RIVER’S SIDE AT WASHINGTON SQUARE 3RD STREET 289 West Sacramento, CA EXCLUSIVE LISTING Prepared by: Aaron Frederick David Herrera Colliers International Senior Vice President Senior Vice President 301 University Avenue, Suite 100 916 830 2584 916 563 3032 Sacramento, CA 95825 [email protected] [email protected] 916 929 5999 Lic. 1298833 Lic. 01484908 www.colliers.com/sacramento CONTENTS PROPERTY OVERVIEW ........................................................... 3 PROPERTY LOCATION ........................................................... 4 PRICING SUMMARY ................................................................ 5 2017 RENT CALCULATIONS .................................................... 7 RIVER’S SIDE AT WASHINGTON SQUARE ............................... 9 BUILDING PARKING LOT PLAN ..............................................10 FLOOR PLANS ........................................................................11 FUN FACTS ........................................................................... 15 REGIONAL OVERVIEW .......................................................... 17 DEMOGRAPHICS .................................................................. 20 THIS IS NOT AN APPRAISAL: This Real Estate Broker’s Opinion of Value is intended for the sole and exclusive use of David Townsend (“the Client”) and may not be relied upon any person or entity other than the Client for any purpose whatsoever. This Real Estate Broker’s Opinion of Value represents only the opin- ion of Colliers International as to the value of the Subject Property, subject to the assumptions and qualifications set forth herein. Colliers International is not licensed to perform real property appraisals. Accordingly, this Real Estate Broker’s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal Practice. The Real Estate Broker’s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that exist as of the date of this Broker’s Opinion of Value. 2 COLLIERS INTERNATIONAL 2 property OVERVIEW This is a rare opportunity to purchase the only mixed-use property in the River’s Side at Washington Square in West Sacramento. Built in 2007, the property anchors 25 detached, zero-lot-line, single-family homes in an emerging neighborhood. Bean & Barrel, a locally grown, owned and operated eatery with a contemporary coffee shop and wine bar, occupies the ground floor. Directly above the restaurant are four remodeled apartments which are categorized for affordable housing with an income restriction. There are two studios and two two-bedroom, one-bath units which are allotted one reserved off-street parking space per resident. All four units have been remodeled with new cabinets, granite counter tops, wood laminate floors and/or stained concrete. Each unit features central heat & air and an individual water heater. The modern kitchens are fitted with a gas stove, microwave, dishwasher and refrigerator. Elevator access is available to the residents. In addition, a common area washer and dryer is available to the tenants at no cost to them. The property includes a ground lease with the City of West Sacramento for a 17-stall parking lot used by the Bean & Barrel. The retail tenant pays $4,500 per year for use of these parking spaces. West Sacramento is separated from the City of Sacramento by the Sacramento River. The I Street Bridge immediately connects the River’s Side at Washington Square to Old Sacramento and J Street - the gateway to the heart of Downtown Sacramento. Less than one mile from the subject property is the Golden 1 Center, an indoor arena used by the Sacramento Kings basketball team and Raley Field, which is home to the Sacramento River Cats. Residents have access to The River Walk Park, a paved trail on the west bank of the Sacramento River. The Park offers picnic areas, informational signs about the settlement of Sacramento, a grand staircase for special events & concerts, fishing, boat access, and a recreational park. The proximity to amenities, urban lifestyle and affordability make West Sacramento a growing community. investment HIGHLIGHTS > Mixed-use property > Built in 2007 > Central heat & air > Four apartments and one retail > Individual water heaters > Apartments are income restricted > Shared washer/dryer > All four units remodeled > Elevator > Less than one mile to Golden 1 Center > Reserved off-street parking > Proximity to Raley Field > Ground lease - 17 parking spaces > Access to The River Walk Park 3 COLLIERS INTERNATIONAL property LOCATION DOWNTOWN ±55 ±140 400 DOWNTOWN RESTAURANTS RETAIL BARS BUSINESSES THE BRIDGE DISTRICT THE RAILYARDS FUTURE DEVELOPEMENT I ST BRIDGE RAILYARDS BLVD PROPOSED BRIDGE 3RD