Upload
others
View
11
Download
0
Embed Size (px)
Citation preview
92 MULTIFAMILY UNITS in SACRAMENTO, CALIFORNIA
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
2
The information contained herein is strictly confidential, furnished solely for the purpose of considering the acquisition of the property described herein, and is not to be used for any other purpose or made available to any other
person without the expressed written consent of Newmark Knight Frank.
It has been obtained from the Seller and may include other sources believed to be reliable, but no representation is being made with regard to its accuracy or completeness.
Prospective investors should undertake their own investigations and reach their own conclusions without reliance upon the material contained herein. Neither the Seller nor the Agent nor any of their respective officers, agents or principals has made or will make any representations or warranties, expressed or implied, as to the accuracy or completeness of the Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of the Offering Memorandum or its contents.
Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser.
The Seller and Agent expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the property and/or terminate discussions with any entity at any time with or without notice.
The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the property unless and until such offer for the property is approved by the Seller, and any conditions to the Buyer’s obligations there under have been satisfied or waived.
CONFIDENTIALITY AGREEMENT
04 Executive Summary
16Property Overview
20 Comparable Analysis
27Financial Analysis
Table of Contents
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
32
LEAD CONTACT
NATE OLESONLicense CA: 01467941
MARC ANDENMATTENLicense CA: 01956176
CAM CORWINLicense CA: 02049950
SACRAMENTO OFFICE980 9th St, Suite 2500
Sacramento, CA 95814T 916.920.4400
SAN FRANCISCO OFFICE655 Montgomery St, Suite 1705
San Francisco, CA 94111T 415.354.0777
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
4E X E C U T I V E S U M M A R Y
SUR APARTMENTSS A C R A M E N T O0.4 Miles to Subject 0.4 Miles to Subject
0.3 Miles to Subject
0.3 Miles to Subject
0.3 Miles to Subject
BUS STOP
BUS STOP
0.4 Miles toSubject
0.4 Miles toSubject
Fulton Ave
Marconi Ave
Country Club Estates$1.2M Median SFH
INVESTMENT SUMMARY
Price $13,000,000
Address 2927 Marconi AveSacramento, CA 95821
County Sacramento County
Year Built / Renovated 1954 / 2018
Total # of Units 92
Net Rentable SF 48,792
# of Acres 2.35
Density 39.15
Parking Spaces 92
Parking Ratio 1:1
Total Buildings 3
Total # of Stories 2
Occupancy 97.8%
THE OFFERINGNewmark Knight Frank, as the exclusive advisor, is pleased to present the opportunity to acquire SUR Apartments, a 92-unit apartment community located in Sacramento, CA.
CAP GRM 5.7%/7.4% 9.9/8.7
KEY INVESTMENT HIGHLIGHTS » Loss-to-Lease and RUBS Opportunity - Based on increasing rental
demand and comparable properties, SUR has an opportunity to immediately increase rents. Currently, there are no RUBS in-place and owner provides complimentary high speed wireless internet.
» Full Renovation Opportunity - Recent leases and comparables in the market demonstrate the ability to raise rents significantly by continuing interior renovations with granite countertops, stainless-steel appliances, and vinyl plank flooring. This full renovation has been proven in 34 of the units and achieves a $208 premium over the partially renovated units.
» Robust Submarket Fundamentals — Since January 2016, the Arden Arcade submarket has increased 17% or $237 on average rents. With limited supply and increase in demand, rent growth continues to look strong.
» Proximity to Shopping Center and Retail - SUR is only a short walk away from Town and Country Village, which is anchored by Wal-Mart, Trader Joe’s, Sprouts, TJ Maxx, Starbucks, and Jamba Juice.
