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1408 & 1428 REEVE ST1408 Reeve St • Santa Clara, CA 95050
Offering Memorandum
1
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 andshould 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, unverifiedinformation 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 duediligence 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, thefuture 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 orasbestos, 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 anytenant'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 mattersand 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 ofthe information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 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 nameis 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, orcommercial 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.
1408 REEVE STSanta Clara, CAACT ID Z0010204
2
TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02Rent Roll Summary
Rent Roll Detail
Operating Statement
Notes
Pricing Detail
Acquisition Financing
MARKET COMPARABLES 03Sales Comparables
Rent Comparables
MARKET OVERVIEW 04Market Analysis
Demographic Analysis
1408 & 1428 REEVE ST
3
1408 & 1428 REEVE ST
4
INVESTMENT
OVERVIEW
1408 & 1428 REEVE ST
#
EXECUTIVE SUMMARYOFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Cisco Systems 14,256
McAfee Security LLC 6,210
Lockheed Martin Corporation 5,683
Cypress Semiconductor Intl 5,000
Fortinet Inc 4,668
Rosendin Electric Inc 3,668
Agilent Technologies Inc 3,275
Broadcom 3,045
Corrections Dept of 2,679
Supermicro 2,660
Palo Alto Networks Inc 2,637
Santa Clara Valley Trnsp Auth 2,553
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2017 Estimate Pop 2,074 163,692 587,211
2010 Census Pop 1,755 142,092 524,141
2017 Estimate HH 1,088 60,391 201,809
2010 Census HH 895 51,754 179,727
Median HH Income $92,175 $103,426 $91,124
Per Capita Income $61,244 $50,768 $43,332
Average HH Income $116,659 $135,770 $124,680
UNIT MIXNUMBEROF UNITS UNIT TYPE APPROX.
SQUARE FEET
16 1BD/1BA
4 2BD/1BA
20 Total 11,284
VITAL DATAPrice $7,600,000 CURRENT YEAR 1
Loan Amount $4,560,000 CAP Rate 4.42% 5.30%
Loan Type Proposed New GRM 15.67 14.34
Interest Rate / Amortization 4.25% / 30 Years Net Operating Income $336,010 $402,559
Price/Unit $380,000 Net Cash Flow After Debt Service 2.20% / $66,820 4.39% / $133,369
Price/SF $673.52 Total Return 4.73% / $143,696 7.03% / $213,577
Number of Units 20
Rentable Square Feet 11,284
Number of Buildings 2
Number of Stories 2
Year Built 1958
Lot Size 0.52 acre(s)
5
1408 & 1428 REEVE ST
OFFERING SUMMARY
Copper Plumbing
New dual pane windows and New Roofs
Located 1.2 Miles from Santa Clara University.
Separate Parcels
Mature landscaping with serene pool and picnic area
Ground Zero Silicon Valley Location- close proximity to major tech employers.
Renovated unit interiors
INVESTMENT HIGHLIGHTS
Marcus & Millichap has been selected to exclusively market for sale The Claddagh Apartments, a 20-unit apartment community located at 1408-1428 Reeve Street in SantaClara, California. The subject property is two separate L-shaped buildings with a rentable area of approximately 11,284 total square feet. Originally constructed in 1958,Claddagh Apartments offers (16) one-bedroom/one-bath units and (4) two-bedroom/one-bath units. The residents enjoy a pool, on-site laundry, and covered parking.
The Claddagh Apartments has a very good Walk score and has several public transportation options nearby. Errands can be easily accomplished at nearby retail locationsincluding Target, Stop N Save, Skechers Factory Outlet, Carters, LAmour Shoppe Santa Clara, Trade-A-Book, Kelly-Moore Paints, Mission City Federal Credit Union, Bankof America, Walgreens Pharmacy, CVS Pharmacy, Costco Wholesale, Kitchen & Bath Showplace, Standard Plumbing Supply and The Home Depot.
There are several coffee shops and restaurants nearby including Peets Coffee, Starbucks, McDonalds, Imagine It Bakery and Pyscho Donuts. Restaurants close by includeKFC, Taqueria La Veracruzana, Taco Bell, Sus Mongolian BBQ, Popeyes Louisiana Kitchen, Dennys, Kabab & Currys, Jack-in-the-Box and Euro Grill. Grocery marketsclose by include A1 Halal, J Grocery & Flowers, Mand Liquors & FoodMart, Smart & Final, Santa Clara Mini Market. Schools near the subject property include Scott LaneElementary, Wilson Alternative School, St. Clare, Buchser Middle School, One World Montessori School, C. W. Haman Elementary School, Juan Cabrillo Middle School,Washington Elementary and Live Oak Academy. Claddagh Apartments reside in a lovely area with Civic Center Park only a block away. S
The investment appeal of this asset is driven by Santa Clara's strong employment fundamentals and low vacancy levels. Many of the largest technology companies haveoperations in Santa Clara or the neighboring communities including Intel, Google, Apple, LinkedIn, Amazon, Microsoft, NVIDIA and Yahoo. The robust high-tech job growth,shortage of housing units, rent growth, and proximity to large Silicon Valley employers and Santa Clara University make the Caddagh Apartments a great opportunity forboth the cash flow and appreciation minded investor.
INVESTMENT OVERVIEW
6
1408 & 1428 REEVE ST
#
OFFERING SUMMARYPROPERTY OVERVIEW
Marcus & Millichap has been selected to exclusively market for sale the Claddagh Apartments, a 20-unit apartmentcommunity located at 1408-1428 Reeve Street in the thriving city of Santa Clara, California.
Situated on two separate parcels totaling just over a half-acre of land, the subject property was originallyconstructed in 1958 and has a rentable area of approximately 11,284 total square feet, offering (16) one-bedroom/one-bath units and (4) two-bedroom/one-bath units. The property provides tenants with a pool, on-sitelaundry, covered parking, and storage space.
