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YALE AVENUE HOMES1113, 1115, 1117 Yale Avenue,
Claremont, CA 91711(3 Homes on One Lot)
CONFIDENTIALITY AGREEMENTThe information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such informa-tion in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or busi-ness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum 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.
Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ACT ID Z0100470
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
TABLE OF CONTENTS01 PROPERTY DESCRIPTION
02 FINANCIAL ANALYSIS
03 MARKET COMPARABLES
04 MARKET OVERVIEW
PROPERTY DESCRIPTION
The Offering 06
Investment Highlights 07
Site Maps 03
Property Summary 04
Property Photos 05
6 PROPERTY DESCRIPTION
THE OFFERING
Rare, City of Claremont, investment opportunity consisting of three sep-arate, individual homes on one large 13,317 square foot lot. Located at 1113, 1115, 1117 N. Yale Avenue, the unit mix is comprised of (1) four bedroom/ two bath house, (1) three bedroom/ two bath house, and (1) two bedroom/ one bath house. Each home has its own individual access and private yard, along with additional space for relaxing and entertaining guests. All buildings are separately metered for water, gas, and electricity. There is ample parking on the lengthy driveway with an additional three-car garage and driveway parking in the rear.
Located within walking distance (three blocks) from The Claremont Col-leges, “a unique consortium of seven affiliated institutions that also in-cludes Claremont Graduate University, Scripps College, Claremont McK-enna College, Harvey Mudd College, Pitzer College, and Keck Graduate Institute of Applied Life Sciences.” Claremont is known for its many educa-tional institutions, its tree-lined streets, and its historic buildings. The city is primarily residential, with a significant portion of its commercial activity revolving around “The Village”, a popular collection of street-front small stores, boutiques, art galleries, offices, and restaurants adjacent to and west of the Claremont Colleges.
VITAL DATAPrice $1,750,000
Down Payment 50% / $875,000
Loan Amount $875,000
Loan Type New
Interest Rate / Amortization 4.75% / 30 Years
Price/Unit $583,333
Price/SF $501
Number of Units 3
Rentable SF 3,494 SF
Year Built 1905
Lot Size 13,317 SF
Parcel Number 8309-008-004
FINANCIAL HIGHLIGHTSCURRENT MARKET
CAP Rate 3.28% 4.07%
GIM 20.33 17.47
Net Operating Income $57,411 $71,229
Net Cash Flow After Debt Service 0.30% / $2,638 1.88% / $16,456
Total Return 1.84% / $16,140 3.50% / $30,613
UNIT MIXNUMBER OF UNITS UNIT TYPE APPROX. SF
1 4 Bed / 2 Bath (House) N/A
1 3 Bed / 2 Bath (House) N/A
1 2 Bed / 1 Bath (House) N/A
3 3,494
7PROPERTY DESCRIPTION
INVESTMENT HIGHLIGHTS
• Rare Claremont Investment Opportunity in AAA Location
• First Time on the Market in 20+ Years• Walking Distance to “The Claremont Village”,
Metro Link, & Claremont Colleges• Very Low Expense / Owner Responsible for
Sewer Charge Only• Three Homes on One Large Lot• Ample On-Site Parking• Non-Rent Control• Located on Quiet Residential Street• Newer Roofs• 1117 Yale Recently Rebuilt
8 PROPERTY DESCRIPTION
REGIONAL MAP
9PROPERTY DESCRIPTION
LOCAL MAP
10PROPERTY DESCRIPTION
BIRDS EYE
SUBJECT PROPERTY
YALE AVENUE
INDIAN HILL BLVD.
