A 33,000 square-foot technical campus in Clovis, Calif., has hit the market with an asking price of $11.4 million, or approximately $345 per square foot. Referred to as the Institute of Technology, the building is fully occupied and serves as an educational campus offering a variety of career training options, according to a listing by Newmark.
The property is located at 564 W. Herndon Avenue on 4.5 acres, and was built in 2005. As well as the building, the investment opportunity also includes the purchase of adjacent land which could hold up to a 10,000 square-foot building. The building is currently owned by an entity associated with Hines Clovis LLC, which acquired it in 2007 at an undisclosed price.
According to Newmark, the vocational school is the only tenant at the property, with a lease spanning the next ten years. With its current tenant, the property offers an annual cap rate of 6.24 percent.
The offering memorandum shows that the property is of high value to the surrounding community due to the technical and educational services its tenant provides. The Institute of Technology has been around since 2004 and has campuses in Clovis, Modesto, Redding and Salem. Programs at the Clovis campus currently include allied health, network technology, computer technology, computerized accounting, web/graphic design, culinary arts, and more.
“At IOT Clovis, the mission is to inspire, support, and empower students through education and career development. IOT Clovis’s location offers Barbering, Cosmetology, Culinary, Criminal Justice, Medical, and Technical programs. Their programs are specifically designed to prepare students for an in-demand career with employers who are looking for highly skilled and technology-savvy professionals,” an offering memorandum for the property states.
Clovis is located outside of Fresno in the heart of California’s Central Valley. The region is primarily agricultural, producing more than 250 different crops at an estimated value of $17 billion per year. Despite this, Clovis’ population is continuing to grow, with a current population of 114,584, roughly a 19 percent increase since 2010. In addition, homes in the immediate vicinity average $324,600 and the average household income is approximately $77,904 per year. The nearby Clovis Unified School District also enrolls an estimated 43,000 students.
“The city’s population has more than doubled since 1990, reaching the current level of approximately 115,000. Today, Clovis continues to plan and adapt to meet the needs of its present and future citizens. The City’s economic base consists of retail sales and services and light manufacturing. Availability of housing, quality hospital care, excellent schools with modern facilities, responsive safety services, a mild climate, access to varied recreational opportunities, and strong community identity all contribute to Clovis’ reputation as a great place to live,” the offering memorandum states.
Newmark did not respond in time to comment on this story.