7
Sparkling and inviting pool area
Common Area Amenities
Shaded picnic area
Two onsite laundry facilities
Covered parking
Remodeled interiors
Unit Amenities
Large spacious floor plans
Upgraded Windows
Copper Plumbing
7
1408 & 1428 REEVE ST
PROPERTY SUMMARYOFFERING SUMMARY
PROPOSED FINANCINGFirst Trust DeedLoan Amount $4,560,000Loan Type Proposed NewInterest Rate 4.25%Amortization 30 YearsLoan Term 5 YearsLoan to Value 60%Debt Coverage Ratio 1.25
THE OFFERINGProperty 1408 Reeve StPrice $7,600,000Property Address 1408 Reeve St, Santa Clara, CAAssessors Parcel Number 224-25-018Zoning R336
SITE DESCRIPTIONNumber of Units 20Number of Buildings 2Number of Stories 2Year Built/Renovated 1958Rentable Square Feet 11,284Lot Size 0.52 acre(s)Type of Ownership Fee SimpleParking 20 coveredParking Ratio 1:1Landscaping MatureTopography Flat
UTILITIESWater Landlord pays
8
REGIONAL MAP
1408 & 1428 REEVE ST
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1408 & 1428 Reeve St
LOCAL MAP
1408 & 1428 REEVE ST
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1408 & 1428 Reeve St
AERIAL PHOTO
1408 & 1428 REEVE ST
11
1408 & 1428 Reeve St
1408 & 1428 REEVE ST
12
FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
1408 & 1428 REEVE ST
RENT ROLL SUMMARY
13
FINANCIAL ANALYSIS
1408 & 1428 REEVE ST
14
RENT ROLL DETAIL
FINANCIAL ANALYSIS
1408 & 1428 REEVE ST
OPERATING STATEMENT
15
FINANCIAL ANALYSIS
1408 & 1428 REEVE ST
PRICING DETAIL
16
MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.
We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.
Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.
National platform operating
within the firm’s brokerage offices
$5.63 billion total national
volume in 2017
Access to more capital sources than any other
firm in the industry
Optimum financing solutions to enhance value
Our ability to enhance buyer pool by expanding finance options
Our ability to enhance seller control
• Through buyer qualification support
• Our ability to manage buyers finance expectations
• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings
• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file
WHY MMCC?
Closed 1,707 debt and equity
financings in 2017
ACQUISITION FINANCING
1408 & 1428 REEVE ST
17
1408 & 1428 REEVE ST
18
MARKET
COMPARABLES
1408 & 1428 REEVE ST
SALES COMPARABLES MAP
19
1408 & 1428 REEVE ST(SUBJECT)
1896 Market Street
2785 Homestead Road
Velocity
1565 Main Street
Peachbrook Apartments
470 California Street
3351 Monroe Street
3741 Peacock Court
SALES COMPARABLES
1
2
3
4
5
7
8
6
1
2
3
4
56
7
8
20
PROPERTY NAME1408 & 1428 REEVE ST
SALES COMPARABLES
Avg. 4.09%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
1408Reeve St
1896 MarketStreet
2785Homestead
Road
Velocity 1565 MainStreet
PeachbrookApartments
470California
Street
3351 MonroeStreet
3741Peacock
Court
Average Cap Rate
Avg. 16.55
0.00
2.60
5.20
7.80
10.40
13.00
15.60
18.20
20.80
23.40
26.00
1408Reeve St
1896 MarketStreet
2785Homestead
Road
Velocity 1565 MainStreet
PeachbrookApartments
470California
Street
3351 MonroeStreet
3741Peacock
Court
Average GRM
SALES COMPARABLES SALES COMPS AVG
21
PROPERTY NAME1408 & 1428 REEVE ST
SALES COMPARABLES
Avg. $570.54
$0.00
$70.00
$140.00
$210.00
$280.00
$350.00
$420.00
$490.00
$560.00
$630.00
$700.00
1408Reeve St
1896 MarketStreet
2785Homestead
Road
Velocity 1565 MainStreet
PeachbrookApartments
470California
Street
3351 MonroeStreet
3741Peacock
Court
Average Price Per Square Foot
Avg. $396,203
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
1408Reeve St
1896 MarketStreet
2785Homestead
Road
Velocity 1565 MainStreet
PeachbrookApartments
470California
Street
3351 MonroeStreet
3741Peacock
Court
Average Price Per Unit
SALES COMPARABLES SALES COMPS AVG
PROPERTY NAME
MARKETING TEAM
1408 & 1428 REEVE ST
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
22
SALES COMPARABLES
Units Unit TypeOffering Price: $7,600,000 16 1BD 1BA
Price/Unit: $380,000 4 2BD 1BA
Price/SF: $673.52
CAP Rate: 4.42%
GRM: 15.67
Total No. of Units: 20
Year Built: 1958
Underwriting CriteriaIncome $481,222 Expenses $145,212
NOI $336,010 Vacancy ($9,698)
1408 REEVE ST1408 Reeve St, Santa Clara, CA, 95050
1
Units Unit TypeClose Of Escrow: 4/28/2018 4 Studio 1 Bath Flat
Days On Market: 21 3 1 Bdr 1 Bath Flat
Sales Price: $3,600,000 2 2 Bdr 1 Bath Flat
Price/Unit: $400,000
Price/SF: $583.00
CAP Rate: 2.54%
GRM: 24.31
Total No. of Units: 9
Year Built: 1957
Underwriting CriteriaIncome $138,780 Expenses $53,353
NOI $86,400
1896 MARKET STREET1896 Market Street, Santa Clara, CA, 95050
Units Unit TypeClose Of Escrow: 4/5/2018 14 1 Bdr 1 Bath Flat
Sales Price: $7,200,000 5 2 Bdr 1 Bath Flat
Price/Unit: $378,947
Price/SF: $616.02
CAP Rate: 4.25%
GRM: 15.43
Total No. of Units: 19
Year Built: 1961
Underwriting CriteriaIncome $484,860 Expenses $151,889
NOI $325,439 Vacancy $14,002
2
2785 HOMESTEAD ROAD 2785 Homestead, Santa Clara, CA, 95051
PROPERTY NAME
MARKETING TEAM
1408 &1428 REEVE ST
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
23
SALES COMPARABLES
