memorandum example - 1

Multi-Family Investments

Northern California’s Source for Apartment Brokerage Services

Caleb KhanMulti-Family [email protected] #01332934

520 Capitol Mall, 5th Floor Sacramento, California 95814

ph: 916-375-1500 fx: 916-376-8840

Cassidy Turley Northern Californiawww.ctbtapartments.com

Caleb KhanMulti-Family [email protected] #01332934

Northern California’s Source for Apartment Brokerage Serviceswww.ctbtapartments.com


OFFERING MEMORANDUM

Drake Drive Apartments1312-1322 Drake Drive, Davis, CA 95616


1312 Drake Drive Overview 1322 Drake Drive Overview Location Maps Sale ComparablesCombined Asset Overview

Confidentiality & DisclaimerThe information contained in this marketing brochure (“Materials”) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving it from Cassidy Turley Northern California Real Estate (“Agent”). The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property (“Property”) for potential purchase.

The Materials have been prepared to provide unverified summary financial, physical, and market information to prospective buyers to enable them to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Property.

The information contained in the Materials has been obtained by Agent from sources believed to be reliable, however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent makes no representation or warranty regarding the Property, including but not limited to income, expenses, or financial performance (past, present, or future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating substances (PCB’s, asbestos, mold, etc.); Compliance with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant (tenant’s intentions regarding continued occupancy, payment of rent, etc). Any prospective buyer must independently investigate and verify all of the information set forth in the Materials. Any prospective buyer is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating and evaluating the Property.

By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

All Property showings are by appointment only and must be coordinated through the Agent.

Table of Contents

Section I: Asset OverviewProperty Description ................................................................................................3Investment Highlights ..............................................................................................4Property Photographs ...............................................................................................5Floor Plans ..............................................................................................................6Property Overview ....................................................................................................7Operations Statement ..............................................................................................8

Section II: Location MapsAerial View ..............................................................................................................9Parcel Map ...........................................................................................................10Local Map .............................................................................................................10Area Retail Trade Map ............................................................................................11Demographics .......................................................................................................12

Section III: Rent SurveyRent Comparable Properties ..............................................................................13-14Rent Comparable Properties Summary .....................................................................15Rent Comparable Map & Legend .............................................................................16

Section IV: Sales SurveySales Comparable Properties ..............................................................................17-19Sales Comparable Properties Summary ....................................................................20Sales Comparable Map & Legend ............................................................................21



Drake Drive is a well located property in the north west submarket of Davis, California. The property consists of two four-plexes and has an attractive mix of all two-bedroom one-bath units. Each building has its own parcel number and shares a single parking lot that provides ample space for the tenants.

The property is conveniently located in close proximity to the major arterial, West Covell Blvd, which provides easy access to Downtown Davis and Highway 113. In addition, Drake Drive is approximately 2 miles from the University of California, Davis and is an easy walk to many amenities, such as grocery shopping and eating.

Submarket DescriptionDavis is situated in Yolo County, 11 miles west of Sacramento, 385 miles north of Los Angeles, and 72 miles northeast of San Francisco. Yolo County has been one of the fastest growing counties based on percentage of change. Davis has been characterized by robust economic and population growth and is home to the University of California, Davis. The work force is engaged in a broad spectrum of employment with primary representation in professional, technical, and government occupations. This distribution is due mainly to the City’s close relationship with the University of California campus and the professional and technical environment the University creates.

