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13-1100 Alderwood - San Leandro.indd
JOHN LEYVAS VINCE MCCARRIE 408.987.4166 408.982.8485 1. EXECUTIVE SUMMARYͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳP3 2. MARKET OVERVIEWͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳP4 3. BAY AREA MAPͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳP7 4. PROPERTY SUMMARYͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳP9 5. PROPERTY AMENITIESͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳP10 6. FLOORPLANͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳP12 7. SALES COMPARABLE MAP & SUMMARYͳͳͳͳͳͳͳͳͳͳͳͳP13 8. RENT COMPARABLE MAP & SUMMARYͳͳͳͳͳͳͳͳͳͳͳͳͳP16 9. C&C CAPABILITIESͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳP22 10. RESUMESͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳP26 11. MARKETING STRATEGY AND PLANͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳP28 12. PARCEL MAPͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳͳP33 Executive Summaryy THE INVESTMENT PROPERTY OVERVIEW The Alderwood Apartments offers qualified investors a rare opportunity to acquire a desirable income property in a core Bay Area loca on. Professional owners and managers have maintained the property with a long term apprecia on for the community. The community is seated in the heart of San Leandro, California adjacent to the new and celebrated REACH Ashland Community Center, it is also within walking distance to BART, Bayfair Mall and many shops and restaurants. Residents enjoy quick access to highways 580 and 880 which grant quick passage to the Oakland Metro and Greater East Bay Area employment centers. Alderwood’s 72 units are spread out on two parcels combining to make an expansive 2.89 Acre lot. With a variety of mature trees and complementary landscaping, the residents enjoy the park-like feel. The fitness and community rooms, pool and sauna serve as a beautiful centerpiece for this vibrant community. Families also enjoy the new children’s play area, as well as remodeled laundry facilities. PROPERTY ADDRESS 1435 163rd Avenue San Leandro, CA 94578 & 1480 162nd Avenue San Leandro, CA 94578 # of Units Unit Type SF EsƟmates 72 2 Bedroom / 1.5 Baths ±900 The 72 units are divided into seven two story buildings all offering 2 bedrooms and 1½ baths. 17+ of the units are fully upgraded with new fully electric kitchens, cabinetry, lighting countertops, vinyl flooring, ceiling fan, mirrored closet doors, new interior doors, blinds and wall to wall carpeting. Each unit has well laid out floor plans that emphasize the kitchen and family living spaces. Each unit’s private deck complements the spacious living area. Residents are provided 8’ x 12’ storage spaces along with two designated covered parking spaces. The property has also undergone a complete seismic upgrade. Market Overview BAY AREA SUMMARY EAST BAY, ALAMEDA COUNTY OVERVIEW The San Francisco Bay Area consists of nine counties and 101 cities, covering 6,923 square miles. The current population of nearly 7.4 million ranks the Bay Area as the sixthlargest metropolitan area in the country. It is among the world’s most innovative, competitive and diverse regional economies with highly educated workers. global influence in high-tech and biotech, proximity to the growing Pacific Rim economies, and world class universities. The region’s natural beauty, diverse cultural attractions, professional sports teams, active business conventions, and leading global position in the wine industry attract more than 16 million visitors annually and make the Bay Area a treasured place to live. The stunning natural beauty of the East Bay area stretches from the eastern shores of the azure waters of San Francisco Bay to the golden inland hills. The region encompasses the counties of Alameda and Contra Costa. The East Bay contributes significantly to the economic and demographic expansion of the Bay Area. It is the headquarters for world leaders in education, business and industry, including: The University of California, California State University East Bay Lawrence Livermore Laboratory, Ask. com, Kaiser Engineering, Clorox, Kaiser Permanente HMO, Chiron/Norvatis, Bayer. Since the mid-1990’s, as the high-tech economy outgrew Silicon Valley, the southern East Bay area has become an extension of the Tech Mecca, adding valuable employment to its already diverse economic base. In fact, the East Bay, especially Emeryville, Berkeley, Oakland and Alameda, has become a bio-tech industry hub. East Bay Employment The Bay Area boasts the highest paying jobs and the most educated workforce in the country. Since 2004, the area’s employment trends have shown signs of positive growth. Alameda County Employment The total number employed in Alameda County in 2007 was 719,400. The unemployment rate in Alameda County is below the state average at 4.8%. The three largest growth industries for 2002 - 2006 were financial activities, construction and education/health services. LOCAL HIGHLIGHTS ASHLAND, May 22, 2013 – Joined by hundreds of young people, Alameda County government