3139 Williamsburg
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr., San Jose, CA 95117
Michael Shields, CCIM, CCRM
Erik Nielsen
Apartment / Investment Broker
Apartment Agent
408-354-7470
831-297-0461
[email protected]
[email protected]
Lic. 01327546
BRE 01907679
●
Offering Price: $2,120,000 ($1,070,000 - 3139 Williamsburg) ($1,050,000 - 3147 Williamsburg)
●
Priced Below Market - Value Add Opportunity! Desirable Unit Mix: (1) 3/2 & (3) 2/1 units each building
●
Upside Potential in Rents 21% in First Year Or Renovate and Raise to Market Level
●
Current Financials: 4.33% Cap Rate, 15.1 GRM Pro Forma Financials: 5.62% Cap Rate, 12.27 GRM
●
Offered for Sale Together or Individually
900 E. Hamilton Ave., Suite 100 Campbell, CA 95008 408-354-7470 (p) 866-354-7420 (f) www.siliconvalleymultifamily.com
Table of Contents
SECTION 1 - PORTFOLIO OVERVIEW - 8 UNITS
SECTION 2 - 3139 WILLIAMSBURG - 4 UNITS
SECTION 3 - 3147 WILLIAMSBURG - 4 UNITS
SECTION 4 - DEMOGRAPHICS
SECTION 5 - DISCLAIMER
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Portfolio Overview - 8
Real Estate Investment Details
ANALYSIS Analysis Date
May 2014
PROPERTY Property Property Address Year Built
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117 1962
PURCHASE INFORMATION Property Type Purchase Price Fair Market Value Units Total Rentable Sq. Ft. Resale Valuation Resale Expenses
FINANCIAL INFORMATION MultiFamily $2,120,000 $2,120,000 8 6,444 3.0% (annual appreciation) 6.0%
Down Payment Closing Costs Discount Rate
$742,000 $5,000 3.00%
LOANS Fixed
Debt $1,378,000
Term 30 years
Amortization 30 years
INCOME & EXPENSES Gross Operating Income Monthly GOI Total Annual Expenses Monthly Expenses
Rate 4.0%
Payment $6,579
LO Costs $13,780
CONTACT INFORMATION $140,478 $11,706 ($48,767) ($4,064)
Michael Shields, CCIM, CCRM 408-354-7470 [email protected] Lic. 01327546 Erik Nielsen 831-297-0461 [email protected] BRE 01907679
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions. page 4 of 62
Williamsburg Portfolio
Property Description
3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Value Add Opportunity In West San Jose 8 Units: (2) 3/2 Units & (6) 2/1 units These two fourplexes are ideally situated to be renovated, allowing the investor to capitalize on higher market rents offered in West San Jose. The two building consists of a very desirable unit mix of (2) 3/2 units and (6) 2/1 units. Demand and rents for these units are reaching record level highs in Silicon Valley. The building currently generates $144,600 annually and should effectively generate $172,200 annually at market level rents. Rents have not been raised on 7 of the 8 units in the last two years, allowing the new owner to increase rents up to 21% on these units and still be in compliance with San Jose Rent Control laws. If rents were to be raised to market levels, the Cap Rate would be 5.6% - high for fourplex units in Santa Clara County. Moreover, the laundry income for this building generates an average of $600 per month on equipment that transfers with the sale of the property. As is common for properties of this type, tenants pay individual utilities including electric, gas for heating, phone & cable. Owner pays taxes, insurance, maintenance, trash removal, landscaping, water & sewer, gas for hot water and common area electric. Built in 1962, the building is constructed in the classic garden-style, walk-up architecture. The two buildings total 6,444 sf in size, on a 17,952 sf lot. The units are large and the 3/2 units have large, private back yards. The carports (one space/unit) are attached, but not tucked under. There is some deferred maintenance and repairs required. The property has been priced to accommodate these repairs and is offered for sale on an “As-Is” basis. The two properties can be purchased separately or together.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 5 of 62
Williamsburg Portfolio
Property Photos
3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Property Photos
3139 Williamsburg
3147 Williamsburg
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 6 of 62
Annual Property Operating Data
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Description
Michael Shields, CCIM, CCRM 408-354-7470
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Rental Income Miscellaneous Income
$137,400
$141,522
$145,767
$150,140
$154,645
$159,284
$164,062
$168,984
$174,054
$179,276
$7,200
$7,200
$7,200
$7,200
$7,200
$7,200
$7,200
$7,200
$7,200
$7,200
GROSS SCHEDULED INCOME Turnover Vacancy
$144,600
$148,722
$152,967
$157,340
$161,845
$166,484
$171,262
$176,184
$181,254
$186,476
($4,122)
($4,246)
($4,373)
($4,504)
($4,639)
($4,779)
($4,922)
($5,070)
($5,222)
($5,378)
GROSS OPERATING INCOME
$140,478
$144,476
$148,594
$152,836
$157,205
$161,705
$166,341
$171,115
$176,032
$181,097
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($600)
($600)
($600)
($600)
($600)
($600)
($600)
($600)
($600)
($600)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($350)
($350)
($350)
($350)
($350)
($350)
($350)
($350)
($350)
($350)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
$91,711
$95,709
$99,827
$104,069
$108,438
$112,938
$117,574
$122,348
$127,265
$132,330
Expenses Property Taxes Insurance Utilities, Gas & Electric Utilities, Water & sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits TOTAL OPERATING EXPENSES NET OPERATING INCOME
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 7 of 62
Financial Indicators
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Description
Michael Shields, CCIM, CCRM 408-354-7470
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
15.10
15.12
15.14
15.17
15.19
15.21
15.22
15.24
15.26
15.28
Capitalization Rate
4.33%
4.51%
4.71%
4.91%
5.12%
5.33%
5.55%
5.77%
6.00%
6.24%
Cash On Cash Return b/t
1.68%
2.20%
2.74%
3.30%
3.88%
4.47%
5.08%
5.70%
6.35%
7.02%
Cash On Cash Return a/t
1.68%
2.20%
2.74%
3.30%
3.88%
4.47%
5.08%
5.70%
6.35%
7.02%
1.16
1.21
1.26
1.32
1.37
1.43
1.49
1.55
1.61
1.68
Gross Income per Sq. Ft.
$22.44
$23.08
$23.74
$24.42
$25.12
$25.84
$26.58
$27.34
$28.13
$28.94
Expenses per Sq. Ft.
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
23.81
23.50
23.21
22.93
22.66
22.41
22.18
21.95
21.74
21.53
Operating Expense Ratio
34.72%
33.75%
32.82%
31.91%
31.02%
30.16%
29.32%
28.50%
27.70%
26.93%
Loan To Value Ratio
62.00%
59.07%
56.21%
53.43%
50.71%
48.07%
45.48%
42.96%
40.50%
38.10%
Gross Rent Multiplier
Debt Coverage Ratio
Net Income Multiplier
Footnotes: b/t = before taxes; a/t = after taxes
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 8 of 62
Pro Forma Summary
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
UNIT MIX & ANNUAL SCHEDULED INCOME Type
Units
Actual
3 BR / 2 BA
2
$21,600
2 BR / 2 BA
6
$15,700
TOTALS
8
Total
Market
Total
$43,200
$25,200
$50,400
$94,200
$19,200
$115,200
$137,400
$165,600
ANNUALIZED INCOME Actual
INVESTMENT SUMMARY Price:
$2,120,000
Year Built:
1962
Units:
8
Price/Unit:
$265,000
RSF:
6,444
Price/RSF:
2
Parking Spaces:
Cap Rate:
4.33%
Market Cap Rate:
5.62%
GRM:
14.66
Market GRM:
12.27
FINANCING SUMMARY
Loan Type: Interest Rate: Term:
($4,968) $7,200 $167,832 ($48,767) $119,065 ($78,945) $40,120 $24,267 $64,387
Actual
Market
Property Taxes Insurance Utilities, Gas & Electric Utilities, Water & sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits
$25,161 $5,256 $5,100 $5,100 $1,800 $600 $4,200 $1,200 $350
$25,161 $5,256 $5,100 $5,100 $1,800 $600 $4,200 $1,200 $350
Total Expenses Expenses Per RSF Expenses Per Unit
$48,767 $7.57 $6,096
$48,767 $7.57 $6,096
$1,378,000 $742,000 Fixed 4% 30 years
Monthly Payment: DCR:
($4,122) $7,200 $140,478 ($48,767) $91,711 ($78,945) $12,765 $24,267 $37,032
ANNUALIZED EXPENSES
1.5/unit 305-02-037, -
Down Payment:
$165,600
17,952 sf
Floors:
Loan Amount:
Market
$137,400
$328.99
Lot Size:
APN:
Gross Potential Rent Less: Vacancy Misc. Income Effective Gross Income Less: Expenses Net Operating Income Debt Service Net Cash Flow after Debt Service Principal Reduction Total Return
$6,579 1.16
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 9 of 62
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
3139 Williamsburg - 4
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117 For more information contact:
Michael Shields, CCIM, CCRM Apartment / Investment Broker 408-354-7470 [email protected] Lic. 01327546
Erik Nielsen Apartment Agent 831-297-0461 [email protected] BRE 01907679
Phone: 408-354-7470
●
Fax: 866-354-7420
●
Offering Price: $1,070,000 Priced Below Market! Value Add Opportunity!
