CHEROKEE PLACE APARTMENTS EXCLUSIVELY OFFERED BY: Adam Lucatello Senior Vice President CA License No. 01336956 Direct: 209.475.5118 adam.lucatello@colliers.com Andy Hodgson Associate Vice President CA License No. 01796017 Direct: 209.475.5129 andy.hodgson@colliers.com
EXCLUSIVELY OFFERED BY: CENTRAL VALLEY INVESTMENT TEAM Adam Lucatello Senior Vice President CA License No. 01336956 Direct: 209.475.5118 adam.lucatello@colliers.com Andy Hodgson Associate Vice President CA License No. 01796017 Direct: 209.475.5129 andy.hodgson@colliers.com
CONFIDENTIALITY & DISCLAIMER This Confidential (the Memorandum ) has been prepared and presented to the recipient (the Recipient ) by Colliers International ( Colliers ) as part of Colliers efforts to market for sale the real property located at 621 Hale Road, Lodi, CA ( The Property ). Colliers is the exclusive agent and broker for the owner(s) of the Property (the Owner ). Colliers is providing this Memorandum and the material contained in it to the Recipient solely to assist the Recipient in determining whether the Recipient is interested in potentially purchasing all or part of the Property. Colliers also is providing this Memorandum and the material in it to the Recipient with the understanding that the Recipient will independently investigate those matters that it deems necessary and appropriate to evaluate the Property and that the Recipient will rely only on its own investigation, and not on Colliers, the Owner or this Memorandum, in determining whether to purchase the Property. The Recipient s use of this Memorandum, in determining whether to purchase the Property. The Recipient s use of this Memorandum and the material in it is strictly governed by the terms and conditions of the Registration and Confidentiality Agreement that the Recipient previously executed and delivered to Colliers. PLEASE NOTE THE FOLLOWING: Colliers, the owner and their respective agents, employees, representatives, property managers, officers, directors, shareholders, members, managers, partners, join ventures, corporate parents or controlling entities, subsidiaries, affiliates, assigns and predecessors and successors-in-interest make no representations or warranties abut the accuracy, correctness or completeness of the information contained in this Memorandum. The Recipient is urged not to rely on the information contained in this Memorandum and to make an independent investigation of all matters relating to the Property. This Memorandum includes statements and estimates provided by or to Colliers and/or the Owner regarding the Property. Those statements and estimates may or may not be accurate, correct or complete. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements and estimates. Further, nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements and estimates. Further, nothing in this Memorandum should be construed as representation or warranty about any aspect of the Property, including, without limitation, the Property s (1) past, current or future performance, income, uses or occupancy, (2) past, current or prospective tenants, (3) physical condition, (4) compliance, or (5) appropriateness for any particular purpose, investment, use or occupancy. Again, the Recipient is urged not to rely on this Memorandum and the statements and estimates in it and to make an independent investigation regarding the Property and the statements and estimates contained herein. This Memorandum may include statements regarding, references to, or summaries of, the nature, scope or content of contracts and/or other documents relating to the Property. Those statements, references or summaries may or may not be accurate, correct or complete. Additionally, Colliers may not have referenced or included summaries of each and every contract and/or other document that the Recipient might determine is relevant to its evaluation of the Property. