for sale imperial apartments · 2020. 1. 1. · venues comprising of the stockton arena and banner...

IMPERIAL APARTMENTSFOR SALE

26 Units | $2,250,000708-722 N Sutter Street Stockton, CA 95202

For more information, please contact Sacramento Multifamily Advisory Services below.

Michael Mathios+1 916 288 [email protected]. #01252862

Sutter McLoughlin+1 916 288 [email protected]. #02086137

CUSHMAN & WAKEFIELD | 2708-722 N Sutter Street, Stockton, CA

Confidentiality and Disclaimer Statement

Cushman & Wakefield (“Broker”) has been retained on an exclusive basis to market the property described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate.

The Material is intended solely for the purpose of soliciting expresssions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive

or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma.

Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect there to.

All property showings are by appointment only and must be arranged through Michael Mathios due to California State COVID-19 protocols.

Buyers should also be aware that the state of California enacted AB 1482, now known as California Tenant Protection Act of 2019, which implements rent control provisions with effect from January 1, 2020.

CUSHMAN & WAKEFIELD | 2

CUSHMAN & WAKEFIELD | 3

OfferingCushman & Wakefield Sacramento Multifamily Advisory Services is pleased to present the exclusive listing of Imperial Apartments, a 26 unit community at 708-722 N Sutter Street in Stockton, CA. Built in 1965, this community offers an excellent stabilized investment property that can be maintained as is, or renovated to achieve higher rental income levels.

OFFERING TERMS

Property will be delivered free and clear.

Send offers via email to Michael Mathios [email protected].

PROPERTY TOURS

All property tours must be arranged with Michael Mathios. Please do not approach or contact the tenants or on-site personnel.

708-722 N Sutter Street, Stockton, CA CUSHMAN & WAKEFIELD | 4708-722 N Sutter Street, Stockton, CA


Investment Highlights• 100% occupancy with all but one tenant

current in June to October monthly rent payments

• Excellent unit mix comprising of studios, one and two bed units

• Majority of units have recent updates to flooring, cabinetry, and countertops

• Pride of ownership displayed through property condition

• Opportunity for Buyer to increase net operating income through the implementation of a RUBS program

• Less than a mile from two major Stockton employers i.e. St. Joseph’s Medical Center and Stanislaus State Stockton Campus

• Close proximity to entertainment venues comprising of the Stockton Arena and Banner Island Ballpark

• There has been over 10 years of continuous ownership

Investment SummaryAsking Price $2,250,000

Estimated Down Payment 35% $787,500

Price Per Unit $86,538

Price Per Room $27,439

Price Per Square Foot $137.46

Stabilized Cap Rate 6.9%

Stabilized GRM 7.7X

In Place Cap Rate 6.1%

In Place GRM 8.3X

CUSHMAN & WAKEFIELD | 6708-722 N Sutter Street, Stockton, CA CUSHMAN & WAKEFIELD | 6708-722 N Sutter Street, Stockton, CA


Parcel #s 139-174-110-000Year Built 1965Land Area 0.52 acresDensity 51.0

Zoning CO StocktonNo. of Buildings Two two-story

apartment buildingsNumber of Units 26Unit Mix Two studio units

18 One Bed/One Bath units Six Two Bed/One Bath units

Rentable SF 16,368 SFParking 22 open parking spacesParking Ratio 0. 85 spaces per unitRoof Flat rolled composition

roofing system

Property Information

Exterior StuccoStructure Wood FrameFoundation Concrete slabPlumbing CopperWindows Dual pane vinyl slidersStairs Concrete treads with steel stringers

Heat In wall gas heatAir Conditioning Through wall electric air conditioningHot Water Three 100 gallon central

gas hot water heaters

Five 100 gallon hot water tanks used as water storage from

the solar panels

Thermal solar panels on both buildings to preheat incoming

water for water heaters

CONSTRUCTION

MECHANICAL

Gas Individually metered - paid by tenantElectricity Individually metered - paid by tenant

(both buildings have new electrical service panels)

Water/Sewer/Trash Paid by owner

UTILITIES

Laundry One laundry facility with two washers and two dryers (leased)

