Multi-family Asset - 84 Units $7,000,000

Transcription

1 Multi-family Asset - 84 Units $7,000,000 1

2 Table of Contents I Executive Summary Property Overview 3 Property Details 4 Capital Improvements 5 Specifications 6 Amenities 7 II Financial Analysis 10 III Area Overview/Maps Property Schematic 11 Floor Plans 12 Aerial, Location & Parcel Maps 13 IV Market Overview Sacramento/Rancho Cordova 14 Market Report 15 Investment Trends 16 Rent Comps 17 V Contact Information 18 2

3 EXECUTIVE SUMMARY PROPERTY OVERVIEW This is an offering of a 100% fee simple interest in Gold Run Apartments, an 84-Unit apartment community located at Coloma Road in Rancho Cordova, California. This multi-family asset offers substantial value-add upside by exercising the opportunity to raise rents and bringing them to current market rates. An improving economy caused apartment occupancy to move up to 97.7% as of the second quarter of 2015 in Sacramento; occupancy was highest in Fair Oaks and Rancho Cordova at 98.8%! 3

4 PROPERTY DETAILS Gold Run Apartments encompasses approximately 3.3 acres and consists of eleven buildings for a total of 59,740 net rentable sq./ft. Well designed and nicely appointed floor plans include one and two bedroom/one bath apartment homes averaging approximately 711 square feet. Gold Run provides an investor a unique opportunity to acquire a well-maintained property with the opportunity to increase income and value over time with improvements and operational efficiencies. There is strong demand in the Class B rental market along with limited planned multifamily development, enabling a new owner to benefit from near term rent growth as multifamily fundamentals continue to strengthen in the Sacramento Region. Highlights Renovations totaling over $370,000 Ideal Location close to Downtown, Public Transportation and Local Attractions Significant advantage of the Greater Sacramento area is its proximity to large markets, with virtually the entire state of California within one day s driving distance Property has a completed termite report Will be turned over to buyer 100% free and clear of any section one repairs Seller will turn over a completed roof report 100% with Roof Certifications on entire property! Property Details FLOOR PLAN UNITS AVG SF TOTAL SF Rent/Unit Rent/SF 1 bedroom/1 bath ,760 $725 $ bedroom/1 bath ,990 $825 $1.12 TOTALS ,740 $806 $1.13 4

5 SUBSTANTIAL CAPITAL IMPROVEMENTS WITH VALUE-ADD OPPORTUNITY REMAINING During 2015 over $370,000 of renovations and upgrades have been made. These substantial capital improvements along with in-place below market rents provide the new owner an exceptional opportunity to capitalize on a strategic and well-timed value added investment. A list of the capital improvements includes the following: $75,000 Exterior Paint $75,000 Replaced/Repair Decks and Landings $45,000 Drought resistant Landscape $40,000 Parking lot resurfacing 5

6 $115,000 New Roofs $10,000 Laundry Room Remodel $10,000 Office/Model Improvements 6

7 SPECIFIATIONS GENERAL DESCRIPTION Address Year Built 1976 Number of Units 84 Units Number of Stories 2 Stories Acres 3.3 Acres Net Rentable Sq./Ft. 59,740 Number of Buildings 11 Buildings APN School District Folsom-Cordova Unified School District Elementary Cordova Villa Elementary Middle School Mitchell and Mills Middle Schools Senior High Cordova High School CONSTRUCTION DETAIL Basic Construction and Foundation Floor Structure Roof Exterior walls Windows & Doors Wood Frame on reinforced concrete foundation Ground Floor/Foundation - Concrete slab Second Story - Wood Frame Flat roof with white TPO over Dens-Deck Board Wood frame with wood, stucco and vinyl siding inserts Single pane aluminum frame windows; Metal doors MECHANICAL DETAIL HVAC Plumbing Central Heating and Air in all 2 Bedrooms Wall gas heaters & through wall AC units in all 1Bedrooms Copper supply piping, cast iron drain piping, galvanized steel natural gas piping Hot Water Heaters - Individual units in all 84 units 7

8 AMENITIES INTERIOR AMENITIES Wall-to-Wall Carpeting Cable Ready Heating/Air Conditioning Central HVAC in all 2 Bedrooms Walk in Closets Ceiling Fans Refrigerator Dishwasher Disposal 8

