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Sonata Townhomes8101 Kelton DriveGilroy, CA 95020

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. © 2018 Marcus & Millichap. All rights reserved.

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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.

SONATA TOWNHOMES

Gilroy, CA

ACT ID ZAB0010145

2

TABLE OF CONTENTS

SONATA TOWNHOMES

3

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Property Photos

Aerial Photos, Regional and Local Maps

Discover Gilroy

FINANCIAL ANALYSIS 02Rent Roll Summary

Operating Statement

Pricing Detail

MARKET COMPARABLES 03Sales Comparables

MARKET OVERVIEW 04Demographic Analysis

Investment Overview

SONATA TOWNHOMES

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $5,625,000

Loan Type Proposed New

Interest Rate 3.6%

Amortization 30 Years

Loan Term 5 Years

Loan to Value 75%

Debt Coverage Ratio 1.27

THE OFFERING

Property Sonata Townhomes

Price $7,500,000

Property Address 8101 Kelton Dr, Gilroy, CA

Assessors Parcel Number 790-39-023

Zoning R-3

SITE DESCRIPTION

Number of Units 18

Number of Buildings 5

Number of Stories 2

Year Built/Renovated 1987

Rentable Square Feet 27,000

Lot Size 1.4 acre(s)

Type of Ownership Fee Simple

Parking 18 Garages / 18 Open / 7 Guest

UTILITIES

Water Master metered

Electric Individual

Gas Individual

CONSTRUCTION

Foundation Crawl

Framing Wood Frame

Exterior Wood Siding

Parking Surface Concrete Driveways, Asphalt Open Parking

Roof 30-year Composition

5

SONATA TOWNHOMES

OFFERING SUMMARY

▪ Townhouse complex - 3 BR/1.5 BA

▪ Private Yards / Private garage with opener and direct access

▪ Washer/Dryer Hook Ups

▪ Forced Heat And Air Conditioning

▪ 11 Renovated Units

INVESTMENT HIGHLIGHTS

Sonata Townhomes, consisting of (18) 3 bedroom / 1 ½ bath townhomes in a family oriented residential neighborhood in northwest Gilroy, provides the benefits of a "single family home" lifestyle and historically securing long-term residents for owners. Townhome units are unique in Gilroy and its surrounding neighborhoods, and three bedroom units are even more rare in the local markets. Sonata brings a high demand rental option to this dynamic location in Santa Clara County.

The 18 townhomes in 5 buildings are dispersed on a generous 1.4 acre parcel and open green spaces. 11 of the units have been recently renovated with sophisticated upgrades including new quartz counter tops, interior LED lighting, new vinyl wood plank flooring, fixtures and hardware, window coverings, custom paint, and new appliances. Residents appreciate the added convenience of private fenced patios, the comfort of forced individual air conditioners, washer/dryer hookups, and individual garages with automatic garage door openers and direct in-unit access.

Sonata offers additional rent growth thru a combination of the generous California rent control ordinance (5% + annual CPI index = 7.8% in 2019), and continuation of the unit renovation program for the remaining 7 thus capturing $180 per unit/month income growth. The property has received a clean property inspection report and Section 1 termite clearance, based on the seller’s attention to remediation of maintenance items including, exterior siding and trim repairs, drainage repairs, new LED exterior lighting lends itself to owners pride of ownership.

