O F F E R I N G M E M O R A N D U M
SOUTHPORT APARTMENTS460 Canal St, San Rafael, CA 94901
460 Canal StSan Rafael, CA 94901
Joby TapiaManaging Director
CalDRE #01307460
03PROPERTYINFORMATION
08LOCATIONINFORMATION
17FINANCIALANALYSIS
22SALECOMPARABLES
29DEMOGRAPHICS
31BROKER BIO
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Table of Contents
Property Inform
ation
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Property Information
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Executive Summary
PRICE$4,000,000
SQ FT15,540 SF
CAP RATE4.21%
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Property Highlights
• Well-maintained with clear pride of ownership
• Elevator jack recently replaced in 2016
• Main sewer line recently replaced in 2019
• Pool with relaxing landscaping
• Dock with 8 slips (optional access)
• Gated off-street parking
Other Details
Lot Size: 17,860 SF
Price / SF: $257.40
NOI: $168,343
Year Built: 1965
Zoning: Multiple-Residential - Improved
Market: Marin
Submarket: San Rafael
Property Description
Offered for the first time in over 40 years, Southport Apartments at 460Canal St in San Rafael, CA, presents the opportunity to acquire apride-of-ownership property with achievable upside on in-place rents.The property is comprised of 13 large apartments, all with their owndecks, with five of the units having waterfront views of the canal. Theproperty also includes a dock with eight slips that can be used togenerate additional ancillary income.
Location Description
The Canal Waterfront, historically built in the 1950's as a housing entrypoint for recent college graduates has transformed over the years as ithas become one of the last affordable housing neighborhoods in MarinCounty.
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Property Description
Location Information
Building Name Southport Apartments
Street Address 460 Canal St
City, State, Zip San Rafael, CA 94901
County Marin
Market Marin
Sub-market San Rafael
Cross-Streets Hoag St
Signal Intersection No
Building Information
NOI $168,343.60
Cap Rate 4.21
Occupancy % 100.0%
Tenancy Multiple
Ceiling Height 8 ft
Minimum Ceiling Height 8 ft
Number of Floors 3
Average Floor Size 6,835 SF
Year Built 1965
Roof Tar and Gravel
Free Standing No
Number of Buildings 1
Property Highlights
• Well-maintained with clear pride of ownership
• Elevator jack recently replaced in 2016
• Main sewer line recently replaced in 2019
• Pool with relaxing landscaping
• Dock with 8 slips (optional access)
• Gated off-street parking
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Complete Highlights
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Additional Photos
Location Information
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Location Information
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Regional Map
San Rafael, CA
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Location Maps
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Aerial Maps
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Site Plan
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Site Plan
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Floor Plans
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Floor Plans
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Floor Plans
Financial Analysis
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Financial Analysis
Investment Overview Current
Price $4,000,000
Price per Unit $307,692
GRM 14.1
CAP Rate 4.2%
Cash-on-Cash Return (yr 1) 1.98 %
Total Return (yr 1) $74,309
Debt Coverage Ratio 1.23
Operating Data Current
Gross Scheduled Income $284,580
Other Income $800
Total Scheduled Income $285,380
Vacancy Cost $8,537
Gross Income $276,842
Operating Expenses $108,499
Net Operating Income $168,343
Pre-Tax Cash Flow $31,676
Financing Data Current
Down Payment $1,600,000
Loan Amount $2,400,000
Debt Service $136,667
Debt Service Monthly $11,388
Principal Reduction (yr 1) $42,633
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Financial Summary
Income Summary Current
Rental Income $284,580
Laundry Contract $800
Market Rental Income -
Laundry -
Gross Income $285,380
Expense Summary Current
NEW Property Taxes $46,995
Special Assessments $14,914
Insurance (Estimate) $9,600
Maintenance (Est. @ $600/unit) $7,800
Elevator $1,400
Reserves (Est. @ $250/unit) $3,250
Water $3,750
Trash $6,200
PG&E $4,200
Business Licenses and Permits $1,675
Management (Est. @ 3%) $8,715
Gross Expenses $108,499
Net Operating Income $168,343
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Income & Expenses
UnitNumber
UnitBed
UnitBath
UnitSize (SF)
CurrentRent
CurrentRent (Per SF)
MarketRent
MarketRent/SF
A 2 1 1,020 $2,500 $2.45 $2,800 $2.75
1 2 1 1,020 $2,325 $2.28 $3,000 $2.94
2 2 1 1,055 $2,550 $2.42 $3,000 $2.84
3 0 1 607 $1,147 $1.89 $1,800 $2.97
4 1 1 842 $0 $0.00 $2,200 $2.61
5 1 1 840 $1,668 $1.99 $2,200 $2.62
6 2 1 977 $1,860 $1.90 $2,600 $2.66
