OFFERING MEMORANDUM
1643- 1 6 5 9 B STREET, HAYWARD
EXCLUSIVELY LISTED BY: JON HOLMQUIST DIRECT CELL#: 415 - 596- 3691
A 1 0 - UNIT APARTMENT COMMUNITY SITUATED NEAR DOWNTOWN HAYWARD & CASTRO VALLEY NON- ENDORSEMENT & DISCLAIMER NOTICE
CONFIDENTIALITY & 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 prepare 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.
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. Activity ID: ZAA0020299
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT LISTING AGENT: JON HOLMQUIST / 415 - 596- 3691 TO SET UP A TOUR AND SHOWING
OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com 1643- 1 6 5 9 B S T R E E T APARTMENTS
PRESENTED BY
JON HOLMQUIST Senior Managing Director San Francisco Office Direct: (415) 625-2117 // Fax: (415) 963-3010 [email protected] License: CA 01257479 1643- 1659 VINEYARDB S t r e e t TOWNHOMES APARTMENTS
TABLE OF CONTENTS 02 01 FINANCIALS 03 INVESTMENT OVERVIEW SALE COMPARABLES
04 05 RENT COMPARABLES DEMOGRAPHICS T R I N I T Y 1643WAY- 1 6 5 9 APARTMENTSB S t r e e t APARTMENTS
Section 1 Investment Overview 1643-1659 B STREET
PROPERTY OVERVIEW PROPERTY OVERVIEW This offering at 1643-1659 B Street, Hayward, CA is a ten-unit apartment complex consisting of two separate buildings. The property is in fantastic condition and has been meticulously maintained by the owner who self-manages the asset. The complex presents great curb appeal, with frontage on high traffic B Street which allows easy rental of units upon turnover via. signage. The large front triplex building is perfect for an owner user, with the bottom level having a spacious three-bedroom one-bath floor plan.
The property is comprised of two primary structures. The first building to the side and rear of the lot, is a single level seven-unit structure constructed circa 1961 of wood frame with stucco siding, with a pitched composite roof, and private patios for each unit. The second building is a three-story triplex constructed circa 1930 of wood frame, with wood siding, and pitched composite roof. The owner has completed many improvements including recently replacing the roofs in 2016, installing double paned windows on the 7-unit building in 2015, and repaving of the parking area two years ago.
The complex unit interiors consist of seven spacious two-bedroom one-bath apartments, of an estimated 850 square feet, two one-bedroom one-bath apartments, and a large three-bedroom one bath unit. Tenants benefit from ample parking with a large 0.46-acre lot, separate PG&E meters, and individual walk-up entrances.
The subject property sits in a perfect location mid-point between the two vibrant downtown centers of Castro Valley (including the new Castro Valley Market place which opened fall of 2020) and downtown Hayward. Both Hayward and Castro Valley BART offer a convenient alternative to car commuting for tenants, allowing for hassle free transport to nearby job centers.
PROPERTY OVERVIEW
▪ Many long-term tenants with rents 19.1% below market levels. Rents not increased since July 2019. ▪ New roof, double-paned windows, new pavement, and recent exterior paint. ▪ Great unit mix with two one-bed/one-bath, seven two-bed/one-bath, and one-three-bed/one-bath floor plan. ▪ Large 0.46 Acre Lot with attractive curb appeal and landscaping. ▪ Private rear patios for all seven two-bedroom/one bath single story units. ▪ Consistent low expenses with units separately metered/billed for PG&E and Garbage. Front triplex has three separate water meters with water paid by tenants. Seven-unit building owner pays water and common area PG&E.
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1643 B S1.6 MILES TO DOWNTOWN CASTRO VALLEY
SUBJECT PROPERTY, 1643 B STREET IS LOCATED JUST 1.6 MILES SOUTH OF DOWNTOWN CASTRO VALLEY. NEARBY RETAILERS, BANKS, AND GROCERY STORES ARE IN ABUNDANCE.
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LOCATION OVERVIEW
NEW CASTRO VALLEY MARKETPLACE DEVELOPMENT 1.6 MILES FROM 1643 B STREET
Completed in 2020, the Castro Valley Marketplace is an artisanal food hall and community gathering space along Interstate 580 between Interstates 680 and 880. The property will be anchored by the Castro Valley Natural Grocery and will include a bread bakery, butchery, sidewalk cafe, craft cocktails, wine shop, a commercial kitchen and cooking school, and event and collaboration space.
812 16431643--16591659 B B STREETSTREET
CASTROCASTRO VALLEYVALLEY MARKETMARKET PLACEPLACE NEARBY ARTEISAN CASTRO VALLEYNext doorMARKET to Campo PLACE Retail 1.6 MILES FROM SUBJECT PROPERTY
3295 CASTRO VALLEY BLVD, DOWNTOWN CASTRO VALLEY
Perspective of the market as you walk in from Castro Valley Boulevard and discover the artisans within – As you enter, you first encounter the bread bakery and pristine butcher shop, the specialty food purveyors tempt with savory and sweet offerings. A florist displays unusual flowers and succulents as you make your way to the natural grocery occupying much of the street level. Look up, the mezzanine buzzes with the activity of the cooking school, commercial kitchen and collaboration space.
