Introduction of Ordinance to Approve
Lease for a Portion of Building 169 with
the Pacific Pinball Museum, a
California Nonprofit Corporation
January 7, 2025
Building 169
Natel Energy
• Commercial warehouse building
• Divided into two suites
• Pacific Pinball Museum currently occupies
Suite 101
• Suite 102 is currently vacant, was occupied
by a retail tenant, William Sonoma
• Suite 102 is actively marketed for lease
Building 169 is located at 1680 Viking Street, Alameda Point Building 169 is located within the Enterprise District, and depending on market conditions and City Council direction, the location is adjacent to the most probable footprint for near-term development in the area.
Pacific Pinball Museum (PPM)
3 Pacific Pinball Museum (PPM) is a 501(c)3 non-profit organization founded in 2002 • Mission is to inspire an interest in science, art and history through pinball, and to preserve and promote this important part of American culture
• Public museum is located at 1510 Webster Street in Alameda • Over 100 pinball machines from the 1940’s to present day available to play
HOURS OF OPERATION:
MONDAY: CLOSED for Game Repairs
TUESDAY - THURSDAY: 11AM - 9PM
FRIDAY & SATURDAY: 11AM - 10PM
SUNDAY: 11AM - 9PM
• No quarters required!
Leased Premises
4 • Suite 101 contains 43,555 SF of rentable interior space plus non-exclusive exterior parking • Currently used as a warehouse and repair facility by Pacific Pinball for historic pinball machines and administrative functions
• PPM has been a tenant at Alameda Point since 2006 and relocated to Bld. 169 in 2017 • PPM sublicenses ~13,650 SF (or 31%) to Navier Boat, which designs, engineers, prototypes, tests and assembles electric hydro foiling watercraft
• Navier pays PPM monthly for the sublicense and shares in costs for utilities, fees and taxes • Navier’s occupancy is coterminous with PPM under the City’s master lease • No new interior or exterior improvements are contemplated as part of the new Lease Use: Warehouse, beverage distribution, food grade equipment leasing, maintenance and repair, beverage bottling, and retail fountain bar
Premises: Interior space plus non-exclusive vehicular access and parking & exterior yard area Term: twenty-five (25) months to be coterminous with adjacent leases.
Rent: $14,198 per month w/ 3% increase in year 2.
Tenant pays share of all services, utilities and taxes (including possessory interest taxes) As-is condition, no-rent credits
Lease Terms
Months Monthly Rent Annual Rent
1-12 $19,510 $234,120
13-24 $20,095 $241,140
25-36 $20,698 $248,376
Total over 36 months = $723,636
(NPV is approx. $650,000)
Plus, potential for sublease profit sharing
• Use: Warehouse, repair facility and related administrative functions • Premises: 43,555 SF of interior space, exterior non-exclusive parking • Term: 36-months with annual renewals (total of 3 years) • Monthly Rent: $19,510 or $0.45 PSF w/ annual 3% increases • Lease provides for profit sharing of 50% of PPM’s revenue above base rent derived for sublease/sublicensing
• Tenant is responsible for all utilities, taxes and fees • One-time Right to Terminate with six (6) months prior notice, offers flexibility for both parties
• Fair market value (FMV) warehouse lease rates elsewhere in Alameda Point are in the range of $0.70 to $0.85 PSF, lower rate reflects an adequate FMV for the shorter- term duration and termination right which provides the City flexibility for Enterprise District development
• Approve introduction of ordinance to execute a lease with Pacific Pinball Museum, a California Nonprofit Corporation
Recommendation
Circa 1935
Today
Building 169