memorandum example - 1
DESCRIPTION
Memorandum Example - 1TRANSCRIPT
Multi-Family Investments
Northern California’s Source for Apartment Brokerage Services
Caleb KhanMulti-Family [email protected] #01332934
520 Capitol Mall, 5th Floor Sacramento, California 95814
ph: 916-375-1500 fx: 916-376-8840
Cassidy Turley Northern Californiawww.ctbtapartments.com
Caleb KhanMulti-Family [email protected] #01332934
Northern California’s Source for Apartment Brokerage Serviceswww.ctbtapartments.com
Multi-Family Investments
OFFERING MEMORANDUM
Drake Drive Apartments1312-1322 Drake Drive, Davis, CA 95616
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Confidentiality & DisclaimerThe information contained in this marketing brochure (“Materials”) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving it from Cassidy Turley Northern California Real Estate (“Agent”). The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property (“Property”) for potential purchase.
The Materials have been prepared to provide unverified summary financial, physical, and market information to prospective buyers to enable them to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Property.
The information contained in the Materials has been obtained by Agent from sources believed to be reliable, however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent 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, or quality of the land and improvements; presence or absence of contaminating substances (PCB’s, asbestos, mold, etc.); Compliance with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant (tenant’s intentions regarding continued occupancy, payment of rent, etc). Any prospective buyer must independently investigate and verify all of the information set forth in the Materials. Any prospective buyer is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating and evaluating the Property.
By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
All Property showings are by appointment only and must be coordinated through the Agent.
Table of Contents
Section I: Asset OverviewProperty Description ................................................................................................3Investment Highlights ..............................................................................................4Property Photographs ...............................................................................................5Floor Plans ..............................................................................................................6Property Overview ....................................................................................................7Operations Statement ..............................................................................................8
Section II: Location MapsAerial View ..............................................................................................................9Parcel Map ...........................................................................................................10Local Map .............................................................................................................10Area Retail Trade Map ............................................................................................11Demographics .......................................................................................................12
Section III: Rent SurveyRent Comparable Properties ..............................................................................13-14Rent Comparable Properties Summary .....................................................................15Rent Comparable Map & Legend .............................................................................16
Section IV: Sales SurveySales Comparable Properties ..............................................................................17-19Sales Comparable Properties Summary ....................................................................20Sales Comparable Map & Legend ............................................................................21
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Drake Drive is a well located property in the north west submarket of Davis, California. The property consists of two four-plexes and has an attractive mix of all two-bedroom one-bath units. Each building has its own parcel number and shares a single parking lot that provides ample space for the tenants.
The property is conveniently located in close proximity to the major arterial, West Covell Blvd, which provides easy access to Downtown Davis and Highway 113. In addition, Drake Drive is approximately 2 miles from the University of California, Davis and is an easy walk to many amenities, such as grocery shopping and eating.