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PROPERTY PHOTO
Jon Holmquist / Marcus & Millichap close more transactions than any other agent at any other brokerage firm.
1012 1643-1659 B STREET CLOSE UP BOUNDARY MAP
11 1643-1659 B STREET PROPERTY BOUNDARY MAP
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AERIAL PHOTO
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NEAR TO MAJOR NEW DEVELOPMENT
LOCATED 1.3 MILES TO HUGE NEW LINCOLN LANDING DEVELOPMENT
• Subject property at 1643 B Street is located 1.3 miles to largest new development in the City of Hayward in over 20 years with expectation to significantly enhance and revitalize the area.
• Projected budget of over $250 million with 80,500 square feet of commercial space, on 11.5 acres.
• Significant landscaping enhancements including a 7,000-square-foot public park on Hazel next to San Lorenzo Creek, new walking trail, and open public space.
• 20,000 square feet of ground floor retail with 579 space parking garage, and possible Whole Foods as anchor grocery store.
• See more at: https://www.facebook.com/watch/?v=475295266735563 14 1643-1659 B STREET
LOCATION LOCALHIGHLIGHTS MAP
EASY ACCESS TO BOTH DOWNTOWN HAYWARD AND DOWNTOWN CASTRO VALLEY
• 1.3 Miles to Lincoln Landing retail, park, and commercial office. • Easy access via. public transport, Hwy 580, & 880 to major employment centers. • 1.1 Miles to Hayward BART1.5 Miles to Castro Valley BART • Minutest to extensive shopping. restaurants, breweries, banking, theater, and entertainment. • 0.7 miles / 14-minute walk to Downtown Hayward • 1.6 Miles to Downtown Castro Valley • Within a 20-minute drive to Oakland International Airport .
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LOCAL MAP
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REGIONAL MAP
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SUBJECT PROPERTY PARKING
18 T R I N I T Y 1643WAY- 1 6 5 9 APARTMENTSB S t r e e t APARTMENTS
Section 2 Financial Analysis 1643-1659 B STREET
FINANCIAL ANALYSIS RENT ROLL SUMMARY
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FINANCIAL ANALYSIS RENT ROLL SUMMARY
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FINANCIAL ANALYSIS RENT ROLL DETAIL
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FINANCIAL ANALYSIS OPERATING STATEMENT
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FINANCIAL ANALYSIS NOTES
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FINANCIAL ANALYSIS PRICING DETAIL
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MARCUS & MILLICHAP ADVANTAGE
MARCUS & MILLICHAP CAPITAL WHY MMCC? CORPORATION CAPABILITIES Optimum financing solutions to enhance value MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms. Enhanced control through investor qualification support We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of Enhanced control through financing options. MMCC’s ability to qualify investor finance contingencies Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues for the benefit of our clients. Enhanced control through quickly identifying potential debt/equity sources, processing, and closing buyer’s finance alternatives
Enhanced control through Closed 1,943 National platform $ 7.7 billion Access to MMCC’s ability to monitor debt and equity operating total national more capital investor/due diligence and financings within the firm’s volume in 2020 sources than underwriting to ensure timely, in 2020 brokerage offices any other firm predictable closings in the industry
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FINANCIAL ANALYSIS GROWTH RATE PROJECTIONS
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FINANCIAL ANALYSIS CASH FLOW
28 T R I N I T Y 1643WAY- 1 6 5 9 APARTMENTSB S t r e e t APARTMENTS
Section 3 Market Comparables Recent Sales PROPERTY1643-1659 BNAME STREET
SALES COMPARABLES SALES COMPARABLES SALES COMPS AVG
Average Cap Rate
6.0
5.4 Avg. 5.09%
4.8
4.2
3.6
3.0
2.4
1.8
1.2
0.6
0.0 1643-1659 152 Laurel Dutton 335-337 1483 Casa de Sol Palm Grove 19865 Multi-Property 20824-20846 27069 B Street Ave Apartment SCHAFER 150th Ave Meekland Sale Chester St Belvedere Homes ROAD Ave Ct
30 PROPERTY1643-1659 BNAME STREET
SALES COMPARABLES SALES COMPARABLES SALES COMPS AVG
Average Price Per Square Foot
$600.00
$540.00
$480.00
$420.00 Avg. $351.66 $360.00
$300.00
$240.00
$180.00
$120.00
$60.00
$0.00 1643-1659 152 Laurel Dutton 335-337 1483 Casa de Sol Palm Grove 19865 Multi-Property 20824-20846 27069 B Street Ave Apartment SCHAFER 150th Ave Meekland Sale Chester St Belvedere Homes ROAD Ave Ct
31 PROPERTY1643-1659 BNAME STREET
SALES COMPARABLES SALES COMPARABLES SALES COMPS AVG
Average Price Per Unit
$400,000
$360,000
$320,000 Avg. $298,573
$280,000
$240,000
$200,000
$160,000
$120,000
$80,000
$40,000
