OFFERING AUBURN OAKS SENIOR LIVING MEMORANDUM · 2019. 3. 20. · Boulevard, Auburn Oaks Senior...

OFFERING MEMORANDUM

AUBURN OAKS SENIOR LIVING 7501 SUNRISE BLVD, CITRUS HEIGHTS CA 95610

AUBURN OAKS SENIOR LIVING Kidder Mathews | Offering Memorandum 2

Table of Contents1. Property Overview .............................. 3

• Executive Summary• Property Layout• Amenities Aerial• Regional Aerial• Community Demographics

2. Property Financials ............................ 8

• Senior Apartments• Assisted Living

3. Kidder Mathews ............................... 13

• Company Overview• Qualifications

Ben FrazierVice [email protected] | Lic# 01850030

Bruce WirtSenior Vice President, [email protected] | Lic# 00841998

Exclusively Listed By

Kidder Mathews 455 Capitol Mall, Ste 160 Sacramento, CA 95814

kiddermathews.com

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and certification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

AUBURN OAKS SENIOR LIVING


Property Overview

01


Su

nrise

Blvd

Old Auburn Rd

Kidder Mathews | Offering Memorandum 4AUBURN OAKS SENIOR LIVING

Kidder Mathews is pleased to present a unique Senior Housing opportunity in Citrus Heights, California. Located on the primary thoroughfare of Sunrise Boulevard, Auburn Oaks Senior Living consists of 48 Senior Apartments and 80 units of non-operational Assisted Living. While collecting on the 98 percent occupied Senior Apartments, a new investor can renovate and bring to market over 100 beds of Senior Care.

Constructed in 1977, Auburn Oaks was operated as Senior Apartments and Assisted Living until the market collapse in 2008. At that time the Assisted Living Business vacated leaving only the Senior Apartments operational. The apartments have been managed by local Senior Housing operator, Cimino Care, for ten years. With a strong presence in the Sacramento market, Cimino Care would be willing to assist a new investor with the renovation and management of the Assisted Living business through fee management or lease.

With the highly visible location and traffic counts of over 48,000 cars per day on Sunrise Boulevard, Auburn Oaks is the ideal location for redevelopment. An investor has the opportunity to re-establish a Senior Housing Facility in a prime Sacramento location without incurring the expenses associated with ground up construction.

Executive Summary

PROPERTY INFORMATION

Address 7501 Sunrise Blvd, Citrus Heights, CA

Total Number of Units 129

Apartment Units 48

Assisted Living Units 81

Buildings 1 (Single and Two-Story)

Land Area ±3.43 acres

Year Built 1977

Total SF ±60,814

Apartment SF ±20,400

Assisted Living SF ±40,414

Price $8,500,000


Property Layout

N

APN: 224-0090-005

ASSISTED LIVING SENIOR APARTMENTS


Local Amenities

N

Woodmore Oa

ks D

r

Su

nrise

Blvd

Ma

ripo

sa A

ve

Sylva

n R

dA

ub

urn

Rd

Va

n M

are

n L

n

Sa

n Ju

an

Ave

Greenback Ln

Oak Ave

Auburn B

lvd

Old Auburn Rd

Antelope Rd

Fa

ir Oa

ks B

lvd

SITE

De

wey D

r


Citrus Heights began its emergence as a regionally important retail destination in the 1970s with the opening of the Sunrise Mall and Birdcage Walk shopping centers. The seismic stability of Citrus Heights that distinguishes it from much of coastal California, undoubtedly contributed to its growth and maturation. After existence as an unincorporated area of northeastern Sacramento County for nearly 100 years, Citrus Heights became an independent city offering local municipal services in January 1997.