INVESTMENT OVERVIEW

6

SONATA TOWNHOMES

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Advance Services Inc 2,167

Saint Louise Hospital 500

Gavilan Jint Cmnty Cllege Dst 345

Footh-De Anza Commun Colleg Di 318

Giacalone Electrical Svcs Inc 275

Walmart 259

Cordevalle Golf Club LLC 250

Soares Lumber Company 230

Gilroy Gardens Family Theme Pk 204

Target 200

Costco 196

Communty Slns For Chldrn Fmls 185

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 22,407 61,088 69,865

2010 Census Pop 18,764 51,069 58,430

2018 Estimate HH 7,051 17,846 20,562

2010 Census HH 5,849 14,807 17,079

Median HH Income $93,159 $88,925 $91,520

Per Capita Income $39,933 $35,295 $37,049

Average HH Income $126,285 $119,981 $125,056

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

18 3 BR/1.5 BA 1,500

18 Total 27,000

VITAL DATA

Price $7,500,000 CURRENT YEAR 1

Down Payment 25% / $1,875,000 CAP Rate 5.19% 5.57%

Loan Amount $5,625,000 GRM 12.27 11.68

Loan Type Proposed NewNet Operating Income

$389,569 $417,957

Interest Rate / Amortization

3.6% / 30 YearsNet Cash Flow After Debt Service

4.41% / $82,683 5.92% / $111,072

Price/Unit $416,667 Total Return 10.09% / $189,127 11.81% / $221,411

Price/SF $277.78

Number of Units 18

Rentable Square Feet 27,000

Number of Buildings 5

Number of Stories 2

Year Built / Renovated 1987 / 2020

Lot Size 1.4 acre(s)

7

DETAILED CAPITAL IMPROVEMENTS

8101 Kelton Drive

OFFERING SUMMARY

Exterior

Motorized Garage Doors (18) $8,640

Door and Trim Paint $7,000

Dry Rot Remediation – trim, fascia, parapet walls $12,975

TOTAL CAPITAL IMPROVEMENTS $218,023

Since 2019, Sonata Townhomes has received the following upgrades:

Interior

Full Unit Renovation (11 of 18 units)Includes: Granite kitchen countertops, vinyl plank flooring, bedroom carpeting, full paint, lighting, hardware replacement

$189,408

- Units 2, 3, 4, 7, 8, 9, 10, 11, 14, 15, 18

Sonata Townhomesprovides residents

the best of both worlds ~

The look and feel of“single-home living”,

and the community ofshared open green spaces.

Located in a quiet residential pocket

Sonata Townhomes8101 Kelton

Gilroy, CA

Renovated units feature updated modern bathrooms and kitchens

AERIAL PHOTO

SONATA TOWNHOMES

11

Sonata Townhomes8101 Kelton

Gilroy, CA

REGIONAL MAP

SONATA TOWNHOMES

12

LOCAL MAP

SONATA TOWNHOMES

13

*Total number of employees at multiple metro locations

LOCATION HIGHLIGHTS

❖ Excellent Proximity to Top RegionalEmployers

❖ Anritsu, Morgan Hill, 500 Employees, 11.7 mi.❖ IBM, San Jose, 1,500 Employees, 17.7mi.❖ Hitachi Data Systems, San Jose, 3,000* Employees, 22.7 mi.❖ Ernst & Young, San Jose, 650 Employees, 29.8 mi.❖ Adobe Systems, San Jose, 1,000 Employees, 29.9 mi.❖ PricewaterhouseCoopers, San Jose, 700 Employees, 29.9 mi.❖ Netflix, Los Gatos, 2,000* Employees, 32.6 mi.❖ eBay, San Jose, 16,200* Employees, 33.5 mi.❖ Intel, Santa Clara, 5,700* Employees, 35.9 mi.❖ Cisco Systems, San Jose, 8,000 Employees, 36.3 mi.❖ Saint Louise Regional Hospital, Gilroy, 500 Employees, 3.4 mi.❖ Monterey Gourmet Foods, Gilroy, 250 Employees, 4.0 mi.❖ Gavilan College, Gilroy, 460 Employees, 4.2 mi.

❖ The Gilroy Caltrain Station, located Two miles from Sonata Townhomes,offers residents convenient commutes to San Jose, Santa Clara, Sunnyvale,Mountain View, Palo Alto, the Peninsula and San Francisco. Just a short drivefrom the community is US Hwy 101 that provides access to the Bay Area’s keytransportation arteries, including State Routes 85, 87 and 237, andInterstates 280, 680 and 880.

