John Leyvas = 1 =

Transcription

1 John Leyvas = 1 =

2 Executive summary Qualified investors are extended the opportunity to acquire Sequoia Grove Apartments in, California. Built in 1967, the well-maintained community of 72 units offers a superior location in the San Francisco/East Bay Area. The community consists of exclusively one bedroom/one bath units floor plans of approximately 650 square feet This investment opportunity provides residents a central location with convenient access to shopping and major East Bay thoroughfares. The community features new dual pane windows, newer appliances and flooring, light fixtures, updated bathrooms and secure access. Approximately 58 units (80%) have been remodeled, per the unit upgrades (see page 8). This Offering affords a regional investor the opportunity to own an asset in a popular market with strong growth potential in both the income stream and investment value. = 2 =

3 Rohnert Park Glen Ellen Cotati Vacaville TY UN CO TY UN PA CO NA MA NO SO 12 Eldridge Boyes Hot Springs El Verano NAPA COUNTY SOLANO COUNTY Napa Sonoma 101 Fairfield Suisun City Green Valley Temelec Petaluma SO NO M A CO MA UN RI TY N CO UN TY b ay a r e a m a p American Canyon Rio Vista 37 Novato Vallejo Santa Venetia Bayview Montalvin Tara Hills Kentfield Larkspur Corte Mill Valley Madera MOUNT TAMALPAIS STATE PARK Muir Beach San R afael / Richm ond B ridg Tamalpais -Strawberry Homestead Valley GOLDEN GATE NATIONAL RECREATION AREA Port Crockett Costa San 80 Pablo e Richmond 580 Hercules Pinole Orinda Colma Byron 680 Moraga Ashland San Francisco Bay San Cherryland Lorenzo Highlands Baywood Park o Mate San Fairview Pleasanton ge Brid Union City 92 Half Moon Bay Redwood Shores Belmont 101 San Carlos Redwood Emerald City 92 m Du n rto ba i dg Br Sunol Fremont e Newark 84 ALAMEDA COUNTY North Fair Oaks East Menlo Palo 82 Park Alto Atherton Palo Lake Hills 35 STANFORD UNIVERSITY Woodside Stanford Portola Valley SANTA CLARA COUNTY 880 Los Altos 280 Mountain View Milpitas MOFFETT FEDERAL AIRFIELD 237 Sunnyvale 101 Alto TY UN CO Y RA NT LA O U AC OC N T TE SA MA N SA Hills Livermore Hayward SAN FRANCISCO INTERNATIONAL AIRPORT El Granada TY OUN TA C COS TRA Y CON T N COU ED A ALAM Dublin Castro Valley San Foster Hillsborough Mateo City Montara Blackhawk Camino Tassajara San Ramon 580 OAKLAND INTERNATIONAL AIRPORT Millbrae Burlingame 1 Diablo Danville South San Francisco San Bruno Discovery Bay Alameda Broadmoor Brentwood MOUNT DIABLO STATE PARK OAKLAND Brisbane Daly City Clayton Los Altos MINETA SAN JOSÉ INTERNATIONAL AIRPORT Santa Clara Loyola 680 Cupertino Saratoga 35 East Foothills Alum Rock SAN JOSE JOSEPH D GRANT COUNTY PARK Buena Burbank Vista Fruitdale 87 1 Knightsen Alamo Emeryville Piedmont Waldon Walnut Lafayette Creek 24 UC BERKELEY SAN FRANCISCO Antioch Pleasant Hill Berkeley 80 Oakley Martinez BRIONES REGIONAL PARK Bethel Island Pittsburg Concord Albany idge Bay Br El Sobrante El Kensington Cerrito Belvedere Sausalito Moss Beach 4 East Richmond Heights Tiburon Pacifica Vine Hill Golden Gate Bridge PACIFIC OCEAN Bay Point Rodeo San San Anselmo Ross Rafael Stinson Beach 780 Benicia San Pablo Bay 101 Lagunitas Forest Knolls San Geronimo Woodacre Black Point Green Point Lucas Valley Marinwood Bolinas Elmira 85 Campbell Seven Trees 17 Monte Sereno Los Gatos SAN MATEO COUNTY SANTA CRUZ COUNTY 101 BIG BASIN REDWOODS STATE PARK Lexington Hills Boulder Creek Morgan Hill 17 Ben Lomond Felton SA Scott Valley FOREST OF NISENE MARKS STATE PARK Day Valley SA San Martin NT NT A AC CR LA UZ RA CO CO UN UN T TY Y =3= Bay Area - Z Base 2-08

