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MONARCH COURT APARTMENTS
2230 Alice Street
Santa Cruz, CA
Offering Memorandum
EXT1
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and
should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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 Brochure has been obtained from sources we believe to be reliable;
however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters
and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of
the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name
is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or
commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
MONARCH COURT APARTMENTS
Santa Cruz, CA
ACT ID ZAB0010159
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Property Photos
Aerial Photos, Regional and Local Maps
Discover Santa Cruz
FINANCIAL ANALYSIS 02Rent Roll Summary
Operating Statement
Pricing Detail
MARKET COMPARABLES 03Sales Comparables
Rent Comparables
MARKET OVERVIEW 04Demographic Analysis
MONARCH COURT APARTMENTS
3
Investment Overview
2230 ALICE ST
PROPERTY SUMMARY
OFFERING SUMMARY
THE OFFERING
Price $2,400,000
Property Address 2230 Alice St, Santa Cruz, CA
Assessors Parcel Number 028-072-01
Zoning R4-M
SITE DESCRIPTION
Number of Units 6
Number of Buildings 3
Number of Stories 1 & 2 Stories
Year Built/Renovated 1955 / 2019
Rentable Square Feet 4,400
Lot Size 0.44 acre(s)
Type of Ownership Fee Simple
Landscaping New Zero-Scape
Topography Low-Hillside
CONSTRUCTION
Foundation Concrete Slab
Framing Wood Frame
Exterior Stucco
Parking Surface Freshly Slurried and Striped Asphalt
Roof TPO and Composition Shingle
5
PROPOSED FINANCING
First Trust Deed
Loan Amount $1,375,200
Loan Type Proposed New
Interest Rate 3.6%
Amortization 30 Years
Loan Term 10 Years
Loan to Value 57%
Debt Coverage Ratio 1.38
OFFERING SUMMARYINVESTMENT OVERVIEW
Nestled in the Live Oak neighborhood of Santa Cruz, between the Santa Cruz Harbor and Pleasure Point, near the Corcoran Lagoon and KSCO Radio. Monarch Court sits on a spacious corner lot just 3 blocks from Corcoran and Moe’s beaches, 3 blocks from Felt Street Park (with a large playground, community gardens, picnic/bbq area, and skateboard park), and 2 blocks from both Cypress High School and Del Mar Elementary. Within 5 miles is Cabrillo Community College offering associate degrees and certificates in more than 70 fields of study to its 15,000 students. Monarch Court is located in unincorporated Santa Cruz County, and therefore is not subject to the more restrictive local rent control, providing investors the more flexible California limits of 5% plus CPI index (3.34% currently / 8.4% annually).
Monarch Court includes (1) studio, and (5) 2 bedroom / 1 bathroom apartments that offer residents single story living in individual buildings with private entrances, large green spaces, reserved parking, spacious living and natural light. The apartment homes have been strategically designed with limited shared walls, offering residents the feel of private spacious, independent living areas and backyards for outdoor living and entertaining.
Extensive interior renovations to 3 units include new vinyl wood plank flooring, new shaker style kitchen cabinets, quartz countertops, stainless steel appliance package, new interior lighting, upgraded fixtures and finishes, new window coverings, and new custom interior paint.
Recent exterior renovations include eco-friendly landscaping with artificial grass, succulents and LED lighting. The welcoming curb appeal is enhanced by a new fence and freshly slurried asphalt driveway. Community upgrades include new secured mailboxes and a redesigned laundry care center with SMART machines.
Santa Cruz offers a unique combination peaceful serenity and the allure of a beach town, with the convenience and easy accessibility to businesses and schools. This asset is centrally located to many Santa Cruz destinations, including Seabright State Beach, Downtown Santa Cruz, Capitola, Santa Cruz Beach Boardwalk, Rio Del Mar and the Santa Cruz Harbor with hundreds of shopping, dining and entertainment options. Santa Cruz Harbor is home to Stagnaros Charter Boats, the ever-popular Chardonnay Sailing Charters with its pair of Santa Cruz 70 sailing yachts and the iconic Crow's Nest. Santa Cruz dining destinations for more than 50 years, The Crows Nest is perched where the harbor meets the sea and offers award-winning cuisine, spirits and live music, coupled with unbeatable, breathtaking panoramic views of Santa Cruz Harbor, lighthouse and Wharf; and Shadowbrook, located along the Soquel Creek and steeped in history.