officials and community leaders dedicated Wednesday, May 22 the opening of the REACH Ashland Youth Center, a $23 million facility in the unincorporated Ashland community. SAN LEANDRO San Leandro is located on the southeast side of the San Francisco Bay, approximately 21 miles southeast of San Francisco and 29 miles north of San Jose. Nestled in a central Alameda County location, San Leandro offers excellent proximity to shopping areas, educational institutions, recreational and cultural activities, employment centers, major airports, and the Bay Area Rapid Transit system. Transportation Two major freeways provide easy access to the greater Bay Area from San Leandro. Interstate 880 provides a direct link to San Jose to the south, and Oakland to the north. Interstate 580 connects San Leandro to the Tri-Valley and Contra Costa County/Tri-Valley to the north. State Highways 84, 92 and 238 provide access to nearby communities and bridges across the Bay. The Oakland International Airport is located just a short drive from the Property. The San Jose International Airport MAJOR EMPLOYERS Be s Spring Company CafePress.com California Op cal Leather, Inc. Coca-Cola Bo ling Company Con-Cise Contact Lens Co. Costco Wholesale Cummins West, Inc. Georgia Pacific Ghirardelli Chocolate Company Kra /General Foods, Inc. Kindred Hospital is located approximately 10 miles south of Fremont on Interstate 880. BART (Bay Area Rapid Transit) has two stations in San Leandro (Downtown San Leandro and Bayfair) connecting the City to San Francisco and the greater Bay Area. Employment Situated in a prime location perfectly suited for commercial and retail business, as well as foreign trade, San Leandro is experiencing steady and sustained economic growth. With a burgeoning local economy, a wide range of housing options, a professional work force, not to mention a long list of major industry employers, San Leandro is perfect for those who want to be centrally located in Alameda County. Companies like Coca Cola, Kraft/General Foods, Ghirardelli Chocolate Co., Otis Spunkmeyer, and Winterland Productions have chosen to call San Leandro home for these reasons. Future growth and a commitment to welcoming new business into the city will only mean more overall expansion in the years to come. Macy’s MDL Informa on Systems Mi Rancho Foods The North Face Office Depot OSI So ware O s Spunkmeyer Peterson Tractor & Power Systems Safeway Stores San Leandro Hospital Simmons Company Wachovia Bank (World Savings) Wyman Gordan Company SAN LEANDRO QUICK FACTS Area: 15 Sq. Miles Popula on: 79,452 Day me Work Popula on: 55,000 Median Income: $51,000 Median Home Price (June 2008): $394,000 Sources: City of San Leandro Website and DataQuick Real Estate News Bayy Area Map p Property p y Summaryy CONSTRUCTION SUMMARY Year of Completion: Rentable Building Area: Numbers of Buildings: Stories: Framing: Roof: Exterior Walls: Interior Walls: Windows: SITE SURVEY 1974 ±56,082 (Landvision) 7 Two Wood Pitched Composite Shingle Wood/Stucco Textured Drywall Single-Pane Sliding APN: Lot Size: HVAC: Utilities: Parking: 080-006-304-103 ±2.89 Acres / ±125,900 SF (Per Landvision) Electric Baseboard Heaters Individual Electric Meters Rub’s Program in Place Two Spaces per Unit One Covered One Tucked Under Property p y Amenities UNIT AMENITIES • Well-Appointed Kitchens • Frost Free Refrigerator • Dishwasher • Garbage Disposal • Built-in Microwave Oven • Hardwood Style Flooring • Large Private Balcony • Mirrored Closet Doors • Ceiling Fan • Window Coverings • Large Closets • 8’ x 12’ Storage Room COMMUNITY AMENITIES • Covered Parking • Fitness Center • Gate • Laundry • Onsite Maintenance • Onsite Management • Playground • Pool • Sauna • Storage Space Floorplan Walnut Creek LAFAYETTE 1 ALBANY BERKELEY ORINDA ALAMO MORAGA EMERYVILLE DIABLO BlackhawkCamino Tassajara PIEDMONT OAKLAND ALAMEDA 3 SAN RAMON DUBLIN 8 E LIVERMORE PLEASANTON 4 2 7 9 HAYWARD UNION CITY AE URLINGAME SUNOL Sa Sales S ales ess Comparable Co pa p rab ab e Map Map p&S Su Summary u ma y # 1 2 3 4 5 6 7 8 9 PROPERTY NAME Alderwood - San Leandro Bayview - Albany Montelena - Hayward Park Regent - Alameda Kimberley - Hayward Manchester - San Leandro Alpine - Hayward Hidden Glen - Livermore Continental - Castro Valley Oak Hills - Hayward YR. BUILT 1974 1986 1987 1952 1962 1963 1967 1967 1965 1972 UNITS 72 31 188 33 30 44 57 69 108 148 SALE DATE N/A 4/13 4/13 4/13 3/13 3/13 12/12 3/12 7/11 3/11 SALE PRICE TBD $6,500,000 $33,665,000 $4,200,000 $3,591,356 $4,900,000 $6,500,000 $11,000,000 $12,852,000 $18,500,000 PRICE/UNIT TBD $209,677 $179,069 $127,273 $119,712 $111,364 $114,035 $159,420 $119,000 $125,000 PRICE/SF TBD $206.81 $199.86 $141.36 $207.11 $145.92 $179.49 $227.48 $145.38 $126.80 CAP RATE TBD N/A 5.83% N/A N/A N/A 6.78% 4.79% 5.75% 6.00% DETAILED SALES COMPARABLES Alderwood 1435 163rd Ave San Leandro CA 94578 Units: 72 Year Built: 1974 Acres: 2.89 Sale Date Sale Price Price/Unit 8/1/2013 TBD TBD Bayview 820 Kains Ave Albany CA 94706 Units: 31 Year Built: 1986 Acres: 0.46 Units 72 Type 2/1.5 Price/SF TBD Units 1 30 Type 0/1 