❖ Minutes to extensive retail options – including the Gilroy Premium OutletCenter (145 Designer and Name Brand Outlet Stores), Pacheco Pass Center(WalMart, Costco and Best Buy), Gilroy Crossings (Target, Kohl’s, Pier 1) andGilroy’s Boutique Downtown District. The Gilroy Plaza Shopping Center andTown Center Shopping Center, Home to Safeway, CVS Pharmacy, Nob HillFoods and Starbucks, are both within blocks from Sonata Townhomes.

❖ Gilroy demographics demonstrate the strength of the Multifamily marketand the potential for continued rent growth: only 37 percent of thepopulation can afford a median-priced home, and the Own-versus-RentAffordability Gap is $833, a 51% cost premium.

❖ Abundant parks, open space, recreation centers, hiking and biking pathsthroughout the city and region, including the 87,000-acre Henry W. Coe StatePark, Dowdy Ranch and Yamato Hot Springs, Eagle Ridge Golf Club, Gilroy GolfCourse, Gilroy Sports Park, Gilroy Gardens, El Roble and Miller Parks,Christmas Hill Park and Ranch and the Debell Uvas Creek Preserve.

Gilroy Caltrain Station - DowntownGilroy

Downtown San Jose (Sixth Stop from Gilroy Caltrain Station)

GILROY ~ Quality of Life


Exceptional Retail and DiningFrom its charming downtown historic district to the thriving Gilroy PremiumOutlets, Gilroy provides an abundance of retail options for its residents andneighboring cities in the South Bay.

The Gilroy Premium Outlets, located just 2.4 miles northeast of The Vineyardsalong U.S. Highway 101, draws shoppers from all over the Bay Area and CentralCoast regions. This impressive five-phase retail complex boasts over 150 namebrand retail outlet stores including designer fashions and sportswear, fineleather and luggage, accessories and jewelry, housewares and home furnishings,gifts and specialty items and a variety of dining options. Key outlet storesinclude Coach, Hugo Boss, Ralph Lauren, Saks Fifth Avenue Off 5th, TommyHilfiger, Banana Republic, Gap, Ann Taylor, Calvin Klein, Samsonite, Michael Kors,Sunglass Hut, Cole Haan, Calphalon Kitchen, and Sony.

At the intersection of U.S. Highway 101 and State Highway 152, the 15-acrePacheco Pass Complex features national tenants such as Walmart, Old Navy,HomeGoods, Costco, Best Buy, Chili’s and a multitude of other retail, dining,financial and personal service vendors. Across from the Pacheco Pass Centeralong Highway 152 is Gilroy Crossings with approximately 420,000 squarefeet of retail space anchored by prominenttenants such as Target, Kohl’s, Bed,Bath & Beyond, Pier 1 Imports, Michaels, Starbucks, Panera Bread andBevMo!.

Downtown Gilroy’s historic district, less than two miles from The Vineyards,offers an attractive blend of antique and boutique retail shopping experiencesand an ever-growing selection of dining and entertainment opportunities.Farmer’s markets, live concerts, theater, comedy shows, dancing and historicwalking tours all addtothecharmandvitality of this downtowndistrict.

Closer to home, residents of The Vineyards have convenient access toneighborhood retail centers just a few blocks away on 1st Street. The GilroyPlaza Shopping Center includes anchor tenants Safeway and CVS Pharmacy,and the Town Plaza Shopping Center features Nob Hill Foods, Starbucks andvarious dining and personal serviceretailers.

Gilroy Premium Outlets

Located just 20 miles south of San Jose, Gilroy provides residents with a serene

and relaxing setting within a short commute of Silicon Valley’s thriving and busy environment. The city is nestled between the Santa Cruz Mountains to the west, the Diablo Range to the east and the Monterey Peninsula/Central Coast to the south. The area offers residents an abundance of exceptional local and regional recreation, retail, dining and entertainment options.

Downtown Gilroy


Eagle Ridge GolfClub

The award-winning Eagle Ridge Golf Club and residential community are set along thebase of the Gavilan Mountains less than two miles from The Vineyards. The premier,gated single-family residential community consists of approximately 900 homes spreadover 120 acres with an average price of $730,000 over the last 12 months. In addition tothe Eagle Ridge golf course, the community includes social activities, a pool, tenniscourts, basketball courts and two parks. The public golf course has been ranked as one ofthe top 10 courses in Silicon Valley. The Clubhouse, situated high up in the foothills aboveGilroy, offers spectacular panoramicviews of theUvas Valley below.