Units Unit TypeClose Of Escrow: 12/21/2017 13 Studio Bath Flat
Sales Price: $25,550,000 19 1 Bdr 1 Bath Flat
Price/Unit: $456,250 18 2 Bdr 1 Bath Flat
Price/SF: $682.08 6 3 Bdr 1 Bath Flat
CAP Rate: 4.65%
GRM: 13.90
Total No. of Units: 56
Year Built: 1961
3
VELOCITY3488 Agate Dr, Santa Clara, CA, 95051
4
Units Unit TypeClose Of Escrow: 12/12/2017 8 1 Bdr 1 Bath Flat
Sales Price: $3,775,000 2 2 Bdr 1 Bath Flat
Price/Unit: $377,500
Price/SF: $640.81
CAP Rate: 4.68%
GRM: 14.72
Total No. of Units: 10
Year Built: 1957
1565 MAIN STREET1565 Main St, Santa Clara, CA, 95050
Close Of Escrow: 11/14/2017
Sales Price: $14,400,000
Price/Unit: $389,189
Price/SF: $545.39
CAP Rate: 4.07%
GRM: 16.09
Total No. of Units: 37
Year Built: 1961
Underwriting CriteriaExpenses $333,651
5
PEACHBROOK APARTMENTS1962 Bellomy St, Santa Clara, CA, 95050
PROPERTY NAME
MARKETING TEAM
1408 & 1428 REEVE ST
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
Units Unit TypeClose Of Escrow: 11/14/2017 6 2 Bdr 1 Bath Flat
Sales Price: $3,025,000 2 1 Bdr 1 Bath Flat
Price/Unit: $378,125
Price/SF: $473.69
CAP Rate: 4.41%
GRM: 16.03
Total No. of Units: 8
Year Built: 1954
6
470 CALIFORNIA STREET470 California St, Santa Clara, CA, 95050
7
Units Unit TypeClose Of Escrow: 8/18/2017 4 1 Bdr 1 Bath Flat
Sales Price: $3,088,000 4 2 Bdr 1 Bath Flat
Price/Unit: $386,000
Price/SF: $521.97
CAP Rate: 3.84%
Total No. of Units: 8
Year Built: 1960
3351 MONROE STREET 3351 Monroe St, Santa Clara, CA, 95051
Units Unit TypeClose Of Escrow: 6/12/2017 3 1 Bdr 1 Bath Flat
Sales Price: $3,228,888 4 2 Bdr 1 Bath Flat
Price/Unit: $403,611 1 3 Bdr 2 Bath Flat
Price/SF: $501.38
CAP Rate: 4.27%
GRM: 15.34
Total No. of Units: 8
Year Built: 1973
8
3741 PEACOCK COURT 3741 Peacock Ct, Santa Clara, CA, 95051
8
1408 & 1428 REEVE ST
RENT COMPARABLES MAP
1408 & 1428 REEVE ST(SUBJECT)
2686 Newhall St
2174 Royal Drive
2144 Royal Dr
Royal Palms
2305 Monroe St
Old Orchard
2062 Main Street
Tamarack Apartments
Greenpoint Apartments
4
7
8
9
11
20
12
14
15
16
17
13
18
10
4
7
8
9
1
2
3
5
6
25
PROPERTY NAME1408 & 1428 REEVE ST
RENT COMPARABLES
26
AVERAGE OCCUPANCY
Avg. 97.11%
0
10
20
30
40
50
59
69
79
89
99
1408Reeve St
2686Newhall St
2174 RoyalDrive
2144Royal Dr
Royal Palms 2305Monroe St
Old Orchard 2062 MainStreet
TamarackApartments
GreenpointApartments
PROPERTY NAME1408 &1428 REEVE ST
RENT COMPARABLES
27
AVERAGE RENT - MULTIFAMILY
Avg. $2,348
$0
$300
$600
$900
$1,200
$1,500
$1,800
$2,100
$2,400
$2,700
$3,000
1408Reeve St
2686Newhall St
2174 RoyalDrive
2144Royal Dr
Royal Palms
2305Monroe St
Old Orchard
2062 MainStreet
TamarackApartments
GreenpointApartments
2 Bedroom
Avg. $2,085
$0
$300
$600
$900
$1,200
$1,500
$1,800
$2,100
$2,400
$2,700
$3,000
1408Reeve St
2686Newhall St
2174 RoyalDrive
2144Royal Dr
Royal Palms
2305Monroe St
Old Orchard
2062 MainStreet
TamarackApartments
GreenpointApartments
1 Bedroom
PROPERTY NAME
MARKETING TEAM
1408 & 1428 REEVE ST
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
28
YEAR BUILT: 1958
rentpropertyname1rentpropertyaddress1
Unit Type Units SF Rent Rent/SF
1BD 1BA 16 $1,971 $0.00
2BD 1BA 4 $2,218 $0.00
Total/Avg. 20 $2,020
1408 REEVE ST1408 Reeve St, Santa Clara, CA, 95050
OCCUPANCY: 97% | YEAR BUILT: 1960
1
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath Flat 700 $2,195 $3.14
Total/Avg. $2,195
2686 NEWHALL ST2686 Newhall St, Santa Clara, CA, 95050
2
OCCUPANCY: 97% | YEAR BUILT: 1958
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath Flat 589 $1,895 $3.22
2 Bdr 1 Bath Flat 750 $2,195 $2.93
Total/Avg. $2,045
2174 ROYAL DRIVE2174 Royal Dr, Santa Clara, CA, 95050
PROPERTY NAME
MARKETING TEAM
1408 & 1428 REEVE ST
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
29
OCCUPANCY: 98% | YEAR BUILT: 1959
3
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath Flat 590 $1,750-$1,895 $3.09
Total/Avg. $1,823
2144 ROYAL DR2144 Royal Dr, Santa Clara, CA, 95050
OCCUPANCY: 97% | YEAR BUILT: 1959
4
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath Flat 700 $1,945 $2.78
2 Bdr 1 Bath Flat 950 $2,195-$2,395 $2.42
Total/Avg. $2,120
ROYAL PALMS 2104 Royal Dr, Santa Clara, CA, 95050
5
OCCUPANCY: 97% | YEAR BUILT: 1962
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath Flat 700 $1,950 $2.79
Total/Avg. $1,950
2305 MONROE ST2305 Monroe St, Santa Clara, CA, 95050
PROPERTY NAME
MARKETING TEAM
1408 & 1428 REEVE ST
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
30
OCCUPANCY: 96% | YEAR BUILT: 1976
6
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath Flat 632 $2,102-$2,235 $3.43
2 Bdr 1 Bath Flat 853 $2,553-$2,578 $3.01
Total/Avg. $2,367
OLD ORCHARD2200 Monroe St, Santa Clara, CA, 95050
OCCUPANCY: 97% | YEAR BUILT: 1960
7
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath Flat 4 750 $2,175-$2,225 $2.93
2 Bdr 1 Bath Flat 2 875 $2,450-$2,500 $2.83
Total/Avg. 6 792 $2,292 $2.89
2062 MAIN STREET2062 Main St, Santa Clara, CA, 95050
8
OCCUPANCY: 97% | YEAR BUILT: 1969
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath Flat 676 $2,500 $3.70
Total/Avg. $2,500