●
Upside Potential in Rents - 21% in First Year Or Renovate and Raise to Market Level
●
Current: Cap Rate 4.36%, GRM 14.62 Market: Cap Rate 5.67%, GRM 12.38
●
Desirable Unit Mix: (1) 3BR/2BA w/large Yard, (3) 2BR/1BA Carports, Storage, On-site Laundry is a Money Maker!
●
Offered for Sale with Adjacent Property, 3147 Williamsburg, or Separately
●
900 E. Hamilton Ave., Suite 100
●
Campbell, CA 95008
●
www.siliconvalleymultifamily.com
Table of Contents
SECTION 1 - PROPERTY OVERVIEW
SECTION 2 - FINANCIAL ANANLYSIS
SECTION 3 - COMPARABLES
SECTION 4 - DEMOGRAPHICS
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Property Overview
Real Estate Investment Details
ANALYSIS Analysis Date
May 2014
PROPERTY Property Property Address Year Built
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117 1962
PURCHASE INFORMATION Property Type Purchase Price Fair Market Value Units Total Rentable Sq. Ft. Resale Valuation Resale Expenses
FINANCIAL INFORMATION MultiFamily $1,070,000 $1,070,000 4 3,222 3.0% (annual appreciation) 6.0%
Down Payment Closing Costs LT Capital Gain Federal Tax Rate State Tax Rate Passive Loss Rules Discount Rate
$322,500 $2,500 20.00% 34.0% 9.4% Yes 3.00%
LOANS Fixed
Debt $752,500
Term 30 years
INCOME & EXPENSES Gross Operating Income Monthly GOI Total Annual Expenses Monthly Expenses
Amortization 30 years
Rate 4.0%
Payment $3,593
LO Costs $7,525
CONTACT INFORMATION $71,112 $5,926 ($24,502) ($2,042)
Michael Shields, CCIM, CCRM 408-354-7470 [email protected] Lic. 01327546 Erik Nielsen 831-297-0461 [email protected] BRE 01907679
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions.
4 units - 3139 Williamsburg
Executive Summary
3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
ACQUISITION COSTS Purchase Price, Points and Closing Costs Investment - Cash First Loan
$1,080,025 $332,525 $752,500
INVESTMENT INFORMATION Purchase Price Price per Unit Price per Sq. Ft. Income per Unit Expenses per Unit
$1,070,000 $267,500 $332.09 $18,300 ($6,126)
INCOME, EXPENSES & CASH FLOW Gross Scheduled Income Total Vacancy and Credits Operating Expenses Net Operating Income Debt Service Cash Flow Before Taxes
$73,200 ($2,088) ($24,502) $46,610 ($43,111) $3,499
Total Interest (Debt Service) Depreciation and Amortization Taxable Income (Loss) Tax Savings (Costs) Cash Flow After Taxes
($29,859) ($14,942) $1,809 ($785) $2,714
FINANCIAL INDICATORS Cash on Cash Return Before Taxes Optimal Internal Rate of Return (yr 10) Debt Coverage Ratio Capitalization Rate Gross Rent Multiplier Gross Income / Square Feet Gross Expenses / Square Feet Operating Expense Ratio
1.05% 8.47% 1.08 4.36% 14.62 $22.72 ($7.60) 34.46%
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Property Description
3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Value Add Opportunity In West San Jose Unit Mix: (1) 3/2 Unit; (3) 2/1 Units This fourplex is ideally situated to be renovated, allowing the investor to capitalize on higher market rents offered in West San Jose. The building consists of a very desirable unit mix of (1) 3/2 unit and (3) 2/1 units. Demand and rents for these units are reaching record level highs in Silicon Valley. The building currently generates $71,112 annually and should effectively generate $83,916 annually at market level rents. Rents have not been raised on most units in the last two years, allowing the new owner to increase rents up to 21% on 3 units and still be in compliance with San Jose Rent Control laws. If rents were to be raised to market levels, the Cap Rate would be 5.67% - high for a fourplex in Santa Clara County. Moreover, the laundry income for this building generates an average of $300 per month on equipment that transfers with the sale of the property. As is common for properties of this type, tenants pay individual utilities including electric, gas for heating, phone & cable. Owner pays taxes, insurance, maintenance, trash removal, landscaping, water & sewer, gas for hot water and common area electric. Built in 1962, the building is constructed in the classic garden-style, walk-up architecture. The building is 3,222 sf in size, on a 8,976 sf lot. The units are large and the 3/2 unit has a large, private back yard. The carports (one space/unit) are attached, but not tucked under. There is some deferred maintenance and repairs required. The property has been priced to accommodate these repairs and is offered for sale on an “As-Is” basis. This fourplex shares a gated front yard with the adjacent property, also under the same ownership. The adjacent property is also offered for sale. These properties can be purchased separately or together.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Unit Mix Report
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
UNIT MIXES Units
Type
1 1 1 1 4
Approx. SqFt Avg. Rents
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
UNIT MIX
1000 700 700 700 3,100
$1,800 $1,300 $1,400 $1,300
Monthly $1,800 $1,300 $1,400 $1,300 $5,800
Mkt Rents
Monthly
$2,100 $1,600 $1,600 $1,600
$2,100 $1,600 $1,600 $1,600 $6,900
UNIT MIX SQUARE FEET ● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
UNIT MIX INCOME
● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
UNIT MIX MARKET INCOME ● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Property Photos
3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Property Photos
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Maps and Aerials
3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Location Maps
Regional Map
Neighborhood Map
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Maps and Aerials
3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Aerial Map
Parcel Map
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Financial Ananlysis
Annual Property Operating Data
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
Rental Income Miscellaneous Income
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$69,600
$71,688
$73,839
$76,054
$78,335
$80,685
$83,106
$85,599
$88,167
$90,812
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
GROSS SCHEDULED INCOME General Vacancy
$73,200
$75,288
$77,439
$79,654
$81,935
$84,285
$86,706
$89,199
$91,767
$94,412
($2,088)
($2,151)
($2,215)
($2,282)
($2,350)
($2,421)
($2,493)
($2,568)
($2,645)
($2,724)
GROSS OPERATING INCOME
$71,112
$73,137
$75,223
$77,372
$79,585
$81,865
$84,213
$86,631
$89,122
$91,688
($12,699)
($12,826)
($12,954)
($13,084)
($13,215)
($13,347)
($13,480)
($13,615)
($13,751)
($13,889)
($2,628)
($2,707)
($2,788)
($2,872)
($2,958)
($3,047)
($3,138)
($3,232)
($3,329)
($3,429)
($2,550)
($2,627)
($2,705)
($2,786)
($2,870)
($2,956)
($3,045)
($3,136)
($3,230)
($3,327)
($2,550)
($2,627)
($2,705)
($2,786)
($2,870)
($2,956)
($3,045)
($3,136)
($3,230)
($3,327)
($900)
($927)
($955)
($983)
($1,013)
($1,043)
($1,075)
($1,107)
($1,140)
($1,174)
($300)
($309)
($318)
($328)
($338)
($348)
($358)
($369)
($380)
($391)
($2,100)
($2,163)
($2,228)
($2,295)
($2,364)
($2,434)
($2,508)
($2,583)
($2,660)
($2,740)
($600)
($618)
($637)
($656)
($675)
($696)
($716)
($738)
($760)
($783)
($175)
($175)
($175)
($175)
($175)
($175)
($175)
($175)
($175)
($175)
($24,502)
($24,978)
($25,465)
($25,965)
($26,477)
($27,002)
($27,540)
($28,091)
($28,656)
($29,236)
$46,610
$48,160
$49,758
$51,407
$53,108
$54,863
$56,673
$58,540
$60,466
$62,452
Expenses Taxes Insurance Utilities - Gas & Electric Utilities - Water & Sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits TOTAL OPERATING EXPENSES NET OPERATING INCOME
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Cash Flow Analysis
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
GROSS SCHEDULED INCOME General Vacancy Total Operating Expenses NET OPERATING INCOME Loan Payment
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$73,200
$75,288
$77,439
$79,654
$81,935
$84,285
$86,706
$89,199
$91,767
$94,412
($2,088)
($2,151)
($2,215)
($2,282)
($2,350)
($2,421)
($2,493)
($2,568)
($2,645)
($2,724)
($24,502)
($24,978)
($25,465)
($25,965)
($26,477)
($27,002)
($27,540)
($28,091)
($28,656)
($29,236)
$46,610
$48,160
$49,758
$51,407
$53,108
$54,863
$56,673
$58,540
$60,466
$62,452
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
$3,499
$5,049
$6,647
$8,297
$9,998
$11,752
$13,563
$15,430
$17,355
$19,342
1.05%
1.52%
2.00%
2.50%
3.01%
3.53%
4.08%
4.64%
5.22%
5.82%
$46,610
$48,160
$49,758
$51,407
$53,108
$54,863
$56,673
$58,540
$60,466
$62,452
($14,691)
($15,332)
($15,332)
($15,332)
($15,332)
($15,332)
($15,332)
($15,332)
($15,332)
($14,693)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($29,859)
($29,319)
($28,757)
($28,172)
($27,564)
($26,930)
($26,271)
($25,585)
($24,871)
($24,128)
NET CASH FLOW (b/t) Cash On Cash Return b/t NET OPERATING INCOME Depreciation Amortization Loan Interest
Year 2
TAXABLE INCOME (LOSS) Income Taxes
$1,809
$3,258
$5,418
$7,652
$9,962
$12,350
$14,819
$17,372
$20,012
$23,381
($785)
($1,414)
($2,351)
($3,321)
($4,323)
($5,360)
($6,432)
($7,540)
($8,685)
($10,147)
CASH FLOW (a/t) Cash On Cash Return a/t
$2,714
$3,635
$4,296
$4,976
$5,674
$6,393
$7,131
$7,890
$8,670
$9,194
0.82%
1.09%
1.29%
1.50%
1.71%
1.92%
2.14%
2.37%
2.61%
2.76%
Footnotes: b/t = before taxes;a/t = after taxes
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Financial Indicators
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Description
Michael Shields, CCIM, CCRM 408-354-7470
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
15.06
15.08
15.10
15.12
15.14
15.16
15.18
15.20
15.21
15.23
Capitalization Rate
4.36%
4.50%
4.65%
4.80%
4.96%
5.13%
5.30%
5.47%
5.65%
5.84%
Cash On Cash Return b/t
1.05%
1.52%
2.00%
2.50%
3.01%
3.53%
4.08%
4.64%
5.22%
5.82%
Cash On Cash Return a/t
0.82%
1.09%
1.29%
1.50%
1.71%
1.92%
2.14%
2.37%
2.61%
2.76%
1.08
1.12
1.15
1.19
1.23
1.27
1.31
1.36
1.40
1.45
Gross Income per Sq. Ft.