Eagle Ridge Golf Club

Gilroy Winery

The Gilroy Wine Trail

The Gilroy Wine Trail is comprised of 18 well-regarded local wineries. Boutique wineproduction is a large part of Gilroy’s western area, mostly consisting of older familyestates around the Mount Madonna County Park mountain bases. The trail runs throughGilroy, San Martin and Morgan Hill and features local vintners such as Guglielmo Winery,Martin Ranch Winery, Thomas Kruse and Solis Winery to name a few. Daily wine tastingsand tours are available at most wineries on the Trail with some also offering concerts,festivals, wine-maker dinners andspecial event venues.

Outdoor Recreation and Entertainment

Gilroy has 12 parks, and has won more park design awards from the California Park andRecreation Society than any other city in California, including awards for Christmas HillPark (home of the Garlic Festival), Las Animas Park, San Ysidro Park, and El Roble Park.The Uvas Creek Park Preserve is a 125-acre natural corridor along the banks of the UvasCreek and includes nature trails and an interpretive center. The Gilroy Gardens FamilyTheme Park, owned by the City of Gilroy, is California’s only horticultural theme parkdesigned for families with young children and garden lovers featuring rides, attractionsand majestic gardens and educational exhibits. Regional and State Parks in the Gilroyvicinity include Mt. Madonna County Park (3,039 acres) to the west, Uvas Canyon CountyPark (1,049 acres) to the north, Harvey Bear Ranch County Park (4,595 acres) and HenryCoe State Park (32,000 acres) to the east. In addition, Anderson, Calero, Chesbro, Uvasand Coyote reservoirs as well as Coyote Lake are all nearby, offering a myriad of water-related sports and recreational activityoptions.

Gilroy is home of the annual Garlic Festival, one of the largest food festivals in the UnitedStates. What started as a small regional festival has become an international event thatdraws over 100,000 garlic lovers from around the world and generates total revenue inexcess of $2 million. In addition to offering many diverse garlic based dishes, attendeesalso enjoy three stages full of musical entertainment, the Great Garlic Cook-off andcelebrity cooking demonstrations.

CONVENIENT ACCESS TO MAJOR TRANSPORTATION CORRIDORS AND PUBLIC TRANSIT STATIONS

Estimated Travel Times (by car, from subject property)

Distance to Local Points of Interest (from the Gilroy CaltrainStation)

7

8

1

10

12

11

9

54

3

2

Highway 152 1 minute; 0.1 milesGilroy Caltrain Station 5 minutes; 2.2 milesHighway 101 6 minutes; 2.0 milesHighway 85 23 minutes; 21.6 milesHighway 1 30 minutes; 18.1 milesSan Jose Diridon Intermodal Transit Station 37 minutes; 32.7 milesSan Jose International Airport 39 minutes; 36.1 milesFremont BART Station 54 minutes; 48.7 miles

Morgan Hill 15 minutesDowntown San Jose 50 minutesSanta Clara 55 minutesSunnyvale 64 minutesMountain View 69 minutesPalo Alto 76 minutesFremont * 80 minutesRedwood City 83 minutesMillbrae 98 minutesDublin/Pleasanton * 108 minutesSan Francisco International Airport * 110 minutes4th & King Street(San Francisco/Mission Bay/AT&T Park/Chase Center)

115 minutes

SONATA TOWNHOMES

8101 Kelton Drive

GILROY ~

* Involves transfer to one or more of the ACE, Amtrak, BART or VTA bus lines.

Note: These times listed are estimated times.

