GOLDEN GATE VIEW APARTMENTS

Transcription

1 GOLDEN GATE VIEW APARTMENTS 20 Units Point Richmond, CA $4,600,000 Scott Gerber Managing Director DRE #

2 Bradley Real Estate ( Broker ) has been retained on an exclusive basis to market the property described herein ( ). Broker has been authorized by the Seller of the Property to prepare and distribute the enclosed Offering Memorandum for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate. Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto. All inquiries related to the property should be directed to the exclusive listing agent: The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller, its affiliates or Broker. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma. Scott Gerber Managing Director scott@scottgerber.com Lic # Irwin St. Suite 104 San Rafael, CA ph: fx: Kate Raphael Commercial Associate kate@bradleyrealestate.com Lic #

3 PROPERTY OVERVIEW OVERVIEW The are a 20 unit apartment complex located on a ridge overlooking the San Francisco Bay, Mount Tamalpais and the namesake Golden Gate Bridge in the Point Richmond neighborhood of Richmond, CA. Constructed in approximately 1966, the features 16 two bedroom one bath and 4 one bedroom one bath units in one multistory woodframe and stucco building with underground covered parking. Priced at $4,600,000 this attractive investment offers the opportunity to increase value through renovation and the improvement of the income stream as permitted under the current rent control laws of Richmond (see Richmond Fair Rent, Just Cause for Eviction and Homeowner Protection Ordinance of December 30, Program ). Current ownership has been in place since PROPERTY DESCRIPTION An outstanding unit mix, the property consists of sixteen generous 2 bedroom units and 4 spacious 1 bedroom units. Each apartment features an open floor plan with abundant natural light which is complimented by a deck overlooking the San Francisco Bay (12 units) or the East Bay hills and the City of Richmond (8 units). Each unit features ceramic tile flooring in the kitchens and baths and carpet in living areas and bedrooms. Kitchens are electric and each has a pantry and vented range hood that will accommodate a microwave range hood upon renovation. Heat is provided by gas wall registers and hot water is provided by two 100 gallon central hot water heaters. Tenants are responsible for their direct utility charges. The property is responsible for water, sewer and trash charges. Tenant amenities include decks with views, covered parking, and laundry services. This, in addition to the commuter friendly location, make this a uniquely desirable place to live for a broad range of renters. 3

4 INVESTMENT SUMMARY POINT RICHMOND The are located on the ridge that separates the Bay side of Point Richmond from the Town side. The charming town of Point Richmond is nestled between the interstate 580 and the San Francisco bay on the eastern end of the Richmond- San Rafael Bridge. Just a 5 minute drive to Marin, 10 minutes to Berkeley, and 30 mintues to San Francisco, Point Richmond offers quaint and convenient living to it s residents. San Francisco Bay Ferry will begin service between Point Richmond and the San Francisco Ferry Building beginning in January The Historic Downtown District of Point Richmond has been listed on the National Register of Historic Places since Along the plaza are mom and pop shops, local eateries and coffee shops such as Station One Farmouse, Sante Fe Market, Hotel Mac, El Sol, and Kaleidoscope Coffee. Attractions include local landmark swim center, The Plunge, Keller Beach, Brickyard Cove, and the S.S. Red Oak Victory ship, which is part of the Rosie the Riveter/World War II Home Front National Historical Park; it is a restored Victory ship built in the city during World War II. Nearby businesses include Mountain Hardwear and Columbia Headquarters, Chevron, Hello Fresh, Whole Foods Distribution Center, Sun Power, Amazon, and Restoration Hardware. Richmond market trends indicate an increase of $71,000 (15%) in median home sales over the past year. The average price per square foot for this same period rose to $427, up from $391 according to Trulia. 4

5 INVESTMENT SUMMARY INVESTMENT SUMMARY: An outstanding investment for the astute and experienced investor, priced at $4,600,000, the Golden Gate View Apartments combine an add-value opportunity with a solid long term investment. The buyer will benefit from discounted pricing for deferred maintenance and will increase value through unit upgrades and an increased rent roll* once renovations are complete. is a good building in a good location. *as allowed under City of Richmond Rent Control Ordinance FINANCING: INVESTMENT HIGHLIGHTS: After making a down payment of $2,000,000, Buyer will secure a new first mortgage in the approximate amount of $2,600,000 at today s 5 year fixed rate of 4.55% with 30 year amortization schedule yielding a monthly payment of $13,251. Contact listing agent for financing referral if needed. Investment Highlights Summary Current GRM: Current CAP Rate: 5.04% Market GRM: 8.83 Market CAP Rate: 7.50% Price/Unit: $230,000 Starting (Cash on Cash) Return: 3.63% Price/SF: $ Stabilized (Cash on Cash) Return: 9.29% 5

6 Site Survey Parcel Map SITE SURVEY Parcel Number(s): Parcel(s) Size: Zoning: 24,600 SF; 0.56 acres RL2 Year Built: 1966 Buildings: 1 Parking: Construction Style: Roof: Foundation: Heating: Hot Water: Plumbing: Electrical: Laundry: Kitchen: Cabinets: Windows & Sliding Glass Doors: Amenities: Covered Wood frame/stucco Flat tar & gravel Perimeter Concrete Gas wall heaters Central (2-100 gallon tanks) Copper Circuit Breakers Leased - 2 washers, 2 dryers Electric, disposal, pantry Wood Single Pane Office, workshop & supply rooms, covered parking, decks, views, laundry 6