Property Description

For more information, please contact:

Jim Gray, CCIM916-617-4255 [email protected] #00775072

Nahz Anvary, CCIM916-617-4257 [email protected] #01468557

CALIFORNIA

113

INTERSTATE

8 0CALIFORNIA

INTERSTATE

8 0CALIFORNIA

CALIFORNIA

113

Davis, California

UNIVERSITY

WEST DAVIS

CORE AREA/DOWNTOWN

CENTRAL DAVIS

SOUTH DAVIS

EAST DAVIS

WILDHORSE

NORTH DAVIS

El Macero

WEST CAMPUS

1312-1322 Drake Drive

N

Combined Asset Overview



Investment Highlights � Conveniently located near the Marketplace Shopping Center

� Attractive unit mix of all 2 bedroom, 1 bath

� Off street parking

� Ten minute bike ride to center of UC Davis Main Campus

Unit Features � Central heat and air

� Dishwashers

� Patio/Balconies

Address 1312-1322 Drake Drive Davis, CA 95616

Price $1,190,000

Down Payment $357,000

Units 8

Price/Unit $148,750

Rentable Sq Ft 6,000

Price/Sq Ft $198

Current Cap Rate 4.19%

Market Cap Rate 4.95%

Current GRM 12.00

Market GRM 11.26

Year Built N/A

Average Unit Size 750

Land Area .40 Acres

Parking 8/1.00 space per unit

Property Overview




Property Overview

Type # % Est. AVG Sq FtAVG

In Place Rent $/Sq FtAVG

Market Rent $/Sq Ft

2x1 8 100% 750 $1,022 $1.36 $1,095 $1.46

Rent Roll

Income/Expense

Operations Summary Current Market

Scheduled Gross Rent $98,112 $105,120

Vacancy ($4,906) ($3,154)

Effective Gross Rent $93,206 $101,966

Other Income $580 $580

TOTAL INCOME $93,786 $102,546

OPERATING EXPENSES $22,747 $22,043

NON-OPERATING EXPENSES $20,420 $20,420

Capital Reserves $2,000 $2,000

TOTAL EXPENSES $45,167 $44,463

NET OPERATING INCOME $48,619 $58,083

Mechanical Systems

HVAC Central Heat & Air

Hot Water 1 - Water Heater per Building

Details

Property Address 1312-1322 Drake DriveCity, CA Davis, CA

County Davis

APN034-012-010-000/034-012-

009-000

Submarket North/West Davis

County Use Quadplex

Attributes

Rentable Units 8



Land Area 0.40 Acres

Parking 8/1.00 space/unit

Year Built N/A

Construction

Foundation Slab

Exterior Walls Stucco

Roof Flat

Patio/Balcony Select Units

Laundry Facilities Yes

Pool/Spa No




Operations Statement - Combined

Operations Pro Forma Current Pro Forma Market

Schedule Gross Rent $98,112 $105,120

Vacancy ($4,906) ($3,154)



Total Income $93,786 $102,546 Expenses ANNUAL ANNUAL

Administrative $300 $300

Contract Services $1,200 $1,200

Marketing & Promotion $320 $320

Management Fee $6,857 $6,153

Repairs & Mainteance $4,800 $4,800

Utilities $9,270 $9,270

Operating Expenses $22,747 $22,043Real Estate Taxes $11,900 $11,900

Special Assessments $3,520 $3,520

Insurance $5,000 $5,000

Non-Operating Expenses $20,420 $20,420 Capital Reserves $2,000 $2,000

Total Expenses $45,167 $44,463

Net Operating Income $48,619 $58,083 Debt Service $44,760

Net Cash Flow $13,323

Principal Reduction $15,854

Total Return $29,177




Property Overview



Market Rent $/Sq Ft

2x1 4 100 750 $1,017 $1.36 $1,095 $1.46

Rent Roll

Income/Expense



Vacancy ($2,441) ($1,577)



TOTAL INCOME $46,665 $51,273






Mechanical Systems


Hot Water 1 - Water Heaters

Details

Property Address 1312 Drake DriveCity, CA Davis, CA

County Davis

APN 034-012-010-000


County Use Quadplex

Attributes

Rentable Units 4





Year Built N/A

Construction

Foundation Slab


Roof Flat



Pool/Spa No

1312 Drake Drive

Rent Comparables Sale Comparables1312 Drake Drive Overview



Operations Statement



Vacancy ($2,441) ($1,577)





