Turn Key 4plex for Sale!€¦ · 5427 Manila Avenue Oakland, CA 94618 Sale Price: $2,400,000 Lot Size: 0 SF Year Built: 1920 Building SF: 3,239 SF Price PSF: $740.97 No. Units: 4

Greg MayoInvestment Advisor

O: 408.883.8003M: 408.438.3180

[email protected] #01964504

Mike PrioloSenior Investment Advisor

O: 408.471.5824M: 408.439.8875


Turn Key 4plex for Sale!4278 Terrace St.Oakland, CA 94611

OFFERINGMEMORANDUM

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4278 Terrace St.Oakland, California 94611

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.

Greg MayoO: 408 883 [email protected] | CA CalDRE #01964504

Mike PrioloO: 408 471 [email protected] | CA CalDRE #01878385

For More Information:

Confidentiality & Disclosure

Turn Key 4plex for Sale!4278 Terrace St., Oakland, CA 94611

Table of Contents

4 Section 1Property Information

10 Section 2Location Information

15 Section 3Additional Information

20 Section 4Financial Analysis

26 Section 5Sales Comparables

30 Section 6Demographics

Table Of Contents


Section 1

PROPERTYINFORMATION

1

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Property Overview4278 Terrace is a fully renovated turn-key 4plex located in one ofthe most trendy and upcoming neighborhoods in Oakland -Temescal. Terrace benefits from its close proximity to both BART,highways 580 and highway 24. This properties high end finishesand desirable location make it an attractive choice for youngprofessionals to call home.

Location OverviewTemescal Neighborhood of Oakland is one of the oldestneighborhoods in Oakland, California, located in North Oakland,and centered on Telegraph Avenue. Quick access to publictransportation and freeways and a walkable strip of highlyregarded restaurants.

Temescal is bordered by 51st Street to the north, 40th Street tothe south, Broadway to the east, and state Route 24 to the west.The latter freeway feeds directly into Interstate 580, making itpossible to drive to San Francisco in less than 20 minutes.

SALE PRICE: $1,950,000

PRICE/UNIT: $487,500

PRICE/SF: $700

NUMBER OF UNITS: 4

CAP RATE: 4.07%

GRM: 15.66

NOI: $79,336

LOT SIZE: 3,960 SF

BUILDING SIZE: 2,784 SF

CEILING HEIGHT: 9.0 FT

YEAR BUILT: 1920

RENOVATED: 2016

SUB MARKET: Temescal

CROSS STREETS: Mather

Executive Summary


PROPERTY ADDRESS:4278 Terrace St.

Oakland, CA 94611

APN: 13-1110-43

LOT SIZE: 3,960 SF

BUILDING SIZE: 2,784 SF

YEAR BUILT: 1920

NUMBER OF STORIES: 2

FOUNDATION: Concrete Perimeter

WALLS: Wood Framed

NUMBER OF UNITS: 4

ROOF: Torch Down

Property Details


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Property Highlights• Multi Family building with (4) 1bedroom 1bathroom

units

• 2,784 SqFt of living space situated on a 3,960 SqFt Lot

• Each unit has been fully renovated inside and out.

Amenities include but not limited to, fresh paint, copper

plumbing, new electrical and double pane windows

• Living rooms offer an abundance of natural light,

hardwood flooring, recessed lighting, crown molding

and a spacious closet for extra storage

• Separate dining rooms with a large walk-in closet and a

dry bar

• Kitchens have been updated with a natural stone

countertop, soft close cabinets/drawers, glass tile

backsplash, tile flooring, gas stove and a stainless steel

refrigerator

• Bathrooms offer a walk-in shower, updated light

fixtures, mirror, vanity, tile flooring and motion censored

light switch

• Private backyard with extra storage sheds and a coin

operated washer and dryer.

