mosaic investment opportunity - .net framework

Confidential Offering Memorandum

colliers.comMOSAIC INVESTMENT OPPORTUNITY 225 Cypress Ave // Marina // CA

Colliers International450 West Santa Clara

San Jose, CA 95113P: +1 408 282 3800

Mosaic Investment Opportunity

Marina Student Housing

225 Cypress Ave., Marina, CA , 93933

©2018 Colliers International. Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification.

Tom De JongSenior Vice President+1 408 282 [email protected] License No. 01889017

For property related questions please contact Tom de Jong:

225 Cypress Ave


CONTENTS Investment Overview

Site DescriptionInvestment HighlightsInvestment Summary

Development Cost SummaryRental Income Assumptions

Pro FormaLoan Terms

Sales Analysis


INVESTMENT OVERVIEW

California State University Monterey Bay, located in the Monterey County towns of Marina and Seaside has a severe shortage of available student housing opportunities. Over the past three years the developer of the Mosaic Student Housing project has worked closely with the planning department within Marina to secure approvals for this aesthetically pleasing and efficient design to include a mangers studio apartment and 11 student units offering a total of 51 beds.

Highly attractive with an excellent amenity-set and very attractive returns for the buyer of this project, the Mosaic Student Housing development project is shovel ready with permits available for immediate pick-up!

Each unit features easy access from exterior walkways, a private balcony, fully equipped kitchen, full bathroom and closet space. Communal amenities include an observation deck, basketball court, full gym, storage lockers and secured parking spaces.

This project is shovel ready and offers the buyer very attractive returns upon completion.

Address 225 Cypress Ave, Marina, CA 93933

Sale Price $1,750,000 (entitled land)

Units 12 apartments, 51 beds plus managers studio

Amenities Sun deck, basketball court, gym, private lockers, full kitchens, elevator, balconies

Parking 12 spaces (8 underground and secured, 1 ADA)

Parcel Size 12,250 SF

Zoning C-R

Proposed Building 10,988 SF

SITE DESCRIPTION

California State University, Monterey Bay (CSUMB) is a public university in the 23-campus California State University system, located in Marina and Seaside, in Monterey County, California. It is on the site of the former U.S. Army base Fort Ord in the northern Central Coast of California region and is accredited by the Western Association of Schools and Colleges.


• This is a proposed student housing development with fully engineered drawings, ready for building permits in the Monterey County city of Marina. This project serves the California State University, Monterey Bay campus and is located approximately 2.5 miles from campus.

• This project includes a managers studio apartment on the ground floor and 11 student units with a total of 51 beds.

• Each unit includes a full kitchen and balcony.

• On-site amenities include an observation deck, basketball court, gym, private lockers, individual unit balconies elevator, secured parking and easy unit access.

INVESTMENT HIGHLIGHTS

CSUMB was founded in 1994 with a student enrollment of 654 students. Classes began August 28, 1995. The founding president was Peter Plympton Smith. It was the 21st campus in the California State University System. The university offers 23 bachelor’s degrees, 7 master’s degrees, and teaching credentials.

As of fall 2016, the university has 6,883 undergraduate students, 544 graduate students and 163 full-time faculty members.The university operates on the semester system. The current president Eduardo M. Ochoa was appointed in May 2012.

CSUMB, in conjunction with Hartnell college, developed CSin3, a 3-year computer science program funded in part by grants from the Foundation established by Matsui Nursery. That Foundation also donated 210 acres of prime agricultural land to the Hartnell College Foundation, with a valuation of about $20 million.

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INVESTMENT SUMMARY

Acquisition $1,750,000

Development Costs $3,317,120

Finance Costs $225,000

Total $5,292,120

Capitalization

Income 2018 2019 2020 2021 Total

Rental Income - $282,257 $677,417 $697,739 $1,657,412

Other Income - $14,583 $35,000 $36,050 $85,633

Total Income - $296,840 $712,417 $733,789 $1,743,046

Operating Expense $(21,000) $(116,027) $(141,265) $(142,540) $(420,831)

Net Operating Income $(21,000) $180,813 $571,152 $591,249 $1,322,215

Debt Expense: First $(120,000) $(242,712) $(275,424) $(275,424) $(913,560)

Cash Flow $(141,000) $(61,899) $295,728 $315,825 $408,655

Projected Returns 2018 to 2022

2018 2019 2020 2021 Total

Investment $(1,750,000) - - - $(1,750,000)

Operating Profits $(141,000) $(61,899) $295,728 $315,825 $408,655

Sales Proceeds - - - $6,674,621 $6,674,621

Investor ROI - $296,840 $712,417 $733,789 $1,743,046

IRR 57% ROI 304.8%

Internal Rate of Return (IRR)

DEVELOPMENT COST SUMMARY

ImprovementsConstruction - 14,336 sq.ft. @ $170/sq.ft. $2,437,120

Contingency $200,000

Elevator $100,000Furnishings $160,000Permits & Fees $195,000Underground Parking/Paving $225,000