CLICK HERE FOR DRONE
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
54
SUR APARTMENTSS A C R A M E N T O0.4 Miles to Subject 0.4 Miles to Subject
0.3 Miles to Subject
0.3 Miles to Subject
0.3 Miles to Subject
BUS STOP
BUS STOP
0.4 Miles toSubject
0.4 Miles toSubject
Fulton Ave
Marconi Ave
Country Club Estates$1.2M Median SFH
5
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
6
Country Club Estates$1.2M Median SFH
80
80
SUR APARTMENTSS A C R A M E N T O
ARDEN FAIR MALL
TOWN & COUNTRY VILLAGE
Del Paso Country ClubHome of 2015 Senior U.S. Open
Rated High Performerby U.S. News
W
5 MIN WALKFROM SUBJECT Fulton Ave
Edison Ave
DOWNTOWNSACRAMENTO
7 MilesSacramento
River
Marcon
i Ave
Sacramento CountyHuman Assistance Building
Marconi LearningAcademy
CLICK HERE FOR DRONE VIDEO
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
76
Total Upside Opportunity
Total Income Obtainable
$236,076
The difference from SUR’s in-place income and potential renovated income is $236,076*, which equates to a 160 basis point spread or 7.4% stabilized cap rate.
Limited New Supply
New construction of multifamily properties continues to remain limited throughout
Sacramento, particularly in the Arden Arcade submarket. There are zero projects under construction and only one in planning in
Arden.
Robust Employment Market
As of December 2018, the unemployment rate in the Sacramento Metro dropped
to 3.5% and CA DoT predicts a 5.4% job growth and 16.0% income growth from
2017 to 2022.
Relative Affordability
The average rent in Downtown Sacramento is $471/month more than
the average rent in Arden Arcade.
$471Avg. Rent Delta to Downtown Sacramento
Loss-To-Lease/RUBS Upside
Annualized Revenue Obtainable
$98,928
With an avg. of $102 of loss-to-lease/fully renovated unit and implementing an avg. of $51/unit RUBS, a new owner can grow the
property’s NOI by $98,928 *.
Renovation Upside
Annualized Renovation Upside
$137,148
SUR offers investors the opportunity to capture significant upside through
renovation - averaging $208 per unit or $137,148* in potential annual upside on
top of loss-to-lease.
*refer to Financial Analysis on page 30
INVESTMENT HIGHLIGHTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
8
$137,148R e n o vat i o n
U p s i d e
$42,768L o s s - t o -L e a s e
U p s i d e
$236Kt o ta L a n n U a L
U p s i d e
$56,160RUBs U p s i d e
LOSS-TO-LEASE/RUBS CAPTURE & RENOVATION UPSIDECapturing loss-to-lease, implementing RUBS, and an interior renovation program will substantially increase NOI. Based on current market rents, which reflect recent leasing activity and have been verified through an analysis of comparable properties, there is an average monthly loss-to-lease of $102 per unit for renovated units. There is an additional renovation premium of $208 per unit for the fifty-five unrenovated units. The combined upside, including RUBS, equates to $236k in additional revenue or a 7.4% cap rate.
TYPE # OF UNITS IN-PLACE RENT
LOSS-TO-LEASE
RENOVATION PREMIUM POST RENO RENT RUBS
1x1 - Partial 22 $1,068 $227 $1,295 $50
1x1 - Full 26 $1,181 $114 $1,295 $50
1x1 L - Partial 33 $1,200 $195 $1,395 $50
1x1 L - Full 5 $1,315 $80 $1,395 $50
2x1 - Full 4 $1,445 $50 $1,495 $60
3x2 - Full 2 $1,595 $1,595 $70
Weighted Avg. 92 $1,188 $102 $208 $1,352 $51
Monthly Total $109,335 $3,564 $11,429 $1,352 $4,680
Annual Total $1,312,020 $42,768 $137,148 $1,492,080 $56,160
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
98
ALL UNITS ARE UPGRADED OR RENOVATEDSUR features newly-renovated one, two, and three bedroom apartment homes that combine modern style with upscale interior finishes.