Financial Analysis

FINANCIAL ANALYSIS

SONATA TOWNHOMES

RENT ROLL SUMMARY

20

FINANCIAL ANALYSIS

SONATA TOWNHOMES

OPERATING STATEMENT

21

NOTES

FINANCIAL ANALYSIS

SONATA TOWNHOMES

PRICING DETAIL

22

Market Overview

SAN JOSEOVERVIEW

1

Known to the world as Silicon Valley, the San Jose metro is located at the

southern end of the San Francisco Bay and encompasses Santa Clara and

San Benito counties. A large portion of the area’s 1,315 square miles is

unincorporated ranch and farmland.

The metro contains roughly 2 million inhabitants and more than half of the

region’s residents reside in the city of San Jose. It is the metro’s largest city

with more than 1 million residents, followed by Sunnyvale and Santa Clara.

Venture capital funds received in the 1990s helped to turn the area into the

world’s most prominent technology hub, a distinction that remains today.

MARKET OVERVIEW

METRO HIGHLIGHTS

PREMIER HIGH-TECH CENTER

Silicon Valley’s dense concentration of high-tech

jobs is world renowned, attracting a variety of large

employers and startups.

HIGH INCOMES

Well-paying jobs in the tech sector contribute to a

median annual household income level that is

almost double the U.S. median.

HIGHLY EDUCATED WORKFORCE

Nearly half of all residents age 25 and older have

obtained at least a bachelor’s degree, well above

the U.S. average.

SONATA TOWNHOMES

ECONOMY▪ The San Jose employment base contains more than 1.1 million workers, ranking the metro

as one of the 30 largest job markets in the nation.

▪ There are 18 Fortune 500 companies headquartered in San Jose, including Intel, Cisco

Systems, Apple Inc., eBay and Alphabet.

▪ The area’s many institutions of higher learning, including Stanford, San Jose State and

Santa Clara University, support these companies by graduating thousands of engineering

and computer science students each year.

MAJOR AREA EMPLOYERS

Cisco Systems

County of Santa Clara

Adobe Systems Inc.

Hewlett-Packard Co.

City of San Jose

Intel Corp.

eBay

U.S. Veterans Medical Center

San Jose State University

Apple* Forecast

2

SONATA TOWNHOMES

SHARE OF 2019 TOTAL EMPLOYMENT

MANUFACTURING

16%GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

2%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

12%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

9%INFORMATION

21%

4%

9% 9% 3%

15%

PROPERTY NAME

MARKETING TEAM

SONATA TOWNHOMES

DEMOGRAPHICS

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

▪ The metro is expected to add approximately 107,300 people through 2024 and during

this time more than 41,000 households will be formed.

▪ High home prices contribute to a homeownership rate of 56 percent, which is below

the national rate of 57 percent.

▪ Roughly 48 percent of residents age 25 and older hold a bachelor’s degree, including

22 percent who have also obtained a graduate or professional degree.

The San Jose metro has an enviable combination of major universities that produce a

highly educated workforce, cutting-edge firms and exceptional affluence. Residents can

visit a plethora of museums, including the San Jose Museum of Art and the Tech Museum

of Innovation. Santa Clara County is home to performing arts companies and hosts the San

Jose Jazz Festival. The San Francisco 49ers play their home games at Levi’s Stadium and

the San Jose Sharks hockey team plays at the SAP Center. Other sports venues include

Excite Ballpark and Stevens Stadium. The metro is minutes away from San Francisco and

some of the world’s finest wine-producing regions, notably the Napa, Sonoma and

Alexander valleys.

QUALITY OF LIFE

3

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

SONATA TOWNHOMES

2019 Population by Age

0-4 YEARS

6%5-19 YEARS

19%20-24 YEARS

6%25-44 YEARS

30%45-64 YEARS

26%65+ YEARS

13%

37.1

2019MEDIAN AGE:

U.S. Median:

38.1

$121,300

2019 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$60,800

2M

2019POPULATION:

Growth2019-2024*:

5.4%

694K

2019HOUSEHOLDS:

5.9%

Growth2019-2024*:

PROPERTY NAME

MARKETING TEAM

SONATA TOWNHOMES

DEMOGRAPHICS

SONATA TOWNHOMES

27

SAN JOSE METRO AREA

Transit Networks Increasingly Key for

Development and Investment Strategies

Mountain View captivating builders, driving development to record high. Apartment construction will be

abundant this year as 5,500 units are slated for delivery — the highest total this millennium. Northern sections

of Sunnyvale will get much-needed supply amid sub-3 percent vacancy, while downtown San Jose will also

witness significant development as builders focus on areas that align with public transit routes. Mountain View

will post the strongest supply growth, adding more than 1,500 units, as developers seek to keep pace with the

steady job creation of nearby tech firms. The influx of supply will outstrip the expected absorption of 4,600

apartments, putting short-term pressure on marketwide vacancy as it’s pushed to the low-4 percent range.

