2450 S B Street Stockton, Ca 7 Houses on One Parcel
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2450 S B STREET STOCKTON, CA 7 HOUSES ON ONE PARCEL 2450 S B STREET 7 HOUSES ON ONE PARCEL http://arausa.listinglab.com/2450SBSt CONFIDENTIALITY, TERMS, AND CONDITIONS: The information contained herein is strictly confidential, furnished solely for the purpose of considering the acquisition of the property described herein and is not to be used for any other purpose or made available to any other person without the expressed written consent of ARA Pacific. It has been obtained from the Seller and may include other sources believed to be reliable, but no representation is being made with regard to its accuracy or completeness. Prospective investors should undertake their own investigations and reach their own conclusions without reliance upon the material contained herein. Neither the Seller nor the Agent nor any of their respective officers, agents or principals has made or will make any representations or warranties, expressed or implied, as to the accuracy or completeness of the Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of the Offering Memorandum or its contents. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. The Seller and Agent expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until such offer for the Property is approved by the Seller, and any conditions to the Buyer’s obligations there under have been satisfied or waived. CONTACT INFORMATION MARC ANDENMATTEN I SACRAMENTO OFFICE ASSOCIATE 555 University Ave License CA: 01956176 Suite 215 [email protected] Sacramento, CA 95825 (415) 430-1033 SAN FRANCISCO OFFICE NATE OLESON I 655 Montgomery Street MANAGING DIRECTOR Suite 1705 License CA: 01467941 San Francisco, CA 94111 [email protected] (916) 599-6523 2 2450 S B STREET 7 HOUSES ON ONE PARCEL TABLE OF CONTENTS EXECUTIVE SUMMARY 5 The Offering 6 Investment Highlights 6 PROPERTY DETAILS 8 Property Information 9 & 10 RENTAL MARKET STUDY 11 Rent Comparables Study 12 Map of Comparables 13 FINANCIAL ANALYSIS 14 Rent Roll 15 Historical & Pro Forma Underwriting 16 REGIONAL OVERVIEW 17 Economy 20 Transportation 20 Entertainment and Recreation 22 CONTACT INFORMATION MARC ANDENMATTEN I SACRAMENTO OFFICE ASSOCIATE 555 University Ave License CA: 01956176 Suite 215 [email protected] Sacramento, CA 95825 (415) 430-1033 SAN FRANCISCO OFFICE NATE OLESON I 655 Montgomery Street MANAGING DIRECTOR Suite 1705 License CA: 01467941 San Francisco, CA 94111 [email protected] (916) 599-6523 3 2450 S B STREET 7 HOUSES ON ONE PARCEL Downtown Stockton Stockton Arena Rancho San Miguel Minimart All Good Diamond Pallets Inc Foods San Joaquin County Fairground E 8th Street Hamilton Van Buren Elementary Elementary S B Street B S 2450 S B STREET 11th Street St Linus Catholic Church Kennedy Community Center 4 2450 S B STREET 7 HOUSES ON ONE PARCEL Downtown Stockton EXECUTIVE Stockton SUMMARY Arena Rancho San Miguel Minimart All Good Diamond Pallets Inc Foods San Joaquin County Fairground E 8th Street Hamilton Van Buren Elementary Elementary S B Street B S 2450 S B STREET 11th Street St Linus Catholic Church Kennedy Community Center 5 2450 S B STREET 7 HOUSES ON ONE PARCEL THE OFFERING INVESTMENT HIGHLIGHTS • Asset Highlights - 2450 S B Street in Stockton, CA are seven houses located on one parcel. There ARA Newmark is pleased to provide are (4) 2x1s and (3) 3x1s. All the units feature washer and dryer hookups, individual water and the following Offering Memorandum electric meters. Approximately half of the units have been upgraded with tile flooring in the kitchen. pertaining to the exclusive marketing The current owner only pays for insurance, taxes and turnovers. Tenants are direct billed and sale of 2450 S B Street, seven houses for sewer and trash and they are also responsible for landscaping and appliances. There is located on one parcel in Stockton. potential to subdivide the homes as well. Offering Price • Location Highlights: • 1 block to Hamilton Elementary School and 2 blocks to Van Buren Elementary School Price: $675,000 • 1/2 mile to the Kennedy Community Center Price Per Unit: $96,429 • Less than a mile to the San Joaquin County Fairgrounds Cap (Current /Market): 7.0% / 7.8% GRM (Current / Market): 10.1 / 9.3 • Revitalized downtown core - Downtown Stockton has recently completed a major renovation and revitalization. New developments