PARTIALRENOVATION
FULLRENOVATION
New or resurfaced cabinet doors New cabinet doors and boxes
New cabinet pulls & hinges Soft close hinges
Refinished kitchen countertops New granite countertops
New white appliances New stainless steel appliances
Carpet or wood plank flooring Vinyl plank flooring (no carpet)
New bathroom vanity
New shower valves
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
10
U P D A T E D LIGHT FIXTURES
S TA I N L E S S STEEL APPLIANCES
BRAND NEW CABINETS & BOXES
G R A N I T E CO U N T E R TO P S
VINYL PLANK FLOORING
$208RENOVATION
PREMIUM
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
1110
$208RENOVATION
PREMIUM
NEW CEILING FANS & LIGHTS
BRAND NEW CABINETS & BOXES
VINYL PLANK FLOORING
B R A N D N E WWA L L U N I T S
NEW BATHROOMVANITIES
G R A N I T E CO U N T E R TO P S
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
12
Significant Capital ImprovementsA notable advantage of SUR is the property’s outstanding physical condition, which is the result of significant capital improvements over the past few years. These improvements have significantly enhanced the property’s overall curb appeal, and have helped drive premium rental rates at the property.
CAPITAL IMPROVEMENT LISTBelow is a list of recent capital improvements done within the last two years:
» New roof (2016)
» New gutters
» New double pane windows
» New exterior paint
» Resurfaced parking lot
» New hot water heaters and recirculating pumps (x4 rooms)
» New landscaping
» New AC units (wall)
» Resurfaced walkways
» New trash enclosure
» Entire property has been wired for high-speed internet
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
1312
Renovated Interior Leasing Office Newly Paved Parking Lot
New Leasing
Office
New Branding & Signage
Pool Upgrades
Landscaping & Tree Pruning
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
14
LIMITED SUPPLY WITH NATIONALLY TOP RANKED RENT GROWTHPer Cantor Fitzgerald’s proprietary forecasting model, the Sacramento region is projected to be the third ranked multifamily market in the nation for above-average growth prospects in 2018.
• Robust Rent Growth: Sacramento continues to see strong rent growth and declining vacancy rates — annual rent growth exceeded 7% throughout the region, and vacancy rates are at 3.5% based on internal NKF market surveys.
• Strong Employment Gains: Sacramento employment figures continue to improve, with steady employment growth and declining unemployment rates. The MSA has surpassed its 2007 pre-recession peak and now stands at a new high of 1,104,404 total jobs as of December 2018.
• Limited New Supply: New construction of multifamily properties continues to remain limited throughout Sacramento. This lack of new supply combined with steady employment gains has continued to fuel rent growth (see chart below).
0%
1%
2%
3%
4%
5%
0
5,000
10,000
15,000
20,000
25,000
30,000Inventory growth in Sacramento
remains the lowest of all major
markets tracked by AxioMetrics
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
1514
$1,161
$1,185
$1,212
$1,256
$1,248
$1,281
$1,304
$1,297
$1,325
$1,353
$1,366
$1,398
2.9%
1.8% 2.0%2.6%
3.7% 3.9% 3.7%4.1%
3.7% 3.7%3.41%
3.93%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
$950
$1,000
$1,050
$1,100
$1,150
$1,200
$1,250
$1,300
$1,350
$1,400
1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018
Arden Arcade vs Vacancy Rate
Average Rent Vacancy Rate
ARDEN ARCADE AVERAGE RENT & VACANCY RATES
EXCEPTIONAL SUBMARKET FUNDAMENTALSSince January 2016 rents in the Arden Arcade increased 17%, or $237 on average, while vacancy remained essentially flat. This
strong rent growth can be attributed to a combination of continued job growth, very limited new construction, and a growing renter
population. According to AxioMetrics, Arden Arcade rent growth is projected to grow over 6% year-over-year.
