For Sale Birchwood Apartments 17 Units $1,250,000 2601 Delano Avenue, Stockton, CA 95204 For more information, please contact: MICHAL MATHIOS Senior Director +1 916 288 4522 michael.mathios@cushwake.com LIC#01252862 400 Capitol Mall, Suite 1800 Sacramento, CA 95814 +1 916 288 4800 Cushman & Wakefield Copyright 2017. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
CONFIDNTIALITY AND DISCLAIMR STATMNT Cushman & Wakefield ( Broker ) has been retained on an exclusive basis to market the property described herein ( Property ). Broker has been authorized by the Seller of the Property ( Seller ) to prepare and distribute the enclosed information ( Material ) 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. 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 or its affiliates. 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. 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 there to. Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
INVSTMNT SUMMARY Asking Price $1,250,000 stimated Down Payment 30% $375,000 Price Per Unit $73,529 Price Per Room $24,510 Price Per Square Foot $120.54 Market CAP Rate 7.5% Actual as of 12/01/17 Cap Rate 6.0% Market GRM 7.1X Actual as of 12/01/17 GRM 8.0X Market Cash on Cash 11.1% Actual as of 12/01/17 Cash on Cash 6.1% INVSTMNT HIGHLIGHTS Unique opportunity to purchase a community that has essentially only known one owner since it was built. This property has modern amenities such as central heat and air, individual hot water heaters, dishwashers and more. A more aggressive management style coupled with some community upgrades will provide the next owner with huge rental rate upside. Rent increase notices were recently delivered to all tenants and starting December 1, 2017 they will be paying $750 per month across the board. xcellent location in a quiet residential neighborhood with amenities such as Safeway, Big Lots, 7-leven & Papa Murphy s only a short walk from the community.
Financial Analysis Unit Mix PRO FORMA October 2017 Projected Market Rents Type Units % of Units Sq.Ft. Rent Sq.Ft. Rent Sq. Ft. 1Bed/1Bath 17 100% 610 $850 $1.39 $750 $1.23 Total 17 100% 10,370 $14,450 $12,750 Averages 610 $850 $1.39 $750 $1.23 *Rent increase notices were delivered October 2017 to all tenants for new rents of $750 starting December 1, 2017 Monthly Income IN PLAC RNTS December 2017 Rent Roll Rents Income Gross Potential Rent Other Income Utility Income Total Rental Income Less Vacancy - 5% Less Non Revenue Units (1/2 Rent for Onsite Mgr) ffective Gross Income *Less stimated xpenses Net Operating Income Less Debt Service Cash Flow Stabilized October 2017 Projected Market Rents & Pro Forma xpenses Stabilized December 2017 Rent Roll Rents & Pro Forma xpenses $173,400 3,060 $153,000 3,060 0 0 $176,460 $156,060 (8,823) (7,803) (5,100) (4,500) $162,537 $143,757 (68,959) (68,959) $93,578 $74,798 (51,962) (51,962) $41,616 $22,836 Per Unit / Per Year Total Yearly Per Unit / Per Year Total Yearly *stimated xpenses Property Taxes $935 ($15,896) $935 ($15,896) Direct Levies 106 (1,796) 106 (1,796) Insurance (Fire & Flood Insurance) 250 (4,250) 250 (4,250) Utilities 900 (15,300) 900 (15,300) Management Fee 420 (7,140) 420 (7,140) Administrative / Office 90 (1,530) 90 (1,530) Advertising / Promotions 71 (1,200) 71 (1,200) Make Ready/Turnover 383 (6,503) 383 (6,503) Repairs/Maintenance 385 (6,545) 385 (6,545) Service Contracts 318 (5,400) 318 (5,400) Replacement Reserves 200 (3,400) 200 (3,400) Total stimated xpenses $4,056 ($68,959) $4,056 ($68,959) xpense Per Foot: xpense Percentage Ratio: $6.65 $6.65 42% 48% FINANCING The APOD example above reflects debt service based on 70% LTV at a 4.30% interest rate on a 30 year Fixed Rate Loan using a 30 year amortization schedule (Based on soft quote from Banner Bank).
