OFFERING MEMORANDUM
Yosemite Court Apartments16-Unit Multifamily Investment Opportunity
843 N Yosemite StreetStockton, California 95210
INVESTMENT CONTACTS:
Colton Toste
Associate
+1 209 752 0296
BRE#01993261
Ruben Sandoval
Vice President
+1 209 918 1536
BRE#01806675
Confidentiality & Disclaimer
Section 1
This Confidential Offering Memorandum (the “Memorandum”) has been prepared and
presented to the recipient (the “Recipient”) by NAI Benchmark First Commercial (NAI
“Benchmark”) as part of NAI Benchmark’s efforts to market for sale the real property
located at 843 N Yosemite Ave, Stockton, CA , (“The Property”). NAI Benchmark is the
exclusive agent and broker for the owner(s) of the Property (the “Owner”). NAI Benchmark
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. NAI Benchmark 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
NAI Benchmark, 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 NAI Benchmark.
PLEASE NOTE THE FOLLOWING:
NAI Benchmark, 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 NAI Benchmark
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 complete-
ness 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, NAI Benchmark may not have referenced or included summar- ies 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, NAI Benchmark will provide the Recipient with copies of all
referenced contracts and other documents. NAI Benchmark 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. NAI Benchmark 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.
NAI Benchmark reserves the right to return of this Memorandum and the material in it and
any other material provided by NAI Benchmark to the Recipient at any time. Acceptance of
this Memorandum by the Recipient constitutes acceptance of the terms and conditions
outlined above.
843 N Yosemite Street, Stockton, CA • 16-Unit Apartment Complex
Property Overview
Section 1
TOTAL ASKING PRICE $1,312,000
SQUARE FOOTAGE 8,209
TOTAL UNITS 16
PRICE PER UNIT $82,000
CURRENT CAP RATE 4.51%
CURRENT GRM 10.94
PRICE PER SF $159.82
FINANCIAL SUMMARY
Please do not visit property without
an appointment.3
Colton Toste
Associate
+1 209 752 0296
BRE#01993261
Ruben Sandoval
Vice President
+1 209 918 1536
BRE#01806675
SITE
PROFORMA CAP RATE 6.94%
Demographics 2015 1 Mile 3 Mile 5 Mile
Population 23,098 168,359 276,495
Average Household Income $44,535 $57,038 $62,687
843 N Yosemite Street, Stockton, CA • 16-Unit Apartment Complex
Pershing Ave
Property Overview
INVESTMENT HIGHLIGHTS
• 100% occupied
• Very clean and well-maintained
• Excellent upside potential in rents
• Highly Desirable Neighborhood
• Perfect Investment for out of area owner
• Low maintenance landscaping
• Convenient access to Restaurants and Shops
• All units are separately metered for utilities
PROPERTY DESCRIPTION
Clean, well-maintained property that shows pride of
ownership. Renters love this highly desirable area. This
two story stucco apartment building on a corner lot has
16 one bedroom units, strong management, and a very
low vacancy rate. Rents are extremely below market.
Tranquil courtyard at the ground level, and the laundry
room is on the 2nd floor. Fantastic property for an owner
looking for pride of ownership. One gas & water meter,
owner pays water, trash and sewer.
Across from very popular neighborhood shopping strip,
and 3 blocks from Dameron Hospital. Minutes to
Interstate 5 for commuters.