Storage Four storage spaces

MISCELLANEOUS


COMMUNITY FEATURES

Community and Unit Features

UNIT FEATURES

Living Room/Bedroom/Hallway

• Tile flooring in entry/living room/hallway

• Laminate flooring in bedrooms

• Ceiling fans in most bedrooms

• Extra entry closet and pantry (two bed units only)

• Venetian blinds

• Doorbell entry

Bathroom

• Tile surround shower/tub

• Tile flooring

• Gated community with controlled access

• Security cameras

• Laundry room with two washers & dryers (Leased via WASH)

• Leasing office

• Maintenance room

• Four storage spaces

Kitchen

• Granite countertops

• Stainless steel sink

• Electric four-burner stove/oven

• Hood-vent

• Tile flooring in kitchen

• Laminate flooring in dining area

• Solid wood cabinetry


Interior Features

CUSHMAN & WAKEFIELD | 1 1708-722 N Sutter Street, Stockton, CA

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Ceres

Turlock

Merced

Folsom

Livermore

Lodi

Manteca

MilpitasMountain View

Napa

Novato

Pacifica

Palo Alto

Petaluma

Pittsburg

Pleasanton

RanchoCordova

Alameda

Redwood City

Rohnert Park

San Bruno

San Leandro

San Mateo

San Rafael

San Ramon

Brentwood

Carmichael

South SanFrancisco

Tracy

Union City

Vacaville

Davis

Walnut Creek

Woodland

Modesto

Antioch

Fairfield

Fremont

Hayward

Richmond

Roseville

SantaClara

Santa Rosa

Berkeley

Stockton

Sunnyvale

Concord

Vallejo

Daly City

Elk Grove

OAKLAND

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SAN FRANCISCO

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STOCKTON

University ofthe Pacific

StocktonArena

St. Joseph’sMedical Center

BannerIsland

Ballpark708-722 N Sutter St

N

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Location Overview

Stockton is the county seat of San Joaquin County in the Central Valley of the U.S. state of California. The city is located on the San Joaquin River in the northern San Joaquin Valley and has a population of 312,697 according to the California Department of Finance for 2019. Stockton is the 13th largest city in California and the 62nd largest city in the United States.

Stockton is situated amidst the farmland of California’s San Joaquin Valley, a subregion of the Central Valley. In and around Stockton are thousands of miles of waterways, which make up the California Delta.

Built during California’s Gold Rush, Stockton’s seaport serves as a gateway to the Central Valley and beyond. Stockton and Sacramento are California’s only inland sea ports.

Interstate 5 and State Route 99, inland California’s major north-south highways, pass through the city. State Route 4 and the San Joaquin River connect the city with the San Francisco Bay Area to its west, creating the Stockton Deepwater Shipping Channel.

Historically an agricultural community, Stockton’s economy has since diversified into other industries, which include telecommunications and manufacturing.

Stockton Arena

• Less than a mile from subject property

• Indoor arena with seating capacity of 12,000

• Home of Stockton Kings – NBA G League

• Home of Stockton Heat – American Hockey League

Banner Island Ballpark


• Baseball stadium located on the Stockton Waterfront

• Seating capacity of 5,200

• Home field of Stockton Ports, a minor league affiliate of the Oakland A’s

St Joseph’s Medical Center


• Part of the Dignity Health network and operates as a hospital

• Offers many services including behavioral health services, cancer and surgical services.

• Employing 2,366 staff

Stanislaus State Stockton Campus


• Located in University Park, a 102 acre site in Stockton’s historic Magnolia District

• Only public higher education institution beyond community college in Stockton

MAJOR AMENITIES


STOCKTON

SUTT

ER ST

PARK ST

MARKET ST

HARDING WAY

OAK ST

FREMONT ST

CALIF

ORNIA

STEL

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StocktonArena

Stanislaus StateStockton Campus

BannerIsland

Ballpark

1 MILE 3 MILE 5 MILE

2019 Total Population 20,200 153,389 293,483

2019 Average Household Income $43,083 $53,727 $66,129

2019 Median Household Income $24,786 $38,072 $45,749

Owner Occupied Housing Units 1,543 19,737 44,616

Renter Occupied Housing Units 6,085 26,930 45,144

2019 Average Household Size 2.55 3.19 3.20

2019 Median Age 33.5 30.5 31.7

AREA DEMOGRAPHICS

708-722 N Sutter St


Rent Comparables

ONE BEDROOM TWO BEDROOM

PropertyYear Built

# of Units Unit Type Sq.Ft.

AskingRent Rent/Sq.Ft.

