1314 Q STREET

TURTON

M I D T O W N F O U R P L E X A N D L A N D F O R S A L E

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PROPERT YT HE

TURTON COMMERCIAL IS PLEASED TO PRESENT A VALUE-ADD INVESMTENT NEAR THE R STREET CORRIDOR WITH POTENTIAL DEVELOPMENT OPPORTUNITY

1314 Q Street (The “Property”) is a 100% leased multifamily property, located near the coveted R street corridor. The property is a historic building in the Queen Anne Victorian style with charming architectural elements and many modern updates, including central heating and air conditioning. Lovingly maintained with pride of ownership, the property features four (4) spacious apartments with Hardwood Flooring throughout. The beautifully restored two-bedroom, two-bathroom unit upstairs could be a stately home for an owner-user seeking an attractive residential loan. The three units on the ground level are studio apartments. The property also has a large attic, providing additional storage space, a scarce amenity in Midtown. The structure measures approximately 3102 square feet total, and it is situated on a 6,534 square foot lot. The front yard and large back yard are landscaped with wonderful foliage and shade trees. Off-street parking is provided in the front driveway and four additional parking stalls in the alley for residents’ use.

The Property represents a rare value-add opportunity with potential for an infill development project. The property currently generates a Gross Annual Income of $63,180. The current rental rates of the units are on average below market rate by 25% and the parking does not generate any income. Parking is a premium, with the construction of new offices and retail spaces on the R Street corridor. Parking rates in the area range from $75 to $125 per stall per month, which could be leased to apartment residents or nearby office tenants.

Based on current income, estimated expenses, and market capitalization rate of 2.77%, the value of the four-unit building is $1,050,000. The potential income of the property yields a capitalization rate of 5.0-5.25% approximately.

The Purchase Price of $1,350,000 for the entire Property is predicated upon the assumption the rear portion of the parcel, approximately 2400 SF, could be subdivided for future development. The parcel is a long 160 foot by 40 foot lot with alley access provides several feasible options to further increase the cash flow and enhance the value of the asset. The configuration of the lot offers a possible infill development opportunity of additional residential units, such as, a single family residences, townhomes, or a multi-family apartment building with parking garage underneath.

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LOCATIONPROPER T Y

1314 Q Street is situated in the rapidly improving Historic R Street District, walking distance to one of the most thriving areas of Midtown, bustling creative energy and exciting nightlife. The blocks of R Street are full of bountiful options for fantastic restaurants, outstanding entertainment, and local artists. The property stands to benefit from the continued investment into the R Street Corridors as well as the several active developments at 15th & Q Street, 16th & R Street, 17th & S Street, 19th & Q Street, and 20th & Q Street.

Several recent major redevelopment projects surround the property, large infill housing and exciting mixed-use project, indicating regional growth and an increased emphasis on inner-city living. Specifically, retailers, office tenants and residents alike love the creative industrial feel of R Street’s former warehouse district. There are numerous recently completed development projects or ones that are scheduled or underway. Ice Blocks is mixed-use project entailing 100,000SF of commercial space over 70,000 Retail Space and 140 Residential Units. Warehouse Artist Lofts (WAL) and Capital Wholesale Electric Building, which is now the offices of HGA Architecture and MarketOne Builders. Furniture dealer Miles Treaster & Associates also recently relocated to the area. The ICE Blocks development project located three blocks east will add an additional 60,000 SF of retail along with 97,000 SF of office tenants and 145 residential units. Other projects in the area include 32 single-family townhomes and 450 apartments under construction by SKK Development, New Helvetia Theatre conversion into 26 apartments and restaurant/bar space by Cordano Company, Safeway Marketplace by Petrovich Development, and 16Powerhouse by D&S Development. Nearby amenities include Shoki Ramen House, WAL Public Market, Fish Face Poke Bar, Bottle and Barlow, MetroJuice Company, Benjamin’s Shoes, Old Gold, Ace of Spades, Shady Lady, Burgers and Brew, Café Bernardo, R15, Iron Horse Tavern, Magpie/Nido Bakery Cafe, Dos Coyotes Border Café, Roxie Deli & BBQ, European Wax Center, Fox & Goose Pub, ARTHOUSE, among others.

