5900 Butler Ln
Scotts Valley, CA 95066
Flex Property For Sale

5900 Butler Lane in Scotts Valley. This 35,321 square foot R&D building is leased to a great mix of seasoned tenants with varying lease terms and offers investors the rare opportunity to acquire a quality, stabilized asset in Santa Cruz County, with an attractive in place cap rate of approximately 7.43%, with upside potential to increase the cap rate to close to 9% in the near term. PRICE: $4,000,000 CAP RATE (IN-PLACE): 7.43% CAP RATE (PROFORMA): 8.78% TOTAL BUILDING SQUARE FOOTAGE: 35,321 SF LAND SIZE: 2.33 ACRES INVESTMENT HIGHLIGHTS Attractive Return - Stabilized asset with a 7.43% cap rate in Santa Cruz County. Upside Potential – The investment provides investors with significant upside potential through the lease-up of the one underutilized suite. New Roof - New Metacrylics roof (9/2017) with a 20 year NDL material and labor warranty. Remaining Lease Term - The leases in place offer investors a stable, seasoned, in-place Income stream. Rent Increases - Most leases are structured with annual rent increases that offer an excellent hedge against inflation. Priced Well Below Replacement Cost - At only $113/sf Convenient Access – The property is easily accessible to Highway 17 and within close proximity to Scotts Valley Drive. Amenities - The property is within walking distance from numerous retail amenities along Scotts Valley Drive and nearby shopping centers. Demographics – Scotts Valley is an affluent community that boasts an estimated median household income of $101,837 and an estimated population of 11,858.