2/1 Sale Date Sale Price Price/Unit Price/SF 4/18/2013 $6,500,000 $209,677 $206.81 Montelena 655 W Tennyson Rd Hayward CA 94544 Units: 188 Year Built: 1987 Acres: 6.10 Units 12 36 32 84 24 Type 1/1 1/1 2/2 2/2 2/2 Sale Date Sale Price Price/Unit Price/SF 4/12/2013 $33,665,000 $179,069 $199.86 Park Regent 2110 Santa Clara Ave Alameda CA 94501 Units: 33 Year Built: 1952 Acres: 0.38 Units 7 22 4 Type 0/1 1/1 2/1 Sale Date Sale Price Price/Unit Price/SF 4/11/2013 $4,200,000 $127,273 $141.36 Kimberley 399 Schafer Rd Hayward CA 94544 Units: 30 Year Built: 1962 Acres: 1.31 Units 20 10 Type 1/1 2/1 Sale Date Sale Price Price/Unit Price/SF 3/28/2013 $3,591,356 $119,712 $207.11 SF Low 900 GRM TBD SF Low 450 875 GRM N/A SF Low 711 925 900 950 965 GRM N/A SF Low N/A N/A N/A GRM N/A SF Low N/A N/A GRM N/A SF High 900 Cap Rate TBD SF High 450 875 Cap Rate N/A SF High 711 925 900 950 965 Cap Rate 5.83 SF High N/A N/A N/A Cap Rate N/A SF High N/A N/A Cap Rate N/A DETAILED SALES COMPARABLES Manchester 1919 Manchester Rd San Leandro CA 94578 Units: 44 Year Built: 1963 Acres: 1.57 Units 16 27 1 Type 1/1 2/1 3/1 Sale Date Sale Price Price/Unit Price/SF 3/15/2013 $4,900,000 $111,364 $145.92 Alpine 1282 Mattox Rd Hayward CA 94541 Units: 57 Year Built: 1967 Acres: 3.15 Units 44 13 Type 1/1 2/1 SF Low 750 1000 1200 GRM N/A SF High 750 1000 1200 Cap Rate N/A SF Low 600 800 SF High 600 800 Sale Date Sale Price Price/Unit Price/SF GRM Cap Rate 12/21/2012 $6,500,000 $114,035 $179.49 9.52 6.78 Hidden Glen 1669 Catalina Ct Livermore CA 94550 Units: 69 Year Built: 1967 Acres: 3.74 Units 40 29 Type 1/1 2/1 SF Low 610 810 SF High 610 810 Sale Date Sale Price Price/Unit Price/SF GRM Cap Rate 3/27/2012 $11,000,000 $159,420 $227.48 11.45 4.79 Transaction completed by C&C Apartment Advisors Continental 22281 Center St Castro Valley CA 94546 Units: 108 Year Built: 1965 Acres: 3.04 Units 20 86 2 Type 1/1 2/2 3/2 SF Low 650 850 1100 SF High 650 850 1100 Sale Date Sale Price Price/Unit Price/SF GRM Cap Rate 7/29/2011 $12,852,000 $119,000 $145.38 10.24 5.75 Transaction completed by C&C Apartment Advisors Oak Hills 29831 Clearbrook Cir Hayward CA 94544 Units: 148 Year Built: 1972 Acres: 13.72 Units 24 45 18 45 9 7 Type 1/1 1/1 2/1 2/2 2/2 D 3/2 SF Low 802 836 1092 1064 1400 1320 SF High 802 836 1092 1064 1400 1320 Sale Date Sale Price Price/Unit Price/SF GRM Cap Rate 3/14/2011 $18,500,000 $125,000 $126.80 9.00 6.00 Lake Chabot Chabot Lake 1 7 5 10 San Leandro 6 4 2 1 11 8 9 ASHLAND A 3 Rent nt Comparable parable rable ab Map p&S Summary Summ mm maaary ryy # 1 1 2 3 4 5 6 7 8 9 10 11 PROPERTY ADDRESS Alderwood - San Leandro Belbrook St. Moritz Gardens The Willows Bayfair Woodchase Hamlet San Leandro Racquet Club Ashland Gardens Summerhill Terrace Parkside Commons Quail Run YR. BUILT 1974 1963 1964 1965 1976 1976 1980 1981 1985 1986 1987 1987 UNITS 72 86 149 121 135 186 145 254 64 102 300 104 AVG SF 900 750 932 1,044 724 720 741 725 824 844 805 885 AVG $ $1,367 $1,265 $1,508 $1,740 $1,254 $1,442 $1,648 $1,248 $1,378 $1,348 $1,519 $1,375 $/SF $1.71 $1.69 $1.62 $1.67 $1.73 $2.00 $2.22 $1.72 $1.67 $1.60 $1.89 $1.55 DETAILED RENT COMPARABLES 1. Alderwood 1435 163rd Ave San Leandro, CA 94578 Phone: (510) 317-5914 Year Built: 197 Survey Date 8/7/2013 Occupancy: 95% 2. 3. 4. 2/1.5 900 900 $1,465 Average SF 750 Type 1/1 2/1 2/2 750 850 950 750 850 950 $1,050 $1,395 $1,450 Average SF 932 Type 1/1 2/1 2/2 810 850 1025 $1,325 $1,475 $1,550 Average SF 121 1,044 2/1.5 3/2.5 $1,375 $1,475 $1,625 960 1200 $/SF $1.78 Avg $ $/SF $1,123 $1.50 $1,445 $1.70 $1,463 $1.54 $1.62 Avg $ $/SF $1,350 $1.67 $1,475 $1.74 $1,588 $1.55 Average Rent Average $/SF $1,740 SF Low SF High Rent Low Rent High 880 1200 Avg $ $1,367 $1.71 Average Rent Average $/SF $1,508 Total Units Units Type $1,195 $1,495 $1,475 SF Low SF High Rent Low Rent High 810 850 1025 $1.71 Average Rent Average $/SF SF Low SF High Rent Low Rent High 149 44 12 93 $1,695 $1,339 Total Units Units 68 53 SF Low SF High Rent Low Rent High 86 30 26 30 Average Rent Average $/SF $1,367 Total Units Units The Willows 700 Fargo Ave San Leandro, CA 94579 Phone: (510) 895-9022 Year Built: 1965 Survey Date 8/7/2013 Occupancy: 98% 900 72 St. Moritz Gardens 14744 Washington St San Leandro, CA 94578 Phone: (510) 357-1460 Year Built: 1964 Survey Date 8/7/2013 Occupancy: 96% Average SF 72 Units Type Belbrook 77 Estabrook St San Leandro, CA 94577 Phone: (510) 246-8879 Year Built: 1963 Survey Date 8/12/2013 Occupancy: 95% Total Units $1,425 $2,000 $1,650 $2,000 $1.67 Avg $ $/SF $1,538 $1.67 $2,000 $1.67 DETAILED RENT COMPARABLES 5. Bayfair 16077 Ashland Ave San Lorenzo, CA 94580 Phone: Year Built: 1976 Survey Date 8/12/2013 Occupancy: 95% 6. 7. 8. 