OFFERING MEMORANDUM Yosemite Court...

OFFERING MEMORANDUM

Yosemite Court Apartments16-Unit Multifamily Investment Opportunity

843 N Yosemite StreetStockton, California 95210

INVESTMENT CONTACTS:

Colton Toste

Associate

+1 209 752 0296

[email protected]

BRE#01993261

Ruben Sandoval

Vice President

+1 209 918 1536

[email protected]

BRE#01806675

Confidentiality & Disclaimer

Section 1

This Confidential Offering Memorandum (the “Memorandum”) has been prepared and

presented to the recipient (the “Recipient”) by NAI Benchmark First Commercial (NAI

“Benchmark”) as part of NAI Benchmark’s efforts to market for sale the real property

located at 843 N Yosemite Ave, Stockton, CA , (“The Property”). NAI Benchmark is the

exclusive agent and broker for the owner(s) of the Property (the “Owner”). NAI Benchmark

is providing this Memorandum and the material contained in it to the Recipient solely to

assist the Recipient in determining whether the Recipient is interested in potentially

purchasing all or part of the Property. NAI Benchmark also is providing this Memorandum

and the material in it to the Recipient with the understanding that the Recipient will

independently investigate those matters that it deems necessary and appropriate to

evaluate the Property and that the Recipient will rely only on its own investigation, and not

NAI Benchmark, the Owner or this Memorandum, in determining whether to purchase the

Property. The Recipient’s use of this Memorandum, in determining whether to purchase the

Property. The Recipient’s use of this Memorandum and the material in it is strictly governed

by the terms and conditions of the Registration and Confidentiality Agreement that the

Recipient previously executed and delivered to NAI Benchmark.

PLEASE NOTE THE FOLLOWING:

NAI Benchmark, the owner and their respective agents, employees, representatives, property

managers, officers, directors, shareholders, members, managers, partners, join ventures,

corporate parents or controlling entities, subsidiaries, affiliates, assigns and predecessors and

successors-in-interest make no representations or warranties abut the accuracy,

correctness or completeness of the information contained in this Memorandum. The

Recipient is urged not to rely on the information contained in this Memorandum and to make

an independent investigation of all matters relating to the Property.

This Memorandum includes statements and estimates provided by or to NAI Benchmark

and/or the Owner regarding the Property. Those statements and estimates may or may not

be accurate, correct or complete. Nothing contained in this Memorandum should be construed

as a representation or warranty about the accuracy, correctness or completeness of such

statements and estimates. Further, nothing contained in this Memorandum should be

construed as a representation or warranty about the accuracy, correctness or complete-

ness of such statements and estimates. Further, nothing in this Memorandum should be

construed as representation or warranty about any aspect of the Property, including, without

limitation, the Property’s (1) past, current or future performance, income, uses or

occupancy, (2) past, current or prospective tenants, (3) physical condition, (4) compliance,

or (5) appropriateness for any particular purpose, investment, use or occupancy. Again, the

Recipient is urged not to rely on this Memorandum and the statements and estimates in it and

to make an independent investigation regarding the Property and the statements and

estimates contained herein.

This Memorandum may include statements regarding, references to, or summaries of, the

nature, scope or content of contracts and/or other documents relating to the Property.

Those statements, references or summaries may or may not be accurate, correct or

complete. Additionally, NAI Benchmark may not have referenced or included summaries of

each and every contract and/or other document that the Recipient might determine is

relevant to its evaluation of the Property. Nothing contained in this Memorandum should be

construed as a representation or warranty about the accuracy, correctness or completeness

of such statements, representations or summaries. On request and as available, and subject

to the Owner’s consent, NAI Benchmark will provide the Recipient with copies of all

referenced contracts and other documents. NAI Benchmark assumes no obligation to

supplement or modify the information contained in this Memorandum to reflect events or

conditions occurring on or after the date of its preparation of this Memorandum.

This Memorandum does not constitute an offer to sell, or a solicitation of an offer to buy, an

interest in the Property. Nothing contained in this Memorandum may be construed to

constitute legal or tax advice to a Recipient concerning the Property.

More detailed information regarding the anticipated terms, conditions and timing of any

offering by the Owner relating to the Property will be provided in due course by separate

communication. NAI Benchmark and/or the Owner reserve the right to engage at any time in

discussions or negotiations with one or more recipients of this Memorandum and/or other

prospective purchasers of the Property without notice or other obligation to the Recipient.

The Owner reserves the right to change the terms of any offering relating to the Property or

to terminate without notice that offering. The Owner also reserves the right to operate the

Property in its sole and absolute discretion prior to the completion of any sale of the Property.

NAI Benchmark reserves the right to return of this Memorandum and the material in it and

any other material provided by NAI Benchmark to the Recipient at any time. Acceptance of

this Memorandum by the Recipient constitutes acceptance of the terms and conditions

outlined above.