TAMARACK APARTMENTS1255 Lincoln St, Santa Clara, CA, 95050
PROPERTY NAME
MARKETING TEAM
1408 & 1428 REEVE ST
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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OCCUPANCY: 98% | YEAR BUILT: 1959
9
Unit Type Units SF Rent Rent/SF
2 Bdr 1 Bath Flat 730-860 $2,175-$2,243 $2.78
Total/Avg. $2,209
GREENPOINT APARTMENTS1599 Warburton Ave, Santa Clara, CA, 95050
1408 & 1428 REEVE ST
32
MARKET
OVERVIEW
33
Unemployment reaches lowest level since late 1990s; lack of single-family homeconstruction encourages active apartment market. The broad demand for labor,particularly in high-paying technology and biotech, has driven unemployment in theBay Area to the lowest level since the late 1990s. Apartment demand has risen inlockstep with high single-family home prices, prompting a vacancy rate in all threemajor metros near or below 4 percent. While elevated completions remain in place for2018, the overall level of supply additions peaked last year. A tightening market shouldfeed into more dramatic growth in the average effective rent as the year progresses,particularly in submarkets near the core areas and high-end suburban neighborhoods.The subdued pace of construction will also promote exceptional rent growth as tenantsvie for the few remaining rentals still on the market.
Moderate concentration in urban core highlights slowing development pipeline.A desire among local residents for urban accommodations has focused constructionefforts on infill submarkets, with construction highest in Oakland, North San Jose andSoMa. Overall, completions will fall by roughly 3,300 units throughout the Bay Areathis year, sparking strong growth in effective rents as net absorption remains wellabove construction. Deliveries outside the urban core will focus on suburbanneighborhoods near shopping and mass transit.
Tight Labor Markets, Sliding CompletionsBoost Bay Area Rental Prospects
BAY AREA METROS
Sources: CoStar Group, Inc.; Real Capital Analytics
1408 &1428 REEVE ST
Investment Trends
San Francisco• Prices have moved higher as buyers are motivated by slowing construction
and strong rent growth. San Mateo County assets are seeing the mostinterest, buoyed by lower development.
• Cap rates have sunk to the high-3 percent band, with little value-add potentialstill remaining.
San Jose• Properties near corporate campuses or transportation routes remain attractive
to investors, prompting cap rates in the low-4 percent range.• Outlying assets carrying higher relative cap rates are increasingly targeted by
investors seeking higher returns.
Oakland• Relatively higher yields are luring investors from both San Jose and San
Francisco. Cap rates can be up to 50 basis points above the other metros.• I-880 Corridor properties are drawing exceptional demand from a range of
buyers amid accelerating rent growth and interest from residents due to quickaccess to public transportation.
Multifamily 2018 Outlook
VacancyY-O-Y
BasisPointChange
Metro EffectiveRent
Y-O-YChange
San Francisco 3.4% -30 $3,450 4.9%
San Jose 4.5% -10 $2,803 4.6%
Oakland 3.9% -20 $2,320 2.7%
34
• In 2017, San Jose employers created 28,900 new positions, expanding payrolls by 2.7 percent. Hiring was led by the information sector, where 8,200 jobs were created.
• The labor market has reached historically tight levels, posting 2.9 percent by the end of 2017, the lowest level since the fourth quarter of 1999.
EMPLOYMENT
• Construction picked up moderately over the last year, with builders completing 4,076 apartments, surpassing the 3,871 units brought online in the prior year. Activity centered around Santa Clara and Central San Jose, which made up nearly half of all deliveries.
• Development will fall by roughly 25 percent this year, and be concentrated in North San Jose/Milpitas.
CONSTRUCTION
• The metro vacancy rate contracted 10 basis points last year as supply and demand were roughly balanced. Central San Jose and West San Jose/Cambell showed the greatest improvement, with vacancy falling 80 basis points to 4.7 percent and 3.6 percent, respectively.
• Vacancy rose 70 basis points to 5.8 percent to Mountain View/Palo Alto/Los Altos, the highest rental rate area.
VACANCY
• The average effective rent soared 5.8 percent over the past year to $2,680 per month. All submarkets recorded gains of at least 1.8 percent.
• The East San Jose submarket posted average effective rent growth of 19.7 percent to $2,112 per month as operators leveraged the metro’s tightest conditions to lift rents. Rents remain the lowest of any metro submarket.
RENTS
BAY AREA METROS: SAN JOSE
increase in effective rents Y-O-Y5.8%basis point decrease
in vacancy Y-O-Y10units completed Y-O-Y4,076increase in total
employment Y-O-Y2.7%
* Forecast
1408 & 1428 REEVE ST
4Q17 – 12-Month Period
35
Transactions Moderate as Prices Continue Upward March; Focus on Class C Assets
Outlook: Properties in commuter suburbssuch as Morgan Hill and South San Joseshould draw value as investors seek outhigher relative cap rates.
