12 Beautiful Garden Apartments Casa Madrone Apartments

Transcription

1 Introducing 12 Beautiful Garden Apartments Casa Madrone Apartments Foothill Boulevard. Oakland, CA Below Market Price: $2,100,000 Located in the Nation s Fastest Growing Rental Market Market Cash on Cash 13% Market Cap Rate 8%; Existing Cap Rate 4.6% 33%+ or $74,376 Upside in Annual Rents Market GRM Existing GRM Clear Section 1 and Section 2 Pest Clearances Great Add Value Investment No Deferred maintenance Hot and Thriving Eastmount/ Elmhurst District Neighborhood High growth city influencing great appreciation potential Strong Rent Upside! Trouble free income, management, and Tenants For more information about this fabulous opportunity: Please call Fred Lewis at (209) Visit info@hotdealsoakland.com

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4 Casa Madrone Apartments Foothill Boulevard Oakland, CA Price: $2,100,000 Down Payment: $630,000 Capitalization Rate: 4.6% Market Cap Rate: 8% Gross Rent Multiplier: 13.2 Market GRM: 9.28 Cost per Unit $175,000 Market Cash on Cash: 13% Complex Description: Assessor s parcel Numbers This attractive Spanish Style Courtyard Apartments in a rapidly revitalizing area has very clean units. Great opportunity in a centrally located, diverse area with excellent potential. Eight 1 bedroom units, 3 studios, and one 2 bedroom unit. Great positive cash flow. Extensive rehabilitation in of the interiors. Rehabilitation includes: the interiors of all units have been updated recently by the current owner. The updates included new tasteful interior and exterior paint, carpet/tile flooring, doors, shower/tub surrounds, closets, cabinetry, and countertops. In addition, the electrical and plumbing of the subject was upgraded in most units. This includes new water and sewer lines to the street. In addition, repairs were made to dry rot and termite damaged areas of the buildings. No deferred maintenance currently exists. Separate electric, with electric heat and stoves. Owner pays water and trash. The subject property consists of two largely identical rectangular shaped 6-unit buildings on a single assessor parcel along Foothill Boulevard. Located near Seminary, on Foothill Boulevard at 61 st. Property includes 6114 and 6120 Foothill. A concrete driveway separates the two building near the mid-point of the property and provides access to the units. The driveway leads to a small concrete surface parking lot at the rear of the property. Parking is provided for a total of four cars. Each of the 6-plex buildings is of wood-frame construction. The total building area is approximately 5,200 square feet. The exterior of the buildings have a stucco facade with a mix of wood-frame and aluminum windows. The roofs are flat. The roof is flat with a small overhang. Each unit is accessed by individual three step stairways that face the interior driveway. The front door to the units lead to the living room/kitchen area with the bedrooms and bath to the rear. In addition, the rear of each building has a long wooden deck that provides secondary access to the units from the kitchen area. The sewer lateral has been completed. Complex Potential: There is $74,376 or 33% of immediate annual upside in the rents. The apartment community has many shorter term tenancies, that upon turnover, may be rented at full market rents with cosmetic improvements to maximize rental return. Units are separately metered for gas & electric, and the property has 4 parking spaces.. The above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

