Commercial
Half Moon Bay
Classic California Beach Town
Development Opportunity
The town of Half Moon Bay is a small charming beach community centrally located between San Francisco to the north and the Silicon Valley to the south. Once known for Portuguese farmers, Artichokes, Pumpkins and Bootleggers. The once sleepy town now has a World Famous Ritz Clairton Resort Hotel, golf courses and many upscale shops and restaurants, while still retaining its old country charm.
Half Moon Bay has some of the highest barriers to entry in the country, with the California Coastal Commission combined with Half Moon Bay’s inherent strict opposition to development.
The Coastal Commission has recommendation a change in use of the site from agricultural to a
mixed use development.
The Commission has recommend allowing for up to 125 units of residential to be built on approximately 15 acres of the site. The remaining 20 acres fronting Hwy-1 is designated for commercial use of up to 130,000 sf of commercial space and a 5 acre park.
Half Moon Bay is a very unique place in the San Francisco Bay Area. Unlike the majority of the cities, “Half Moon Bay is on the other side of the hill” nestled up against the western side of
Coastal Mountain Range and rolling out to the Pacific Ocean. At times it feels like a place that time has forgotten. It has a very quaint and nostalgic feel, especially on the ride into town.
There are many road side attractions and curiosities. It’s an agriculture town with many fruit stands and artisan displaying their wares.
Jurassic Park
Winery / Tasting Room and Glass blowing
Half Moon Bay is also a fishing village with a long maritime heritage that included Rum Running during prohibition.
Half Moon Bay Development Plan
The land cost is $30 Million, for 35.58 acres, (less than $1Million per acre)
Residential Proforma
Land cost attributed to the residential development $15 Million or $120,000 per lot.
Estimated infrastructure cost $40,000 per lot X 125 = $5,000,000
Water meter cost $2Million
Cost of 1,500 sf two story manufactured home is $200,000, including site prep.
Total cost of 125 homes = $47Million or $376,000 per home.
Average price psf. is $463. We can estimate the homes sell for $460 psf X 1,500 = $690,000
Minus the costs of $376,000 = $314,000 gross profit per home X 125 = $39 Million profit.
Minus Sales commission of $2Million = $37Million in profit.
Conceptual 4 Unit Townhouse Site Plan
Commercial Proforma
Land cost attributed to the commercial development is $15 Million
Estimated infrastructure cost $5Million
Water meter costs $2Million
Shell construction cost $125 psf X 130,000 = $16, 250,000
Tenant improvement allowance $25 psf X 130,000 = $3,250,000
Leasing commission of $1Million
Total cost for shopping center development $42.5 Million
Rents
Grocery store: $1.25-1.50 psf 35,000-55,000 sf (40,000 sf @ $1.40 psf) =$648,000 per yr.
Drug Store: $2.00-$2.50 psf 5,000-15,000 sf (10,000 sf @ $2.25 psf) = $270,000 per yr.
Inline stores : $2.50-$3.50 psf 1,000- 5,000 sf (70,000 sf @ $3.00 psf) = $2,520,000 per yr.
*Allowing for a 7.7% vacancy factor* NET OPERATING INCOME = $3,798,000 per yr
The value of the center at a 5% cap = $75.9 Million
Potential profit of $33.4 Million from the sale of the Center Plus $37 Million from the residential sales = $ 70,000,000 in Profits. That works out to a 78% return on total cost.
Conceptual Retail Site Plan
USA
- Name : Robert G Quintero
- Email : RGQuintero@aol.com
- Mobile : (650) 208-3