POPULATION 1 MILE 3 MILES 5 MILE

2018 TOTAL POPULATION 17,971 138,143 339,093

2023 POPULATION 18,744 144,892 356,098

POP GROWTH 2018-2023 4.30% 4.89% 5.01%

AVERAGE AGE 38.40 39.80 39.40

HOUSEHOLDS

2018 TOTAL HOUSEHOLDS 6,717 53,476 129,919

HH GROWTH 2018-2023 4.14% 4.82% 4.99%

MEDIAN HOUSEHOLD INCOME $58,767 $61,342 $67,066

AVG HOUSEHOLD SIZE 2.60 2.50 2.60

2018 AVG HH VEHICLES 2.00 2.00 2.00

HOUSING

MEDIAN HOME VALUE $317,678 $307,573 $342,268

MEDIAN YEAR BUILT 1976 1976 1978

Community Demographics

Sunrise Blvd43,084 ADT

Old Auburn Rd


Regional Aerial

SAC INTL AIRPORT

N

AUBURN OAKS LIVING CENTER

FOLSOM

CARMICHAEL

ARDEN-ARCADE

ROSEVILLE

DOWNTOWN SACRAMENTO

Su

nrise

Blvd

RANCHO CORDOVA

FAIR OAKS

CITRUS HEIGHTS


Property Financials

02

ARCADIA APARTMENTS

Sunrise Blvd

Old A

uburn Blvd

Oa

k A

ve


Financials

Price $8,500,000 Income Market Price/Unit $65,891 Gross Apartment Rent $565,440Price/SF $139.77 Gross Assisted Living Rent $3,732,000Market Cap 14.62% Gross Potential Rent $4,297,440