$22.72
$23.37
$24.03
$24.72
$25.43
$26.16
$26.91
$27.68
$28.48
$29.30
Expenses per Sq. Ft.
($7.60)
($7.75)
($7.90)
($8.06)
($8.22)
($8.38)
($8.55)
($8.72)
($8.89)
($9.07)
23.65
23.57
23.50
23.43
23.36
23.29
23.22
23.15
23.09
23.03
Operating Expense Ratio
34.46%
34.15%
33.85%
33.56%
33.27%
32.98%
32.70%
32.43%
32.15%
31.89%
Loan To Value Ratio
67.08%
63.91%
60.82%
57.81%
54.87%
52.01%
49.21%
46.48%
43.82%
41.23%
Gross Rent Multiplier
Debt Coverage Ratio
Net Income Multiplier
Footnotes: b/t = before taxes; a/t = after taxes
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Loan Analysis
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
LOAN 1 Debt Service Analysis Principal Payments Interest Payments Total Debt Service Principal Balance Analysis Beginning Principal Balance Principal Reductions Ending Principal Balance
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$13,252
$13,792
$14,354
$14,938
$15,547
$16,180
$16,840
$17,526
$18,240
$18,983
$29,859
$29,319
$28,757
$28,172
$27,564
$26,930
$26,271
$25,585
$24,871
$24,128
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$752,500
$739,248
$725,457
$711,103
$696,165
$680,618
$664,437
$647,598
$630,072
$611,832
$13,252
$13,792
$14,354
$14,938
$15,547
$16,180
$16,840
$17,526
$18,240
$18,983
$739,248
$725,457
$711,103
$696,165
$680,618
$664,437
$647,598
$630,072
$611,832
$592,849
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Pro Forma Summary
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
UNIT MIX & ANNUAL SCHEDULED INCOME Type
Units
Actual
Total
Market
Total
3 BR / 2 BA
1
$21,600
$21,600
$25,200
$25,200
2 BR / 1 BA
1
$15,600
$15,600
$19,200
$19,200
2 BR / 1 BA
1
$16,800
$16,800
$19,200
$19,200
2 BR / 1 BA
1
$15,600
$15,600
$19,200
$19,200
TOTALS
4
$69,600
$82,800
ANNUALIZED INCOME Actual
INVESTMENT SUMMARY Price:
$1,070,000
Year Built: Units:
1962 4
Price/Unit: RSF:
$267,500 3,222
Price/RSF:
$332.09
Lot Size:
8,976 sf
Floors:
2
Parking Spaces: APN:
305-02-037 4.36%
Market Cap Rate:
5.67%
GRM:
14.62
Market GRM:
12.38
FINANCING SUMMARY Loan Amount:
$752,500
Down Payment:
$322,500
Interest Rate: Term:
DCR:
Fixed
Market $82,800 ($2,484) $3,600 $83,916 ($23,274) $60,642 ($43,111) $17,531 $13,252 $30,783
ANNUALIZED EXPENSES Actual
Market
Taxes Insurance Utilities - Gas & Electric Utilities - Water & Sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits
$12,699 $2,628 $2,550 $2,550 $900 $300 $2,100 $600 $175
$12,699 $1,400 $2,550 $2,550 $900 $300 $2,100 $600 $175
Total Expenses Expenses Per RSF Expenses Per Unit
$24,502 $7.60 $6,126
$23,274 $7.22 $5,819
4% 30 years
Monthly Payment:
$69,600 ($2,088) $3,600 $71,112 ($24,502) $46,610 ($43,111) $3,499 $13,252 $16,751
1.5/unit
Cap Rate:
Loan Type:
Gross Potential Rent Less: Vacancy Misc. Income Effective Gross Income Less: Expenses Net Operating Income Debt Service Net Cash Flow after Debt Service Principal Reduction Total Return
$3,593 1.08
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Comparables
Sales Comparables
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Cap Rate
Gross Rent Multiplier
8%
24.0
7%
21.0
6%
18.0
5%
15.0
Avg. 16.271
Avg. 4%
4.151
12.0
3%
9.0
2%
6.0
1%
3.0
Subject
1
2
3
4
5
6
7
Subject
1
Price per Unit
2
3
4
5
6
7
Price per Sq. Ft.
$360,000
$384 Avg.
$315,000
Avg.
$336
$311,259
$331.14
$270,000
$288
$225,000
$240
$180,000
$192
$135,000
$144
$90,000
$96
$45,000
$48
Subject
1
2
3
4
5
6
7
Subject
1
2
3
4
5
6
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
7
4 units - 3139 Williamsburg
Sales Comparables
3139 Williamsburg Dr San Jose, CA 95117 S
Michael Shields, CCIM, CCRM 408-354-7470
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117 Sale Price
$1,070,000
# Units
Unit Type
Units
4
1
3 BR / 2 BA
Price/Unit
$267,500
1
2 BR / 1 BA
Price/SqFt
$332.09
1
2 BR / 1 BA
Cap Rate
4.36%
1
2 BR / 1 BA
Year Built
1962
GRM
14.62
NOTES (1)3BR/2BA, (3) 2BR/1BA Units Spacious Units On-site Laundry
1
1321 Jonathan st Santa Clara, CA 95050
Sale Date 3/22/2014
Sale Price
$1,435,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$358,750
3
Two Bedroom Two Bath
Price/SqFt
$364.77
Cap Rate
3.21%
Year Built
1976
GRM
18.4
NOTES Upgrades include copper plumb, Comp roof, ext. paint, driveway asphalt. 3br/2ba recent remodel -Kit & Ba. Granite counters/new appliances/carpet/linoleum/window coverings/toilets/sinks/ paint.
2
Bertini Ct Fourplex 3796 Bertini Ct San Jose, CA 95117
Sale Date 4/2/2014
Sale Price
$1,255,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$313,750
2
Two Bedroom One Bath
Price/SqFt
$309.27
Cap Rate
3.0%
Year Built
1976
GRM
19.4
NOTES similar unit mix
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Sales Comparables
3139 Williamsburg Dr San Jose, CA 95117 3
Michael Shields, CCIM, CCRM 408-354-7470
1414 Essex Way Campbell, CA 950117 Sale Price
Sale Date 2/11/2014
$1,250,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$312,500
1
Two Bedroom Two Bath
Price/SqFt
$318.23
2
Two Bedroom One Bath
Cap Rate
4.21%
Year Built
1967
GRM
16.9
NOTES Front unit has 3 br 2 ba. Other units are 2/2, 2/1, 2/1.
