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Zanita Townhomes7 TOWNHOUSES WITH PRIVATE 2 CAR GARAGES
5034 Manzanita AveCarmichael, CA 95608
Zanita TownhomesCONTENTS
Exclusively Marketed by:
Jacob StanfillSenior Associate
916-716-8131
Lic: 01914043
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of theproperty. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
01 Executive Summary Executive Summary 5
Unit Mix Summary 6
Location Summary 7
02 Property Description Property Features 9
Aerial Map 10
Common Amenities 11
Unit Amenities 12
03 On Market Comps On Market Comparables Summary 14
On Market Comparables Charts 16
On Market Comparables Map 17
04 Sale Comps Sale Comparables Summary 19
Sale Comparables Charts 20
Sale Comparables Map 21
05 Rent Roll Rent Roll Details 23
06 Financial Analysis Income & Expense Analysis 25
Multiyear Cash Flow Assumptions 26
Cash Flow Analysis 27
07 Demographics Demographics 30
Demographic Charts 31
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from North Coast Commercial Inc and it should not be made available to any other personor entity without the written consent of North Coast Commercial Inc. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such informationin the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offeringmemorandum. If you have no interest in the subject property, please promptly return this offering memorandum to North CoastCommercial Inc. This offering memorandum has been prepared to provide summary, unverified financial and physical informationto prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information containedherein is not a substitute for a thorough due diligence investigation. North Coast Commercial Inc has not made any investigation,and makes no warranty or representation with respect to the income or expenses for the subject property, the future projectedfinancial performance of the property, the size and square footage of the property and improvements, the presence of absence ofcontaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition ofthe improvements thereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property. The information contained in this offering memorandum has been obtained fromsources we believe reliable; however, North Coast Commercial Inc has not verified, and will not verify, any of the informationcontained herein, nor has North Coast Commercial Inc conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyersmust take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for theircosts and expenses of investigating the subject property.
Zanita Townhomes Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER:
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONTACT NORTH COAST COMMERCIAL INC FOR MORE DETAILS.
Copyright © 2018 CREOP, LLC. All Rights Reserved.
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Executive Summary
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Unit Mix Summary
Location Summary
Zanita Townhomes Executive Summary | 05
OFFERING SUMMARY
ADDRESS 5034 Manzanita Ave Carmichael CA95608
COUNTY Sacramento
MARKET Sacramento
SUBMARKET Carmichael
BUILDING SF 10,040
LAND SF 15,682
NUMBER OF UNITS 7
YEAR BUILT 1979
APN 23601240080000
OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARY
OFFERING PRICE $1,595,000
PRICE PSF $158.86
PRICE PER UNIT $227,857
OCCUPANCY 97.00 %
NOI (CURRENT) $84,065
NOI (Pro Forma) $97,660
CAP RATE (CURRENT) 5.27 %
CAP RATE (Pro Forma) 6.12 %
PROPOSED FINANCING
LOAN TYPE Fully Amortized
DOWN PAYMENT $558,250
LOAN AMOUNT $1,036,750
INTEREST RATE 4.75 %
ANNUAL DEBT SERVICE $64,899
LOAN TO VALUE 65 %
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE
2017 Population 20,164 159,172 378,396
2017 Median HH Income $49,680 $52,117 $55,547
2017 Average HH Income $67,253 $70,501 $76,167
Huge Units
7 Large Townhouses in Carmichael
The Zanita Townhomes, located at 5034 Manzanita Avenue inCarmichael, consist of seven (7) 2 bed/2.5 bath townhouses.Each unit has a 2 car garage, central heat and air, dual panewindows, washer/dryer hook ups, master suite, vaulted ceilings,walk in closets and outdoor yard area. Five of the seven unitshave been fully remodeled. Updates include new laminateflooring, granite counter-tops, new cabinets with nickel knobsand hardware and dual flush low flow toilets as well as low flowsinks.
Capital expenditures were not limited to the interior of the units,however. The driveway/exterior parking spaces have a freshasphalt overlay, a new trash enclosure has been installed,drought resistant landscaping and new landscape lighting as wellas new LED exterior lighting. Additionally, extensive dry rotrepair throughout the exterior of the units has been addressedand the entire property has been re-painted.
With over 1,400 square feet of living space, no other property inthe area can match the unit mix or the price per square foot.Tenants pay for their own water use, lowering Owner expenseseven more. Additional income is available by instituting RUBS onnew tenants as well as renting out the vacant community parkingspaces (5 total).
Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly
IncomeMarket Rent Market Rent
PSFMarket Income
2 bd / 2.5 ba 7 1,486 $1,376 $0.93 $9,632 $1,595 $1.07 $11,165
Totals/Averages 7 1,486 $1,376 $0.93 $9,632 $1,595 $1.07 $11,165
Zanita Townhomes Unit Mix Summary |06
Zanita Townhomes Location Summary | 07
Located in Carmichael, Zanita Townhomes has easyaccess to Highway 80 and is less than 2 miles awayfrom American River College as well as multipleelementary, middle and high schools. Carmichaelhas seen has seen a steady 10% increase in rentsover the past two years and is one of the mostdesirable neighborhoods in Sacramento.
From community college students to youngprofessionals and families, Zanita Townhomes offerslarge apartments with the security of private garagesand the comfort of anintimate community setting.
Regional Map
Locator Map
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Property Description
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Aerial Map
Parcel Map
Additional Maps
Amenities
Property Images
Zanita Townhomes Property Features |09
Site Description
NUMBER OF UNITS 7
BUILDING SF 10,040
LAND SF 15,682
LAND ACRES 0.36
YEAR BUILT 1979
# OF PARCELS 1
ZONING TYPE RD-5
LOCATION CLASS B
NUMBER OF STORIES 2
NUMBER OF BUILDINGS 3
NUMBER OF PARKING SPACES 10
PARKING RATIO 3:1
POOL / JACUZZI No
FIRE PLACE IN UNIT Yes
WASHER/DRYER Yes
UTILITIES
WATER Tenant
TRASH Owner
GAS Tenant
ELECTRIC Tenant
RUBS None
CONSTRUCTION
FOUNDATION Slab
FRAMING Wood
EXTERIOR Stucco
PARKING SURFACE Paved Asphalt
ROOF Pitched
STYLE Townhouse
LANDSCAPING Minimal
Zanita Townhomes Aerial Map | 10
Common Amenities2 Car Garages Off Street ParkingFreshly Paved Driveway Drought Resistant Landscaping
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Unit AmenitiesUpdated units Huge unit sizeWasher/Dryer hook ups Dual pane windows
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On Market Comps
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On Market Comparables Charts
On Market Comparables Map
Zanita Townhomes On Market Comparables Summary | 14
1
3620 Wintun Dr, Carmichael,CA 95608
TOTAL UNITS 6
YEAR BUILT 1957
ASKING PRICE $1,085,000
PRICE/UNIT $180,833
PRICE/SF $278.21
CAP RATE 5.00 %
OCCUPANCY 100.00 %
Cap Rate Range 3.76 % - 5.27 %
LOW HIGH
Price/Unit Range $127,273 - $227,857
LOW HIGH
Price S/F $159 - $278
LOW HIGH
Notes Asking $278.20/square foot
2
Engle Road Apartments5729 Engle Road, Carmichael,CA 95608
TOTAL UNITS 11
YEAR BUILT 1959
ASKING PRICE $1,400,000
PRICE/UNIT $127,273
PRICE/SF $178.69
CAP RATE 3.76 %
OCCUPANCY 100.00 %
Cap Rate Range 3.76 % - 5.27 %
LOW HIGH
Price/Unit Range $127,273 - $227,857
LOW HIGH
Price S/F $159 - $278
LOW HIGH
Notes Asking $178.69/square foot
Zanita Townhomes On Market Comparables Summary | 15
S
Zanita Townhomes5034 Manzanita Ave,Carmichael, CA 95608
TOTAL UNITS 7
YEAR BUILT 1979
ASKING PRICE $1,595,000
PRICE/UNIT $227,857
PRICE/SF $158.86
CAP RATE 5.27 %
OCCUPANCY 97.00 %
Cap Rate Range 3.76 % - 5.27 %
LOW HIGH
Price/Unit Range $127,273 - $227,857
LOW HIGH
Price S/F $159 - $278
LOW HIGH
Zanita Townhomes On Market Comparables Charts | 16
Zanita Townhomes On Market Comparables Map | 17
# Property Name Address City
S Zanita Townhomes 5034 Manzanita Ave Carmichael
1 Engle Road Apartments 5729 Engle Road Carmichael
2 3620 Wintun Dr Carmichael
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Sale Comparables Charts
Sale Comparables Map
Zanita Townhomes Sale Comparables Summary | 19
1
Olympic Way Townhomes5432 Olympic Way,Sacramento, CA 95842
TOTAL UNITS 6
YEAR BUILT 1969
SALE PRICE $1,075,000
PRICE/UNIT $179,167
PRICE/SF $155.53
CAP RATE 5.58 %
OCCUPANCY 100.00 %
CLOSING DATE 5/14/2018
Cap Rate Range 5.27 % - 5.58 %
LOW HIGH
Price/Unit Range $179,167 - $227,857
LOW HIGH
DOM Range
LOW HIGH
Notes Sold for $155.53/square foot. Inferior sub-market.