7 SUBJECT PROPERTY 7

8 INTERIOR VIEW 8

9 INTERIOR VIEW 9

10 RENT ROLL Unit # Unit Type Unit SF Current Rent M/I Date 3.6% Rent Increase 101 2/1 875 $1, /1/08 9/1/ /1 745 $1, /1/16 9/1/ /1 745 $1, /23/16 9/1/ /1 875 $2, /24/18 move in after 9/1/17* 201 2/1 875 $1, /10/16 9/1/ /1 745 $1, /1/99 9/1/ /1 745 $1, /1/05 9/1/ /1 875 $1, /1/14 9/1/ /1 875 $1, /2/13 9/1/ /1 875 $1, /5/14 9/1/ /1 875 $2, /3/17 move in after 9/1/17* 304 2/1 875 $2, /4/18 move in after 9/1/17* 305 2/1 875 $2, /18/18 move in after 9/1/17* 306 2/1 875 $1, /1/06 9/1/ /1 875 $1, /18/14 9/1/ /1 875 $1, /15/10 9/1/ /1 875 $1, /1/13 9/1/ /1 875 $2, /3/18 move in after 9/1/17* 405 2/1 875 $2, /1/11 9/1/ /1 875 $1, /1/90 9/1/18 Total 20 16,980 $33, Manager s Unit *City of Richmond: Effective September 1, 2018, the Maximum Allowable Rent for tenancies in effect prior to September 1, 2017, will increase by 3.6%. 10

11 OPERATING INFORMATION S U M M A R Y P R O P O S E D F I N A N C I N G Price: $4,600,000 Approx. Age: 1966 Down Payment: $2,000,000 Approx. Lot Size: 24,600 First Loan Amount: $2,600,000 New, 30 year amortization Number of Units: 20 Approx. Net RSF: 16,700 Term: 30 Years Fixed for 5 years Cost Per Unit: $230,000 Cost Per Net RSF: $ Rate: 4.55% Current GRM: Monthly Payment: $13,251 Market GRM: 8.83 Current CAP: 5.04% Market CAP: 7.50% S C H E D U L E D I N C O M E A N N U A L I Z E D E X P E N S E S Current Rents Market Rents No of Units BD/ BA Approx SF Mo Rent/Unit Monthly Income Mo Rent/Unit Monthly Income Taxes **New Rate $67, /1 675 $1,213 - $1,606 $5, $1,750 $7,000 Insurance $7, /1 875 $1,461 - $2,050 $27, $2,250 $36,000 Advertising: $0 *On Site (Est.) $13,200 Water and Sewer $17,170 Gas and Electric $7,425 Trash $5,460 Property Management $19,602 Maintenance/Repair (Est.) $15,000 Landscaping $2,400 Total Scheduled Rent: $33,280 $43,000 Misc. $1,100 Laundry: $350 $350 Housing Fees (2018) $4,140 Utility Reimbursement: Total Expenses: $160,380 Other: $50 $50 Per Net SqFt: $9.60 Parking and Storage: $0 $0 Per Unit: $8,019 Monthly Scheduled Gross Income: $33,680 $43,400 Annual Scheduled Gross: $404,163 $520,800 **1.4061% + $3,410 A N N U A L I Z E D O P E R A T I N G D A T A Current Rents Market Rents Scheduled Gross Income: $404,163 $520,800 Less Vacancy Rate Reserve: 3% $12,125 3% $15,624 Gross Operating Income: $392,038 $505,176 Less Expenses: 39.68% $160,380 $160,380 Net Operating Income: $231,657 $344,796 Less Loan Payments: $159,014 $159,014 Pre-Tax Cash Flow: 3.63% * $72, % * $185,781 Plus Principal Reduction: $41,574 $41,574 Total Return Before Taxes: 5.71% * $114, % * $227,355 *As a % of Down Payment 11

12 COMPARABLES Rent Comparables Units 1/1 2/1 Vacancies Utilities Incl 403 S Garrard Blvd Pt. Richmond, CA 28 $2,292 $3.56/SF 2/2 $3,392 $3.13/SF 4 None 30 Nicholl Ave Pt. Richmond, CA 7 $1,850 $2.85/SF $2,150 $2.87/SF 0 W,S,T, PG&E 716 Golden Gate Ave Pt. Richmond, CA 2 $2,295 $2.55/SF 0 W,S,T Golden Gate Ave Pt. Richmond, CA 4 $2,390 $2.66/SF 0 T Subject Property 20 $1,397* $2.10/SF $1,731* $1.98/SF 0 W,S,T *average rent Sold Comparables Units Sale Price Yr Built $/Unit GRM CAP $/SF C.O.E. 150 Belvedere St San Rafael, CA 28-1/1 $5,800, $207, % $377 11/8/ W Richmond Ave Pt. Richmond, CA Subject Property 4-2/1 10-1/1 5 - commercial 16-2/1 4-1/1 $4,200, $221, % $350 10/23/18 $4,600, $230, % $275 OTM 12

13 AREA MAP NOVATO VALLEJO SAN RAFAEL RICHMOND MILL VALLEY PT. RICHMOND WALNUT CREEK BERKELEY OAKLAND SAN FRANCISCO 13