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
16P R O P E R T Y O V E R V I E W
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
1716
PROPERTY SUMMARY
Address2927 Marconi Ave
Sacramento, CA 95821
County Sacramento
Year Built / Renovated 1954 / 2018
Total # of Units 92
Net Rentable SF 48,792
Parcel # 078C-0441-001-20
# of Acres 2.35
Density 39.15
Parking Spaces 92
Parking Ratio 1:1
Total Buildings 3
Total # of Stories 2
Framing Wood-Framed
Roof Pitched
Paving Asphalt
Water Supply Copper & Galvanized
Electrical Copper
Water Heaters 4 100 Gallon Tanks - New in 2016
Washer/Dryers Coin Operated - Owned
UTILITIES
PAID BY METHOD SUPPLIED BY
Electric Resident Direct SMUD
Gas Resident Direct PG&E
Water/Sewer Owner Direct CUBS
Trash Owner Direct Republic
Internet* Owner Direct Comcast
UNIT MIX SUMMARY
UNIT TYPE # UNITS % OF TOTAL
AVG IN-PLACE RENT
AVG RENO RENT
1x1 - Partial 22 24% $1,068 $1,295
1x1 - Full 26 28% $1,181 $1,295
1x1 L - Partial 33 36% $1,200 $1,395
1x1 L - Full 5 5% $1,315 $1,395
2x1 - Full 4 4% $1,445 $1,495
3x2 - Full 2 2% $1,595 $1,595
Total/Avg 92 100% $1,188 $1,352
*The building was recently re-wired for high speed internet. Owner provides free internet as an amenity to all tenants. Tenants contact Comcast directly for support, hardware, and accounts.
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
18
The front two buildings, units #1 through #48, consists of “open layout” one-
bedroom units, which combine the kitchen and living room. The bedroom is
still separate. 26 of the 48 units of this type have been fully renovated.
1-BEDROOM
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
1918
1-BEDROOMS - LARGEThe back building, units #49 through #92 (excluding 2 and 3 bedrooms),
consists of larger one-bedroom units with a traditional, separated kitchen and
living room. 5 of the 38 units of this type have been fully renovated.
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
20COMPARABLE ANALYSIS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
2120COMPARABLE ANALYSIS
TOTAL RENT COMPARISON: 1-BEDROOM RENTS
Avg Reno Rent RUBS Internet Total Rent
$1,339* $0 $0 $1,339
$1,425 $70 $30 $1,525
$1,352 $70 $30 $1,452
$1,215 $120 $30 $1,375
$1,255 $90 $30 $1,365
$1,207 $90 $30 $1,327
$1,327 $70 $30 $1,408
SUR
Kensington
Westwood
The Eleven Hundred
Woodbridge
Veranda at the Park
TOTAL/AVERAGE
Projected renovated rents are some of
the most affordable in the submarket
* Weighted average of fully renovated 1x1 ($,295) and 1x1 L ($1,395)
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
22
1-BEDROOM ADJUSTED RENT TOTALS
$1,000
$1,075
$1,150
$1,225
$1,300
$1,375
$1,450
$1,525
$1,600
Kensington Westwood Average Woodbridge The Eleven Hundred SUR Veranda at the Park
Internet
RUBS
1 BR Rent
Subject Comp 1 Comp 2 Comp 3 Comp 4 Comp 5
Property Name SUR Kensington Westwood The Eleven Hundred Woodbridge Veranda at the Park TTL / AVG
Address 2927 Marconi Ave 3644 Kings Way 4900 Marconi Ave 1100 Howe Ave 2028 San Juan Rd 2264 Cottage Way
City Sacramento Sacramento Carmichael Sacramento Sacramento Sacramento