• 4 separate one car garages for each unit

Complete Highlights


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Additional Photos


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Additional Photos


Section 2

LOCATIONINFORMATION

2

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Additional Photos


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Location Maps


Regional Map


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Aerial Map


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Section 3

FLOORPLANS

3

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Floor Plans

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Floor Plans

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Floor Plans

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Floor Plans

Section 4

FINANCIALANALYSIS

4

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Investment Overview

Price $1,950,000

Number of Units 4

Price per Unit $487,500

Approximate Square Footage 2,784

Price per Square Footage $700

GRM 15.66

CAP Rate 4.07%

Operating Data

Gross Scheduled Income $124,533

Vacancy Cost (3.0%) - $3,735

Gross Operating Income $120,797

Operating Expenses - $41,460

Net Operating Income $79,336

Debt Service - $65,556

Pre-Tax Cash Flow $13,780

Cash-on-Cash Return % (yr 1) 1.62%

Principal Reduction (yr 1) + $18,286

Total Return (yr 1) $32,066

Return on Investment % 3.77%

Financial Summary


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Financing Data

Loan Amount $1,100,000

LTV 56.41%

Interest Rate 4.330%

Debt Service $65,556

Debt Service Monthly $5,463

Amortization 30

Financial Quote


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Fixed Expenses Expense Expense / Unit % Of Total % Gross Notes

Tax $26,648 $6,662 64.27% 22.06% 1.3666

Special Assessments $2,095 $523 5.05% 1.73% Actual

Insurance $2,775 $693 6.69% 2.3% Actual

TOTAL FIXED EXPENSES $31,518 $7,879 76.02% 26.09%

Operational Expenses:

Repairs & Maintenance $2,373 $593 5.73% 1.97% Actual

EBMUD $2,563 $640 6.18% 2.12% Actual

Garbage $3,804 $951 9.18% 3.15% Actual

Reserves $1,200 $300 2.89% 0.99% Estimate @ 300per unit

TOTAL OPERATIONAL EXPENSES $3,573 $893 8.62% 2.96%

TOTAL EXPENSES: $41,460 $10,365 100% 34.32%

Expenses Sheet


Income Summary Per SF

Rental Income $116,928 $42.00

Laundry Income $1,605 $0.58

Garage Rental $6,000 $2.16

Gross Income $124,533 $44.73

Expense Summary Per SF

Fixed: Tax "1.3666" $26,648 $9.57

Fixed: Special Assessments "Actual" $2,095 $0.75

Fixed: Insurance "Actual" $2,775 $1.00

Operational: Repairs & Maintenance "Actual" $2,373 $0.85

Operational:EBMUD "Actual" $2,563 $0.92

Operational:Garbage "Actual" $3,804 $1.37

Operational: Reserves "Estimate @ 300 per unit" $1,200 $0.43

Gross Expenses $41,460 $14.89

Net Operating Income $79,336 $28.50

Income & Expenses


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UnitNumber

MarketRent

LeaseStart

4278 $2,550 2/4/19

4280A $2,550 5/28/18

4280B $2,550 8/1/17

4282 $2,550 6/1/16

Garage 1 $125 9/22/17

Garage 2 $125 9/22/17

Garage 3 $125 9/6/17

Garage 4 $125 9/22/17

Totals/Averages $10,700

Rent Roll


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Section 5

SALESCOMPARABLES

5

Subject Property

4278 Terrace St. | Oakland, CA 94611

$1,950,000Sale Price: 1920Year Built:

2,784 SFBuilding SF: $700.43Price PSF:

4No. Units: $487,500Price / Unit:

15.66GRM: 4.07%CAP:

$79,336NOI:

1

5427 Manila AvenueOakland, CA 94618

$2,400,000Sale Price: 0 SFLot Size:

1920Year Built: 3,239 SFBuilding SF:

$740.97Price PSF: 4No. Units:

$600,000Price / Unit: 01/03/2018Closed:

50%Occupancy:

1

2

4347 Leach AveOakland, CA 94602

$2,000,000Sale Price: 3,920 SFLot Size:



$500,000Price / Unit: 10/24/2018Closed:

This asset was fully renovated and delivered vacant at the close of escrow. This asset was listed at $1,860,000 and closed at$2,000,000. It was on the market for approximately 36 days.