Some areas such as East San Jose will retain limited apartment availability, keeping local rent growth among

the strongest in the market. Over the past five years, the average effective rent in East San Jose has risen 29

percent, the most of any submarket within the metro.

Favorable yields bringing investors to urban San Jose. Local buyers remain a key component of

investment activity as they home in on many of the area’s Class C assets, seeking properties with upside

potential. Assets throughout Los Altos and Palo Alto in the five- to 10-unit range will remain highly targeted

this year, fueled by the vigorous rental demand from nearby employment hubs, in addition to consistently

robust rent growth. Downtown San Jose will also attract these investors as this part of market offers

comparatively affordable entry costs and average returns in the mid-4 percent band, up to 50 basis points

above the market average. While local interest should remain stable, out-of-state buyers will continue to

arrive in San Jose, particularly institutional groups. In recent months, investors from the East Coast directed

their focus to the area’s larger Class B complexes along the Caltrain line in southern sections of the market,

purchasing units for roughly $420,000 per door.

* Estimate; ** Forecast

Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

PROPERTY NAME

MARKETING TEAM

SONATA TOWNHOMES

DEMOGRAPHICS

SONATA TOWNHOMES

28

SAN JOSE METRO AREA

2020 Market Forecast

Job creation will remain diverse this year, with organizations adding 20,000

new employees.

Development will further accelerate following the completion of 2,700 units

last year and 1,400 apartments in 2018.

Elevated development will place pressure on market vacancy, driving it up to

4.3 percent. The rate decreased each of the previous three years by a total

of 80 basis points.

Coming off a 6.4 percent boost last year, the market’s rent growth will remain

stable in 2020 as the average effective rent rises to $3,080 per month.

Smaller Class C assets with value-add potential near major employers will

remain sought after by investors, strengthening bidding climates and putting

additional pressure on cap rates.

* Estimate; ** Forecast

Sources: CoStar Group, Inc.; RealPage, Inc.; Real Capital Analytics

Employment

up 1.7%

Construction

5,500 units

Vacancy

up 40 bps

Rent

up 3.3%

Investment

PROPERTY NAME

MARKETING TEAM

SONATA TOWNHOMES

DEMOGRAPHICS

PROPERTY NAME

MARKETING TEAM

SONATA TOWNHOMES

DEMOGRAPHICS

Source: © 2019 Experian

Created on February 2020

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Population 23,652 63,576 72,667

▪ 2018 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2018 Estimate 15,024 48,568 63,955

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Households 7,568 18,990 21,890

▪ 2018 Estimate


Average (Mean) Household Size 3.17 3.32 3.30

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 7.33% 6.41% 6.46%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2023 Projection 7,568 18,990 21,890

2018 Estimate 7,107 18,011 20,776

Owner Occupied 4,203 10,628 12,388

Renter Occupied 2,848 7,217 8,174

Vacant 56 165 213

▪ Persons In Units

2018 Estimate Total Occupied Units 7,051 17,846 20,562

1 Person Units 17.78% 16.61% 16.73%

2 Person Units 26.27% 25.28% 26.00%

3 Person Units 16.45% 16.07% 16.08%

4 Person Units 19.13% 18.95% 18.44%

5 Person Units 10.57% 10.94% 10.65%

6+ Person Units 9.80% 12.15% 12.10%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2018 Estimate