5 Foothill Boulevard Oakland, CA Neighborhood Description : The subject property is located mid-block on the east side of Foothill Boulevard between 61 st and 62 nd Avenues. The subject neighborhood is known as the Eastmont/Elmhurst District. It is generally defined as the area bounded by International Boulevard to the west, Seminary Avenue to the north, Interstate 580 to the east, and the Oakland/San Leandro city limits to the south. The neighborhood is older and consists primarily of single-family homes dating from the 1900 s to 1940 s, interspersed with small scale apartment buildings dating back from the 1960 s. The major arterials include International Boulevard, Bancroft Avenue, Foothill Boulevard, and MacArthur Boulevard. This area is nearly fully built out with limited vacant land for future development. The long-term outlook for the neighborhood and subject location is considered very stable. Pest Control: There is a clear Section 1 and Section 2 Pest Clearance on the subject property. The Building is clean as a whistle. Also completed the sewer lateral has been upgraded and completed. Area Description: Not far from Mills College, shops and restaurants. Easy access to public transportation: 580 to San Francisco, Highway 13 to Berkeley and Montclair and close to airport and commercial shopping. While shipping is still a major part of the local economy, Oakland is home to the corporate headquarters for everything from established consumer brands to younger tech businesses. The cultural diversity of the city is vast, meaning that it s easy to find art, food, and people from every corner of the world by just walking down the street. Hottest Apartment Market in the Country: The Bay Area continues to lead the nation s apartment market in rent growth. According to MPF Research, during the first quarter of 2015, Oakland saw year-over-year rent growth of 14.1%. Compelling Multifamily Fundamentals: There are high barriers to entry and few large sites for development in the Downtown Oakland region. Vacancy rates in the area remain at historic laws, rental rates continue to rise at a fast pace. Commission Owner is a principal and not a broker. A selling commission of 3% will be paid for the procurement and actual consummation of the transaction. A higher commission can be negotiated if multiple brokers are involved. Two 30day extensions need to be included in the agreement as seller is completing a 1031 exchange. The above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

6 Annual Property Operating Data PURPOSE: Property Analysis PRICE: $ 2,100,000 NAME: Casa Madrone DOWN PAYMENT: $ 630,000 LOCATION: TYPE OF PROPERTY: Foothill Boulevard Oakland, CA (12) Unit Apartment Building ASSESSED APPRAISED VALUES LAND: 18% $ 400,000 IMPROVEMENTS: 80% $ 1,660,000 PERSONAL PROPERTY: 2% $ 40,000 TOTAL $ 2,100,000 PROPOSED: 1ST 70% LTV GROSS RENTAL INCOME 4% 30 years $7,018 Monthly Payment EXISTING MARKET $ 158,496 $ 225,840 LESS OPERATING EXPENSES Vacancy $ 4,554 $ 6,786 Property Insurance $ 4,340 $ 4,340 Real Estate Taxes $ 27,930 $ 27,930 Repairs & Maintenance $ 3,600 $ 3,600 Business Tax $ 1,140 $ 1,140 Rap Fee $ 408 $ 408 SERVICES Rubbish $ 7,883 $ 7,883 UTILITIES Electric & Gas $ 3,777 $ 3,777 Water & Sewer $ 7,482 $ 7,482 TOTAL OPERATING EXPENSES (40% Expense) NET OPERATING INCOME LESS: TOTAL ANNUAL DEBT SERVICE CASH FLOW $ 61,114 $ 61,114 $ 97,382 $ 164,726 $ 84,216 $ 84,216 $ 13,166 $ 80,510 The above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

7 Summary Rent Roll Casa Madrone Property Address: Foothill Boulevard Oakland, CA Unit Current Market # Mix Rent Rent 6114-A 1/1 $1,400 $1, B 1/1 $878 $1, C 1/1 $1,725 $1, D 1/1 $899 $1, E 1/1 $1,228 $1, O 2/1 $1,052 $1, A 2/1 $1,725 $1, B S/1 $840 $1, C S/1 $969 $1, D S/1 $786 $1,295 $1, E S/1 $ F 1/1 $928 $1, Units 13,208 $18,820 The above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimatesand approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

8 Sales Comparables Subject Property Address # of Units Unit Mix Sales Price Cost Per Unit GRM CAP Close of Escrow Foothill Boulevard Oakland, CA S/1 7-1/1 1-2/1 $2,100,000 $175, % Active 6137 MacArthur Boulevard Oakland, CA /1 $1,400,000 $411, % 06/05/ Foothill Boulevard Oakland, CA /1 $1,288,888 $257, % Active th Ave. Oakland, CA /1 $1,800,000 $225, /15/ Hayes St Oakland. CA /1 $886,000 $208, /28/ MacArthur Boulevard Oakland, CA Foothill Oakland, CA /1 11-3/1 $2,475,000 $206, /- 5.10% 8/1/16 1-3/1 2-2/1 2-commercial $995,000 $199, % Active th Ave Oakland, CA /1 $595,999 $198,666 %5.00 Active 3210 San Leandro St. Oakland, CA (master meter for gas) 8 S- 1/1 5-1/1 2-1/1 $1,522,000 $190, % 8/14/ Foothill Boulevard Oakland, CA $3,950,000 $188,095 4/3/ Outlook Ave. Oakland, CA /1 1-2/1 $725,000 $181, % Active 6868 Foothill Blvd Oakland, CA /1 $975,000 $176, % 10/28/ Bancroft Ave Oakland, CA studios $2,800,000 $175, % Active th Avenue Oakland, CA /1 $1,495,000 $166, % 7/24/ Havenscourt Boulevard Oakland, CA S/1 $1,400,000 $163, % 11/21/16 The above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