32 32 61 61 1/1 2/1 55 40 50 660 865 $1,150 $1,355 720 476 648 676 851 476 648 676 851 $1,124 $1,398 $1,425 $1,648 Average SF 741 600 800 850 $1,249 $1,429 $1,654 Average SF 254 725 525 675 700 1075 $1,025 $1,225 $1,225 $1,550 Average SF 64 824 $1,045 $1,225 $1,290 $1,605 682 931 1003 $2.00 Avg $ $/SF $1,124 $1,398 $1,425 $1,648 $2.36 $2.16 $2.11 $1.94 $2.03 Avg $ $/SF $1,262 $2.10 $1,502 $1.88 $1,765 $2.08 $1.75 Avg $ $/SF $1,035 $1,225 $1,258 $1,578 $1.97 $1.81 $1.80 $1.47 Average Rent Average $/SF $1,378 SF Low SF High Rent Low Rent High 594 884 1003 $/SF Average Rent Average $/SF $1,268 Total Units 1/1 2/1 2TH $1,275 $1,575 $1,875 SF Low SF High Rent Low Rent High 525 675 700 1075 Avg $ $1,150 $1.83 $1,365 $1.64 Average Rent Average $/SF $1,501 Total Units 0/1 1/1 1/1 2/2 $1,124 $1,398 $1,425 $1,648 SF Low SF High Rent Low Rent High 600 800 850 $1.73 Average Rent Average $/SF SF Low SF High Rent Low Rent High 145 1/1 2/1 2/2 $1,150 $1,375 $1,442 Total Units Units Type 21 21 22 600 800 Average SF Units Type 56 60 85 53 SF Low SF High Rent Low Rent High 186 0/1 1/1 1/1 2/1 Average Rent Average $/SF $1,254 Total Units Units Type Ashland Gardens 16183 Ashland Ave San Leandro, CA 94580 Phone: (510) 278-4465 Year Built: 1985 Survey Date 8/12/2013 Occupancy: 724 Units Type San Leandro Racquet Club 2600 San Leandro Blvd San Leandro, CA 94578 Phone: (510) 357-7131 Year Built: 1981 Survey Date 8/12/2013 Occupancy: 95% 9. 70 65 Hamlet 1319 159th Ave San Leandro, CA 94578 Phone: (510) 278-8800 Year Built: 1980 Survey Date 8/12/2013 Occupancy: 94% Average SF 135 Units Type Woodchase 2795 San Leandro Blvd San Leandro, CA 94578 Phone: (510) 352-1110 Year Built: 1976 Survey Date 8/7/2013 Occupancy: 96% Total Units $1,025 $1,425 $1,500 $1,200 $1,500 $1,600 $1.67 Avg $ $/SF $1,113 $1.74 $1,463 $1.61 $1,550 $1.55 DETAILED RENT COMPARABLES 10. Summerhill Terrace 15275 Hesperian Blvd San Leandro, CA 94578 Phone: (510) 483-3612 Year Built: 1986 Survey Date 8/12/2013 Occupancy: 99% 2 44 25 31 Occupancy: 100% 844 0/1 1/1 2/1 2/2 60 80 78 80 2 440 624 832 907 440 635 843 1008 $1,099 $1,199 $1,450 $1,495 Average SF 805 616 630 885 972 1100 616 630 885 972 1100 $1,305 $1,350 $1,640 $1,685 $1,900 Average SF 885 $1,325 $1,365 $1,640 $1,685 $1,900 615 762 806 885 Avg $ $/SF $1,099 $1,199 $1,450 $1,495 $2.50 $1.90 $1.73 $1.56 $1.88 Avg $ $/SF $1,315 $1,358 $1,640 $1,685 $1,900 $2.13 $2.15 $1.85 $1.73 $1.73 Average Rent Average $/SF $1,375 SF Low SF High Rent Low Rent High 615 762 806 885 $1.60 Average Rent Average $/SF SF Low SF High Rent Low Rent High 104 1/1 2/1 2/1 2/2 $1,099 $1,199 $1,450 $1,495 $1,513 Total Units Units Type 40 32 8 24 SF Low SF High Rent Low Rent High 300 1/1 1/1 2/2 2TH 3/2 Average Rent Average $/SF $1,349 Total Units Units Type 12. Quail Run 1511 163rd Ave San Leandro, CA 94578 Phone: (510) 276-2693 Year Built: 1987 Survey Date 8/12/2013 Average SF 102 Units Type 11. Parkside Commons 900 143rd Ave San Leandro, CA 94578 Phone: (510) 895-1505 Year Built: 1987 Survey Date 8/12/2013 Occupancy: 96% Total Units $1,375 $1,375 $1.55 Avg $ $1,375 $1.55 Submarket Summary Avg. Occupancy: 96% Avg. Rent: $1,440 Avg. Rent Per SF: $/SF $1.79 MARKET VALUE ANALYSIS ExpenseDetails Category Owner'sActual Broker's Proforma ProformaPer Unit Proforma% ofGSI RealEstateTaxes SpecialAssessments OnͲSiteManagement $151,355 $23,937 $42,000 $174,201 $23,937 $42,000 $2,419 $332 $583 RentalAllowanceOnͲSite $Ͳ $Ͳ $Ͳ 0.00% IncludedinOnͲSitePay OffͲSiteManagement $42,302 $36,429 $506 2.76% Estimateat3.0% MaintenanceTeam $57,600 $57,600 $800 4.36% Actual2012/2013 InsuranceͲWorkman'sComp $4,685 $4,685 $65 0.35% Actual2012/2013 PayrollTaxes $10,000 $10,000 $139 0.76% Actual2012/2013 13.19% 1.81% 3.18% ProformaComments Newat1.14230% Actual2012/2013 EstimatesBasedonMarket Maintenance&Repairs $Ͳ $30,450 $423 2.31% EstimatesBasedon2012/2013 PestControl $1,200 $1,200 $17 0.09% EstimatesBasedonMarket Garbage $28,560 $28,560 $397 2.16% Actual2012/2013 PG&E $22,800 $22,800 $317 1.73% Actual2012/2013 Water $21,600 $21,600 $300 1.64% Actual2012/2013 Landscaping $Ͳ $Ͳ $Ͳ 0.00% IncludedinMaintenance PoolMaintenance $2,400 $2,400 $33 0.18% Actual2012/2013 GateMaintenance $750 $750 $10 0.06% Actual2012/2013 FitnessCenterMaintenance $500 $500 $7 0.04% Actual2012/2013 Insurance $29,949 $29,949 $416 2.27% Actual2012/2013 Legal $2,700 $2,700 $38 0.20% Estimate$100/Unit Advertising $Ͳ $1,500 $21 0.11% Estimate$125/Month Acounting $Ͳ $1,200 $17 0.09% Estimate$100/Unit Telephone $1,500 $1,200 $17 0.09% Actual2012/2013 Admin,Office,Dues&Licenses $Ͳ $300 $4 0.02% Actual2012/2013 ReplacementReserves $21,600 $14,800 $206 1.12% $200PerUnit TotalExpenses $465,438 $508,760 $7,066 38.53% Cornish & Careyy Commercial Newmark Knight g Frank Capabilities p CORPORATE OVERVIEW Cornish & Carey Commercial Newmark Knight Frank has over 220 offices worldwide in more than 40 countries and approximately 7,200 employees. Newmark has been a New York powerhouse since the 1920s while Cornish & Carey Commercial was founded in 1935 and is the dominant regional firm in Northern California serving the commercial real estate industry. The international anchor for the company is Knight Frank, founded in London in 1896 and became the original global commercial real estate company by establishing offices worldwide. Integrated Services Combined with Extensive Resources Cornish & Carey Commercial Newmark Knight Frank offers an integrated services platform for corporate, institutional, multi-national and local