120 Bulkley Avenue - LoopNet · 2017-08-07 · Built in 1959, 120 Bulkley Avenue is situated on a 0.66-acre lot and consists of 20,235 net rentable square feet. The property is located

120 Bulkley AvenueA 28-Unit Multifamily Investment Opportunity

Located in Sausalito, California

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CONFIDENTIALITY AGREEMENTThe 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.

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 contact the listing agents for more details.

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Table of Contents04

EXECUTIVE SUMMARY

10PROPERTY DESCRIPTION

18FINANCIAL ANALYSIS

22MARKET COMPARABLES

32MARKET OVERVIEW

120 Bulkley Avenue

Executive Summary

The OfferingMarcus & Millichap, as the exclusive listing agent, is pleased to present 120 Bulkley Avenue, a 28-unit multifamily investment property located in the affluent city of Sausalito, California. Built in 1959, 120 Bulkley Avenue represents a rare opportunity to acquire a mid-size apartment community in one of the most sought after locations in Marin County. As such, investors will have the opportunity to immediately increase rental income by more aggressively managing the property. Consisting of one, four-story residential building situated on a 0.66-acre parcel, the property features 28 residential units in a fantastic location overlooking the San Francisco Bay.

The property includes carport parking, on-site laundry facilities, and balconies with unparalleled views of the San Francisco Bay. Residents will enjoy easy walking access to local art, retail, dining and entertainment options in Downtown Sausalito via the Excelsior Lane Stairway. Residents also benefit from walking access to the Sausalito ferries which travel to the Historic Ferry Building in the Financial District or Fisherman’s Wharf.

Given its attractive location, the ability to capture additional income simply by raising rents to market levels, and the dearth of mid-sized multifamily properties in the submarket, 120 Bulkley Avenue is well suited to provide investors with healthy returns and long term appreciation.

120 Bulkley Avenue

5120 BULKLEY AVENUE | OFFERING MEMORANDUMACTIVITY ID Y0100388

Investment Highlights ⇢ Highly desirable rental location in Sausalito, an affluent, waterfront community located

on the southern tip of Marin County, just across the Golden Gate Bridge from San Francisco.

⇢ Near major cross streets of Princess Street and Bridgeway.

⇢ Direct walking access to local art, retail, dining, and entertainment options in Downtown Sausalito via the Excelsior Lane Stairway.

⇢ Under 5 minute walk to the Sausalito ferries which travel to the Historic Ferry Building in the Financial District or to Fisherman's Wharf.

⇢ Attractive amenity package including carport parking, on-site laundry facilities, and balconies with views of the San Francisco Bay.

⇢ Situated in close proximity to U.S. Route 101, providing residents with access to greater Marin County to the North and Downtown San Francisco via the Golden Gate Bridge to the South.

Offering Summary120 BULKLEY AVENUE

Price $15,750,000

Number of Units 28

Net Rentable Square Feet 20,235

Number of Floors 4

Year Built 1959

Lot Size (Acres) 0.66

6 120 BULKLEY AVENUE | OFFERING MEMORANDUMACTIVITY ID Y0100388


120 Bulkley Avenue

8

120 Bulkley Avenue


Property Description

Property OverviewBuilt in 1959, 120 Bulkley Avenue is situated on a 0.66-acre lot and consists of 20,235 net rentable square feet. The property is located on the hills of Sausalito, just across the Golden Gate Bridge from San Francisco and is in close proximity to Bridgeway, a major thoroughfare for southern Marin County. 120 Bulkley Avenue is also situated just over a half mile from U.S. Interstate 101, providing residents with convenient access to job centers in Marin County and San Francisco County.

The 28-unit community is comprised of spacious one-, and two-bedroom floor plans, averaging 722 square feet. The property provides residents with attractive amenities including carport parking, on-site laundry facilities, and balconies with views of the San Francisco Bay.


Property SummaryTHE OFFERINGAddress 120 Bulkley Avenue

City Sausalito

State CA

Zip 94965

Assessor's Parcel Number 065-071-23

SITE DESCRIPTIONNumber of Units 28

Year Built 1959

Net Rentable Square Feet 20,235

Number of Residential Buildings 1

Number of Floors 4

Parcel Size 0.66 Acres

Density 42 Dwelling Units Per Acre

Parking 45 Spaces

Parking Ratio 1.6 Spaces Per Unit

UTILITIESWater North Bay Water: Owner

Phone AT&T: Tenant

Electric PG&E: Tenant

Gas PG&E: Tenant



120 Bulkley Avenue

120 Bulkley Avenue

Financial Analysis

NOTES/ASSUMPTIONS(1) Owner and Broker make no representation as to the actual square footage of any units. Prospective purchasers are encouraged to independently confirm the measurement of all units.