Year Built 1954 1976 1968 1968 1988 1986 1977
Units 92 301 182 565 301 116 293
Avg Asking Rent $1,352 $1,534 $1,445 $1,437 $1,419 $1,352 $1,448
Avg SF 541 897 807 773 765 809 804
Avg Rent PSF $2.50 $1.71 $1.79 $1.86 $1.85 $1.67 $1.80
Renovated Yes Yes Yes Yes Yes Yes
RUBS No Yes Yes Yes Yes Yes
Internet Included Not Included Not Included Not Included Not Included Not Included
Pet Rent $25 $35 $40 $50 $15 $15 $36
Occupancy 97.8% 94.1% 98.3% 96.5% 97.7% 97% 96.6%
Property Name SUR Kensington Westwood The Eleven Hundred Woodbridge Veranda at the Park TTL / AVG
Studios Units 40 Units 2 Units 30 Units Units UnitsAvg Asking Rent $1,073 $1,007 $1,130 $1,095
Avg SF 480 480 502 489Avg Rent PSF $2.24 $2.10 $2.25 $2.241 Bedroom 48 Units Units Units 202 Units 92 Units 40 Units
Avg Asking Rent $1,295 $1,215 $1,255 $1,207 $1,225Avg SF 495 660 655 740 668
Avg Rent PSF $2.62 $1.84 $1.92 $1.63 $1.831 Bedroom Large 38 Units 79 Units 124 Units Units Units UnitsAvg Asking Rent $1,395 $1,425 $1,352 $1,380
Avg SF 550 756 680 710Avg Rent PSF $2.54 $1.88 $1.99 $1.95
2 Bedroom 1 Bath 4 Units Units 43 Units 247 Units 116 Units UnitsAvg Asking Rent $1,495 $1,582 $1,500 $1,445 $1,493
Avg SF 775 1000 754 765 783Avg Rent PSF $1.93 $1.58 $1.99 $1.89 $1.91
2 Bedroom 2 Bath Units 158 Units 9 Units Units 93 Units 76 UnitsAvg Asking Rent $1,650 $1,746 $1,550 $1,429 $1,575
Avg SF 1030 1240 875 845 951Avg Rent PSF $1.60 $1.41 $1.77 $1.69 $1.66
3 Bedroom 2 Bath 2 Units 24 Units 4 Units 85 Units Units UnitsAvg Asking Rent $1,595 $1,895 $2,385 $1,884 $1,904
Avg SF 1014 1180 1850 1187 1,209Avg Rent PSF $1.57 $1.61 $1.29 $1.59 $1.57
4 Bedroom 2 Bath Units Units Units 1 Units Units UnitsAvg Asking Rent $1,950 $1,950
Avg SF 1300 1,300Avg Rent PSF $1.50 $1.50
SUR currently does not charge RUBS and provides high speed internet services to tenants free of charge
RENT COMPARABLES MATRIX
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
2322
RENT COMPARABLES SORT CHART
Subject Comp 1 Comp 2 Comp 3 Comp 4 Comp 5
Property Name SUR Kensington Westwood The Eleven Hundred Woodbridge Veranda at the Park TTL / AVG
Address 2927 Marconi Ave 3644 Kings Way 4900 Marconi Ave 1100 Howe Ave 2028 San Juan Rd 2264 Cottage Way
City Sacramento Sacramento Carmichael Sacramento Sacramento Sacramento
Year Built 1954 1976 1968 1968 1988 1986 1977
Units 92 301 182 565 301 116 293
Avg Asking Rent $1,352 $1,534 $1,445 $1,437 $1,419 $1,352 $1,448
Avg SF 541 897 807 773 765 809 804
Avg Rent PSF $2.50 $1.71 $1.79 $1.86 $1.85 $1.67 $1.80
Renovated Yes Yes Yes Yes Yes Yes
RUBS No Yes Yes Yes Yes Yes
Internet Included Not Included Not Included Not Included Not Included Not Included
Pet Rent $25 $35 $40 $50 $15 $15 $36
Occupancy 97.8% 94.1% 98.3% 96.5% 97.7% 97% 96.6%
Property Name SUR Kensington Westwood The Eleven Hundred Woodbridge Veranda at the Park TTL / AVG
Studios Units 40 Units 2 Units 30 Units Units UnitsAvg Asking Rent $1,073 $1,007 $1,130 $1,095
Avg SF 480 480 502 489Avg Rent PSF $2.24 $2.10 $2.25 $2.241 Bedroom 48 Units Units Units 202 Units 92 Units 40 Units