clients, with a single-source solution for every phase of occupying or owning a property. Proprietary research and access to multiple levels of expertise supports every client engagement and assignment. Client Focus & Fundamental Market Knowledge Cornish & Carey Commercial Newmark Knight Frank has consistently focused on developing and expanding its service lines in order to optimally meet the changing needs of its clients. The foundation for the majority of the firm’s service offerings is rooted in a fundamental knowledge of local market conditions including rental rate and occupancy trends, leasing advisory and transaction management. Strategic Planning & Portfolio Management Utilizing global reach, the company assists corporations in managing their real estate operations and portfolios by creating and executing long-and short-term strategic plans with the goals of reducing occupancy costs, increasing efficiency, and maximizing value. C&C APARTMENT ADVISORS C&C APARTMENT ADVISORS C&C Apartment Advisors is working closely with C&C sales professionals from other disciplines, to provide a premier level of service to institutional and private investors and John Leyvas 408.987.4166 [email protected] | Lic# 00941651 developers across Northern California and other markets that are relevant to our clients. Since 2000, our team has Vince McCarrie transacted over $1 billion in volume and over 10,000 units. 408.982.8485 [email protected] | Lic# 01845778 C&C INVESTMENT SALES Cornish & Carey’s Investment Group is a leader in Northern California investment property sales. Since 1998 the company has participated in nearly 2,200 investment sales transactions, representing buyers and sellers in office, R&D, industrial, multifamily and retail properties. Private and institutional investors can access a single resource to leverage equity and debt markets, 1031 exchanges, traditional buy/sell agreements or structured finance transactions. With more than 250 leasing specialists covering every submarket in the region, C&C’s local knowledge of market fundamental enables the Investment Group to properly position assets for sale or astutely guide investors on the buy side with the vital information necessary to complete favorable results for its clients. The company’s Marketing Services Group provides leading edge marketing strategies, support and superior collateral materials in every assignment undertaken by the Investment Group. REFERENCES Villa Padre - Fremont 118 Units John H. Pringle Lincoln Glen - Fremont 188 Units E&S Ring Management Corporation, Los Angeles, CA 90045 Fremont Square - Fremont 151 Units 310-337-5433 | [email protected] Clarendon Hills - Hayward 285 Units Hillcrest - Hayward 138 Units Ken Tersini Oak Hills - Hayward 148 Units KT Properties, Cupertino CA 95014 Hidden Glen - Livermore 69 Units 408-257-2100 | [email protected] 151 Lakeside Drive - Oakland 40 Units 175 Santa Rosa - Oakland 33 Units Ali Warner 244 Lakeside Dr. - Oakland 22 Units Greystar, San Francisco, CA 94105 315 Park View Terrace - Oakland 38 Units 415-293-8246 | [email protected] 528 Merritt - Oakland 25 Units Baywood Apartments - Oakland 77 Units Casa Loma - Oakland 45 Units PARTIAL TRANSACTION RESUME EAST BAY REGION Duel Brae Apts. - Oakland 32 Units Californian - Alameda 58 Units 66 Fairmount. - Oakland 63 Units Embassy Apts. - Alameda 30 Units Gilbert Towers Apts. - Oakland 70 Units 450 Units Lakeview Towers - Oakland 81 Units New Brighton Apts. - Albany 60 Units Lake Park Terrace - Oakland 40 Units 2451 Le Conte - Berkeley 24 Units Madison Park - Oakland 27 Units So. Shore Beach & Tennis Club Apts. - Alameda Continental - Castro Valley 108 Units Noble Tower Apartments - Oakland 195 Units Park Virginia - Concord 64 Units Park Bellevue Tower - Oakland 152 Units Villa Diablo Condominiums - Concord 48 Units Regency Tower Apartments - Oakland 178 Units Skyline Hills - Oakland 299 Units Del Norte Place - El Cerrito 147 Units Mediterranea - El Sobrante 50 Units The Essex on Lake Merritt - Oakland 270 Units EmeryBay Club Condominiums - Emeryville 425 Units Hacienda Commons - Pleasanton 212 Units Sycamore Commons - Fremont 118 Units Pacific Crest (Rafaela Garden Apts.) - Pinole Ashland Gardens - San Leandro 64 Units Bayfair Apartments - San Leandro 135 Units St Moretz - San Leandro 149 Units Linvale Townhomes - San Leandro 44 Units Summertime Terrace - San Leandro 102 Units Laurel Glen - Walnut Creek 22 Units The Willows - San Leandro 122 Units Snooty Fox - San Leandro 52 Units Terace Gardens - San Leandro 72 Units 42 Units PARTIAL TRANSACTIONS FOCUSED ON ALAMEDA COUNTY BENICIA CROCKETT BAY POINT PITTSBURG VINE HILL MARTINEZ HERCULES PINOLE PACHECO EL SOBRANTE ANTIOCH CONCORD PLEASANT HILL CLAYTON BR WALDON EL CERRITO WALNUT CREEK LAFAYETTE ALBANY ORINDA BERKELEY ALAMO MORAGA EMERYVILLE PIEDMONT OAKLAND ALAMEDA SAN FRANCISCO SAN RAMON CASTRO SAN LEANDRO VALLEY ASHLAND DUBLIN BRISBANE PLEASANTON CHERRYLAND LIVERMORE SOUTH SAN FRANCISCO HAYWARD A UNION CITY MILLBRAE BURLINGAME SUNOL HILLSBOROUGH FOSTER CITY FREMONT BELMONT REDWOOD CITY HALF MOON BAY EAST PALO