PROPERTY SUMMARY - LoopNet...was San Joaquin County’s first “green” built multi-family...

O F F E R I N G M E M O R A N D U M

2 0 4 E . B I A N C H I R O A D S T O C K T O N , C A L I F O R N I A 9 5 2 0 7

Exclusively Offered By: Adam Lucatello

Senior Vice President CA License No. 01336956

Direct: 209.475.5118

[email protected]

Andy Hodgson Vice President CA License No. 01796017

Direct: 209.475.5129

[email protected]

M i C a s a A p a r t m e n t s – 5 8 U n i t s M i C a s a A p a r t m e n t s – 5 8 U n i t s

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

presented to the recipient (the “Recipient”) by Colliers International (“Colliers”) as part

of Colliers’ efforts to market for sale the real property located at 204 E. Bianchi Road,

Stockton, CA 95207 (“The Property”). Colliers 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.

Colliers 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 on Colliers, the Owner or this Memoran-

dum, 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 Colliers.

PLEASE NOTE THE FOLLOWING:

Colliers, 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 Colliers

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 completeness 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, Colliers 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, Colliers

will provide the Recipient with copies of all referenced contracts and other

documents. Colliers 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. Colliers 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. Colliers reserves the right to return of this Memorandum and

the material in it and any other material provided by Colliers to the Recipient at any

time. Acceptance of this Memorandum by the Recipient constitutes acceptance of

the terms and conditions outlined above.

C O N F I D E N T I A L I T Y & D I S C L A I M E R

MI CASA APARTMENTS

58 UNITS

204 E. BIANCHI ROAD, STOCKTON, CA 95207

PROPERTY SUMMARY

FINANCIAL SUMMARY

PURCHASE PRICE $5,162,400

PRICE PER UNIT $89,007

PRICE PER SF $114.25

RENTABLE SF ±45,185

ACTUAL CAP RATE 7.42%

PROFORMA CAP RATE 8.04%

CURRENT GRM 7.55

PROFORMA GRM 7.19

Please do not visit property without

an appointment.

CENTRAL VALLEY INVESTMENT TEAM

Adam Lucatello


Direct: 209.475.5118

[email protected]

Andy Hodgson

Vice President CA License No. 01796017

Direct: 209.475.5129

[email protected]

MI CASA APARTMENTS 204 E. BIANCHI ROAD, STOCKTON, CA 95207

MI CASA APARTMENTS

Colliers International’s Central Valley Investment Team is pleased to present

Mi Casa Apartments. Mi Casa Apartments is situated in one of Stockton’s

most up and coming apartment sub-markets. Many of the area complexes,

including Mi Casa Apartments, are experiencing substantial rent growth due

to the numerous neighborhood upgrades, remodels and affordable housing

projects. Mi Casa Apartments is one of the few remaining area sites that

exhibits the perfect upgrade potential.

Mi Casa Apartments is a gated, 58 unit complex that is situated on over

2 acres of land and enjoys an excellent unit mix with over 60% of the complex

townhome units. Two of the units are 3-bedroom/1 and a half bath town-

homes; 18 of the units are 2 bedroom/1 and a half bath townhomes; 16 of

the units are 1-bedroom/1 bath townhomes; and 22 units are 1-bedroom/

1-bath flat units.

Mi Casa Apartments has an excellent occupancy history and most of the units

have undergone a remodel with new tile floors, new cabinets, new dual pane

windows, and much more. Additionally, the complex provides its tenants with

the ability to rent the site’s 3,500 square foot recreation room for a variety of

events, ranging from birthday parties, holiday celebrations and other private

parties. This recreation room provides an owner with excellent additional

income and/or future apartment development opportunity.

Excellent unit mix - Over 60% of the complex is comprised of Townhome units

Rare 50+ unit opportunity in Stockton

Lots of recent upgrades including new cabinets, countertops, flooring & dual

pane windows

Rentable 3,500 square foot recreation room - additional income source

Excellent cash flow opportunity with great rental upside

INVESTMENT HIGHLIGHTS


ADDRESS 204 E. Bianchi Road

Stockton, CA 95207

COUNTY San Joaquin County

APN # 104-260-11

YEAR BUILT 1970

RENTABLE SF ±45,185

LAND AREA (ACRES) ±1.94

LAND AREA (SF) ±84,506

TOTAL UNITS 58

CONSTRUCTION TYPE Wood frame

SIDING MATERIAL Stucco

FOUNDATION Perimeter

ROOF TYPE Flat, built up membrane

HVAC Wall and roof mounted heat & air

UTILITIES Tenant - Electricity/Gas

Landlord - Water/Sewer/Garbage

PROPERTY SUMMARY


Villa Monterey Apartments is an outstanding 45 unit apartment complex that was

recently acquired and fully rehabbed by one of the area’s prominent apartment

builders, Visionary Home Builders of California. Nicknamed as the “Jewel of the Park,”

Villa Monterey was the recipient of various awards related to its construction. The site

was San Joaquin County’s first “green” built multi-family complex.