Exciting area improvements include the Santa Cruz Rail & Trail, a continuous off-street route to many popular locations between Watsonville and Davenport. The already-completed transformation to the San Lorenzo River Bridge replacing the current 4-foot wide walkway with a 10-foot wide multi-use trail, provides miles of direct bike/pedestrian access between the Santa Cruz Beach Boardwalk and Santa Cruz neighborhoods.
INVESTMENT HIGHLIGHTS
▪ 3 blocks from the ocean
▪ Immediate upside in rental income
▪ Appealing unit mix consisting of (5) 2br/1ba and (1) Studio
▪ Large corner lot .44 acre
▪ Tucked-under parking for on-site tenants
▪ On-Site laundry facility providing additional income
MONARCH COURT APARTMENTS
#
EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Palo Alto Med Fndtion STA Cruz 2,000
Dignity Health 1,512
Chancellors Office 1,500
Santa Cruz County of 1,041
CABRILLO COLLEGE BOOKSTORE 980
Sutter Health 776
Kwala Tzu Inc 700
Human Services Department 516
Human Resources 500
Smartrevenue 492
Safeway 455
University Cal Santa Cruz 437
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2018 Estimate Pop 18,200 81,051 126,209
2010 Census Pop 17,538 77,791 120,220
2018 Estimate HH 7,850 34,371 50,329
2010 Census HH 7,466 32,654 47,786
Median HH Income $60,064 $63,858 $74,657
Per Capita Income $40,185 $42,523 $44,599
Average HH Income $92,579 $98,715 $109,340
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UNIT MIX
NUMBEROF UNITS
UNIT TYPEAPPROX.SQUARE FEET
1 Studio 400
5 2 Bedroom 600
6 Total 3,400
VITAL DATA
Price $2,400,000 CURRENT YEAR 1
Down Payment 42.7% / $1,024,800 CAP Rate 4.3% 4.59%
Loan Amount $1,375,200 GRM 15.06 14.34
Loan Type Proposed NewNet Operating Income
$103,168 $110,221
Interest Rate / Amortization 3.6% / 30 YearsNet Cash Flow After Debt Service
2.75% / $28,140 3.43% / $35,193
Price/Unit $400,000 Total Return 5.29% / $54,164 6.07% / $62,169
Price/SF $705.88
Number of Units 6
Rentable Square Feet 3,400
Year Built / Renovated 1955 / 2020
Lot Size 0.44 acre(s)
DETAILED CAPITAL IMPROVEMENTSOFFERING SUMMARY
Exterior
Replaced studio roof $4,500
Electrical: Panel upgrade 2234 A/B/C, rewired exterior house lights, carports, laundry room and upgraded all exterior lights to LED
$5,000
Asphalt repairs, slurry and seal coat $12,650
Wood repairs – new fence on Corcoran Avenue, siding repairs $12,550
Zero-Scape Landscape upgrades – tree trimming, drip system in front yard, succulents and artificial lawn
$12,500
Replaced both decks for unit 2234A. Replaced railings for entire property. $17,025
Laundry room upgrades - WASH vendor installed new SMART machines $1,000
New exterior paint $13,000
Replaced 2 electric hot water heaters with new gas water heaters: Unit 2236, and shared heater for units 2234 A/B
$4,000
Additional property maintenance $13,200
TOTAL CAPITAL IMPROVEMENTS $108,105
Since 2019, Monarch Court Apartments have received the following upgrades:
Interior
Unit Renovation (3 of 6 units) $29,880
Unit 2234A: New kitchen cabinets, quartz countertops, new stainless appliances, plank flooring, LED lighting, hardware, window coverings
Unit 2234B: New cabinet doors, quartz countertops, new stainless appliances, plank flooring, LED lighting, hardware, window covering
Unit 2236: New cabinet doors, quartz countertops, new stainless appliances, plank flooring, LED lighting, hardware, window coverings
Residents of Monarch Court appreciate the best
of both worlds ~
The peaceful serenity and allure of a beach town,
while providing the convenience and easy
accessibility to business.