$0 1643-1659 152 Laurel Dutton 335-337 1483 Casa de Sol Palm Grove 19865 Multi-Property 20824-20846 27069 B Street Ave Apartment SCHAFER 150th Ave Meekland Sale Chester St Belvedere Homes ROAD Ave Ct
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SALESMARKETING COMPARABLES TEAM
SALES COMPARABLES
152 LAUREL AVE DUTTON APARTMENT HOMES 1643-1659 B STREET 152 Laurel Ave, Hayward, CA, 94541 98 Dutton Ave, San Leandro, CA, 94577 1647 B St, Hayward, CA, 94541 1 2
rentpropertyname1 rentpropertyname1 rentpropertyname1
Units Unit Type Units Unit Type Offering Price: $2,720,000 2 1 Bdr 1 Bath Close Of Escrow: 12/7/2020 5 2 Bdr 1.5 Bath Close Of Escrow: 5/5/2021 Price/Unit: $272,000 7 2 Bdr 1 Bath Sales Price: $1,482,500 Sales Price: $3,150,000 Price/SF: $310.86 1 3 Bdr 1 Bath Price/Unit: $296,500 Price/Unit: $315,000 CAP Rate: 4.61% Price/SF: $318.95 Price/SF: $500.95 GRM: 14.21 CAP Rate: 5.90% CAP Rate: 4.50% Total No. of Units: 10 Total No. of Units: 5 Total No. of Units: 10 Year Built: 1930 Year Built: 1978 Year Built: 1962
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 Underwriting Criteria Income $185,670 Expenses $60,369 NOI $125,300 Vacancy ($5,742)
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SALESMARKETING COMPARABLES TEAM
SALES COMPARABLES
335-337 SCHAFER ROAD 1483 150TH AVE CASA DE SOL 335-337 Schafer Rd, Hayward, CA, 94544 1483 150th Ave, San Leandro, CA, 94578 22307 S Garden Ave, Hayward, CA, 94541
3 4 5
rentpropertyname1 rentpropertyname1 rentpropertyname1
Close Of Escrow: 5/15/2020 Close Of Escrow: 2/25/2021 Close Of Escrow: 3/31/2021 Sales Price: $4,365,000 Sales Price: $3,200,000 Sales Price: $2,290,000 Price/Unit: $242,500 Price/Unit: $213,333 Price/Unit: $286,250 Price/SF: $391.13 Price/SF: $327.33 Price/SF: $416.36 CAP Rate: 5.35% CAP Rate: 4.91% CAP Rate: 6.00% Total No. of Units: 18 Total No. of Units: 15 Total No. of Units: 8 Year Built: 1964 Year Built: 1962 Year Built: 1938
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1
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SALESMARKETING COMPARABLES TEAM
SALES COMPARABLES
PALM GROVE 19865 MEEKLAND AVE MULTI-PROPERTY SALE 2531 Grove Way, Hayward, CA, 94546 19865 Meekland Ave, Hayward, CA, 94541 425 Ranker Pl (Part of Multi-Property Sale), Hayward, CA, 94544 6 7 8
rentpropertyname1 rentpropertyname1 rentpropertyname1
Units Unit Type Close Of Escrow: 6/15/2020 Close Of Escrow: 9/24/2020 Close Of Escrow: 4/13/2021 2 1 Bdr 1 Bath Sales Price: $3,929,000 Sales Price: $2,400,000 Sales Price: $1,710,630 8 2 Bdr 1.5 Bath Price/Unit: $392,900 Price/Unit: $400,000 Price/Unit: $171,063 Price/SF: $419.76 Price/SF: $342.86 Price/SF: $213.91 CAP Rate: 5.71% CAP Rate: 4.00% CAP Rate: 4.30% Total No. of Units: 10 Total No. of Units: 6 GRM: 12.20 Year Built: 1963 Year Built: 1973 Total No. of Units: 10 Year Built: 1967
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1
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SALESMARKETING COMPARABLES TEAM
SALES COMPARABLES
20824-20846 CHESTER ST 27069 BELVEDERE CT 20824-20846 Chester St, Castro Valley, CA, 94546 27069 Belvedere Ct, Hayward, CA, 94544
9 10
rentpropertyname1 rentpropertyname1 rentpropertyname1
Close Of Escrow: 2/4/2021 Close Of Escrow: 3/29/2021 Sales Price: $4,050,000 Sales Price: $1,800,000 Price/Unit: $368,182 Price/Unit: $300,000 Price/SF: $231.56 Price/SF: $353.77 CAP Rate: 5.38% CAP Rate: 4.81% Total No. of Units: 11 Total No. of Units: 6 Year Built: 1980 Year Built: 1963
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1
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Section 4 Market Comparables Rental Rates 1643PROPERTY-1659 B NAMESTREET
RENT COMPARABLES AVERAGE RENT - MULTIFAMILY
2 Bedroom
$4,000 Subject Property Surrounding Hayward Average - Bedroom Rent of $2,723 $3,600 Average 2- Bedroom
$3,200 Rent of $1,627
$2,800
$2,400
$2,000
$1,600
$1,200
$800
$400
$0 1643-1659 B Street, Hayward, 22032 Mosaic Town & Sofi Creekwood Magnolia Cadence CA Arbor Ave Apartments Country Apartments Grove Apartments Condominiums
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RENTMARKETING COMPARABLES TEAM
SUBJECT PROPERTY: 22032 ARBOR AVE MOSAIC APARTMENTS 1643-1659 B STREET 22032 Arbor Ave, Hayward, CA, 94541 19972 Stanton Ave, Castro Valley, CA, 94546 rentpropertyname1 1647 B St, Hayward, CA, 94541 1 2 rentpropertyaddress1
rentpropertyname1 rentpropertyname1 rentpropertyname1
Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF 2 Bdr 1.5 Bath 6 850 $2,465 $2.90 2 Bdr 34 797 $2,500 $3.14 1 Bdr 1 Bath 2 600 $1,307 $2.18 Total/Avg. 6 850 $2,465 $2.90 3 Bdr 6 1,215 $3,700 $3.05 2 Bdr 1 Bath 7 850 $1,627 $1.91 Total/Avg. 40 860 $2,680 $3.12 3 Bdr 1 Bath 1 1,100 $1,400 $1.27 Total/Avg. 10 825 $1,540 $1.87
Square footage estimated and to be verified by buyers.