Avg Asking Rent $1,295 $1,215 $1,255 $1,207 $1,225Avg SF 495 660 655 740 668
Avg Rent PSF $2.62 $1.84 $1.92 $1.63 $1.831 Bedroom Large 38 Units 79 Units 124 Units Units Units UnitsAvg Asking Rent $1,395 $1,425 $1,352 $1,380
Avg SF 550 756 680 710Avg Rent PSF $2.54 $1.88 $1.99 $1.95
2 Bedroom 1 Bath 4 Units Units 43 Units 247 Units 116 Units UnitsAvg Asking Rent $1,495 $1,582 $1,500 $1,445 $1,493
Avg SF 775 1000 754 765 783Avg Rent PSF $1.93 $1.58 $1.99 $1.89 $1.91
2 Bedroom 2 Bath Units 158 Units 9 Units Units 93 Units 76 UnitsAvg Asking Rent $1,650 $1,746 $1,550 $1,429 $1,575
Avg SF 1030 1240 875 845 951Avg Rent PSF $1.60 $1.41 $1.77 $1.69 $1.66
3 Bedroom 2 Bath 2 Units 24 Units 4 Units 85 Units Units UnitsAvg Asking Rent $1,595 $1,895 $2,385 $1,884 $1,904
Avg SF 1014 1180 1850 1187 1,209Avg Rent PSF $1.57 $1.61 $1.29 $1.59 $1.57
4 Bedroom 2 Bath Units Units Units 1 Units Units UnitsAvg Asking Rent $1,950 $1,950
Avg SF 1300 1,300Avg Rent PSF $1.50 $1.50
Assumes units are renovated and does not include RUBS, internet, or other charges
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
24
SUR Occupancy: 91.3% • YOC: 19542927 Marconi Ave. Sacramento, CA
Unit Amenities: Stainless Steal Appliances, Granite Countertops, New Cabinets, Plank and Carpet Flooring, Open Layout, New Bathroom Vanity, Ceiling FansProperty Amenities: Pets Accepted, Laundry Facilities, Swimming Pool, 24 Hour Emergency Maintenance, Internet Service Included, Assigned Parking Included
UNIT TYPE # OF UNITS AVG SF AVG MKT RENT AVG PSF
1x1 - Partial 22 495 $1,295 $2.62
1x1 - Full 26 495 $1,295 $2.62
1x1 L - Partial 33 550 $1,395 $2.54
1x1 L - Full 5 550 $1,395 $2.52
2x1 - Partial 4 550 $1,495 $2.72
3x2 - Full 2 950 $1,595 $1.68
Total/Avg 92 530 $1,352 $2.55
Kensington Occupancy: 94.1% • YOC: 19763644 Kings Way Sacramento, CA Owner: Klein Financial
Unit Amenities: Dishwasher, White Appliances, New Cabinets, Plank and Carpet Flooring, Vaulted Ceilings*, Air Conditioning and Ceiling Fans, Private Patio or Balcony, Fireplace*Property Amenities: Pets Accepted, Laundry Facilities, Fitness Center, Swimming Pool, Affordable Housing Options, Smoke-Free Community
UNIT TYPE # OF UNITS AVG SF AVG MKT RENT AVG PSF
0X1 40 480 $1,073 $2.24
1X1 L 79 756 $1,425 $1.88
2X2 158 1,030 $1,650 $1.60
3x2 24 1,180 $1,895 $1.61
Total/Avg 301 861 $1,511 $1.83
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
2524
Westwood Occupancy: 98.3% • YOC: 19684900 Marconi Ave. Carmichael, CA Owner: ColRich
Unit Amenities: Dishwasher, Stainless Steal Appliances, Ceiling Fan(s), Walk-in Closets, Microwave, Oversized Closets, Large Windows, Wood Burning Fireplace*, Balcony/Private Patio, Extra StorageProperty Amenities: Pets Accepted, Laundry Facilities, Fitness Center, Swimming Pool, 24 Hour Emergency Maintenance, Hot Tub, Covered Parking, Assigned Parking Included
UNIT TYPE # OF UNITS AVG SF AVG MKT RENT AVG PSF
0X1 2 480 $1,007 $2.10
1X1 L 124 680 $1,352 $1.99
2X1 43 1000 $1,582 $1.58
2X2 9 1240 $1,746 $1.41
3x2 4 1850 $2,385 $1.29