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements, representations or summaries. On request and as available, and subject to the Owner s consent, Colliers will provide the Recipient with copies of all referenced contracts and other documents. Colliers assumes no obligation to supplement or modify the information contained in this Memorandum to reflect events or conditions occurring on or after the date of its preparation of this Memorandum. This Memorandum does not constitute an offer to sell, or a solicitation of an offer to buy, an interest in the Property. Nothing contained in this Memorandum may be construed to constitute legal or tax advice to a Recipient concerning the Property. More detailed information regarding the anticipated terms, conditions and timing of any offering by the Owner relating to the Property will be provided in due course by separate communication. Colliers and/or the Owner reserve the right to engage at any time in discussions or negotiations with one or more recipients of this Memorandum and/or other prospective purchasers of the Property without notice or other obligation to the Recipient. The Owner reserves the right to change the terms of any offering relating to the Property or to terminate without notice that offering. The Owner also reserves the right to operate the Property in its sole and absolute discretion prior to the completion of any sale of the Property. Colliers reserves the right to return of this Memorandum and the material in it and any other material provided by Colliers to the Recipient at any time. Acceptance of this Memorandum by the Recipient constitutes acceptance of the terms and conditions outlined above. 621 Hale Road Central Avenue, Lodi, CA 95240 40 Unit Apartment Complex
PROPERTY SUMMARY
FINANCIAL SUMMARY TOTAL ASKING PRICE $2,600,000 GROSS SF 32,192 TOTAL UNITS 40 PRICE PER UNIT $65,000 CAP RATE 7.45% GRM 8.0 PRICE PER GROSS SF $80.76 Please do not visit property without an appointment. Adam Lucatello Senior Vice President CA License No. 01336956 Direct: 209.475.5118 adam.lucatello@colliers.com Andy Hodgson Associate Vice President CA License No. 01796017 Direct: 209.475.5129 andy.hodgson@colliers.com
CHEROKEE PLACE APARTMENTS Colliers International s Central Valley Investment Team is proud to present Cherokee Place Apartments, a 40 unit complex located in East Lodi. Located in close proximity to many retail and daily needs amenities and also a convenient distant to major traffic corridors, Cherokee Place offers residents a garden style living community that allows them to easily access Lodi and other Central Valley cities. Cherokee Place is also a close distance from Downtown Lodi, an area that has experienced dramatic gentrification over the last decade. Comprised of 31 two bedroom/one bathroom units and 9 one bedroom/one bathroom units, Cherokee Place has an ideal unit mix that has experienced strong historical occupancy. The complex is comprised of five buildings and sits on 1.41AC. Each tenant has covered parking in a gated, secure environment. The onsite laundry is located in a central building and is operated by a third party (Web). Cherokee Place is an ideal investment opportunity for an investor looking for a Central Valley apartment complex with a strong unit mix in a desirable, insulated apartment community. INVESTMENT HIGHLIGHTS Desirable Lodi location Ideal unit mix Newer construction Recently painted stucco exterior Large units with modern amenities and recent upgrades Below market rents offer upside potential
PROPERTY SUMMARY PROPERTY NAME ADDRESS COUNTY Cherokee Place Apartments 621 Hale Road, Lodi, CA San Joaquin County APN # 047-450-28 YEAR BUILT 1987 GROSS SF 32,192 LAND AREA (ACRES) 1.41 LAND AREA (SF) 61,420 TOTAL UNITS 40 TOTAL NUMBER OF BLDGS 5 CONSTRUCTION TYPE SIDING MATERIAL FOUNDATION ROOF TYPE Wood Frame Stucco Concrete Pitched UTILITIES Water/Sewer - City of Lodi Gas - PG&E Telephone - Comcast Cable/Internet - Comcast HVAC Roof mounted units
PROPERTY AMENITIES 1 Laundry Room - 4 washers & 4 dryers operated by third party (Web) Central picnic/bbq area Onsite covered parking Adjacent to grocery anchored shopping center Controlled Access/Gates - gates are key access Enclosed trash receptacles Recent upgrades include new paint and unit remodel Close to Hwy 99, a heavily trafficked commuter corridor Recently upgraded landscaping UNIT AMENITIES Balcony/Patio Large L floor plans Standard kitchen appliances include disposal, refrigerator, electric oven/stove Carpet and tile coverage Individual utilities (Tenant pays water, gas, electric)
Hale Street Sacramento 35 Miles Beckman Road Cherokee Lane Garfield Street Stockton Street Stockton 4.5 Miles
FINANCIAL ANALYSIS