843 N Yosemite StStockton, CA 1971 16 1 Bed/1 Bath 515 $995 $1.93

830 N Van Buren StStockton, CA 1907 4 1 Bed/1 Bath 870 $995 $1.14

405 N Stanislaus StStockton, CA 1965 8 1 Bed/1 Bath 500 $995 $1.99

415 E Flora StStockton, CA 1978 12 1 Bed/1 Bath 525 $910 $1.73

708 N Sutter StStockton, CA 1965 18 1 Bed/1 Bath 576 $900 $1.56

725 N San Joaquin StStockton, CA 1976 8 1 Bed/1 Bath 650 $850 $1.31

625 N Commerce StStockton, CA 1961 15 1 Bed/1 Bath 565 $850 $1.50

Averages 567 $926 $1.63*Averages do not include subject property

PropertyYear Built



725 N San Joaquin StStockton, CA 1976 1 2 Bed/1 Bath 650 $1,050 $1.62

708 N Sutter StStockton, CA 1965 6 2 Bed/1 Bath 825 $1,050 $1.27415 E Flora StStockton, CA 1978 1 2 Bed/1 Bath 700 $995 $1.42

Averages 675 $1,023 $1.51*Averages do not include subject property

One Bedroom

Two Bedroom

Imperial708 N Sutter StStockton, CA

Rent Comparables

Page 4 of 7

(do not include subject property)

PropertyYear Built



843 N Yosemite StStockton, CA 1971 16 1 Bed/1 Bath 515 $995 $1.93

830 N Van Buren StStockton, CA 1907 4 1 Bed/1 Bath 870 $995 $1.14

405 N Stanislaus StStockton, CA 1965 8 1 Bed/1 Bath 500 $995 $1.99

415 E Flora StStockton, CA 1978 12 1 Bed/1 Bath 525 $910 $1.73

708 N Sutter StStockton, CA 1965 18 1 Bed/1 Bath 576 $900 $1.56

725 N San Joaquin StStockton, CA 1976 8 1 Bed/1 Bath 650 $850 $1.31

625 N Commerce StStockton, CA 1961 15 1 Bed/1 Bath 565 $850 $1.50

Averages 567 $926 $1.63*Averages do not include subject property

PropertyYear Built



725 N San Joaquin StStockton, CA 1976 1 2 Bed/1 Bath 650 $1,050 $1.62

708 N Sutter StStockton, CA 1965 6 2 Bed/1 Bath 825 $1,050 $1.27415 E Flora StStockton, CA 1978 1 2 Bed/1 Bath 700 $995 $1.42

Averages 675 $1,023 $1.51*Averages do not include subject property

One Bedroom

Two Bedroom


Rent Comparables

Page 4 of 7

(do not include subject property)