OCCUPANCY: 99% | YEAR BUILT: 1965 YEAR BUILT: 1961 NOTES NOTES NOTES Ideal location mid-point between Hayward and Castro Valley BART. Property consists of 18 total units and was built in 1965. Amenities Amenities include balcony, ceiling fans, heating, patio, laundry facilities, Convenient to restaurants, shopping, and entertainment of both include: heating, ceiling fans, dishwasher, stainless steel appliances, laundry service, and playground. Downtown Hayward, and Downtown Castro Valley. granite counter tops, vinyl flooring, balcony, patio and washer/dryer hookups.
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RENTMARKETING COMPARABLES TEAM
CADENCE TOWN & COUNTRY APARTMENTS CREEKWOOD 28850 Dixon St, Hayward, CA, 94544 27808 Manon Ave, Hayward, CA, 94544 22294 City Center Drive, Hayward, CA, 94541
3 4 5
rentpropertyname1
Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF 2 Bdr 141 1,125 $3,140 $2.79 2 Bdr 46 850 $2,495 $2.94 2 Bdr 103 983 $2,904 $2.95 Total/Avg. 141 1,125 $3,140 $2.79 3 Bdr 16 1,450 $3,195 $2.20 Total/Avg. 103 983 $2,904 $2.95 Total/Avg. 62 1,005 $2,676 $2.66
YEAR BUILT: 2017 YEAR BUILT: 1980 YEAR BUILT: 1975 NOTES NOTES NOTES Unit amenities include AC, balcony, cable ready, dishwasher, hardwood Amenities include balcony, heating, courtyard, fitness center, and picnic Amenities include balcony, ceiling fans, dishwasher, disposal, fireplace, floors, heating, stainless steel appliances, walk-in closet, and area. walk-in closets, clubhouse, controlled access, fitness center, sauna, spa, washer/dryer. Site includes controlled access, elevator, fitness center, and tennis court. laundry facilities, pet washing station, picnic area, and WiFi.
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Section 5 Market Overview & Demographics within 1, 3, and 5-mile radius from 1643-1659 B Street 1643-1659 B STREET
•PROJECTED EAST BAY MEDIAN HOME PRICES
YEAR (* PROJECTED) HOME SALES MEDIAN HOME PRICE $
2010 29,738 367,370
2011 32,122 343,801
2012 33,002 420,385
2013 28,765 546,139
2014 27,528 595,895
2015 27,135 646,968
2016 27,482 692,900
2017 26,970 767,455
2018 22,706 786,645
2019* 24,261 826,470
2020* 24,875 873,803
2021* 25,156 930,481
2022* 24,635 987,488
2023* 25,730 1,050,981
42 1643-1659 B STREET HOUSING SHORTAGE DRIVING RENTS UP
On a Nationwide scale, increasing constructions costs, more burdensome building regulations, and increasing City and State development Fees, has led to a lack of housing. In 2021 and 2022 there will be 498,000 more households created, than new homes and apartments built. This is resulting in a rapid escalation of rents, and strong rental demand as there are now more households, than there are dwellings in which to reside.
