4-plex in sunnyvale - loopnet...christian losness broker/partner tel (408) 824‐1111 bre no....
TRANSCRIPT
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
522 S. Fair Oaks Ave. Sunnyvale, Ca. 940864-PLEX in SUNNYVALE
• Gross Income: $112,000• Unit mix: (1) 3/2, (2) 2/1,
and (1) 1/1• Located 3 Miles from the Apple
Spaceship• Located 1.5 Miles from Apple’s
Wolfe/Central Campus• Copper Plumbing Throughout• Upside in Rents• Large Remodeled Owners Unit
PRICE: $2,250,000
SUNNYVALE
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Disclosures
• The information contained in the following Marketing Presentation is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Losness Group and should not be made available to any other person or entity without the written consent of Losness Group. This Marketing Brochure is intended to be used for the sole purpose of preliminary evaluation.
• This Marketing Brochure has been prepared 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. Losness Group 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 Presentation has been obtained from sources we believe to be reliable; however, Losness Group has not verified, and will not verify, any of the information contained herein. Losness Group makes no representation or warranty regarding the property, including but not limited to: income, expenses, or financial performance (past, present or future); size, square footage, condition of property. Losness Group has not conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any potential buyer must independently investigate and verify all information set forth in Marketing Presentation and is solely responsible for all costs and expenses incurred in reviewing the Marketing Presentation and/or investigating and evaluating the property.
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Property Overview
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Local Map
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Property Profile
Zoning N/A
Foundation Concrete Perimeter
Framing Wood
Exterior Stucco
Parking Surface Concrete
Roof Composition
Parking Carport/Street
Metering Individual Gas/Elect
Year Built 1968
Property Address 522 S. Fair Oaks Ave.
Major Cross Street S. Fair Oaks
Parcel Number 209‐19‐026
Number of Units 4
Number of Buildings 1
Number of Stories 2
Unit Mix (1) 3/2, (2) 2/1, (1) 1/1
Gross Living Area 3,603 SF
Lot Size 7,742 SF
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Location Overview
• Property is located just 3.0 miles from Apples Spaceship Headquarters• Property is located just 1.5 miles from Apple’s new Wolfe/Central Campus• Property is located less than 1 mile from Historic Downtown Sunnyvale
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Property Overview
Very Clean 4‐Plex in Sunnyvale. Unit Mix: (1) 3 bedroom/2 bath (vacant), (2) 2 bedroom/1 bath and (1) 1 bedroom/1 bath. Current Gross Rent: $112,000. Pro‐Forma Gross Rent: $127,000. Upgrades to all kitchens and bathrooms. Centrally located to all major tech companies in Sunnyvale and less than a mile from historic Downtown Sunnyvale. Copper plumbing throughout. Roof is just 6 yrs. old. Tuck under parking and additional storage for tenants. Drought resistant landscaping. Community washer/dryer owned, not rented. Central Heating in 3 units wall heater for 4th unit. All units feature large floor‐to‐ceiling closets or walk in closets.
Home Inspection, Pest Report and Roof Reports available.
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Financials
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Offering Summary
Address 522 S. Fair Oaks Ave.
Price $2,250,000
Unit Mix (1)3/2, (2)2/1 and (1)1/1
Parcel Number 209‐19‐026
Age 1968
Number of units 4
Rentable Sq. Ft. 3,603
Lot Size 7,742
CAP Rate 3.38%
Pro‐Forma CAP 4.12%
GRM 20.14
Pro‐Forma GRM 17.52
ROI 2.53%
Pro‐Forma ROI 4.18%
$ Per Unit $562,500
$ Per Sq. Ft. $624
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Rent Roll
# UNIT MIX RENT MARKET $ Below Market % Below Market
1 3bed / 2bath $3,350 $3,400 $50 1.47%
2 2bed / 1bath $1,960 $2,500 $540 21.60%
3 2bed / 1bath $2,300 $2,500 $200 8.00%
4 1bed / 1bath $1,700 $2,100 $400 19.05%
TOTALS $9,310 $10,500 12.53%
NOTES: The 1/1 unt is currently occupied by the manager, whos rent will increase to $1,700 when the property transfers.