Coventry Apartments were acquired in 2013 by Service First of Northern California,

and then went through a complete, extensive rehab. The site was made into a

community of 46 family units, which includes a swimming pool and a children’s

playground, thoroughly enhancing the area’s desirability.

Adobe Hacienda Apartments is the next large scale affordable housing project

scheduled for the immediate neighborhood. Once again, one of the area’s most

prominent apartment builders, Visionary Home Builders of California, has made a

significant investment into the area. The project will entail a complete rehab of all 171

units. Stockton is excited to watch the progress of Visionary’s latest endeavor.


WHAT IS HAPPENING IN THE IMMEDIATE NEIGHBORHOOD

This small neighborhood pocket is nestled right off March Lane, one of Stockton’s busiest retail thoroughfares, and connects the neighborhood to

Interstate 5 (I-5). This pocket has become well-known for its recent surge in rents, primarily due to the extensive rehab improvements of the area,

especially to the area’s apartment market. The neighborhood is comprised of approximately 12 - 15 apartment complexes of various sizes, most of

which have gone, or are undergoing, rehabs. Here is a list of some of the areas rehabbed apartment complexes:

Jamestown Apartments is a 50 unit apartment complex that has undergone an

extensive rehabilitation by its current owners. Improvements include laminate wood

flooring, dual pane windows, granite counter tops, stainless steel appliances and new

cabinetry. Market rate apartment complex.

Kentfield Apartments is a 90 unit apartment complex that was acquired by BRIDGE

Housing. It was part of a coordinated neighborhood revitalization program, initiated

by the City of Stockton. BRIDGE Housing operates over 800 units. They acquired the

Kentfield Apartments and completed a major rehabilitation of the property in 2009.

The apartments are conveniently located near a park, a mall, schools, and public

transportation

Emerald Estates is a 120 unit apartment complex in the Kentfield neighborhood and

is owned by one of Stockton’s largest local apartment owners. The complex offers

one & two bedroom apartments and two & three bedroom townhomes for rent in

Stockton, California. Residents enjoy 2 sparkling swimming pools, beautifully matured

landscaping and the convenience of having on-site laundry facilities. Emerald Estates

has professional on-site management, 24 hour emergency maintenance and courtesy

patrol.


NEIGHBORHOOD AER IAL

ADOBE HACIENDA APARTMENTS

COVENTRY APARTMENTS

EMERALD ESTATES APARTMENTS

PACIFIC VILLAS APARTMENTS

MI CASA APARTMENTS

VILLA MONTEREY APARTMENTS

JAMESTOWN APARTMENTS

KENTFIELD APARTMENTS

FINANCIAL SUMMARY

UNITS UNIT TYPE SQ. FT. CURRENT MARKET

22 1 x 1 ±630 $800 $850

16 1 x 1 TH ±700 $1,000 $1,050

18 2 x 1.5 TH ±895 $1,195 $1,250

2 3 x 1.5 TH ±1,170 $1,450 $1,450

58

UNIT MIX INCOME / OPERATING EXPENSES

PAID BY METHOD SUPPLIED BY

Electricity Tenant Direct PG&E

Gas Tenant Direct PG&E

Water/Sewer Owner N/A City of Stockton

Garbage Owner N/A Waste Management

UTILITIES

Current Proforma % of PRI Per Unit Monthly

Potential Rental Income $683,940 $718,200 $12,383 $59,850

Less: Vacancy $20,518 $21,546 $371 $1,796

Total Rental Income $663,422 $696,654 $12,011 $58,055

Laundry Income $9,600 $9,600 $166 $800

Hall Income $8,400 $8,400 $145 $700

Total Operating Income $681,422 $714,654 $12,322 $59,555

New Property Taxes (1.2234%) $63,156 $63,156 9% $1,089 $5,263

Direct Assessments $833 $833 0% $14 $69

Insurance $10,700 $10,700 1% $184 $892

PG&E $14,160 $14,160 2% $244 $1,180

Waste Management $18,492 $18,492 3% $319 $1,541

Sewer $25,272 $25,272 4% $436 $2,106

Water $26,400 $26,400 4% $455 $2,200

Pest Control $2,400 $2,400 0% $41 $200

Payroll - On-Site Manager $29,120 $29,120 4% $502 $2,427

Payroll - Maintenance Manager $29,120 $29,120 4% $502 $2,427

Worker’s Comp $5,000 $5,000 1% $86 $417

Off-Site Manager $27,358 $28,728 4% $495 $2,394

Repair & Maintenance $23,200 $23,200 3% $400 $1,933

Turnover $14,500 $14,500 2% $250 $1,208

Capital Reserves $8,700 $8,700 1% $150 $725

$298,411 $299,781 42% $5,169 $24,982 Total Expenses

Net Operating Income $383,011 $414,873 $34,573

Price $5,162,400 $5,162,400

Cap Rate $89,007 $89,007

Price Per Unit 7.42% 8.04%

GRM 7.55 7.19


Please do not visit property without

an appointment.