43 1643-1659 B STREET HOUSING SHORTAGE DRIVING RENTS UP
U.S. HOUSEHOLD FORMATION VS. HOUSING COMPLETIONS
Single-Family Completions Multifamily Completions Household Growth 2021-2022 2003-2006 Undersupply: 498K 2.0 1995-1998 Oversupply: 2.1M Undersupply: 1.0M
2011-2016 1.5 Undersupply: 2.3M 2017-2020 Oversupply: 1.7M
1.0
0.5
0.0 Completions/Household Growth (Mil.) Growth Completions/Household 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21* 22* 23* * Forecast Sources: Marcus & Millichap Research Services, U.S. Census Bureau, RealPage, Inc., Moody’s Analytics
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HAYWARD DEMOGRAPHICS AND DRIVERS OF RENT GROWTH
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ECONOMY ▪ Major employers come from a wide array of industries: education, healthcare, financial services, telecommunications, retail, technology, manufacturing, biotech and transportation. ▪ The metro is a transportation hub of the Bay Area, and Oakland International Airport, BART, two major rail lines and the Port of Oakland all play important roles. ▪ Oakland is an expanding tech employment market as lower costs than in San Francisco lure firms to open additional operations across the Bay. High-tech businesses currently employ tens of thousands of workers. The metro boasts an extensive underground fiber- optic cable network and is a regional telecommunications hub. MAJOR AREA EMPLOYERS
Kaiser Permanente UCSF Children's Hospital Oakland Sutter Health BART Lawrence Livermore National Laboratory Tesla, Inc. East Bay Mud Grifols Diagnostic Solutions Alameda Health Systems Chevron Corp. * Estimate, ** Forecast
SHARE OF 2020 TOTAL EMPLOYMENT
8% 17% 15% 8% 5% MANUFACTURING PROFESSIONAL AND GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES BUSINESS SERVICES
18% 7% + 17% 2% 3% TRADE, TRANSPORTATION CONSTRUCTION EDUCATION AND INFORMATION OTHER SERVICES AND UTILITIES HEALTH SERVICES
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DEMOGRAPHICS
▪ The population will expand by almost 103,100 residents during the next five years, resulting in the formation of nearly 41,200 households. SPORTS ▪ Due in part to high home prices, the homeownership rate of 58 percent provides for a large renter pool. ▪ Roughly 44 percent of the population age 25 and older have attained a bachelor’s degree, with 17 percent also holding a graduate or professional degree.
2020 Population by Age
6% 18% 6% 30% 26% 15% 0-4 YEARS 5-19 YEARS 20-24 YEARS 25-44 YEARS 45-64 YEARS 65+ YEARS EDUCATION
2020 2020 2020 2020 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 2.8M 1M 38.5 $101,600 Growth Growth U.S. Median: U.S. Median: 2020-2025*: 2020-2025*: 3.7% 4.0% 38.2 $63,000
QUALITY OF LIFE The past decade’s downtown redevelopment initiatives have resulted in housing, office and retail construction, greatly improving the quality of life for urban dwellers. In the East Bay, people enjoy cultural and recreational activities, including the symphony, an award- ARTS & ENTERTAINMENT winning zoo, the Paramount Theater, the Oakland Museum of California and numerous parks. The remaining major league sports team in the metro is the Oakland Athletics (MLB), who play at the Oakland-Alameda County Coliseum, while the Oakland Arena is now used for concerts and events after the Golden State Warriors’ (NBA) departure to San Francisco. There are 15 colleges and universities in the area, including the University of California-Berkeley and California State University, East Bay.
* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
473 ALAMEDA COUNTY METRO AREA
Apartments in the East Bay Outperform Nearby Counterparts, Creating Shorter Climb to Recovery Multifamily 2021 Outlook
East Bay gains footing with reopening. The Bay Area was one of the first areas in the country to shut down during the initial stages of the health crisis and reinvigorating the local economy 33,700 Employment: has proved challenging. The policies that kept some of the tightest restrictions on businesses Reopening should return many hospitality JOBS in the nation strained the local employment market. As cases fall, less-aggressive mitigation jobs to the market, boosting overall will be created strategies are being implemented and should reignite job growth, supporting local employment 3.1 percent this year. businesses. Nonetheless, more than 100,000 jobs remain to be recaptured. Approximately Completely replacing the jobs lost to the 60,000 new positions would pull down the unemployment rate to 5 percent, a level recession could take more than two years. considered healthy. About half of those spots could be gained in the leisure and hospitality sector relatively quickly when occupancy restrictions are completely removed. Apartment operations more stable than rest of Bay Area. A higher percentage of blue-collar 7,300 Construction: workers helped maintain fundamentals relative to the major nearby cities. Whereas office UNITS Development will increase to the highest rate workers elsewhere could surrender their small apartment units to seek more expansive living will be completed in the current cycle this year as inventory is accommodations in other markets, residents in the East Bay are more tied to local jobs, expanded by 3.4 percent. In 2020, builders leaving vacancy 160 basis points below the rate in San Jose and less than half the level in added nearly 4,300 apartments to the East San Francisco. Statewide rent control could encourage operators in those areas to keep units Bay. off the market until rents post a stronger recovery and avoid a multiyear climb back to pre- pandemic levels. Rents in the East Bay have been more resilient and leasing vacant units immediately is unlikely to have any long-term consequences. 40 Vacancy: BASIS POINT Although demand is returning slowly to the increase in vacancy East Bay, new construction will outpace absorption, lifting vacancy to 4.9 percent. The rate returns to a level last recorded during the global financial crisis.
