263 los gatos blvd, los gatos 95032 - loopnet · 2019. 12. 3. · colliers international |...

COLLIERS INTERNATIONAL | MULTIFAMILY TEAM

263 LOS GATOS BLVD, LOS GATOS 95032

ERIC KATZSenior Vice President(408) [email protected] Lic. 01900078

DANIEL KATZSenior Client Services Specialist(808) [email protected] Lic. 02081544

DAVID KATZSenior Associate(408) [email protected] Lic. 01971921

263 LOS GATOS BLVDLOS GATOS, CA

PROPERTY DETAILSLOCATION OVERVIEWFINANCIALSSALES COMPSSALES COMPS ANALYSIS

I.II.III.IV.V.

TABLE OF CONTENTS

INVESTMENT OVERVIEW FOR 263 LOS GATOS BLVD

EXECUTIVE SUMMARYThe Multifamily Team of Colliers International is pleased to present the opportunity to acquire 263 Los Gatos Blvd, a 4-unit Multifamily apartment building in the highly desirable town of Los Gatos.

Constructed in 1932 and rebuilt in the 1990s, the property consists of (4) spacious two-bedroom / two-bath units and features 4,530 of total square feet (lot size of 7,775 square feet). The units have a wide variety of amenities, including washer/dryer in unit, central A/C and heating, covered parking, and additional storage.

The property is walking distance to top rated Los Gatos schools and to North Santa Cruz Avenue in Downtown Los Gatos. It also features easy access to Highways 17 and 85.

ADDRESS 263 Los Gatos Blvd

CITY Los Gatos, 95032

YEAR BUILT 1932/Rebuilt in 1990's

UNITS 4

BUILDING SF 4,530

LOT SF 7,755

OCCUPANCY 75%

APN # 529-24-020

KEY DETAILSPRICE $2.95M

CURRENT CAP RATE 3.5%

PRO FORMA CAP 4.0%

CURRENT GRM 19.4

PRO FORMA GRM 17.6

PRICE/UNIT $738K

PRICE/BUILDING SF $651

KEY METRICSNET OPERATING INCOME $103K

LOAN AMOUNT $1.48M

LOAN-TO-VALUE (LTV%) 50%

DEBT COVERAGE RATIO 1.2

ANNUAL DEBT SERVICE1 $85K

NET CASH FLOW AFTER DEBT $18K

TOTAL RETURN $44K

TOTAL RETURN (%) 3.0%1Debt Service calculation assumes 4.0% Interest Rate and 5 year fixed amortization schedule

KEY FINANCIALS

DETAILSPROPERTYI.

A. PROPERTY DETAILS

B. PROPERTY AERIAL

C. POINTS OF INTEREST

D. PROPERTY PHOTOS

ROOFComposition Shingle; Pitched

CONSTRUCTIONWood Frame

HEATINGForced-Air;Gas

COOLINGWindows;Air Conditioning

PARKINGCovered Parking for Each Unit; 1 Two Car Garage

LAUNDRYWasher/Dryer in Unit

STORAGEAdditional Tenant Storage

APPLIANCESRefrigerator; Stove; Dishwasher

FLOORINGCarpet; Tile

WINDOWSDual-Pane Windows

HOT WATERIndividual Water Heaters

PATIOS/BACKYARDS4 Patios

PROPERTY DESCRIPTION

1

AERIAL VIEW

263 Los Gatos Blvd

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

20. 21. 22. 23. 24. 25. 26. 27.

RestaurantsBlue Line PizzaSteamer’s GrillhouseThe Lexington HouseGardino’s Ristorante ItalianoWe Olive & Wine BarThe PalmsLoma Brewing CompanyForbes Mill SteakhouseDolce Spazio GelatoOak & RyePedro’sChin-Chin Win Bar & RestaurantNothing Bundt CakesEnoteca La StoriaStarbucksSweet Pea’s Café & CateringCampo di BocceThe BywaterLos Gatos Meats & Smoke House

Subway RestaurantsTaco BellTogo’s SandwichesPeet’s CoffeeStarbucksChipotle Mexican GrillFirenza PizzaPhilz CoffeeViva PrimaveraHappy HoundJack In the BoxClassic Burgers of Los GatosLou’s RestaurantLos Gatos Café UptownBlvd CoffeeErik’s DeliCafeMcDonald’sBaja Fresh Mexican GrillSee’s Candies