VacancyRate
Y-O-YBasisPoint
ChangeSubmarket Effective
RentY-O-Y%Change
East San Jose 3.1% 50 $2,112 19.7%
West San Jose/Campbell 3.6% -80 $2,478 5.8%
South San Jose 3.8% -50 $2,358 1.8%
North San Jose/Milpitas 4.6% 10 $2,758 2.2%
Central San Jose 4.7% -80 $2,544 2.4%
North Sunnyvale 4.9% 10 $2,688 4.2%
Santa Clara 5.0% -30 $2,724 7.8%
South Sunnyvale/Cupertino 5.0% -20 $2,937 4.0%
Mountain View/Palo Alto/Los Altos 5.8% 70 $3,183 5.5%
Overall Metro 4.6% -10 $2,680 5.8%
Submarket Trends
Lowest Vacancy Rates 4Q17
Sales Trends
BAY AREA METROS: SAN JOSE
• As cap rates remained in the low-4 percent range, transactions activity slowed slightly.Activity skewed extremely toward Class C properties, particularly near the corporatecampuses in San Jose and Santa Clara.
• The average price per unit in the metro reached nearly $350,000, yet varied widelybased on property age and size. Institutional quality assets exceeded $400,000 perdoor on a regular basis.
Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics
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BAY AREA METROS
• Fed raises benchmark interest rate, plots path for additional increases. The FederalReserve increased the federal funds rate by 25 basis points, lifting the overnight lending rateto 1.5 percent. While the Fed noted that the inflation outlook had moderated in recent months,an upgraded economic forecast factoring in recent tax cuts and a rollback in regulationstrengthened growth projections for the next two years. As a result, the Fed has guidedtoward two additional rate hikes this year, while setting the stage for as many as fourincreases in 2019.
• Lending costs rise alongside Fed rate increase. As the Federal Reserve lifts interest rates,lenders will face a rising cost of capital, which may lead to higher lending rates for investors.However, in an effort to compete for loan demand, lenders may also choose to absorb aportion of the cost increases. While higher borrowing costs may prompt buyers to seek highercap rates, the positive economic outlook should provide rent growth that outpaces inflationover the coming year. As a result, sellers remain committed to higher asking prices, which hasbegun to widen an expectation gap as property performance and demand trends remainpositive.
• The capital markets environment continues to be highly competitive. Governmentagencies continue to consume the largest share, just slightly over 50 percent, of theapartment lending market. National and regional banks control approximately a quarter of themarket. Global markets and foreign central banks are keeping pressure down on long-terminterest rates. Pricing resides in the 4 percent realm with maximum leverage of 75 percent.Portfolio lenders will typically require loan-to-value ratios closer to 70 percent with interestrates in the high-3 to mid-4 percent range. The passage of tax reform and rising fiscal stimuluswill keep the U.S. economy growing strongly and rental demand will remain high with thenational apartment vacancy rate at 5 percent at the end of 2017.
Include sales $2.5 million and greaterSources: CoStar Group, Inc.; Real Capital Analytics
Capital Markets
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* 2007-2017 Average annualized appreciations in price per unit Sources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital Analytics
2018 PRICING & VALUATION TRENDS
Yield Range Offers Compelling Options for Investors; Most Metros Demonstrate Strong Appreciation Rates
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** Price per unit for apartment properties $1 million and greaterSources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital Analytics
AVERAGE PRICE PER UNIT RANGE**(Alphabetical order within each segment)
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2018 NATIONAL MULTIFAMILY INDEX
U.S. Multifamily Index
Coastal Markets Top National Multifamily Index;Several Unique Markets Climb Ranks
Trading places. Seattle-Tacoma leads this year’s Index after moving up one notch, driven by robustemployment in the tech sector and soaring home prices that keep rental demand ahead of elevated deliveries.The metro outperforms last year’s leader, Los Angeles (#2), which slid one spot. Midwest metro Minneapolis-St. Paul (#3) rose one notch as its diverse economy generates steady job growth and robust rental demand,maintaining one of the lowest vacancy rates among larger U.S. markets. San Diego (#4) jumped five spots asdeliveries slump while household formation proliferates, resulting in sizable rent growth. Portland (#5) inches upa slot to round out the top five markets. East Coast markets fill the next two positions: Boston (#6) moves downthree slots as rent growth slows while vacancy ticks up, and New York City (#7) rises three places as stoutrenter demand holds vacancy tight.
Index reshuffles with big moves. Sacramento (#8) posted the largest increase in the Index, vaulting 12positions to lead a string of California markets that fill the next five slots. Robust rent growth and low vacancypushed the market up in the ranking. Other double-digit movers were Orlando (#17) and Detroit (#28), whicheach leaped 10 places. Employment gains and in-migration are generating the need for apartments in Orlando,maintaining ample rent advancement. In Detroit, steady employment and a slow construction pipeline keepdemand above supply, allowing rents to flourish. The most significant declines were registered in Austin,Nashville and Baltimore. Austin (#31) tumbled nine spaces as elevated deliveries overwhelm demand slowingrent growth. Nashville (#35) and Baltimore (#45) each moved down six steps as demand has yet to absorbmultiple years of elevated inventory gains. Although Kansas City (#46) retains the bottom slot, there is greaterchange in the lower half of the NMI as more Midwest markets rise.
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Growth Cycle Invigorated by Confidence; Tax Laws Could Transform Housing
U.S. ECONOMY
Tight labor market restrains hiring as confidence surges. The steady economic tailwind benefitingapartment performance is poised to carry through 2018 as a range of positive factors align to support growth.Consumer confidence recently reached its highest point since 2000 while small-business sentiment attained a31-year record level, both reinforcing indications that consumption and hiring will be strong. The total number ofjob openings has hovered in the low-6 million range through much of 2017, illustrating that companies haveconsiderable staffing needs, but with unemployment entrenched near 4 percent, companies will continue to facechallenges in filling available positions. These tight labor conditions should place additional upward pressure onwages, potentially boosting inflationary pressure in the coming year. The strong employment market, risingwages and elevated confidence levels could unlock accelerated household formation, particularly by youngadults. Last year, the number of young adults living with their parents ticked lower for the first time since therecession, signaling that these late bloomers may finally be considering a more independent lifestyle.