The property is adjacent to the 13th Street Light Rail Station connecting residents to Downtown, East Sacramento and Folsom. The Property also boasts easy access to Interstate 80, Highway 50 as well as Interstate 5. This place is ideal for creatives, state workers, professionals, and anyone who seeks a place to work, live, and play at the core of the Capitol of California.

MIDTOWN

CENTRALLY LOCATED BETWEEN MULTIPLE MIDTOWN DISTRICTS, INCLUDING THE R STREET CORRIDOR, THE HANDLE DISTRICT, AND LAVENDER HEIGHTS

1314 Q STREET

16TH

TRUITT BARK PARK

EVIVA MIDTOWN

CAL. BROWNSTONES

ICE BLOCKS

17 & S DEV.

1430 Q DEV.

STATE CAPITOL

FREMONT PARK

ROOSEVELT PARK

R STREET CORRIDOR

DOWNTOWN

15TH

P

QR

BOTTLE & BARLOWFISH FACE POKE

W.A.L.

ELIXIR

FOX & GOOSEOPEN STUDIOS

TEA SHOP

SHOKI RAMEN HOUSE

MARKET 5-ONE-5RALEY’S CONCEPT

SHADY LADYBURGERS & BREW

ACE OF SPADESR15

CAFE BERNARDONIDO

IRON HORSEVITO’S PIZZA BY THE SLICE

TEQUILA & TAQUERIA

ORCHID THAIINSIGHT COFFEE

MAGPIE CAFE

UNIVERSITY OF BEERNISHIKI SUSHI

QUIZNO’S

UNIT FEATURES Hardwood Flooring/ Tile Two Living Rooms in the Larger Unit Concrete Slab Wood Frame Construction Coin-Op Laundry Room OPERATING STATEMENT INCOME Current PotentialScheduled Annual Rent $63,180.00 $72,000.00

Monthly Rent Roll: Upstairs $2,195.00 $3,000.00 Unit #1 studio $1,395.00 $1,000.00 Unit #2 studio $935.00 $1,000.00 Unit #3 studio $740.00 $1,000.00 Less Vacancy Reserve - 3% $(1,895.40) $(2,160.00)Effective Rental Income $61,284.60 $69,840.00 Other Income Parking - 5 stalls $- $6,900.00 Utility Bill-Back $540.00 $1,400.00 Effective Gross Income $61,284.60 $76,740.00

EXPENSES Current PotentialProperty Taxes $14,156.25 $14,156.25 Insurance $1,399.00 $1,399.00 Water, Sewer & Garbage $5,580.00 $5,580.00 Landscaping $1,200.00 $1,200.00 Other Maintenance $3,200.00 $3,200.00 Management Fee - 5% $3,064.23 $3,837.00 Operating Reserves $800.00 $800.00 Total Estimate Expenses $29,399.48 $30,172.25 Expenses as % of Gross Income 48% 39%Expenses per Unit $7,349.87 $7,543.06 Expenses per SF $9.48 $9.73 Net Operating Income $31,885.12 $46,567.75 Cap Rate 3.04% 4.44%Building Value $1,050,000 $1,050,000 Land Value (if Buyer splits the lot) $200,000 $200,000

PRICE $1,250,000 $1,250,000

PROPERTY INFORMATION

PRICE $1,250,000 Price per Unit $312,500 Price per Sq. Ft. $402.97 Current Cap Rate 2.28% Pro Forma CAP Rate 4.44% Current GRM 23.13 Pro Forma GRM 17.36

RENT ROLL

Unit Number Unit Type Current PotentialUnit 1 2bd/2bath $2,195 $3,000 Unit 2 Studio $1,000 $1,000 Unit 3 Studio $935 $1,000 Unit 4 Studio $740 $1,000 Total Monthly Income $4,550 $6,000

