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COLLIERS INTERNATIONAL | MULTIFAMILY TEAM
263 LOS GATOS BLVD, LOS GATOS 95032
ERIC KATZSenior Vice President(408) [email protected] Lic. 01900078
DANIEL KATZSenior Client Services Specialist(808) [email protected] Lic. 02081544
DAVID KATZSenior Associate(408) [email protected] Lic. 01971921
263 LOS GATOS BLVDLOS GATOS, CA
PROPERTY DETAILSLOCATION OVERVIEWFINANCIALSSALES COMPSSALES COMPS ANALYSIS
I.II.III.IV.V.
TABLE OF CONTENTS
INVESTMENT OVERVIEW FOR 263 LOS GATOS BLVD
EXECUTIVE SUMMARYThe Multifamily Team of Colliers International is pleased to present the opportunity to acquire 263 Los Gatos Blvd, a 4-unit Multifamily apartment building in the highly desirable town of Los Gatos.
Constructed in 1932 and rebuilt in the 1990s, the property consists of (4) spacious two-bedroom / two-bath units and features 4,530 of total square feet (lot size of 7,775 square feet). The units have a wide variety of amenities, including washer/dryer in unit, central A/C and heating, covered parking, and additional storage.
The property is walking distance to top rated Los Gatos schools and to North Santa Cruz Avenue in Downtown Los Gatos. It also features easy access to Highways 17 and 85.
ADDRESS 263 Los Gatos Blvd
CITY Los Gatos, 95032
YEAR BUILT 1932/Rebuilt in 1990's
UNITS 4
BUILDING SF 4,530
LOT SF 7,755
OCCUPANCY 75%
APN # 529-24-020
KEY DETAILSPRICE $2.95M
CURRENT CAP RATE 3.5%
PRO FORMA CAP 4.0%
CURRENT GRM 19.4
PRO FORMA GRM 17.6
PRICE/UNIT $738K
PRICE/BUILDING SF $651
KEY METRICSNET OPERATING INCOME $103K
LOAN AMOUNT $1.48M
LOAN-TO-VALUE (LTV%) 50%
DEBT COVERAGE RATIO 1.2
ANNUAL DEBT SERVICE1 $85K
NET CASH FLOW AFTER DEBT $18K
TOTAL RETURN $44K
TOTAL RETURN (%) 3.0%1Debt Service calculation assumes 4.0% Interest Rate and 5 year fixed amortization schedule
KEY FINANCIALS
DETAILSPROPERTYI.
A. PROPERTY DETAILS
B. PROPERTY AERIAL
C. POINTS OF INTEREST
D. PROPERTY PHOTOS
ROOFComposition Shingle; Pitched
CONSTRUCTIONWood Frame
HEATINGForced-Air;Gas
COOLINGWindows;Air Conditioning
PARKINGCovered Parking for Each Unit; 1 Two Car Garage
LAUNDRYWasher/Dryer in Unit
STORAGEAdditional Tenant Storage
APPLIANCESRefrigerator; Stove; Dishwasher
FLOORINGCarpet; Tile
WINDOWSDual-Pane Windows
HOT WATERIndividual Water Heaters
PATIOS/BACKYARDS4 Patios
PROPERTY DESCRIPTION
1
AERIAL VIEW
263 Los Gatos Blvd
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.
20. 21. 22. 23. 24. 25. 26. 27.
RestaurantsBlue Line PizzaSteamer’s GrillhouseThe Lexington HouseGardino’s Ristorante ItalianoWe Olive & Wine BarThe PalmsLoma Brewing CompanyForbes Mill SteakhouseDolce Spazio GelatoOak & RyePedro’sChin-Chin Win Bar & RestaurantNothing Bundt CakesEnoteca La StoriaStarbucksSweet Pea’s Café & CateringCampo di BocceThe BywaterLos Gatos Meats & Smoke House
Subway RestaurantsTaco BellTogo’s SandwichesPeet’s CoffeeStarbucksChipotle Mexican GrillFirenza PizzaPhilz CoffeeViva PrimaveraHappy HoundJack In the BoxClassic Burgers of Los GatosLou’s RestaurantLos Gatos Café UptownBlvd CoffeeErik’s DeliCafeMcDonald’sBaja Fresh Mexican GrillSee’s Candies
RetailApple Los GatosGAPU.S. BankWells Fargo BankBank of AmericaChase BankWalgreensPetcoSafewayThe UPS StoreWells Fargo Bank7-ElevenWells Fargo BankCVSBank of AmericaPier 1Whole Foods MarketRite AidCitibank
Nob Hill FoodsChase BankFedEx Office Print & Ship CenterHertzO’Reilly Auto PartsThe UPS StoreTrader Joe’sAAA Los Gatos
CommunityOld Town CenterLos Gatos Community FoundationLos Gatos DMVLos Gatos Police Department
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.