Housing preferences may change under new tax laws. The new tax laws could play a significant role inshaping both the economy and housing demand in 2018. Reduced taxes will be a windfall for corporations,potentially sparking invigorated investment into infrastructure. The rise in CEO confidence over the last yearalready boosted companies’ investment by more than 6 percent, accelerating economic growth. However, thetax incentive-based stimulus will likely offer only a modest bump to GDP in 2018 because corporate investmentcomprises just 12 percent of economic output. One factor that could weigh on economic expansion under thenew tax laws is the housing sector, which added just 3 percent to the economy last year, about two-thirds ofnormal levels. The increased standard deduction and restrictions on housing-related deductions will reducesome of the economic incentive to purchase a home, further sapping the strength of the housing sector.Nonetheless, the increased standard deduction could benefit apartment investors, encouraging renters to stayin apartments longer and reducing the loss of tenants to homeownership.
* Forecast** Through 3Q
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2018 National Economic Outlook
U.S. ECONOMY
Labor force shortage weighs on job creation. The economy has added jobs every month for more thanseven years, the longest continuous period of job creation on record. The trend will continue in 2018, but thepace of job additions will moderate, falling below 2 million for the year as the low unemployment raterestricts the pool of prospective employees.
Wage growth poised to accelerate. Average wage growth has been creeping higher in the post-recessionera, with compensation gains in construction, professional services and the hospitality sectors outpacing thebroader trend. The tight labor market will continue to pressure wage growth, potentially sparking inflation inthe process.
Tax laws could invigorate apartment demand. Since 2011 household formations have outpaced totalhousing construction, a key ingredient in the tightening of apartment vacancies. The new tax laws couldcause homebuilders to reduce construction while shifting a portion of the housing demand fromhomeownership to rentals, and a rental housing shortage could ensue. If this behavior change occurs inconjunction with additional young adults moving out of their own, apartment demand could dramaticallyoutpace completions.
* Forecast** Through 3Q
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Demand Outlook Sturdy as Pace Of Construction Begins to Retreat
U.S. APARTMENT OVERVIEW
* Forecast
Investors wary of apartment construction. The wave of apartment completions entering the market in recentyears has permeated the investor psyche, raising concerns of overdevelopment and escalating vacancy rates,but numerous demand drivers have held this risk in check. Steady job creation, positive demographics, above-trend household formation and elevated single-family home prices have converged to counterbalance theaddition of 1.37 million apartments over the last five years, at least on a macro level. Though a small number ofmarkets have faced oversupply risk, the affected areas tend to be concentrated pockets, with upper-echelonunits facing the greatest competition. For traditional workforce housing, Class B and C apartments, the risksstemming from overdevelopment have been nominal, and in most metros, even the Class A tranche hasdemonstrated sturdy performance. In the coming year, rising development costs, tighter construction financingand mounting caution levels will curb the pace of additions from the 380,000 units delivered in 2017 toapproximately 335,000 apartments. However, the list of markets facing risk from new completions will stretchbeyond the dozen metros that builders have concentrated on thus far. This will heighten competition, requiringinvestors to maintain an increasingly tactical perspective integrating vigilant market scrutiny and strong propertymanagement.
Competitive nuances increasingly granular. Although the pace of apartment completions will moderate in2018, additions will still likely outpace absorption. This imbalance will most substantively affect areas wheredevelopment has been focused, such as the urban core where vacancy rates have risen above suburban ratesfor the first time on record. Nationally, Class A vacancy rates have advanced to 6.3 percent in 2017 and willcontinue their climb to the 6.8 percent range over the next year. Vacancy rates for Class B and C assets willrise less significantly in 2018, pushing to 5.0 percent and 4.7 percent, respectively. Although vacancy levels arerising, three-fourths of the major metros have rates below their 15-year average. Still, the magnitude of newcompletions coming to market and the high asking rents these new units command will spark increasedcompetition for tenants, generating a more liberal use of concessions in 2018 as landlords attempt to enticemove-up tenants.
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2018 National Apartment Outlook
U.S. APARTMENT OVERVIEW
** Estimate
Rent growth tapers as concession use edges higher. Average rent growth will taper to 3.1 percent in2018 as concessions become more prevalent, particularly in Class A properties. Rent gains in the Class Cspace, which were particularly strong last year, will face greater challenges as affordability restrainsdemand. Although job growth has been steady for seven years, wage growth has been relatively weak,particularly for low-skilled labor.
Congress may nudge apartment demand. The new tax laws could reinforce apartment living as the largerstandard deduction reduces the economic incentive of homeownership. Previous tax rules encouragedhomeownership with itemized deductions for property taxes and mortgage interest that often surpassed thestandard deduction. These advantages have largely been eliminated, particularly for first-time buyers.
Are millennials finally moving out on their own? The 80 million-strong millennial age cohort, nowpushing into their late 20s, may finally be showing independence. Since the recession, the percentage ofyoung adults living with their parents increased dramatically, but last year that trend reversed. Should theshare of young adults living with family recede toward the long-term average, an additional 3 million youngadults would need housing.
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Fed Normalization Portends Rising Interest Rates;Capital Availability for Apartments Elevated
U.S. CAPITAL MARKETS
* Through December 12 ** Through December 6
Fed cautiously pursues tighter policies. Investors have largely adapted to the modestly higher interest rateenvironment, and most anticipate additional increases in 2018 as the Federal Reserve normalizes both itspolicies and its balance sheet. The Fed is widely expected to continue raising its overnight rate through 2018 asit tries to restrain potential inflation risk and create some dry powder to combat future recessions. The Fed will,however, be cautious about pushing short-term rates into the long-term rates, which would create an invertedyield curve. The spread between the two-year Treasury rate and the 10-year Treasury rate has tightenedsignificantly, and if the Fed is too aggressive in its policies, the short-term interest rates could climb above long-term rates. This inversion is a commonly watched leading indicator of an impending recession. The newchairman of the Fed, Jerome Powell, will likely make few changes to the trajectory of Fed policies, and he iswidely expected to continue the reduction of the Fed balance sheet. Powell may consider accelerating thebalance sheet reduction to ensure long-term rates move higher. That said, Powell is widely perceived to be adovish leader who will advance rates cautiously.
