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Rare Opportunity - 25 Units In Mill Valley

Joby TapiaSenior Investment Sales AdvisorO: (415) 329-4623M: (415) 254-4788F: (415) [email protected] BRE #01307460

Confidential Offering Memorandum presented by:

1052 Redwood Hwy, Mill Valley, CA94941

1052 Redwood Hwy | Mill Valley, CA 94941FOR SALE

5 Section 1Property Information

11 Section 2Location Information

16 Section 3Financial Analysis

20 Section 4Sales Comparables

25 Section 5Demographics

Table of

Contents

Confidentiality &Disclosure Agreement

The information contained in the following Investment Summary is proprietary and strictly confidential. It is

intended to be reviewed only by the party receiving it from NAI Northern California Investment Real Estate

Brokerage and should not be made available to any other person or entity without the written consent of Broker.

This Investment Summary 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. Broker 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 improvements thereon, or the financial condition or business prospects of

any tenant, or any tenant’s plans or intentions to continue occupancy of the subject property.

The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable;

however, Broker has not verified, and will not verify, any of the information contained herein, nor has Broker

conducted any investigation regarding these matters and makes no warranty or representation whatsoever

regarding the accuracy or completeness of the information provided. All potential purchasers must take

appropriate measures to verify all of the information set forth herein.

4

1PROPERTYINFORMATION

6

Property

DescriptionProperty Overview

Presenting the Sunset Apartments, a rare opportunity toacquire a 25 unit property in desirable Mill Valley, availablefor the first time in nearly 20 years. The subject propertyprovides a relaxing home for the residents with views ofMt. Tam and a refreshing pool to dip into on warmsummer afternoons. Stable tenancy with low vacancytranslates into a solid investment for years to come.

Location Overview

Mill Valley is located 10 miles north of San Francisco inSouthern Marin County, at the base of the iconic MountTamalpais. Its zip code (94941) is one of the mostdesirable housing locations in the Bay Area for higherincome commuters. Mill Valley offers a convenientlocation near Hwy. 101, providing ready access to SanFrancisco, Napa Valley and the East Bay. Mill Valley offerssuperior quality of life with abundant recreational activities(especially hiking and cycling), restaurants and hotels. Theschools are part of the highly rated Mill Valley SchoolDistrict.

1 PROPERTY INFORMATION

Property

DetailsPROPERTY NAME: The Sunset Apartments

PROPERTY ADDRESS: 1052 Redwood Hwy

Mill Valley, CA 94941

APN: 034-071-09

LOT SIZE: 28,348 SF

BUILDING SIZE: 12,100 SF

BUILDING CLASS:

ZONING: R3, Mill Valley

PARKING SPACES: 25

PARKING RATIO: 1:1

YEAR BUILT: 1960

NUMBER OF STORIES: 2

FOUNDATION: Concrete Slab

WALLS: Stucco

NUMBER OF UNITS: 25

ROOF: Flat Composite


7

8

HighlightsComplete

Property Highlights

• Relaxing pool area just outside front doors

• Rental upside in hot S. Marin Market

• Opportunity to increase income with RUBSimplementation

• Easy Access to Hwy. 101 and Golden Gate Transit

• 3 blocks from Tiburon Open Space Preserve hikingarea


ExecutiveSummary

Property Overview

Presenting the Sunset Apartments, a rare opportunity to acquirea 25 unit property in desirable Mill Valley, available for the firsttime in nearly 20 years. The subject property provides a relaxinghome for the residents with views of Mt. Tam and a refreshingpool to dip into on warm summer afternoons. Stable tenancy withlow vacancy translates into a solid investment for years to come.

Location Overview

Mill Valley is located 10 miles north of San Francisco in SouthernMarin County, at the base of the iconic Mount Tamalpais. Its zipcode (94941) is one of the most desirable housing locations in theBay Area for higher income commuters. Mill Valley offers aconvenient location near Hwy. 101, providing ready access toSan Francisco, Napa Valley and the East Bay. Mill Valley offerssuperior quality of life with abundant recreational activities(especially hiking and cycling), restaurants and hotels. Theschools are part of the highly rated Mill Valley School District.

Property Summary

Sale Price: $6,695,000Price/Unit: $267,800Price/SF: $553Number Of Units: 25Cap Rate: 4.75%GRM: 13.48Market Cap Rate: 5.72%Market GRM: 12.32NOI: $318,013

Lot Size: 28,348 SF

Building Size: 12,100 SF

Year Built: 1960

Renovated: 2015

Zoning: R3, Mill Valley

Market: San Francisco

Sub Market: Marin

Cross Streets: Tiburon Blvd.