Located in a quiet residential pocket
Monarch Court2230 Alice Street
Santa Cruz, CA 95062
AERIAL PHOTO
2230 ALICE ST
10
2236
2234C2234B
2234A
2232
2230
2234A:2 new decks, new exterior railings, new gas hot water heater, full interior unit renovation
2234B:New gas hot water heater, full interior unit renovation
2234C:New roof
2236:New gas hot water heater, full interior unit renovation
2230 ALICE ST
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AERIAL PHOTO
Noah’s Ark Preschool & DaycareDel Mar Elementary School
Cypress High School
Monarch Court2230 Alice Street
Santa Cruz, CA 95062
Fell Street County
Park
AERIAL PHOTO
Santa Cruz Beach Boardwalk and Pier –
3 miles
Monarch Court2230 Alice Street
Santa Cruz, CA 95062
Corcoran LagoonMoe’s Beach
REGIONAL MAP
MONARCH COURT APARTMENTS
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LOCAL MAP
MONARCH COURT APARTMENTS
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Discover Santa Cruz
Discover Santa CruzMonarch Court is 3 block from the
ocean, and just minutes from the Santa Cruz Boardwalk and Wharf, Downtown Santa Cruz/Pacific Avenue Mall, and the
iconic Catalyst Nightclub.
Santa Cruz – Area Overview
Offering a surplus of lifestyle amenities and located just 25 miles from Silicon Valley’s thriving employment base, Sant Cruz represents a highly sought-after place for Bay Area residents to call home. The city’s diverse and growing local economy, vibrant downtown district, surplus of recreation options, and favorable climate offer residents a superior quality of life. Santa Cruz has consistently ranked as one of the top 10 happiest places to live in the U.S. by publications and polling sources such as National Geographic, Forbes, and Gallup.
Santa Cruz boasts an eclectic employment base with a healthy balance of technology, healthcare, professional and business services, government, education, and biotechnology industries. The active and emerging tech scene in Santa Cruz has attracted both startups and more established tech companies, as well as tech investors, co-working programs and events.
Located just over 2 miles from Monarch Court, UC Santa Cruz is the city’s largest employer. Total enrollment at UCSC has grown by 13.4 percent over the past five years, now totaling approximately 18,765 students. The student population us expected to continue to increase with another 10,000 students by 2040. This growth, combined with a lack of new housing inventory, will continue to suppress vacancies and support rent growth at rental communities throughout Santa Cruz.
TOP 20 EMPLOYERS BY NUMBER OF EMPLOYEES
# COMPANY CITY EMPLOYEES DISTANCE
1 Google Mountain View 23324 39
2 eBay San Jose 16200 36.4
3 Apple Park (HQ) Cupertino 16000 33.8
4 University of California – Santa Cruz Santa Cruz 8569 2.4
5 Applied Materials Santa Clara 8500 33.9
6 Intel Santa Clara 7801 37.2
7 Lockheed Martin Santa Cruz 5600 19.2
8 Santa Clara Valley Medical Center San Jose 4000 28.8
9 Agilent Technologies Santa Clara 3280 29.7
10 San Jose State University San Jose 3251 33
11 LinkedIn Mountain View 3177 37.4
12 Advanced Micro Devices Santa Clara 3100 33.8
13 Hitachi Vanrtara Santa Clara 3000 33
14 PayPal San Jose 3000 34.4
15 Western Digital San Jose 3000 35.1
16 Adobe Systems San Jose 2750 32.5
17 County of Santa Cruz Santa Cruz 2438 1.4
18 Ericsson Inc. Santa Clara 2200 34
19 Good Samaritan Hospital San Jose 1950 25.1
20 Netflix Los Gatos 1864 24.7
MAJOR REGIONAL EMPLOYERS – RANKED BY DISTANCE FROM ASSET
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of theinformation. References to square footage orage are approximate. Buyer mustverify the information and bears all risk for any inaccuracies.
