Access
Quality Construction
Well Maintained
Economical Spaces
Ample Parking
Quality Tenants, & Great Exposure
Easy Access
Separate Suites
Multiple Configurations
Requires Little Management or Maintenance After Remodeled

Property details

Market: Fresno
Ground floor: Seven separate spaces described as 100% leased to long-term tenants on gross lease forms
averaging 983 SF per unit
Upper floor: Described as fully vacant with 32 small spaces
Rent roll vacancies: 30 numbered upstairs spaces marked AVAILABLE
Upstairs rooms: Majority have existing water/drain lines
Remodel estimate: 625000 total
including 10/SF ground floor and 60/SF upstairs
Remodel leasing assumptions: 100% occupancy at 2/SF full service upstairs and 1.15/SF downstairs
Stated remodel scenario: 2250000 all-in project cost, 10.77% CAP rate and 10.77% cash-on-cash return with 675000 down payment
Investment overview pro forma price: 2225000
Stabilization estimate: 6–12 months
with gross annual income of 290041.32
Potential expense pass-throughs: Water
Sewer
Trash and Gardening
Potential Quesadilla Gorilla lease renegotiation: Rear patio use and basement storage
Current annual gross income: 84804
Pro forma annual gross income: 290041
Current annual operating expenses: 53729
Pro forma annual operating expenses: 112853
Pro forma year-one cash-on-cash return: 7.96%
Current annual expenses: Insurance 9449
vacancy and capital reserves 8262
management 3000
water 2979
electricity and gas 855
alarm 600
internet 4200
janitorial 3900
pest control 984
Pro forma annual expenses: Insurance 9449
vacancy and capital reserves 35241
management 6000
water 2979
electricity and gas 30000
alarm 600
internet 4200
janitorial 3900
pest control 984