Contract Services $600 $600




Utilities $5,058 $5,058

Operating Expenses $11,741 $11,444 Real Estate Taxes $5,950 $5,950


Insurance $2,500 $2,500

Non-Operating Expenses $10,210 $10,210 Reserves $1,000 $1,000


Net Operating Income $23,714 $28,619 Debt Service ($23,976)




1312 Drake Drive

1312 Drake Drive Overview



Property Overview



Market Rent $/Sq Ft2x1 4 100% 750 $1,027 $1.37 $1,095 $1.46

Rent Roll

Income/Expense



Vacancy ($2,465) ($1,577)



TOTAL INCOME $47,121 $51,273






Mechanical Systems


Hot Water 1 - Water Heaters

Details

Property Address 1322 Drake DriveCity, CA Davis, CA

County Davis

APN 034-012-009-000


County Use Quadplex

Attributes

Rentable Units 4





Year Built N/A

Construction

Foundation Slab


Roof Flat



Pool/Spa No

1322 Drake Drive




Operations Statement - Combined



Vacancy ($2,465) ($1,577)





Contract Services $600 $600




Utilities $4,212 $4,212

Operating Expenses $11,006 $10,598 Real Estate Taxes $5,950 $5,950


Insurance $2,500 $2,500

Non-Operating Expenses $10,210 $10,210 Reserves $1,000 $1,000


Net Operating Income $24,905 $29,465 Debt Service ($23,976)




1322 Drake Drive




Bird’s Eye Map

N

DRAKE DRIVE

SY

CA

MO

RE

LA

NE


Location Maps



Parcel MapParcel Map

Yolo

, C

A, 2011-2

012 -

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10-0

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Alt:0

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312 D

RA

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DR

, D

AV

IS, C

A 9

5616-0

864, S

heet: 1

of 1

Local Map

NN

W COVELL BLVD

SY

CA

MO

RE

LA

NE


CALIFORNIA

113

DRAKE DRIVE 1312-1322 Drake Drive

Location Maps



Area Map

CALIFORNIA

113

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ON

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RD1312-1322 Drake Drive

Location Maps



Sales Comparable Properties

Subject

1312-1322 Drake Drive Price $1,190,000 Cap Rate (Current) 4.19%

Davis, CA Units 8 Cap Rate (Market) 4.95%

Drake Drive Apartments $/Unit $148,750 GRM (Current) 12.00

Sq Ft 6,000 GRM (Market) 11.26

$/Sq Ft $198.33

Unit Mix 8-2x1

Comparable #1

1351 Drake Drive Price $640,000 Cap Rate (Current) --

Davis, CA 95616 Units 4 GRM (Current) --

$/Unit $160,000 COE 9/2012

Sq Ft 3700

$/Sq Ft $172.97

Unit Mix 2-2x1, 2-3x1.5

Comparable #2



$/Unit $162,250 COE 4/2012

Sq Ft 5104

$/Sq Ft $127.16

Unit Mix 2-2x1, 2-3x2

Sale Comparables



Sales Comparable Properties

Comparable #3



$/Unit $158,125 COE 11/2011

Sq Ft 5632

$/Sq Ft $112.30

Unit Mix 2 Studios, 2-3x1.5

Sale Comparables



Sales Comparable Properties Summary

Properties Price Units $/Unit Sq Ft $/Sq Ft Cap Rate GRM COE

1312-1322 Drake Drive $1,190,000 8 $148,750 6,000 $198.33 4.95% 11.26

Davis, CA

1. 1351 Drake Drive $640,000 4 $160,000 3,700 $172.97 9/2012

Davis, CA 95616

2. 1331 Drake Drive $649,000 4 $162,250 5,104 $127.16 4/2012

Davis, CA 95616

3. 1342 Drake Drive $632,500 4 $158,125 5,632 $112.30 11/2011

Davis, CA 95616

Sale Comparables



Sales Comparable Map & Legend

Properties


Davis, CA

1. 1351 Drake Drive

Davis, CA 95616

2. 1331 Drake Drive

Davis, CA 956163. 1342 Drake Drive

Davis, CA 95616

1

3

2

CALIFORNIA

113


Sale Comparables

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