Total/Avg 180 1193 $1,766 $1.57
The Eleven Hundred Occupancy: 96.5% • YOC: 19681100 Howe Ave. Sacramento, CA Owner: Open Path
Unit Amenities: Dishwasher, Garbage Disposal, White Appliances, New Cabinets, Plank Flooring, Air Conditioning and Ceiling Fans, Fireplace*, Furnished Available*Property Amenities: Pets Accepted, Pool Table in Clubhouse, Fitness Center, Swimming Pool and Spa, 24-hour Maintenance, Outdoor Basketball Court
UNIT TYPE # OF UNITS AVG SF AVG MKT RENT AVG PSF
0X1 30 502 $1,130 $2.25
1X1 202 660 $1,215 $1.84
2X1 247 754 $1,500 $1.99
3X2 85 1187 $1,884 $1.59
4X2 1 1300 $1,950 $1.50
Total/Avg 535 975 $1,637 $1.73
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
26
Woodbridge Occupancy: 97.7% • YOC: 19882028 San Juan Rd. Sacramento, CA Owner: Randall Realty
Unit Amenities: W/D In-Unit, Dishwasher, Black Appliances, New Cabinets, Plank Flooring, Linen Closet, Central HVAC, Private Patio or Balcony, Fireplace*, Office*Property Amenities: Pets Accepted, Playground, Fitness Center, Swimming Pool and Spa, 24-hour Maintenance, Smoke-Free Community, Indoor Basketball Court
UNIT TYPE # OF UNITS AVG SF AVG MKT RENT AVG PSF
1X1 92 655 $1,255 $1.92
2X1 116 765 $1,445 $1.89
2X2 93 875 $1,550 $1.77
Total/Avg 301 765 $1,417 $1.86
Veranda at the Park Occupancy: 96.5% • YOC: 19862264 Cottage Way Sacramento, CA 95825 Owner: Mark Abrahams
Unit Amenities: Dishwasher, White Appliances, New Cabinets, Plank Flooring, Open Layout, Linen ClosetProperty Amenities: Pets Accepted, Laundry Facilities, Fitness Center, Swimming Pool, 24 Hour Emergency Maintenance, Hot Tub, Covered Parking, Assigned Parking Included
UNIT TYPE # OF UNITS AVG SF AVG MKT RENT AVG PSF
1X1 40 740 $1,207 $1.63
2X2 76 845 $1,429 $1.69
Total/Avg 116 793 $1,318 $1.66
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
2726F I N A N C I A L A N A LY S I S
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
28
The following section provides detailed information on the operations of the subject property, including an analysis of revenue trends, historic operations, and our pro forma underwriting and assumptions.
OVERVIEW
UNIT MIX SUMMARY
UNIT TYPE # UNITS % OF TOTAL
AVG IN-PLACE RENT
AVG RENO RENT
1x1 - Partial 22 24% $1,068 $1,295
1x1 - Full 26 28% $1,181 $1,295
1x1 L - Partial 33 36% $1,200 $1,395
1x1 L - Full 5 5% $1,315 $1,395
2x1 - Full 4 4% $1,445 $1,495
3x2 - Full 2 2% $1,595 $1,595
Total/Avg 92 100% $1,188 $1,352
INVESTMENT SUMMARY
Price $13,000,000
Address 2927 Marconi AveSacramento, CA 95821
County Sacramento County
Year Built 1954
Total # of Units 92
Net Rentable SF 48,792
# of Acres 2.35
Density 39.15
Parking Spaces 92
Parking Ratio 1:1
Total Buildings 3
Total # of Stories 2
Occupancy 97.8%
DEBT NOTES
Existing Debt
Lender Fannie Mae, originated by Wells Fargo
Original Balance $7,650,000
Interest Rate 4.84%
Origination Date 08/31/17
Amortization 30 years
Interest Only Through September 2023
Maturity Date 9/1/2029
Prepayment Yield Maintenance
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
2928
HISTORIC RENTAL INCOME CHART