# COMPANY CITY EMPLOYEES DISTANCE
1 Looker Santa Cruz 209 .9
2 Amazon Santa Cruz 100 1.0
3 County of Santa Cruz Santa Cruz 2438* 1.4
4 Poly (Formerly Plantronics)
Santa Cruz 529 2.0
5 University of California –Santa Cruz
Santa Cruz 8569 2.4
6 City of Santa Cruz Santa Cruz 1000 2.5
7 Dominican Hospital Santa Cruz 1500 3.8
8 Northrop Grumman Sunnyvale 1226* 5.8
9 Threshold Enterprises Scotts Valley
515 7.6
10 Cabrillo College Aptos 1500 8.1
11 Lockheed Martin Santa Cruz 5600 19.2
12 Netflix Los Gatos 1864 24.7
13 Good Samaritan Hospital San Jose 1950 25.1
14 Barracuda Networks Campbell 350 25.3
15 Xilinx Inc. San Jose 1000 25.8
16 SAAMA Technologies Campbell 274 27.2
17 Santa Clara Valley Medical Center
San Jose 4000 28.8
18 Agilent Technologies Santa Clara
3280 29.7
# COMPANY CITY EMPLOYEES
DISTANCE
19 Seagate Cupertino 750 31.1
20 Pricewaterhouse Coopers
San Jose 700 32.0
21 Santa Clara University Santa Clara 1200 32.0
22 Adobe Systems San Jose 2750 32.5
23 NVIDIA Santa Clara 850 32.8
24 San Jose State University
San Jose 3251 33.0
25 Hitachi Vanrtara Santa Clara 3000* 33.0
26 Atmel Corporation San Jose 1311 33.3
27 Apple Park (HQ) Cupertino 16000* 33.8
28 Advanced Micro Devices
Santa Clara 3100* 33.8
29 Applied Materials Santa Clara 8500* 33.9
30 Ericsson Inc. Santa Clara 2200 34.0
31 PayPal San Jose 3000 34.4
32 Western Digital San Jose 3000 35.1
33 eBay San Jose 16200* 36.4
34 Intel Santa Clara 7801* 37.2
35 LinkedIn Mountain View 3177 37.4
36 Google Mountain View 23324 39.0* Denotes employees at multiple metro locations in the immediate counties
124-206 1st Street ~ Santa Cruz124-206 1st Street ~ Santa Cruz
124-206 1st Street ~ Santa Cruz
Financial Analysis
FINANCIAL ANALYSIS
MONARCH COURT APARTMENTS
RENT ROLL SUMMARY
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FINANCIAL ANALYSIS
MONARCH COURT APARTMENTS
OPERATING STATEMENT
19
FINANCIAL ANALYSIS
MONARCH COURT APARTMENTS
PRICING DETAIL
20
Market Comparables
MONARCH COURT APARTMENTS
SALES COMPARABLES MAP
22
MONARCH COURT APARTMENTS
(SUBJECT)
708 Riverside Avenue
Pacific View Apartments
2651 Fresno Street
101 Douglas Drive
131 Alhambra
SALES COMPARABLES
ON MARKET COMPARABLES
1
2
3
4
5
PROPERTY NAMEMONARCH COURT APARTMENTS
SALES COMPARABLES
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SALES COMPARABLES
Avg. $479.38
Avg. $729.59
$0.00
$80.00
$160.00
$240.00
$320.00
$400.00
$480.00
$560.00
$640.00
$720.00
$800.00
MonarchCourt
Apartments
708RiversideAvenue
PacificView
Apartments
2651 FresnoStreet
101 DouglasDrive
131Alhambra
Average Price Per Square Foot
Avg. $347,625
Avg. $457,143
$0
$60,000
$120,000
$180,000
$240,000
$300,000
$360,000
$420,000
$480,000
$540,000
$600,000
MonarchCourt
Apartments
708RiversideAvenue
PacificView
Apartments
2651 FresnoStreet
101 DouglasDrive
131Alhambra
Average Price Per Unit
Avg. 12.78
Avg. .00
0.00
1.70
3.40
5.10
6.80
8.50
10.20
11.90
13.60
15.30
17.00
MonarchCourt
Apartments
708RiversideAvenue
PacificView
Apartments
2651 FresnoStreet
101 DouglasDrive
131Alhambra
Average GRM
Avg. 4.79%
Avg. 4.25%
0.0
0.6
1.2
1.8
2.4
3.0
3.6
4.2
4.8
5.4
6.0
MonarchCourt
Apartments
708RiversideAvenue
PacificView
Apartments
2651 FresnoStreet
101 DouglasDrive
131Alhambra
Average Cap Rate
SALES COMPARABLES
ON MARKET COMPARABLES
SALES COMPS AVG
ON MARKET COMPS AVG
PROPERTY NAME
MARKETING TEAM
MONARCH COURT APARTMENTS
SALES COMPARABLES
rentpropertyname1
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SALES COMPARABLES ON MARKET COMPARABLES
Units Unit Type
Offering Price: $2,400,000 1 Studio
Price/Unit: $400,000 5 2 Bdr