Readily available debt backed by sound underwriting. Debt availability for apartment assets remainsabundant, with a wide range of lenders catering to the sector. Apartment construction financing hasexperienced some tightening, a generally favorable trend for most investors. Fannie Mae and Freddie Mac willcontinue to serve a significant portion of the multifamily financing, with local and regional banks targetingsmaller transactions and insurance companies handling larger deals with low-leverage needs. In general,lenders have been loosening credit standards on commercial real estate lending, but underwriting standardsremain conservative with loan-to-value ratios for apartments in the relatively conservative 66 percent range. Animportant consideration going forward, however, will be investors’ appetite for acquisitions as the yield spreadbetween interest rates and cap rates tightens.
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2018 Capital Markets Outlook
U.S. CAPITAL MARKETS
Yield spread tightens amid rising interest rates. Average apartment cap rates have remained relativelystable in the low-5 percent range for the last 18 months, with a yield spread above the 10-year Treasury ofabout 280 basis points. Many investors believe cap rates will rise in tandem with interest rates, but this hasnot been the case historically. Given the strong performance of the apartment sector, it’s more likely theyield spread will compress, reducing the positive leverage investors have enjoyed in the post-recession era.
Inflation restrained but could emerge. Inflation has been nominal throughout the current growth cycle, butpressure could mount as the tight labor market spurs rising wages. Elevated wages and acceleratinghousehold wealth could boost consumption, creating additional economic growth and inflation. The Fed hasbecome increasingly proactive in its efforts to head off inflationary pressure, but the stimulative effects of taxcuts could overpower the Fed’s efforts.
Policies likely to strengthen dollar and could pose new risks. One wild card that could create aneconomic disruption is the strengthening dollar. The economic stimulus created by tax cuts together withtightening Fed monetary policy place upward pressure on the value of the dollar relative to foreigncurrencies. This could restrain foreign investment in U.S. commercial real estate, but it could also weakenexports and make it more difficult for other countries to pay their dollar-denominated debt, which in turnweakens global economic growth.
* Through December 12Estimate
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Apartment Investors Recalibrate Strategies;Broaden Criteria to Capture Upside Opportunities
U.S. INVESTMENT OUTLOOK
* Through 3Q** Trailing 12 months through 3Q
Appreciation flattens as buyers recalibrate expectations. The maturing apartment investment climate hascontinued its migration from aggressive growth to a more stable but still positive trend. Investors have reapedstrong returns in the post-recession era through significant gains in fundamentals and pricing, but the growthtrajectory has flattened as the market has normalized. The pace of apartment rental income growth has movedback toward its mid-3 percent long-term average and investor caution has flattened cap rates, moderatingappreciation. With much of the gains created by the post-recession recovery absorbed and most of the value-add opportunity already extracted, it has been increasingly difficult for investors to find opportunities withsubstantive upside potential. At the same time, apartment construction has finally brought macro-level housingsupply and demand back toward equilibrium, restraining upside potential in markets with sizable deliveries.These challenges have been compounded by a widened bid/ask gap, with many would-be apartment sellersretaining a highly optimistic perception of their asset’s value. It will take time for investor expectations to realign,but buyers and sellers are discovering a flattening appreciation trajectory. Still, a range of opportunities remain.
Investors broaden criteria as they search for yield upside. Investors are recalibrating strategies, broadeningtheir search and sharpening their efforts to find investment options with upside potential. They have expandedcriteria to include a variety of Class B and Class C assets, outer-ring suburban locations, and properties insecondary or tertiary markets. The yield premium offered by these types of assets has drawn an increasingamount of multifamily capital. In the last year, nearly half of the dollar volume invested in apartment propertiesover $1 million went to secondary and tertiary markets, up from 42 percent of the capital in 2010. This influx ofactivity has caused cap rates in tertiary markets to fall from the high-8 percent range in 2010 to their currentaverage near 6 percent. During the same period, national cap rates of Class B/C apartment properties havefallen by 200 basis points to the mid-5 percent range. Considering the low cost of capital, these yields haveremained attractive to investors with longer-term hold plans.
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2018 Investment Outlook
U.S. INVESTMENT OUTLOOK
New tax laws could shift investor behavior. Additional clarity on taxes should alleviate some of theuncertainty that held back investor activity over the last year while helping to mitigate the expectation gapbetween buyers and sellers. Reduced tax rates on pass-through entities could spark some repositioningefforts, bringing additional assets to market and supporting market liquidity.
Tighter monetary policy could narrow yield spreads. Prospects of a rising interest rate environmentcould weigh on buyer activity as the yield spread tightens. Cap rates have held relatively stable over the lasttwo years, and the sturdy outlook for apartment fundamentals is unlikely to change substantively in thecoming year. As a result, investors’ pursuit of yield will likely push activity toward assets and markets thathave traditionally offered higher cap rates.
Transaction activity retreats from peak levels. Apartment sales continued to migrate toward more normallevels last year as investors’ search for upside and value-add opportunities delivered fewer candidates.Markets with a limited construction pipeline but with respectable employment and household formationgrowth will see accelerated activity, while markets facing an influx of development could see moderatinginvestor interest.