INCOME / OPERATING EXPENSES INCOME Gross Potential Rent (GPR) $324,660 Less: Vacancy (5% of GPR) $16,233 Effective Rental Income $308,427 Laundry Income $6,341 Other Income $125 Effective Gross Revenue (ERI) $314,893 OPERATING EXPENSES % of GPR Per Unit New Property Taxes (1.0658%) $27,711 8.54% $693 Direct Assessments $385 0.12% $10 Insurance $11,636 3.58% $291 UNIT MIX # OF UNITS UNIT TYPE MONTHLY RENT 31 2 BD / 1 BA $700 9 1 BD / 1 BA $595 40 PROFORMA RENT $800 $650 Common Utilities (Garbage, Gas, Electric, Water, Sewer) $6,168 1.90% $154 Contract Services: Gardening ($500/month) $6,000 1.85% $150 Pest Control ($200/month) $2,400 0.74% $60 Administrative $3,000 0.92% $75 Turnover $16,000 4.93% $400 Capital Reserves $8,000 2.46% $200 Repairs & Maintenance ($500/Unit) $20,000 6.16% $500 On-Site Manager (50% rent) $4,200 1.29% $105 Off-Site Manager - 5.0% of ERI $15,745 4.85% $394 TOTAL EXPENSE $121,245 38.50% $3,031 Please do not visit property without an appointment. NET OPERATING INCOME $193,648 ACTUAL PROFORMA Price $2,600,000 Price $2,600,000 CAP 7.45% CAP 8.95% Price Per SF $80.77 Price Per SF $80.77 Price Per Unit $65,000 Price Per Unit $65,000 EXCLUSIVELY OFFERED BY: CENTRAL VALLEY INVESTMENT TEAM Adam Lucatello Senior Vice President CA License No. 01336956 Direct: 209.475.5118 adam.lucatello@colliers.com Andy Hodgson Associate Vice President CA License No. 01796017 Direct: 209.475.5129 andy.hodgson@colliers.com
SALE COMPARABLES 408 W. Walnut Street, Lodi, CA 95240 412 N. Church Street, Lodi, CA 95240 1 COE 5/22/15 Price $850,000 2 COE 9/30/15 Price $1,599,000 Price Per Unit $106,250 Price Per Unit $66,625 Price Per SF $141.67 Price Per SF $101.20 Cap Rate 6.00% Cap Rate 6.89% Year Built 1952 Year Built 1968 # of Units 8 # of Units 24 1 BD / 1 BA 5 Studio 4 2 BD / 2 BA 3 1 BD / 1 BA 12 2 BD / 1 BA 8 950 S. Garfield Street, Lodi, CA 2516 Winchester Street, Lodi, CA 95240 3 COE 10/15/15 Price $2,425,000 4 COE 8/27/14 Price $3,000,000 Price Per Unit $57,738 Price Per Unit $78,947 Price Per SF $73.38 Price Per SF $91.73 Cap Rate 7.28% Cap Rate 5.78% Year Built 1963 Year Built 1980 # of Units 42 # of Units 38 1 BD / 1 BA 35 2 BD / 1 BA 7 2440 Cochran Road, Lodi, CA 95242 1951 Scarborough Drive, Lodi, CA 95240 5 COE 4/10/14 Price $2,010,000 6 COE 10/01/14 Price $1,700,000 Price Per Unit $95,500 Price Per Unit $65,385 Price Per SF $81.43 Price Per SF $91.21 Cap Rate 7.28% Year Built 1979 Year Built 1979 # of Units 26 # of Units 22 2 BD / 1 BA 22
LOCATION OVERVIEW
CITY OF LODI Situated 90 miles east of San Francisco and 35 miles south of Sacramento, the City of Lodi is the northern-most city in San Joaquin County. While committed to quality growth, the city strives to protect its historical, small-town charm. Lodi is nationally known for being the center of wine production (the Zinfandel Capital of the World ), and is the home of the well known winery, Robert Mondavi. Not only is Lodi highly nationally recognized for its emerging wine country (with over 80 wineries within Lodi), the city also offers its residence and visitors a wide variety, such as; a beautiful historical downtown, classic vintage homes, newer contemporary developments, Lodi s Hutchins Street Square (an 800 seat performing arts center), Lodi s Grape Bowl Stadium, and Lodi Lake. LODI LAKE HUTCHINS STREET SQUARE LODI GRAPE BOWL SAN JOAQUIN COUNTY San Joaquin County is the northernmost county in the San Joaquin Valley and is comprised of approximately 700,000 people in seven cities and spans nearly 1,400 square miles. The county s strategic location is a gateway to Silicon Valley, the Bay Area, the Yosemite Basin and the State Capitol. The region is a magnet for growing businesses and people seeking a high quality of life due to affordable housing, superior transportation infrastructure and ample amount of open space for business expansion. Much like the other counties of the San Joaquin Valley, San Joaquin County is heavily agricultural. However, the San Joaquin County economy is more diverse, primarily as a result of its proximity to Sacramento County and the Bay Area. San Joaquin County has a lower concentration of farm and government jobs, and a higher concentration in transportation and warehousing jobs relative to the rest of the San Joaquin Valley. Employers in San Joaquin County benefit from a diversified economy and a growing and productive labor pool. The County s largest employee base is derived from government, education, healthcare, and military sectors.
REGIONAL MAP LODI