4
Fourplex in Campbell 3194 Moorpark Campbell, CA 95117
Sale Date 2/21/2014
Sale Price
$1,190,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$297,500
1
Two Bedroom Two Bath
Price/SqFt
$379.46
2
Two Bedroom One Bath
Cap Rate
4.61%
Year Built
1958
GRM
14.7
NOTES (1) 3/2 (1) 2/2 (2) 2/1
5
Campbell Fourplex 3685 Cape Cod Court Campbell, CA 95117
Sale Date 3/11/2014
Sale Price
$1,150,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$287,500
3
Two Bedroom One Bath
Price/SqFt
$320.87
Cap Rate
5.65%
Year Built
1964
GRM
13.0
NOTES (1)3/2 (3) 2/1
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Sales Comparables
3139 Williamsburg Dr San Jose, CA 95117 6
Michael Shields, CCIM, CCRM 408-354-7470
Fourplex 1307 Saratoga Ave 1307 Saratoga Ave San Jose, CA
Sale Date 8/6/2013
Sale Price
$1,210,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$302,500
2
Two Bedroom One Bath
Price/SqFt
$286.53
1
One Bedroom One Bath
Cap Rate
4.8%
Year Built
1968
GRM
14.0
$1,225,250
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$306,313
3
Two Bedroom One Bath
Price/SqFt
$338.84
Cap Rate
3.58%
Year Built
1964
GRM
17.5
NOTES Unit Mix: (1) 3/2 remodeled (2) 2/1.5 units
7
San Jose Fourplex on Auburn 405 Auburn Way San Jose, CA 95129 Sale Price
Sale Date 9/20/2013 NOTES Similar Unit mix & size.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Sales Comparables
3139 Williamsburg Dr San Jose, CA 95117
1
3139 Williamsburg Dr, San Jose, CA 95117 ($1,070,000)
A
1321 Jonathan st, Santa Clara, CA 95050 ($1,435,000)
B
3796 Bertini Ct, San Jose, CA 95117 ($1,255,000)
C
1414 Essex Way, Campbell, CA 950117 ($1,250,000)
D
3194 Moorpark, Campbell, CA 95117 ($1,190,000)
E
3685 Cape Cod Court, Campbell, CA 95117 ($1,150,000)
F
1307 Saratoga Ave, San Jose, CA ($1,210,000)
G
405 Auburn Way, San Jose, CA 95129 ($1,225,250)
Michael Shields, CCIM, CCRM 408-354-7470
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
3147 Williamsburg - 4
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117 For more information contact:
Michael Shields, CCIM, CCRM Apartment / Investment Broker 408-354-7470 [email protected] Lic. 01327546
Erik Nielsen Apartment Agent 831-297-0461 [email protected] BRE 01907679
Phone: 408-354-7470
●
Fax: 866-354-7420
●
Offering Price: $1,050,000 Priced Below the Market! Value Add Opportunity!
●
Upside Potential in Rents - 21% in First Year Or Renovate and Raise to Market Level
●
Current: Cap Rate 4.3%, GRM 14.71 Market: Cap Rate 5.8%, GRM 12.15
●
Desirable Unit Mix: (1) 3BR/2BA w/Large Yard, (3) 2BR/1BA Carports, Storage, On-site Laundry is a Money Maker!
●
Offered for Sale with 3139 Williamsburg or Separately.
●
900 E. Hamilton Ave., Suite 100
●
Campbell, CA 95008
●
www.siliconvalleymultifamily.com
Table of Contents
SECTION 1 - PROPERTY OVERVIEW
SECTION 2 - FINANCIAL ANANLYSIS
SECTION 3 - COMPARABLES
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Property Overview
Real Estate Investment Details
ANALYSIS Analysis Date
May 2014
PROPERTY Property Property Address Year Built
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117 1962
PURCHASE INFORMATION Property Type Purchase Price Fair Market Value Units Total Rentable Sq. Ft. Resale Valuation Resale Expenses
FINANCIAL INFORMATION MultiFamily $1,050,000 $1,050,000 4 3,222 3.0% (annual appreciation) 6.0%
Down Payment Closing Costs LT Capital Gain Federal Tax Rate State Tax Rate Passive Loss Rules Discount Rate
$322,500 $2,500 20.00% 34.0% 9.4% Yes 3.00%
LOANS Fixed
Debt $752,500
Term 30 years
Amortization 30 years
INCOME & EXPENSES Gross Operating Income Monthly GOI Total Annual Expenses Monthly Expenses
Rate 4.0%
Payment $3,593
LO Costs $7,525
CONTACT INFORMATION $69,366 $5,781 ($24,265) ($2,022)
Michael Shields, CCIM, CCRM 408-354-7470 [email protected] Lic. 01327546 Erik Nielsen 831-297-0461 [email protected] BRE 01907679
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions. page 4 of 23
4 units - 3147 Williamsburg
Executive Summary
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
ACQUISITION COSTS Purchase Price, Points and Closing Costs Investment - Cash First Loan
$1,060,025 $332,525 $752,500
INVESTMENT INFORMATION Purchase Price Price per Unit Price per Sq. Ft. Income per Unit Expenses per Unit
$1,050,000 $262,500 $325.88 $17,850 ($6,066)
INCOME, EXPENSES & CASH FLOW Gross Scheduled Income Total Vacancy and Credits Operating Expenses Net Operating Income Debt Service Cash Flow Before Taxes
$71,400 ($2,034) ($24,265) $45,101 ($43,111) $1,990
Total Interest (Debt Service) Depreciation and Amortization Taxable Income (Loss) Tax Savings (Costs) Cash Flow After Taxes
($29,859) ($14,993) $249 ($108) $1,882
FINANCIAL INDICATORS Cash on Cash Return Before Taxes Optimal Internal Rate of Return (yr 10) Debt Coverage Ratio Capitalization Rate Gross Rent Multiplier Gross Income / Square Feet Gross Expenses / Square Feet Operating Expense Ratio
0.60% 7.88% 1.05 4.30% 14.71 $22.16 ($7.53) 34.98%
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 5 of 23
4 units - 3147 Williamsburg
Property Description
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Value Add Opportunity In West San Jose Four Units: (1) 3/2 Unit & (3) 2/1 Units This fourplex is ideally situated to be renovated, allowing the investor to capitalize on higher market rents offered in West San Jose. The building consists of a very desirable unit mix of (1) 3/2 unit and (3) 2/1 units. Demand and rents for these units are reaching record level highs in Silicon Valley. The building currently generates $71,400 annually and should effectively generate $86,400 annually at market level rents. Rents have not been raised on most units in the last two years, allowing the new owner to increase rents up to 21% and still be in compliance with San Jose Rent Control laws. If rents were to be raised to market levels, the Cap Rate would be 5.8% - high for a fourplex in Santa Clara County. Moreover, the laundry income for this building generates an average of $300 per month on equipment that transfers with the sale of the property. As is common for properties of this type, tenants pay individual utilities including electric, gas for heating, phone & cable. Owner pays taxes, insurance, maintenance, trash removal, landscaping, water & sewer, gas for hot water and common area electric. Built in 1962, the building is constructed in the classic garden-style, walk-up architecture. The building is 3,222 sf in size, on a 8,976 sf lot. The units are large and the 3/2 unit has a large, private back yard. The carports (one space/unit) are attached, but not tucked under. There is some deferred maintenance and repairs required. The property has been priced to accommodate these repairs and is offered for sale on an “As-Is” basis. This fourplex shares a gated front yard with the adjacent property, also under the same ownership. The adjacent property is also offered for sale. These properties can be purchased separately or together.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 6 of 23
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
3147 Williamsburg Drive San Jose, CA 95117 Market: San Jose Metro Submarket:
Downtown
County:
Santa Clara
APN:
305-02-038
Location Highlights •
Significant Rent Growth in 2011 & 2012
•
Robust Rent Growth Project by economists
•
Low Vacancy Rate due to Strong Rental Demand
Location Overview
Michael Shields, CCIM, CCRM CADILLAC APARTMENTS I. PROPERTY INFORMATION 408-354-7470
The property is located in the City of San Jose, known as the "Capital of Silicon Valley." San Jose is the largest city in the San Francisco Bay Area and boasts a robust economy with employment growth that is among the strongest in the Country. San Jose is located in Santa Clara County, the largest county within the Bay Area with more than 34% of the region's total t employment. Over the coming years, population is expected to grow by 6.3%, and employment is expected to grow by 13.6% in a variety of fields including professional and business services (notably high technology), education services and health care se services.
