The Maxwell ~ Offering Memorandum 568-576 N
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The Maxwell ~ Offering Memorandum 568-576 N. 1st Street 557 N. 2nd Street San Jose, CA 95112 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. 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THE MAXWELL San Jose, CA ACT ID ZAB0010285 2 INVESTMENT OVERVIEW 01 Executive Summary Offering Summary Maps, Property Photos & Aerial Photos Area Information FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement / Notes Pricing Detail MARKET COMPARABLES 03 Sales / Rent Comparables MARKET OVERVIEW 04 Market Analysis Demographic Analysis This information (and any information transmitted) has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © Marcus & Millichap INVESTMENT OVERVIEW The Maxwell OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA Price $7,250,000 CURRENT YEAR 1 Down Payment 40% / $2,900,000 CAP Rate 3.65% 4.41% MAJOR EMPLOYERS Loan Amount $4,350,000 GRM 16.34 14.28 Net Operating Loan Type Proposed New $264,712 $319,955 Income EMPLOYER # OF EMPLOYEES Net Cash Flow Interest Rate / Amortization 3% / 30 Years 1.54% / $44,634 3.44% / $99,878 Lockheed Martin Corporation 5,683 After Debt Service Price/Unit $402,778 Total Return 4.67% / $135,454 6.67% / $193,459 Acer Cloud Technology Inc 5,024 Price/SF $596.71 Crows Auto Sales 3,505 Number of Units 18 Cisco Systems 3,460 Rentable Square Feet 12,150 Agilent Technologies Inc 3,275 Number of Buildings 4 Intel Corporation 3,002 1st Street: 3 / 2nd Number of Stories Street: 2 Rosendin Electric 3,000 Year Built / Renovated 1936 / 2019 Santa Clara Valley Trnsp Auth 2,553 Lot Size 0.63 acre(s) Broadcom 2,413 UNIT MIX City of San Jose 2,327 NUMBER APPROX. UNIT TYPE Sanmina Corporation 2,281 OF UNITS SQUARE FEET Corrections Dept of 2,008 18 One Bedroom 675 DEMOGRAPHICS 18 Total 12,150 1-Miles 3-Miles 5-Miles 2019 Estimate Pop 28,943 237,301 679,737 2010 Census Pop 25,294 213,263 616,925 2019 Estimate HH 11,567 81,436 227,884 2010 Census HH 9,723 71,144 200,772 Median HH Income $84,629 $85,191 $100,174 Per Capita Income $51,767 $44,173 $47,145 Average HH Income $125,912 $126,376 $139,427 #5 The Maxwell INVESTMENT SUMMARY OFFERING SUMMARY Located in a highly desirable area of San Jose and in the center of Silicon Valley, The Maxwell consists of 18 one-bedroom units averaging approximately 740 SF, including two penthouse units, each with expansive patios. The property consists of four buildings on a block-wide 27,360 SF lot, spanning between 1st and 2nd Street in North San Jose, and consisting of 3 parcels. Located across the street from Japantown/Ayer light rail station, the residents of The Maxwell enjoy the convenience of transportation to Downtown and North San Jose employers, while living in a predominantly residential neighborhood. The future Google campus will be served by San Diridon Station only 5 Light Rail stations from The Maxwell. 50% of the Maxwell units have been renovated (9 of 18) with new flooring, lighting, interior hardware, fixtures, paint and appliances. Recently completed projects to the community include new mailboxes, exterior paint, new TPO roofs (2017), refurbished hardwood floors in the foyers and stairwells, exterior doors, new exterior fire stairwell, and landscaping. The Maxwell units are individually metered for electricity and gas, with a master water for each building. Residents enjoy assigned and guest parking, stacked in-unit washer/dryers, and ultra-convenient access to shopping, dining and entertainment including San Pedro Square and Coleman Plaza. Additional rental income can be achieved through continuation of unit renovations and installation of air conditioning units. With its proximity to San Jose International Airport and major Bay Area technology employers, The Maxwell offers the savvy investor the opportunity to diversify sources of revenue with short-term rentals. The corporate housing industry is evolving, with emerging technologies, shifting travel preferences, and changing corporate travel policies. A study shows that 37% of business travelers were looking for increased autonomy (private accommodation) on the trip, according to American Express Global Business Travel. Information is available here → San Jose Municipal Code Located on a tree-lined residential neighborhood, residents at The Maxwell enjoy easy access to the many amenities provided by the great city of San Jose. The property is a short distance to numerous popular restaurants, shops and entertainment located throughout downtown San Jose. Additionally, the subject property is less than 1.5 miles from nearby shopping that includes Trader Joe’s, Target, Starbuck’s, Chili’s Restaurant, BJ’s Brewery and more. The Maxwell is surrounded by Major Attractions Including SAP Center, San Jose Museum of Art, San Jose Convention Center, the Children’s Discovery Museum, and the Tech Museum of Innovation, and is just 2 miles from the proposed Google Village site. INVESTMENT HIGHLIGHTS ▪ Off Street Parking ▪ Within minutes of San Pedro Square, downtown shopping, dining and ▪ Steps from VTA Light Rail entertainment ▪ 100% Rent Collection during Covid-19 ▪ Stackable washer/dryer unit in each ▪ Convenient access to highways 101, 280 apartment home and 85; plus major thoroughfares 6 The Maxwell OFFERING SUMMARY PROPERTY SUMMARY THE OFFERING PROPOSED FINANCING Property Maxwell Apartments First Trust Deed Price $7,250,000 Loan Amount $4,350,000 Property Address 568-576 N 1st Street, 557 N 2nd Street, San Jose, CA Loan Type Proposed New Assessors Parcel Number 249-43-048 / 249-43-049 / 249-43-084 Interest Rate 3% SITE DESCRIPTION Amortization 30 Years Number of Units 18 Loan Term 10 Years Number of Buildings 4 Loan to Value 60% Number of Stories 1st Street: 3 / 2nd Street: 2 Debt Coverage Ratio 1.2 Year Built/Renovated 1936 / ongoing Rentable Square Feet 13374 Lot Size .63 Acre Parking (18) assigned (6) unassigned UTILITIES Water Owner pays Electric Tenant pays Gas Tenant pays CONSTRUCTION Foundation Crawl Framing Woof Frame Exterior Stucco Roof TPO Roofing 7 The Maxwell offers the best of both worlds. All the conveniences of living downtown and the peaceful tranquility found in the art-deco architecture, thoughtful design, lush landscape and tree-lined streets.