7 2 1 1,020 $2,500 $2.45 $3,000 $2.94
8 2 1 1,055 $2,550 $2.42 $3,000 $2.84
9 0 1 607 $920 $1.52 $1,800 $2.97
10 1 1 842 $1,800 $2.14 $2,200 $2.61
11 1 1 840 $1,800 $2.14 $2,200 $2.62
12 2 1 977 $2,095 $2.14 $2,600 $2.66
Totals/Averages 11,702 $23,715 $2.03 $32,400 $2.77
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Rent Roll
Unit Type Count % Total Size (SF) Rent Rent/SF Market Rent Market Rent/SF Deposit
2 BR 7 53.8 1,018 $2,340 $2.30 $2,800 $2.75
1 BR 4 30.8 841 $1,750 $2.08 $2,200 $2.62
Studio 2 15.4 607 $1,034 $1.70 $1,800 $2.97
Totals/Averages 13 100% 11,704 $25,448 $2.17 $32,000 $2.73 $0
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Unit Mix Summary
Sale C
omparables
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Sale Comparables
Subject Property460 Canal St | San Rafael, CA 94901
$4,000,000Sale Price: $168,343NOI: 4.21%CAP:
14.06GRM: $307,692Price / Unit: 13No. Units:
$257.40Price PSF: 15,540 SFBuilding SF: 1965Year Built:
Offered for the first time in over 40 years, Southport Apartments at 460 Canal St in San Rafael, CA, presents the opportunity to acquire apride-of-ownership property with achievable upside on in-place rents. The property is comprised of 13 large apartments, all with their own decks, withfive of the units having waterfront views of the canal. The property also includes a dock with eight slips that can be used to generate additional ancillaryincome.
1150 Belvedere St.San Rafael, CA 94901
$5,800,000Sale Price: 12.65GRM: 11/08/2019Closed:
3.69%CAP: $207,142Price / Unit: 28No. Units:
$376.62Price PSF: 15,400 SFBuilding SF: 0 AcresLot Size:
The comparable property is located on Belvedere St. mid-block between Vivian St. and Louise St. in the Canal Neighborhood of San Rafael. It iscomprised of (28) 1bd/1ba apartments on the smaller side at approx. 550 SF each. In place rents that were at 25-30% below market presenting avalue-add opportunity for the buyer to increase rents. The property was in good overall condition and 100% occupied at close of escrow.
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Sale Comps
2285 Woodland Ave.San Rafael, CA 94901
$7,100,000Sale Price: 16.34GRM: 08/16/2019Closed:
3.55%CAP: $355,000Price / Unit: 20No. Units:
$413.80Price PSF: 17,158 SFBuilding SF: 1989Year Built:
0 AcresLot Size:
The comparable property is located on a hilltop setting set back from Woodland Ave. overlooking Gerstle Park and Downtown San Rafael. It iscomprised of (20) fully occupied units consisting of large units with (4) 2bd/2ba, (4) 2bd/1ba, (8) 1bd/1ba, and (4) Studios. The modern building is 3-floorswith garages on the first floor and (2) floors of apartments served by (1) elevator and stairs. Apartments are separately metered for PG&E, contain viewdecks or patios, larger kitchens with dishwashers, baseboard heating, dual pane windows, and sliding glass doors. The roof was replaced 1-year priorto sale and the property was in overall good condition but the units have not been recently upgraded. There was an on-site coin-op laundry room.There was approximately 25% upside in the rents at the close of escrow.
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Sale Comps
3289 Woodland Ave.San Rafael, CA 94901
$2,408,000Sale Price: 12.52GRM: 10/15/2018Closed:
5.25%CAP: $401,333Price / Unit: 6No. Units:
$508.98Price PSF: 4,731 SFBuilding SF: 1942Year Built:
0 AcresLot Size:
The subject property is located on steep lot located at Woodland Ave. and Lindaro St. adjacent to Gerstle Park. There were two buildings, a 2 and 4unit, on one parcel. It is comprised of (5) 2 bd/1ba apartments of varying sizes and (1) 2 bd/1.5ba owner’s unit, a large single car garage and severaldetached storage units. The hilltop building featured forced air HVAC and offered views spanning to the bay and beyond. 4 of 6 units had expansiveand private decks. Two units had been extensively renovated; the remaining four units were in average condition; overall property condition was good.The seller gave a price concession because the buyer’s agent wasn’t paid a commission, buyer assumed seller’s loan and gave a short-term lease backto seller. Price of record was $2.305MM but the equivalent net price to seller was $2.408MM. Seller represented by Geller-Williams Team of NAINorCal.
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41315 Lincoln Ave.San Rafael, CA 94901
$5,150,000Sale Price: 15.06GRM: 07/19/2019Closed:
3.93%CAP: $321,875Price / Unit: 16No. Units:
$429.17Price PSF: 12,000 SFBuilding SF: 1948Year Built:
0 AcresLot Size:
The comparable property is located on the West side of Lincoln Ave. mid-block between Laurel Pl. and Pacheco St. It is comprised of (16) unitsconsisting of (16) 1bd/1ba units of approximately 750 SF which were well maintained but in dated condition. The rents were at least 15% below market asconfirmed by the buyer. The property was in good overall condition and 100% occupied at close. The sale was conducted as an “off-market”transaction.