CENTRAL VALLEY INVESTMENT TEAM

Adam Lucatello


Direct: 209.475.5118

[email protected]

Andy Hodgson

Vice President CA License No. 01796017

Direct: 209.475.5129

[email protected]

3

Brentwood Court Apartments - 7726 Brentwood Drive, Stockton, CA

COE In Escrow

Price $2,200,000

Price Per Unit $104,761

Cap Rate N/A

Year Built 1960

# of Units 21

El Dorado Apartments - 1905 N. El Dorado Street, Stockton, CA

COE 12/19/17

Price $1,900,000


Cap Rate 6.68%

Year Built 1971

# of Units 20

Jamestown Apartments - 126 E. Jamestown Street, Stockton, CA

COE In Escrow

Price $5,300,000


Cap Rate N/A

Year Built 1965

# of Units 50

1

4

Meridian Village Apartments - 8003 N. El Dorado Street, Stockton, CA

COE 4/16/18

Price $5,210,000


Cap Rate 5.86%

Year Built 1980

# of Units 52

Blue Ridge Circle Apartments - 3268 Blue Ridge Circle, Stockton, CA

COE In Escrow

Price $5,700,000


Cap Rate N/A

Year Built 1977

# of Units 52

2

Inglewood Oaks Apartments - 7007 Inglewood Avenue, Stockton, CA

6 COE 9/29/17

Price $6,000,100


Cap Rate 6.50%

Year Built 1972

# of Units 64


SALE COMPARABLES

Comments: Property is currently in escrow. Comments: (16) one-bedroom, (32) two-bedroom and (4) three-bedroom units.

Comments: Property is currently in escrow. All units are two-bedroom units. Comments: Property is currently in escrow. Unit mix consists of (26) one-

bedroom and (24) two-bedroom units.

Comments: All units are one-bedroom units. Comments: (4) one-bedroom, (22) two-bedroom, (2) three-bedroom units.

5

SAN JOAQUIN COUNTY

San Joaquin County is the northernmost county in the San Joaquin Valley and is comprised of approximately 700,000 people in seven cities and

spans nearly 1,400 square miles. The county’s strategic location is a gateway to Silicon Valley, the Bay Area, the Yosemite Basin and the State

Capitol. The region is a magnet for growing businesses and people seeking a high quality of life due to affordable housing, superior transportation

infrastructure and ample amount of open space for business expansion. Much like the other counties of the San Joaquin Valley, San Joaquin

County is heavily agricultural. However, the San Joaquin County economy is more diverse, primarily as a result of its proximity to Sacramento County

and the Bay Area. San Joaquin County has a lower concentration of farm and government jobs, and a higher concentration in transportation and

warehousing jobs relative to the rest of the San Joaquin Valley.

Employers in San Joaquin County benefit from a diversified economy and a growing and productive labor pool. The County’s largest employee

base is derived from government, education, healthcare, and military sectors.

CITY OF STOCKTON

With a population of nearly 300,000 residents, Stockton is the 13th largest city in California in population and one of the largest in the Central Valley.

Stockton is located along Interstate 5, State Route 99 and State Route 4 in the California Central Valley. Stockton is connected westward with the

San Francisco Bay by the San Joaquin River’s 78 mile channel and is one of the state’s two inland sea ports. In and around Stockton are thousands

of miles of waterways and rivers that make up the California Delta.

Stockton is located 60 miles east of the San Francisco Bay Area, 83 miles east of San Francisco, and 45 miles south of Sacramento.


REGIONAL MAP

LODI

Adam Lucatello

Senior Vice President

CA License No. 01336956

Direct: 209.475.5118

[email protected]

Andy Hodgson

Vice President

CA License No. 01796017

Direct: 209.475.5129

[email protected]

EXCLUSIVELY OFFERED BY:


PROPERTY SUMMARY - LoopNet...was San Joaquin County’s first “green” built multi-family...

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Transcript of PROPERTY SUMMARY - LoopNet...was San Joaquin County’s first “green” built multi-family...