FOR SALE: THE REAL GARDENS 20 UNIT WITH HAP CONTRACT

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1 FOR SALE: THE REAL GARDENS 2701 S Real Road Bakersfield, CA Asking Price: $2,500,000 INVESTMENT HIGHLIGHTS FOR MORE INFO, CONTACT: ABU MAJUMDER Direct: (562) % HAP project base multi-housing Stable and predictable income and cash flow backed by the full faith and credit of the United States Government Well Maintained with many recent upgrades 90+ recent REAC scores Excellent unit mix: 5-3 bed 1.5 bath and 15-2 bed 1 bath Great location on a tree-lined nice street Approximately 4.5 miles from Bakersfield city hall In an approximately 60 days rental income shall increase an additional 4%+ straight across Turn Key operation 1

2 FOR SALE: THE REAL GARDENS SOUTH BAY AND SOUTHERN CITIES 20APARTMENT UNIT WITHMARKET HAP CONTRACT UPDATE JANUARY 2017 JUST LISTED PROPERTY property is at 2701 TRUTHFULDESCRIPTION: The 28 Units Los Angeles SRESPONSIBLE Real Rd. a multi-family home in Bakersfield, CA 28 Studios, No Rent Control It is surrounded by well-kept single famunparalleled $2,800,000 SERVICE WHICH IS communities. ily and multi-housing This 20 unit, WORTHY 20,215-square foot multi-family home sits on a 1 acre 4 Units Hawthorne lot. This property was built in Unit mixes are: 2-2/1; 2-1/1, 14,500+ Lot size 5-three (3) bedrooms 1.5 bath, and 15-two (2) bedrooms and 1 bath. Every unit $795,000 has washer and dryer hookups. All units are Town House style. All units are separately metered for gas and electric. There are three separate buildings with lots open spac8 Units of Wilmington es with greeneries. There is 8-1/1 an on-site laundry facility and nice storage room for repair-maintenance Asking $125,000 per unit equipment s ABU MAJUMDER and supplies. Tenants parking is on site open and there are approximately 44 regular 20 Units Bakersfield Direct: (562) and 2 handicap spaces. 5-3/1; 15-2/1, 100% HAP Contract AVAILABLE PERSONAL PERSPECTIVE There is lack of inventory, but many buyers! A lot of ca line ready to be deployed for the right opportunities in sector. The latest housing report from California Assoc (CAR) suggests a downward trend in prices. As the US up steam, interest rate expected to be on the rise, and leveled off, many investors are planning to reassessin holdings. Should you be one of those and wanted to b curb, I would like to offer you the value analysis for an ing properties at FREE of charge! This will give you an know the value of your property(s) and recognize whe are ready! I will need your current rent roll & expenses Asking $125,000 per unitthe OPPORTUNITY: A 20 unit, the Real Garden Apartments offering affords an investor a stable and predictable income and cash flow backed by the full faith and credit of the United States governshould you consider selling or would like a marketment. valuethe of property is encumbered 2203 W 190th bystreet a 30-year use Torrance, CA expenses) your property at FREE of charge, (Subject to rent roll andagreement for Multi-family Projects Participating in Please call me at: or the Mark-to-Market Program under the Multi-family Assisted Housing Reform and Affordability Act (MAHRA) of The property is also encumbered by a 20-year, Project-based Section 8 Housing Assistance Payment (HAP) Contract from the U.S. Department of Housing and Urban Development. This contract, Section 8 Project is administered by the LA Multifamily HUD hub and affects all 20 units. The property s FMR (fair market rents) are set annually through Automatic OCAF (operating cost adjustment factor) with an effective renewal date of January 1 of each calendar year. The property is subject to terms stipulated in the recorded HUD Mark-toMarket use agreement. HAPPY NEW YEAR! 2 Execu BR