RetailApple Los GatosGAPU.S. BankWells Fargo BankBank of AmericaChase BankWalgreensPetcoSafewayThe UPS StoreWells Fargo Bank7-ElevenWells Fargo BankCVSBank of AmericaPier 1Whole Foods MarketRite AidCitibank

Nob Hill FoodsChase BankFedEx Office Print & Ship CenterHertzO’Reilly Auto PartsThe UPS StoreTrader Joe’sAAA Los Gatos

CommunityOld Town CenterLos Gatos Community FoundationLos Gatos DMVLos Gatos Police Department

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38.

1. 2. 3. 4.

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7 8

9 10

11 20

16 18

1412

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22 23

24

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27

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29 30 31 32

33

3435

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37 38

17 1915

13

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89

10 11 12

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1415

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2223 24

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4

AERIAL VIEW POINTS OF INTEREST

263 Los Gatos Blvd

PROPERTY PHOTOS

PROPERTY PHOTOS PROPERTY PHOTOS

OVERVIEWLOCATIONII.

A. REGIONAL AND LOCAL OVERVIEW

B. CITY OVERVIEW

C. CITY DEMOGRAPHICS

REGIONAL & LOCAL OVERVIEW

Home to 29 Fortune 500 companies, and 32 companies which have been included on Inc. 500’s list of fastest growing private companies.

Over 7.34 million residents and the highest percentage of graduate and professional degrees in the nation.

Superb quality of life with a Mediterranean climate, world-class cultural resources, and the stunning natural beauty of the Pacific Ocean and the Sierra Nevada Mountains.

Highest concentration of venture capital firms in the world which have invested an average of $10 billion annually in 1,100 local area firms.

Proximity to outstanding education and research institutions at Stanford University, UC Berkeley, USF, UC Davis, Santa Clara University, and San Jose State University.

LOS GATOSO V E R V I EW

Los Gatos is an incorporated town in Santa Clara County, California,

with a population of 41,544 as of 2017. According to Bloomberg

Businessweek, Los Gatos is ranked the 33rd wealthiest city in the United

States.

It is located in the San Francisco Bay Area at the southwest corner of

San Jose in the foothills of the Santa Cruz Mountains. It is also located in

the heart of Silicon Valley, and is home to several high tech companies,

most notably Netflix.

LOS GATOSD EMO G R A P H I C S

MEDIAN PROPERTY VALUE

$1.5M10.3% GROWTH

NUMBER OF EMPLOYEES

14KO.6% GROWTH

POPULATION ESTIMATE

42K0.7% GROWTH

MEDIAN HOUSEHOLD INCOME

$132K4.2% GROWTH

FINANCIALSIII.A. RENT ROLL

B. UNIT MIX

C. FINANCIAL OVERVIEW

RENT ROLLUNIT

#UNIT TYPE SQUARE FEET CURRENT

RENTCURRENT RENT/SF

MARKET RENT

MARKET RENT/SF

1 2BD/2BA 1132.5 $3,400 $3.00 $3,495 $3.09

2 2BD/2BA 1132.5 $3,495 $3.09 $3,495 $3.09

3 2BD/2BA 1132.5 $2,887 $2.55 $3,495 $3.09

4 2BD/2BA 1132.5 $2,887 $2.55 $3,495 $3.09

4 UNITS ALL 4530 $12,669 $2.80 $13,980 $3.09

UNIT TYPE % OF UNITS # OF UNITS AVG SQFT AVG CURRENT RENT

AVG MARKET RENT

2BD/2BA 100% 4 1132.5 $3,167 $3,495

Grand Total 100% 4 1132.5 $3,167 $3,495

UNIT MIX

UNIT MIX FINANCIAL OVERVIEW

*Quote obtained from Willow Glen Insurance Company1Debt Service calculation assumes Loan amount of $1.48M at 4.0% Interest Rate and 5 year fixed Amortization schedule.2Implied Debt Coverage Ratio of 1.2 and 50% Loan to Value.

