2041 1st Street, Downtown Livermore
After falling out of a sale contract, this charming retail building is back on the market. Formerly the antique store Cranberries, it has been sitting vacant since last summer (maybe even longer). The building is located next to Baughman’s on the South side of the street. The guys from the First Street Alehouse were the last to pursue the building, as well as the land parcel next door which is owned by the City. They had been openly discussing plans for the move of the restaurant to the building and using the land as an outdoor beer garden.
The space is approximately 2,350± square feet and is mostly open space with few demising walls. In order to turn this into a restaurant there would have to quite a bit of money invested, but is an ideal size and location for a downtown restaurant. The building is advertised to have seismic completed, but with any downtown building power is going to be the real issue depending on the type of business that occupies. The zoning does allow for many uses including salon, ice cream, retail stores, and so forth. The owner is willing to carry a loan on the property which could prove to be very valuable in this market. SBA financing is a great option, but traditional lending is still frozen for the most part.
Lease Rate: $4,000 per month, NNN – The estimated net costs are $2,000 per year (keep in mind if the building does sell, the nets will go up dramatically)
All in price is about $1.77 per square foot, per month which is well aligned with the current market in Livermore.
Sale Price: $998,500 or $425 per square foot– a bit steep in my opinion. The only building in downtown that has sold this year was 56 S. Livermore at $225 per square foot. Keep in mind that building was a distress sale, almost twice the size of this building, not directly on First Street, and needs a lot of work. Taking this into consideration and given our current economy, I have a hard time valuing any building in downtown over $350-$375 per square foot.