2

3

1720 ClemensOakland, CA 94062

$1,860,000Sale Price: 8,236 SFLot Size:



$465,000Price / Unit: 0.00%CAP:

12/21/2018Closed: 0%Occupancy:

0.00GRM: $0NOI:

Property was delivered vacant at time of sale. Property was listed at $1,795,000 and sold at $1,860,000.

3

Sales Comparables


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

4278 Terrace St.Oakland, CA 94611

$1,950,000 2,784 SF $700.43 $487,500 4.07% 15.66 4

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

15427 Manila AvenueOakland, CA94618

$2,400,000 3,239 SF $740.97 $600,000 - - 4 01/03/2018

24347 Leach AveOakland, CA94602

$2,000,000 3,783 SF $528.68 $500,000 - - 4 10/24/2018

31720 ClemensOakland, CA94062

$1,860,000 5,791 SF $321.19 $465,000 0.00% 0.00 4 12/21/2018

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

$2,086,667 4,271 SF $530.28 $521,666 - - 4

Sales Comparables Summary


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4278 Terrace St. | Oakland, CA 94611Subject Property

1Oakland, CA94618

5427 Manila Avenue 2Oakland, CA94602

4347 Leach Ave 3Oakland, CA94062

1720 Clemens

Sales Comparables Map


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Section 6

DEMOGRAPHICS

6

* Demographic data derived from 2010 US Census

Population 0.5 Miles 1 Mile 1.5 MilesTOTAL POPULATION 9,919 35,487 84,486

MEDIAN AGE 41.5 40.0 38.2

MEDIAN AGE (MALE) 40.7 39.4 37.5

MEDIAN AGE (FEMALE) 43.8 40.9 38.9

Households & Income 0.5 Miles 1 Mile 1.5 MilesTOTAL HOUSEHOLDS 5,870 19,234 42,740

# OF PERSONS PER HH 1.7 1.8 2.0

AVERAGE HH INCOME $83,583 $88,292 $89,319

AVERAGE HOUSE VALUE $691,009 $727,766 $706,898

Ethnicity 0.5 Miles 1 Mile 1.5 Miles% HISPANIC 9.2% 9.5% 9.2%

Race 0.5 Miles 1 Mile 1.5 Miles% WHITE 78.7% 71.3% 61.1%

% BLACK 8.4% 13.0% 22.3%

% ASIAN 11.3% 13.4% 13.7%

% HAWAIIAN 0.3% 0.3% 0.2%

% INDIAN 0.2% 0.4% 0.3%

% OTHER 1.5% 1.8% 2.6%

Demographics Map


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* Demographic data derived from 2010 US Census

0.5 Miles 1 Mile 1.5 Miles

Total Households 5,870 19,234 42,740

Total Persons Per Hh 1.7 1.8 2.0

Average Hh Income $83,583 $88,292 $89,319

Average House Value $691,009 $727,766 $706,898

0.5 Miles 1 Mile 1.5 Miles

Total Population 9,919 35,487 84,486

Median Age 41.5 40.0 38.2

Median Age (Male) 40.7 39.4 37.5

Median Age (Female) 43.8 40.9 38.9

Demographics Report


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SalesCompsProperty

Marketing

MarketingServices

1

A Grassroots MethodologyOur deep roots in Northern California are enhanced by our connection to NAI Global’s 375 offices in 65 countries. We have the insight to develop the strategy, the tools to execute the action plan and the relationships to deliver results.