843 N Yosemite Street, Stockton, CA • 16-Unit Apartment Complex

PROPERTY SUMMARY

Property Overview

Section 1

TOTAL ASKING PRICE $1,312,000

SQUARE FOOTAGE 8,209

TOTAL UNITS 16

PRICE PER UNIT $82,000

CURRENT CAP RATE 4.51%

CURRENT GRM 10.94

PRICE PER SF $159.82

FINANCIAL SUMMARY

Please do not visit property without

an appointment.3

Colton Toste

Associate

+1 209 752 0296

[email protected]

BRE#01993261

Ruben Sandoval

Vice President

+1 209 918 1536

[email protected]

BRE#01806675

SITE

PROFORMA CAP RATE 6.94%

Demographics 2015 1 Mile 3 Mile 5 Mile

Population 23,098 168,359 276,495

Average Household Income $44,535 $57,038 $62,687


Pershing Ave

Property Overview

INVESTMENT HIGHLIGHTS

• 100% occupied

• Very clean and well-maintained

• Excellent upside potential in rents

• Highly Desirable Neighborhood

• Perfect Investment for out of area owner

• Low maintenance landscaping

• Convenient access to Restaurants and Shops

• All units are separately metered for utilities

PROPERTY DESCRIPTION

Clean, well-maintained property that shows pride of

ownership. Renters love this highly desirable area. This

two story stucco apartment building on a corner lot has

16 one bedroom units, strong management, and a very

low vacancy rate. Rents are extremely below market.

Tranquil courtyard at the ground level, and the laundry

room is on the 2nd floor. Fantastic property for an owner

looking for pride of ownership. One gas & water meter,

owner pays water, trash and sewer.

Across from very popular neighborhood shopping strip,

and 3 blocks from Dameron Hospital. Minutes to

Interstate 5 for commuters.


Property Overview

Section 1

ADDRESS 843 N Yosemite Street, Stockton, CA

COUNTY San Joaquin County

APN #

YEAR BUILT 1971

RENTABLE SF 8,209

LAND AREA (ACRES) 0.23

LAND AREA (SF) 10,100

TOTAL UNITS 16

STORIES 2

CONSTRUCTION TYPE WoodFrame

SIDING MATERIAL

FOUNDATION Cement Slab

ROOF TYPE Flat

HVAC Wall-mounted Units

LAUNDRY Facility on Site

PROPERTY SUMMARY

Stucco/wood shingle

BUILDINGS 1

135-411-05


FINANCIAL ANALYSIS

Financial Overview

Estimated Income

Scheduled Base Rent $119,880

Laundry Income ($200/month) $2,400

Less: Vacancy Factor 3.0% $2,397

Scheduled Gross Income $119,882

Estimated Operating Expenses

New Property Taxes (1.2717%) $16,684

Direct Assessments $184.46

Insurance $3,900

Repairs and Maintenance ($200/Unit) $3,200

Water ($210/month) $2,520

Sewer ($550/month) $6,600

Garbage ($170/month) $2,040

PG&E ($650/month) $7,800

Turnover Cost ($200/unit) $3,200

Landscaping ($200/month) $2,400

Pest Control ($75/month) $900

On-Site Management ($400/month) $4,800

Off-Site Management (5% of SGI) $5,994

Estimated Total Expenses $60,223

50%

Estimated Net Operating Income $59,659

INCOME / OPERATING EXPENSES

Section 2

ACTUAL RENT ROLL / MARKET RENTS

UNITSUNIT

TYPEAPPROX SQ FT

MONTHLY

RENT/UNITMARKET RENTS

7 1BD/1BA 515 $625 $800

3 1BD/1BA 515 $600 $800

3 1BD/1BA 515 $620 $800

1 1BD/1BA 515 $650 $800

1 1BD/1BA 515 $630 $800

1 1BD/1BA 515 $675 $800

16 Monthly Gross Rent: $9,990 $12,800

• A recent rent survey shows that in place rents are extremely below market. The next

investor can increase rents without any capital expenditure to $800 for each unit. This is

a conservative estimate based on asking rents for comparable 1 bedroom / 1 bathroom

apartments in the area. (see Comparable Analysis)

• Increasing rents would bring CAP Rate to 6.94% and GRM to 8.54 on current asking

price.

Asking Price $1,312,000

Current

CAP Rate4.55%

Price Per Unit $82,000

GRM 10.94

ACTUAL

Asking Price $1,312,000

Proforma

CAP Rate6.94%

Price Per Unit $82,000

GRM 8.54

PROFORMA / MARKET RENTS


2

126 E Vine St, Stockton, CA

RENT COMPARABLES

419 W Flora St, Stockton, CA

1

344 W Poplar St, Stockton, CA

3

Asking Rent $900

Unit Type 1 BD/1 BA

Notes: Unrenovated unit, vinyl

flooring in living room.

Asking Rent $750

Unit Type 1 BD/1 BA

Notes: Unrenovated unit

turned with new carpet, paint,

W/D hookup.