Submarket DescriptionDavis is situated in Yolo County, 11 miles west of Sacramento, 385 miles north of Los Angeles, and 72 miles northeast of San Francisco. Yolo County has been one of the fastest growing counties based on percentage of change. Davis has been characterized by robust economic and population growth and is home to the University of California, Davis. The work force is engaged in a broad spectrum of employment with primary representation in professional, technical, and government occupations. This distribution is due mainly to the City’s close relationship with the University of California campus and the professional and technical environment the University creates.
Property Description
For more information, please contact:
Jim Gray, CCIM916-617-4255 [email protected] #00775072
Nahz Anvary, CCIM916-617-4257 [email protected] #01468557
CALIFORNIA
113
INTERSTATE
8 0CALIFORNIA
INTERSTATE
8 0CALIFORNIA
CALIFORNIA
113
Davis, California
UNIVERSITY
WEST DAVIS
CORE AREA/DOWNTOWN
CENTRAL DAVIS
SOUTH DAVIS
EAST DAVIS
WILDHORSE
NORTH DAVIS
El Macero
WEST CAMPUS
1312-1322 Drake Drive
N
Combined Asset Overview
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Investment Highlights � Conveniently located near the Marketplace Shopping Center
� Attractive unit mix of all 2 bedroom, 1 bath
� Off street parking
� Ten minute bike ride to center of UC Davis Main Campus
Unit Features � Central heat and air
� Dishwashers
� Patio/Balconies
Address 1312-1322 Drake Drive Davis, CA 95616
Price $1,190,000
Down Payment $357,000
Units 8
Price/Unit $148,750
Rentable Sq Ft 6,000
Price/Sq Ft $198
Current Cap Rate 4.19%
Market Cap Rate 4.95%
Current GRM 12.00
Market GRM 11.26
Year Built N/A
Average Unit Size 750
Land Area .40 Acres
Parking 8/1.00 space per unit
Property Overview
Combined Asset Overview
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Property Overview
Type # % Est. AVG Sq FtAVG
In Place Rent $/Sq FtAVG
Market Rent $/Sq Ft
2x1 8 100% 750 $1,022 $1.36 $1,095 $1.46
Rent Roll
Income/Expense
Operations Summary Current Market
Scheduled Gross Rent $98,112 $105,120
Vacancy ($4,906) ($3,154)
Effective Gross Rent $93,206 $101,966
Other Income $580 $580
TOTAL INCOME $93,786 $102,546
OPERATING EXPENSES $22,747 $22,043
NON-OPERATING EXPENSES $20,420 $20,420
Capital Reserves $2,000 $2,000
TOTAL EXPENSES $45,167 $44,463
NET OPERATING INCOME $48,619 $58,083
Mechanical Systems
HVAC Central Heat & Air
Hot Water 1 - Water Heater per Building
Details
Property Address 1312-1322 Drake DriveCity, CA Davis, CA
County Davis
APN034-012-010-000/034-012-
009-000
Submarket North/West Davis
County Use Quadplex
Attributes
Rentable Units 8
Rentable Sq Ft 6,000
Average Unit Size 750
Land Area 0.40 Acres
Parking 8/1.00 space/unit
Year Built N/A
Construction
Foundation Slab
Exterior Walls Stucco
Roof Flat
Patio/Balcony Select Units
Laundry Facilities Yes
Pool/Spa No
Combined Asset Overview
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Operations Statement - Combined
Operations Pro Forma Current Pro Forma Market
Schedule Gross Rent $98,112 $105,120
Vacancy ($4,906) ($3,154)
Effective Gross Rent $93,206 $101,966
Other Income $580 $580
Total Income $93,786 $102,546 Expenses ANNUAL ANNUAL
Administrative $300 $300
Contract Services $1,200 $1,200
Marketing & Promotion $320 $320
Management Fee $6,857 $6,153
Repairs & Mainteance $4,800 $4,800
Utilities $9,270 $9,270
Operating Expenses $22,747 $22,043Real Estate Taxes $11,900 $11,900
Special Assessments $3,520 $3,520
Insurance $5,000 $5,000
Non-Operating Expenses $20,420 $20,420 Capital Reserves $2,000 $2,000
Total Expenses $45,167 $44,463
Net Operating Income $48,619 $58,083 Debt Service $44,760
Net Cash Flow $13,323
Principal Reduction $15,854
Total Return $29,177
Combined Asset Overview
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Property Overview
Type # % Est. AVG Sq FtAVG
In Place Rent $/Sq FtAVG
Market Rent $/Sq Ft
2x1 4 100 750 $1,017 $1.36 $1,095 $1.46
Rent Roll
Income/Expense
Operations Summary Current Market
Scheduled Gross Rent $48,816 $52,560
Vacancy ($2,441) ($1,577)
Effective Gross Rent $46,375 $50,983
Other Income $290 $290
TOTAL INCOME $46,665 $51,273
OPERATING EXPENSES $11,741 $11,444
NON-OPERATING EXPENSES $10,210 $10,210
Capital Reserves $1,000 $1,000
TOTAL EXPENSES $22,951 $22,654
NET OPERATING INCOME $23,714 $28,619
Mechanical Systems
HVAC Central Heat & Air
Hot Water 1 - Water Heaters
Details
Property Address 1312 Drake DriveCity, CA Davis, CA
County Davis
APN 034-012-010-000
Submarket North/West Davis
County Use Quadplex
Attributes
Rentable Units 4
Rentable Sq Ft 3,000
Average Unit Size 750
Land Area 0.19 Acres
Parking 4/1.00 space/unit
Year Built N/A
Construction
Foundation Slab
Exterior Walls Stucco
Roof Flat
Patio/Balcony Select Units
Laundry Facilities Yes
Pool/Spa No
1312 Drake Drive
Rent Comparables Sale Comparables1312 Drake Drive Overview
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Operations Statement
Operations Pro Forma Current Pro Forma Market
Schedule Gross Rent $48,816 $52,560
Vacancy ($2,441) ($1,577)
Effective Gross Rent $46,375 $50,983
Other Income $290 $290
Total Income $46,665 $51,273 Expenses ANNUAL ANNUAL
Administrative $150 $150