9 Rent Comparables Surveyed Property Studio 1 Bedrooms 2 Bedrooms Foothill Boulevard Oakland, CA $778-$969 $844-$1725 $1052-$ Favor Street. Oakland, Ca $ 1, Holly Street Oakland, CA $ 1, Favor Street Oakland, CA $1350-$ th Ave. Oakland, CA $1, Holly Street Oakland, CA $1350-$ MacArthur Blvd. Oakland, CA $1, MacArthur Blvd. Oaklnd, CA $1, Foothill Way,Oakland, CA $1, Seminary Ave. Oakland, CA $2,345 Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

10 About Oakland, California Oakland is the seventh largest city in the state of California with a population of 400,000 people and covers 54 square miles. Oakland has had a rent increase of 11.6% with a vacancy rate of 1.7%. The current median monthly rent for Oakland is $2, Oakland s rent increase has been partially fueled by renters priced out of the San Francisco rental market. Oakland is a major West Coast port, and there are nearly 200,000 jobs related to marine cargo transport. These jobs range from minimum wage hourly positions to Transportation Storage and Distribution Managers who earn an annual average salary of $91,520. Forbes Magazine listed Oakland as one of the Top 10 Places for business and employment. The city is home to several major corporations including Matson, Kaiser Permanente and Clorox, as well as corporate headquarters for national retailers like Dreyer s and Cost Plus World Market. Tech companies such as Ask.com and Pandora Radio are located in Oakland, and in recent years many start-up high tech and green energy companies have found a home in the downtown neighborhoods of Uptown, City Center, Jack London Square and Lake Merritt Financial District. The Port of Oakland is one of the five largest container ports in North America and one of the top 20 worldwide. Oakland is the only city in California with three professional sports teams: the Oakland Raiders, the Oakland Athletics, and the Golden State Warriors. Recently ranked by Movoto.com, Oakland is one of the most exciting cities in America on its roster of the The 10 Most Exciting Cities in America. According to the New York Times. Oakland ranked as the 5 th most desirable destination to visit this year in The 45 Places to Go. In the past decade, Oakland has ranked among the top cities for business in Forbes and other publications. As part of the ninth largest regional economy in the United States with a Gross Regional Product exceeding $200 billion, Oakland boasts a strong and diverse business environment. This diversity allows Oakland to remain stable even during economic downturns. The Gross Metropolitan Product (GMP) for Oakland ranks in the top 20 metropolitan economies in the United States and among the top 60 in the world. Oakland s GMP ranks higher than the GMP for San Jose, St. Louis, Sacramento, Pittsburgh and Cleveland and also exceeds the Gross National Product of Hungary, Columbia, Singapore and the Philippines. Oakland s GMP also eclipses the Gross State Product of Nevada, Oklahoma and Kansas. In recent years, Oakland has gained national recognition as a travel destination. In 2012, Oakland was named the top North American city to visit, highlighting its growing number of sophisticated restaurants and bars, top music venues, and increasing nightlife appeal. Oakland also took the No. 16 spot in America s Coolest Cities, ranked by metrics like entertainment options and recreational opportunities per capita, etc. In 2013, Oakland topped the No. 1 spot in America s Most Exciting Cities, notably having the most movie theaters, theater companies, and museums per square mile. In America s Most Hipster Cities, Oakland took the No. 5 spot, cited for luring San Francisco hippies into the city. Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

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