Direct Canvassing and Cold CallingNAI Northern California has access to a proprietary database containing 210 million consumers and 14 million businesses. We utilize this information to develop multi-channel marketing campaigns and target prospects. Our web of relationships include:

» 6,700 NAI colleagues worldwide » Economic Development Organizations » Chambers of Commerce » Business Community » Local Brokerage Houses » Professional Affiliations

Broker CooperationWe contact all brokers who possess the expertise and qualifications to contribute to a property’s marketing. These contacts include brokers with previous involvement in the sale of similar types of properties. As part of our initial marketing campaign, a mailer serves to notify qualified brokers of the offering. In addition, these brokers receive the property’s Executive Summary via e-mail. When contacted by outside agents requesting information, NAI California returns such requests generally within 2 hours, but always within 24 hours. This encourages outside brokers to pursue the opportunity and fosters more interested, resulting in a higher sales price. When appropriate, we also schedule both broker and investor showings of the property.

Everybody does electric

marketing through e-mail.

Everybody posts their listings on

CoStar and LoopNet. So, what

makes NAI Northern California

different? Attention to detail,

dedication to your project as

though it is our only listing, and

a commitment to present your

asset in the right way to the right

people at the right time.

We are creative, nimble and

diligent.

SalesCompsOnline

Marketing

MarketingServices

2

Email MarketingOver the years of representing landlords, NAI NorCal has amassed an extensive database of e-mail addresses of prospective tenants, owners, active investors and qualified buyers. Additionally, we understand that it’s impossible to have a relationship with every person in the marketplace, which is why we take time to compile and update one of the industry’s largest commercial real estate broker databases. This list includes active local and national buyers, sellers and agents at firms both large and small. Our broker database currently exceeds 7,500 agents.

Online Marketing Expsoure

NAINORCAL.COMNAI Northern California’s home page provides a search engine for our listed properties with local, national and international exposure and showcases detailed information regarding the property. An added benefit is NAINorCal.com’s top-level search engine optimization and directly syndication to the web’s leading listing portals for commercial real estate:

NAIGLOBAL.COMNAIGlobal.com provides immediate access to a long established global network of NAI members and clients. The web site is accessed by 6,700 members in 375 offices worldwide, the largest network of commercial real estate professionals in the world.

Technology provides a way for us

to quickly access targeted local,

national and international clients.

NAI Northern California employs

a number of methods to ensure

broad coverage and timely

delivery of property information

across a number of channels.

MarketingServices

MarketingServices

Loopnet - Loopnet.comLoopNet is the Internet’s largest and most heavily used commercial real estate service on the web, displaying over 150,000 local and national brokers’ listings. LoopNet’s property listing service enables the widest possible exposure and is used as a search engine by many major companies. LoopNet users can search listings by geographic region, square footage, price and other criteria.

Costar Property - Costar.com CoStar Property Professional™ is much more than a listing service. In addition to agent contributions, CoStar Property Professional™ is backed by the industry’s largest professional research organization -- a highly trained team of more than 700 researchers, analysts and photographers.

Xceligent - Xceligent.com Xceligent is a leading provider of verified commercial real estate information across the United States. Their professional research team pro-actively collects a comprehensive inventory of commercial properties, buildings available for lease and sale, tenant information, sales comparables, historical trends on lease rates and building occupancy, market analytics, and demographics.

California Regional Multiple Listing Service Recognized as the nation’s largest and most recognized MLS, the CRMLS works to connect real estate professionals across the state of California. The service includes state-of-the-art MLS technology, including data distribution to a variety of listing portals and sites including the following:

SalesCompsCommercial

Listing Services

MarketingServices

3

Targeted Digital Advertising NAI Northern California utilizes behavioral targeting and programmatic advertising options (El Toro, Google Adwords, Facebook, Linkedin, Instagram) to showcase your listing in specific locations to ultra-targeted audiences. This approach allows us the option to show your listing ONLY to people who have already visited or performed a specific action on our website, allowing us to retarget and in return maximize exposure of your asset.

