935 johnfer apartments - loopnet · 2019-03-13 · terms of the sale fee simple interest of 935...

Offering Memorandum

1

935 Johnfer Apar tments

9 3 5 Jo h n f e r Wa y, S a c r a m e n t o , C A

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

Confidentiality and DisclaimerThe 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.

Non-Endorsement NoticeMarcus & 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

935 Johnfer Apartments

Sacramento, CA

ACT ID Z0030029

2

TABLE OF CONTENTS

INVESTMENT OVERVIEW 01Offering Summary

Aerial Photo

FINANCIAL ANALYSIS 02

Rent Roll Summary

Operating Statement

Notes

MARKET COMPARABLES 03

Sales Comparables

Rent Comparables

935 JOHNFER APARTMENTS

3

SECTION


4

INVESTMENT

OVERVIEW


#

OFFERING SUMMARY

5

Terms of the SaleFee simple interest of 935 Johnfer Apartments is offered with an

open bid format.

Property ToursProspective buyers are encouraged to visit the subject property prior

to submitting offers. All property tours must be arranged with the

Marcus & Millichap listing agent. Please do not contact the tenants,

on-site management or staff without proper approval.

The Offering

Price $6,500,000

Number of Units 39

Rentable Square Feet 29,970

Number of Buildings 4

Parking21 Free Surface Spaces &

20 Covered Spaces

Lot Size 1.37 Acres

Year Built 1971

Assessors Parcel Number

029-0312-006

Interest Offered100 percent fee simple interest in 935 Johnfer Apartments, a 39-unit,

29,970 rentable square-foot multifamily community located at 935

Johnfer Way, Sacramento, California.

Marcus & Millichap is pleased to present 935 Johnfer Apartments, a

renovated apartment community located in the highly desirable Greenhaven

submarket of Sacramento, California. Only minutes away from Downtown

Sacramento on Interstate 5, residents enjoy close proximity to the region’s

largest job center as well as the amenities that the urban core has to offer. The

Greenhaven neighborhood, which is also known as the "The Pocket," is one of

the most sought after neighborhoods in Sacramento.

In addition to a favorable unit mix with mostly two-bedrooms, the property has

been meticulously maintained and has seen recent renovations to the tune of

over $325,000. The new owners will enjoy a freshly painted - low maintenance

stucco exterior, central heat and air, new balconies and patios in select units,

and oversized closets to compliment the already spacious floor plans. The roofs

have all been replaced since 2013, and ownership has spent the money to create

a dog run, barbecue area, and fresh signage. They have also put in all new dual

pane windows and sliders, constructed new patio enclosures, and have

taken care of concrete work and new landscaping around the grounds. The renovated interiors have received new stainless steel appliances,

re-surfaced countertops, new vinyl plank flooring, and new cabinets. There are two entrances to the property, which both have access

controlled gates that open up to 20 covered parking spaces and 21 open spaces. There is currently a standalone leasing office that overlooks

a private interior courtyard and a beautiful gated pool area. There are two laundry rooms onsite, each complete with two washers, two dryers

and a central hot water heater. Rent comparables in the area strongly suggest that the new owner of 935 Johnfer will be able to not only erode

loss-to-lease but raise asking rents aggressively.

The purchaser of 935 Johnfer will step into stable operations, a well maintained physical condition, and enjoy the opportunity to continue to

push rents in one of the country's hottest rental markets. Industry research suggests the region will experience another eight percent increase

in rents market wide in 2018. The combination of robust rent growth and low vacancy coupled with a lack of new apartment construction

distinguishes 935 Johnfer as a yield driven investment in the State Capital of the most populous state in the country.

All tours must be scheduled with The DeLoney Group. Please do not disturb management.


OFFERING SUMMARY

INVESTMENT OVERVIEW

6

▪ Immediate Opportunity for Loss-to-Lease Erosion

▪ Further Upside Through Installation of Washers &

Dryers in Units

▪ Located in Highly Desirable Greenhaven Submarket

▪ Easy Access to I-5 with Short Commute to

Downtown Sacramento

▪ Beautifully Renovated Property

INVESTMENT HIGHLIGHTS


#

OFFERING SUMMARY

7

▪ All Central HVAC Replaced in 2015

▪ All New Windows Replaced in 2015

▪ Select Cottage Style Units

▪ Individual Patios & Balconies▪ Walk-In Closets

▪ Wood Burning Fireplaces

▪ Washer & Dryer in Select Units

UNIT AMENITIES

▪ Stainless Steel Appliances in

Remodeled Units

▪ Balconies & Patios in Select Units

▪ Newly Installed Double Pane Windows

▪ Central HVAC


#

OFFERING SUMMARY

8

▪ Leasing Office

▪ Swimming Pool

COMMON AREA AMENITES

▪ Dog Run

▪ Covered Parking

▪ Two On-Site Laundry Facilities

REGIONAL MAP


9


10

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


PRICING DETAIL

11

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

12

FINANCIAL ANALYSIS


OPERATING STATEMENT

13

FINANCIAL ANALYSIS


NOTES

14


15

MARKET

COMPARABLES


SALES COMPARABLES MAP

16

JOHNFER APARTMENTS

(SUBJECT)