9

10

PhotosAdditional


2LOCATIONINFORMATION

Regional

Map

12

2 LOCATION INFORMATION

1052 Redwood Hwy

MapsLocation

13


Aerial

Map

14


15

Site

Plan


3FINANCIAL ANALYSIS

Investment Overview CURRENT MARKET

Price $6,695,000 $6,695,000

Number of Units 25 25

Price per Unit $ 278,000 $267,800

Approximate Square Footage 12,100 12,100

Price per Square Foot $553 $553

GRM 13.48 12.32

CAP Rate 4.75% 5.72%

Operating Data CURRENT MARKET

Gross Scheduled Income $ 496,680 $ 543,600

Vacancy Cost (2.0%) - $ 10,126 - $ 11,628

Gross Operating Income $ 491,354 $ 569,772

Operating Expenses - $ 173,341 - $ 187,053

Net Operating Income $ 318,013 $ 382,719

Debt Service - $ 225,028 - $268,346

Pre-Tax Cash Flow $ 92,985 $ 114,373

Cash-on-Cash Return % (yr 1) 3.45% 5.94%

Principal Reduction (yr 1) + $ 72,294 + $ 86,211

Total Return (yr 1) $ 165,279 $ 200,584

Return on Investment % 6.13% 10.42%

Financing Data CURRENT MARKET

Loan Amount $4,000,000 $4,770,000

LTV 59.75% 71.25%

Interest Rate 3.850% 3.850%

Debt Service - $ 225,028 $ 268,346

Debt Service Monthly $ 18,752 $ 22,362

Amortization 30 30

SummaryFinancial

17

3 FINANCIAL ANALYSIS

Income Summary CURRENT MARKET

Rental Income $ 501,480 $ 543,600

RUBS (proposed) $ 0 $ 33,000

Laundry $ 4,800 $ 4,800

Vacancy ($ 10,126) ($ 11,628)

GROSS ANNUAL INCOME $ 496,354 $ 569,722

Expense Summary CURRENT MARKET

Insurance $ 4,500 $ 4,500

Maintenance $ 20,299 $ 30,000

Miscellaneous Parts $ 980 $ 5,000

Refuse $ 10,732 $ 10,732

PG&E $ 23,055 $ 23,055

Water $ 3,418 $ 3,409

NEW Taxes $ 85,902 $ 85,902

Special Assessments $ 18,205 $ 18,205

Reserves $ 6,250 $ 6,250

GROSS ANNUAL EXPENSES $ 173,341 $ 187,053

NET OPERATING INCOME $ 322,813 $ 382,719

Income &Expenses

18


UnitNumber

UnitBed

UnitBath

UnitSize (SF)

Current MonthlyRent

Current MonthlyRent/SF

Market MonthlyRent

Market MonthlyRent/SF CAM

101 1 1 600 $1,950 $3.25 $2,200 $3.67 -

102 1 1 550 $1,950 $3.55 $2,100 $3.82 -

103 1 1 550 $1,950 $3.55 $2,100 $3.82 -

104 1 1 550 $1,950 $3.55 $2,100 $3.82 -

105 1 1 550 $1,950 $3.55 $2,100 $3.82 -

106 0 1 300 $1,600 $5.33 $1,800 $6.00 -

107 0 1 300 $1,700 $5.67 $1,800 $6.00 -

108 0 1 300 $1,775 $5.92 $1,800 $6.00 -

109 0 1 300 $1,580 $5.27 $1,800 $6.00 -

110 0 1 300 $1,500 $5.00 $1,800 $6.00 -

201 0 1 300 $1,500 $5.00 $1,800 $6.00 -

202 0 1 300 $1,900 $6.33 $1,800 $6.00 -

203 0 1 300 $1,690 $5.63 $1,800 $6.00 -

204 0 1 300 $1,500 $5.00 $1,800 $6.00 -

205 0 1 300 $1,600 $5.33 $1,800 $6.00 -

206 0 1 300 $1,600 $5.33 $1,800 $6.00 -

207 0 1 300 $1,700 $5.67 $1,800 $6.00 -

208 0 1 300 $1,700 $5.67 $1,800 $6.00 -

209 0 1 300 $1,600 $5.33 $1,800 $6.00 -

210 0 1 300 $1,700 $5.67 $1,800 $6.00 -

211 0 1 300 $0 $0.00 $500 $1.67 -

212 0 1 300 $1,600 $5.33 $1,800 $6.00 -

213 0 1 300 $1,700 $5.67 $1,800 $6.00 -

214 0 1 300 $1,650 $5.50 $1,800 $6.00 -

215 0 1 300 $1,580 $5.27 $1,800 $6.00 -

Totals/Averages 8,800 $40,925 $4.65 $45,300 $5.38 -

RentRoll


19

4SALES COMPARABLES

SalesComparables

SUBJECT PROPERTY

1052 Redwood Hwy | Mill Valley, CA 94941

$6,695,000Sale Price: 1960Year Built:

12,100 SFBuilding SF: $553.31Price PSF:

25No. Units: $267,800Price / Unit:

13.48GRM: 4.75%Cap:

$318,013NOI:

30 CENTRAL CT.30 Central Ct. | Mill Valley, CA 94941

$3,317,700Sale Price: 26,471 SFLot Size:

1964Year Built: 9,380 SFBuilding SF:

$353.70Price PSF: 12No. Units:

$276,475Price / Unit: 3.28%CAP:

02/06/2015Closed: 100%Occupancy:

15.82GRM: $109,536NOI:

1

1

CORTEBELLA APARTMENTS1441 Casa Buena Dr. | Corte Maders, CA 94925




$332,812Price / Unit: 3.80%CAP:


11.70GRM: $4,047,000NOI:

2

2

52-67 LOWER VIA CASITAS52-67 Lower Via Casitas | Greenbrae, CA 94904




$343,750Price / Unit: 3.70%CAP:


15.36GRM: $211,450NOI:

3

3

21

4 SALES COMPARABLES

SalesComparables

833 BRIDGEWAY833 Bridgeway | Sausalito, CA 94965




$614,285Price / Unit: 3.56%CAP:


18.60GRM: $167,722NOI:

4

4

22

4 SALES COMPARABLES

SummarySales Comparables

Subject Property Price Bldg. SF Price/SF Price/Unit CAP GRM # Of Units

The Sunset Apartments1052 Redwood HwyMill Valley, CA 94941

$6,695,000 12,100 SF $553.31 $267,800 4.75% 13.48 25

Sale Comps Price Bldg. SF Price/SF Price/UNIT CAP GRM # Of Units Close

130 Central Ct.30 Central Ct.

Mill Valley, CA 94941$3,317,700 9,380 SF $353.70 $276,475 3.28% 15.82 12 02/06/2015

2Cortebella Apartments

1441 Casa Buena Dr.Corte Maders, CA 94925

$10,650,000 30,480 SF $349.41 $332,812 3.80% 11.70 32 09/30/2015

352-67 Lower Via Casitas52-67 Lower Via CasitasGreenbrae, CA 94904

$5,500,000 13,875 SF $396.40 $343,750 3.70% 15.36 16 05/11/2015

4833 Bridgeway833 Bridgeway

Sausalito, CA 94965$4,300,000 5,000 SF $860.00 $614,285 3.56% 18.60 7 10/30/2015

Totals/Averages Price Bldg. SF Price/SF Price/Unit CAP GRM # Of Units

$5,941,925 14,684 SF $489.88 $391,830 3.59% 15.37 16.75

4 SALES COMPARABLES

23

MapSales Comparables

1052 Redwood Hwy | Mill Valley, CA 94941Subject Property

1 30 Central Ct.Mill Valley, CA 94941

30 Central Ct.2 1441 Casa Buena Dr.

Corte Maders, CA 94925

Cortebella Apartments3 52-67 Lower Via Casitas

Greenbrae, CA 94904

52-67 Lower Via Casitas

4 833 BridgewaySausalito, CA 94965

833 Bridgeway

4 SALES COMPARABLES

24

5DEMOGRAPHICS

26

Demographics

* Demographic data derived from 2010 US Census

Report

5 DEMOGRAPHICS

Population 1 Mile 3 Miles 5 MilesTOTAL POPULATION 7,890 61,714 117,273

MEDIAN AGE 46.9 45.1 43.5

MEDIAN AGE (MALE) 45.4 44.3 42.6

MEDIAN AGE (FEMALE) 48.0 45.7 44.3

Households & Income 1 Mile 3 Miles 5 MilesTOTAL HOUSEHOLDS 3,727 27,639 50,975

# OF PERSONS PER HH 2.1 2.2 2.3

AVERAGE HH INCOME $139,497 $148,955 $143,681

AVERAGE HOUSE VALUE $961,605 $956,123 $973,736

Ethnicity 1 Mile 3 Miles 5 Miles% HISPANIC 8.1% 6.1% 15.8%

Race 1 Mile 3 Miles 5 Miles% WHITE 82.2% 86.1% 82.8%

% BLACK 3.0% 4.1% 2.8%

% ASIAN 8.6% 6.5% 5.9%

% HAWAIIAN 0.0% 0.1% 0.2%

% INDIAN 0.4% 0.2% 0.3%

% OTHER 5.8% 3.1% 8.2%

rare opportunity - 25 units in mill valley for sale 1052 ... · mill valley offers a convenient...

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