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Rare Opportunity - 25 Units In Mill Valley
Joby TapiaSenior Investment Sales AdvisorO: (415) 329-4623M: (415) 254-4788F: (415) [email protected] BRE #01307460
Confidential Offering Memorandum presented by:
1052 Redwood Hwy, Mill Valley, CA94941
1052 Redwood Hwy | Mill Valley, CA 94941FOR SALE
5 Section 1Property Information
11 Section 2Location Information
16 Section 3Financial Analysis
20 Section 4Sales Comparables
25 Section 5Demographics
Table of
Contents
Confidentiality &Disclosure Agreement
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.
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1PROPERTYINFORMATION
6
Property
DescriptionProperty Overview
Presenting the Sunset Apartments, a rare opportunity toacquire a 25 unit property in desirable Mill Valley, availablefor the first time in nearly 20 years. The subject propertyprovides a relaxing home for the residents with views ofMt. Tam and a refreshing pool to dip into on warmsummer afternoons. Stable tenancy with low vacancytranslates into a solid investment for years to come.
Location Overview
Mill Valley is located 10 miles north of San Francisco inSouthern Marin County, at the base of the iconic MountTamalpais. Its zip code (94941) is one of the mostdesirable housing locations in the Bay Area for higherincome commuters. Mill Valley offers a convenientlocation near Hwy. 101, providing ready access to SanFrancisco, Napa Valley and the East Bay. Mill Valley offerssuperior quality of life with abundant recreational activities(especially hiking and cycling), restaurants and hotels. Theschools are part of the highly rated Mill Valley SchoolDistrict.
1 PROPERTY INFORMATION
Property
DetailsPROPERTY NAME: The Sunset Apartments
PROPERTY ADDRESS: 1052 Redwood Hwy
Mill Valley, CA 94941
APN: 034-071-09
LOT SIZE: 28,348 SF
BUILDING SIZE: 12,100 SF
BUILDING CLASS:
ZONING: R3, Mill Valley
PARKING SPACES: 25
PARKING RATIO: 1:1
YEAR BUILT: 1960
NUMBER OF STORIES: 2
FOUNDATION: Concrete Slab
WALLS: Stucco
NUMBER OF UNITS: 25
ROOF: Flat Composite
1 PROPERTY INFORMATION
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8
HighlightsComplete
Property Highlights
• Relaxing pool area just outside front doors
• Rental upside in hot S. Marin Market
• Opportunity to increase income with RUBSimplementation
• Easy Access to Hwy. 101 and Golden Gate Transit
• 3 blocks from Tiburon Open Space Preserve hikingarea
1 PROPERTY INFORMATION
ExecutiveSummary
Property Overview
Presenting the Sunset Apartments, a rare opportunity to acquirea 25 unit property in desirable Mill Valley, available for the firsttime in nearly 20 years. The subject property provides a relaxinghome for the residents with views of Mt. Tam and a refreshingpool to dip into on warm summer afternoons. Stable tenancy withlow vacancy translates into a solid investment for years to come.
Location Overview
Mill Valley is located 10 miles north of San Francisco in SouthernMarin County, at the base of the iconic Mount Tamalpais. Its zipcode (94941) is one of the most desirable housing locations in theBay Area for higher income commuters. Mill Valley offers aconvenient location near Hwy. 101, providing ready access toSan Francisco, Napa Valley and the East Bay. Mill Valley offerssuperior quality of life with abundant recreational activities(especially hiking and cycling), restaurants and hotels. Theschools are part of the highly rated Mill Valley School District.
Property Summary
Sale Price: $6,695,000Price/Unit: $267,800Price/SF: $553Number Of Units: 25Cap Rate: 4.75%GRM: 13.48Market Cap Rate: 5.72%Market GRM: 12.32NOI: $318,013
Lot Size: 28,348 SF
Building Size: 12,100 SF
Year Built: 1960
Renovated: 2015
Zoning: R3, Mill Valley
Market: San Francisco
Sub Market: Marin
Cross Streets: Tiburon Blvd.