Almond Grove

Edgewood Apartments

Las Palmas Condominiums

Waterford Cove

SALES COMPARABLES

1

2

3

4

PROPERTY NAME935 JOHNFER APARTMENTS

SALES COMPARABLES

17

SALES COMPARABLES

$0.00

$30.00

$60.00

$90.00

$120.00

$150.00

$180.00

$210.00

$240.00

$270.00

$300.00

Almond

Grove

Edgewood

Apartments

Las Palmas

Condominiums

Waterford

Cove

Average Price Per Square Foot

$0

$30,000

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000

$240,000

$270,000

$300,000

Almond

Grove

Edgewood

Apartments

Las Palmas

Condominiums

Waterford

Cove

Average Price Per Unit

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


18

SALES COMPARABLES

Units Unit Type

Offering Price: $6,500,000 1 Studio

Price/Unit: $166,667 15 1 Bed 1 Bath

Price/SF: $216.88 3 1 Bed 1 Bath - W D

CAP Rate: 5.44% 17 2 Bed 1 Bath

GRM: 11.52 3 2 Bed 1 Bath - W D

Total No. of Units: 39

Year Built: 1971

JOHNFER APARTMENTS 935 Johnfer Way, Sacramento, CA, 95831

1

Units Unit Type

Close Of Escrow: 4/30/2018 21 2 Bdr 1 Bath

Sales Price: $4,250,000

Price/Unit: $202,381

Price/SF: $160.62

CAP Rate: 4.83%


Year Built: 1987

ALMOND GROVE11801 Fair Oaks Blvd, Fair Oaks, CA, 95628

Units Unit Type


Sales Price: $8,683,500 21 2 Bdr 1 Bath

Price/Unit: $197,352 22 2 Bdr 2 Bath

Price/SF: $203.08

CAP Rate: 5.61%


Year Built: 1988

2

EDGEWOOD5761 Shannon Bay Dr, Rocklin, CA, 95677

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


19

SALES COMPARABLES IN ESCROW COMPARABLES

Units Unit Type


Sales Price: $4,500,000

Price/Unit: $173,077

Price/SF: $212.54


Year Built: 1988

3

LAS PALMAS CONDOMINIUMS10803 Fair Oaks Blvd, Fair Oaks, CA, 95628

4

Units Unit Type


Sales Price: $33,800,000 68 2 Bdr 1 Bath

Price/Unit: $179,787 48 2 Bdr 2 Bath

Price/SF: $208.06


Year Built: 1988

WATERFORD COVE7650 Windbridge Drive, Sacramento, CA, 95831

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RENT COMPARABLES MAP


(SUBJECT)