UNIT TYPE NO. OF UNITS

ESTIMATEDSQ. FT. (1)

CURRENT RENT/UNIT

CURRENT RENT/SF

CURRENTRENT/MONTH

MARKET RENT/UNIT

MARKET RENT/SF

MARKET RENT/MONTH

1 Bed/1 Bath 24 700 $1,450 - $2,200 $2.07 - $3.14 $46,400 $2,950 $4.21 $70,800

2 Bed/1 Bath 4 850 $3,050 - $3,400 $3.81 - $4.25 $13,050 $3,950 $4.60 $15,800

TOTALS: 28 20,235 $59,450 $86,600

BUILDING DATAAddress 120 Bulkley Avenue

City, State and Zip Sausalito, CA 94965

Number of Units 28

Approx. Net Rentable SF 20,235

Lot Size (Acres) 0.66

Year Built 1959

Assessor's Parcel Number 065-071-23

FINANCIAL INDICATORSPrice $15,750,000

Down 100% / $15,750,000

Price/Unit $562,500

Price/Gross SF $778.35

Current CAP 2.68%

Market CAP 4.82%

Current GIM 21.67

Market GIM 14.73

Ownership Fee Simple

Financial Summary


Income & Expense ComparisonINCOME CURRENT MARKET

TOTAL PER UNIT TOTAL PER UNIT

GROSS POTENTIAL RENT $713,400 $25,479 $1,039,200 $37,114

Laundry $13,440 $480 $13,440 $480

RUBS - - $16,800 $600

Total Other Income $13,440 $480 $30,240 $1,080

GROSS POTENTIAL INCOME $726,840 $25,959 $1,069,440 $38,194

Less Vacancy Allowance (GPR) 2.0% / $14,268 $510 2.0% / $20,784 $742

EFFECTIVE GROSS INCOME $712,572 $25,449 $1,048,656 $37,452

EXPENSES CURRENT MARKETTOTAL PER UNIT TOTAL PER UNIT

Real Estate Taxes (1.07%+$30,716) $199,241 $7,116 $199,241 $7,116

Insurance $12,296 $439 $12,296 $439

Contract Services $1,236 $44 $1,236 $44

Repairs & Maintenance $18,073 $645 $18,073 $645

On-Site Payroll $12,000 $429 $12,000 $429

Management Fee $15,000 $536 $15,000 $536

Pacific Gas & Electric Company $5,747 $205 $5,747 $205

Garbage $22,232 $794 $22,232 $794

Marin Water $3,211 $115 $3,211 $115

Security $1,140 $41 $1,140 $41

TOTAL EXPENSES $290,176 $10,363 $290,176 $10,363

Expenses per SF $14.34 $15.34

Percent of EGI 40.7% 27.7%

NET OPERATING INCOME $422,396 $15,086 $758,480 $27,089



Market Comparables

120 BULKLEY AVENUE

1 77 Bulkley Avenue

2 45 Bulkley Avenue

3 23-29 Bulkley Avenue

RentComparables Map

2

1

3


Rent Comparables77 BULKLEY AVENUESausalito, CA 94965 1

UNIT TYPE SQUARE FEET MARKET RENT RENT PSFStudio* 332 $1,900 $5.72

1 Bed/1 Bath 630 $3,600 $5.71

2 Bed/1 Bath 915 $4,500 $4.92

3 Bed/2.5 Bath 1,372 $3,450 $2.51

Units: 20 + 1* Year Built: 1963

120 BULKLEY AVENUESausalito, CA 94965

UNIT TYPE SQUARE FEET* CURRENT RENTS RENT PSF1 Bed/1 Bath 700 $1,450 - $2,200 $2.07 - $3.14

2 Bed/2 Bath 850 $3,050 - $3,400 $3.81 - $4.25

Units: 28 Year Built: 1959

Subject Property


NOTES*Unit measurements are estimated.

NOTES*Studio unit is non-conforming.

