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RANCHO TERRACERancho Cordova, CA
Offering Memorandum
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. © 2016
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.
RANCHO TERRACE
Rancho Cordova, CA
ACT ID X0030184
TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Regional Map
Aerial Photo
Parcel Map
FINANCIAL ANALYSIS 02Rent Roll Summary
Rent Roll Detail
Operating Statement
Notes
Pricing Detail
MARKET COMPARABLES 03Comparables
Rent Comparables
RANCHO TERRACE
RANCHO TERRACE
4
INVESTMENT
OVERVIEW
RANCHO TERRACE
#
EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Mercy San Juan Hospital 2,150
Franchise Tax Board 2,000
Region 1 Parole Division 2,000
American River College 1,811
C V S Optical Lab Div 1,600
Mercy San Juan Medical Center 1,500
Aerojet Rocketdyne Inc 1,400
Franklin Templeton Investment 1,200
Eskaton Village Care Center 1,000
HP Enterprise Services LLC 1,000
Tetra Tech Ec Inc 1,000
Matheson Postal Services Inc 750
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2015 Estimate Pop 15,929 82,337 219,640
2010 Census Pop 15,237 78,516 209,163
2015 Estimate HH 6,038 32,400 87,651
2010 Census HH 5,784 30,885 83,419
Median HH Income $46,909 $52,587 $56,702
Per Capita Income $22,482 $31,038 $32,493
Average HH Income $59,047 $78,426 $80,923
UNIT MIX
NUMBEROF UNITS
UNIT TYPEAPPROX.SQUARE FEET
79 1 Bd/ 1 Bath 625
16 2 Bd/ 1 Bath 684
15 2 Bd/ 1 Bath Corner 788
110 Total 72,880
VITAL DATA
Price $7,650,000 CURRENT PRO FORMA
Down Payment 35% / $2,677,500 CAP Rate 5.61% 6.43%
Loan Amount $4,972,500 GRM 7.85 7.35
Loan Type ConventionalNet Operating Income
$428,834 $491,942
Interest Rate / Amortization 3.11% / 30 YearsNet Cash Flow After Debt Service
6.49% / $173,709.11 8.84% / $236,817.11
Price/Unit $69,545 Total Return 10.29% / $275,634 12.77% / $341,957
Price/SF $105
Number of Units 110
Rentable Square Feet 72,880
Number of Buildings 2
Number of Stories 2
Year Built 1965
Lot Size 3.5 acre(s)
5
RANCHO TERRACE
#
OFFERING SUMMARY
Stabilized Cash Flow Investment with Solid Upside Prospects
Walking Distance to Sacramento Light Rail Transit
1/2 Mile to Highway 50 Access
Strong Amenity Mix
Renovated Throughout in 2012
INVESTMENT HIGHLIGHTS
Rancho Terrace is an excellent opportunity to own apartment rental housing in the growth-oriented, business friendly city of
Rancho Cordova, CA. Located west of the California State Capitol along Hwy 50 and adjacent to the Zinfandel Light Rail Station,
Rancho Terrace and the neighboring properties have been enjoying significant rent increases in recent years. On July 5th, the
Wall Street Journal recognized Sacramento as #1 in the nation for 2Q16 year over year rent growth. Rancho Terrace has been
consistently demonstrating a steady upward trend in gross monthly income. With 6.4% in loss to lease representing over $66,000
in additional revenue on the table, the savvy investor will recognize Rancho Terrace not only as a solid cash flow opportunity
from day one, but also as having strong prospects for immediate upside.
The property features a swimming pool, an attractive interior courtyard setting complete with a children's playground, BBQs and
picnic areas. All parking is on the exterior of the property. Most of the exterior is stucco. The asphalt has been resealed in August
of 2016. A roof report will be available upon request.
All tours must be scheduled through listing agent. Offers should be submitted with proof of funds. For more information regarding
loan quotes in this package, please contact Jeff Shaddy of MMCC at (916) 724-1290.