4

324 E Magnolia St, Stockton, CA

1030 N. San Joaquin Street, Stockton, CA 95202 • 10 Unit Apartment Complex

Comparable Analysis

Asking Rent $900

Unit Type 1 BD/1 BA

Notes: gas stove, fridge, ceiling

fans, wall heater, back patio

area and separate front

entrance.

Asking Rent $925

Unit Type 1 BD/1 BA

Notes: Completely renovated

property inside and out.



RENT COMPARABLES

1

Comparable Analysis

$-

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

$900.00

$1,000.00

Subject 1 2 3 4

Asking Rent


LOCATION OVERVIEW


Location Overview


Downtown StocktonHistorically, Downtown Stockton began with a mix of thriving commercial ventures and colorful characters.Today, Downtown Stockton is a vibrant waterfront community with endless opportunities and amenities. TheDowntown is captivated with world-class art and entertainment, renovated historical buildings, museums,theaters, restaurants and attractions.

Stockton Ball ParkThe Stockton Ball Park is home to the Stockton Ports, a minor league baseball team that is an affiliate of theOakland Athletics. The ballpark features 5,200 fixed seats in addition to other seating facilities and amenities.

The WaterfrontWith the remarkable transformation of Stockton’s Downtown Waterfront Community, this historic area boasts thedeep water Stockton Channel, a thriving port that transports goods from the heart of Stockton to the PacificOcean. Beautiful Residential communities, hotels and resorts line the river banks.

San Joaquin County is located in the Central Valley of California, just east of the San Francisco Bay Area. As of the2010 census, the population was 685,306. The county seat is Stockton. The Central Valley is one of the world’smost productive agricultural regions. More than 230 crops are grown there. On less than 1 percent of the totalfarmland in the United State, the Central Valley produces 8 percent of the nation’s agricultural output by value: 17billion USD in 2002. Its agricultural productivity relies on irrigation from both surface water diversions andgroundwater pumping from wells. About on-sixth of the irrigated land in the U.S. is in the Central Valley.

Virtually all non-tropical crops are grown in the Central Valley, which is the primary source for a number of foodproducts throughout the United States, including tomatoes, almonds, grapes, cotton, apricots, and asparagus.There are 6,000 almond growers that produce more than 600 million pounds a year, about 70 percent of the world’ssupply.

Early farming was concentrated close to the Sacramento-San Joaquin Delta, where the water table was high yearround and water transport more readily available, but subsequent irrigation projects have brought many more partsof the valley into productive use. For example, the Central Valley Project was formed in 1935 to redistribute andstore water for agricultural and municipal purposes with dams and canals. The even larger California State WaterProject was formed in the 1950s and construction continued throughout the following decade.

The City of Stockton

San Joaquin County, California

Section 2

SITE

The Bay Area

Even though Stockton is not technically considered part of the Bay

Area, many of its residents commute to the Bay Area for jobs and

therefore is directly influenced by the Bay Area’s economic health.

The San Francisco Bay Area, commonly known as the Bay Area, is a

metropolitan region that encompasses metropolitan areas such as

San Francisco-Oakland (12th largest in the country). San Jose (31st

largest in the country), and smaller urban and rural areas. The

United States Census Bureau defines the Bay Area as a Combined

Statistical Area (CSA) with approximately 7.4 million people,

including the nine counties bordering San Francisco Bay (Alameda,

Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara,

Solano, and Sonoma) as well as Santa Cruz and San Benito

Counties, making it the fifth largest CSA in the United States. The

combined urban area of San Jose and San Francisco is the 43rd

largest urban area in the world.

The Bay Area is anchored by three major cities. San Francisco is the

cultural and financial center of the metropolitan area and Northern

California in general. It is the second-most densely populated major

city (population greater than 200,000) in the United States. The

largest city in the Bay Area in terms of both land and population is

San Jose, which is located in the South Bay and is part of the world

renowned technology hub known as Silicon Valley. Oakland, the

third most populous city, is a central hub for the East Bay, is a major

industrial center, and contains the Port of Oakland, the fifth busiest

container port in the United States. The region’s northern counties

encompass California’s famous Wine Country, home to hundreds of

vineyards and wineries while the region’s Pacific Ocean coastline

hosts numerous beaches.

The San Francisco Bay Area has the 2nd most Fortune 500

Companies in the United States, and is known for its natural beauty,

liberal politics, entrepreneurship, and diversity. With excellent

colleges in proximity, the area ranks second in highest density of

college graduates, and performs above the state median household

income in the 2010 census. Based on a 2013 population report from

the California Department of Finance, the Bay Area is the only region

in California where the rate of people migrating in from other areas

in the United States is greater than the rate of those leaving the

region. Additionally, In 2011, the San Francisco Bay Area had a GDP

of $535 billion, which would rank 19th among countries.

Location Overview

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