S
Zanita Townhomes5034 Manzanita Ave,Carmichael, CA 95608
TOTAL UNITS 7
YEAR BUILT 1979
ASKING PRICE $1,595,000
PRICE/UNIT $227,857
PRICE/SF $158.86
CAP RATE 5.27 %
OCCUPANCY 97.00 %
Cap Rate Range 5.27 % - 5.58 %
LOW HIGH
Price/Unit Range $179,167 - $227,857
LOW HIGH
Zanita Townhomes Sale Comparables Charts | 20
Zanita Townhomes Sale Comparables Map | 21
# Property Name Address City
S Zanita Townhomes 5034 Manzanita Ave Carmichael
1 Olympic Way Townhomes 5432 Olympic Way Sacramento
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Rent Roll
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Zanita Townhomes Rent Roll Details | 23
Unit Square Feet Unit Mix Monthly Rent PSF Market Rent Move-in Date1 1,486 2 bd / 2.5 ba $1,450 $0.98 $1,595 2/16/2018
2 1,486 2 bd / 2.5 ba $1,495 $1.01 $1,595 9/20/2017
3 1,486 2 bd / 2.5 ba $1,175 $0.79 $1,595 2/1/2017
4 1,486 2 bd / 2.5 ba $1,495 $1.01 $1,595 4/19/2018
5 1,486 2 bd / 2.5 ba $1,150 $0.77 $1,595 2/1/2017
6 1,486 2 bd / 2.5 ba $1,495 $1.01 $1,595 11/3/2017
7 1,486 2 bd / 2.5 ba $1,445 $0.97 $1,595 8/14/2017
Totals/Averages $9,705 $0.93 $11,165
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Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
Zanita Townhomes Income & Expense Analysis | 25
INCOME CURRENT PRO FORMA
Gross Potential Rent $115,560 $133,980
Parking $250
RUBS $350
Gross Potential Income $115,560 $134,580
Less: General Vacancy $3,467
Effective Gross Income $112,093 $134,580
Less: Expenses $28,028 $36,920
Net Operating Income $84,065 $97,660
Annual Debt Service $64,899 $64,899
Debt Coverage Ratio 1.30 1.50
Cash Flow After Debt Service $19,166 $32,761
Principal Reduction $15,654 $15,654
Total Return 6.2 % $34,820 8.7 % $48,415
EXPENSES CURRENT PROFORMA
Real Estate Taxes $1,305 $9,132 $2,575 $18,024
Insurance $262 $1,833 $262 $1,833
Management Fee $600 $4,200 $600 $4,200
Repairs & Maintenance $773 $5,410 $773 $5,410
Water / Sewer $542 $3,793 $542 $3,793
Landscaping $171 $1,200 $171 $1,200
Utilities $351 $2,460 $351 $2,460
Total Operating Expense $4,004 $28,028 $5,274 $36,920
Expense / SF $2.79 $3.67
% of EGI 25.00 % 27.43 %
Per Unit Per Unit
Expense Notes: Tenants are responsible for their own water usage and cost.
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
Zanita Townhomes Multiyear Cash Flow Assumptions | 26
INCOME GROWTH RATESGross Potential Rent 2.00 %
PROPOSED FINANCINGLoan Type Fully Amortized
Down Payment $558,250
Loan Amount $1,036,750
Interest Rate 4.75 %
Annual Debt Service $64,899
Loan to Value 65 %
Zanita Townhomes Cash Flow Analysis| 27
CASH FLOW
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $115,560 $133,980 $136,660 $139,393 $142,181 $145,024 $147,925 $150,883 $153,901 $156,979
Parking $250 $250 $250 $250 $250 $250 $250 $250 $250
RUBS $350 $350 $350 $350 $350 $350 $350 $350 $350
Gross Potential Income $115,560 $134,580 $137,260 $139,993 $142,781 $145,624 $148,525 $151,483 $154,501 $157,579
General Vacancy $3,467 $0 $0 $0 $0 $0 $0 $0 $0 $0
Effective Gross Income $112,093 $134,580 $137,260 $139,993 $142,781 $145,624 $148,525 $151,483 $154,501 $157,579
Operating ExpensesReal Estate Taxes $9,132 $18,024 $18,024 $18,024 $18,024 $18,024 $18,024 $18,024 $18,024 $18,024
Insurance $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833
Management Fee $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200
Repairs & Maintenance $5,410 $5,410 $5,410 $5,410 $5,410 $5,410 $5,410 $5,410 $5,410 $5,410
Water / Sewer $3,793 $3,793 $3,793 $3,793 $3,793 $3,793 $3,793 $3,793 $3,793 $3,793