INVESTMENT OVERVIEW
6
RANCHO TERRACE
#
OFFERING SUMMARY
7
Gated Entry
Swimming Pool
Common Area Amenities
New Asphalt in 2016
Playground, BBQ & Picnic Area
On-Site Laundry in Each Building
Dishwashers & Disposals in Kitchen
Unit Amenities
Double Pane Windows in Select Floor Plans
Single Load Design
Gas Ranges / Stoves
80% New Countertops and Cabinets in 2012
RANCHO TERRACE
#
PROPERTY SUMMARY
OFFERING SUMMARY
ALTERNATE PROPOSED FINANCING
First Trust Deed
Loan Amount $6,120,000
Loan Type Proposed New
Interest Rate 3.49%
Amortization 30 Years
Loan Term 5 Years
Loan to Value 80%
Debt Coverage Ratio 1.30
THE OFFERING
Property Rancho Terrace
Price $7,650,000
Property Address2830 Mills Park Drive & 10531 Mills Tower Drive,Rancho
Cordova,CA
SITE DESCRIPTION
Number of Units 110
Number of Buildings 2
Number of Stories 2
Year Built/Renovated 1965
Rentable Square Feet 71150
Lot Size 3.5 Acres
Type of Ownership Fee Simple
Density 31.4 Units / Acre
Parking 163 Spaces
Parking Ratio 1.48 / Unit
Landscaping Lush / Mature
Topography Flat
UTILITIES
Water Central - Owner Pays
Electric Individually Metered - Tenant Pays
Gas Individually Metered - Tenant Pays
CONSTRUCTION
Foundation Concrete Slab
Exterior Stucco
Parking Surface Asphalt
Roof Flat
MECHANICAL
HVAC Wall Heating & Air
Wiring copper
8
PROPOSED FINANCING
First Trust Deed
Loan Amount $4,972,500
Loan Type Proposed New
Interest Rate 3.11%
Amortization 30 Years
Loan Term 5 Years
Loan to Value 65%
Debt Coverage Ratio 1.68
REGIONAL MAP
RANCHO TERRACE
9
AERIAL PHOTO
RANCHO TERRACE
10
PARCEL MAP
RANCHO TERRACE
11
RANCHO TERRACE
12
FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
RANCHO TERRACE
RENT ROLL SUMMARY
13
FINANCIAL ANALYSIS
RANCHO TERRACE
14
RENT ROLL DETAIL
FINANCIAL ANALYSIS
RANCHO TERRACE
15
RENT ROLL DETAIL
FINANCIAL ANALYSIS
RANCHO TERRACE
16
RENT ROLL DETAIL
FINANCIAL ANALYSIS
RANCHO TERRACE
17
RENT ROLL DETAIL
FINANCIAL ANALYSIS
RANCHO TERRACE
OPERATING STATEMENT
18
FINANCIAL ANALYSIS
RANCHO TERRACE
NOTES
19
FINANCIAL ANALYSIS
RANCHO TERRACE
PRICING DETAIL
20
RANCHO TERRACE
21
MARKET
COMPARABLES
8
RANCHO TERRACE
SALES COMPARABLES MAP
22
RANCHO TERRACE
(SUBJECT)
The Redwoods at Mather
Station
Gold Run
Cobblestone Apartments
Vintage Faire
Winchester Place
Apartments
Babu's Villa
SALES COMPARABLES
IN ESCROW COMPARABLES
1
2
3
4
5
6
PROPERTY NAME
MARKETING TEAM
RANCHO TERRACE
COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
23
SALES COMPARABLES IN ESCROW COMPARABLES
Units Unit Type
Close Of Escrow: 8/1/2016 20 1 Bdr 1 Bath
Sales Price: $6,200,000 56 2 Bdr 1 Bath
Price/Unit: $81,579
Price/SF: $98.00
Total No. of Units: 76
Year Built: 1972
THE REDWOODS AT MATHER STATION
1
2850 LA LOMA DR, RANCHO CORDOVA, CA, 95670 10780 COLOMA ROAD, RANCHO CORDOVA, CA, 95670
Units Unit Type
