4 unit multi-family investment opportunity 1819 e grove...investment highlights marcus &...

1 8 1 9 E G r o v eA v e n u e

O r a n g e , C A

4 U n i t M u l t i - F a m i l y I n v e s t m e n t O p p o r t u n i t y

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

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

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

N O N - E N D O R S E M E N T N O T I C EMarcus & 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. Activity ID: XXXXXX

A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N L Y .P L E A S E C O N S U L T Y O U R M A R C U S & M I L L I C H A P A G E N T F O R M O R E D E T A I L S .

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

P R O P E R T YL O G O

M ark Brid ge

First Vice P resident InvestmentsDirector, National Multi Housing

GroupDirect : (949) 419 3297

M ark.Brid [email protected] gegroup.com

19800 M acArthur Blvd #150, Irvine, CA 92612

CA L icense: 01316702

E X C L U S I V E L Y L I S T E D B Y

TABLE OF CONTENTS

R E N T C O M PA R A B L E S

04

S A L E S C O M PA R A B L E S

05M A R K E T O V E RV I E W

06

E X E C U T I V E S U M M A RY

01 P R O P E R T Y D E S C R I P T I O N 02

F I NA N C I A L A NA LY S I S

03

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 the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap

Executive Summary

o f f e r i n g s u m m a r y

s u m m a r y o f t e r m s

i n v e s t m e n t o v e r v i e w

i n v e s t m e n t h i g h l i g h t s

s e c t i o n 1

O F F E R I N G S U M M A R Y

PROPERT Y NAME

Gross Square Feet 3,460 SF

Number of Buildings 1

Number of Stories 1

Year Built 1963

Lot Size 0.15 Acres

$1,225,000 4 TotalUnits

E X E C U T I V E S U M M A R Y8

I N T E R E S T O F F E R E D• 100% Fee Interest

T E R M S O F S A L E

• Cash to New Loan

P R O P E R T Y T O U R S• Prospective purchasers are encouraged to visit the subject property

prior to submitting offers. However, all property tours must be arranged with the Marcus & Millichap listing agents. At no time shall the tenants, on-site management or staff be contacted without prior approval.

S U M M A R Y O F T E R M S

E X E C U T I V E S U M M A R Y 9

E X E C U T I V E S U M M A R Y10

I N V E S T M E N T H I G H L I G H T S

Marcus & Millichap, as the exclusive listing agent, is pleased to present 1819 E Grove Ave, a four-unit multifamily property located in the City of Orange, California. The property was extensively

renovated in 2018. This included new double pane vinyl windows, new exterior paint, new asphalt, new kitchen countertops and cabinets, new bathroom vanities, and some new flooring. Each unit

also has its own built in washer and dryer hookup.

This property is in a good central Orange location within walking distance to four major retail centers that consist of the most popular restaurants and shops in Orange. The property is also in

close proximity to the CA-55 Freeway, which allow tenants easy access to nearby attractions such as Disneyland, Honda Center and Angel Stadium.

1819 E GroveAvenue

1 8 1 9 E G r o v e A v e , O r a n g e , C A 9 2 8 6 5

Great Unit Mix of Four 2 Bed / 1 Bath Units

2018 Renovation: New Windows, Asphalt, Paint

New Cabinets, Countertops, Vanities, and Flooring

In Unit Washer & Dryer Hookups, Gargages

Close Promixity to Angel Stadium, Honda Center, Camelot Golfland, and The Village at Orange Shopping Center.

E X E C U T I V E S U M M A R Y 11

Property Description

t h e p r o p e r t y

l o c a l a n d r e g i o n a l m a p s

s i t e p l a n

a m e n i t i e s

s e c t i o n 2

P R O P E R T Y D E S C R I P T I O N14

4 UNITS


P R O P E R T Y D E S C R I P T I O N 15

PROPERT Y DESCRIPTION // 1819 E Grove Ave

Number of Units 4Year Built 1963Number of Buildings 1Number of Stories 1Acreage 0.15 AcresExterior Construction StuccoRoof Type PitchedTotal Square Footage 3,462 SF

UNIT TYPE SQUARE FOOTAGE # OF UNITS CURRENT RENT2 Bedroom / 1 Bath 865 SF 3 $1,6002 Bedroom / 1 Bath 865 SF 1 $1,700