FINANCIAL STATEMENT CURRENT PER UNIT PER MONTH PRO FORMA PER UNIT PER MONTH NOTES

REVENUES

Gross Potential Rent $152,028 $38,007 $12,669 $167,760 $41,940 $13,980

Gross Potential Income $152,028 $38,007 $12,669 $167,760 $41,940 $13,980

Vacancy $4,561 $1,140 $380 $5,033 $1,258 $419 Assumed 3% Vacancy

Effective Gross Income $147,467 $36,867 $12,289 $162,727 $40,682 $13,561

EXPENSES

Real Estate Taxes $34,258 $8,565 $2,855 $34,258 $8,565 $2,855 Actual - Based on SCC Tax Board Data

Special Taxes and Assessments $2,075 $519 $173 $2,075 $519 $173 Actual - Based on SCC Tax Board Data

Insurance $2,016 $504 $168 $2,016 $504 $168 Actual - Based on insurance quote*

Utilities $1,001 $250 $83 $1,001 $250 $83 Actual - Based on 2018 P&L

Landscaping $2,420 $605 $202 $2,420 $605 $202 Actual - Based on 2018 P&L

Repairs & Maintenance $3,000 $750 $250 $3,000 $750 $250 Estimated - $750/unit/year

Total Expenses $44,770 $11,193 $3,731 $44,770 $11,193 $3,731

Expenses / Sqft $10 $10

Expense Ratio (%EGI) 30% 28%

PROFITS AND CASH FLOW

Net Operating Income (NOI) $102,697 $25,674 $8,558 $117,957 $29,489 $9,830

Debt Service1 $84,503 $84,503

Net Cash Flow after Debt Service2 $18,194 $1,516 $33,454 $2,788

Net Cash Flow after Debt Service (%) 1.2% 2.3%

Principal Reduction $25,975 $25,975

Total Return $44,170 $3,681 $59,430 $4,952

Total Return (%) 3.0% 4.0%

COMPSSALESIV.

A. MAP

B. KEY DETAILS

C. KEY METRICS

MAP OF SALES COMPS

# ADDRESS CITY

1 306 Andrews St Los Gatos

2 470 San Benito Ave Los Gatos

3 886 Castlewood Dr Los Gatos

263 Los Gatos Blvd23

4

KEY DETAILS FOR SALES COMPSPHOTO ADDRESS CITY PRICE UNITS UNIT MIX BUILDING SF LAND SF YEAR BUILT CLOSE OF ESCROW

306 Andrews St Los Gatos, 95030 $2,963,025 4

1 Studio; 1 1BD/1BA; 1 2BD/1BA;

1 4BD/3.5BA

4,760 9,000 1963 10/31/2018

470 San Benito Ave

Los Gatos, 95030 $3,575,000 4 3 1BD/1BA;

1 3BD/2BA 5,580 9,318 1918 6/18/2018

886Castlewood Dr

Los Gatos, 95032 $2,000,000 4

1 1BD/1BA; 2 2BD/1BA; 1 3BD/2BA

3,681 8,760 1963 4/23/2018

1

2

3

KEY DETAILS FOR SALES COMPSPHOTO ADDRESS CITY CAP RATE GRM PRICE/UNIT PRICE/SF PRICE/LSF NOTES

306 Andrews St Los Gatos, 95030 2.9% 22.9 $740,756 $622 $329 N/A

470 San Benito Ave

Los Gatos, 95030 1.8% 33.7 $893,750 $641 $384 N/A

886Castlewood Dr

Los Gatos, 95032 2.5% 23.1 $500,000 $543 $228 N/A

KEY METRICS FOR SALES COMPS1

2

3

ANALYSISSALES COMPSV.