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Income/Expense Statement
INCOME (Annual) ACTUAL PRO‐FORMA
Gross Rental Income $111,720 $128,400
Laundry/Other Income $1,200 $1,200
Less Vacancy $1,117 $1,284
Effective Gross Income $111,803 $128,316
EXPENSES (Annual)
Taxes (City) $26,550 $26,550
Special Assesment (City) $275 $275
Insurance (Lender) $1,621 $1,621
Water $2,400 $2,400
Garbage $2,400 $2,400PG&E $2,400 $2,400Total Expenses $35,646 $35,646Net Operating Income $76,156 $92,670
SUMMARY Expenses $35,646 $35,646% Expenses 31.88% 27.78%Cap Rate 3.38% 4.12%GRM 20.14 17.52ROI $25,310 $41,823ROI as % 2.53% 4.18%
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Buyer Financing StatementOFFERING UNITS UNIT TYPE CURRENT MARKET
Price $2,250,000 Unit #1 3/2 $3,350 $3,400
Down Payment 44% $1,000,000 Unit #2 2/1 $1,960 $2,600
Number of Units 4 Unit #3 2/1 $2,300 $2,600
Price/Unit $562,500 Unit #4 1/1 $1,700 $2,100
Rentable Square Feet 3,603 $9,310 $10,700
Price/Square Foot $624
Current CAP Rate 3.38% Loan Amount $1,250,000
Pro Forma CAP Rate 4.12% Intrest Rate 4.10%
Current GRM 20.14 Monthly Pay $6,040
Pro Forma GRM 17.52
ROI 2.53%
Pro Forma ROI 4.18%
INCOME Current Pro Forma EXPENSES Current
Gross Rental Income $111,720 $128,400 Taxes (City) 1.18% $26,550
Laundry Income $1,200 $1,200 Special Assesment (City) $275
Gross Scheduled Income $112,920 $129,600 Insurance (Lender) $1,621
Less Vacancy (5% of GRI) $1,117 $1,284 Water $2,400
Effective Gross Income $111,803 $128,316 Garbage $2,400
Less Expenses $35,646 $35,646 PG&E $2,400
NET OPERATING INCOME $76,156 $92,670 Permits $0
Debt Service $72,480 $72,480 Reserves $0
Net Cash Flow $3,677 $20,190 Management 5% 0% $0
Principal Reduction $21,633 $21,633 Total Expenses $35,646
Total Return $25,310 $41,823 Expenses/Unit $8,912
Expenses/SF $9.89
Christian LosnessBroker/PartnerTel (408) 824-1111 BRE No. [email protected]
www.losnessgroup.com
384-386 America Ave. Sunnyvale, CA. 94085
Sales Comparables
Selling Pric $2,446,000 Price/Unit: $611,500
# of Units 4 Price/SF: $645
DOM 20 CAP: 3.43%
Year Built: 1963 GRM: 17.50
Sq. Ft. 3,792 Lot Size 7,485
NOI $83,880 Gross Rent $139,800
Unit Mix (4) 2/1 Asking Price $2,580,000
994 Mangrove Ave. ‐ Sunnyvale 94086 NOTES: Lucrative pride of ownership cash cow at below market rents. Serene neighborhood next to Sunken Garden golf course. Laundry inside each unit, remodeled bathrooms, central A/C, 4 attached garages, additional 8 parking spaces, and new dual pane windows in each unit increase rental desirability and fetch high rents. Two units with new hardwood floors throughout and new kitchens. Two other units with partially remodeled kitchen and hardwood floors in dining areas.
Selling Pric $2,310,000 Price/Unit: $577,500
# of Units 4 Price/SF: $546
DOM 10 CAP: 3.34%
Year Built: 1972 GRM: 17.99
Sq. Ft. 4,230 Lot Size 7,480
NOI $77,040 Gross Rent $128,400
Unit Mix (2)3/1.5, (2)2/1 Asking Price $2,310,000
1251 W. Mckinley Ave. ‐ Sunnyvale 94086 NOTES: Limited Upgrades. WELL CARED FOR UNITS IN DESIRABLE RENTAL AREA OF SUNNYVALE. 1) 3 BEDROOM 2 BATH OWNERS UNIT WITH LIVING ROOM, FAMILY ROOM, INSIDE LAUNDRY ROOM AND PRIVATE GARAGE. SOME UNITS UPDATED AND HAVE GRANITE KITCHEN COUNTERS. 1) 3 BEDROOM 1.5 BATHS WITH GARAGE AND 1 ASSIGNED PARKING SPACE. 2) 2 BEDROOM UNITS WITH 1 BATH AND 1 CAR GARAGE AND 1 ASSIGNED PARKING SPACE.. LAUNDRY ROOM, FORCED AIR HEATING AND SOME UNITS WITH GAS LOG FIREPLACES.