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Monte Diablo Av

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N Sutter St

S Fresno

Ave

E Worth St

S Ventura St

Grange Ave

W Acacia St

S Los Angeles Ave

W Fremont St

Hiawatha Ave

W Scotts Ave

Roselawn Av

e

S Comm

erce St

Lucerne Ave

Tuxedo Ave

S

E Sonora St

W Harding Way

E ScottsAve

Bedford Rd

W Mariposa

Ave

E Poplar St

E Washington St

E Flora St

SMa d ison St

School Ave

Channel St

E Wyandotte

St

NHun ter St

N Orange St

S Lincoln St

Cemetery Ln

N Aurora St

N Stanislaus St

N Grant St

S Pilgrim St

S Union St

Pinchot St

N Argonaut St

Bradford St

E Poplar St

Manchester Ave

N San Jose St

All stonW

ay

N Harrison St

E Roosevelt St

Harbor St

Channel St

E Fremont St

W Walnut St

W Monterey

Ave

Elmwood Av

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W Church St

S San Joaquin St

W Elm St

S Sutter StN Am

erican St

S California St

Middlefield

Ave

E Church St

Buena Vista Ave

E Magnolia St

S Stanislaus St

N Monroe St

W Willow St

NM

adiso nSt

N Pilgrim St

S Aurora St

Oxford Way

W Willow St

W Vine St

Tuxedo Ave

S

E Main St

N Lincoln St

N Baker St

N Sutter St

E Hazelton Ave

E Market St

N Hunter St

E Lafayette St

Bristol Ave

NEdison

St

W Acacia St

N Union StW Magnolia St

W Rose St

N San Joaquin St

W Fremont St

W Washington St

NCom

me

r

ceSt

W Weber Ave

E Miner Ave

W Poplar St

N Sierra Nevada St

W Flora St

STOCKTON5

708-722 N Sutter St

625 N Commerce St

405 N Stanislaus St

725 N San Joaquin St

415 E Flora St

830 N Van Buren St843 N Yosemite St

N

RENT COMPARABLES MAP

843 N Yosemite St

1830 N Van Buren St

2

725 N San Joaquin St5

415 E Flora St4

625 N Commerce St

6

405 N Stanislaus St

3

12

3

4

5

6


Sales Comparables

Property Year Built# of

Units Sales PricePrice / Unit

Price / Room

Price / Sq.Ft. GRM CAP

Expense / Sq.Ft. Sale Date

Marina Courtyard1025 N Madison St

Stockton, CA

1964 56 $5,200,000 $92,857 $26,131 $115.94 9.0 6.5% $5.39 2/14/2020

Claremont Manor347 E Flora StStockton, CA

1972 52 $5,600,000 $107,692 $35,443 $177.22 10.4 5.4% $6.83 12/9/2019

1142 N Sutter StStockton, CA

1971 16 $2,000,000 $125,000 $41,667 $230.95 11.3 5.1% $7.87 9/6/2019

741 N Lincoln StStockton, CA

1973 16 $1,650,000 $103,125 $34,375 $201.32 9.0 6.7% $7.91 8/28/2019

227 W Poplar StStockton, CA

1974 12 $1,100,000 $91,667 $30,555 $176.96 5/10/2019

Averages: $102,303 $33,634 $180.48 9.9 5.9% $7.00Imperial 1965 26 $2,250,000 $86,538 $27,439 $137.46 7.7 6.9% $6.83 PRO FORMA

$2,250,000 $86,538 $27,439 $137.46 8.3 6.1% $6.78 IN PLACE RENTS

Sales Comparables

708 N Sutter StImperial

Stockton, CA

Page 5 of 7


Bedfor

d Rd

Channe

l StN Stockton St

N American St

E Fremo

nt St

W Frem

ont St

N Baker St

E Miner

Ave

N Harrison St

E Linds

ay St

E Poplar

St

E Flora

St

N Edison St

W Willow

St

W Vine

St

W Rose

St

W Magn

olia St

E Magn

oliaSt

W Flora

St

W Acac

ia St

N Monroe St

N Madison St

W Popl

ar St

N Sutter St

N Lincoln St

NCommerce St

N Hunter St

N San Joaquin St

E WEBE

R AVE

E

W OAK

ST

W HARD

ING WA

Y

W PARK

ST

N CALIFORNIA ST

CENTER ST

EL DORADO ST

Ca l Sta teUniv -Sta nislaus-Sto ck to n

STOCKTON

708-722 N Sutter St

227 W Poplar St

Claremont Manor347 E Flora St

1142 N Sutter St

741 N Lincoln St

Marina Courtyard1025 N Madison St

227 W Poplar St

Marina Courtyard, 1025 N Madison St Claremont Manor, 347 E Flora St

741 N Lincoln St1142 N Sutter St

1

2

3

4

5

N

SALES COMPARABLES MAP

1 2

3 4

5


Financial Analysis

ANNUAL PROPERTY OPERATING DATA

Type Units % of Units Sq.Ft.* Rent Sq.Ft. Rent Sq. Ft.Studio 2 8% 525 $750 $1.43 $689 $1.311Bed/1Bath 18 69% 576 $900 $1.56 $842 $1.462Bed/1Bath 6 23% 825 $1,050 $1.27 $958 $1.16Total 26 100% 16,368 $24,000 $22,277Averages 630 $923 $1.47 $857 $1.36

* Square footage is an estimation and to be verified by Buyer.