ALTO WEST MENLO PARK MILPITAS PROFESSIONAL BACKGROUND JOHN H. LEYVAS, JR. Senior Vice President [email protected] 408.987.4166 Lic #00941651 Years of Experience 20 Years Areas of SpecializaƟon Apartment Brokerage Affordable Housing Land for Residen al Development Condo Conversions 1031 Tax Deferred Exchange John Leyvas joined Cornish & Carey Commercial’s Apartment Advisors Group at our Oakland office in 2010. In 1997, John H. Leyvas, Jr. and Richard Knutson cofounded Premier Apartment Advisors, formerly the East Bay office of Moison Investment Company. Mr. Leyvas joined Moison Investment Company in 1992. Prior to his associa on with Moison, he was employed as an investment broker with Grubb & Ellis. While at Grubb, he was a founding Board Member of the Northern California Apartment Council. He has successfully closed a number of transac ons with sales valued in excess of $1 billion and has closed more transac ons in his career than any other colleague in the Bay Area broker “Class of 1989.” Mr. Leyvas also worked with FORCE, LTD. Syndica on/Development Company in Oakland, California. He was responsible for office/apartment sales, iden fying target apartment markets, development of land sales and syndica on, including the 1989 development of the A.C. Transit Headquarters in Oakland, with an es mated value of over $10 million. Mr. Leyvas’ Professional and community service achievements include: • • • • • • • • Premier Apartment Advisors Founder / Moison Investment Company, Partner 1997-2009 San Leandro Boys and Girls Club Board of Directors Member 2001 to 2009 Eden Hospital Founda on Board Member 2007 to 2009 Moison Investment Company Top Salesman, 1993, 1996, 1997, 1998,1999, 2000, 2001 & 2002 Rental Housing Owner (RHO) Associa on (Associate Members) Vice President 1992; President 1993 & 1994 Tri-County Apartment Associa on Member 2000 to Present Government Rela ons Commi ee RHO Board of Directors Member 1993 to 1999 Grubb & Ellis Top Ten List 1990 (Investment brokers with the highest earnings for the year) EDUCATION Mr. Leyvas was awarded a Bachelor of Science in Business Finance from California State University at Hayward, California in 1986 with a concentra on of study in Finance and Real Estate. 2804 Mission College Blvd., Suite 120 Santa Clara, California PROFESSIONAL BACKGROUND Vince McCarrie joined Cornish & Carey Commercial Newmark Knight Frank’s Apartment Advisors Group in 2010. He specializes in the marke ng and sale of mul family proper es located throughout Northern California, with emphasis on the submarkets of Santa Clara and Alameda Coun es. VINCE D. MCCARRIE Senior Associate [email protected] 408.982.8485 Lic #01845778 Years of Experience 5 Years Prior to joining the firm, Mr. McCarrie was with Premier Apartment Advisors (formerly Moison Investment Company). Before joining Premier, Mr. McCarrie worked as a financial and organiza onal consultant to non-profit schools and churches. He also spent 10 years working as a high school administrator and educator. Mr. McCarrie was dis nguished as BACAL Coach of the Year as the head coach for both Boy’s Varsity Baseball and Girl’s Varsity Basketball. Mr. McCarrie is a member of the Silicon Valley Brokers’ Associa on, the Rental Housing Owners Associa on, Urban Land Ins tute, and the Bay Area Apartment Brokers’ Forum. Areas of SpecializaƟon Mul family Proper es Sales Land for Residen al Development Mobile Home Conversions 1031 Tax Deferred Exchange EDUCATION Mr. McCarrie holds an undergraduate degree in History and two Master of Arts degrees in English and Biblical/Historical Studies from California State University, Hayward. PERSONAL INFORMATION In his spare me he enjoys riding Dirt and Mountain bikes. 2804 Mission College Blvd., Suite 120 Santa Clara, California Marketing g Strategy gy and Plan Cornish & Carey NKF’s Apartment Advisors are uniquely qualified to successfully handle the disposition of the Alderwood Apartments in San Leandro, California. Listing Team has extensive experience spanning decades in representing Institutions, Pension Advisors, Developers and Private Capital in transactions involving unique multifamily assets. We have orchestrated some of the most notable sales of in the San Francisco Bay Area. To effectively market Alderwood, we will conduct a wellorganized and disciplined campaign to provide optimum market exposure of the property in its best light, with property information and market data that support the highest possible value in today’s environment. TARGET MARKETING STRATEGY We will target our marketing efforts aiming at these Buyer Profiles: 1. Institutional Investors and Advisors: Institutional Investors, including REITs and Pension Funds have stormed back into the market, bringing an appetite for larger core stabilized assets of recent vintage. Given the lack of inventory, their acquisition criteria are broadening, allowing them to acquire assets that are just outside of core locations and somewhat older than they would have accepted a year ago. Alderwood Park fits these expanding investment criteria. For Alderwood Park we will focus on the proximity to Silicon Valley. These firms are seeking predictable cash returns that are accretive to their earnings and dividends, with short-term growth potential. They may buy with modest leverage or close with cash and refinance out once the asset is stabilized to a new level. 