CLARMAR WAY APARTMENTS 2020 Clarmar Way • San Jose, CA 95128 1 NON - ENDORSEMENT and DISCLAIMER NOTICE
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Offering Memorandum CLARMAR WAY APARTMENTS 2020 Clarmar Way • San Jose, CA 95128 1 NON - ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT MIKE HENSHAW at MARCUS & MILLICHAP FOR MORE DETAILS. 650 269 6453 or [email protected] 2020 CLARMAR WAY APARTMENTS San Jose, CA ACT ID ZAB0010273 2 2020 CLARMAR WAY APARTMENTS TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement Notes Pricing Detail Acquisition Financing MARKET COMPARABLES 03 Sales Comparables Rent Comparables MARKET OVERVIEW 04 Market Analysis Demographic Analysis 3 2020 CLARMAR WAY APARTMENTS INVESTMENT OVERVIEW 4 2020 CLARMAR WAY APARTMENTS OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA Price $11,000,000 CURRENT YEAR 1 Down Payment 40% / $4,400,000 CAP Rate 4.77% 5.57% MAJOR EMPLOYERS Loan Amount $6,600,000 GRM 14.05 12.48 Net Operating Loan Type Proposed New $524,657 $613,110 Income EMPLOYER # OF EMPLOYEES Net Cash Flow Interest Rate / Amortization 3.15% / 30 Years 4.19% / $184,305 6.20% / $272,758 Acer Cloud Technology Inc 5,024 After Debt Service Price/Unit $323,529 Total Return 7.24% / $318,686 9.35% / $411,434 Crows Auto Sales 3,505 Price/SF $665.70 Agilent Labs 3,275 Number of Units 34 Agilent Technologies Inc 3,275 Rentable Square Feet 16,524 Rosendin Electric 3,000 Number of Buildings 2 Broadcom 2,413 Number of Stories 2 City of San Jose 2,327 Year Built 1956 Lot Size 1 acre(s) Sanmina Corporation 2,276 Apple 2,115 Corrections Dept of 2,008 Agilent Santa Clara Site 2,000 Hadco Santa Clara Inc 2,000 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2019 Estimate Pop 24,716 253,443 615,873 2010 Census Pop 22,635 231,608 567,604 2019 Estimate HH 9,980 101,751 228,012 2010 Census HH 8,896 90,166 205,075 Median HH Income $108,419 $101,319 $110,178 Per Capita Income $63,561 $58,595 $56,667 Average HH Income $156,807 $144,697 $151,947 #5 2020 CLARMAR WAY APARTMENTS OFFERING SUMMARY INVESTMENT OVERVIEW The Clarmar Way Apartments are a well maintained 34 -unit apartment community located at 2020 Clarmar Way in the home of Silicon Valley, San Jose, California The property is a 34 unit apartment complex located minutes from O'Connor Hospital, Valley Medical Center, San Jose City College, Santana Row and Valley Fair Shopping Center. The property is located very close to Interstates 280 and 880. Downtown San Jose, Santa Clara University and San Jose State University are just minutes away by car. The unit mix contain Thirty-Two (32)1Br/1Ba, One (1) 2BR/2Ba, and One (1) 3BR/2B unit. The majority of the units at the property have been remodeled with upgraded appliances, flooring and cabinetry. Situated on a one acre parcel totaling of land, the subject property was originally constructed in 1956 and has a gross livable area of approximately 16524 total square feet which offers its tenants quality and spacious floor-plans plans to call home. The residents enjoy common area amenities such as on-site coin operated laundry facilities, private patios/balconies, mature landscaping, off street parking and ample street parking. The investment appeal of this asset is driven by Silicon Valley's robust and diverse employment fundamentals, historically low vacancy levels, and a very significant affordability gap. INVESTMENT HIGHLIGHTS ▪ Excellent in place income stream with value add opportunity for additional upside ▪ Ground Zero Silicon Valley Location ▪ Patios and backyards create an apartment home type of feeling for the residents ▪ Low Density apartment community with mature landscaping ▪ Great Curb appeal with an established long term tenant base ▪ Upgraded and spacious interiors with modern appliances. 6 2020 CLARMAR WAY APARTMENTS OFFERING SUMMARY PROPERTY OVERVIEW 2020 Clarmar Way Apartments are located within minutes of many distinguished educational institutions including San Jose State University, Santa Clara University as well as several community colleges. Within close proximity, there are many of Silicon Valley high-tech companies such as Ebay, Cisco Systems,IBM, Adobe Systems, Intel, LinkedIn, Apple, Yahoo!, Google, Facebook and many others. The subject property is conveniently located near Highways 880, 280, 101, 17 and 85 providing residents with direct access to local employment and attractions both local and across the Bay Area. 2020 Clarmar Way Apartments are located near Santana Row, Valley Medical Center, O' Connor Hospital and minutes from Downtown San Jose. Google is set to develop one of their largest campuses around Diridon Station which is expected to bring 20,000 new jobs to San Jose. Due to this expansion, many of the established developers are stating that this is the strongest and most activity that Downtown San Jose has ever seen. Common Area Amenities ▪ Low density Apartment Community ▪ Mature Landscaping ▪ On Site Laundry ▪ Ample street parking ▪ Private and secluded patios and decks Unit Amenities ▪ Private patios and Balconies ▪ Upgraded unit interiors ▪ Modern appliances ▪ Spacious and efficient floorpans ▪ Onsite Parking #77 2020 CLARMAR WAY APARTMENTS OFFERING SUMMARY PROPERTY SUMMARY THE OFFERING PROPOSED FINANCING Property 2020 Clarmar Way Apartments First Trust Deed Price $11,000,000 Loan Amount $6,600,000 Property Address 2020 Clarmar Way, San Jose, CA Loan Type Proposed New Assessors Parcel Number 274-58-019 Interest Rate 3.15% Zoning C Amortization 30 Years SITE DESCRIPTION Loan Term 10 Years Number of Units 34 Loan to Value 60% Number of Buildings 2 Debt Coverage Ratio 1.54 Number of Stories 2 Year Built/Renovated 1956 Rentable Square Feet 16,524 Lot Size 1 acre(s) Type of Ownership Fee Simple Density 34 units per acre Parking 34 Parking Ratio 1:1 Landscaping Mature Topography Flat UTILITIES Water Landlord Phone Tenant Electric Tenant Gas Tenant CONSTRUCTION Foundation Concrete perimeter/slab Framing Wood Frame