Landscaping $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Utilities $2,460 $2,460 $2,460 $2,460 $2,460 $2,460 $2,460 $2,460 $2,460 $2,460
Total Operating Expense $28,028 $36,920 $36,920 $36,920 $36,920 $36,920 $36,920 $36,920 $36,920 $36,920
Net Operating Income $84,065 $97,660 $100,340 $103,073 $105,861 $108,704 $111,605 $114,563 $117,581 $120,659Annual Debt Service $64,899 $64,899 $64,899 $64,899 $64,899 $64,899 $64,899 $64,899 $64,899 $64,899
Cash Flow $19,166 $32,761 $35,440 $38,173 $40,961 $43,805 $46,705 $49,664 $52,682 $55,760
Effective Gross Income vs Operating Expenses Cash Flow
Zanita Townhomes Cash Flow Analysis| 28
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 3.43 % 5.87 % 6.35 % 6.84 % 7.34 % 7.85 % 8.37 % 8.90 % 9.44 % 9.99 %
CAP Rate 5.27 % 6.12 % 6.29 % 6.46 % 6.64 % 6.82 % 7.00 % 7.18 % 7.37 % 7.56 %
Debt Coverage Ratio 1.30 1.50 1.55 1.59 1.63 1.68 1.72 1.77 1.81 1.86
Operating Expense Ratio 25.00 % 27.43 % 26.89 % 26.37 % 25.85 % 25.35 % 24.85 % 24.37 % 23.89 % 23.42 %
Loan to Value 65.00 % 65.00 % 65.00 % 65.00 % 65.00 % 65.00 % 65.00 % 65.00 % 65.00 % 65.00 %
Breakeven Ratio 82.90 % 75.66 % 74.18 % 72.73 % 71.31 % 69.92 % 68.55 % 67.21 % 65.90 % 64.61 %
Price / SF $159 $159 $159 $159 $159 $159 $159 $159 $159 $159
Price / Unit $227,857 $227,857 $227,857 $227,857 $227,857 $227,857 $227,857 $227,857 $227,857 $227,857
Expense / SF $3 $4 $4 $4 $4 $4 $4 $4 $4 $4
Income / SF $11 $13 $14 $14 $14 $15 $15 $15 $15 $16
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Demographic Charts
Zanita Townhomes Demographics | 30
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 19,334 153,289 356,186
2010 Population 18,988 151,180 359,725
2017 Population 20,164 159,172 378,396
2022 Population 21,116 165,929 394,342
2017 African American 1,444 11,442 25,120
2017 American Indian 233 1,652 3,846
2017 Asian 980 7,719 23,925
2017 Hispanic 3,053 29,248 69,752
2017 White 15,038 114,755 269,235
2017 Other Race 912 11,221 27,335
2017 Multiracial 1,443 11,376 26,469
2017-2022: Population: Growth Rate 4.65 % 4.15 % 4.15 %
2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 985 7,149 14,622
$15,000-$24,999 994 6,567 14,176
$25,000-$34,999 930 6,208 14,116
$35,000-$49,999 1,307 9,517 20,850
$50,000-$74,999 1,470 11,754 27,179
$75,000-$99,999 1,058 7,886 19,435
$100,000-$149,999 1,034 7,745 19,518
$150,000-$199,999 352 2,617 7,165
$200,000 or greater 261 2,358 6,802
Median HH Income $49,680 $52,117 $55,547
Average HH Income $67,253 $70,501 $76,167
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 8,499 62,891 143,844
2010 Total Households 7,981 59,329 138,297
2017 Total Households 8,391 61,800 143,862
2022 Total Households 8,744 64,083 149,111
2017 Average Household Size 2.38 2.55 2.61
2000 Owner Occupied Housing 4,166 33,516 79,738
2000 Renter Occupied Housing 4,007 27,087 58,781
2017 Owner Occupied Housing 4,012 32,794 79,588
2017 Renter Occupied Housing 4,379 29,006 64,274
2017 Vacant Housing 552 3,989 9,236
2017 Total Housing 8,943 65,789 153,098
2022 Owner Occupied Housing 4,125 33,759 82,107
2022 Renter Occupied Housing 4,619 30,324 67,005
2022 Vacant Housing 579 4,111 9,549
2022 Total Housing 9,323 68,194 158,660
2017-2022: Households: Growth Rate 4.15 % 3.65 % 3.60 %
Source: esri
Zanita Townhomes Demographic Charts | 31
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Population by Race
Zanita Townhomes Demographic Charts | 32
2017 Household Occupancy - 1 Mile Radius
Average Income Median Income
2017 Household Income Average and Median
Zanita Townhomes
Exclusively Marketed by:
Jacob StanfillSenior Associate
916-716-8131
Lic: 01914043
powered by CREOP