2. Professional Investment Firms, These firms generally 5. Exchange Buyers: This is not a distinct category of pur- have large existing apartment portfolios, in-house manage- chaser, however, we are constantly on alert to identify ment capability and plenty of fresh capital. They nearly all exchange investors due to the urgency of their motivation. have allocated capital to acquire assets in the San Francisco We will communicate through all our networks to identify Bay Area. Given the stabilized nature of these assets and buyers who are in the midst of an exchange, including the the strong anticipated regional rent growth, we expect potential of finding a qualified buyer who intends to per- Alderwood Park to garner intense interest. form a reverse exchange. Knowing the source of a Buyer’s capital and the time-pressure they are under will assist us 3. Private Investors and Syndicators: These investors, in negotiating the best possible result for the Seller. We see including high-net worth individuals, have been most a constant stream of potential exchange buyers and know active in the mid-market recently. They will be strong con- how to best present the opportunity to them. tenders for Alderwood Park. They have plenty of equity and are modest leverage investors, sometimes requiring financing contingencies. While the yield requirements of this MARKETING CAMPAIGN investor category are above the institutional investors, we Once C&C NKF Apartment Advisors is appointed the will market to them in order to create the most active bid- Exclusive Agent to market the Property, the Marketing ding environment for Alderwood Park. Team will validate the information concerning the properties and our analysis of the local market area and assist in 4. Off-Shore Investors: With investors around the world implementing agreed-upon pre-sale recommendations. seeking safe havens for long-term capital preservation and We will finalize the Offering Announcements and the for- stable growth projections, we will address the markets in mal Offering Memoranda and forward to you for approval Europe, Asia and Middle East. Quite recently we have had prior to launch of marketing. The Marketing Team will two inquiries from Norway, for example. We will access approach the market with a multi-faceted campaign, these markets through Real Capital Markets, as well as developing marketing materials to address each of the through channels internal to Newmark Grubb Knight Frank. Buyer Profiles. Some Sellers require a signed Confidentiality Of all US markets, the San Francisco Bay Area is considered Agreement prior to distribution of the Offering globally to be among the most secure and promising Memorandum, which we will conduct according to your investment regions. Plus, everyone loves to visit San preference. Francisco. Direct Promotion to Qualified Buyers - We will target and MARKETING PROTOCOL rank investors according to those with the greatest demon- Screening of Prospective Purchasers - The Marketing Team strated ability to complete a transaction of this size and will qualify prospects to determine their desire, capacity, type. Qualified “first tier” investors will initially be con- and reliability for this particular investment. Parties that tacted directly and provided a digital or printed do not meet the qualifications will not be scheduled to tour Announcement. An Offering Memorandum will be person- the Properties. ally presented. A broad-based marketing approach will subsequently be implemented with the second tier of Site Visit by Prospective Purchasers - Property visits will be potential investors with digital and printed announce- personally conducted by a member of the Marketing Team ments. and coordinated with the Property Management staff by pre-set dates. We will develop a schedule for showings, Direct Digital Marketing – C&C NKF has a large proprietary then work closely with the on-site staff to put the Properties database of investors in each of the Buyer Profiles. We will in their best light and provide a consistent presentation to use email announcements to reach out to these prospects, each prospective buyer. usually with a telephone follow up to confirm receipt and determine the level of interest. Status Reports - The Marketing Team will submit regular status reports so that you will remain current on our mar- Digital Marketing Platform – To provide national and inter- keting efforts and all discussions with potential purchasers. national reach to our campaign, we intend to use Real We will keep you continually updated as to the market- Capital Markets. This service also provides a controlled- place’s response to the offerings. All written proposals will access document vault which will be used for marketing, be submitted in a timely manner, though the timing