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. 6 1643-1659 B STREET 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. 7 1643-1659 B STREET 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. 9 1643-1659 B STREET 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 12 1643-1659 B STREET AERIAL PHOTO 13 1643-1659 B STREET 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 . 15 1643-1659 B STREET LOCAL MAP 16 1643-1659 B STREET REGIONAL MAP 17 1643-1659 B STREET 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 20 1643-1659 B STREET FINANCIAL ANALYSIS RENT ROLL SUMMARY 21 1643-1659 B STREET FINANCIAL ANALYSIS RENT ROLL DETAIL 22 1643-1659 B STREET FINANCIAL ANALYSIS OPERATING STATEMENT 23 1643-1659 B STREET FINANCIAL ANALYSIS NOTES 24 1643-1659 B STREET FINANCIAL ANALYSIS PRICING DETAIL 25 1643-1659 B STREET 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.