GNRAL PROPRTY INFORMATION Parcel # 121-330-13 Year Built/Renovated 1989 Land Area Density No. of Buildings Number of Units 17 Unit Mix Rentable SF Parking Parking Ratio CONSTRUCTION Roof xterior Structure Foundation Plumbing Windows Stairs MCHANICAL Heat Air Conditioning Hot Water 0.61 acres 27.9 Du/Acre Two two-story apartment buildings 17 one bed / one bath units 10,370 SF 17 covered parking spaces Seven open parking spaces Ample off street parking 1.41 spaces per unit Pitched composition shingle with aluminum rain gutters T1-11 siding Wood frame Concrete slab Copper Single pane aluminum sliders Concrete treads with steel stringer Central HVAC Central HVAC Individual 40 gallon hot water heaters UTILITIS Gas lectricity Wtr/Swr/Grbg Miscellaneous UNIT FATURS Living Room/Bedroom Kitchen Bathroom Individually Metered (paid by tenant) Individually Metered (paid by tenant) Paid by owner One laundry room with two washers and two dryers (Seller owned) One maintenance room Mini blinds Carpet flooring Linen Closet in hallway Linoleum flooring lectric four burner stove/oven Tile or formica countertops Hood-vent Refrigerator Disposal Dishwasher Particle board cabinetry Stainless steel sink Tile or formica countertops Linoleum flooring Masonite shower/tub walls Moisture vent
PROPRTY PHOTOS
N Brookside Golf & Country Club Home Depot CVS Pharmacy Stockton Golf & Country Club Hoover lementary School Commodore Stockton Skills School BIRCHWOOD APTS BIG LOTS 7-LVN SAFWAY Location & Demographics Country Club Blvd. Country Club Blvd. BIRCHWOOD APARTMNTS N Area Demographics 1 Mile 3 Mile 5 Mile Delano Ave. 2017 Population 15,734 95,934 270,321 2017 Daytime Population 11,822 110,523 264,358 2017-2022 Population Growth 5.1% 4.7% 4.7% 2017 Average Household Income $56,162 $68,761 $62,834 2017 Owner Occupied Housing Units 49.2% 42.2% 42.9% 2017 Renter Occupied Housing Units 42.8% 48.2% 48.4% 2017 Average Home Value $243,475 $331,205 $283,320
RNT COMPARABLS Property Year Built # of Units Unit Type Sq.Ft. Asking Rent Rent/ Sq.Ft. Country Club Village 2733 Country Club Blvd Parkside 3280 Blue Ridge Circle Parkside 3280 Blue Ridge Circle Iron Horse 2506 Country Club Blvd lmwood Garden 2852 lmwood Ave Birchwood 2601 Delano Ave Country Club Villas 2150 Fontana Ave 1982 125 1 Bed / 1 Bath 521 $875 $1.68 1977 17 1 Bed / 1 Bath 400 $875 $2.19 1977 31 1 Bed / 1 Bath 460 $875 $1.90 1978 64 1 Bed / 1 Bath 460 $875 $1.90 1974 36 1 Bed / 1 Bath 714 $800 $1.12 1972 12 1 Bed / 1 Bath 680 $750 $1.10 1973 14 1 Bed / 1 Bath 550 $705 $1.28 Country Club Village Averages 519 $857 $1.65 *Averages do not include subject property Country Club Villas Parkside Iron Horse lmwood Garden
Rent Comparables Map PARKSID 3280 Blue Ridge Circle San Joaquin River Brookside Country Club Stockton Golf & Country Club Swenson Park Golf Course 5 BIRCHWOOD 2601 Delano Ave LMWOOD GARDN 2852 lmwood Ave Louis Park W Benjamin Holt Dr Quail Country Club Blvd COUNTRY CLUB VILLAS 2150 Fontana Ave Lodi L a kes Dr W March Ln San Joaquin Delta College N Pershing Ave COUNTRY Lodi CLUB VILLAG 2733 Country Club Blvd Lodi IRON HORS 2506 Country Club Blvd Smith Canal Monte Diablo Ave W Sw a Pacific Ave in Rd University of the Pacific-Stockton Swain Rd W Harding Way 5 W Park St W Oak St N l D orado St Oak Park N Center St March Ln West Ln STOCKTON N California St Al pine Ave St Joseph's Medical Center West Ln Harding Way Park St Oak St 4 N Airport Way Holman Rd S Airport Way McAllen Rd Oakmoore Golf Course S Wilson Way N Wilson Way Ort Waterloo Rd Fremont St Lofthus Fwy 99 Main St 26
SALS COMPARABLS Property Year Built # of Units Sales Price Price / Unit Price / Room Price / Sq.Ft. GRM CAP xpense / Sq.Ft. Sale Date Marina Courtyard 1025 N Madison St. Stockton, CA Westwood Arms 1001 West Swain Ave. Stockton, CA Sunburst 3266 Blue Ridge Cirlce Stockton, CA Palms 7400 Pacific Ave. Stockon, CA 1964 57 $3,425,000 $60,088 $17,211 $81.74 7.7 5.5% $5.97 6/2/2017 1972 60 $3,630,000 $60,500 $18,333 $102.20 8.0 5.5% $7.03 6/1/2017 1979 26 $2,025,000 $77,885 $21,543 $125.00 8.2 6.6% $6.48 3/17/2017 1962 33 $2,640,000 $80,000 $20,787 $99.88 8.8 5.2% $5.99 10/31/2016 Carlton Villa Carlton Villa 3301 Pacific Ave. Stockton, CA 1948 26 $1,875,000 $72,115 $24,038 $94.70 8.5 5.4% $5.74 3/25/2016 Averages $67,302 $20,382 $100.70 8.2 5.6% $6.24 Marina Courtyard Westwood Arms Sunburst Palms
Sales Comparables Map PALMS 7400 Pacific Ave SUNBURST 3266 Blue Ridge Circle 5 Swenson Park Golf Course W Benjamin Holt Dr WSTWOOD ARMS 1001 West Swain Ave W Sw a in Rd Swain Rd March Ln West Ln Holman Rd McAllen Rd Quail L a kes Dr San Joaquin Delta College N Pershing Ave Pacific Ave Oakmoore Golf Course 99 W March Ln Lodi CARLTON VILLA 3301 Pacific Ave Oak Park Al pine Ave N Wilson Way San Joaquin River Brookside Country Club BIRCHWOOD 2601 Delano Ave STOCKTON University of the Pacific-Stockton MARINA COURTYARD 1025 N Madison St N l D orado St N St Joseph's Medical Center California St West Ln Harding Way Waterloo Rd Stockton Golf & Country Club Country Club Blvd Louis Park Smith Canal Monte Diablo Ave W Harding Way 5 W Park St W Oak St N Center St Park St Oak St 4 N Airport Way S Airport Way S Wilson Way Ort Fremont St Lofthus Fwy Main St 26
Birchwood Apartments SACRAMNTO 505 101 80 50 Davis Santa Rosa 99 Vacaville 5 Napa Petaluma Galt Fairfield 680 2601 Delano Avenue Lodi Stockton, CA 95204 780 101 Berkeley Stockton 80 Walnut Creek Lathrop OAKLAND SAN FRANCISCO 205 Dublin 238 Foster City 380 880 Manteca 580 Modesto 680 99 280 Turlock Santa Clara SAN JOS 5 Atwater 101