12TH
STR
EET
11PROPERTY DESCRIPTION
SURROUNDING MAP
THE CLAREMONTCOLLEGES
THE VILLAGE
INDIAN HILLBOULEVARD
12PROPERTY DESCRIPTION
PROPERTY SUMMARY
SITE DESCRIPTIONPrice $1,750,000
Property Address 1113, 1115, 1117 Yale Ave., Claremont, CA 91711
Parcel Number 8309-008-004
Number of Units 3
Year Built/Renovated 1905
Rentable SF 3,494 SF
Lot Size 13,317 SF
PROPOSED FINANCINGFIRST TRUST DEED
Loan Type Proposed New
Down Payment 50% / $875,000
Loan Amount $875,000
Loan to Value 50%
Interest Rate 4.75%
Loan Term 30 Years
30 Years Fixed
Amortization 30 Years
13PROPERTY DESCRIPTION
Claremont Hills Wilderness Trail
14PROPERTY DESCRIPTION
PROPERTY PHOTOS
15PROPERTY DESCRIPTION
FINANCIAL ANALYSIS
Rent Roll - Summary 06
Rent Roll - Detail 02
Pricing - Detail 03
18FINANCIAL ANALYSIS
RENT ROLL SUMMARY
No. of Units
4 Bed 2 Bath House 3 Bed 2 Bath House 2 Bed 1 Bath House
$0.00$0.10$0.20$0.30$0.40$0.50$0.60$0.70$0.80$0.90$1.00
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
House House House
2 Bath 2 Bath 1 Bath
4 Bed 3 Bed 2 Bed
Unit Rents
Rental Range Rent/SF
UNIT DISTRIBUTION UNIT RENT
AS OF OCTOBER 2018
CURRENT MARKET
UNIT TYPENO. OF UNITS
APPROX. SFRENTALRANGE
MONTHLYINCOME
MARKETRENT
MONTHLYINCOME
4 Bedroom / 2 Bath (House) 1 N/A $2,975 $2,975 $3,500 $3,500
3 Bedroom / 2 Bath (House) 1 N/A $2,500 $2,500 $2,800 $2,800
2 Bedroom / 1 Bath (House) 1 N/A $1,700 $1,700 $2,050 $2,050
TOTAL FIGURES 3 3,494 $7,175 $8,350
GROSS ANNUALIZED RENTS $86,100 $100,200
19FINANCIAL ANALYSIS
RENT ROLL DETAIL
UNIT UNIT TYPE CURRENTRENT / MONTH
MARKETRENT / MONTH
1113 2 Bedroom / 1 Bath (House) $1,700 $2,050
1115 3 Bedroom / 2 Bath (House) $2,500 $2,800
1117 4 Bedroom / 2 Bath (House) $2,975 $3,500
Scripps CollegeClaremont McKenna College
20FINANCIAL ANALYSIS
PRICING DETAIL
SUMMARYPrice $1,750,000
Down Payment 50% / $875,000
Loan Amount $875,000
Interest Rate / Amortization 4.75% / 30 Years
Number of Units 3
Price/Unit $583,333
Price/SF $501
Rentable SF 3,494 SF
Year Built 1905
Lot Size 13,317 SF
RETURNSCURRENT MARKET
CAP Rate 3.28% 4.07%
GIM 20.33 17.47
Cash-on-Cash 0.30% 1.88%
Total Return 1.84% 3.50%
ANNUALIZED OPERATING DATA - INCOMECURRENT MARKET
Gross Scheduled Rent $86,100 $100,200
Total Other Income $0 $0
Gross Potential Income $86,100 $100,200
Less: Vacancy/Concessions 2.00% / $1,722 2.00% / $2,004
Effective Gross Income $84,378 $98,196
Less: Expenses 31.96% / $26,967 27.46% / $26,967
NET OPERATING INCOME $57,411 $71,229
Cash Flow $57,411 $71,229
Debt Service $54,773 $54,773
NET CASH FLOW AFTER DEBT SERVICE 0.30% / $2,638 1.88% / $16,456
Principal Reduction $13,502 $14,157
TOTAL RETURN 1.84% / $16,140 3.50% / $30,613
ANNUALIZED OPERATING DATA - EXPENSESCURRENT MARKET
Property Taxes & Assessments $21,000 $21,000
Insurance $1,307 $1,307
Utilities $1,200 $1,200
Repairs & Maintenance $2,000 $2,000
Landscaping $960 $960
Miscellaneous $500 $500
TOTAL EXPENSES $26,967 $26,967
EXPENSES/UNIT $8,989 $8,989
21FINANCIAL ANALYSIS
Petterson Museum of Intercultural Art
MARKET COMPARABLES
Recent Sales Map 24
Recent Sales 25
24MARKET COMPARABLES
RECENT SALES MAP
1
3
2
25MARKET COMPARABLES
RECENT SALES
PROPERTY COESALE
PRICEPRICE/
UNITPRICE/
SFCAP
RATEYEAR BUILT
Subject Property On Market $1,750,000 $583,000 $501 3.28% 1905
3 Units - Featuring (1) 4 Bed/ 2 Bath House, (1) 3 Bed/ 2 Bath House, and (1) 2 Bed/ 1 Bath House.1113, 1115, 1117 Yale Ave.