Silicon Valley also has one of highest concentrations of highhigh technology, engineering, computer, and microprocessor companies in the world, resulting in strong employment in high paying fields elds with the highest average salary per worker ($98,430) iin n the state. Moreover, personal income in the county is also expected to grow by 22.7%. Silicon Valley also receives 50% - 60% of all Venture Capital funding nationwide. This is due in large part to a favorable business climate for start-ups, start the availabil availability ity of skilled labor, and an excellent secondary educational system. Area schools such as the University of California, Berkeley, Stanford University, San Jose State University, Santa Clara University, San Francisco State University, University of Californ California, ia, Santa Cruz, and California State University, East Bay pump thousands of engineering and computer science graduates into the local labor market every year. The multifamily rental market in Silicon Valley is expected to experience significant growth ove overr the coming years due to robust job growth, a young, mobile workforce, extraordinarily high single family housing prices, a chronic shortage of a affordable housing, and a chronically low development profile pro due to cost, permitting and land availability. These factors have caused rents to rise dramatically in 2011, with significant rent increases projected by local and national economists over the next five years. Moreover, institutional investors for large multifamily properties consisting of 100 or more units have reentered the market in high numbers and are reinvesting at an extremely aggressive rate, paying on average a 5.4% cap rate – one of the lowest rates for multifamily properties nationwide.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 7 of 23
Unit Mix Report
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
UNIT MIXES Units
Type
1 1 1 1 4
Approx. SqFt Avg. Rents
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
1000 700 700 700 3,100
$1,800 $1,200 $1,350 $1,300
UNIT MIX
Monthly $1,800 $1,200 $1,350 $1,300 $5,650
Mkt Rents
Monthly
$2,100 $1,600 $1,600 $1,600
$2,100 $1,600 $1,600 $1,600 $6,900
UNIT MIX SQUARE FEET ● ● ● ●
● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
UNIT MIX INCOME
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
UNIT MIX MARKET INCOME ● ● ● ●
● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 8 of 23
4 units - 3147 Williamsburg
Property Photos
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Property Photos
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 9 of 23
4 units - 3147 Williamsburg
Maps and Aerials
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Location Maps
Regional Map
Neighborhood Map
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 10 of 23
4 units - 3147 Williamsburg
Maps and Aerials
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Aerial & Parcel Maps
Aerial Map
Parcel Map
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 11 of 23
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Financial Ananlysis
Annual Property Operating Data
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
Rental Income Miscellaneous Income
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$67,800
$69,834
$71,929
$74,087
$76,309
$78,599
$80,957
$83,385
$85,887
$88,464
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
GROSS SCHEDULED INCOME Turnover Vacancy
$71,400
$73,434
$75,529
$77,687
$79,909
$82,199
$84,557
$86,985
$89,487
$92,064
($2,034)
($2,095)
($2,158)
($2,223)
($2,289)
($2,358)
($2,429)
($2,502)
($2,577)
($2,654)
GROSS OPERATING INCOME
$69,366
$71,339
$73,371
$75,464
$77,620
$79,841
$82,128
$84,484
$86,910
$89,410
($12,462)
($12,587)
($12,712)
($12,840)
($12,968)
($13,098)
($13,229)
($13,361)
($13,495)
($13,630)
($2,628)
($2,707)
($2,788)
($2,872)
($2,958)
($3,047)
($3,138)
($3,232)
($3,329)
($3,429)
($2,550)
($2,627)
($2,705)
($2,786)
($2,870)
($2,956)
($3,045)
($3,136)
($3,230)
($3,327)
($2,550)
($2,627)
($2,705)
($2,786)
($2,870)
($2,956)
($3,045)
($3,136)
($3,230)
($3,327)
($900)
($927)
($955)
($983)
($1,013)
($1,043)
($1,075)
($1,107)
($1,140)
($1,174)
($300)
($309)
($318)
($328)
($338)
($348)
($358)
($369)
($380)
($391)
($2,100)
($2,163)
($2,228)
($2,295)
($2,364)
($2,434)
($2,508)
($2,583)
($2,660)
($2,740)
($600)
($618)
($637)
($656)
($675)
($696)
($716)
($738)
($760)
($783)
($175)
($180)
($186)
($191)
($197)
($203)
($209)
($215)
($222)
($228)
($24,265)
($24,744)
($25,234)
($25,737)
($26,252)
($26,781)
($27,322)
($27,877)
($28,446)
($29,030)
$45,101
$46,595
$48,137
$49,727
$51,368
$53,060
$54,806
$56,607
$58,464
$60,380
Expenses Property Taxes Insurance Utilities - Gas & Electric Utilities - Water & Sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits TOTAL OPERATING EXPENSES NET OPERATING INCOME
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 13 of 23
Cash Flow Analysis
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
GROSS SCHEDULED INCOME Turnover Vacancy Total Operating Expenses NET OPERATING INCOME Loan Payment
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$71,400
$73,434
$75,529
$77,687
$79,909
$82,199
$84,557
$86,985
$89,487
$92,064
($2,034)
($2,095)
($2,158)
($2,223)
($2,289)
($2,358)
($2,429)
($2,502)
($2,577)
($2,654)
($24,265)
($24,744)
($25,234)
($25,737)
($26,252)
($26,781)
($27,322)
($27,877)
($28,446)
($29,030)
$45,101
$46,595
$48,137
$49,727
$51,368
$53,060
$54,806
$56,607
$58,464
$60,380
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
$1,990
$3,485
$5,026
$6,617
$8,257
$9,950
$11,695
$13,496
$15,354
$17,269
0.60%
1.05%
1.51%
1.99%
2.48%
2.99%
3.52%
4.06%
4.62%
5.19%
$45,101
$46,595
$48,137
$49,727
$51,368
$53,060
$54,806
$56,607
$58,464
$60,380
($14,742)
($15,385)
($15,385)
($15,385)
($15,385)
($15,385)
($15,385)
($15,385)
($15,385)
($14,744)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($29,859)
($29,319)
($28,757)
($28,172)
($27,564)
($26,930)
($26,271)
($25,585)
($24,871)
($24,128)
NET CASH FLOW (b/t) Cash On Cash Return b/t NET OPERATING INCOME Depreciation Amortization Loan Interest
Year 2
TAXABLE INCOME (LOSS) Income Taxes CASH FLOW (a/t) Cash On Cash Return a/t
$249
$1,640
$3,744
$5,919
$8,168
$10,494
$12,899
$15,386
$17,957
$21,258
($108)
($712)
($1,625)
($2,569)
($3,545)
($4,554)
($5,598)
($6,677)
($7,793)
($9,226)
$1,882
$2,773
$3,401
$4,048
$4,712
$5,395
$6,097
$6,819
$7,560
$8,043
0.57%
0.83%
1.02%
1.22%
1.42%
1.62%
1.83%
2.05%
2.27%
2.42%
Footnotes: b/t = before taxes;a/t = after taxes
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 14 of 23
Financial Indicators
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Description
Michael Shields, CCIM, CCRM 408-354-7470
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
15.15
15.17
15.19
15.21
15.23
15.25
15.27
15.29
15.31
15.33
Capitalization Rate
4.30%
4.44%
4.58%
4.74%
4.89%
5.05%
5.22%
5.39%
5.57%
5.75%
Cash On Cash Return b/t
0.60%
1.05%
1.51%
1.99%
2.48%
2.99%
3.52%
4.06%
4.62%
5.19%
Cash On Cash Return a/t
0.57%
0.83%
1.02%
1.22%
1.42%
1.62%
1.83%
2.05%
2.27%
2.42%
1.05
1.08
1.12
1.15
1.19
1.23
1.27
1.31
1.36
1.40
Gross Income per Sq. Ft.
$22.16
$22.79
$23.44
$24.11
$24.80
$25.51
$26.24
$27.00
$27.77
$28.57
Expenses per Sq. Ft.