Price/SF: $705.88
CAP Rate: 4.30%
GRM: 15.06
Total No. of Units: 6
Year Built: 1955
Underwriting Criteria
Income $157,143 Expenses $53,975
NOI $103,168 Vacancy ($5,577)
MONARCH COURT APARTMENTS2230 Alice St, Santa Cruz, CA, 95062
1
Units Unit Type
Close Of Escrow: 1/2/2020 2 1 Bdr 1 Bath
Sales Price: $1,325,000 2 2 Bdr 1 Bath
Price/Unit: $331,250
Price/SF: $444.63
CAP Rate: 4.42%
GRM: 13.80
Total No. of Units: 4
Year Built: 1925
708 RIVERSIDE AVENUE708 Riverside Avenue, Santa Cruz, CA, 95060
Units Unit Type
Close Of Escrow: 12/23/2019 6 Studio 1 Bath
Sales Price: $4,125,000 7 1 Bdr 1 Bath
Price/Unit: $275,000 2 2 Bdr 1 Bath
Price/SF: $554.21
CAP Rate: 5.38%
GRM: 11.20
Total No. of Units: 15
Year Built: 1926
2
PACIFIC VIEW APARTMENTS81 Front Street, Santa Cruz, CA, 95060
PROPERTY NAME
MARKETING TEAM
MONARCH COURT APARTMENTS
SALES COMPARABLES
rentpropertyname1
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SALES COMPARABLES ON MARKET COMPARABLES
Units Unit Type
Close Of Escrow: 10/25/2019 8 2 Bdr 1 Bath
Sales Price: $4,450,000
Price/Unit: $556,250
Price/SF: $668.57
CAP Rate: 5.37%
GRM: 14.22
Total No. of Units: 8
Year Built: 1970
3
2651 FRESNO STREET2651 Fresno Street, Santa Cruz, CA, 95062
4
Units Unit Type
Close Of Escrow: 5/17/2019 6 2 Bdr 1 Bath
Sales Price: $2,280,000
Price/Unit: $228,000
Price/SF: $250.11
CAP Rate: 4.00%
GRM: 11.88
Total No. of Units: 10
Year Built: 1980
101 DOUGLAS DRIVE101 Douglas Drive, Soquel, CA, 95073
Units Unit Type
On Market 4 1 Bdr Bath
List Price: $3,200,000 3 2 Bdr Bath
Price/Unit: $457,143
Price/SF: $729.59
CAP Rate: 4.25%
Total No. of Units: 7
Year Built: 1950
5
131 ALHAMBRA131 Alhambra, Santa Cruz, CA, 95062
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MONARCH COURT APARTMENTS
RENT COMPARABLES MAP
MONARCH COURT APARTMENTS
(SUBJECT)
405 Plum Street
850 Park Avenue
1925 46th Avenue
108 2nd Street4
7
8
9
11
20
12
14
15
16
17
13
18
10
4
1
2
3
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PROPERTY NAME
MARKETING TEAM
MONARCH COURT APARTMENTS
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
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rentpropertyname1rentpropertyaddress1
Unit Type Units SF Rent Rent/SF
Studio 1 400 $1,694 $4.24
2 Bdr 5 600 $2,317 $3.86
Total/Avg. 6 567 $2,213 $3.91
MONARCH COURT APARTMENTS2230 Alice St, Santa Cruz, CA, 95062
1
Unit Type Units SF Rent Rent/SF
2 Bdr 1 Bath 950 $2,400 $2.53
Total/Avg. $2,400
405 PLUM STREET405 Plum Street, Capitola, CA, 95010
2
Unit Type Units SF Rent Rent/SF
2 Bdr 2 Bath $3,100
Total/Avg. $3,100
850 PARK AVENUE850 Park Avenue, Capitola, CA, 95010
3
Unit Type Units SF Rent Rent/SF
2 Bdr 1 Bath 874 $2,200 $2.52
Total/Avg. $2,200
1925 46TH AVENUE1925 46th Avenue, Capitola, CA, 95010
4
Unit Type Units SF Rent Rent/SF
Studio 230 $1,575 $6.85
Total/Avg. $1,575
108 2ND STREET108 2nd Street, Santa Cruz, CA, 95060
Market Overview
SAN JOSEOVERVIEW
1
Known to the world as Silicon Valley, the San Jose metro is located at the
southern end of the San Francisco Bay and encompasses Santa Clara and
San Benito counties. A large portion of the area’s 1,315 square miles is
unincorporated ranch and farmland.
The metro contains roughly 2 million inhabitants and more than half of the
region’s residents reside in the city of San Jose. It is the metro’s largest city
with more than 1 million residents, followed by Sunnyvale and Santa Clara.
Venture capital funds received in the 1990s helped to turn the area into the
world’s most prominent technology hub, a distinction that remains today.