Other Income $30,723Gross Potential Income $4,328,163

Apartment Vacancy (5%) $28,272Assisted Living Vacancy (9%) $335,880

Effective Gross Income $3,964,011

ExpensesTaxes $102,000Total Expenses $2,721,600

Net Operating Income $1,242,411

Price $8,500,000

Price/Unit $65,891

Price/SF $139.77

Market Cap 14.62%

Property FinancialsSENIOR APARTMENTS RENT ROLL BREAKDOWN


Property FinancialsSENIOR APARTMENTS RENT ROLL BREAKDOWN

CURRENT RENT MARKET RENT

UNIT TYPE # OF UNITS SF AVG RENT AVG RENT/SF MONTHLY INCOME AVG RENT AVG RENT/SF MONTHLY INCOME

Studio 44 400 $890 $2.23 $39,160 $975 $2.44 $42,900

1x1 4 700 $1,035 $1.48 $4,140 $1,055 $1.51 $4,220

TOTAL/AVG 48 20,400 $902 $2.12 $43,300 $982 $2.31 $47,120

GROSS ANNUALIZED RENTS $519,600 $565,400

PROPERTY NAMEAuburn Oaks Apartments

COMPARABLES

Unit Mix Rents

$800

$850

$900

$950

$1,000

$1,050

$1,100

Studio 1 BD AVG

CurrentMarket


Property FinancialsSENIOR APARTMENTS INCOME AND EXPENSES

INCOME CURRENT PER UNIT PER SF MARKET

All Units at Market Rent $519,600 $10,825 $25.47 $565,440

Gross Potential Rent $519,600 $10,825 $25.47 $565,440

Other Income

Laundry Machines $0 $0 $0.00 $4,323

Late Fees $0 $0 $0.00 $3,000

Miscellaneous $0 $0 $0.00 $7,500

Total Other Income $0 $0 $0.00 $14,823

Gross Potential Income $519,600 $10,825 $25.47 $580,263

Vacancy Allowance 5% $25,980 $541 $1.27 $28,272

EFFECTIVE GROSS INCOME $493,620 $10,284 $24.20 $551,991

Expenses

Real Estate Taxes* $37,953 $790.69 $1.86 $37,953

Insurance $17,752 $370 $0.87 $17,752

Utilities $57,600 $1,200 $2.82 $57,600

Repairs & Maintenance $45,306 $944 $2.22 $45,306

On-Site Payroll $59,972 $1,249 $2.94 $59,972

Administrative $12,150 $253 $0.60 $12,150

Management Fee 5% $24,681 $514 $1.21 $26,858

Resident Activities $6,393 $133 $0.31 $6,393

Transportation Services $9,778 $204 $0.48 $9,778

Reserves & Replacements $12,000 $250 $0.59 $12,000

Total Expenses $283,585 $5,908 $13.90 $285,762

NET OPERATING INCOME $210,035 $4,376 $10.30 $266,229

*Taxes are based on owners actual 2017 Property and Real Estate Taxes


Property FinancialsASSISTED LIVING RENT ROLL BREAKDOWN

PROFORMA RENT

UNIT TYPE # OF UNITS SF AVG RENT AVG RENT/SF MONTHLY INCOME

Shared Restroom 38 190 $3,000 $15.79 $114,000

Single Occupancy 30 399 $3,750 $9.40 $112,500

Dual Occupancy 13 399 $6,500 $16.29 $84,500

TOTAL/AVG 81 24,377 $3,840 $12.76 $311,000

GROSS ANNUALIZED RENTS $3,732,000

PROPERTY NAMEArcadia Apartments

Unit Mix

Shared RRSingle Occ.Dual Occ.


Property FinancialsASSISTED LIVING INCOME AND EXPENSES

INCOME PRO-FORMA PER UNIT PER SF

All Units at Market Rent $3,732,000 $46,074 $93.30

Gross Potential Rent $3,732,000 $46,074 $93.30

Other Income

Application Fees $6,000 $74 $0.15

Hair Service $9,600 $119 $0.24

Total Other Income $15,600 $193 $0.39

Gross Potential Income $3,747,600 $46,267 $93.69

Vacancy Allowance 9% $335,880 $4,147 $8.40

EFFECTIVE GROSS INCOME $3,411,720 $42,120 $85.29

Expenses

Real Estate Taxes $64,046 $790.69 $1.60

Insurance $25,344 $313 $0.63

Utilities $148,080 $1,828 $3.70

Repairs & Maintenance $78,600 $970 $1.97

Management Payroll $160,466 $1,981 $4.01

Professional Fees $37,980 $469 $0.95

Management Fee 8% $271,690 $3,354 $6.79

Office Expenses $15,240 $188 $0.38

Staff Development $20,400 $252 $0.51

Marketing $18,000 $222 $0.45

Resident Care Payroll $1,004,960 $12,407 $25.12

Faciliites Payroll $203,326 $2,510 $5.08

Resident Care Supplies $29,640 $366 $0.74

Resident Activities $26,160 $323 $0.65

Food Service $313,832 $3,874 $7.85

Reserves & Replacements $20,250 $250 $0.51

Total Expenses $2,438,014 $30,099 $60.95

NET OPERATING INCOME $973,706 $12,021 $24.34


Kidder Mathews

03

ARCADIA APARTMENTS


Company Overview

San diego

Orange countyInland Empire

Phoenix

SEATTLE

SOUTH SEATTLETACOMA

OLYMPIA

PORTLAND

SAN FRANCISCO

SACRAMENTO

Silicon ValleyREDWOOD SHORES

BELLEVUE

RENOROSEVILLE

Carlsbad

los angeles commerce

long beachEl Segundo

About Kidder Mathews

Kidder Mathews is one of the largest, independent commercial real estate firms on the West Coast, with over 700 real estate professionals and staff in 21 offices in Washington, Oregon, California, Nevada, and Arizona. We offer a complete range of brokerage, appraisal, property management, consulting, sustainability, and project and construction management services for all property types.

700+

$7B

18.6M sf

30.9M sf

Professionals

Annual transaction total

Annual sales

Annual leases

Portfolio 49.5M sf

Property Management

1,500+Appraisals annually

Valuation Advisory

Commercial Brokerage

WASHINGTON# Brokers ...........................................126 # Property Managers ..........................20 # Appraisers ........................................23

OREGON# Brokers ............................................ 37 # Property Managers ........................... 5 # Appraisers ......................................... 3

CALIFORNIA# Brokers ...........................................173 # Property Managers ..........................18 # Appraisers ........................................10

ARIZONA# Brokers .............................................16 # Property Managers ............................1

NEVADA# Brokers ...............................................9 # Property Managers ............................1

Award Winning Services 2001-2017

A Largest CRE Firm in San Francisco

11 times

A Largest CRE Firm in Silicon Valley

9 times

SFBT/SJBJ Best Places to Work

3 times

Bay Area News Group Top Work Places

4 times

PSBJ Largest Commercial Real Estate (CRE) Firm

15 times


Qualifications

CAREER SUMMARY

Ben Frazier is the Vice President of Multifamily Investments for the Central Valley in the Sacramento division of Kidder Mathews. Ben recently joined Kidder Mathews in the fall of 2017, with almost a decade of commercial investment experience.