45 BULKLEY AVENUESausalito, CA 94965 2

UNIT TYPE SQUARE FEET MARKET RENT RENT PSF1 Bed/1 Bath 855 $2,550 $2.98

1 Bed/1 Bath 1,105 $4,200 $3.80

2 Bed/2 Bath 1,560 $3,600 $2.31


23-29 BULKLEY AVENUESausalito, CA 94965 3

UNIT TYPE SQUARE FEET MARKET RENT RENT PSF1 Bed/1 Bath 700 $2,950 $4.21

2 Bed/1 Bath 850 $5,000 $5.88



120 BULKLEY AVENUE

1 1-22 Mallard Road

2 77 Bulkley Avenue

3 833 Bridgeway

4 45 Bulkley Avenue

5 23-29 Bulkley Avenue

Sales Comparables Map

2

1

3

4 5


Sale Date: September 9, 2016

Sale Price: $11,700,000

Year Built: 1963

Units: 20+1*

Price/Unit: $585,000

Approx. Net Rentable SF: 14,529

Price/NRSF: $805.29

CAP Rate: 2.90%

GIM: 20.48

Unit Mix1 Studio*

16 1 Bed/1 Bath

3 2 Bed/1 Bath

1 3 Bed/2.5 Bath


Sales Comparables

Status: Active

List Price: $15,750,000

Year Built: 1959

Units: 28



Price/NRSF: $778.73

CAP Rate (Current/Market): 2.68%/4.82%

GIM (Current/Market): 21.67/14.73

Unit Mix24 1 Bed/1 Bath

4 2 Bed/1 Bath

120 BULKLEY AVENUESausalito, CA 94965

Sale Date: March 17, 2017

Sale Price: $18,200,000

Year Built: 1951

Units: 22



Price/NRSF: $831.58

CAP Rate: 3.00%

GIM: 20.00


4 2 Bed/2 Bath

1-22 MALLARD ROADBelevedere, CA 94920 1


NOTES*Studio Unit is Non-Conforming

Sales Comparables

Sale Date: October 27, 2015

Sale Price: $4,300,000

Year Built: 1965

Units: 7

Price/Unit: $614,285.71


Price/NRSF: $1,026.74

CAP Rate: 3.73%

GIM: 17.78

Unit Mix1 Studio

6 1 Bed/1 Bath

833 BRIDGEWAYSausalito, CA 94965 3

Sale Date: June 10, 2016


Year Built: 1956

Units: 4



Price/NRSF: $770.73

CAP Rate: 3.11%

GIM: 20.40


1 2 Bed/2 Bath


Sale Date: October 17, 2014


Year Built: 1956

Units: 4



Price/NRSF: $864.40

CAP Rate: 3.94%

GIM: 15.98


1 2 Bed/1 Bath

23-29 BULKLEY AVENUESausalito, CA 94965 5



120 BULKLEY AVENUE

1 589-595 Bridgeway

2 45 Reed Boulevard

3 55 Roque Moraes Court

On MarketComparablesMap

2

1

3


Status: Active

List Price: $3,595,000

Year Built: 1962

Units: 6



Price/NRSF: $724.80

CAP Rate: 4.13%

GIM: 16.74


Status: Active


Year Built: 1960

Units: 10



Price/NRSF: $469.23

CAP Rate: 4.16%

GIM: 16.61


1 2 Bed/1 Bath

2 2 Bed/2 Bath

On Market Comparables

Status: Active


Year Built: 1929

Units: 12 Dwelling Units + 6 Retail Suites



Price/NRSF: $612.64

CAP Rate: 2.76%

GIM: 18.82

Unit Mix8 Studio

4 1 Bed/1 Bath

6 Retail Suites

589-595 BridgewaySausalito, CA 94965 1 45 REED BOULEVARD

Mill Valley, CA 94941 2 55 ROQUE MORAES COURTMill Valley, CA 94941 3

NOTES: No Parking


Market Overview

Submarket: Marin CountyCOUNTY PROFILE:Located in the North Bay across the Golden Gate Bridge from San Francisco, Marin County is a dynamic community of 250,000 well-educated and involved residents. From its tidelands to the top of Mt. Tamalpais, Marin enjoys a high quality of life marked by beautiful beaches, groves of redwoods and oaks, rolling foothills, and scenic valleys.

Economic Profile: As 2016 comes to a close, Marin County remains one of the most vibrant economies in California, regardless of size. Employment growth continues, mainly in service-oriented industries. More than 300 new payroll businesses started in Marin County in 2016 net. Marin County continues to have the highest personal income per capita in the state of California.

Job Growth: Jobs growth took place in leisure and hospitality, businesses that include hotels, restaurants, bars, and other tourism and lifestyle businesses. Retail grew jobs and professional services (legal, accounting) also grew. Financial services businesses, which include businesses from banking to insurance, fell slightly. Marin County gained 300 payroll businesses from 2015 Q1 to 2016 Q1 (2.2 percent growth). As of August 2016, Marin County has a residential unemployment rate of 3.4 percent seasonally adjusted, the lowest of any county in California.