MARKET OVERVIEW
METRO HIGHLIGHTS
PREMIER HIGH-TECH CENTER
Silicon Valley’s dense concentration of high-tech
jobs is world renowned, attracting a variety of large
employers and startups.
HIGH INCOMES
Well-paying jobs in the tech sector contribute to a
median annual household income level that is
almost double the U.S. median.
HIGHLY EDUCATED WORKFORCE
Nearly half of all residents age 25 and older have
obtained at least a bachelor’s degree, well above
the U.S. average.
MONARCH COURT APARTMENTS
ECONOMY▪ The San Jose employment base contains more than 1.1 million workers, ranking the metro
as one of the 30 largest job markets in the nation.
▪ There are 18 Fortune 500 companies headquartered in San Jose, including Intel, Cisco
Systems, Apple Inc., eBay and Alphabet.
▪ The area’s many institutions of higher learning, including Stanford, San Jose State and
Santa Clara University, support these companies by graduating thousands of engineering
and computer science students each year.
MAJOR AREA EMPLOYERS
Cisco Systems
County of Santa Clara
Adobe Systems Inc.
Hewlett-Packard Co.
City of San Jose
Intel Corp.
eBay
U.S. Veterans Medical Center
San Jose State University
Apple* Forecast
2
MONARCH COURT APARTMENTS
SHARE OF 2019 TOTAL EMPLOYMENT
MANUFACTURING
16%GOVERNMENT
HEALTH SERVICES
EDUCATION AND
+OTHER SERVICES
2%
LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES
12%
AND UTILITIES
TRADE, TRANSPORTATION CONSTRUCTION
PROFESSIONAL AND
BUSINESS SERVICES
9%INFORMATION
21%
4%
9% 9% 3%
15%
MONARCH COURT APARTMENTSPROPERTY NAME
MARKETING TEAM
MONARCH COURT APARTMENTS
DEMOGRAPHICS
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
▪ The metro is expected to add approximately 107,300 people through 2024 and during
this time more than 41,000 households will be formed.
▪ High home prices contribute to a homeownership rate of 56 percent, which is below
the national rate of 57 percent.
▪ Roughly 48 percent of residents age 25 and older hold a bachelor’s degree, including
22 percent who have also obtained a graduate or professional degree.
The San Jose metro has an enviable combination of major universities that produce a
highly educated workforce, cutting-edge firms and exceptional affluence. Residents can
visit a plethora of museums, including the San Jose Museum of Art and the Tech Museum
of Innovation. Santa Clara County is home to performing arts companies and hosts the San
Jose Jazz Festival. The San Francisco 49ers play their home games at Levi’s Stadium and
the San Jose Sharks hockey team plays at the SAP Center. Other sports venues include
Excite Ballpark and Stevens Stadium. The metro is minutes away from San Francisco and
some of the world’s finest wine-producing regions, notably the Napa, Sonoma and
Alexander valleys.
QUALITY OF LIFE
3
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s
Analytics; U.S. Census Bureau
MONARCH COURT APARTMENTS
2019 Population by Age
0-4 YEARS
6%5-19 YEARS
19%20-24 YEARS
6%25-44 YEARS
30%45-64 YEARS
26%65+ YEARS
13%
37.1
2019MEDIAN AGE:
U.S. Median:
38.1
$121,300
2019 MEDIAN HOUSEHOLD INCOME:
U.S. Median:
$60,800
2M
2019POPULATION:
Growth2019-2024*:
5.4%
694K
2019HOUSEHOLDS:
5.9%
Growth2019-2024*:
MONARCH COURT APARTMENTSPROPERTY NAME
MARKETING TEAM
MONARCH COURT APARTMENTS
DEMOGRAPHICS
MONARCH COURT APARTMENTS
32
SAN JOSE METRO AREA
Transit Networks Increasingly Key for
Development and Investment Strategies
Mountain View captivating builders, driving development to record high. Apartment construction will be
abundant this year as 5,500 units are slated for delivery — the highest total this millennium. Northern sections
of Sunnyvale will get much-needed supply amid sub-3 percent vacancy, while downtown San Jose will also
witness significant development as builders focus on areas that align with public transit routes. Mountain View
will post the strongest supply growth, adding more than 1,500 units, as developers seek to keep pace with the
steady job creation of nearby tech firms. The influx of supply will outstrip the expected absorption of 4,600
apartments, putting short-term pressure on marketwide vacancy as it’s pushed to the low-4 percent range.