4 Executive summary LOCATION: Sequoia Grove Apartments enjoys quick access to major Bay Area transportation arteries, directly connecting it to San Francisco, the East Bay, the North Bay and the Silicon Valley. There are abundant retail conveniences nearby, outdoor activities, and entertainment venues. The location offers easy proximity to central, BART and regional public transportation. It is just a few blocks from a major East Bay shopping venue, Bayfair Mall, and is within walking distance of numerous shops and restaurants. SIGNIFICANT RENTAL UPSIDE: Based on recent surveys of competing rental communities in the immediate submarket, Sequoia Grove Apartments appears to have for potential for moderate rent increases in the near term. Occupancy is at 98% and demand for apartments in the City of is expected to remain strong over the next investment period. CONDITION AND AMENITIES: Sequoia Grove Apartments has been well maintained and managed by the current owners for over 20 years. A moderate upgrading program has been completed including dual pane windows, newer appliances and flooring, as well as refinished wood cabinetry, faux granite countertops, light fixtures and six-panel interior doors. The exterior of the Property has been well maintained by the owner. Parking lot refinished in 2012, soft story seismic upgrading to the state and city code. Most decks and railings height raised to state and city codes. GROWTH POTENTIAL: The quality of improvements and high barriers to new construction will contribute to appreciation of the property over the next investment period. With the anticipation of the Kaiser campus (estimated year of completion in 2014), Kaiser will have 2,500 employment opportunities between the Hayward and medical offices. = 4 =

5 Amenities Map BAYFAIR MALL Blvd GREEN HOUSE MARKET PLACE 238 = 5 =

6 PROPERTY INFORMATION PROPERTY ADDRESS: Bancroft Avenue, CA CONSTRUCTION SUMMARY: Year of Completion: 1967 Rentable Building Area: 46,800 Square Feet Numbers of Stories: Two and Three SITE SUMMARY: APN: Lot Size: 077E Acres ASKING PRICE: Asking Price: $9,900,000 Price Per Unit: $137,500 Market CAP: 7.40% Market GRM: 8.55 Current CAP: 5.76% Current GRM: = 6 =

7 Property overview The community of Sequoia Grove Apartments consists of 72 One Bedroom/One Bathroom units in, California. The current owners have carefully maintained the Property for over 20 years and have undertaken moderate upgrades, including new dual pane windows, six-panel interior doors, newer appliances and flooring. Approximately 80% of the units have been upgraded. Address: Bancroft Avenue,, CA Year of Completion: 1967 Rentable Building Area: Number of Buildings: Stories: Framing: Roof: Exterior Walls: Interior Walls: Windows: Site Survey APN#: Acreage: HVAC: Utilities: Parking: 46,800 (est.) Two Two and Three Wood Flat Built-Up Stucco/Wood With Stone Accents Painted Textured Drywall Dual Pane Vinyl 077E Acres Electric Wall Heat Individual Gas and Electric Meters 87 Parking Spaces (56 Open, 31 Tuck Under) = 7 =

8 property overview UNIT UPGRADES: 1. New Counter Kitchen 2. New Counter Bath 3. Re-glazed Counters 4. New Kitchen cabinets 5. Re-decorated cabinets 6. vertical blinds 7. Vinyl extended 8. carpeting 9. appliances 10. microwave 11. dishwasher panel doors 13. bath fixtures 14. brushed nickel hardware 15. tub refinished 16. toilet replaced 17. smoke alarms 18. marble shower 19. Crown molding Note: in all categories there may be minor deviations. Example: All appliances may not be new in a particular unit because the existing applicance may have been newer already or a kitchen counter may not be replaced because it was already refinished. Category A: The Ultimate New kitchen cabinets- crown molding (14 Units) etc. Items #1 thru #19. category B: Same as A except for #4 (13 Units) category c: Same as A except for #19 and #4 (16 Untis) category d: Same as A except for #19, #1, #4, #3 (17 Units) category e: Generally Long Term Residents. Basic upgrades YES- but (12 Units) remodel items such as #19, #2, #4, #5, #11, #12 * Estimate 16 more units will move up to Category A by June 2013 bringing Category A to 42%. Great potential for increased Rental Income. = 8 =