0.8% Rents: INCREASE Following a 4.8 percent decline last year, in effective rent effective rent will stabilize in 2021, ticking up to $2,265 per month. The rise will largely be attributed to an increase in available Class A units in the market.
* Forecast Sources: BLS; RealPage, Inc.; CoStar Group, Inc.
48 48 1643-1659 B STREET
ALAMEDA COUNTY METRO AREA
Investment Highlights
• Transaction volume declined 43 percent in 2020 relative to the prior year as the health crisis generated uncertainty regarding the overall health of the Bay Area economy. The decrease in the pace of deals was greatest at higher property classes as investors were more willing to purchase Class C properties due to strong * Forecast fundamentals. Sources: RealPage, Inc.; CoStar Group, Inc.; Real Capital Analytics • A combination of fewer high-end properties trading and repricing due to weaker property performance pulled down the 2020 average price 6 percent to $289,400 per unit last year. The average cap rate inched Construction Vacancy Rents up 10 basis points to 5.1 percent. • Last year, investors retrenched into core basis point increase in decrease in the average locations to a greater extent in a flight to units completed 4,262 60 vacancy Y-O-Y 4.8% effective rent Y-O-Y safety. More clarity on evictions and local tech companies’ ultimate office models • Following a slowdown in deliveries • Although positive, softer demand • Due to a 8.5 percent decline in the may be necessary before a substantial shift during the first half of last year, was eclipsed by new average Class A rent to $2,743 per in buyers broaden target locations. The developers accelerated the pace construction, pushing vacancy month, the overall mean slipped to failure of Proposition 21 on the November and completed nearly 4,300 units up to 4.5 percent, the highest $2,247 per month in 2020. ballot, meanwhile, could increase activity in in 2020, raising inventory 1.9 rate since the first quarter of • Class C effective rent ticked up 0.1 Oakland as future rents are more percent. 2017. percent to $1,869 per month last predictable and the number of properties • Approximately 10,600 units were • Weakness was largely year as vacancy held firm at 3.4 that fall under rent control does not underway at the beginning of the concentrated in the Class A percent. For Class B units, effective increase. year with delivery dates extending sector, where vacancy climbed rents moved 4.8 percent lower. into 2022. 170 basis points to 6.0 percent.
49 Hayward CALIFORNIA
POPULATION 1 4 9 , 3 9 2
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CITY OF HAYWARD OVERVIEW LOCATION OVERVIEW City of Hayward With 150,000 residents, today the City of Hayward is the sixth-largest city in the Bay Area and a thriving regional center of commerce, manufacturing activity and trade. Hayward is known as the “Heart of the Bay,” because of its central and convenient location in Alameda County just 25 miles southeast of San Francisco, 14 miles south of Oakland, 26 miles north of San Jose and 10 miles west of the valley communities surrounding Pleasanton. The City continues to plan for the future, maintaining a balance between the needs of our diverse residents and a growing business community. The City works hard to balance the needs of our growing population with the preservation of recreation, and open space concurrently with an aggressive economic development strategy. As a result of its central location, employers are realizing that Hayward offers an attractive alternative to the more expensive surrounding cities, and thus Hayward has experienced significant rent and population growth from the “spillover effect” from Oakland, San Francisco, the Peninsula, and Silicon Valley. Hayward Schools The city is also home to two colleges, including California State East Bay (15,855 students) and Chabot College (13,142 students). Other nearby colleges include Stanford University, University of California Berkeley, College of Alameda, College of San Mateo, Laney College, Northwestern Polytechnic University, Berkeley City College, and Ohlone College Laney College.
Hayward Attractions Parks and Recreation In addition to employment and jobs that are moving into the area, Hayward offers an ideal climate with parks and recreational facilities that serve the community. Hayward residents enjoy a surplus of local recreation options with over 3,000 acres of open space and parks, 20 miles of hiking and walking trails, 1,800 acres of regional shoreline, three golf courses and, California’s first Japanese Garden. Nestled in the Hayward hills, the 4,800-acre Dry Creek Pioneer Regional Parks offer hiking trails and beautiful vistas of the bay. The Hayward Regional Shoreline is an 1,811-acre wetlands destination that is great for birding and viewing a variety of wildlife species. A perfect day in Hayward takes you from the hills to the shoreline with innumerable delights in between:
Start your day with a ridgeline hike at sunrise with 360-degree views of the entire Bay Area. Challenge yourself at one of three quality golf courses showcasing the region’s unique topography. Enjoy an early dinner at one of the United States’ first brewpubs, and then walk a few steps for a different kind of Zen meditation in California’s oldest Japanese garden. Wend your way back through a historic downtown with buildings that trace their roots back to the 1860s, then spend the twilight strolling along the pristine shoreline, surrounded by native wildlife as the sun dips below the San Francisco skyline on the horizon.