A. CAP RATE

B. PRICE PER UNIT

C. GROSS RENT MULTIPLE

D. PRICE PER SQUARE FOOT

E. PRICE PER LAND SQUARE FOOT

3.5%

2.9%

1.8%

2.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

263 Los GatosBlvd

306 Andrews St 470 San BenitoAve

886Castlewood Dr

CAP RATEAVERAGE: 2.4%

SALES COMPS ANALYSIS

19.4

22.9

33.7

23.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

263 Los GatosBlvd


886Castlewood Dr

GRMAVERAGE: 26.6



738K 741K

894K

500K

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

263 Los GatosBlvd

306 AndrewsSt

470 SanBenito Ave

886Castlewood Dr

PRICE PER UNITAVERAGE: $711K


$651$622 $641

$543

$0

$100

$200

$300

$400

$500

$600

$700

263 Los GatosBlvd


886Castlewood Dr

PRICE / SQ FTAVERAGE: $602



$380

$329

$384

$228

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

263 Los GatosBlvd

306 AndrewsSt

470 San BenitoAve

886Castlewood Dr

PRICE / LAND SQ FTAVERAGE: $314


This Confidential Offering Memorandum (the “Memorandum”) has been prepared and presented to the recipient (the “Recipient”) by Colliers International (“Colliers”) as part of Colliers’ efforts to market the real property for sale. Colliers is the exclusive agent and broker for the owner(s) of the Property (the “Owner”). Colliers is providing this Memorandum and the material contained in it to the Recipient solely to assist the Recipient in determining whether the Recipient is interested in potentially purchasing all or part of the Property. Colliers also is providing this Memorandum and the material in it to the Recipient with the understanding that the Recipient will independently investigate those matters that it deems necessary and appropriate to evaluate the Property and that the Recipient will rely only on its own investigation, and not on Colliers, the Owner or this Memorandum, in determining whether to purchase the Property. The Recipient’s use of this Memorandum and the material in it is strictly governed by the terms and conditions of the Registration and Confidentiality Agreement that the Recipient previously executed and delivered to Colliers.

PLEASE NOTE THE FOLLOWING: Colliers, the Owner and their respective agents, employees, representatives, property managers, officers, directors, shareholders, members, managers, partners, joint venturers, corporate parents or controlling entities, subsidiaries, affiliates, assigns and predecessors and successors-in-interest make no representations or warranties about the accuracy, correctness or completeness of the information contained in this Memorandum. The Recipient is urged not to rely on the information contained in this Memorandum and to make an independent investigation of all matters relating to the Property.

This Memorandum includes statements and estimates provided by or to Colliers and/or the Owner regarding the Property. Those statements and estimates may or may not be accurate, correct or complete. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements and estimates.

Further, nothing contained in this Memorandum should be construed as representation or warranty about any aspect of the Property, including, without limitation, the Property’s (1) past, current or future performance, income, uses or occupancy, (2) past, current or prospective tenants, (3) physical condition, (4) compliance or non-compliance with any permit, license, law, regulation, rule, guideline or ordinance, or (5) appropriateness for any particular purpose, investment, use or occupancy. Again, the Recipient is urged not to rely on this Memorandum and the statements and estimates in it and to make an independent investigation regarding the Property and the statements and estimates contained herein.

This Memorandum may include statements regarding, references to, or summaries of, the nature, scope or content of contracts and/or other documents relating to the Property. Those statements, references or summaries may or may not be accurate, correct or complete. Additionally, Colliers may not have referenced or included summaries of each and every contract and/or other document that the Recipient might determine is relevant to its evaluation of the Property. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements, representations or summaries. On request and as available, and subject to the Owner’s consent, Colliers will provide the Recipient with copies of all referenced contracts and other documents.

Colliers assumes no obligation to supplement or modify the information contained in this Memorandum to reflect events or conditions occurring on or after the date of its preparation of this Memorandum. More detailed information regarding the anticipated terms, conditions and timing of any offering by the Owner relating to the Property will be provided in due course by separate communication. Colliers and/or the Owner reserve the right to engage at any time in discussions or negotiations with one or more recipients of this Memorandum and/or other prospective purchasers of the Property without notice or other obligation to the Recipient.

CONFIDENTIALITY AGREEMENT

DANIEL KATZSenior Client Services Specialist(808) [email protected] Lic. 02081544

DAVID KATZSenior Associate(408) [email protected] Lic. 01971921

ERIC KATZSenior Vice President(408) [email protected] Lic. 01900078

COLLIERS INTERNATIONAL | MULTIFAMILY TEAM

263 los gatos blvd, los gatos 95032 - loopnet · 2019. 12. 3. · colliers international |...

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