PRICING SUMMARY Address 1314 Q Street City, State, Zip Sacramento, CA 95811 Year Built/Remodeled 1895 Number of Units 4 Number of Stories 3 Parking 5 stalls Total Building Sq. Ft. 3102 Approx. Lot Size(Acres) 0.15 APN 006-0285-007-0000

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ECONOMICSPROPER T Y

In the first quarter of 2018, the multi-family occupancy rate in Downtown Sacramento rose to 96%. The asking rents for two-bedroom apartments in Midtown Sacramento ranges from $2,200 to $3,000+ per month, depending on the offering of amenities and quality of finishes.

Multifamily properties have become the most popular investment category in Sacramento. Tenant demand is insatiable for apartment rentals in the Urban Core especially. Vacancy rates have fallen to historic lows, a staggering 2.6 percent. Sacramento’s population continues to grow at 1.5 percent a year, faster than any major city in California, and construction of new units is underway but is not nearly enough. Owners of historic multifamily properties can enjoy the benefits of increasing cash flow and long-term, rock-solid stability of their investment.

UNIT FEATURES

Hardwood Flooring/ Tile Two Living Rooms in the Larger Unit Concrete Slab Wood Frame Construction Coin-Op Laundry Room

OPERATINg STATEMENT

INCOME Current PotentialScheduled Annual Rent $63,180.00 $72,000.00

Monthly Rent Roll: Upstairs $2,195.00 $3,000.00Unit #1 studio $1,395.00 $1,000.00 Unit #2 studio $935.00 $1,000.00 Unit #3 studio $740.00 $1,000.00 Less Vacancy Reserve - 3% $(1,895.40) $(2,160.00)Effective Rental Income $61,284.60 $69,840.00 Other Income Parking - 5 stalls $- $6,900.00 Utility Bill-Back $540.00 $1,400.00 Effective Gross Income $61,284.60 $76,740.00

EXPENSES Current PotentialProperty Taxes Insurance $1,399.00 $1,399.00Water, Sewer & Garbage $5,580.00 $5,580.00 Landscaping $1,200.00 $1,200.00Other Maintenance $3,200.00 $3,200.00 Management Fee - 5% $3,064.23 $3,837.00 Operating Reserves $800.00 $800.00 Total Estimate Expenses Expenses as % of Gross Income Expenses per Unit Expenses per SF Net Operating Income Cap RateBuilding Value $1,050,000 $1,050,000Land Value (if Buyer splits the lot)

PRICE

PROPERTY INFORMATION

PRICEPrice per UnitPrice per Sq. Ft. Current Cap RatePro Forma CAP RateCurrent GRMPro Forma GRM

RENT ROLL

Unit Number Unit Type Current PotentialUnit 1 2bd/2bath $2,195 $3,000 Unit 2 Studio $1,000 $1,000 Unit 3 Studio $935 $1,000Unit 4 Studio $740 $1,000 Total Monthly Income $4,550 $6,000

PRICINg SUMMARY

AddressCity, State, Zip YearNumber of UnitsNumber of StoriesParkingTotal Building Sq. Ft. Approx. Lot Size(Acres)APN

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ECONOMICSPROPER T Y

In the first quarter of 2018, the multi-family occupancy rate in Downtown Sacramento rose to 96%. The asking rents for two-bedroom apartments in Midtown Sacramento ranges from $2,200 to $3,000+ per month, depending on the offering of amenities and quality of finishes.

Multifamily properties have become the most popular investment category in Sacramento. Tenant demand is insatiable for apartment rentals in the Urban Core especially. Vacancy rates have fallen to historic lows, a staggering 2.6 percent. Sacramento’s population continues to grow at 1.5 percent a year, faster than any major city in California, and construction of new units is underway but is not nearly enough. Owners of historic multifamily properties can enjoy the benefits of increasing cash flow and long-term, rock-solid stability of their investment.