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CITY OF HAYWARD OVERVIEW LOCATION OVERVIEW
Downtown Hayward Growth In recent years, the city’s downtown area has and continues to undergo an incredible revitalization creating a pedestrian-friendly town center with a mix of retail shops, office and restaurants. Hayward’s pedestrian-friendly downtown area, features a variety of attractions for residents, including retail, theaters, restaurants, coffee shops and one of the oldest brewpubs in the country. Cinema Place, with 12,000 square feet of retail including the Century Theaters, is on the eastern side of the downtown district.
Hayward Employment Hayward has capitalized on its central location to become one of the most desirable business locations for companies in advanced industries. According to a recent article by TechCrunch in the past three years, Hayward-based companies have raised more than $490 million in venture funding. That’s more than Portland, Oregon (population 640,000) and more than triple San Antonio, Texas (population 1.5 million). Hayward boasts more than 1,000 advanced industry companies with approximately 400 biotech, biomed and life sciences businesses. A major portion of Hayward’s venture funding has gone to biotechnology companies, like Arcus Biosciences, a developer of cancer therapies that has raised over $226 million in funding, and MicuRx, which develops antibodies to treat drug-resistant infections. Hayward is also making inroads as an energy startup hub
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CITY OF HAYWARD OVERVIEW EXCELLENT PROXIMITY TO TOP EMPLOYERS NEAR TO GREAT EDUCATION, NEW DEVELOPMENT ▪ Excellent proximity to top employers: ACTIVITY, AND COMMERCE ▪ County of Alameda, Hayward, 4,670 Employees* ▪ California State University, East Bay, Hayward, 2,200 Employees ▪ Near well-regarded colleges such as UC Berkeley, California ▪ Kaiser Permanente Medical Center, San Leandro, 1,200 Employees State East Bay, Chabot College, St. Mary’s College of ▪ Hayward Unified School District, Hayward, 2,400 Employees* California, University of San Francisco, Diablo Valley ▪ Eden Medical Center, Castro Valley, 870 Employees College, and Berkeley City College. ▪ International Paper Company, San Leandro, 2,000 Employees ▪ Recently approved projects including Lincoln Landing, ▪ Clorox, Oakland, 775 Employees Maple & Main, Green Shutter Hotel, and The MLC Holdings ▪ Internal Revenue Service, Oakland, 2,500 Employees Development are part of the ongoing revitalization that will ▪ University of California, Berkeley, 6,650 Employees* bring tens of thousands of square feet of commercial space, ▪ San Mateo Medical Center, San Mateo, 1,200 Employees housing, hotel, and more employment opportunities. ▪ Franklin Templeton Investments, San Mateo, 1,100 Employees ▪ An abundance of nearby retail options with the bay Fair ▪ Axygen Scientific (Corning), Union City, 1,200 Employees Center featuring over 60 retailers and restaurants, anchored ▪ Washington Hospital, Fremont, 1,600 Employees by Macy’s Kohl’s, and Target; Southland Mall in Southwest ▪ Oracle, Pleasanton, 2,800 Employees* Hayward with over 120 Retailers and Restaurants, anchored by Macy’s and Kohl’s. *Total number of employees at multiple metro locations
BART STATION LOCATED 1.5 MILES FROM SUBJECT PROPERTY
Fremont 14 Minutes West Dublin/Pleasanton 21 Minutes Oakland (City Center) 22 Minutes San Francisco (Embarcadero) 32 Minutes Downtown Berkeley 33 Minutes Walnut Creek 45 Minutes
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MARKETINGDEMOGRAPHICS TEAM Created on May 2021
POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles ▪ 2025 Projection ▪ 2020 Estimate Total Population 27,398 212,364 359,291 $200,000 or More 10.22% 11.22% 10.85% ▪ 2020 Estimate $150,000 - $199,000 9.22% 10.65% 10.83% Total Population 26,328 204,177 346,135 $100,000 - $149,000 20.39% 21.06% 22.00% ▪ 2010 Census $75,000 - $99,999 12.79% 12.89% 13.35% Total Population 23,767 186,029 317,605 $50,000 - $74,999 16.33% 15.99% 15.66% ▪ 2000 Census $35,000 - $49,999 10.62% 9.67% 9.50% Total Population 25,048 181,277 307,710 $25,000 - $34,999 6.36% 5.73% 5.81% ▪ Daytime Population $15,000 - $24,999 5.67% 6.00% 5.89% 2020 Estimate 20,705 148,271 280,960 Under $15,000 8.39% 6.77% 6.11% HOUSEHOLDS 1 Miles 3 Miles 5 Miles Average Household Income $114,556 $117,774 $117,547 ▪ 2025 Projection Median Household Income $79,642 $85,819 $87,839 Total Households 11,348 73,196 122,794 Per Capita Income $47,713 $40,908 $40,399 ▪ 2020 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 10,875 70,292 118,179 ▪ Population By Age Average (Mean) Household Size 2.37 2.85 2.88 2020 Estimate Total Population 26,328 204,177 346,135 ▪ 2010 Census Under 20 21.79% 24.83% 24.00% Total