20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38.
1. 2. 3. 4.
1
1 2 3
4
5
6
7 8
9 10
11 20
16 18
1412
21
22 23
24
25
26
27
28
29 30 31 32
33
3435
36
37 38
17 1915
13
2
3
4
5
6
7
89
10 11 12
13
1415
16
17 18
19
20
21
2223 24
2526
27
1
2 3
4
AERIAL VIEW POINTS OF INTEREST
263 Los Gatos Blvd
PROPERTY PHOTOS
PROPERTY PHOTOS PROPERTY PHOTOS
OVERVIEWLOCATIONII.
A. REGIONAL AND LOCAL OVERVIEW
B. CITY OVERVIEW
C. CITY DEMOGRAPHICS
REGIONAL & LOCAL OVERVIEW
Home to 29 Fortune 500 companies, and 32 companies which have been included on Inc. 500’s list of fastest growing private companies.
Over 7.34 million residents and the highest percentage of graduate and professional degrees in the nation.
Superb quality of life with a Mediterranean climate, world-class cultural resources, and the stunning natural beauty of the Pacific Ocean and the Sierra Nevada Mountains.
Highest concentration of venture capital firms in the world which have invested an average of $10 billion annually in 1,100 local area firms.
Proximity to outstanding education and research institutions at Stanford University, UC Berkeley, USF, UC Davis, Santa Clara University, and San Jose State University.
LOS GATOSO V E R V I EW
Los Gatos is an incorporated town in Santa Clara County, California,
with a population of 41,544 as of 2017. According to Bloomberg
Businessweek, Los Gatos is ranked the 33rd wealthiest city in the United
States.
It is located in the San Francisco Bay Area at the southwest corner of
San Jose in the foothills of the Santa Cruz Mountains. It is also located in
the heart of Silicon Valley, and is home to several high tech companies,
most notably Netflix.
LOS GATOSD EMO G R A P H I C S
MEDIAN PROPERTY VALUE
$1.5M10.3% GROWTH
NUMBER OF EMPLOYEES
14KO.6% GROWTH
POPULATION ESTIMATE
42K0.7% GROWTH
MEDIAN HOUSEHOLD INCOME
$132K4.2% GROWTH
FINANCIALSIII.A. RENT ROLL
B. UNIT MIX
C. FINANCIAL OVERVIEW
RENT ROLLUNIT
#UNIT TYPE SQUARE FEET CURRENT
RENTCURRENT RENT/SF
MARKET RENT
MARKET RENT/SF
1 2BD/2BA 1132.5 $3,400 $3.00 $3,495 $3.09
2 2BD/2BA 1132.5 $3,495 $3.09 $3,495 $3.09
3 2BD/2BA 1132.5 $2,887 $2.55 $3,495 $3.09
4 2BD/2BA 1132.5 $2,887 $2.55 $3,495 $3.09
4 UNITS ALL 4530 $12,669 $2.80 $13,980 $3.09
UNIT TYPE % OF UNITS # OF UNITS AVG SQFT AVG CURRENT RENT
AVG MARKET RENT
2BD/2BA 100% 4 1132.5 $3,167 $3,495
Grand Total 100% 4 1132.5 $3,167 $3,495
UNIT MIX
UNIT MIX FINANCIAL OVERVIEW
*Quote obtained from Willow Glen Insurance Company1Debt Service calculation assumes Loan amount of $1.48M at 4.0% Interest Rate and 5 year fixed Amortization schedule.2Implied Debt Coverage Ratio of 1.2 and 50% Loan to Value.