Total Improvement Costs $3,317,120

Acquisition $1,750,000

Interest Reserve $225,000

Total Finance Costs $225,000

Finance Costs

Total Project Costs $5,292,120


RENTAL INCOME ASSUMPTIONS

Unit # Single Double Bunk # Students Monthly Annual

Unit 2 0 0 1 2 $2,300 $27,600

Unit 3 0 0 2 4 $4,600 $55,200

Unit 4 1 0 2 5 $6,050 $72,600

Unit 5 0 0 2 4 $4,600 $55,200

Unit 6 0 0 2 4 $4,600 $55,200

Unit 7 2 0 1 4 $5,200 $62,400

Unit 8 1 0 3 7 $8,350 $100,200

Unit 9 4 0 1 6 $8,100 $97,200

Unit 10 1 0 3 7 $8,350 $100,200

Unit 11 2 1 0 4 $5,200 $62,400

Unit 12 2 1 0 4 $5,200 $62,400

Total 13 2 17 51 $62,550 $750,600

Vacancy Factor 5% Net Revenue $713,070

Unit Breakdown Income 2018 2019 2020 2021

Rental Income - $282,257 $677,417 $697,739

Vending Income - $14,583 $35,000 $36,050

Underground Parking - $5,000 $12,000 $12,000

Storage Lockers - $3,000 $7,200 $7,200

Total Income - $304,840 $731,617 $752,989

Operating Expenses

Administrative - $6,000 $6,000 $6,000

Insurance - $12,000 $12,000 $12,000

Property Management & Repairs - $12,194 $29,265 $30,120

Taxes $6,000 $50,000 $50,000 $50,000

Utilities $15,000 $30,000 $30,000 $30,000

Vending COGS (40%) - $5,833 $14,000 $14,420

Total Operating Expenses $21,000 $116,027 $141,265 $142,540

Cash Flow before Financing $(21,000) $188,813 $590,352 $610,449

Mortgage $120,000 $242,712 $275,424 $275,424

Net Cash Flow $(141,000) $(53,899) $314,928 $335,025

Single $1,450

Double $1,150

Bunks $1,150

Months Rented in 2019 5

Rental Rates Monthly

PRO FORMA

LOAN TERMS SALES ANALYSIS

Cap Rate (6) Cap Rate (5.5) Cap Rate (5.5)

Cash Flow before Debt Service $610,449 $610,449 $610,449

Cap Rate 6.0% 5.5% 5.0%

Future Gross Sales $10,174,157 $11,099,081 $12,208,989

Cost to Sell

Commission (5%) $508,708 $554,954 $610,449

Closing costs (0.75%) $76,306 $83,243 $91,567

Total Cost to Sell $585,014 $638,197 $702,017

Loan Payoff $3,786,263 $3,786,263 $3,786,263

Pre-Tax Proceeds $5,802,880 $6,674,621 $7,720,709


Takeout Loan - Amortization Schedule

Date Payment Interest Principal BalanceJan, 2019 $22,952 $17,416 $5,536 $3,994,464Feb, 2019 $22,952 $17,394 $5,558 $3,988,906Mar, 2019 $22,952 $17,372 $5,580 $3,983,326Apr, 2019 $22,952 $17,350 $5,602 $3,977,724May, 2019 $22,952 $17,328 $5,624 $3,972,100Jun, 2019 $22,952 $17,306 $5,646 $3,966,454Jul, 2019 $22,952 $17,283 $5,669 $3,960,785Aug, 2019 $22,952 $17,261 $5,691 $3,955,094Sep, 2019 $22,952 $17,238 $5,714 $3,949,380Oct, 2019 $22,952 $17,216 $5,736 $3,943,644Nov, 2019 $22,952 $17,193 $5,759 $3,937,885Dec, 2019 $22,952 $17,170 $5,782 $3,932,103

Total 2019 $275,424 $207,527 $67,897 $3,932,103

Jan, 2020 $22,952 $17,147 $5,805 $3,926,298Feb, 2020 $22,952 $17,124 $5,828 $3,920,470Mar, 2020 $22,952 $17,101 $5,851 $3,914,619Apr, 2020 $22,952 $17,078 $5,874 $3,908,745May, 2020 $22,952 $17,055 $5,897 $3,902,848Jun, 2020 $22,952 $17,032 $5,920 $3,896,928Jul, 2020 $22,952 $17,008 $5,944 $3,890,984Aug, 2020 $22,952 $16,985 $5,967 $3,885,017Sep, 2020 $22,952 $16,961 $5,991 $3,879,026Oct, 2020 $22,952 $16,937 $6,015 $3,873,011Nov, 2020 $22,952 $16,914 $6,038 $3,866,973Dec, 2020 $22,952 $16,890 $6,062 $3,860,911

Total 2020 $275,424 $204,232 $71,192 $3,860,911

Jan, 2021 $22,952 $16,866 $6,086 $3,854,825Feb, 2021 $22,952 $16,842 $6,110 $3,848,715Mar, 2021 $22,952 $16,817 $6,135 $3,842,580Apr, 2021 $22,952 $16,793 $6,159 $3,836,421May, 2021 $22,952 $16,769 $6,183 $3,830,238Jun, 2021 $22,952 $16,744 $6,208 $3,824,030Jul, 2021 $22,952 $16,720 $6,232 $3,817,798Aug, 2021 $22,952 $16,695 $6,257 $3,811,541Sep, 2021 $22,952 $16,670 $6,282 $3,805,259Oct, 2021 $22,952 $16,645 $6,307 $3,798,952Nov, 2021 $22,952 $16,620 $6,332 $3,792,620Dec, 2021 $22,952 $16,890 $6,062 $3,860,911

Total 2021 $275,424 $200,776 $74,648 $3,786,263

Total Loan $4,400,000

Average Balance $2,860,000

Interest Rate 4.75%

Interest Rate 12

Interest $135,850

Construction Loan

Total Loan $4,400,000

Interest Rate 4.75%

Amortization 30 Years

Monthly Payment $22,952

Takeout Loan


This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, condi-tions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2018. All rights reserved.

Colliers International450 West Santa Clara Street

San Jose, CA 95113P: +1 408 282 3800

Tom De JongSenior Vice President+1 408 282 [email protected] License No. 01889017

For property related questions please contact Tom de Jong:

mosaic investment opportunity - .net framework

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