Some areas such as East San Jose will retain limited apartment availability, keeping local rent growth among
the strongest in the market. Over the past five years, the average effective rent in East San Jose has risen 29
percent, the most of any submarket within the metro.
Favorable yields bringing investors to urban San Jose. Local buyers remain a key component of
investment activity as they home in on many of the area’s Class C assets, seeking properties with upside
potential. Assets throughout Los Altos and Palo Alto in the five- to 10-unit range will remain highly targeted
this year, fueled by the vigorous rental demand from nearby employment hubs, in addition to consistently
robust rent growth. Downtown San Jose will also attract these investors as this part of market offers
comparatively affordable entry costs and average returns in the mid-4 percent band, up to 50 basis points
above the market average. While local interest should remain stable, out-of-state buyers will continue to
arrive in San Jose, particularly institutional groups. In recent months, investors from the East Coast directed
their focus to the area’s larger Class B complexes along the Caltrain line in southern sections of the market,
purchasing units for roughly $420,000 per door.
* Estimate; ** Forecast
Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.
MONARCH COURT APARTMENTSPROPERTY NAME
MARKETING TEAM
MONARCH COURT APARTMENTS
DEMOGRAPHICSCreated on February 2020
MONARCH COURT APARTMENTS
SAN JOSE METRO AREA
2020 Market Forecast
Job creation will remain diverse this year, with organizations adding 20,000
new employees.
Development will further accelerate following the completion of 2,700 units
last year and 1,400 apartments in 2018.
Elevated development will place pressure on market vacancy, driving it up to
4.3 percent. The rate decreased each of the previous three years by a total
of 80 basis points.
Coming off a 6.4 percent boost last year, the market’s rent growth will remain
stable in 2020 as the average effective rent rises to $3,080 per month.
Smaller Class C assets with value-add potential near major employers will
remain sought after by investors, strengthening bidding climates and putting
additional pressure on cap rates.
* Estimate; ** Forecast
Sources: CoStar Group, Inc.; RealPage, Inc.; Real Capital Analytics
Employment
up 1.7%
Construction
5,500 units
Vacancy
up 40 bps
Rent
up 3.3%
Investment
PROPERTY NAME
MARKETING TEAM
MONARCH COURT APARTMENTS
DEMOGRAPHICSCreated on February 2020
PROPERTY NAME
MARKETING TEAM
MONARCH COURT APARTMENTS
DEMOGRAPHICS
Source: © 2019 Experian
Created on February 2020
POPULATION 1 Miles 3 Miles 5 Miles
▪ 2023 Projection
Total Population 18,376 82,601 129,105
▪ 2018 Estimate
Total Population 18,200 81,051 126,209
▪ 2010 Census
Total Population 17,538 77,791 120,220
▪ 2000 Census
Total Population 17,873 78,266 117,534
▪ Daytime Population
2018 Estimate 11,194 90,217 160,503
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
▪ 2023 Projection
Total Households 7,949 35,311 51,852
▪ 2018 Estimate
Total Households 7,850 34,371 50,329
Average (Mean) Household Size 2.28 2.27 2.32
▪ 2010 Census
Total Households 7,466 32,654 47,786
▪ 2000 Census
Total Households 7,420 32,169 46,800
Growth 2015-2020 1.26% 2.73% 3.03%
HOUSING UNITS 1 Miles 3 Miles 5 Miles
▪ Occupied Units
2023 Projection 7,949 35,311 51,852
2018 Estimate 8,525 36,395 53,448
Owner Occupied 3,883 15,600 25,821
Renter Occupied 3,967 18,771 24,509
Vacant 674 2,024 3,118
▪ Persons In Units
2018 Estimate Total Occupied Units 7,850 34,371 50,329
1 Person Units 34.83% 35.50% 33.12%
2 Person Units 32.79% 32.64% 33.46%
3 Person Units 14.97% 14.44% 15.06%
4 Person Units 10.43% 10.28% 11.09%
5 Person Units 4.04% 4.04% 4.18%
6+ Person Units 2.96% 3.10% 3.08%
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
▪ 2018 Estimate
$200,000 or More 7.50% 9.32% 11.24%
$150,000 - $199,000 7.05% 6.99% 8.41%
$100,000 - $149,000 16.12% 15.14% 16.70%
$75,000 - $99,999 11.79% 12.87% 13.48%
$50,000 - $74,999 16.32% 14.91% 13.97%
$35,000 - $49,999 11.94% 10.50% 9.45%
$25,000 - $34,999 7.97% 8.17% 7.36%
$15,000 - $24,999 9.91% 9.50% 8.64%
Under $15,000 11.38% 12.61% 10.75%
