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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


rentpropertyname1


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



Price/Unit: $83,333

Price/SF: $117.00


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


Price/Unit: $71,526 46 2 Bdr 1 Bath

Price/SF: $102.00 1 3 Bdr 1 Bath


Year Built: 1975

3

PROPERTY NAME

MARKETING TEAM

RANCHO TERRACE

COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


24

SALES COMPARABLES IN ESCROW COMPARABLES

Units Unit Type



Price/Unit: $80,357

Price/SF: $95.00


Year Built: 1976

VINTAGE FAIRE

4

11070 HIRSCHFIELD WAY, RANCHO CORDOVA, CA, 95670 10870 COLOMA RD, RANCHO CORDOVA, CA, 95670


Sales Price: $2,825,000

Price/Unit: $70,625

Price/SF: $71.00


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


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


RANCHO TERRACE


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


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


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


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


PUERTA VILLA WEST


27

PUERTA VILLA WEST10440 CROETTO WAY, RANCHO CORDOVA, CA, 95670


3


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


4


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


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


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


PARK KNOLL


28

PARK KNOLL10680 COLOMA ROAD, RANCHO CORDOVA, CA, 95670


6


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


7


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


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


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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