of your reporting and administering the transaction. response will be controlled by you. Bid Deadline - We expect to generate strong interest and numerous proposals from prospective investors. As a result, we will set a bid deadline at the end of the marketing period. Your objective of obtaining the highest price on the best terms in the shortest amount of time will be consistently in mind as we create a competitive atmosphere to generate the best offer from each party. PROPOSED MARKETING TIMELINE Our ultimate objective is the successful and timely closing of the transaction. We will remain actively involved through the closing including assistance with due diligence and financing approvals. We will negotiate with the Buyer to create the most predictable and advantageous closing schedule. An Anticipated Transaction Timeline follows: LISTING AND PRE-MARKETING MARKETING PROCESS • Rafy Lisng Agreement • Launch Primary Markeng • Submit Offering Memorandum to local and targeted buyers • Target Markeng to profiled and logical buyers • Follow up calls to determine level of buyer interest • Schedule and conduct showings • Send Announcements to next er of investors • Push to Buyers through RCM • Conduct showings • Finalize Offering Memorandum and Week 1 other markeng materials • Assemble Bid Package • Prepare LOI/PSA forms • Pre-sale preparaons • Arrange set showing calendar Weeks 2 - 7 CONTRACT NEGOTIATIONS BEST & FINAL • Bid Deadline • Receive, analyze and priorize offers • Negoate Best and Final Terms (You may prefer to respond to offers on receipt or call for offers on a pre-arranged Bid Date. We are very experienced with both formats.) • Interview top candidates, verify qualificaons • Pre-diligence Weeks 8 • Select buyer Week 9 • Execute Purchase Agreement • Organize and schedule due diligence • Begin financing applicaon CLOSING PROCESS DUE DILIGENCE & FINANCING • Finalize conngency removal • Due Diligence Disclosures Weeks 10 - 13 • Inspecons & 3rd Party Reports • Title, Legal, Books & Records Review • Complete all other disclosure and due diligence maers • Finalize financing • Work with escrow and set closing • Close escrow • Handle any post-closing details Ancipated Markeng and Transacon Time : 15 weeks from Launch Weeks 14 - 15 PRE-SALE RECOMMENDATIONS LISTING AND FEE PROPOSAL The Marketing Team recommends several items to prepare Exclusive Representation. Systematic control of the mar- before commencing the marketing campaign. These are: keting process is of paramount importance. Through exclusive representation, the marketing team will carefully dis- Continue to focus on high occupancy and consistently seminate consistent information to qualified buyers and increasing rental rates on turnover. Eliminate or minimize brokers. The investor will be confident of receiving accu- any lease concessions at the front of the lease term and rate materials and an equal opportunity to compete for the attempt to achieve Rent Targets we have recommended. investment. The Marketing Team will focus all of their skills Two lightly staged model units of different types would be and efforts to produce the best purchaser and then work beneficial to accommodate showings. with you toward the ultimate goal of a successful closing. • Complete current deck work & remove materials and Listing Term. We recommend an Exclusive Listing for Six equipment Months. • Freshen up landscaping Marketing costs. Many aspects of our program such as The Marketing Team will assemble a Bid Package, including Announcement Card, Offering Memoranda and advertising both mandatory and voluntary disclosures and standard can be very expensive. Cornish & Carey NKF is prepared to forms of Agreement. We will require that a buyer visit the expend whatever funds are necessary to properly market property and receive the Disclosure File prior to having the Properties without Seller reimbursement. This includes their bid considered. We will provide a list of disclosures the cost of marketing through Real Capital Markets. before we launch the marketing campaign so you may see reports we have already obtained. Fee Proposal. Commissions are negotiable by law and by practice. We are open and willing to discuss our fee pro- It is highly likely that a buyer will obtain third-party inspec- posal with you. tion reports as a part of its due diligence. The Seller should disclose all such reports in its possession, including any pest Representation. The Listing Team expects to represent control, structural evaluations and environmental reports. only the Seller. Any prospective purchaser may elect to Obtaining these reports in advance will allow us to antici- represent itself or hire and independently compensate its pate potential areas of renegotiation and bolster our stance own broker. In the event a dual agency is possible, this will of No Renegotiation resulting from the buyer’s inspections. be disclosed in writing at the earliest opportunity. Parcel Map JOHN LEYVAS VINCE MCCARRIE 408.987.4166 408.982.8485 [email protected] Lic# 00941651 [email protected] Lic# 01845778 13-1100.07/13