Lan

e Aven

ue S

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e Pa r

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L o n d o n t o w n e L a n e

Gre

y fr i

a r L

ane

Wa t e r g a t e L a n e

1591

- 2 L

ane

Ap

1 59 1

- 2 L

ane

Ap

1 5 9 1 - 3 L a n e Ap

1 5 9 1 - 4 L a n e Ap 1591-5 Lan

e Ap

1 5 9 1 - 6 L an e Ap

1 5 9 1 - 7 L a n e Ap

1591-8 Lan

e Ap

B a k e r s � e l d D r i v e

I N S E R T S I T E P L A N

C o m m o n A r e aA M E N I T I E S

• Ample Street and Garage Parking

• Walkable to Various Restaurants and

Shops

• Newly Replaced Windows and Fresh Paint

on the Exterior of the Building

• Nicely Landscaped with Grass, Trees, &

Flowers


L i v i n g A r e aA M E N I T I E S

• Washer and Dryer Located in All Units

• All Two Bedroom / 1 Bathroom Units

• New Cabinets, Countertops, & Flooring

• Window Air Conditioning for All Units

• Individually Metered For Gas & Electric


RECENT CAPITALIMPROVEMENTS // 1819 E Grove Ave

• Interior Upgrades Include; New Cabinets, Countertops, and Flooring• New Exterior Windows and Paint• Brand New Flooring in All Four Units• New Asphalt Also Put in on the Property


Financial Analysis

p r o p e r t y d e t a i l s

p r i c i n g d e t a i l s

o p e r a t i n g s t a t e m e n t

r e n t r o l l s u m m a r y

s e c t i o n 3

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Universal Building Maint LLC 5,003

Social Services Agency 4,204

Irvine Medical Center 4,000

Alstyle Apparel LLC 3,765

Uc Irvine Medical Center 3,000

Bergen Brunswig Drug Company 2,845

Santa Ana College 2,300

St Joseph Hospital of Orange 2,100

Public Fclities Resources Dept 2,000

Alstyle AP & Activewear MGT Co 1,800

Uc Irvine Hlth Rgonal Burn Ctr 1,757

Pediatric Cancer Research 1,600

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 19,436 147,030 481,785

2010 Census Pop 18,247 140,489 455,891

2017 Estimate HH 6,003 46,644 148,750

2010 Census HH 5,630 44,189 139,860

Median HH Income $82,119 $81,587 $76,111

Per Capita Income $34,385 $35,755 $32,854

Average HH Income $110,911 $111,403 $105,042

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

4 2 Bed / 1 Bath 865

4 Total 3,460

VITAL DATA

Price $1,225,000 CURRENT MARKET

Down Payment 30% / $367,500 CAP Rate 4.41% 4.69%

Loan Amount $857,500 GRM 15.71 15.01

Loan Type Proposed NewNet Operating Income

$53,976 $57,468

Interest Rate / Amortization 4.40% / 30 YearsNet Cash Flow After Debt Service

0.67% / $2,448 1.62% / $5,940

Price/Unit $306,250 Total Return 4.50% / $16,528 5.62% / $20,652

Price/SF $354.05

Number of Units 4

Rentable Square Feet 3,460

Year Built 1963

Lot Size 0.15 acre(s)

FINANCIAL ANALYSIS

5.

PRICING DETAIL

FINANCIAL ANALYSIS

5.

OPERATING STATEMENT

FINANCIAL ANALYSIS

5.

RENT ROLL SUMMARY

FINANCIAL ANALYSIS

5.

RENT ROLL DETAIL

Rent Comparables

l o c a t i o n m a p

c o m p a r a b l e s

s e c t i o n 4

2

3

1

4 UNITS

P R O P E R T YL O G O

R E N T C O M P A R A B L E S32

PROPERTIES# OF

UNIT SAVER AGE

SQUARE FEETDISTANCE FROMSUBJECT (MILES)