Close Of Escrow: 6/17/2016 16 1 Bdr 1 Bath
Sales Price: $7,000,000 68 2 Bdr 1 Bath
Price/Unit: $83,333
Price/SF: $117.00
Total No. of Units: 84
Year Built: 1978
GOLD RUN
2
3060 LAURELHURST DRIVE, RANCHO CORDOVA, CA,
95670
COBBLESTONE APARTMENTS
Units Unit Type
Close Of Escrow: 2/18/2016 8 Studio 1 Bath
Sales Price: $6,795,000 41 1 Bdr 1 Bath
Price/Unit: $71,526 46 2 Bdr 1 Bath
Price/SF: $102.00 1 3 Bdr 1 Bath
Total No. of Units: 95
Year Built: 1975
3
PROPERTY NAME
MARKETING TEAM
RANCHO TERRACE
COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
24
SALES COMPARABLES IN ESCROW COMPARABLES
Units Unit Type
Close Of Escrow: 11/4/2015 30 1 Bdr 1 Bath
Sales Price: $9,000,000 82 2 Bdr 1 Bath
Price/Unit: $80,357
Price/SF: $95.00
Total No. of Units: 112
Year Built: 1976
VINTAGE FAIRE
4
11070 HIRSCHFIELD WAY, RANCHO CORDOVA, CA, 95670 10870 COLOMA RD, RANCHO CORDOVA, CA, 95670
Close Of Escrow: 1/25/2016 40 2 Bdr 1 Bath
Sales Price: $2,825,000
Price/Unit: $70,625
Price/SF: $71.00
Total No. of Units: 40
Year Built: 1960
WINCHESTER PLACE APARTMENTS
5
10515 MILLS TOWER DRIVE, RANCHO CORDOVA, CA,
95670
BABU'S VILLA
Units Unit Type
In Escrow 17 1 Bdr 1 Bath
List Price: $5,050,000 47 2 Bdr 1 Bath
Price/Unit: $78,906
Price/SF: $112.00
Total No. of Units: 64
Year Built: 1975
6
8
RANCHO TERRACE
RENT COMPARABLES MAP
RANCHO TERRACE
(SUBJECT)
Babu's Villa
Puerta Villa
Puerta Villa West
Fountain Crest
Gold Creek
Park Knoll
The Arbors
Gold Run
4
7
8
9
11
20
12
14
15
16
17
13
18
10
4
7
8
1
2
3
5
6
25
PROPERTY NAME
MARKETING TEAM
RANCHO TERRACE
RENT COMPARABLES
RANCHO TERRACE
2830 MILLS PARK DRIVE & 10531 MILLS TOWER DRIVE, RANCHO CORDOVA, CA, 95670
RANCHO TERRACE
2830 MILLS PARK DRIVE & 10531 MILLS TOWER DRIVE, RANCHO CORDOVA, CA, 95670
RANCHO TERRACE
2830 MILLS PARK DRIVE & 10531 MILLS TOWER DRIVE, RANCHO CORDOVA, CA, 95670
26
YEAR BUILT: 1965
RANCHO TERRACE2830 MILLS PARK DRIVE & 10531 MILLS TOWER DRIVE,
RANCHO CORDOVA, CA, 95670
Unit Type Units SF Rent Rent/SF
1 Bd 1 Bath 79 625 $704.62 $1.13
2 Bd 1 Bath 16 684 $841.67 $1.23
2 Bd 1 Bath Corner
15 788 $806.67 $1.02
Total/Avg. 110 699 $784.32 $1.13
BABU'S VILLA10515 MILLS TOWER DRIVE, RANCHO CORDOVA, CA, 95670
OCCUPANCY: 100% | YEAR BUILT: 1975
1
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 17 625 $775 $1.24
2 Bdr 1 Bath 47 750 $875 $1.17
Total/Avg. 64 688 $825.00 $1.21
AMENITIES
Balcony
Cable Ready
Recycling
Security System
Disposal
Granite Countertops
Hardwood Floors
Laundry Facilities
Pool
RUBS
Not Yet Implemented
PUERTA VILLA10501 CROETTO WAY, RANCHO CORDOVA, CA, 95670
2
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 64 650 $775 $1.20
2 Bdr 1 Bath 28 750-775 $875 $1.15
3 Bdr 1 Bath 1 900 $1,000 $1.12
Total/Avg. 93 771 $883.33 $1.16
OCCUPANCY: 100% | YEAR BUILT: 1961
AMENITIES
Balcony on 2 bedrooms