ST C ST 4TH ST 5TH ST > 4 COLLIERS INTERNATIONAL pricing SUMMARY PRICING SUMMARY Address 289 3rd Street City, ST, Zip West Sacramento, CA 95605 Year Built 2007 Rentable Sq.Ft. 5,095 Approx. Lot Size (Acres) 0.09 APN 010-580-018 PRICE $2,000,000 Price per Sq.Ft. $392.54 Current CAP Rate 4.56% Current GRM 14.56 5 COLLIERS INTERNATIONAL BREAKDOWN SUnitCHED MixULED Income INCOME Current Proforma Monthly Monthly Monthly Monthly # of Units Unit Type Sq.Ft. Rent/Unit Income Rent/Unit Income 2 studio 579 $623 $1,246 $623 $1,246 2 2bed/1bath 984 $1,850 $3,700 $1,900 $3,800 1 Commerical 1,969 $6,500 $6,500 $6,500 $6,500 Total Monthly Income $11,446 $11,546 AnnualizedANNUALIZED Operating OPERATING Income INCOME Current ProForma Scheduled Rental Income $137,352 $138,552 Less Vacancy Rate 3% -$1,260 -$1,368 Gross Operating Income $136,092 $137,184 Less Expenses -$44,945 -$45,010 Net Operating Income $91,147 $92,174 AnnualizedAnnualized ExpExpensesenses Expenses % of GOI Current ProForma New Taxes* 1.15% $23,000 $23,000 Insurance $2,059 $2,059 Utilities $8,000 $8,000 Management 6.0% $8,166 $8,231 Repair & Maintenance 2.2% $3,000 $3,000 HOA $720 $720 Parking $0 $0 Total Expenses $44,945 $45,010 % of Gross Operating Income 33.03% 32.81% Expense per Unit $8,989 $9,002 *New Taxes based on proposed purchase price not % of GOI NOTES: Vacancy is only based on the apartment units. R&M estimated. Annual parking fee is paid by Bean & Barrel - rate is $4,500 a year. 6 COLLIERS INTERNATIONAL 2017 RENT CALCULATIONS River’s Side at Washington Square 2017 HCD Income Limits Yolo County HOUSEHOLD SIZE INCOME 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person Very Low $26,950 $30,800 $34,650 $38,450 $41,550 $44,650 $47,700 $50,800 (50%) Moderate $64,600 $73,850 $83,050 $92,300 $99,700 $107,050 $114,450 $121,850 (120%) 2017 Median Household Income: $76,900 Source: 2017 HCD Income Limits (Effective 6/9/2017) Rent Calculations Very-Low Income Units (0 BR) One-Person Income (50% of AMI)* $26,950 Max Gross Rent (30% of 50%) $673 Utility Allowance** $50 Max Contract Rent $623 * Based on HCD 2017 Income Limits for Yolo County ** Based on 07/17 Yolo County Housing Authority Utility Allowances (EEG) Moderate Income Units (2 BR) Three-Person Income (120% of AMI)* $83,050 Max Gross Rent (30% of 120%) $2,076 Utility Allowance** $72 Max Contract Rent $2,004 * Based on HCD 2017 Income Limits for Yolo County ** Based on 07/17 Yolo County Housing Authority Utility Allowances (EEG) 7 COLLIERS INTERNATIONAL river’s SIDE AT WASHINGTON SQUARE Subject Property 9 COLLIERS INTERNATIONAL building PARKING LOT PLAN - RIVER’S SIDE PARKING Burger & Brew Subject Parking 10 COLLIERS INTERNATIONAL floorPLANS Ground Floor - Retail Space Second Floor - Apartment Units 12 COLLIERS INTERNATIONAL 13 COLLIERS INTERNATIONAL 14 COLLIERS INTERNATIONAL CITY RANKINGS #1 Rental growth nationally over the past 12 months #1 Happiest workers in mid-sized cities #1 Most valuable minor league baseball team 104,841 17,737 #2 Top 10 Most fun, affordable US cities DAYTIME EMPLOYEES HOUSING UNITS #4 U.S. Metro clean tech index #4 Best cities for nerds #10 Best cities for women in the workforce #10 Least stressed-out cities #10 The 10 best cities for coffee enthusiasts #14 America’s coolest cities in 2014 MILES OF BIKE32+ PATHS (SAC REGION) THE KAY 50+ SLEEK MODERN RESTAURANTS WITHIN WALKING DISTANCE fun FACTS ENTERTAINMENT DISTRICT NEW PROFESSIONAL SPORTS AND ENTERTAINMENT CENTER WITH DEVELOPMENT OF 350,000 SF RETAIL, 250-ROOM HOTEL AND UP TO 500,000 SF RESIDENTIAL UNITS THE RAILYARDS THE RAILYARDS WILL BE A MIXED-USE HUB FOR ENTERTAINMENT, RETAIL, HOUSING, OFFICE, THEATERS, PARKS, HOTELS, AND MUSEUMS 15PHOTOCOLLIERS CREDIT: INTERNATIONAL CHRIS YUEN, COLLIERS INTERNATIONAL 1410 G STREET 15 DOWNTOWN19,650 RESIDENTS RESTAURANTS140 DOWNTOWN55 BARS RETAIL400 BUSINESSES ONE OF THEGOLDEN MOST TECHNOLOGICALLY 1 ADVANCEDCENTER ARENAS IN THE WORLD 15.3REGIONAL ANNUALMILLION VISITORS OLD SACRAMENTO THE BRIDGE DISTRICT 3.3 MILLION VISITORS ANNUALLY PROPOSED 4,000 RESIDENTIAL UNITS, 5 MILLION SF OF COMMERCIAL SPACE AND 500,000 SF OF RETAIL SPACE. 16 COLLIERS INTERNATIONAL 16 COLLIERS INTERNATIONAL regional OVERVIEW The Sacramento Region is a place where exciting opportunities are being created for its 2.3 million residents and growing Sacramento businesses, including the region’s rapid emergence as a national leader in several high growth technology fields. The Sacramento Region offers a welcoming business climate, an abundant and educated workforce from its world-class research and educational institutions, and low costs of living and doing business; the perfect incubator for business