Claremont, CA 91711
18/27/2018 $1,350,000 $675,000 $577 3.27% 1904
2 Units - Featuring (1) 4 Bed/ 2 Bath House and (1) 1 Bed/ 1 Bath House. 341 Harvard
Claremont, CA 91711
210/2/2018 $1,036,000 $518,000 N/A 3.16% 1926
2 Units - Featuring (1) 2 Bed/ 2 Bath House and (1) 2 Bed/ 1 Bath House.1017 Yale Ave.
Claremont, CA 91711
39/11/2018 $671,000 $335,500 $432 3.99% 1940
2 Units - Featuring (1) 2 Bed/ 2 Bath and (1) 1 Bed/ 1 Bath unit.449 W. Arrow
Claremont, CA 91711
Harvey Mudd College
MARKET OVERVIEW
Submarket - Claremont 28
Market Analysis 30
Demographic Analysis 32
28MARKET OVERVIEW
SUBMARKET - CLAREMONT
RENTAL MARKETLocated on the eastern edge of Los Angeles County, Claremont is a stable rental market, offering gradual rent growth and property appreciation. Comprised of mostly single-family homes, the demand for rental proper-ties is a constant.
ECONOMIC DRIVERSClaremont consists of several major employers whom employ over 250 persons. The most notable would be the Claremont Colleges with approx-imately 3,000 employees, leaving Claremont often referred to as “The City of Trees and PhDs”. Claremont has also been rated by several magazines as “the fifth best place to live in the United States” and “the best suburb in the West” due to its extremely low crime rate, high affordability, numerous job opportunities, and local amenities. Along with its tree-lined streets, Claremont boasts a vast number of cafes, restaurants, and coffehouses across a wide variety of cuisines, dozens of boutiques found within The Village shopping district, several locally owned day spas, and five distinct hotels. Claremont truly is “the best-kept secret in LA”.
Claremont Village
College Heights Packing House
Claremont City Hall
29MARKET OVERVIEW
Casa 425 Hotel
30MARKET OVERVIEW
MARKET ANALYSIS
LOS ANGELESOVERVIEW
METRO HIGHLIGHTS
The Los Angeles-Long Beach metro is located entirely within Los Angeles County, covering 4,752 square miles and including the islands of San Clem-ente and Santa Catalina. The county encompasses 88 incorporated cities and numerous unincorporated areas. It is bordered on the east by San Bernardino and Riverside counties, on the north by Kern and Ventura counties, on the west by the Pacific Ocean, and on the south by Orange County. The area is home to more than 10.2 million residents. The city of Los Angeles accounts for nearly 4 million people. The Los Angeles coastline stretches along 81 miles of world-famous beaches. The Santa Monica and San Gabriel mountains are located in the county, with the highest point at Mount San Antonio reaching more than 10,000 feet.
Los Angeles is the entertainment capital of the world as well as a leading international trade and manufacturing center.
The region has well-established and interconnected transpor-tation systems by road, rail, and waterways, allowing access to most of the world’s markets.
A desirable climate and proximity to the ocean and recreational opportunities lure companies and residents to the metro.
ECONOMIC CENTER
VAST INFRASTRUCTURE NETWORK
JOB AND POPULATION GROWTH
Downtown Los Angeles
31MARKET OVERVIEW
ECONOMY• The motion picture/entertainment industry is one of the most
high-profile sectors of the economy. • The GMP (Gross Metropolitan Product) grew by 2.8 percent, above
that of the U.S. rate in 2017.• Thirteen Fortune 500 companies are headquartered in the metro
during 2017.• A significant aerospace industry is led by employers that include Boe-
ing, Northrop Grumman, and Lockheed Martin.• Employers in a variety of industries provide approximately 4.4 million
jobs in the county.• The two ports make the area a major player in transportation and the
global shipping trade.
MAJOR EMPLOYERSKaiser Permanente
Northrop Grumman Corp.
The Boeing Corp.
Kroger Co.
Cedars-Sinai Medical Center
University of Souther California
Target Corp.
Bank of America Corp.
The Home Depot
Providence Health & Services
ECONOMIC GROWTH
32MARKET OVERVIEW
DEMOGRAPHIC ANALYSIS
QUALITY OF LIFE SPORTS
EDUCATION
ARTS & ENTERTAINMENT
$569,000 100+ 80+MEDIAN HOME PRICE MUSEUMS MILES OF SHORELINE
The Los Angeles region enjoys pleasant weather, with sunshine throughout the year. Bounded by mountains and the Pacific Oceanm the temperature rarely rises above 85 degrees or falls below 40 degrees and rainfall is minimal. It is possible to swim in the ocean and ski on the mountains on the same day.