($7.53)
($7.68)
($7.83)
($7.99)
($8.15)
($8.31)
($8.48)
($8.65)
($8.83)
($9.01)
23.98
23.91
23.84
23.77
23.70
23.63
23.56
23.50
23.43
23.37
Operating Expense Ratio
34.98%
34.68%
34.39%
34.10%
33.82%
33.54%
33.27%
33.00%
32.73%
32.47%
Loan To Value Ratio
68.35%
65.12%
61.98%
58.91%
55.91%
53.00%
50.15%
47.37%
44.66%
42.01%
Gross Rent Multiplier
Debt Coverage Ratio
Net Income Multiplier
Footnotes: b/t = before taxes; a/t = after taxes
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 15 of 23
Loan Analysis
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
LOAN 1 Debt Service Analysis Principal Payments Interest Payments Total Debt Service Principal Balance Analysis Beginning Principal Balance Principal Reductions Ending Principal Balance
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$13,252
$13,792
$14,354
$14,938
$15,547
$16,180
$16,840
$17,526
$18,240
$18,983
$29,859
$29,319
$28,757
$28,172
$27,564
$26,930
$26,271
$25,585
$24,871
$24,128
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$752,500
$739,248
$725,457
$711,103
$696,165
$680,618
$664,437
$647,598
$630,072
$611,832
$13,252
$13,792
$14,354
$14,938
$15,547
$16,180
$16,840
$17,526
$18,240
$18,983
$739,248
$725,457
$711,103
$696,165
$680,618
$664,437
$647,598
$630,072
$611,832
$592,849
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 16 of 23
Pro Forma Summary
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
UNIT MIX & ANNUAL SCHEDULED INCOME Type
Units
Actual
Total
Market
Total
3 BR / 2 BA
1
$21,600
$21,600
$25,200
$25,200
2 BR / 1 BA
1
$14,400
$14,400
$19,200
$19,200
2 BR / 1 BA
1
$16,200
$16,200
$19,200
$19,200
2 BR / 1 BA
1
$15,600
$15,600
$19,200
$19,200
TOTALS
4
$67,800
$82,800
ANNUALIZED INCOME Actual
INVESTMENT SUMMARY Price:
$1,050,000
Year Built: Units:
1962 4
Price/Unit: RSF:
$262,500 3,222
Price/RSF:
$325.88
Lot Size:
8,976 sf
Floors:
2
Parking Spaces: APN:
305-02-038 4.3%
Market Cap Rate:
5.8%
GRM:
14.71
Market GRM:
12.15
FINANCING SUMMARY Loan Amount:
$752,500
Down Payment:
$322,500
Interest Rate: Term:
DCR:
Fixed
Market $82,800 ($2,484) $3,600 $83,916 ($23,037) $60,879 ($43,111) $17,768 $13,252 $31,020
ANNUALIZED EXPENSES Actual
Market
Property Taxes Insurance Utilities - Gas & Electric Utilities - Water & Sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits
$12,462 $2,628 $2,550 $2,550 $900 $300 $2,100 $600 $175
$12,462 $1,400 $2,550 $2,550 $900 $300 $2,100 $600 $175
Total Expenses Expenses Per RSF Expenses Per Unit
$24,265 $7.53 $6,066
$23,037 $7.15 $5,759
4% 30 years
Monthly Payment:
$67,800 ($2,034) $3,600 $69,366 ($24,265) $45,101 ($43,111) $1,990 $13,252 $15,242
1.5/unit
Cap Rate:
Loan Type:
Gross Potential Rent Less: Vacancy Misc. Income Effective Gross Income Less: Expenses Net Operating Income Debt Service Net Cash Flow after Debt Service Principal Reduction Total Return
$3,593 1.05
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 17 of 23
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Comparables
Sales Comparables
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Cap Rate
Gross Rent Multiplier
8%
24.0
7%
21.0
6%
18.0
5%
15.0
Avg. 16.271
Avg. 4%
12.0
4.151
3%
9.0
2%
6.0
1%
3.0
Subject
1
2
3
4
5
6
7
Subject
1
Price per Unit
2
3
4
5
6
7
Price per Sq. Ft.
$360,000
$384 Avg.
$315,000
Avg.
$336
$311,259
$331.14
$270,000
$288
$225,000
$240
$180,000
$192
$135,000
$144
$90,000
$96
$45,000
$48
Subject
1
2
3
4
5
6
7
Subject
1
2
3
4
5
6
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 19 of 23
7
4 units - 3147 Williamsburg
Sales Comparables
3147 Williamsburg Dr San Jose, CA 95117 S
Michael Shields, CCIM, CCRM 408-354-7470
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117 Sale Price
$1,050,000
# Units
Unit Type
Units
4
1
3 BR / 2 BA
Price/Unit
$262,500
1
2 BR / 1 BA
Price/SqFt
$325.88
1
2 BR / 1 BA
Cap Rate
4.3%
1
2 BR / 1 BA
Year Built
1962
GRM
14.71
NOTES UPSIDE RENT POTENTIAL! Carport, Double-Paned Windows, Close to shopping and commuter routes.
1
1321 Jonathan st Santa Clara, CA 95050
Sale Date 3/22/2014
Sale Price
$1,435,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$358,750
3
Two Bedroom Two Bath
Price/SqFt
$364.77
Cap Rate
3.21%
Year Built
1976
GRM
18.4
NOTES Upgrades include copper plumb, Comp roof, ext. paint, driveway asphalt. 3br/2ba recent remodel -Kit & Ba. Granite counters/new appliances/carpet/linoleum/window coverings/toilets/sinks/ paint.
2
Bertini Ct Fourplex 3796 Bertini Ct San Jose, CA 95117
Sale Date 4/2/2014
Sale Price
$1,255,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$313,750
2
Two Bedroom One Bath
Price/SqFt
$309.27
Cap Rate
3.0%
Year Built
1976
GRM
19.4
NOTES similar unit mix
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 20 of 23
4 units - 3147 Williamsburg
Sales Comparables
3147 Williamsburg Dr San Jose, CA 95117 3
Michael Shields, CCIM, CCRM 408-354-7470
1414 Essex Way Campbell, CA 950117 Sale Price
Sale Date 2/11/2014
$1,250,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$312,500
1
Two Bedroom Two Bath
Price/SqFt
$318.23
2
Two Bedroom One Bath
Cap Rate
4.21%
Year Built
1967
GRM
16.9
NOTES Front unit has 3 br 2 ba. Other units are 2/2, 2/1, 2/1.
4
Fourplex in Campbell 3194 Moorpark Campbell, CA 95117
Sale Date 2/21/2014
Sale Price
$1,190,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$297,500
1
Two Bedroom Two Bath
Price/SqFt
$379.46
2
Two Bedroom One Bath
Cap Rate
4.61%
Year Built
1958
GRM
14.7
NOTES (1) 3/2 (1) 2/2 (2) 2/1
5
Campbell Fourplex 3685 Cape Cod Court Campbell, CA 95117
Sale Date 3/11/2014
Sale Price
$1,150,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$287,500
3
Two Bedroom One Bath
Price/SqFt
$320.87
Cap Rate
5.65%
Year Built
1964
GRM
13.0
NOTES (1)3/2 (3) 2/1
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 21 of 23
4 units - 3147 Williamsburg
Sales Comparables
3147 Williamsburg Dr San Jose, CA 95117 6
Michael Shields, CCIM, CCRM 408-354-7470
Fourplex 1307 Saratoga Ave 1307 Saratoga Ave San Jose, CA
Sale Date 8/6/2013
Sale Price
$1,210,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$302,500
2
Two Bedroom One Bath
Price/SqFt
$286.53
1
One Bedroom One Bath
Cap Rate
4.8%
Year Built
1968
GRM
14.0
$1,225,250
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$306,313
3
Two Bedroom One Bath
Price/SqFt
$338.84
Cap Rate
3.58%
Year Built
1964
GRM
17.5
NOTES Unit Mix: (1) 3/2 remodeled (2) 2/1.5 units
7
San Jose Fourplex on Auburn 405 Auburn Way San Jose, CA 95129 Sale Price
Sale Date 9/20/2013 NOTES Similar Unit mix & size.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 22 of 23
4 units - 3147 Williamsburg
Sales Comparables
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
1
3147 Williamsburg Dr, San Jose, CA 95117 ($1,050,000)
A
1321 Jonathan st, Santa Clara, CA 95050 ($1,435,000)
B
3796 Bertini Ct, San Jose, CA 95117 ($1,255,000)
C
1414 Essex Way, Campbell, CA 950117 ($1,250,000)
D
3194 Moorpark, Campbell, CA 95117 ($1,190,000)
E
3685 Cape Cod Court, Campbell, CA 95117 ($1,150,000)
F
1307 Saratoga Ave, San Jose, CA ($1,210,000)
G
405 Auburn Way, San Jose, CA 95129 ($1,225,250)
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 23 of 23
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Demographics
Executive Summary 3147 Williamsburg Dr, San Jose, California, 95117 Rings: 0.5, 1, 2 mile radii 0.5 miles
Prepared by Michael Shields Latitude: 37.297807519 Longitude: -121.9515593 1 mile
2 miles
Population 2000 Population 2010 Population 2013 Population 2018 Population 2000-2010 Annual Rate 2010-2013 Annual Rate 2013-2018 Annual Rate 2013 Male Population 2013 Female Population 2013 Median Age
11,339 11,763 11,998 12,605 0.37% 0.61% 0.99%
29,425 30,127 30,756 32,300 0.24% 0.64% 0.98%
109,097 112,376 114,071 119,264 0.30% 0.46% 0.89%
51.1% 48.9% 32.6
49.9% 50.1% 35.6
50.0% 50.0% 36.0
In the identified area, the current year population is 114,071. In 2010, the Census count in the area was 112,376. The rate of change since 2010 was 0.46% annually. The five-year projection for the population in the area is 119,264 representing a change of 0.89% annually from 2013 to 2018. Currently, the population is 50.0% male and 50.0% female. Median Age The median age in this area is 36.0, compared to U.S. median age of 37.3. Race and Ethnicity 2013 White Alone
51.1%
56.4%
55.6%
2013 Black Alone
5.5%
4.4%
4.6%
2013 American Indian/Alaska Native Alone
1.0%
0.8%
0.9%
15.3%
17.0%
19.4%
2013 Asian Alone 2013 Pacific Islander Alone 2013 Other Race 2013 Two or More Races 2013 Hispanic Origin (Any Race)
0.4%
0.4%
0.6%
21.4%
15.4%
13.1%
5.3%
5.6%
5.9%
44.7%
32.5%
28.4%
Persons of Hispanic origin represent 28.4% of the population in the identified area compared to 17.4% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 79.3 in the identified area, compared to 62.1 for the U.S. as a whole. Households 2000 Households
4,033
11,206
43,366
2010 Households
4,045
11,315
44,503
2013 Total Households
4,117
11,551
45,178
2018 Total Households
4,319
12,135
47,285
2000-2010 Annual Rate
0.03%
0.10%
0.26%
2010-2013 Annual Rate
0.55%
0.64%
0.46%
2013-2018 Annual Rate
0.96%
0.99%
0.92%
2.86
2.63
2.50
2013 Average Household Size
The household count in this area has changed from 44,503 in 2010 to 45,178 in the current year, a change of 0.46% annually. The five-year projection of households is 47,285, a change of 0.92% annually from the current year total. Average household size is currently 2.50, compared to 2.50 in the year 2010. The number of families in the current year is 27,226 in the specified area.