Average Household Income $92,579 $98,715 $109,340
Median Household Income $60,064 $63,858 $74,657
Per Capita Income $40,185 $42,523 $44,599
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
▪ Population By Age
2018 Estimate Total Population 18,200 81,051 126,209
Under 20 20.04% 18.88% 20.95%
20 to 34 Years 23.89% 26.57% 25.68%
35 to 39 Years 7.42% 6.93% 6.09%
40 to 49 Years 13.60% 12.78% 11.88%
50 to 64 Years 20.66% 20.36% 20.19%
Age 65+ 14.39% 14.48% 15.21%
Median Age 39.06 38.25 37.75
▪ Population 25+ by Education Level
2018 Estimate Population Age 25+ 13,021 56,221 83,829
Elementary (0-8) 4.39% 4.07% 3.12%
Some High School (9-11) 5.40% 4.90% 4.09%
High School Graduate (12) 15.38% 15.42% 14.43%
Some College (13-15) 27.02% 25.02% 24.67%
Associate Degree Only 9.27% 9.22% 9.30%
Bachelors Degree Only 23.55% 24.35% 25.63%
Graduate Degree 13.82% 16.31% 18.14%
▪ Population by Gender
2018 Estimate Total Population 18,200 81,051 126,209
Male Population 49.08% 49.51% 49.11%
Female Population 50.92% 50.49% 50.89%
34
Income
In 2019, the median household income for your selected geography is
$92,821, compare this to the US average which is currently $58,754.
The median household income for your area has changed by 45.63%
since 2000. It is estimated that the median household income in your
area will be $107,066 five years from now, which represents a change
of 15.35% from the current year.
The current year per capita income in your area is $49,529, compare
this to the US average, which is $32,356. The current year average
household income in your area is $137,726, compare this to the US
average which is $84,609.
Population
In 2019, the population in your selected geography is 410,979. The
population has changed by 7.62% since 2000. It is estimated that the
population in your area will be 415,546.00 five years from now, which
represents a change of 1.11% from the current year. The current
population is 49.69% male and 50.31% female. The median age of the
population in your area is 39.74, compare this to the US average
which is 37.95. The population density in your area is 326.79 people
per square mile.
Households
There are currently 145,855 households in your selected geography.
The number of households has changed by 8.93% since 2000. It is
estimated that the number of households in your area will be 149,427
five years from now, which represents a change of 2.45% from the
current year. The average household size in your area is 2.68
persons.
Employment
In 2019, there are 153,481 employees in your selected area, this is
also known as the daytime population. The 2000 Census revealed that
67.96% of employees are employed in white-collar occupations in this
geography, and 32.07% are employed in blue-collar occupations. In
2019, unemployment in this area is 6.06%. In 2000, the average time
traveled to work was 29.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
69.11% White, 1.06% Black, 0.17% Native American and 8.58%
Asian/Pacific Islander. Compare these to US averages which are:
70.20% White, 12.89% Black, 0.19% Native American and 5.59%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 30.58% of the current year
population in your selected area. Compare this to the US average of
18.01%.
PROPERTY NAME
MARKETING TEAM
MONARCH COURT APARTMENTS
Housing
The median housing value in your area was $746,649 in 2019,
compare this to the US average of $201,842. In 2000, there were
87,537 owner occupied housing units in your area and there were
46,358 renter occupied housing units in your area. The median rent at
the time was $890.
Source: © 2019 Experian
DEMOGRAPHICS
35
8
MONARCH COURT APARTMENTS
DEMOGRAPHICS
36
Exclusively Listed by
Monarch Court Apartments
2230 Alice Street
Santa Cruz, CA 95062
Eduardo CernaSen ior Manag ing Director Inves tmentsSen ior Director , nat iona l Mul t i Hous ing GroupEd.Cerna@MarcusMi l l i chap.com
2230 ALICE ST
38
AERIAL PHOTO
Santa Cruz Beach Boardwalk and Pier – 3 miles
Monarch Court2230 Alice Street
Santa Cruz, CA 95062
Corcoran LagoonMoe’s Beach
2230 ALICE ST
39
Noah’s Ark Preschool & DaycareDel Mar Elementary School
Cypress High School
Monarch Court2230 Alice Street
Santa Cruz, CA 95062
Fell Street County
Park
AERIAL PHOTO
2230 ALICE ST
40