$104,278 $103,897 $104,006 $103,868
$118,123
$3,175 $3,440 $3,575 $3,624
$3,624$4,680
$80,000
$85,000
$90,000
$95,000
$100,000
$105,000
$110,000
$115,000
$120,000
$125,000
$130,000
Jan Feb March In‐Place RENO
Income Other Income RUBS
T-3 Income matches in-place rents5.7% Cap Rate
Through RUBS and Renovations7.4% Cap Rate
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
30FINANCIAL ANALYSIS
FINANCIALS
PRICE UNITMIX‐RENTS In‐Place RENOPrice $13,000,000 Type #ofunits SQFT %ofMix Rent RentPriceperUnit $141,304 1 BR x 1 BA - Partial 22 495 23.9% $1,068 $1,295PriceperSquareFoot $266 1 BR x 1 BA - Full 26 495 28.3% $1,181 $1,295
1 BR x 1 BA L - Partial 33 550 35.9% $1,200 $1,3951 BR x 1 BA L - Full 5 550 5.4% $1,315 $1,395
RETURNS Cap GRM 2 BR x 1 BA - Full 4 775 4.3% $1,445 $1,4952018 6.5% 10.8 3 BR x 2 BA - Full 2 1014 2.2% $1,595 $1,595T3 5.7% 10.4 TTL/AVG 92 541 100.0% $1,188 $1,352InPlace 5.7% 9.9RENO 7.4% 8.7 HISTORICALANDPROFOMAINCOMEANDEXPENSE Notes
Income 2018 T3 In‐Place RENOFinancing GROSS POTENTIAL RENT $1,198,972 $1,248,724 $1,312,020 $1,492,080Loan Amount $7,650,000 Less: VACANCY LOSS $0 $0 -$65,601 -$74,604Interest Rate 4.84% NetRentalIncome $1,198,972 $1,248,724 $1,246,419 $1,417,476Amortization Years 360 Plus: OTHER INCOME $43,491 $40,760 $43,491 $43,491LTV 58.8% Plus: UTILITY REIMBURSEMENTS $0 $0 $0 $56,160 $50, $60, $70 for 1x1, 2x1, and 3x2Down Payment $5,350,000 TotalIncome $1,242,463 $1,289,484 $1,289,910 $1,517,127I/O Payments -$ 370,260
Expenses 2018 PF PF PFPAYROLL $115,020 $115,020 $115,020 $115,020ADMINISTRATIVE $1,477 $9,200 $9,200 $9,200 $100/unitTURNOVER $3,547 $23,000 $23,000 $23,000 $250/unitREPAIRS & MAINTENANCE $17,079 $23,000 $23,000 $23,000 $250/unitUTILITIES $98,888 $98,888 $98,888 $98,888BULK INTERNET $33,860 $33,860 $33,860 $33,860 Based on historicalsLANDSCAPING / GROUNDS $0 $4,600 $4,600 $4,600 $50/unitCONTRACT SERVICES / OTHER $6,171 $6,171 $6,171 $6,171TOTALCONTROLLABLEEXPENSES $276,042 $313,739 $313,739 $313,739MANAGEMENT FEE $36,000 $38,685 $38,697 $45,514 3%INSURANCE $17,507 $17,507 $17,507 $17,507 Based on historicalsREAL ESTATE TAXES $72,175 $159,185 $159,185 $159,185 ReassessedSPECIAL ASSESSMENTS $0 $1,058 $1,058 $1,058TOTALOPERATINGEXPENSES $401,724 $530,173 $530,186 $537,002CAPEX / RESERVES $0 $23,000 $23,000 $23,000 $250/unitTOTALEXPENSES $401,724 $553,173 $553,186 $560,002
NOIAFTERRESERVES $840,739 $736,311 $736,724 $957,125Debt Service -$370,260 -$370,260 -$370,260 -$370,260CashFlow $470,479 $366,051 $366,464 $586,865Cap Rate 6.5% 5.7% 5.7% 7.4%CashonCashReturn 8.8% 6.8% 6.8% 11.0%
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
SURAPARTMENTS
30
NEWMARK KNIGHT FRANK980 9th St, Suite 2500Sacramento, CA 95814T 916.920.4400
F O R M O R E I N F O R M AT I O N O N T H I S O F F E R I N G M E M O R A N D U M , P L E A S E C O N TA C T :
SURAPARTMENTS
NATE [email protected]
916.599.6523 License CA: 01467941
MARC ANDENMAT [email protected]
916.835.8844 License CA: 01956176
CAM COR [email protected]
415.430.1037License CA: 02049950