1819 E Grove Ave, Orange, CA 92865 4 865

1 1025 N Tustin St , Orange CA 92867 46 1,200 1.2

2 201 N Way field, Orange, CA 92867 100 875 2.4

3 1450 E Del Mar Ave, Orange, CA 92865 105 900 0.5

RENT COMPARABLES // 1819 E Grove Avenue

R E N T C O M P A R A B L E S 33

R o b i n M e a d o w s O r a n g e1025 N Tust in St , Orange, CA 92867

1

UNIT T YPE UNIT S SQUARE FEET RENT RENT/SF2 Bed / 1 Bath 3 865 $1,600 $1.852 Bed / 1 Bath 1 865 $1,700 $1.97

TOTAL/WTD. AVG. 4 3,460 $1,650 $1.88

TotalUnits4 Total

Occupancy100% YearBuilt 19631 8 1 9 E G r o v e A v e

Orange, CA 92865

UNIT T YPE UNIT S SQUARE FEET RENT RENT/SF2 Bed / 1 Bath 30 1,200 $1,800 $1.50

TOTAL/WTD. AVG. 30 1,200 $1,800 $1.50

TotalUnits46 Total

Occupancy100% YearBuilt 1972

R E N T C O M P A R A B L E S34

O r a n g e P l a z a1450 E Del Mar Ave, Orange, CA 92865

3

O r a n g e w o o d V i l l a201 N Wayf ie ld St , Orange, CA 92867

2

UNIT T YPE UNIT S SQUARE FEET RENT RENT/SF2 Bed / 1 Bath 25 825 $1,765 $2.142 Bed / 1 Bath 35 930 $1,845 $1.98

TOTAL/WTD. AVG. 60 886 $1,805 $2.04

UNIT T YPE UNIT S SQUARE FEET RENT RENT/SF2 Bed / 1 Bath 63 900 $1,870 $2.08

TOTAL/WTD. AVG. 63 900 $1,870 $2.08

TotalUnits105 Total


TotalUnits100 Total


R E N T C O M P A R A B L E S 35

Sales Comparables

l o c a t i o n m a p

c o m p a r a b l e s

s e c t i o n 5

4 UNITS


2

6

5 4

3

1

PROPERTIES PRICE# OF

UNIT S PRICE PER UNIT

1819 E Grove Ave, Orange, CA 92865 $1,225,000 4 $306,250

1 830 N Adele St, Orange, CA 92867 $1,400,000 4 $350,000

2 416 W Palmyra Ave, Orange, CA 92866 $1,400,000 4 $350,000

3 535 S Parker St, Orange, CA 92868 $1,315,000 4 $328,750



6 1402 E Lincoln Ave, Orange 92865 $1,200,000 4 $300,000

SALES COMPARABLES // 1819 E Grove Avenue

1 830 N Adele St Orange, CA 92867

Sale Price $1,400,000

Sale Date 9/6/18

Year Built 1969

Price per Unit $350,000

Price per Square Foot $311.11

Number of Units 4

416 W Palmyra Ave Orange, CA 92866


Sale Date 9/19/18

Year Built 1969



Number of Units 4

2

S A L E S C O M P A R A B L E S40

535 S Parker St Orange, CA 92868


Sale Date 6/14/18

Year Built 1977



Number of Units 4

3 4 807 Adele StOrange, CA 92867


Sale Date 2/9/18

Year Built 1969



Number of Units 4

S A L E S C O M P A R A B L E S 41

5 827 N Adele StOrange, CA 92867


Sale Date 1/5/18

Year Built 1969



Number of Units 4

1402 E Lincoln AveOrange, CA 92865


Sale Date 5/18/18

Year Built 1979



Number of Units 4

6

S A L E S C O M P A R A B L E S42

Aver a g e CAP

Aver a g e GRM

S A L E S C O M P A R A B L E S 43

Market Overview

l o c a t i o n o v e r v i e w

m a r k e t r e s e a r c h

d e m o g r a p h i c s

s e c t i o n 6

ORANGEC A L I F O R N I A

P O P U L A T I O N1 3 9 , 8 1 2

M A R K E T O V E R V I E W46

The City of Orange was incorporated on April 6, 1888 under the general laws of the State of California, however, Orange dates back to 1869 when Alfred Chapman and Andrew Glassell, both lawyers, accepted 1,385 acres of land from the Rancho Santiago de Santa Ana as legal fees.

Soon thereafter, the men laid out a one square mile town with ten-acre farm lots surrounding a forty-acre central town site. The center of the town site became known as the Plaza, which has become the symbol of the community. Today, the Plaza and the majority of the original one square mile town site, contain many homes and buildings dating to the early days of the City; the site is registered on the National Register of Historic Places.