* Through 3Q** Trailing 12 months through 3Q
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* Forecast
REVENUE TRENDS
Five-Year Apartment Income Growth by MetroPercent Change 2013-2018*
FIVE-YEAR TREND:Outperforming Through Development Cycle2013-2018*
U.S. creates 11.8 million jobs over five years
Developers add 1.5 million new apartments
Absorption totals 1.4 million apartments
U.S. vacancy rate to match 2013 at 5.0 percent
U.S. average rent rises 23.2 percent
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Sources: Marcus & Millichap Research Services; MPF Research
2018 NATIONAL INVENTORY TREND
Five-Year Development Wave Transforms Rental LandscapeInventory Growth 2013-2018
Inventory Change by Market 2013 to 2018
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Sources: Marcus & Millichap Research Services; MPF Research
2018 NATIONAL INVENTORY TREND
Largest Growth Five-Year Inventory Change Five-Year Rent Growth
Austin 23.6% 22%Charlotte 22.9% 30%Nashville 21.7% 31%Salt Lake City 20.9% 31%Raleigh 19.5% 27%San Antonio 18.7% 20%Denver 17.9% 41%Seattle-Tacoma 15.9% 41%Orlando 15.3% 35%Dallas/Fort Worth 15.3% 30%
U.S. 9.8% 23%
Top 10 Markets by Inventory Change
Smallest Growth Five-Year Inventory Change Five-Year Rent Growth
Cincinnati 6.6% 24%Chicago 6.2% 21%Oakland 5.8% 40%Riverside-San Bernardino 5.6% 36%St. Louis 5.5% 14%Los Angeles 5.4% 31%New York City 4.6% 15%Cleveland 4.6% 15%Sacramento 3.8% 48%Detroit 2.9% 25%
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DEMOGRAPHICS
Source: © 2017 Experian
Created on June 2018
POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection
Total Population 2,224 173,820 603,296 2017 Estimate
Total Population 2,074 163,692 587,211 2010 Census
Total Population 1,755 142,092 524,141 2000 Census
Total Population 1,093 118,971 486,779 Daytime Population
2017 Estimate 11,799 360,402 804,583
HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection
Total Households 1,206 65,503 212,459 2017 Estimate
Total Households 1,088 60,391 201,809Average (Mean) Household Size 2.05 2.55 2.76
2010 CensusTotal Households 895 51,754 179,727
2000 CensusTotal Households 478 41,536 160,794
Growth 2015-2020 10.85% 8.46% 5.28%
HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units
2022 Projection 1,206 65,503 212,4592017 Estimate 1,088 60,927 204,060Owner Occupied 381 25,194 90,571Renter Occupied 707 35,197 111,238Vacant 536 2,251
Persons In Units2017 Estimate Total Occupied Units 1,088 60,391 201,8091 Person Units 42.92% 29.10% 26.15%2 Person Units 32.08% 31.08% 28.68%3 Person Units 12.32% 16.88% 17.26%4 Person Units 6.71% 12.43% 13.94%5 Person Units 3.68% 5.26% 6.79%6+ Person Units 2.30% 5.25% 7.18%
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate
$200,000 or More 7.53% 14.96% 13.10%$150,000 - $199,000 16.40% 14.11% 12.29%$100,000 - $149,000 22.11% 22.66% 20.67%$75,000 - $99,999 13.51% 10.77% 11.25%$50,000 - $74,999 17.65% 12.32% 13.13%$35,000 - $49,999 6.45% 8.13% 9.00%$25,000 - $34,999 5.83% 5.25% 6.15%$15,000 - $24,999 4.57% 5.20% 6.43%Under $15,000 5.96% 6.60% 7.98%
Average Household Income $116,659 $135,770 $124,680Median Household Income $92,175 $103,426 $91,124Per Capita Income $61,244 $50,768 $43,332
POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age
2017 Estimate Total Population 2,074 163,692 587,211Under 20 18.55% 22.55% 23.67%20 to 34 Years 34.19% 28.66% 26.47%35 to 39 Years 11.73% 9.84% 8.69%40 to 49 Years 12.92% 14.33% 14.05%50 to 64 Years 13.17% 15.50% 16.73%Age 65+ 9.44% 9.13% 10.39%Median Age 34.11 34.46 34.93
Population 25+ by Education Level2017 Estimate Population Age 25+ 1,569 114,491 405,578Elementary (0-8) 3.40% 4.84% 6.31%Some High School (9-11) 4.09% 5.73% 7.18%High School Graduate (12) 13.25% 15.73% 17.53%Some College (13-15) 18.35% 15.65% 16.73%Associate Degree Only 7.35% 6.59% 7.34%Bachelors Degree Only 23.81% 27.35% 25.04%Graduate Degree 28.66% 22.18% 17.29%
Population by Gender2017 Estimate Total Population 2,074 163,692 587,211Male Population 53.21% 51.94% 51.28%Female Population 46.79% 48.06% 48.72%
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IncomeIn 2017, the median household income for your selected geography is$92,175, compare this to the US average which is currently $56,286.The median household income for your area has changed by 42.62%since 2000. It is estimated that the median household income in yourarea will be $111,184 five years from now, which represents a changeof 20.62% from the current year.
The current year per capita income in your area is $61,244, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $116,659, compare this to the USaverage which is $81,217.
PopulationIn 2017, the population in your selected geography is 2,074. Thepopulation has changed by 89.75% since 2000. It is estimated that thepopulation in your area will be 2,224.00 five years from now, whichrepresents a change of 7.23% from the current year. The currentpopulation is 53.21% male and 46.79% female. The median age of thepopulation in your area is 34.11, compare this to the US averagewhich is 37.83. The population density in your area is 659.65 peopleper square mile.
HouseholdsThere are currently 1,088 households in your selected geography. Thenumber of households has changed by 127.62% since 2000. It isestimated that the number of households in your area will be 1,206five years from now, which represents a change of 10.85% from thecurrent year. The average household size in your area is 2.05persons.
EmploymentIn 2017, there are 28,965 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that66.55% of employees are employed in white-collar occupations in thisgeography, and 34.48% are employed in blue-collar occupations. In2017, unemployment in this area is 4.47%. In 2000, the average timetraveled to work was 21.00 minutes.
Race and EthnicityThe current year racial makeup of your selected area is as follows:35.88% White, 3.68% Black, 0.33% Native American and 40.73%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.
People of Hispanic origin make up 27.42% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.
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MARKETING TEAM
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HousingThe median housing value in your area was $508,832 in 2017,compare this to the US average of $193,953. In 2000, there were 189owner occupied housing units in your area and there were 289 renteroccupied housing units in your area. The median rent at the time was$1,243.
Source: © 2017 Experian
DEMOGRAPHICS
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