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Sale Comps
528 Ross St.San Rafael, CA 94901
$2,100,000Sale Price: 15.11GRM: 08/07/2019Closed:
3.61%CAP: $300,000Price / Unit: 7No. Units:
$668.36Price PSF: 3,142 SFBuilding SF: 1969Year Built:
0 AcresLot Size:
The comparable property is located on Ross St. mid-block between Marin St. and D St. in the Gerstle Park Neighborhood of San Rafael. It is comprisedof (7) units consisting of (7) Jr. 1bd/1ba units. (4) units were updated with quartz counters, travertine flooring, appliances, and backsplashes. (4) of theunits also contained patios/decks, fireplaces and (1) carport. All units were in excellent condition with separate metering for PG&E and onsite coin-oplaundry. The exterior was in well maintained condition and was freshly painted prior to sale. There was approximately 10% upside in the rents at theclose of escrow.
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Sale Comps
Subject Property Price Bldg SF Price/SF Price/Unit CAP GRM # of Units
Southport Apartments460 Canal StSan Rafael, CA 94901
$4,000,000 15,540 SF $257.40 $307,692 4.21% 14.06 13
Sale Comps Price Bldg SF Price/SF Price/UNIT CAP GRM # of Units Close
1150 Belvedere St.San Rafael, CA94901
$5,800,000 15,400 SF $376.62 $207,142 3.69% 12.65 28 11/08/2019
2285 Woodland Ave.San Rafael, CA94901
$7,100,000 17,158 SF $413.80 $355,000 3.55% 16.34 20 08/16/2019
3289 Woodland Ave.San Rafael, CA94901
$2,408,000 4,731 SF $508.98 $401,333 5.25% 12.52 6 10/15/2018
41315 Lincoln Ave.San Rafael, CA94901
$5,150,000 12,000 SF $429.17 $321,875 3.93% 15.06 16 07/19/2019
528 Ross St.San Rafael, CA94901
$2,100,000 3,142 SF $668.36 $300,000 3.61% 15.11 7 08/07/2019
Price Bldg SF Price/SF Price/UNIT CAP GRM # of Units Close
Totals/Averages $4,511,600 10,486 SF $430.25 $292,961 4.01% 14.34 15.4
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Sale Comps Summary
1San Rafael, CA94901
150 Belvedere St. 2San Rafael, CA94901
285 Woodland Ave.
3San Rafael, CA94901
289 Woodland Ave. 4San Rafael, CA94901
1315 Lincoln Ave.
5San Rafael, CA94901
28 Ross St.
460 Canal St | San Rafael, CA 94901Subject Property
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Sale Comps Map
Dem
ographics
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Demographics
Population 0.25 Miles 0.5 Miles 1 Mile
Total Population 3,257 8,048 16,583
Median age 28.4 29.8 33.0
Median age (Male) 27.7 29.2 32.6
Median age (Female) 29.5 30.8 33.8
Households & Income 0.25 Miles 0.5 Miles 1 Mile
Total households 876 2,306 5,410
# of persons per HH 3.7 3.5 3.1
Average HH income $57,102 $66,500 $84,611
Average house value $959,126 $945,971 $945,921
* Demographic data derived from 2010 US Census
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Demographics Map & Report
Broker B
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Broker Bio
CalDRE #01307460
Joby Tapia
Managing Director
[email protected]: 415.329.4623 | Cell: 415.254.4788
Professional Background
Joby is an accomplished Multifamily Executive with over 20 years experience managing commercial and multi-family assets, including market rate andrent-controlled properties, for both private and institutional owners in Northern California. Prior to joining NAI NorCal, Joby managed several portfoliosthat consisted of mid- and high-rise construction and several rent-controlled, stabilized assets. In addition, his experience included oversight of large,garden-style properties and commercial high-rise buildings with total units ranging from 2,500 to 5,500. With his strategic, creative and entrepreneurialskill set, he was able to generate millions of dollars in excess value by implementing budget-appropriate measures to generate the best possiblemarket rent while maintaining a strong focus on the ROI of renovation/turnover dollars.
Joby possesses excellent written and verbal communication skills across all levels of an organization and clientele. His detail-oriented and analyticalapproach can leverage his operational and market expertise to support acquisition (or disposition) feasibility and due diligence.
Education
Meteorology, University of MassachusettsFinance, San Francisco State University
Memberships
Secretary, Marin Rental Property AssociationPast member of the Coalition for Better Housing’s Executive CommitteeCalifornia Apartment Association certified instructor for CCRM designation courseworkGuardsmen (Benefit at-risk youths in San Francisco)
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Presenting Broker