Villas at Greenhaven

Riverside Gardens

Water's Edge Apartments

The Esplanade Apartments

Wedgewood Apartments

Riverfront Apartments

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

5

6

20

PROPERTY NAME935 JOHNFER APARTMENTS

RENT COMPARABLES

21

AVERAGE RENT - MULTIFAMILY

Avg. $1,149

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

935 Johnfer

Apartments

Villas at

Greenhaven

Riverside

Gardens

Water's

Edge

Apartments

The

Esplanade

Apartments

Wedgewood

Apartments

Riverfront

Apartments

1 Bedroom

Avg. $1,409

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

935 Johnfer

Apartments

Villas at

Greenhaven

Riverside

Gardens

Water's

Edge

Apartments

The

Esplanade

Apartments

Wedgewood

Apartments

Riverfront

Apartments

2 Bedroom

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


22

YEAR BUILT: 1971

rentpropertyname1

Unit Type Units SF Rent Rent/SF

Studio 1 350 $730 $2.09

1 Bed 1 Bath 15 740 $1,121 $1.51

1 Bed 1 Bath - W D 3 740 $1,252 $1.69

2 Bed 1 Bath 17 815 $1,255 $1.54

2 Bed 1 Bath - W D 3 815 $1,467 $1.80

Total/Avg. 39 768 $1,206 $1.57

JOHNFER APARTMENTS 935 Johnfer Way, Sacramento, CA, 95831

OCCUPANCY: 100% | YEAR BUILT: 1977

1

NOTES

Central HVAC

Disposal

Pool

Laundry Facilities

Gated

Rubs: $45 for 1x1

$55 for 2x1

$65 for 3x2


1 Bdr 18 660 $1,050 $1.59

2 Bdr 1 Bath 36 937$1,350-$1,450

$1.49

3 Bdr 2 Bath 8 1,092 $1,550 $1.42

Total/Avg. 62 877 $1,318 $1.50

VILLAS AT GREENHAVEN6230 Greenhaven Dr, Sacramento, CA, 95831

2


NOTES

Central HVAC

Balcony/Patio

Dishwasher

Disposal

Pool

Onsite Laundry Facilities

Fireplaces In Select Units


1 Bdr 1 Bath 38 760 $1,100 $1.45

2 Bdr 1 Bath 24 1,048 $1,395 $1.33

2 Bdr 1.5 Bath 4 1,155 $1,595 $1.38

3 Bdr 1 Bath 28 1,134 $1,495 $1.32

Total/Avg. 94 962 $1,314 $1.37

RIVERSIDE GARDENS6001 Riverside Blvd, Sacramento, CA, 95831

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


23


3


1 Bdr 1 Bath 40 768$1,214-$1,488

$1.76

2 Bdr 1.5 Bath 24 968$1,315-$1,603

$1.51

Total/Avg. 64 843 $1,392 $1.65

NOTES

Central HVAC

Patio/Balcony

Pool

Dishwasher

Disposal

Laundry Facilities

Covered Parking

Fireplaces In Select Units

WATER'S EDGE APARTMENTS5959 Riverside Blvd, Sacramento, CA, 95831


4

NOTES

Central HVAC

Dishwasher

Disposal

Fitness Center

2 Swimming Pools

Washer/Dryer in select units

Laundry Facilities

Covered Parking

Balcony/Patio

Pets: $35 per Month

Rubs: Varies, capped at $130


1 Bdr 1 Bath 16 691$1,125-$1,175

$1.66

2 Bdr 1 Bath 8 850 $1,325 $1.56

2 Bdr 1.5 Bath 98 1,059-1,135$1,425-$1,625

$1.39

3 Bdr 1.5 Bath 90 1,335$1,850-$1,999

$1.44

3 Bdr 2 Bath 8 1,136 $1,800 $1.58

Total/Avg. 220 1,157 $1,664 $1.44

THE ESPLANADE APARTMENTS6058 Riverside Blvd, Sacramento, CA, 95831

5


NOTES

Central HVAC

Dishwasher

Disposal

Patio/Balcony

Fitness Center

Swimming Pool


Washer/ Dryer in 2 Bed Units


Studio 1 Bath 1 580 $1,041 $1.79

1 Bdr 1 Bath 41 680 $1,079 $1.59

2 Bdr 1 Bath 82 900$1,279-$1,346

$1.46

3 Bdr 1 Bath 2 1,000 $1,599 $1.60

Total/Avg. 126 827 $1,239 $1.50

WEDGEWOOD APARTMENTS941 43rd Ave, Sacramento, CA, 95831

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


24


6


1 Bdr 1 Bath 59 640-750$1,155-$1,175

$1.68

2 Bdr 1 Bath 18 850$1,255-$1,275

$1.49

2 Bdr 2 Bath 66 840-980$1,355-$1,395

$1.51

Total/Avg. 143 814 $1,275 $1.57

NOTES

Central HVAC

Fitness Center

Balcony/Patio

Washer/Dryer in Select Units

Washer/Dryer Hookups in Select Units

Pool


Covered Parking

Gated

Rubs: $75

Pet Rent: $25 per pet/month

RIVERFRONT APARTMENTS5953 Riverside Blvd, Sacramento, CA, 95831

www.MarcusMillichap.com

Tony DeLoney

First Vice President Investments

Director - National Multi Housing Group

Sacramento Office

Tel: (916) 724-1363

Fax: (916) 724-1410

[email protected]

License: CA 01920427

David DeLoney

Associate

Associate Member - National Multi Housing

Group

Sacramento Office

Tel: (916) 724-1294

Fax: (916) 724-1410

[email protected]


Kenneth Reimer

Associate

Associate Member - National Multi Housing

Group

Sacramento Office

Tel: (916) 724-1364

Fax: (916) 724-1410

[email protected]


P R E S E N T E D B Y

25

Kenneth N. Blomsterberg

Senior Vice President Investments

Senior Director, National Multi Housing Group

Reno Office

Tel: (775) 348-5227

Fax: (775) 348-5210

[email protected]

License: CA 00669083, NV 0006886

935 johnfer apartments - loopnet · 2019-03-13 · terms of the sale fee simple interest of 935...

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