Data Note: Income is expressed in current dollars Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and 2018. Esri converted Census 2000 data into 2010 geography.
January 03, 2014 ©2014 Esri
Page 1 of 2
Executive Summary 3147 Williamsburg Dr, San Jose, California, 95117 Rings: 0.5, 1, 2 mile radii 0.5 miles
Prepared by Michael Shields Latitude: 37.297807519 Longitude: -121.9515593 1 mile
2 miles
Median Household Income 2013 Median Household Income 2018 Median Household Income 2013-2018 Annual Rate Average Household Income
$52,342 $61,835 3.39%
$62,020 $77,841 4.65%
$63,703 $77,968 4.12%
2013 Average Household Income 2018 Average Household Income 2013-2018 Annual Rate Per Capita Income
$72,416 $84,232 3.07%
$86,485 $101,776 3.31%
$90,411 $106,353 3.30%
$25,486 $29,497 2.97%
$32,993 $38,767 3.28%
$35,910 $42,247 3.30%
2013 Per Capita Income 2018 Per Capita Income 2013-2018 Annual Rate Households by Income
Current median household income is $63,703 in the area, compared to $51,314 for all U.S. households. Median household income is projected to be $77,968 in five years, compared to $59,580 for all U.S. households Current average household income is $90,411 in this area, compared to $71,842 for all U.S households. Average household income is projected to be $106,353 in five years, compared to $83,667 for all U.S. households Current per capita income is $35,910 in the area, compared to the U.S. per capita income of $27,567. The per capita income is projected to be $42,247 in five years, compared to $32,073 for all U.S. households Housing 2000 Total Housing Units 2000 Owner Occupied Housing Units 2000 Owner Occupied Housing Units 2000 Vacant Housing Units 2010 Total Housing Units 2010 Owner Occupied Housing Units 2010 Renter Occupied Housing Units 2010 Vacant Housing Units 2013 Total Housing Units 2013 Owner Occupied Housing Units 2013 Renter Occupied Housing Units 2013 Vacant Housing Units 2018 Total Housing Units 2018 Owner Occupied Housing Units 2018 Renter Occupied Housing Units 2018 Vacant Housing Units
4,064 1,164 2,869 31 4,199 1,225 2,820 154 4,226 1,176 2,941 109 4,420 1,259 3,061 101
11,418 4,740 6,466 212 11,788 4,910 6,405 473 11,915 4,796 6,755 364 12,521 5,147 6,988 386
44,302 17,816 25,550 936 46,589 18,364 26,139 2,086 47,118 17,853 27,325 1,940 49,454 19,075 28,210 2,169
Currently, 37.9% of the 47,118 housing units in the area are owner occupied; 58.0%, renter occupied; and 4.1% are vacant. Currently, in the U.S., 56.4% of the housing units in the area are owner occupied; 32.3% are renter occupied; and 11.3% are vacant. In 2010, there were 46,589 housing units in the area - 39.4% owner occupied, 56.1% renter occupied, and 4.5% vacant. The annual rate of change in housing units since 2010 is 0.50%. Median home value in the area is $556,887, compared to a median home value of $177,257 for the U.S. In five years, median value is projected to change by 3.94% annually to $675,513.
Data Note: Income is expressed in current dollars Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and 2018. Esri converted Census 2000 data into 2010 geography.
January 03, 2014 ©2014 Esri
Page 2 of 2
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Disclaimer
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
DISCLAIMER All materials and information received or derived from Silicon Valley Multifamily Group its directors, officers, agents, advisors, affiliates, and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither Silicon Valley Multifamily Group its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significant chance to such party. Silicon Valley Multifamily Group will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. Seller desires to sell the property in "its present as is condition" subject to inspection reports. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Silicon Valley Multifamily Group makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Silicon Valley Multifamily Group does not serve as a financial advisor to any party regarding any proposed transaction. When analyzing this property buyer should use income, vacancy and expense levels that will accurately reflect the manner in which it plans to operate the property. Broker, Agent and Seller are making no representations or warranties as to the level of income or expenses Buyer will incur at the property. Building square footage, unit square footage and lot sizes are not guaranteed. Broker, Agent and Seller have not measured all units, lot or the building and are making NO representation as to the accuracy of square footage figures. Data source for building and lot size is FastWeb. Buyer should measure all units, lot and the building prior to purchase and should not rely on any square footage figures provided by Broker, Agent or Seller. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. • Do Not Disturb -- Please respect the Seller's request that the tenants not be disturbed. All offers are to be written subject to inspection. The Seller will provide access for the Buyer to inspect the interiors of all units within a reasonable period following a fully executed purchase contract. Seller requests that all inspections be made on the same day. • Representation -- This information is given with the understanding that all negotiations relating to the purchase of the property described herein shall be conducted through Silicon Valley Multifamily Group. All properties and services are marketed by Silicon Valley Multifamily Group in compliance with all applicable fair housing and equal opportunity laws.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 61 of 62
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
OFFERING MEMORANDUM NOTES Gross Annual Scheduled Income & the Gross Rent Multiplier are based on current rents shown in the Rent Roll. These rent levels are current rent levels at the time this package was prepared and subject to change without notice. Buyer should review most recent rent roll prior to purchase. The laundry income was based on 2011 actual levels. Gross Annual Scheduled Income & Gross Income Multiplier (Market or Pro Forma) assumes the units are all rented at the rent levels shown in the Pro Form Summary. These rent levels are not guaranteed to be achievable by Seller, Broker or Agent. Buyer should use rent levels it thinks it can obtain for the subject property. The laundry income was based on the actual 2011 laundry income reported by the owner. Capitalization Rate is based on rents, expenses and vacancy figures shown in the Operating Statement. Pro Forma Capitalization Rate is based on rents, expenses and vacancy figures shown in the Pro-Forma Operating Statement Pro-Forma (Market) column. See Pro Forma Operating Statement Footnotes and Disclaimers in this section of the Offering Memorandum. Year Built: Data source is through Chicago Title Company. Seller, Broker and Agent are making no guarantee or representations as to when the improvements were built. Buyer should conduct its own investigation to determine age of improvements. UNIT MIX/SCHEDULED INCOME OVERVIEW FOOTNOTES Current Rent Column is based on current rents shown in the Rent Roll. These rent levels are current rent levels at the time this package was prepared and subject to change without notice. Buyer should review most recent rent roll prior to purchase. Pro Forma or Market Rents assumes the units are all rented at the estimated market rent levels shown in the rent roll. Please note that current rents are not at these levels. Pro Forma rent levels are not guaranteed to be achievable by Seller, Broker or Agent. Buyer should use rent levels it thinks it can obtain for the subject property. Purchase Information on page 4 including Fair Market Value, Resale Valuation and Resale Expenses are provided for illustrative purposes only and will vary depending on market conditions and other factors. Silicon Valley Multifamily Group, its Brokers and Agents can not be held accountable for these numbers. Buyer should use the numbers it thinks most appropriate. Financial Information on page 4 including Down Payment, Closing Costs, LT Capital Gain, Federal and State Tax Rates and the Discount Rate are provided for illustrative purposes only. Actual numbers may, and probably will, vary depending on the Buyer’s individual situation. Loans on page 4. This information is provided for illustrative purposes only. Buyer should use the loan information it thinks attainable and realistic for the property. Annual Property Operating Data Notes and Disclaimers Rental Income is based on current rents shown in the Rent Roll Miscellaneous income is based upon information provided by the owner or manager. General Vacancy is estimated to be at current market levels or provided by owner. Taxes are estimated based on list price and based on 2011/2012 tax rate reported by Santa Clara County. Other Expenses All other expenses are as reported by owner or property manager. Loan Payment is based upon information provided in the LOANS section of page 4. Buyer should use the loan information it thinks attainable and realistic for the property. Income Taxes is based upon a 33% or greater tax rate and is provided for illustrative purposes only. Buyer should consult with a licensed tax professional in determining the most realistic and appropriate tax rate. NOTE: THE 10 YEAR PROJECTIONS ARE PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY. BUYER SHOULD USE THE PROJECTIONS IT THINKS ARE REALISTIC AND ATTAINABLE. Rent Roll Notes General Notes: Rent levels, occupancy, deposit amounts and terms are subject to change without notice. Move-In dates are subject to change as units turnover. Buyer should obtain updated information and confirm all rent levels, lease terms, move-in dates, amount of last rental adjustment and deposit amounts prior to purchase. Market Rent column does not reflect current rent levels. These rent levels are not guaranteed to be achievable by Seller, Broker or Agents. Buyer should use rent levels it thinks it can obtain for the subject property.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 62 of 62