843 N Yosemite Street, Stockton, CA • 16-Unit Apartment Complex
Property Overview
Section 1
ADDRESS 843 N Yosemite Street, Stockton, CA
COUNTY San Joaquin County
APN #
YEAR BUILT 1971
RENTABLE SF 8,209
LAND AREA (ACRES) 0.23
LAND AREA (SF) 10,100
TOTAL UNITS 16
STORIES 2
CONSTRUCTION TYPE WoodFrame
SIDING MATERIAL
FOUNDATION Cement Slab
ROOF TYPE Flat
HVAC Wall-mounted Units
LAUNDRY Facility on Site
PROPERTY SUMMARY
Stucco/wood shingle
BUILDINGS 1
135-411-05
843 N Yosemite Street, Stockton, CA • 16-Unit Apartment Complex
Financial Overview
Estimated Income
Scheduled Base Rent $119,880
Laundry Income ($200/month) $2,400
Less: Vacancy Factor 3.0% $2,397
Scheduled Gross Income $119,882
Estimated Operating Expenses
New Property Taxes (1.2717%) $16,684
Direct Assessments $184.46
Insurance $3,900
Repairs and Maintenance ($200/Unit) $3,200
Water ($210/month) $2,520
Sewer ($550/month) $6,600
Garbage ($170/month) $2,040
PG&E ($650/month) $7,800
Turnover Cost ($200/unit) $3,200
Landscaping ($200/month) $2,400
Pest Control ($75/month) $900
On-Site Management ($400/month) $4,800
Off-Site Management (5% of SGI) $5,994
Estimated Total Expenses $60,223
50%
Estimated Net Operating Income $59,659
INCOME / OPERATING EXPENSES
Section 2
ACTUAL RENT ROLL / MARKET RENTS
UNITSUNIT
TYPEAPPROX SQ FT
MONTHLY
RENT/UNITMARKET RENTS
7 1BD/1BA 515 $625 $800
3 1BD/1BA 515 $600 $800
3 1BD/1BA 515 $620 $800
1 1BD/1BA 515 $650 $800
1 1BD/1BA 515 $630 $800
1 1BD/1BA 515 $675 $800
16 Monthly Gross Rent: $9,990 $12,800
• A recent rent survey shows that in place rents are extremely below market. The next
investor can increase rents without any capital expenditure to $800 for each unit. This is
a conservative estimate based on asking rents for comparable 1 bedroom / 1 bathroom
apartments in the area. (see Comparable Analysis)
• Increasing rents would bring CAP Rate to 6.94% and GRM to 8.54 on current asking
price.
Asking Price $1,312,000
Current
CAP Rate4.55%
Price Per Unit $82,000
GRM 10.94
ACTUAL
Asking Price $1,312,000
Proforma
CAP Rate6.94%
Price Per Unit $82,000
GRM 8.54
PROFORMA / MARKET RENTS
843 N Yosemite Street, Stockton, CA • 16-Unit Apartment Complex
2
126 E Vine St, Stockton, CA
RENT COMPARABLES
419 W Flora St, Stockton, CA
1
344 W Poplar St, Stockton, CA
3
Asking Rent $900
Unit Type 1 BD/1 BA
Notes: Unrenovated unit, vinyl
flooring in living room.
Asking Rent $750
Unit Type 1 BD/1 BA
Notes: Unrenovated unit
turned with new carpet, paint,
W/D hookup.
4
324 E Magnolia St, Stockton, CA
1030 N. San Joaquin Street, Stockton, CA 95202 • 10 Unit Apartment Complex
Comparable Analysis
Asking Rent $900
Unit Type 1 BD/1 BA
Notes: gas stove, fridge, ceiling
fans, wall heater, back patio
area and separate front
entrance.
Asking Rent $925
Unit Type 1 BD/1 BA
Notes: Completely renovated
property inside and out.
843 N Yosemite Street, Stockton, CA • 16-Unit Apartment Complex
1030 N. San Joaquin Street, Stockton, CA 95202 • 10 Unit Apartment Complex
RENT COMPARABLES
1
Comparable Analysis
$-
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
$800.00
$900.00
$1,000.00
Subject 1 2 3 4
Asking Rent
843 N Yosemite Street, Stockton, CA • 16-Unit Apartment Complex
1030 N. San Joaquin Street, Stockton, CA 95202 • 10 Unit Apartment Complex
Location Overview
843 N Yosemite Street, Stockton, CA • 16-Unit Apartment Complex
Downtown StocktonHistorically, Downtown Stockton began with a mix of thriving commercial ventures and colorful characters.Today, Downtown Stockton is a vibrant waterfront community with endless opportunities and amenities. TheDowntown is captivated with world-class art and entertainment, renovated historical buildings, museums,theaters, restaurants and attractions.