1 PROPERTY INFORMATION
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PhotosAdditional
1 PROPERTY INFORMATION
2LOCATIONINFORMATION
Regional
Map
12
2 LOCATION INFORMATION
1052 Redwood Hwy
MapsLocation
13
2 LOCATION INFORMATION
Aerial
Map
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2 LOCATION INFORMATION
15
Site
Plan
2 LOCATION INFORMATION
3FINANCIAL ANALYSIS
Investment Overview CURRENT MARKET
Price $6,695,000 $6,695,000
Number of Units 25 25
Price per Unit $ 278,000 $267,800
Approximate Square Footage 12,100 12,100
Price per Square Foot $553 $553
GRM 13.48 12.32
CAP Rate 4.75% 5.72%
Operating Data CURRENT MARKET
Gross Scheduled Income $ 496,680 $ 543,600
Vacancy Cost (2.0%) - $ 10,126 - $ 11,628
Gross Operating Income $ 491,354 $ 569,772
Operating Expenses - $ 173,341 - $ 187,053
Net Operating Income $ 318,013 $ 382,719
Debt Service - $ 225,028 - $268,346
Pre-Tax Cash Flow $ 92,985 $ 114,373
Cash-on-Cash Return % (yr 1) 3.45% 5.94%
Principal Reduction (yr 1) + $ 72,294 + $ 86,211
Total Return (yr 1) $ 165,279 $ 200,584
Return on Investment % 6.13% 10.42%
Financing Data CURRENT MARKET
Loan Amount $4,000,000 $4,770,000
LTV 59.75% 71.25%
Interest Rate 3.850% 3.850%
Debt Service - $ 225,028 $ 268,346
Debt Service Monthly $ 18,752 $ 22,362
Amortization 30 30
SummaryFinancial
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3 FINANCIAL ANALYSIS
Income Summary CURRENT MARKET
Rental Income $ 501,480 $ 543,600
RUBS (proposed) $ 0 $ 33,000
Laundry $ 4,800 $ 4,800
Vacancy ($ 10,126) ($ 11,628)
GROSS ANNUAL INCOME $ 496,354 $ 569,722
Expense Summary CURRENT MARKET
Insurance $ 4,500 $ 4,500
Maintenance $ 20,299 $ 30,000
Miscellaneous Parts $ 980 $ 5,000
Refuse $ 10,732 $ 10,732
PG&E $ 23,055 $ 23,055
Water $ 3,418 $ 3,409
NEW Taxes $ 85,902 $ 85,902
Special Assessments $ 18,205 $ 18,205
Reserves $ 6,250 $ 6,250
GROSS ANNUAL EXPENSES $ 173,341 $ 187,053
NET OPERATING INCOME $ 322,813 $ 382,719
Income &Expenses
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3 FINANCIAL ANALYSIS
UnitNumber
UnitBed
UnitBath
UnitSize (SF)
Current MonthlyRent
Current MonthlyRent/SF
Market MonthlyRent
Market MonthlyRent/SF CAM
101 1 1 600 $1,950 $3.25 $2,200 $3.67 -
102 1 1 550 $1,950 $3.55 $2,100 $3.82 -
103 1 1 550 $1,950 $3.55 $2,100 $3.82 -
104 1 1 550 $1,950 $3.55 $2,100 $3.82 -
105 1 1 550 $1,950 $3.55 $2,100 $3.82 -
106 0 1 300 $1,600 $5.33 $1,800 $6.00 -
107 0 1 300 $1,700 $5.67 $1,800 $6.00 -
108 0 1 300 $1,775 $5.92 $1,800 $6.00 -
109 0 1 300 $1,580 $5.27 $1,800 $6.00 -
110 0 1 300 $1,500 $5.00 $1,800 $6.00 -
201 0 1 300 $1,500 $5.00 $1,800 $6.00 -
202 0 1 300 $1,900 $6.33 $1,800 $6.00 -
203 0 1 300 $1,690 $5.63 $1,800 $6.00 -
204 0 1 300 $1,500 $5.00 $1,800 $6.00 -
205 0 1 300 $1,600 $5.33 $1,800 $6.00 -
206 0 1 300 $1,600 $5.33 $1,800 $6.00 -
207 0 1 300 $1,700 $5.67 $1,800 $6.00 -
208 0 1 300 $1,700 $5.67 $1,800 $6.00 -
209 0 1 300 $1,600 $5.33 $1,800 $6.00 -
210 0 1 300 $1,700 $5.67 $1,800 $6.00 -
211 0 1 300 $0 $0.00 $500 $1.67 -
212 0 1 300 $1,600 $5.33 $1,800 $6.00 -
213 0 1 300 $1,700 $5.67 $1,800 $6.00 -
214 0 1 300 $1,650 $5.50 $1,800 $6.00 -
215 0 1 300 $1,580 $5.27 $1,800 $6.00 -
Totals/Averages 8,800 $40,925 $4.65 $45,300 $5.38 -
RentRoll
3 FINANCIAL ANALYSIS
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4SALES COMPARABLES
SalesComparables
SUBJECT PROPERTY
1052 Redwood Hwy | Mill Valley, CA 94941
$6,695,000Sale Price: 1960Year Built:
12,100 SFBuilding SF: $553.31Price PSF:
25No. Units: $267,800Price / Unit:
13.48GRM: 4.75%Cap:
$318,013NOI:
30 CENTRAL CT.30 Central Ct. | Mill Valley, CA 94941
$3,317,700Sale Price: 26,471 SFLot Size:
1964Year Built: 9,380 SFBuilding SF:
$353.70Price PSF: 12No. Units:
$276,475Price / Unit: 3.28%CAP:
02/06/2015Closed: 100%Occupancy:
15.82GRM: $109,536NOI:
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1
CORTEBELLA APARTMENTS1441 Casa Buena Dr. | Corte Maders, CA 94925
$10,650,000Sale Price: 151,589 SFLot Size:
1961Year Built: 30,480 SFBuilding SF:
$349.41Price PSF: 32No. Units:
$332,812Price / Unit: 3.80%CAP:
09/30/2015Closed: 95%Occupancy:
11.70GRM: $4,047,000NOI:
2
2
52-67 LOWER VIA CASITAS52-67 Lower Via Casitas | Greenbrae, CA 94904
$5,500,000Sale Price: 28,105 SFLot Size:
1962Year Built: 13,875 SFBuilding SF:
$396.40Price PSF: 16No. Units:
$343,750Price / Unit: 3.70%CAP:
05/11/2015Closed: 100%Occupancy:
15.36GRM: $211,450NOI:
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3
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4 SALES COMPARABLES
SalesComparables
833 BRIDGEWAY833 Bridgeway | Sausalito, CA 94965
$4,300,000Sale Price: 4,426 SFLot Size:
1965Year Built: 5,000 SFBuilding SF:
$860.00Price PSF: 7No. Units:
$614,285Price / Unit: 3.56%CAP:
10/30/2015Closed: 100%Occupancy:
18.60GRM: $167,722NOI:
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4 SALES COMPARABLES
SummarySales Comparables
Subject Property Price Bldg. SF Price/SF Price/Unit CAP GRM # Of Units
The Sunset Apartments1052 Redwood HwyMill Valley, CA 94941
$6,695,000 12,100 SF $553.31 $267,800 4.75% 13.48 25
Sale Comps Price Bldg. SF Price/SF Price/UNIT CAP GRM # Of Units Close
130 Central Ct.30 Central Ct.
Mill Valley, CA 94941$3,317,700 9,380 SF $353.70 $276,475 3.28% 15.82 12 02/06/2015
2Cortebella Apartments
1441 Casa Buena Dr.Corte Maders, CA 94925
$10,650,000 30,480 SF $349.41 $332,812 3.80% 11.70 32 09/30/2015
352-67 Lower Via Casitas52-67 Lower Via CasitasGreenbrae, CA 94904
$5,500,000 13,875 SF $396.40 $343,750 3.70% 15.36 16 05/11/2015
4833 Bridgeway833 Bridgeway
Sausalito, CA 94965$4,300,000 5,000 SF $860.00 $614,285 3.56% 18.60 7 10/30/2015
Totals/Averages Price Bldg. SF Price/SF Price/Unit CAP GRM # Of Units
$5,941,925 14,684 SF $489.88 $391,830 3.59% 15.37 16.75
4 SALES COMPARABLES
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MapSales Comparables
1052 Redwood Hwy | Mill Valley, CA 94941Subject Property
1 30 Central Ct.Mill Valley, CA 94941
30 Central Ct.2 1441 Casa Buena Dr.
Corte Maders, CA 94925
Cortebella Apartments3 52-67 Lower Via Casitas
Greenbrae, CA 94904
52-67 Lower Via Casitas
4 833 BridgewaySausalito, CA 94965
833 Bridgeway
4 SALES COMPARABLES
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5DEMOGRAPHICS
26
Demographics
* Demographic data derived from 2010 US Census
Report
5 DEMOGRAPHICS
Population 1 Mile 3 Miles 5 MilesTOTAL POPULATION 7,890 61,714 117,273
MEDIAN AGE 46.9 45.1 43.5
MEDIAN AGE (MALE) 45.4 44.3 42.6
MEDIAN AGE (FEMALE) 48.0 45.7 44.3
Households & Income 1 Mile 3 Miles 5 MilesTOTAL HOUSEHOLDS 3,727 27,639 50,975
# OF PERSONS PER HH 2.1 2.2 2.3
AVERAGE HH INCOME $139,497 $148,955 $143,681
AVERAGE HOUSE VALUE $961,605 $956,123 $973,736
Ethnicity 1 Mile 3 Miles 5 Miles% HISPANIC 8.1% 6.1% 15.8%
Race 1 Mile 3 Miles 5 Miles% WHITE 82.2% 86.1% 82.8%
% BLACK 3.0% 4.1% 2.8%
% ASIAN 8.6% 6.5% 5.9%
% HAWAIIAN 0.0% 0.1% 0.2%
% INDIAN 0.4% 0.2% 0.3%
% OTHER 5.8% 3.1% 8.2%