FINANCIAL STATEMENT CURRENT PER UNIT PER MONTH PRO FORMA PER UNIT PER MONTH NOTES
REVENUES
Gross Potential Rent $152,028 $38,007 $12,669 $167,760 $41,940 $13,980
Gross Potential Income $152,028 $38,007 $12,669 $167,760 $41,940 $13,980
Vacancy $4,561 $1,140 $380 $5,033 $1,258 $419 Assumed 3% Vacancy
Effective Gross Income $147,467 $36,867 $12,289 $162,727 $40,682 $13,561
EXPENSES
Real Estate Taxes $34,258 $8,565 $2,855 $34,258 $8,565 $2,855 Actual - Based on SCC Tax Board Data
Special Taxes and Assessments $2,075 $519 $173 $2,075 $519 $173 Actual - Based on SCC Tax Board Data
Insurance $2,016 $504 $168 $2,016 $504 $168 Actual - Based on insurance quote*
Utilities $1,001 $250 $83 $1,001 $250 $83 Actual - Based on 2018 P&L
Landscaping $2,420 $605 $202 $2,420 $605 $202 Actual - Based on 2018 P&L
Repairs & Maintenance $3,000 $750 $250 $3,000 $750 $250 Estimated - $750/unit/year
Total Expenses $44,770 $11,193 $3,731 $44,770 $11,193 $3,731
Expenses / Sqft $10 $10
Expense Ratio (%EGI) 30% 28%
PROFITS AND CASH FLOW
Net Operating Income (NOI) $102,697 $25,674 $8,558 $117,957 $29,489 $9,830
Debt Service1 $84,503 $84,503
Net Cash Flow after Debt Service2 $18,194 $1,516 $33,454 $2,788
Net Cash Flow after Debt Service (%) 1.2% 2.3%
Principal Reduction $25,975 $25,975
Total Return $44,170 $3,681 $59,430 $4,952
Total Return (%) 3.0% 4.0%
COMPSSALESIV.
A. MAP
B. KEY DETAILS
C. KEY METRICS
MAP OF SALES COMPS
# ADDRESS CITY
1 306 Andrews St Los Gatos
2 470 San Benito Ave Los Gatos
3 886 Castlewood Dr Los Gatos
263 Los Gatos Blvd23
4
KEY DETAILS FOR SALES COMPSPHOTO ADDRESS CITY PRICE UNITS UNIT MIX BUILDING SF LAND SF YEAR BUILT CLOSE OF ESCROW
306 Andrews St Los Gatos, 95030 $2,963,025 4
1 Studio; 1 1BD/1BA; 1 2BD/1BA;
1 4BD/3.5BA
4,760 9,000 1963 10/31/2018
470 San Benito Ave
Los Gatos, 95030 $3,575,000 4 3 1BD/1BA;
1 3BD/2BA 5,580 9,318 1918 6/18/2018
886Castlewood Dr
Los Gatos, 95032 $2,000,000 4
1 1BD/1BA; 2 2BD/1BA; 1 3BD/2BA
3,681 8,760 1963 4/23/2018
1
2
3
KEY DETAILS FOR SALES COMPSPHOTO ADDRESS CITY CAP RATE GRM PRICE/UNIT PRICE/SF PRICE/LSF NOTES
306 Andrews St Los Gatos, 95030 2.9% 22.9 $740,756 $622 $329 N/A
470 San Benito Ave
Los Gatos, 95030 1.8% 33.7 $893,750 $641 $384 N/A
886Castlewood Dr
Los Gatos, 95032 2.5% 23.1 $500,000 $543 $228 N/A
KEY METRICS FOR SALES COMPS1
2
3
ANALYSISSALES COMPSV.