Contract Services $600 $600
Marketing & Promotion $160 $160
Management Fee $3,373 $3,076
Repairs & Mainteance $2,400 $2,400
Utilities $5,058 $5,058
Operating Expenses $11,741 $11,444 Real Estate Taxes $5,950 $5,950
Special Assessments $1,760 $1,760
Insurance $2,500 $2,500
Non-Operating Expenses $10,210 $10,210 Reserves $1,000 $1,000
Total Expenses $22,951 $22,654
Net Operating Income $23,714 $28,619 Debt Service ($23,976)
Net Cash Flow $4,643
Principal Reduction $8,493
Total Return $13,136
1312 Drake Drive
1312 Drake Drive Overview
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Property Overview
Type # % Est. AVG Sq FtAVG
In Place Rent $/Sq FtAVG
Market Rent $/Sq Ft2x1 4 100% 750 $1,027 $1.37 $1,095 $1.46
Rent Roll
Income/Expense
Operations Summary Current Market
Scheduled Gross Rent $49,296 $52,560
Vacancy ($2,465) ($1,577)
Effective Gross Rent $46,831 $50,983
Other Income $290 $290
TOTAL INCOME $47,121 $51,273
OPERATING EXPENSES $11,006 $10,598
NON-OPERATING EXPENSES $10,210 $10,210
Capital Reserves $1,000 $1,000
TOTAL EXPENSES $22,216 $21,808
NET OPERATING INCOME $24,905 $29,465
Mechanical Systems
HVAC Central Heat & Air
Hot Water 1 - Water Heaters
Details
Property Address 1322 Drake DriveCity, CA Davis, CA
County Davis
APN 034-012-009-000
Submarket North/West Davis
County Use Quadplex
Attributes
Rentable Units 4
Rentable Sq Ft 3,000
Average Unit Size 750
Land Area 0.20 Acres
Parking 4/1.00 space/unit
Year Built N/A
Construction
Foundation Slab
Exterior Walls Stucco
Roof Flat
Patio/Balcony Select Units
Laundry Facilities Yes
Pool/Spa No
1322 Drake Drive
1322 Drake Drive Overview
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Operations Statement - Combined
Operations Pro Forma Current Pro Forma Market
Schedule Gross Rent $49,296 $52,560
Vacancy ($2,465) ($1,577)
Effective Gross Rent $46,831 $50,983
Other Income $290 $290
Total Income $47,121 $51,273 Expenses ANNUAL ANNUAL
Administrative $150 $150
Contract Services $600 $600
Marketing & Promotion $160 $160
Management Fee $3,484 $3,076
Repairs & Mainteance $2,400 $2,400
Utilities $4,212 $4,212
Operating Expenses $11,006 $10,598 Real Estate Taxes $5,950 $5,950
Special Assessments $1,760 $1,760
Insurance $2,500 $2,500
Non-Operating Expenses $10,210 $10,210 Reserves $1,000 $1,000
Total Expenses $22,216 $21,808
Net Operating Income $24,905 $29,465 Debt Service ($23,976)
Net Cash Flow $5,489
Principal Reduction $8,493
Total Return $13,982
1322 Drake Drive
1322 Drake Drive Overview
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Bird’s Eye Map
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DRAKE DRIVE
SY
CA
MO
RE
LA
NE
1312-1322 Drake Drive
Location Maps
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Parcel MapParcel Map
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Local Map
NN
W COVELL BLVD
SY
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MO
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LA
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1312-1322 Drake Drive
CALIFORNIA
113
DRAKE DRIVE 1312-1322 Drake Drive
Location Maps
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Area Map
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Location Maps
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Sales Comparable Properties
Subject
1312-1322 Drake Drive Price $1,190,000 Cap Rate (Current) 4.19%
Davis, CA Units 8 Cap Rate (Market) 4.95%
Drake Drive Apartments $/Unit $148,750 GRM (Current) 12.00
Sq Ft 6,000 GRM (Market) 11.26
$/Sq Ft $198.33
Unit Mix 8-2x1
Comparable #1
1351 Drake Drive Price $640,000 Cap Rate (Current) --
Davis, CA 95616 Units 4 GRM (Current) --
$/Unit $160,000 COE 9/2012
Sq Ft 3700
$/Sq Ft $172.97
Unit Mix 2-2x1, 2-3x1.5
Comparable #2
1331 Drake Drive Price $649,000 Cap Rate (Current) --
Davis, CA 95616 Units 4 GRM (Current) --
$/Unit $162,250 COE 4/2012
Sq Ft 5104
$/Sq Ft $127.16
Unit Mix 2-2x1, 2-3x2
Sale Comparables
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Sales Comparable Properties
Comparable #3
1342 Drake Drive Price $632,500 Cap Rate (Current) --
Davis, CA 95616 Units 4 GRM (Current) --
$/Unit $158,125 COE 11/2011
Sq Ft 5632
$/Sq Ft $112.30
Unit Mix 2 Studios, 2-3x1.5
Sale Comparables
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Sales Comparable Properties Summary
Properties Price Units $/Unit Sq Ft $/Sq Ft Cap Rate GRM COE
1312-1322 Drake Drive $1,190,000 8 $148,750 6,000 $198.33 4.95% 11.26
Davis, CA
1. 1351 Drake Drive $640,000 4 $160,000 3,700 $172.97 9/2012
Davis, CA 95616
2. 1331 Drake Drive $649,000 4 $162,250 5,104 $127.16 4/2012
Davis, CA 95616
3. 1342 Drake Drive $632,500 4 $158,125 5,632 $112.30 11/2011
Davis, CA 95616
Sale Comparables
Multi-Family Investments
1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview
Sales Comparable Map & Legend
Properties
1312-1322 Drake Drive
Davis, CA
1. 1351 Drake Drive
Davis, CA 95616
2. 1331 Drake Drive
Davis, CA 956163. 1342 Drake Drive
Davis, CA 95616
1
3
2
CALIFORNIA
113
1312-1322 Drake Drive
Sale Comparables