$200,000 or More 11.46% 10.85% 12.26%

$150,000 - $199,000 13.52% 12.88% 12.41%

$100,000 - $149,000 21.94% 21.61% 21.72%

$75,000 - $99,999 11.06% 10.55% 10.65%

$50,000 - $74,999 13.18% 12.95% 13.26%

$35,000 - $49,999 9.89% 9.06% 8.71%

$25,000 - $34,999 6.42% 7.81% 7.21%

$15,000 - $24,999 6.38% 6.77% 6.61%

Under $15,000 6.16% 7.52% 7.18%

Average Household Income $126,285 $119,981 $125,056

Median Household Income $93,159 $88,925 $91,520

Per Capita Income $39,933 $35,295 $37,049

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2018 Estimate Total Population 22,407 61,088 69,865

Under 20 30.54% 30.73% 29.90%

20 to 34 Years 21.11% 21.20% 20.89%

35 to 39 Years 6.69% 6.60% 6.40%

40 to 49 Years 13.99% 13.80% 13.70%

50 to 64 Years 17.76% 17.30% 18.12%

Age 65+ 9.91% 10.35% 10.97%

Median Age 33.84 33.60 34.41

▪ Population 25+ by Education Level

2018 Estimate Population Age 25+ 14,038 38,068 44,180

Elementary (0-8) 8.98% 10.43% 10.25%

Some High School (9-11) 7.89% 8.93% 9.06%

High School Graduate (12) 19.20% 21.14% 21.03%

Some College (13-15) 23.12% 21.27% 21.37%

Associate Degree Only 9.87% 8.92% 8.73%

Bachelors Degree Only 20.75% 18.30% 18.48%

Graduate Degree 8.33% 8.36% 8.42%

▪ Population by Gender

2018 Estimate Total Population 22,407 61,088 69,865

Male Population 49.79% 50.04% 50.21%

Female Population 50.21% 49.96% 49.79%

29

Income

In 2019, the median household income for your selected geography is

$90,765, compare this to the US average which is currently $58,754.

The median household income for your area has changed by 39.34%

since 2000. It is estimated that the median household income in your

area will be $106,496 five years from now, which represents a change

of 17.33% from the current year.

The current year per capita income in your area is $39,668, compare

this to the US average, which is $32,356. The current year average

household income in your area is $126,750, compare this to the US

average which is $84,609.

Population

In 2019, the population in your selected geography is 427,435. The

population has changed by 16.68% since 2000. It is estimated that the

population in your area will be 434,022.00 five years from now, which

represents a change of 1.54% from the current year. The current

population is 49.93% male and 50.07% female. The median age of the

population in your area is 36.75, compare this to the US average

which is 37.95. The population density in your area is 339.87 people

per square mile.

Households

There are currently 133,231 households in your selected geography.

The number of households has changed by 18.12% since 2000. It is

estimated that the number of households in your area will be 138,381

five years from now, which represents a change of 3.87% from the

current year. The average household size in your area is 3.11

persons.

Employment

In 2019, there are 146,707 employees in your selected area, this is

also known as the daytime population. The 2000 Census revealed that

60.93% of employees are employed in white-collar occupations in this

geography, and 39.02% are employed in blue-collar occupations. In

2019, unemployment in this area is 6.28%. In 2000, the average time

traveled to work was 31.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

58.60% White, 1.43% Black, 0.22% Native American and 9.93%

Asian/Pacific Islander. Compare these to US averages which are:

70.20% White, 12.89% Black, 0.19% Native American and 5.59%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 47.86% of the current year

population in your selected area. Compare this to the US average of

18.01%.

PROPERTY NAME

MARKETING TEAM

SONATA TOWNHOMES

Housing

The median housing value in your area was $642,721 in 2019,

compare this to the US average of $201,842. In 2000, there were

77,782 owner occupied housing units in your area and there were

35,008 renter occupied housing units in your area. The median rent at

the time was $815.