9 property overview Sequoia Grove Positives: A. Convenient Location- Minutes to Bayfair BART Station and Bayfair shopping. Easy access to 680 and 880 freeways. Minutes by bus to downtown shopping, restaurants, Library etc. Besides schools and Post Office. B. All Units Above Average Size- Solar heated domestic water. Solar heated pool with saunas and restrooms. Energy friendly double pane windows and patio doors. Cheerful laundry room. Lots of covered parking. C. Upgraded Interiors: See Interior Remodeling- Upgrading Categories. D. Major Exterior Upgrading and Redecorating- See data on Major Refurbishing- Upgrading to Building and Seismic Codes. = 9 =

10 DEMOGRAPHIC Demographic 0-1 mile 0-3 mile 0-5 miles 2012 Total Population... 23, , , Average Household Income... $62, $70,920...$67, Total Daytime Population... 9, , ,936 = 10 =

11 R E NT c o m p a r a b l e s m a p R E NT c o m p a r a b l e s 6 3 = 11 =

12 RENT comparables 1 Property Name/Location Sequoia Grove Bancroft Avenue Phone: (510) SUBJECT Prop. Size Unit Mix Unit Type Size/SF Monthly Rent Low $/SF High $/SF Br/1b 650 $1,295 $1,295 $1.99 $1.99 Year Built: Metro Park Apartments (formerly Cabot Bay) Bancroft Avenue Phone: (510) Year Built: Studio 40 1Br/1b 50 2Br/1b $1,195 $1,450 $1,495 Rent Survey Date Est. Occupancy $1,195 $1,450 $1,495 $2.66 $2.42 $1.74 9/17/ % $2.66 $2.42 $1.74 Rent Survey Date Est. Occupancy 9/17/ % 3 Hamlet, The th Avenue Phone: (510) Year Built: Br/1b 40 2Br/1b 50 2Br/2b $1,225 $1,371 $1,685 $1,225 $1,411 $2,718 $2.04 $1.71 $1.98 $2.04 $1.76 $3.20 Rent Survey Date Est. Occupancy 9/17/ % 4 Redwood Grove 1600 Grand Ave Phone: (510) Year Built: Br/1b 5 2Br/2b $1,350 $1,495 $1,495 $1,650 $2.08 $1.66 $2.30 $ Racquet Club 2600 Boulevard Studio 1Br/1b 2Br/2b Year Built: 1980 Phone: (510) ,075 $985 $1,225 $1,605 Rent Survey Date Est. Occupancy $1,025 $1,225 $1,605 $1.88 $1.80 $1.49 9/17/ % $1.95 $1.80 $ Marina Breeze Doolittle Drive Phone: (510) Year Built: Br/1b 2Br/1b 2Br/1b TH 2Br/1.5bTH $1,175 $1,275 $1,375 $1,375 Rent Survey Date Est. Occupancy $1,175 $1,275 $1,375 $1,375 $1.75 $1.63 $1.72 $1.67 9/17/ % $1.75 $1.63 $1.72 $ Seventy Harlan 70 Harlan Street Phone: (510) Year Built: Studio 1Br/1b 1Br/1b+Den 2Br/1b $1,035 $1,245 $1,450 $1,450 Rent Survey Date Est. Occupancy $1,120 $1,500 $1,800 $1,800 $2.07 $1.92 $1.81 $1.55 9/17/ % $2.24 $2.31 $2.25 $ Bancroft Towers Bancroft Avenue Phone: (510) Year Built: Br/1b 20 2Br/1b 1 2Br/1bth/loft ,010 $1,100 $1,400 $1,700 Rent Survey Date Est. Occupancy $1,175 $1,450 $1,700 $1.69 $1.73 $1.68 9/17/ % $1.81 $1.79 $1.68 Rent Survey Date Est. Occupancy 9/17/ % Total Units Surveyed: % Overall Occupancy Rate = 12 =