Income Gross Potential Rent Other IncomeTotal Rental Income Less Vacancy - 5% Less Non Revenue Units (Onsite Mgr Unit)Effective Gross Income*Less Estimated ExpensesNet Operating IncomeLess Debt ServiceCash Flow

Per Unit / Per Year

Total Yearly

Per Unit / Per Year Total Yearly

*Estimated Expenses Property Taxes $1,020 ($26,532) $1,020 ($26,532)

Direct Levies 15 (378) 15 (378) Insurance 200 (5,200) 200 (5,200) Utilities 1,104 (28,704) 1,104 (28,704) Management Fee @ 4.5% of EGI 463 (12,026) 429 (11,142) Payroll 290 (7,550) 290 (7,550) Administrative / Office 120 (3,120) 120 (3,120) Advertising / Promotions 46 (1,200) 46 (1,200) Make Ready/Turnover 298 (7,735) 298 (7,735) Repairs/Maintenance 385 (10,010) 385 (10,010) Service Contracts 162 (4,200) 162 (4,200) Replacement Reserves 200 (5,200) 200 (5,200)Total Estimated Expenses $4,302 ($111,855) $4,268 ($110,971)

$6.83 $6.7842% 45%

Expense Per Foot:Expense Percentage Ratio:

$267,3244,680

$272,004(13,600)(10,800)

(69,344)$67,290

$155,391

$86,047

(14,634)

(69,344)

$267,246(10,800)

$288,0004,680

Stabilized November 2020 Avg. Rent Roll Rents & Pro Forma

Expenses

$136,633

$247,604(110,971)

$292,680

(111,855)

November 2020 Asking Rents

Stabilized November 2020 Asking Rents & Pro Forma

Expenses

November 2020Avg. Rent Roll Rents

IN PLACE RENTS

Annual Property Operating Data

PRO FORMA


Financial Analysis

Unit Mix Monthly Income

Page 3 of 7

Financing: the APOD example on the right reflects debt service based on 65% LTV at a 2.50% interest rate on a five-year fixed rate loan using a 30-year amortization schedule.

UNIT MIX MONTHLY INCOME




Per Unit / Per Year

Total Yearly




$6.83 $6.7842% 45%


$267,3244,680

$272,004(13,600)(10,800)

(69,344)$67,290

$155,391

$86,047

(14,634)

(69,344)

$267,246(10,800)

$288,0004,680


Expenses

$136,633

$247,604(110,971)

$292,680

(111,855)



Expenses


IN PLACE RENTS


PRO FORMA


Financial Analysis


Page 3 of 7

Square footage is an estimation and to be verified by Buyer.




Per Unit / Per Year

Total Yearly




$6.83 $6.7842% 45%


$267,3244,680

$272,004(13,600)(10,800)

(69,344)$67,290

$155,391

$86,047

(14,634)

(69,344)

$267,246(10,800)

$288,0004,680


Expenses

$136,633

$247,604(110,971)

$292,680

(111,855)



Expenses


IN PLACE RENTS


PRO FORMA


Financial Analysis


Page 3 of 7




Per Unit / Per Year

Total Yearly




$6.83 $6.7842% 45%


$267,3244,680

$272,004(13,600)(10,800)

(69,344)$67,290

$155,391

$86,047

(14,634)

(69,344)

$267,246(10,800)

$288,0004,680


Expenses

$136,633

$247,604(110,971)

$292,680

(111,855)



Expenses


IN PLACE RENTS


PRO FORMA


Financial Analysis


Page 3 of 7

©2020 Cushman & Wakefield. All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to be reliable but has not been verified. No warranty or representation, express or implied, is made as to the condition of the property (or properties) referenced herein or as to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). any projections, opinions or estimates are subject to uncertainty and do not signify current or future property performance.

IMPERIAL APARTMENTS

FOR SALE

For more information, please contact Sacramento Multifamily Advisory Services below.

Michael Mathios+1 916 288 [email protected]. #01252862

Sutter McLoughlin+1 916 288 [email protected]. #02086137

View Site Specific COVID-19 Prevention Plan
http://www.cushwakebayarea.com/covid/Site_Specific_COVID-19_Prevention_Plan.pdf

for sale imperial apartments · 2020. 1. 1. · venues comprising of the stockton arena and banner...

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