in the Downtown core along Stockton’s waterway include a new indoor sports & entertainment arena, a new baseball stadium as well as numerous new hotels, and Terms of Sale retail centers. Downtown revitalization efforts have helped Stockton attract four (4) professional Delivered free2450 and S B clear. St sports teams to the city. These include: Stockton Thunder (hockey), Stockton Cougars (soccer), 2450 S B St, Stockton, CA VALUATION SUMMARY 7 Units Stockton Lightning (arena football) and Stockton Ports (minor league baseball). Additionally,VALUATION the Downtown core is home to the renowned Stockton Symphony. Residents at Northwood are just a PROPERTY INFORMATION 10-minute drivePRICING to Downtown Stockton. PRO FORMA ASSUMPTIONS CURRENT RENTS MARKET RENTS Address 2450 S B St •Suggested Significant Net Price barriers to entry$675,000 for new multifamily development - The city of Stockton presents Stockton, CA Price Per Unit $96,429 Income Units 7 Priceseveral Per SF barriers to entry for new $127multifamilyGPR development. Factors leading to this$66,600 include a dwindling$72,600 Net Rentable SF 5,300 supply of properly zoned medium toVacancy/Losses high-density residential land, hefty increases($3,330) in construction($3,630) Avg Unit Size 757 CURRENTcosts RENTS & development impact fees andOther less Income attractive financing. Currently, there$0 are less than$0 300 Rent Roll October 2015 Cap.conventional Rate multifamily units in7.0% the developmentTotal Income pipeline for Stockton. As$63,270 the demand$68,970 for well- GRM 10.1 Expenses located, luxury rental housing in thisOperating submarket Expenses outpaces supply, owners of$14,898 existing communities$14,898 MARKETwill RENTS realize strong property occupancies,Replacement above Reservesaverage rent growth and steady$1,400 increases in$1,400 value. Cap. Rate 7.8% Total Expenses $16,298 $16,298 GRM 9.3 Net Operating Income $46,972 $52,672 UNIT MIX & RENTAL SUMMARY 3 BR x 1 UNITS AVG SF* % MIX TOTAL APPROX SF AVG CONTRACT RENT PER SF AVG MKT RENT PER SF BA 2 BR x 1 BA 43% 57% 2 BR x 1 BA 4 650 57% 2,600 $700 $1.08 $800 $1.23 3 BR x 1 BA 3 900 43% 2,700 $917 $1.02 $950 $1.06 TOTAL / AVERAGE 7 757 100% 5,300 $793 $1.05 $864 $1.14 *SF has been estimated VALUE MATRIX 6 LIST LIKELY LOW SUGGESTED VALUE $675,000 $595,000 $535,000 PRICE PER UNIT $96,429 $85,000 $76,429 PRICE PER SF $127 $112 $101 CURRENT RENTS CAP RATE - CURRENT 7.0% 8.1% 9.1% GRM - CURRENT 10.1 8.9 8.0 MARKET RENTS CAP RATE - MARKET 7.8% 9.0% 10.2% GRM - MARKET 9.3 8.2 7.4 S B STREET Mutual Housing’s New Harmony - 69 affordable units S LAUREL STREET 7 2450 S B STREET 7 HOUSES ON ONE PARCEL PROPERTY DETAILS 8 2450 S B STREET 7 HOUSES ON ONE PARCEL PROPERTY INFORMATION Address 2450 S B Street, Stockton, CA Intersection S B Street and 11th St County San Joaquin Year Built N/A Number of Units 7 Houses Site Size 0.96 acres Parcel Number 097-210-290-0000 Stories 1 Parking ~20 Parking Spaces Parking Ratio 2+ Parking Spaces Per Unit 9 2450 S B STREET 7 HOUSES ON ONE PARCEL PROPERTY INFORMATION CONSTRUCTION Roof Composition Shingle Exterior Walls Stucco/Wood Siding Paving Asphalt MECHANICAL Cooling / Heating Central Heat and Air Waste removal bins are kept in the backyard/ Waste Removal driveway UTILITIES Electricity PG&E, Paid for by tenants Gas PG&E, Paid for by tenants Trash Direct billed to tenants Water Direct billed to tenants Sewer Direct billed to tenants 10 2450 S B STREET 7 HOUSES ON ONE PARCEL RENTAL MARKET STUDY 11 2450 S B STREET 7 HOUSES ON ONE PARCEL RENT SURVEY COMPARABLES 2450 S B St 2450 S B St, Stockton, CA RENT COMPARABLES 7 Units RENT COMPARABLES Comp # Location Unit Type Rent Notes 1 406 E 5th St 2 BR x 1 BA $750 850 square feet, wall furnace and A/C, washer/dryer hookup. 2 5207 E Mariposa Rd 2 BR x 1 BA $800 Tiled counter tops, tile bathroom, large yard. 3 2618 Odell Ave 2 BR x 2 BA $900 Remodeled kitchen, washer/dryer hookup, large yard. Comp Totals/Avgs. 2 BR x 1 BA $817 Subject 2450 S B St 2 BR x 1 BA $800 4 1127 N Airport Way 3 BR x 2 BA $1,250 Laundry room, new paint, new flooring, 1,476 sq ft, large back yard. 5 3470 E Lafayette St 3 BR x 1.5 BA $1,100 New paint, carpet, flooring, 2 car garage, w/d included, dual pane windows. Comp Totals/Avgs. 3 BR x 1 BA $1,175 Subject 2450 S B St 3 BR x 1 BA $900 S 1 2 3 1 2 3 4 4 4 5 6 5 7 8 12 CONFIDENTIAL DISPOSITION PROPOSAL RENT COMPARABLES MAP Comparables 1.