Ben’s clients benefit from his consultative approach. As a Sacramento local, Ben knows the area and its specific market conditions; using that knowledge to maximize the value of each investment. He builds long term relationships with clients due to his customer centric attitude. Involved in every step of the transaction process, from underwriting through escrow, Ben increases their net worth through acquisition, disposition and implementing innovative management strategies to increase monthly cash flow. He delivers first-rate results for private and institutional investors.

Prior to Ben’s affiliation with Kidder Matthews, he closed over $250M in transactions at another major commercial real estate firm. His experience is expansive, ranging from Institutional Investments, Tax Credit properties and private clients.

REPRESENTATIVE TRANSACTIONS

Represented the Buyer and Seller of the 280 unit Iron Point at Prairie Oaks in Folsom for $58,200,000 Represented the Buyer and Seller of the 1, 255 Wasatch Portfolio LIHTC transaction in Sacramento

Represented the Seller of 200 unit Marq Apartments for $16,700,000 in Sacramento for $16,700,000

Represented the Buyer and Seller of the 304 unit Oak Brook Apartments in Rancho Cordova for $57,750,000 Represented the Seller of the 16 unit Riviera Apartments in Sacramento for $1,400,000

Represented the Buyer and Seller of the 328 unit Rivercrest Apartments in Sacramento for $34,500,000

Represented the Buyer and Seller a two property portfolio made up of the 48 unit Woodcrest Apartments and the 24 unit Plaza Royale Apartments in Sacramento for $4,466,000

Ben Frazier Vice President Multi-Family Investments


Qualifications

CAREER SUMMARY

Prior to joining Kidder Mathews as senior vice president, Bruce was with TRI Commercial, Cornish & Carey Commercial, and Newmark Knight Frank, specializing in all facets of office development. Bruce began his real estate career with the development firm Panattoni Oates and Massie in 1979. He then joined Coldwell Banker Commercial as an office leasing specialist in 1981, and in 1989 moved to Iliff Thorn and Company, which became Colliers International, and remained there as an office specialist for the next 20 years. He has been an office leader and top producer for years. Bruce has been involved in over 1,000 sale and lease transactions during his career. His depth of experience and unique real estate vision allows him to provide creative solutions to a myriad of real estate hurdles.

REPRESENTATIVE TRANSACTIONS

Folsom land sale of ±123 acres for $19,000,000

Oracle land sale of ±35 acres for $2,500,000

Oracle Building / land sale of ±120,000 SF, plus ±17 acres for $18,000,000

Kaiser lease in Folsom of ±121,000 SF for $25,000,000

9100 Foothills Blvd, Roseville, office building / land sale of ±300,000 SF, plus ±36 acres for $16,000,000

Honeywell Building sale in Folsom of ±100,000 SF for $12,000,000

Sutter Health lease in Rancho Cordova of ±100,000 SF for $20,000,000 Sutter Connect lease in Rancho Cordova of ±75,000 SF for $14,000,000

9100 Foothills Blvd, Roseville lease of ±300,000 SF for $55,000,000

10931 Peter A. McCuen Blvd, Mather lease of ±107,000 SF for $21,000,000

California North State University of ±150,000 SF for $23,000,000

Bruce Wirt Senior Vice President, Partner Office


Ben Frazier Vice [email protected] | Lic# 01850030

Bruce Wirt Senior Vice President, [email protected] | Lic# 00841998

Kidder Mathews455 Capitol Mall, #160 Sacramento, CA 95814

kiddermathews.com

OFFERING AUBURN OAKS SENIOR LIVING MEMORANDUM · 2019. 3. 20. · Boulevard, Auburn Oaks Senior...

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