13 S a l e s c o m pa r a b l e s m a p = 13 =

14 sales comparables COMPARABLE SALE SURVEY # Property Name Units Sale Price $/Unit $/S.F. GRM CAP Sale Date Age 1 Casa Grande 133 N Temple Milpitas 120 $23,250,000 $193,750 $ % 08/14/ Alpine 1282 Mattox Rd Hayward 57 $6,500,000 $114,035 $ % 12/15/ Fremont Gardens (Briarwood) 4200 Bay Street Fremont Property had a large prepayment penalty. Lakeside Village 4170 Springlake Dr. Affordable Housing Buyer. Paseo Park Paseo Padre Pky. Fremont 160 $27,800,000 $173,750 $ % 12/21/ $110,000,000 $130,952 $ % 10/28/ $31,900,000 $238,060 $ % 11/1/ Regency Tower rd Avenue Oakland 178 $31,000,000 $174,157 $ /1/ Woods, The High Street Fremont 160 $25,217,000 $157,606 $ % 12/23/ = 14 =

15 OPERATING INFORMATION SEQUOIA GROVE APARTMENTS OPERATING INFORMATION WITH CURRENT RENTS PRICE AND TERMS VALUE INDICATORS Current Market Sales Price $9,900,000 G.R.M Downpayment $3,960,000 40% CAP RATE 5.76% 7.40% First Loan* $5,940,000 60% Cost/Unit $137,500 $137,500 Seller Note Cost/Sq.Ft $ $ *New fixed rate loan, amortized over 30 years, due in 7, at 4.5%. INCOME & EXPENSE SUMMARY (annual) Current Market Gross Scheduled Income $987,180 $1,157,760 less: Vacancy Factor (5%) (49,359) 5% (57,888) 5% Gross Operating Income 937,821 1,099,872 less: Expenses (367,345) 37.2% (367,345) 31.7% Net Operating Income 570, ,527 less: Debt Service (361,165) (361,165) Pre-Tax Operating Cash Flow $209, % $371, % plus: Principal Reduction $95,826 $95,826 TOTAL RETURN $305, % $467, % INCOME DETAILS (MONTHLY) # of Approx. Units Unit Type Unit Size Current Monthly Rent Market Rents $/sf 72 1Br/1ba 650 $1,095 $1,250 $1,325 $ ,800 Total Monthly Scheduled Rents $81,185 $95,400 Laundry / Other Income/Rubs $1,080 $1,080 Total Monthly Income $82,265 $96,480 EXPENSE DETAILS (Broker's Proforma) Property Statistics Real Estate Taxes $112, % (E) APN: 077E Special Assessments $21, % (A) Insurance 15, % (A) EFFECTIVE AGE:43 Years Utilities (PG&E, Water, Sewer) 31, % (A) ROOF TYPE: Emulsion Roof Services (Garbage, Landscape, Pl, 19, % (A) COUNTY: Alameda Management, Leasing & Admin. S 29, % (A) Maintenance Salaries 14, % (E) Off-site Manager 28, % (E) Expenses Represent Rent Allowance 15, % (A) Marketing, Leasing, Acct. & Legal 8, % (E) 37.2% of Current G.S.I. Replacement $175 12, % (E) $5,102 per Unit Maintenance, Repairs & Elev. 17, % (E) $7.85 per Sq.Ft. Redecorating/Turnover 21, % (E) Security/Telephone 2, % (E) General, Admin. & Office Supplies 9, % (E) Payroll/Wk. Comp. & Health 8, % (E) (E)= Estimated Total Expenses $367, % (E) (A)= Actual = 15 =

16 parcel map = 16 =

17 John Leyvas Senior Vice President Lic # Eden Landing Road, Hayward, CA Mission College Blvd., Suite #120, Santa Clara, CA 95054