9 AMENITIES EXTERIOR AMENITIES Gated/Controlled Access Swimming Pool Laundry Room Drought Resistant Landscaping 9

10 FINANCIAL ANALYSIS 10

11 AREA OVERVIEW AND MAPS PROPERTY SCHEMATIC 11

12 FLOOR PLANS 12

13 MAPS Gold Run Apartments Aerial View Location Map Rancho Cordova Parcel Map - APN

14 MARKET OVERVIEW SACRAMENTO/RANCHO CORDOVA CENTRAL SACRAMENTO LOCATION Gold Run is centrally located a short drive to US Route 50, Hwy 99 and I-80 providing residents quick and convenient access to major employers located in Downtown Sacramento and other employers in the surrounding area. Rancho Cordova s ideal location provides access to many major destinations including San Francisco, Lake Tahoe and Napa Valley. Rancho Cordova is home to several Fortune 500 companies and many diverse small businesses. It is close to five convenient light rail stations and home to the Mather Commerce Center and Airport. From attractive topography to strong employment and a bright future, Rancho Cordova has all of the essential ingredients for a healthy, growing community. LOCATION HIGHLIGHTS Conveniently located near schools, parks and retail shopping. Transportation/Rail Access Public Transportation services are readily available. Sacramento Regional Transit system covers the Rancho Cordova area. Amtrak is located 0.4 miles from the city center and the Sacramento International airport is only 17 miles away Mather Commerce Center and Airport located on the Hwy 50 corridor this center is the home to many prestigious tenants including McGraw-Hill and Sutter Health and has over 2 million sf of office space Local Attractions include the American River, Folsom City Zoo Sanctuary, Mather Golf Course, town parks and miles of bike trails along American River Parkway. Close to major tourist destinations including San Francisco, Lake Tahoe, Napa Valley and the Historic Gold Country. New Construction Rancho Cordova Center A brand new, state-of-the-art educational center of Folsom Lake College is currently under construction at the corner of Mather Road and Folsom Blvd. The Rancho Cordova Center will include more than 26,000 square feet of instructional space, nine classrooms and a student learning center with an open-access computer lab. The new facility is expected to open in late October. Sacramento International Airport American River Rancho Cordova Center 14

15 APARTMENT MARKET REPORT Vacancy is #2 in the Nation - As of the 2 nd Quarter 2015, the average vacancy rate in Sacramento is 2.3% which is the 2 nd lowest rate in the entire Nation! Effective Rent Growth is #6 in the Nation - According to Axiometrics, Sacramento experienced the 6 th highest year-over year effective rent growth in the nation. Rents grew the fastest in the Rancho Cordova/East Sacramento neighborhoods, up 13.2 percent. The areas command effective rents of nearly $1,000 per month, rising 5.6% over the past 12 months; Marcus & Millichap Apartment Research Fourth Quarter AVERAGE APARTMENT RENTAL RATES Sacramento, CA 15

16 ECONOMIC GROWTH Sacramento is growing in line with California and faster than the US overall. Since mid-year 2014, Sacramento s unemployment rate has been declining at roughly 40bps per quarter and was 5.8% as of mid-year Total employment increased by 2.7% year-over-year. Sacramento s stronger population growth, due to its lower costs of living and doing business, will support the economy over the longer term. INVESTMENT TRENDS According to Marketbeat Multifamily Snapshot by Cushman & Wakefield, 38 properties have been sold YTD totaling 6,242 units. The total transaction volume is $712 MM which represents over a 145% increase relative to one year prior (288.2 MM). The weighted average cap rate compressed 40 bps to 5.3% through second quarter 2015, as investor demand for multifamily assets pushed up pricing. Given the improving economy and healthy demographic trends, the overall outlook for the multifamily investment market in Sacramento is positive, as investors will continue to be drawn to Sacramento s strong leasing fundamentals and favorable yields compared to other Northern California markets. 16

17 RENT COMPS Offering Memorandum Multi Family Gold Creek Sunrise Meadows 2156 Benita Drive Coloma Road Rancho Cordova Rancho Cordova Year Built 1980 Total Units 70 Total Stories 2 Occupancy 100% Unit Mix: 1 BA, 1 BA 622 SF, $735 2 BD, 1 BA 844 SF, $850 RUBS: No Year Built 1973 Total Units 95 Total Stories 2 Occupancy 100% Unit Mix: 1 BA, 1 BA 665 SF, $804 2 BD, 1 BA 880 SF, $966 RUBS: No Gold Crossing Blairmore Coloma Road 2330 Vehicle Drive Rancho Cordova Rancho Cordova Year Built 1978 Total Units 80 Total Stories 2 Occupancy 100% Unit Mix: 2 BD, 1 BA 925 SF, $795 RUBS: no Year Built 1985 Total Units 252 Total Stories 2 Occupancy 96% Unit Mix: 1 BA, 1 BA 708 SF, $900 2 BD, 1 BA 825 SF, $1075 RUBS: Yes 17