UNIT FEATURES

Hardwood Flooring/ Tile Two Living Rooms in the Larger Unit Concrete Slab Wood Frame Construction Coin-Op Laundry Room

OPERATINg STATEMENT

INCOME Current PotentialScheduled Annual Rent $63,180.00 $86,220.00

Monthly Rent Roll: Upstairs $2,195.00 $3,000.00Unit #1 studio $1,395.00 $1,395.00 Unit #2 studio $935.00 $1,395.00 Unit #3 studio $740.00 $1,395.00 Less Vacancy Reserve - 3% $(1,895.40) $(2,586.60)Effective Rental Income $61,284.60 $83,633.40Other Income Parking - 5 stalls $- $5,700.00 Utility Bill-Back $540.00 $1,400.00 Effective Gross Income $61,284.60 $89,333.40

EXPENSES Current PotentialProperty Taxes $15,288.75 $15,288.75Insurance $1,399.00 $1,399.00Water, Sewer & Garbage $5,580.00 $5,580.00 Landscaping $1,200.00 $1,200.00Other Maintenance $3,200.00 $3,200.00 Management Fee - 5% $3,064.23 $4,466.67 Operating Reserves $800.00 $800.00 Total Estimate Expenses $30,531.98 $31,934.42 Expenses as % of Gross Income 50% 36%Expenses per Unit $7,633.00 $7,983.61Expenses per SF $9.84 $10.29Net Operating Income $30,752.62 $57,398.98 Cap Rate 2.77% 5.17%Building Value $1,050,000 $1,050,000Land Value (if Buyer splits the lot) $240,000 $240,000

PRICE $1,350,000 $1,350,000

PROPERTY INFORMATION

PRICE $1,350,00

Price per Unit $337,500Price per Sq. Ft. $435.20Current Cap Rate 2.77%Pro Forma CAP Rate 5.17%Current GRM 21.37Pro Forma GRM 15.66

RENT ROLL

Unit Number Unit Type Current PotentialUnit 1 2bd/2bath $2,195 $3,000 Unit 2 Studio $1,395 $1,395 Unit 3 Studio $935 $1,395Unit 4 Studio $740 $1,395 Total Monthly Income $4,550 $7,185

PRICINg SUMMARY

AddressCity, State, Zip Year BuiltNumber of UnitsNumber of StoriesParkingTotal Building Sq. Ft. Approx. Lot Size(Acres)APN

1314 Q Street1314 Street Sacramento, CA 95811Sacramento, CA 95811 1895189544335 stallsstalls5 31023102 0.150.15006-006-0285-007-00000285-007-0000

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ECONOMICSPROPER T Y

In the first quarter of 2018, the multi-family occupancy rate in Downtown Sacramento rose to 96%. The asking rents for two-bedroom apartments in Midtown Sacramento ranges from $2,200 to $3,000+ per month, depending on the offering of amenities and quality of finishes.

Multifamily properties have become the most popular investment category in Sacramento. Tenant demand is insatiable for apartment rentals in the Urban Core especially. Vacancy rates have fallen to historic lows, a staggering 2.6 percent. Sacramento’s population continues to grow at 1.5 percent a year, faster than any major city in California, and construction of new units is underway but is not nearly enough. Owners of historic multifamily properties can enjoy the benefits of increasing cash flow and long-term, rock-solid stability of their investment.

Sacramento, CA 95811Zoning RMX-SP

TURTON

2409 L STREET, STE 200, SACRAMENTO, CA 95816916.573.3300 TURTONCOM.COM

PATRICK STELMACHD.R.E. LIC. 01964999916.573.3314PATRICKSTELMACH@TURTONCOM.COM

ZACH HOOKERD.R.E. LIC. 02013574916.573.3315 ZACHARYHOOKER@TURTONCOM.COM

KEN TURTOND.R.E. LIC. 01219637916.573.3300KENTURTON@TURTONCOM.COM