3 PROXIMITY AND AMENITIES: Nearby schools include Fred L. Thompson Junior High School, Stine Elementary School and Amy B. Seibert Elementary School. The closest grocery stores are La Plazita, Don Pepes Market and Samco 6. Nearby coffee shops include Moti Bagh Cafe, Mossman s Coffee Shops and Catering Company and 7-Eleven. Nearby restaurants include Don Pepe s Mexican Restaurant, Foster s Freeze and Golden Ox Diner S Real Rd is near Wilson and Patriots Park. There are good bike lanes and the terrain is flat as a pancake. ACCESSIBILTY: Conveniently located which is approximately 5 miles west of Golden State HWY 99, east of Akers Road, north of Panama Lane, and south of Wilson Road. UP-KEEP OF THE PROPERTY: The current owner has been spending a tremendous amount of capital for the up-keep of the property. For example, painting, preventative maintenance, such as: railings, replaced piping and wood floors, etc. ABOUT BAKERSFIELD: Bakersfield is one of the fastest growing cities in California with a population of over 250,000 that qualifies it as the 13th largest city in California and 88th largest in the United States. It is also the capital of Kern Countyone of the richest agricultural regions in the world, as well as the most prolific oil-producing county in the country. In fact, Kern County agriculture produces more food than most states, and if Kern were a state all its own it would rank just behind Alaska, Texas and Louisiana as the fourth largest oil-producing region in the entire country. GEOGRAPHY: Bakersfield is located in the south end of the great San Joaquin Valley of California at an elevation of 492 feet. Sitting on the west side of the Sierra Nevada Mountains, it is centrally located about 90 miles north of Los Angeles, 90 miles south of Fresno, and 90 miles east of the Pacific Ocean, which puts Bakersfield close to a variety recreational and business resources. In fact, you can be basking in the sun at Pismo Beach on the Pacific Coast, rock hunting in the Mojave Desert, downhill skiing in the Sierra Nevadas, or stuck in L.A. traffic just a short two-hour drive from town. 3

4 This great offering appeal to investors looking for a excellent desirable location, well maintained asset, turned key operation, Government guaranteed rents, and minutes from freeway access. Stable tenancy and excellent collection record made this property a very profitable and attractive investment property in this limited inventory market. Motivated seller! An unequivocally great property for a longterm investor! Lets move forward without hesitation! NOTE: 24 UNIT IN WASCO AND THIS 20 UNIT IN BAKERSFIELD owned by the same owner and can be purchased as a package! RENT ROLL Apartment # Mix Current rent Total Rent Tenant HUD 1 3 bed 1.5 bath $474 $573 $1, bed 1 bath $370 $452 $ bed 1 bath $- $822 $ bed 1 bath $26 $796 $ bed 1.5 bath $290 $757 $1, bed 1.5 bath $205 $842 $1, bed 1 bath $256 $566 $ bed 1 bath $447 $375 $ bed 1 bath $- $883 $883 V 10 2 bed 1 bath $175 $647 $ bed 1 bath $746 $76 $ bed 1 bath $223 $599 $ bed 1.5 bath $450 $597 $1, bed 1 bath $80 $742 $ bed 1 bath $264 $558 $ bed 1 bath $98 $724 $ bed 1 bath $356 $466 $ bed 1 bath $96 $823 $ bed 1 bath $155 $667 $ bed 1.5 bath $185 $862 $1,047 $17,723 4

5 SUMMARY 20 UNITS WITH HAP CONTRACT Asking Price: $2,500,000 Down Payment: 750,000 Number of Units: 20 Cost per Unit: 125,000 Current GRM: Current CAP: 5.14% Approximate Age of Property: 1983 Approximate Lot Size: 43,560 Approximate Net RSF: 20,215 Cost per RSF: $ Proposed Financing: First Loan Amount: $1,750,000 Term: 4.25% 5 Yrs Fixed 360 months amortization due in 5 years Payment per month: $8,608 Principal deduction per year: $29, Annualized Operating Data: Current Rents Scheduled Gross Income: $215,676 Less Vacancy Rate Reserve: 3% 6,380 Gross Operating Income: 209,296 Less Expenses: 37.4% 80,677 Net Operating Income: $128,618 Less Loan Payments: 103,307 Pre-Tax Cash Flow: 3.4% 25,311 Principal Reduction: 29,503 Total Return Before Taxes: 7.3% $54,814 Scheduled Income: # of Units BDRMS/ BATHS Monthly Avg Rent Current Rents Monthly Income 5 3/1 $1,047 $5, /1 $822 $10, /1 $919 $ /1 $883 $883 Total Scheduled Rent $17,723 Laundry 250 Monthly Scheduled Gross Income: $17,973 Annual Scheduled Gross Income: $215,676 Estimated Annualized Expenses Taxes % $28,000 Insurance 5,994 Utilities 13,469 Repair & Maint 10,000 Management 17,014 Pest Control 1,800 Landscaping 900 License 500 Reserve 3,000 Total Expenses: $80,677 Per Net Sq. Ft.: 3.99 Per Unit: $4,034 FOR MORE INFO, CONTACT: ABU MAJUMDER Direct: (562)