Print AdvertisingNAI Northern California actively advertises its exclusive listings in national, regional and local publications to expand the exposure to potential investors. We regularly feature our listings in the real estate sections of The San Francisco Chronicle, Contra Costa Times, The Investment Marketing Forum Newsletter, Bay Area Asian Real Estate Guide and other major real estate magazines and periodicals.

MarketingServicesSalesCompsAdvertising

Capabilities

MarketingServices

4

MarketingServices

Marketing PackagesOur full-color, full-bleed Offering Memorandum contains all the comprehensive offering details and information that investors require to submit a qualified bid. This includes pages showing full demographics reports and maps, road and satellite maps, comparable properties, financial details and projections, market and area details, as well as pages focusing on property-specific details and descriptions. The Offering Memorandum is distributed as a hard-copy and is also made available online to qualified investors.

SignageNAI Northern California will analyze your site for a number of factors such as visibility and permitting to determine the appropriate sign size and placement for the property. Our signs direct interested parties to contact NAI Northern California and, when feasible, will showcase the site plan or conceptual rendering. Direct Mail MarketingDirect mail postcards or flyers are sent to high probability buyers, including present owners and other potential buyers NAI Northern California has worked with in the past.

Property WebsiteNAI Northern California creates an individual webpage for each listing which includes extensive property information including the offering summary, a high-resolution photo gallery, property attributes, interactive maps, area information, demographic information, a digital offering memorandum and brochure and a downloadable confidentiality agreement.

Email BlastsE-mail has made it much easier to contact thousands of brokers/buyers/lessors on a monthly basis, with PDF files attached containing all the pertinent property information. This ensures that we have a “marketing touch” with the community and that we maintain a frequency that keeps each property’s availability fresh in the minds of all. Our comprehensive database of brokers,prospective tenants, and buyers - allows us to efficiently target and qualify the best buyer/ lessor for your property - in the shortest amount of time.

SalesCompsSample

Marketing

MarketingServices

5

123 Main StreetSan Francisco, CA 94016

Offering Memorandum

First LastNameCA BRE #[email protected]



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Mike PrioloSenior Investment Advisor408.471.5824 tel408.439.8875 cell408.471.5824 [email protected]

Professional Background

I am a 10 year veteran and I love the commercial real estateindustry. I like to look at myself as a financial advisor, only Iuse real estate instead of wall street to help my clients achievetheir goals.

If you are interested in any of the following:

* Increasing the net monthly cash-flow generated by yourinvestment real estate

* Preserving the equity you've earned over the years from yourinvestment real estate

* Eliminate management and maintenance responsibilitiesassociated with your real estate

Then we should sit down and talk!

I am a 1031 exchange expert, I specialize in Triple Net andMulti-Family assets. I am confident I can assist you in freeingup more time for yourself and putting more money in yourpocket.

Please feel free to call or email me regarding a 100%complimentary consultation where I can show you exactly howI help my clients achieve what I've outlined above.

Education

BA, Real Estate Finance, San Diego State

Agent Profile & Contact 1


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Greg MayoInvestment AdvisorCalDRE #01964504408.883.8003 tel408.438.3180 cell408.883.8003 [email protected]

Professional Background

Greg Mayo is a multi family investment specialist with NAINorthern California. He assists clients with acquisition anddisposition of assets.

Greg has a residential and multi family background giving hima well rounded understanding of emotional and financialmotivating factors buyers and sellers possess.

With over two decades of Bay Area residency, Gregthoroughly knows the markets within the markets from Gilroyup to Sacramento and can help you accomplish your realproperty investment goals.

Agent Profile & Contact 2



Greg MayoInvestment Advisor

O: 408.883.8003M: 408.438.3180


Mike PrioloSenior Investment Advisor

O: 408.471.5824M: 408.439.8875


Documents

Turn Key 4plex for Sale!€¦ · 5427 Manila Avenue Oakland, CA 94618 Sale Price: $2,400,000 Lot Size: 0 SF Year Built: 1920 Building SF: 3,239 SF Price PSF: $740.97 No. Units: 4