Disposal
Granite Countertops
RUBS
Not Yet Implemented
PROPERTY NAME
MARKETING TEAM
RANCHO TERRACE
RENT COMPARABLES
PUERTA VILLA WEST
10440 CROETTO WAY, RANCHO CORDOVA, CA, 95670
PUERTA VILLA WEST
10440 CROETTO WAY, RANCHO CORDOVA, CA, 95670
PUERTA VILLA WEST
10440 CROETTO WAY, RANCHO CORDOVA, CA, 95670
27
PUERTA VILLA WEST10440 CROETTO WAY, RANCHO CORDOVA, CA, 95670
OCCUPANCY: 100% | YEAR BUILT: 1961
3
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 11 632 $800 $1.27
2 Bdr 1 Bath 22 802 $925 $1.16
3 Bdr 1 Bath 11 972 $1,100 $1.14
Total/Avg. 44 802 $941.67 $1.19
AMENITIES
Balcony
Cable Ready
Ceiling Fans
Disposal
Granite Countertops
Laundry Facilities
Playground
Pool
RUBS
Not Yet Implemented
FOUNTAIN CREST2719 MILLS PARK DRIVE, RANCHO CORDOVA, CA, 95670
OCCUPANCY: 100% | YEAR BUILT: 1973
4
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 20 650 $750 $1.16
2 Bdr 1 Bath 30 750 $850 $1.14
3 Bdr 1 Bath 20 900 $1,000 $1.12
4 Bdr 1 Bath 2 1,050 $1,050 $1.00
Total/Avg. 72 838 $912.50 $1.11
AMENITIES
Disposal
Balcony
Playground
Gated Community
Laundry Facilities
RUBS
Not Yet Implemented
GOLD CREEK2168 BENITA DR, RANCHO CORDOVA, CA, 95670
5
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 28 677 $750 $1.11
2 Bdr 1 Bath 42 844 $900 $1.07
Total/Avg. 70 761 $825.00 $1.09
OCCUPANCY: 98% | YEAR BUILT: 1975
AMENITIES
Dishwasher
Ceiling Fans
Central Heat & Air
Laundry Facilities
Pool
RUBS
$25 for 1 x 1
$30 for 2 x 1
PROPERTY NAME
MARKETING TEAM
RANCHO TERRACE
RENT COMPARABLES
PARK KNOLL
10680 COLOMA ROAD, RANCHO CORDOVA, CA, 95670
PARK KNOLL
10680 COLOMA ROAD, RANCHO CORDOVA, CA, 95670
PARK KNOLL
10680 COLOMA ROAD, RANCHO CORDOVA, CA, 95670
28
PARK KNOLL10680 COLOMA ROAD, RANCHO CORDOVA, CA, 95670
OCCUPANCY: 98% | YEAR BUILT: 1974
6
Unit Type Units SF Rent Rent/SF
Studio 8 340 $650 $1.92
1 Bdr 1 Bath 74 620 $750 $1.21
2 Bdr 1 Bath 76 840 $850 $1.02
Total/Avg. 158 600 $750.00 $1.38
AMENITIES
Dishwasher
Disposal
Laundry Facilities
Pool
RUBS
$25 for Studio
$35 for 1 x 1
$45 for 2 x 1
THE ARBORS10468 INVESTMENT CIRCLE, RANCHO CORDOVA, CA, 95670
OCCUPANCY: 100% | YEAR BUILT: 1972
7
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 24 700 $725 $1.04
2 Bdr 1 Bath 56 800 $825 $1.04
Total/Avg. 80 750 $775.00 $1.04
AMENITIES
Cable Ready
Dishwasher
Disposal
Tile Floors
Vinyl Flooring
Fitness Center
Gated
Pool
RUBS
Not Yet Implemented
GOLD RUN10780 COLOMA ROAD, RANCHO CORDOVA, CA, 95670
8
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 16 610 $695-$715 $1.16
2 Bdr 1 Bath 68 735 $795-$815 $1.10
Total/Avg. 84 673 $755.00 $1.13
OCCUPANCY: 100% | YEAR BUILT: 1978
AMENITIES
Balcony
Cable Ready
Dishwasher
Disposal
Courtyard
Gated
Laundry Facilities
Picnic Area
RUBS
$15 for 1 x 1
$25 for 2 x 1
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