A. CAP RATE
B. PRICE PER UNIT
C. GROSS RENT MULTIPLE
D. PRICE PER SQUARE FOOT
E. PRICE PER LAND SQUARE FOOT
3.5%
2.9%
1.8%
2.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
263 Los GatosBlvd
306 Andrews St 470 San BenitoAve
886Castlewood Dr
CAP RATEAVERAGE: 2.4%
SALES COMPS ANALYSIS
19.4
22.9
33.7
23.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
263 Los GatosBlvd
306 Andrews St 470 San BenitoAve
886Castlewood Dr
GRMAVERAGE: 26.6
SALES COMPS ANALYSIS
SALES COMPS ANALYSIS
738K 741K
894K
500K
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
263 Los GatosBlvd
306 AndrewsSt
470 SanBenito Ave
886Castlewood Dr
PRICE PER UNITAVERAGE: $711K
SALES COMPS ANALYSIS
$651$622 $641
$543
$0
$100
$200
$300
$400
$500
$600
$700
263 Los GatosBlvd
306 Andrews St 470 San BenitoAve
886Castlewood Dr
PRICE / SQ FTAVERAGE: $602
SALES COMPS ANALYSIS
SALES COMPS ANALYSIS
$380
$329
$384
$228
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
263 Los GatosBlvd
306 AndrewsSt
470 San BenitoAve
886Castlewood Dr
PRICE / LAND SQ FTAVERAGE: $314
SALES COMPS ANALYSIS
This Confidential Offering Memorandum (the “Memorandum”) has been prepared and presented to the recipient (the “Recipient”) by Colliers International (“Colliers”) as part of Colliers’ efforts to market the real property for sale. Colliers is the exclusive agent and broker for the owner(s) of the Property (the “Owner”). Colliers is providing this Memorandum and the material contained in it to the Recipient solely to assist the Recipient in determining whether the Recipient is interested in potentially purchasing all or part of the Property. Colliers also is providing this Memorandum and the material in it to the Recipient with the understanding that the Recipient will independently investigate those matters that it deems necessary and appropriate to evaluate the Property and that the Recipient will rely only on its own investigation, and not on Colliers, the Owner or this Memorandum, in determining whether to purchase the Property. The Recipient’s use of this Memorandum and the material in it is strictly governed by the terms and conditions of the Registration and Confidentiality Agreement that the Recipient previously executed and delivered to Colliers.
PLEASE NOTE THE FOLLOWING: Colliers, the Owner and their respective agents, employees, representatives, property managers, officers, directors, shareholders, members, managers, partners, joint venturers, corporate parents or controlling entities, subsidiaries, affiliates, assigns and predecessors and successors-in-interest make no representations or warranties about the accuracy, correctness or completeness of the information contained in this Memorandum. The Recipient is urged not to rely on the information contained in this Memorandum and to make an independent investigation of all matters relating to the Property.
This Memorandum includes statements and estimates provided by or to Colliers and/or the Owner regarding the Property. Those statements and estimates may or may not be accurate, correct or complete. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements and estimates.
Further, nothing contained in this Memorandum should be construed as representation or warranty about any aspect of the Property, including, without limitation, the Property’s (1) past, current or future performance, income, uses or occupancy, (2) past, current or prospective tenants, (3) physical condition, (4) compliance or non-compliance with any permit, license, law, regulation, rule, guideline or ordinance, or (5) appropriateness for any particular purpose, investment, use or occupancy. Again, the Recipient is urged not to rely on this Memorandum and the statements and estimates in it and to make an independent investigation regarding the Property and the statements and estimates contained herein.
This Memorandum may include statements regarding, references to, or summaries of, the nature, scope or content of contracts and/or other documents relating to the Property. Those statements, references or summaries may or may not be accurate, correct or complete. Additionally, Colliers may not have referenced or included summaries of each and every contract and/or other document that the Recipient might determine is relevant to its evaluation of the Property. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements, representations or summaries. On request and as available, and subject to the Owner’s consent, Colliers will provide the Recipient with copies of all referenced contracts and other documents.
Colliers assumes no obligation to supplement or modify the information contained in this Memorandum to reflect events or conditions occurring on or after the date of its preparation of this Memorandum. More detailed information regarding the anticipated terms, conditions and timing of any offering by the Owner relating to the Property will be provided in due course by separate communication. Colliers and/or the Owner reserve the right to engage at any time in discussions or negotiations with one or more recipients of this Memorandum and/or other prospective purchasers of the Property without notice or other obligation to the Recipient.
CONFIDENTIALITY AGREEMENT
DANIEL KATZSenior Client Services Specialist(808) [email protected] Lic. 02081544
DAVID KATZSenior Associate(408) [email protected] Lic. 01971921
ERIC KATZSenior Vice President(408) [email protected] Lic. 01900078
COLLIERS INTERNATIONAL | MULTIFAMILY TEAM