Households 9,582 62,761 106,189 20 to 34 Years 23.76% 23.48% 22.68% ▪ 2000 Census 35 to 39 Years 7.93% 7.84% 7.56% Total Households 9,979 62,851 106,342 40 to 49 Years 13.01% 13.32% 13.24% Growth 2015-2020 4.35% 4.13% 3.91% 50 to 64 Years 19.37% 18.12% 18.82% HOUSING UNITS 1 Miles 3 Miles 5 Miles Age 65+ 14.16% 12.40% 13.71% ▪ Occupied Units Median Age 37.69 36.02 37.13 2025 Projection 11,348 73,196 122,794 ▪ Population 25+ by Education Level 2020 Estimate 11,208 71,031 119,210 2020 Estimate Population Age 25+ 19,232 141,627 243,499 Owner Occupied 4,497 35,369 65,953 Elementary (0-8) 3.89% 6.38% 6.07% Renter Occupied 6,378 34,923 52,226 Some High School (9-11) 5.93% 8.11% 8.21% Vacant 333 740 1,031 High School Graduate (12) 25.62% 26.05% 26.46% ▪ Persons In Units Some College (13-15) 22.59% 21.27% 21.04% 2020 Estimate Total Occupied Units 10,875 70,292 118,179 Associate Degree Only 7.14% 6.99% 7.01% 1 Person Units 35.14% 25.03% 24.47% Bachelors Degree Only 21.73% 19.70% 20.30% 2 Person Units 29.43% 27.35% 27.13% Graduate Degree 10.91% 8.84% 8.22% 3 Person Units 15.58% 16.82% 16.90% ▪ Population by Gender 4 Person Units 10.68% 14.75% 14.86% 2020 Estimate Total Population 26,328 204,177 346,135 5 Person Units 5.02% 8.27% 8.49% Male Population 48.33% 49.65% 49.34% 6+ Person Units 4.15% 7.79% 8.15% Female Population 51.67% 50.35% 50.66%
Source: © 2020 Experian
54 1643-1659 B STREET •DEMOGRAPHICS WITHIN 3 MILES
•212,364 •G E N D E R
•POPULATION •49.65% 50.35%
•$ •$117,774 •$498,112
•AVERAGE HOUSEHOLD •MEDIAN INCOME HOUSING VALUE
•73,196 •TOTAL HOUSEHOLDS
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MARKETINGDEMOGRAPHICS TEAM
Population Race and Ethnicity In 2020, the population in your selected geography is 26,328. The The current year racial makeup of your selected area is as follows: population has changed by 5.11% since 2000. It is estimated that the 45.80% White, 14.50% Black, 1.59% Native American and 15.97% population in your area will be 27,398.00 five years from now, which Asian/Pacific Islander. Compare these to US averages which are: represents a change of 4.06% from the current year. The current 69.84% White, 12.88% Black, 0.20% Native American and 5.75% population is 48.33% male and 51.67% female. The median age of Asian/Pacific Islander. People of Hispanic origin are counted the population in your area is 37.69, compare this to the US average independently of race. which is 38.21. The population density in your area is 8,372.59 people per square mile. People of Hispanic origin make up 28.92% of the current year population in your selected area. Compare this to the US average of 18.38%.
Households Housing There are currently 10,875 households in your selected geography. The median housing value in your area was $498,112 in 2020, The number of households has changed by 8.98% since 2000. It is compare this to the US average of $221,068. In 2000, there were estimated that the number of households in your area will be 11,348 4,296 owner occupied housing units in your area and there were five years from now, which represents a change of 4.35% from the 5,683 renter occupied housing units in your area. The median rent at current year. The average household size in your area is 2.37 persons. the time was $878.
Income Employment In 2020, the median household income for your selected geography is In 2020, there are 6,869 employees in your selected area, this is also $79,642, compare this to the US average which is currently $62,990. known as the daytime population. The 2000 Census revealed that The median household income for your area has changed by 62.20% 63.43% of employees are employed in white-collar occupations in since 2000. It is estimated that the median household income in your this geography, and 35.87% are employed in blue-collar occupations. area will be $94,832 five years from now, which represents a change In 2020, unemployment in this area is 5.34%. In 2000, the average of 19.07% from the current year. time traveled to work was 38.00 minutes.
The current year per capita income in your area is $47,713, compare this to the US average, which is $34,935. The current year average household income in your area is $114,556, compare this to the US average which is $90,941.
Source: © 2020 Experian
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8 DEMOGRAPHICS
57 1643- 1659 B S T R E E T APARTMENTS
EXCLUSIVELY LISTED BY:
JON HOLMQUIST
Senior Managing Director San Francisco Office Direct: (415) 625-2117 // Fax: (415) 963-3010 [email protected] License: CA 01257479
FOR FURTHER DETAILS OR QUESTIONS ON THIS LISTING, TO SCHEDULE A SHOWING, OR TO DRAFT AN OFFER, CONTACT: LISTING AGENT JON HOLMQUIST / 415-596-3691 CELL / or EMAIL: [email protected].
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