Stockton Ball ParkThe Stockton Ball Park is home to the Stockton Ports, a minor league baseball team that is an affiliate of theOakland Athletics. The ballpark features 5,200 fixed seats in addition to other seating facilities and amenities.
The WaterfrontWith the remarkable transformation of Stockton’s Downtown Waterfront Community, this historic area boasts thedeep water Stockton Channel, a thriving port that transports goods from the heart of Stockton to the PacificOcean. Beautiful Residential communities, hotels and resorts line the river banks.
San Joaquin County is located in the Central Valley of California, just east of the San Francisco Bay Area. As of the2010 census, the population was 685,306. The county seat is Stockton. The Central Valley is one of the world’smost productive agricultural regions. More than 230 crops are grown there. On less than 1 percent of the totalfarmland in the United State, the Central Valley produces 8 percent of the nation’s agricultural output by value: 17billion USD in 2002. Its agricultural productivity relies on irrigation from both surface water diversions andgroundwater pumping from wells. About on-sixth of the irrigated land in the U.S. is in the Central Valley.
Virtually all non-tropical crops are grown in the Central Valley, which is the primary source for a number of foodproducts throughout the United States, including tomatoes, almonds, grapes, cotton, apricots, and asparagus.There are 6,000 almond growers that produce more than 600 million pounds a year, about 70 percent of the world’ssupply.
Early farming was concentrated close to the Sacramento-San Joaquin Delta, where the water table was high yearround and water transport more readily available, but subsequent irrigation projects have brought many more partsof the valley into productive use. For example, the Central Valley Project was formed in 1935 to redistribute andstore water for agricultural and municipal purposes with dams and canals. The even larger California State WaterProject was formed in the 1950s and construction continued throughout the following decade.
The City of Stockton
San Joaquin County, California
Section 2
SITE
The Bay Area
Even though Stockton is not technically considered part of the Bay
Area, many of its residents commute to the Bay Area for jobs and
therefore is directly influenced by the Bay Area’s economic health.
The San Francisco Bay Area, commonly known as the Bay Area, is a
metropolitan region that encompasses metropolitan areas such as
San Francisco-Oakland (12th largest in the country). San Jose (31st
largest in the country), and smaller urban and rural areas. The
United States Census Bureau defines the Bay Area as a Combined
Statistical Area (CSA) with approximately 7.4 million people,
including the nine counties bordering San Francisco Bay (Alameda,
Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara,
Solano, and Sonoma) as well as Santa Cruz and San Benito
Counties, making it the fifth largest CSA in the United States. The
combined urban area of San Jose and San Francisco is the 43rd
largest urban area in the world.
The Bay Area is anchored by three major cities. San Francisco is the
cultural and financial center of the metropolitan area and Northern
California in general. It is the second-most densely populated major
city (population greater than 200,000) in the United States. The
largest city in the Bay Area in terms of both land and population is
San Jose, which is located in the South Bay and is part of the world
renowned technology hub known as Silicon Valley. Oakland, the
third most populous city, is a central hub for the East Bay, is a major
industrial center, and contains the Port of Oakland, the fifth busiest
container port in the United States. The region’s northern counties
encompass California’s famous Wine Country, home to hundreds of
vineyards and wineries while the region’s Pacific Ocean coastline
hosts numerous beaches.
The San Francisco Bay Area has the 2nd most Fortune 500
Companies in the United States, and is known for its natural beauty,
liberal politics, entrepreneurship, and diversity. With excellent
colleges in proximity, the area ranks second in highest density of
college graduates, and performs above the state median household
income in the 2010 census. Based on a 2013 population report from
the California Department of Finance, the Bay Area is the only region
in California where the rate of people migrating in from other areas
in the United States is greater than the rate of those leaving the
region. Additionally, In 2011, the San Francisco Bay Area had a GDP
of $535 billion, which would rank 19th among countries.
Location Overview