Real Estate and Financial Markets: Marin County housing prices continue to increase in the face of regional demand and some change in the markets. According to the California Association of REALTORS®, Marin County’s median home price for a single-family home was approximately $1.087 million in August 2016, up over 11 percent from 2015. With continued low interest rates, the threat of interest rates rising soon, and a continued lack of inventory across the Bay Area, Marin County is a microcosm of what remains a tight housing market with excess demand.

The residential market in 2015 saw prices rise quickly back toward 2007 levels, and housing prices in 201, across many areas of the Bay Area, have now closed in on a “full” housing recovery: the inflation-adjusted price of housing is now very close to the pre-recession level. Continued job growth throughout the Bay Area is driving housing demand in Marin County; as housing prices rise, wealth more than income begins to the major reason for continued growth of housing prices.


Submarket: Sausalito, CACITY PROFILE:Sausalito is a beautiful waterfront community located on the southern tip of Marin County, just across the Golden Gate Bridge from San Francisco. This is a colorful waterfront town that reminds many of a European fishing village. Sausalito provides world-class hotels and restaurants and a diverse selection of shopping, including art galleries and retail fashion. Regular ferry service from San Francisco makes the town easily accessible for both commuters and tourists. The city also offers investors the highest rentals rates in the wealthiest county in the state.

Economic Profile: While casual observers may consider Sausalito’s economy primarily based on retail or tourism, the demand for Sausalito’s businesses lies in its non-retail firms. Over 77 percent of companies in Sausalito are non-retail firms. Sausalito businesses annually generate over $1.2 billion of business revenue; Sausalito businesses generate about 5 percent of the income made by Marin County businesses, and employ about 2.5 percent of the workforce in Marin County. Professional services, such as architecture, engineering, legal, accounting, specialty design, and other consulting, generate over $388 million per year in business revenue, and employ over 1,290 workers in Sausalito. Retail and related services (bars, restaurants, hotels, and tourism activities) annually generate over $82 million in business revenue, while employing over 1,100 workers. As of 2015, more than one fourth of all businesses in Sausalito were operated out of homes (mainly personal services and consultancies).

Sausalito companies employ approximately 5,000 people who live outside Sausalito city limits; over 93 percent of the people that work in Sausalito are in bound commuters. Census 2015 data state that Sausalito’s median age is 51.1 years, while Marin County has a median age of 44.5. Of the 4,112 occupied housing units in Sausalito in 2015, 49.2 percent are rented; Marin County has 36.9 percent of its housing stock currently rented.

For Sausalito, its location on the waterfront has been a magnet for artists, residents, marine and other businesses, and tourists alike. There are diverse businesses located in the Sausalito, including light industrial, restaurants, professional services, grocery and other retail, and personal services. Proximity to US 101 also makes this area attractive for businesses that would naturally feed off of a worker base that primarily commutes. The marina areas and industries in Sausalito encompass industrial, marine support, and recreational marine businesses. The marina district provides the best setting for Sausalito to grow and enhance its business opportunities. The waterfront areas of Sausalito are homes to industrial, commercial and recreational marine businesses. The waterfront areas also attract visitors and are enjoyed by local residents.


Demographic Snapshot

Sources: Marcus & Millichap Research Services, Experian, Inc., Alteryx

2016 ESTIMATE 1 MILE 3 MILES 5 MILESTotal Population 5,670 23,201 104,659

Total Households 3,292 11,608 51,187

Median Household Income $117,391 $111,656 $119,074

Average Household Income $177,492 $176,501 $180,816

Median Age 52.4 50.4 42.0

Vacancy 6.67% 6.28% 4.76%

The chart below features demographic data at 1, 3, and 5 miles from 120 Bulkley Avenue.

2016 ESTIMATE SAUSALITO MARIN COUNTYTotal Population 7,432 262,475

Total Households 4,348 107,776

Median Household Income $113,869 $94,819

Average Household Income $169,153 $146,669

Median Age 52.6 45.6

Vacancy 6.34% 4.21%

Median Home Value (2010) $757,446 $793,978

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120 Bulkley Avenue - LoopNet · 2017-08-07 · Built in 1959, 120 Bulkley Avenue is situated on a 0.66-acre lot and consists of 20,235 net rentable square feet. The property is located