Source: © 2019 Experian

DEMOGRAPHICS

30

8

SONATA TOWNHOMES

DEMOGRAPHICS

31

Market Comparables

SONATA TOWNHOMES

SALES COMPARABLES MAP

33

SONATA TOWNHOMES

(SUBJECT)

100 San Augustine Way

Skyline Terrace

101 Douglas Drive

8205 Wren Avenue

Madison Terrace

SALES COMPARABLES

ON MARKET COMPARABLES

1

2

3

4

5

PROPERTY NAMESONATA TOWNHOMES

SALES COMPARABLES

34

SALES COMPARABLES

Avg. $339.51

Avg. $457.67

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

$400.00

$450.00

$500.00

SonataTownhomes

100 SanAugustine

Way

SkylineTerrace

101 DouglasDrive

8205 WrenAvenue

MadisonTerrace

Average Price Per Square Foot

Avg. $366,094

Avg. $400,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

SonataTownhomes

100 SanAugustine

Way

SkylineTerrace

101 DouglasDrive

8205 WrenAvenue

MadisonTerrace

Average Price Per Unit

Avg. 12.18

Avg. .00

0.00

1.40

2.80

4.20

5.60

7.00

8.40

9.80

11.20

12.60

14.00

SonataTownhomes

100 SanAugustine

Way

SkylineTerrace

101 DouglasDrive

8205 WrenAvenue

MadisonTerrace

Average GRM

Avg. 4.03%

Avg. 0.00%

0.0

0.6

1.2

1.8

2.4

3.0

3.6

4.2

4.8

5.4

6.0

SonataTownhomes

100 SanAugustine

Way

SkylineTerrace

101 DouglasDrive

8205 WrenAvenue

MadisonTerrace

Average Cap Rate

SALES COMPARABLES

ON MARKET COMPARABLES

SALES COMPS AVG

ON MARKET COMPS AVG

PROPERTY NAME

MARKETING TEAM

SONATA TOWNHOMES

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


35

SALES COMPARABLES ON MARKET COMPARABLES

Units Unit Type

Offering Price: $7,500,000 18 3 BR 1.5 BA

Price/Unit: $416,667

Price/SF: $277.78

CAP Rate: 5.31%

GRM: 12.38

Total No. of Units: 18

Year Built: 1987

Underwriting Criteria

Income $586,175 Expenses $187,595

NOI $398,580 Vacancy ($21,205)

SONATA TOWNHOMES8101 Kelton Dr, Gilroy, CA, 95020

1

Units Unit Type

Close Of Escrow: 8/23/2019 3 2 Bdr 1 Bath

Sales Price: $1,413,500 1 3 Bdr 2 Bath


Price/SF: $362.34

CAP Rate: 3.20%


Year Built: 1979

100 SAN AUGUSTINE WAY100 San Augustine Way, Scotts Valley, CA, 95066

Units Unit Type


Sales Price: $19,600,000


Price/SF: $373.48


Year Built: 1974

2

SKYLINE TERRACE1330 Skyline Drive, Monterey, CA, 93940

PROPERTY NAME

MARKETING TEAM

SONATA TOWNHOMES

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


36

SALES COMPARABLES ON MARKET COMPARABLES

Units Unit Type

Close Of Escrow: 5/17/2019 4 Bdr Bath

Sales Price: $2,280,000 6 2 Bdr 1 Bath


Price/SF: $250.11


Year Built: 1980

3

101 DOUGLAS DRIVE101 Douglas Drive, Soquel, CA, 95073

4

Units Unit Type


Sales Price: $1,965,000


Price/SF: $372.09

CAP Rate: 4.86%

GRM: 12.18


Year Built: 1971

8205 WREN AVENUE8205 Wren Avenue, Gilroy, CA, 95020

On Market

List Price: $3,200,000


Price/SF: $457.67


Year Built: 1980

5

MADISON TERRACE7191 Eigleberry Street, Gillroy, CA, 95020

Exclusively Listed by

Sonata Townhomes

8101 Kelton Drive

Gilroy, CA 95020

Eduardo CernaSen ior Manag ing Director Inves tmentsSen ior Director , na t iona l Mul t i Hous ing GroupEd.Cerna@MarcusMi l l i chap.com

offering memorandum sonata townhomes 8101 kelton drive ... · parking surface concrete driveways,...

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