111-10 - Applicant's retail consultant analysis.pdf
Meacham/Oppenheimer, Inc. CORFAC International
Commercial Brokerage
Investment Sales
Property Management
8 North San Pedro Street, Suite 300 | San Jose, CA 95110
Phone: 408-378-5900 | Fax: 408-378-5903 | www.moinc.net
April 3, 2014
Ron Tate, President
TATE DIVERSIFIED DEVELOPMENT, INC. 22 S. Santa Cruz Avenue, 2nd Floor Los Gatos, CA 95030
REFERENCE: 10121 NORTH FOOTHILL BLVD
FORMER GAS STATION
CUPERTINO, CALIFORNIA
Dear Mr. Tate:
Thank you for selecting Meacham/Oppenheimer, Inc., as your consultant in investigating the viability of the reuse of the property commonly described as 10121 North Foothill Boulevard,
Cupertino, California, hereinafter referred to as (the “Property”) as some form of retail
commercial use.
Meacham/Oppenheimer, Inc. is a full-service commercial real estate brokerage and property management company serving Silicon Valley and all 13 Bay Area Counties from its San Jose
headquarters. Earlier in its 30-plus year history Meacham/Oppenheimer Inc. focused on retail
brokerage and development and later expanded to include office, industrial, R&D and land sales,
representing both owners and tenants in property leasing and investment sales.
The company prides itself in providing the highest level of service to all its clients with integrity
and professionalism. The firm emphasizes teamwork among its experienced and veteran agents,
a high degree of accountability and its entrepreneurial culture as the cornerstones for delivering a
positive client experience and successful execution of each real estate assignment.
I have been in the retail commercial real estate business for 27 years. I am very familiar with the
Cupertino retail market as I have leased over 300,000 square feet of commercial retail space in
my 27 years. Most recently I have leased the Cupertino Crossroads, the entire center for Alex
Byer of Byer Properties.
The Property is not viable as retail commercial use for many reasons but a major reason it is
situated on a boulevard that by all reasonable criteria does not have enough vehicular or
pedestrian traffic to support a stand-alone retail development. The low population of this
immediate area is such that it could not support any additional retail. Additionally, there is
virtually no available residential land to accommodate any measurable new residential development to increase a new customer shopping population. All of the retail in the immediate
area consisting of: (a) service station on the hard corner of Foothill Boulevard and Stevens
Ron Tate, President
TATE DIVERSIFIED DEVELOPMENT, INC.
April 3, 2014 Page 2
Creek Boulevard; (b) the liquor store on the hard corner of Foothill Boulevard and Stevens Creek Boulevard produce very low sales revenues by all reasonable measures; (c) the retail strip center just south of Stevens Creek Boulevard and S. Foothill Boulevard in recent times has never been
successful having vacancies and below market rate rents.
To further emphasize the further lack of commercial viability of the Property it is not situated on a commercial hard-corner which is one of the most desirable locations for neighborhood commercial development. A commercial hard-corner allows a customer to gain easy ingress and
egress in a convenient and safe manner having the protection of a signalized intersection and
being able to either turn right or left out of a commercial property. The Property by all
definitions is not on a hard-corner. It is an interior parcel of which it would only allow a customer the option of being able to turn right out of the Property without having to cross N. Foothill Boulevard which does have a traffic controlled intersection thus allowing the customer
to be able to turn left out of the property conveniently and safely. The property is too close to
the signalized intersections of Foothill Boulevard and Stevens Creek to be able to justify an
additional stop light at N. Foothill and Silver Oak Way. For many other reasons other than those mentioned above we could not recommend another
commercial development on the Property, even if the developer would be willing to offer an
extended period of free rent and below market rate rents to attempt getting a commercial user to
lease or purchase the Property. A commercial tenant and/owner of commercial property the rent and/or the cost of ownership is a small component of the users overhead. The cost of leasing or ownership is a minimal component compared to the cost of wages, insurance, cost of the good in
trade, etc.
Please feel free to contact me at your convenience if you require further information. Sincerely,
MEACHAM/OPPENHEIMER, INC.
David Taxin, Partner
DRE# 00983163