Christian LosnessBroker/PartnerTel (408) 824-1111 BRE No. [email protected]
www.losnessgroup.com
384-386 America Ave. Sunnyvale, CA. 94085
Sales Comparables II
Selling Pric $2,150,000 Price/Unit: $537,500
# of Units 4 Price/SF: $534
DOM 7 CAP: 3.15%
Year Built: 1978 GRM: 19.03
Sq. Ft. 4,029 Lot Size 8,084
NOI $67,800 Gross Rent $113,000
Unit Mix (1)3/2,(2)2/1,(1)1/1 Asking Price $2,099,000
1057 Reed Terrace ‐ Sunnyvale 94086 NOTES: $100 HOA fee. Limited Upgrades. WELL CARED FOR UNITS WITH DOWNSTAIRS 3 BEDROOM 2 BATH OWNERS UNIT WHICH FEATURES A VAULTED CEILING, FIREPLACE, SMALL YARD AND 2 CAR GARAGE. (2) 2 BEDROOM / 1.5 BATHS UNITS, EACH WITH A ONE CAR GARAGE AND 1 ASSIGNED PARKING SPACE. (1) 1 BEDROOM / 1 BATH APARTMENT WITH 1 CAR GARAGE. FORCED AIR HEATING, ALL UNITS WITH WALL AIR CONDITIONING , LAUNDRY ROOM.
Selling Pric $2,100,000 Price/Unit: $525,000
# of Units 4 Price/SF: $560
DOM 20 CAP: 3.06%
Year Built: 1967 GRM: 19.63
Sq. Ft. 3,752 Lot Size 7,457
NOI $64,200 Gross Rent $107,000
Unit Mix (1)3/2,(1)3/1.5,(1)2/1,(1)1/1 Asking Price $2,099,000
644 E. Olive Ave. ‐ Sunnyvale 94086 NOTES: Limited Upgrades. The units are well‐apportioned and over‐sized compared to others built in this similar timeframe. The units are generally clean with 3 bedroom units containing dishwashers and forced air. This investment is perfect for an owner occupier as the owner's unit contains a fireplace, large living room, and a private patio or investor looking for an opportunity to add‐value through unit repositioning. There are (5) tuck‐under parking spaces with storage units and on‐site laundry facility, all great rental features.
Christian LosnessBroker/PartnerTel (408) 824-1111 BRE No. [email protected]
www.losnessgroup.com
384-386 America Ave. Sunnyvale, CA. 94085
Comparables vs. Subject
Address Price # /Units $/Unit Sq. Ft. $/Sq Ft CAP GRM
994 Mangrove Ave. - Sunnyvale 94086 $2,446,000 4 $611,500 3,792 $645 3.43% 17.50
1251 W. Mckinley Ave. - Sunnyvale 94086 $2,310,000 4 $577,500 4,230 $546 3.34% 17.99
1057 Reed Terrace - Sunnyvale 94086 $2,150,000 4 $537,500 4,029 $534 3.15% 19.03
644 E. Olive Ave. - Sunnyvale 94086 $2,100,000 4 $525,000 3,752 $560 3.06% 19.63
Average $2,302,000 $562,875 3,951 $571 3.24% 18.53
522 S. Fair Oaks Ave. $2,150,000 4 $537,500 3,603 $597 3.25% 19.14
Christian LosnessBroker/PartnerTel (408) 824-1111 BRE No. [email protected]
www.losnessgroup.com
384-386 America Ave. Sunnyvale, CA. 94085
Christian LosnessBroker/PartnerTel (408) 824-1111 BRE No. [email protected]
www.losnessgroup.com
384-386 America Ave. Sunnyvale, CA. 94085
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Pictures
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Pictures
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
Pictures
Christian LosnessBroker/PartnerTel (408) 824‐1111 BRE No. [email protected]
www.losnessgroup.com
522 S. Fair Oaks Ave. ‐
Sunnyvale, Ca. 94086
About Your Agent and Losness Group
Christian Losness is a broker and partner at the Losness Group which he co‐founded with his two partners in 2005. Since its inception, Christian and the Losness Group have taken part in over $500,000,000 in local apartment sales, third largest among all real estate companies. Christian also does seminars on apartment topics for local apartment owners, keeping them up to date on the local apartment economy and opportunities. He has been asked to write several articles for the Apartment Owners Association, the California Apartment Association, and the Business Journal. Recently, Christian was asked to become Chairman of the Bay Area Brokers Forum, an influential group of top local apartment brokers. Christian’s knowledge and specialization has helped several owners achieve record pricing for their apartments in recent years and he continues to be at the forefront of his industry.
The Losness Group was founded in 2006 by three Silicon Valley‐based brothers. We are a full service commercial brokerage firm specializing in apartment brokerage. We are apartment specialists with a proven record of improving clients portfolio's and we are dedicated to providing expert guidance through every step of the real estate transaction. Our specialization in the local apartment economy creates unparalleled expertise. We are committed to continually assisting in your real estate investment needs, visions, and goals, and applying our resources to meet those requirements.