Bank of America: Salinas, CA

• High bank branch deposits: $317,651,000 as of June 30, 2017(1) (up from $303,086,000 in 2016)(1)
• Below market rent: Current annual rent is $9.00/SF NNN, which is estimated to be 33% below market (market rent is estimated to be $12.00/SFNNN(1)
• Busy bank branch situated at a four-way signalized hard-corner in Downtown Salinas (currently undergoing major redevelopment through the city’s Downtown Salinas Vibrancy Plan) with direct frontage along Main Street, which has average daily traffic counts of 19,899 
• Strong retail banking corridor: Chase Bank, Comerica Bank, Rabobank and Pacific Valley Bank (all located within walking distance of the subject property) are each ranked #1 in deposits for their respective branches in Monterey County(1)

The subject property is a single-tenant, freestanding Bank of America building situated at a four-way signalized hard-corner in Downtown Salinas. It has direct frontage along Main Street, one of the city’s main retail corridors with average daily traffic counts of 19,899. The area is currently undergoing major redevelopment through the city’s Downtown Salinas Vibrancy Plan. The city plan calls for the creation of an urban environment that will add new residential housing, businesses and recreation/cultural activities to create a vibrant, family-friendly downtown. Bank of America has been operating at this location since the late 1960s and should benefit from a revitalized Downtown Salinas.

This busy Bank of America branch has strong deposits of $317,651,000 and is situated on a large, 1.03 acre lot. (1) Bank of America is currently paying $9.00 NNN per square foot annually, which is estimated to be 33% below market. (1) This branch is ranked #1 in deposits among Bank of America branches in Salinas and has the second highest deposits among all Bank of America branches located in Monterey County. The subject property is adjacent to a Chase Bank, which has over $242 million in deposits, the highest among all Chase Bank branches in Monterey County. The Comerica Bank, Rabobank and Pacific Valley Bank branches (all located within walking distance of the subject property) are also each ranked #1 in deposits for their respective branches in Monterey County. (1)

The lease is corporately guaranteed by Bank of America, N.A., which maintains a Standard & Poor’s “A+/Stable Outlook” investment grade credit rating. At Closing, Bank of America, N.A. will execute a new, 5-year initial lease term that expires on June 30, 2023. The lease has six (6), five-year renewal option periods with a 10% rent increase in the first renewal option followed by 5% rent increases in each renewal option period thereafter. Landlord is reimbursed for repairs, maintenance fees, insurance, real estate taxes, and the majority of property management fees. (2)

(1)Lot size is approximate. Bank branch deposits shown on this page are from the FDIC website. Buyer will need to conduct their own due diligence to verify actual lot size, bank branch deposits and if current rent is actually below market rent. Marcus & Millichap and its affiliates make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Buyer must conduct their own due diligence.

(2)Tenant has the Right of First Offer on Sale. During each renewal option, Tenant has the right to renewal all or a portion of the Leased Premises. Please contact the listing agent for additional details concerning the Right of First Offer on Sale, renewal option periods and Tenant reimbursements