Orange is a prime location that offers direct access to five major freeways, two railroad systems, two major malls and ample public transportation. It is convenient to half a dozen major airports, ports and harbors, and at least ten major malls. The City is home to one of the strongest retail and automotive markets in the southland. Orange has captured the regional crown as the antique capital of Southern California with its acclaimed Old Towne historical district.

A stable and diverse economic community, Orange has a talented work force, a competitive location, access to capital, a valuable network of suppliers and business services, and a local government that welcomes business

C i t y O f[ O R A N G E ] Sp e cia l Events

The City supports and encourages community organizations that promote community involvement and investment. Since 1973, Orange has been home to the Orange International Street Fair (OISF). OISF is a diversified event that traditionally takes place Labor Day weekend. Though OISF, Inc. continues to partner with the City of Orange for support services, OISF, Inc. is solely responsible for the management and financial aspects of the event.

Vision of GrowthThe General Plan establishes a road map for pursuit of the vision through a series of goals and policies that are used by City departments and decision makers in the review of development projects, identification of capital improvement projects, allocation of City resources, and more. The General Plan addresses a full spectrum of quality of life issues and City services in Orange, which include; Circulation and Mobility, Cultural Resources and Historic Preservation, Economic Development, Growth Management, Housing, Infrastructure, Land Use, Natural Resources, Noise, Public Safety, & Urban Design.

M A R K E T O V E R V I E W 47

Since its beginning over 100 years ago, the City of Orange has been a rich and thriving community. From its early start as a farming community to a now flourishing and diverse shopping and entertainment destination, Orange continues to prosper while still maintaining its small-town feel. Orange remains one of the safest cities in the nation and is continually recognized for its vibrant residential neighborhoods and excellent business environment. Home to two successful regional shopping centers, three prominent universities and colleges, four nationally renowned regional hospitals, and several excellent recreational facilities, the City of Orange has become one of the most sought after locations for business and entertainment expansions.

Each location provides a well-defined business region that provides potential expansion. To assist prospective developers, the City of Orange prides itself on a streamlined entitlement process to enhance the project development experience.

HISTORICAL LO CATIONS

WHY OR ANGE?

• American Legion Hall, Post 132

• Grijalva Adobe Site

• Pitcher Park

• The Exchange Fine Arts Gallery

• The Plaza & Old Towne Orange Historic District


Demog raphics

• The local population will expand by more than 72,600 residents over the next five years and during this time, nearly 38,100 households will be added.

• Due in part to high home prices, the homeownership rate of 57 percent is below the national rate of 64 percent.

• Roughly 38 percent of the population age 25 and older have attained a bachelor’s degree, with 13 percent also holding a graduate or professional degree.

2017 Population by Age

0-4 YEARS

6%5-19 YEARS

19%20-24 YEARS

7%25-44 YEARS

28%45-64 YEARS

27%65+ YEARS

14%

37.72017

MEDIAN AGE:

U.S. Median:

37.8

$81,000 2017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$56,300

3.2M2017

POPULATION:

Growth2017-2022*:

2.3%

1.1M2017

HOUSEHOLDS:

3.6%

Growth2017-2022*:


1

3

5 Miles


HOUSEHOLDS BY INC OME 1 Mi le 3 Mi les 5 Mi les2016 Estimate

$200,000 or More 0.55% 1.22% 1.90%

$150,000 - $199,000 1.69% 2.08% 2.41%

$100,000 - $149,000 4.88% 6.88% 7.54%

$75,000 - $99,999 8.73% 9.61% 9.34%

$50,000 - $74,999 19.09% 21.38% 19.99%

$35,000 - $49,999 18.09% 16.05% 15.57%

$25,000 - $34,999 16.92% 13.37% 13.31%

$15,000 - $24,999 13.26% 13.48% 13.45%

Under $15,000 16.77% 15.91% 16.48%

Average Household Income $47,190 $53,031 $56,320

Median Household Income $37,138 $41,004 $40,838


POPUL ATION PROFILE 1 Mi le 3 Mi les 5 Mi lesPopulation By Age

2016 Estimate Total Population 8,909 77,267 164,056

Under 20 26.89% 25.97% 26.51%

20 to 34 Years 23.44% 21.72% 21.96%

35 to 39 Years 5.79% 6.19% 6.27%

40 to 49 Years 12.65% 12.81% 13.07%

50 to 64 Years 18.62% 19.93% 19.62%

Age 65+ 12.63% 13.38% 12.55%

Median Age 34.76 36.8 36.16

Population 25+ by Education Level

2016 Estimate Population Age 25+ 5,818 52,109 109,597

Elementary (0-8) 2.62% 2.61% 2.79%

Some High School (9-11) 8.22% 10.07% 10.56%

High School Graduate (12) 40.47% 34.67% 33.49%

Some College (13-15) 26.00% 25.54% 24.16%

Associate Degree Only 6.68% 8.45% 8.67%

Bachelors Degree Only 9.88% 12.40% 13.33%

Graduate Degree 3.63% 4.26% 5.32%

Population by Gender


Male Population 46.52% 47.34% 47.59%

Female Population 53.48% 52.66% 52.41%

POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection

Total Population 19,276 146,837 484,877

2017 Estimate


2010 Census


2000 Census


Daytime Population

2017 Estimate 23,962 179,231 576,300

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection

Total Households 6,001 47,213 152,450

2017 Estimate


Average (Mean) Household Size 3.20 3.05 3.14

2010 Census


2000 Census


Growth 2015-2020 -0.03% 1.22% 2.49%

HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units

2022 Projection 6,001 47,213 152,450

2017 Estimate 6,082 47,332 151,333

Owner Occupied 4,014 28,148 83,057

Renter Occupied 1,989 18,496 65,694

Vacant 79 688 2,583

Persons In Units

2017 Estimate Total Occupied Units 6,003 46,644 148,750

1 Person Units 16.51% 19.09% 19.30%

2 Person Units 29.20% 29.26% 27.79%

3 Person Units 16.51% 17.23% 16.37%

4 Person Units 16.87% 16.09% 15.86%

5 Person Units 9.95% 8.91% 9.50%

6+ Person Units 10.96% 9.43% 11.18%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate

$200,000 or More 9.37% 9.74% 8.96%

$150,000 - $199,000 9.30% 8.74% 8.28%

$100,000 - $149,000 19.76% 20.25% 18.71%

$75,000 - $99,999 16.44% 15.45% 14.73%

$50,000 - $74,999 17.02% 16.14% 15.82%

$35,000 - $49,999 10.58% 11.19% 11.74%

$25,000 - $34,999 6.82% 6.58% 7.60%

$15,000 - $24,999 4.64% 5.63% 6.85%

Under $15,000 6.05% 6.28% 7.31%

Average Household Income $110,911 $111,403 $105,042

Median Household Income $82,119 $81,587 $76,111


POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age


Under 20 25.76% 25.47% 26.77%

20 to 34 Years 21.02% 22.52% 23.49%

35 to 39 Years 5.97% 6.19% 6.51%

40 to 49 Years 13.62% 13.48% 13.46%

50 to 64 Years 19.04% 18.93% 17.79%

Age 65+ 14.57% 13.43% 11.98%

Median Age 37.70 36.59 34.81

Population 25+ by Education Level

2017 Estimate Population Age 25+ 13,042 98,149 314,340

Elementary (0-8) 7.29% 6.69% 9.69%

Some High School (9-11) 7.94% 8.08% 9.62%

High School Graduate (12) 18.68% 19.47% 19.31%

Some College (13-15) 21.88% 22.53% 21.25%

Associate Degree Only 7.52% 8.00% 7.12%

Bachelors Degree Only 23.26% 22.83% 20.95%

Graduate Degree 11.73% 10.91% 10.04%

Population by Gender


Male Population 49.66% 49.45% 49.97%

Female Population 50.34% 50.55% 50.03%


Mark Brid geFirst Vice President Investments

Director, National Multi Housing Group

Direct: (949) 419 3297Mark.Brid [email protected]

www.teambrid gegroup.com19800 MacArthur Blvd #150, Irvine,

CA 92612 CA L icense: 01316702

E X C L U S I V E L Y L I S T E D B Y

4 unit multi-family investment opportunity 1819 e grove...investment highlights marcus &...

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