There are 27 institutes of higher learning in the county, including three cam-puses of the University of California and seven campuses of California State University. Private institutions such as Caltech, the Claremont Colleges, Occi-dental College, and the University of Southern California, along with a number of community colleges, are also included in this count.
Several professional and college teams are located in the area. Cultural venues include Walt Disney Concert Hall, Dorothy Chandler Pavillion, the Hollywood Bowl, Warner Bros. Studios, Huntington Library, the Museum of Art, and the Natural History Museum of Los Angeles County.
33MARKET OVERVIEW
UNIT TYPE 1 MILE 3 MILES 5 MILES
2022 ProjectionTotal Population 16,497 153,461 378,412
2017 EstimateTotal Population 16,235 152,837 377,465
2010 CensusTotal Population 15,021 143,517 357,468
2000 CensusTotal Population 14,541 138,552 348,902
Daytime Populations2017 Estimate 30,534 147,763 341,152
HOUSEHOLDS 1 MILE 3 MILES 5 MILES
2022 ProjectionTotal Households 5,472 48,796 117,089
2017 EstimateTotal Households Average (Mean) Household Size
5,2982.19
47,6163.03
114,5983.17
2010 CensusTotal Households 4,792 44,379 108,045
2000 CensusTotal Households 4,641 42,996 105,836
Growth 2015 - 2020 3.28% 2.48% 2.17%
HOUSING UNITS 1 MILE 3 MILES 5 MILES
Occupied Units
2022 Projection 5,472 48,796 117,089
2017 Estimate 5,411 48,701 117,045
Owner Occupied 2,434 26,627 63,490
Renter Occupied 2,864 20,989 51,108
Vacant 113 1,085 2,447
Persons In Units
2017 Estimate Total Occupied Units 5,298 47,616 114,598
1 Person Units 37.00% 22.00% 20.12%
2 Person Units 33.14% 27.02% 25.92%
3 Person Units 13.21% 16.36% 16.33%
4 Person Units 10.36% 15.35% 15.94%
5 Person Units 4.00% 9.36% 10.21%
6+ Person Units 2.27% 9.92% 11.47%
HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES
2017 Estimate
$200,000 or More 12.47% 5.86% 5.01%
$150,000 - $199,000 9.01% 6.30% 5.96%
$100,000 - $149,000 16.25% 14.23% 13.95%
$75,000 - $99,999 10.45% 13.14% 12.81%
$50,000 - $74,999 16.50% 18.90% 19.13%
$35,000 - $49,999 11.80% 13.53% 13.78%
$25,000 - $34,999 6.68% 9.18% 9.28%
$15,000 - $24,999 8.86% 9.15% 9.81%
Under - $15,000 7.99% 9.74% 10.27%
Average Household Income $114,908 $86,294 $81,908
Median Household Income $72,228 $61,079 $58,936
Per Capita Income $42,989 $27,738 $25,314
HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES
Population By Age
2017 Estimate Total Population 16,235 152,837 377,465
Under 20 23.67% 26.59% 27.78%
20 - 34 Years 29.67% 23.83% 23.05%
35 - 39 Years 3.91% 6.08% 6.25%
40 - 49 Years 9.23% 12.56% 12.78%
50 - 64 Years 14.47% 17.69% 17.73%
Age 65+ 19.04% 13.27% 12.41%
Median Age 30.91 34.68 34.36
Population 25+ by Education Level
2017 Estimate Population Age 25+ 9,085 98,355 241,301
Elementary (0-8) 1.72% 6.58% 9.00%
Some High School (9-11) 2.49% 9.75% 10.79%
High School Graduate (12) 8.65% 21.72% 23.23%
Some College (13-15) 18.04% 22.95% 22.48%
Associate Degree Only 6.50% 7.11% 7.38%
Bachelors Degree Only 28.15% 16.71% 14.60%
Graduate Degree 33.29% 12.62% 9.49%
Population by Gender
2017 Estimate Total Population 16,235 152,837 377,465
Male Population 44.84% 48.55% 49.00%
Female Population 55.16% 51.45% 51.00%
EXCLUSIVELYLISTED BY:
Greg BassirpouFirst Vice President InvestmentsDirector, National Multi-Housing GroupNewport Beach OfficeTel: (949) 419-3234Cell: (714) [email protected]: CA 01365951