Michael Shields, CCIM, CCRM
Erik Nielsen
Apartment / Investment Broker
Apartment Agent
408-354-7470
831-297-0461
[email protected]
[email protected]
Lic. 01327546
BRE 01907679
●
Offering Price: $2,120,000 ($1,070,000 - 3139 Williamsburg) ($1,050,000 - 3147 Williamsburg)
●
Priced Below Market - Value Add Opportunity! Desirable Unit Mix: (1) 3/2 & (3) 2/1 units each building
●
Upside Potential in Rents 21% in First Year Or Renovate and Raise to Market Level
●
Current Financials: 4.33% Cap Rate, 15.1 GRM Pro Forma Financials: 5.62% Cap Rate, 12.27 GRM
●
Offered for Sale Together or Individually
900 E. Hamilton Ave., Suite 100 Campbell, CA 95008 408-354-7470 (p) 866-354-7420 (f) www.siliconvalleymultifamily.com
Table of Contents
SECTION 1 - PORTFOLIO OVERVIEW - 8 UNITS
SECTION 2 - 3139 WILLIAMSBURG - 4 UNITS
SECTION 3 - 3147 WILLIAMSBURG - 4 UNITS
SECTION 4 - DEMOGRAPHICS
SECTION 5 - DISCLAIMER
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Portfolio Overview - 8
Real Estate Investment Details
ANALYSIS Analysis Date
May 2014
PROPERTY Property Property Address Year Built
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117 1962
PURCHASE INFORMATION Property Type Purchase Price Fair Market Value Units Total Rentable Sq. Ft. Resale Valuation Resale Expenses
FINANCIAL INFORMATION MultiFamily $2,120,000 $2,120,000 8 6,444 3.0% (annual appreciation) 6.0%
Down Payment Closing Costs Discount Rate
$742,000 $5,000 3.00%
LOANS Fixed
Debt $1,378,000
Term 30 years
Amortization 30 years
INCOME & EXPENSES Gross Operating Income Monthly GOI Total Annual Expenses Monthly Expenses
Rate 4.0%
Payment $6,579
LO Costs $13,780
CONTACT INFORMATION $140,478 $11,706 ($48,767) ($4,064)
Michael Shields, CCIM, CCRM 408-354-7470 [email protected] Lic. 01327546 Erik Nielsen 831-297-0461 [email protected] BRE 01907679
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions. page 4 of 62
Williamsburg Portfolio
Property Description
3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Value Add Opportunity In West San Jose 8 Units: (2) 3/2 Units & (6) 2/1 units These two fourplexes are ideally situated to be renovated, allowing the investor to capitalize on higher market rents offered in West San Jose. The two building consists of a very desirable unit mix of (2) 3/2 units and (6) 2/1 units. Demand and rents for these units are reaching record level highs in Silicon Valley. The building currently generates $144,600 annually and should effectively generate $172,200 annually at market level rents. Rents have not been raised on 7 of the 8 units in the last two years, allowing the new owner to increase rents up to 21% on these units and still be in compliance with San Jose Rent Control laws. If rents were to be raised to market levels, the Cap Rate would be 5.6% - high for fourplex units in Santa Clara County. Moreover, the laundry income for this building generates an average of $600 per month on equipment that transfers with the sale of the property. As is common for properties of this type, tenants pay individual utilities including electric, gas for heating, phone & cable. Owner pays taxes, insurance, maintenance, trash removal, landscaping, water & sewer, gas for hot water and common area electric. Built in 1962, the building is constructed in the classic garden-style, walk-up architecture. The two buildings total 6,444 sf in size, on a 17,952 sf lot. The units are large and the 3/2 units have large, private back yards. The carports (one space/unit) are attached, but not tucked under. There is some deferred maintenance and repairs required. The property has been priced to accommodate these repairs and is offered for sale on an “As-Is” basis. The two properties can be purchased separately or together.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 5 of 62
Williamsburg Portfolio
Property Photos
3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Property Photos
3139 Williamsburg
3147 Williamsburg
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 6 of 62
Annual Property Operating Data
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Description
Michael Shields, CCIM, CCRM 408-354-7470
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Rental Income Miscellaneous Income
$137,400
$141,522
$145,767
$150,140
$154,645
$159,284
$164,062
$168,984
$174,054
$179,276
$7,200
$7,200
$7,200
$7,200
$7,200
$7,200
$7,200
$7,200
$7,200
$7,200
GROSS SCHEDULED INCOME Turnover Vacancy
$144,600
$148,722
$152,967
$157,340
$161,845
$166,484
$171,262
$176,184
$181,254
$186,476
($4,122)
($4,246)
($4,373)
($4,504)
($4,639)
($4,779)
($4,922)
($5,070)
($5,222)
($5,378)
GROSS OPERATING INCOME
$140,478
$144,476
$148,594
$152,836
$157,205
$161,705
$166,341
$171,115
$176,032
$181,097
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($25,161)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,256)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($5,100)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($1,800)
($600)
($600)
($600)
($600)
($600)
($600)
($600)
($600)
($600)
($600)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($4,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($1,200)
($350)
($350)
($350)
($350)
($350)
($350)
($350)
($350)
($350)
($350)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
($48,767)
$91,711
$95,709
$99,827
$104,069
$108,438
$112,938
$117,574
$122,348
$127,265
$132,330
Expenses Property Taxes Insurance Utilities, Gas & Electric Utilities, Water & sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits TOTAL OPERATING EXPENSES NET OPERATING INCOME
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 7 of 62
Financial Indicators
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Description
Michael Shields, CCIM, CCRM 408-354-7470
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
15.10
15.12
15.14
15.17
15.19
15.21
15.22
15.24
15.26
15.28
Capitalization Rate
4.33%
4.51%
4.71%
4.91%
5.12%
5.33%
5.55%
5.77%
6.00%
6.24%
Cash On Cash Return b/t
1.68%
2.20%
2.74%
3.30%
3.88%
4.47%
5.08%
5.70%
6.35%
7.02%
Cash On Cash Return a/t
1.68%
2.20%
2.74%
3.30%
3.88%
4.47%
5.08%
5.70%
6.35%
7.02%
1.16
1.21
1.26
1.32
1.37
1.43
1.49
1.55
1.61
1.68
Gross Income per Sq. Ft.
$22.44
$23.08
$23.74
$24.42
$25.12
$25.84
$26.58
$27.34
$28.13
$28.94
Expenses per Sq. Ft.
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
($7.57)
23.81
23.50
23.21
22.93
22.66
22.41
22.18
21.95
21.74
21.53
Operating Expense Ratio
34.72%
33.75%
32.82%
31.91%
31.02%
30.16%
29.32%
28.50%
27.70%
26.93%
Loan To Value Ratio
62.00%
59.07%
56.21%
53.43%
50.71%
48.07%
45.48%
42.96%
40.50%
38.10%
Gross Rent Multiplier
Debt Coverage Ratio
Net Income Multiplier
Footnotes: b/t = before taxes; a/t = after taxes
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 8 of 62
Pro Forma Summary
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
UNIT MIX & ANNUAL SCHEDULED INCOME Type
Units
Actual
3 BR / 2 BA
2
$21,600
2 BR / 2 BA
6
$15,700
TOTALS
8
Total
Market
Total
$43,200
$25,200
$50,400
$94,200
$19,200
$115,200
$137,400
$165,600
ANNUALIZED INCOME Actual
INVESTMENT SUMMARY Price:
$2,120,000
Year Built:
1962
Units:
8
Price/Unit:
$265,000
RSF:
6,444
Price/RSF:
2
Parking Spaces:
Cap Rate:
4.33%
Market Cap Rate:
5.62%
GRM:
14.66
Market GRM:
12.27
FINANCING SUMMARY
Loan Type: Interest Rate: Term:
($4,968) $7,200 $167,832 ($48,767) $119,065 ($78,945) $40,120 $24,267 $64,387
Actual
Market
Property Taxes Insurance Utilities, Gas & Electric Utilities, Water & sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits
$25,161 $5,256 $5,100 $5,100 $1,800 $600 $4,200 $1,200 $350
$25,161 $5,256 $5,100 $5,100 $1,800 $600 $4,200 $1,200 $350
Total Expenses Expenses Per RSF Expenses Per Unit
$48,767 $7.57 $6,096
$48,767 $7.57 $6,096
$1,378,000 $742,000 Fixed 4% 30 years
Monthly Payment: DCR:
($4,122) $7,200 $140,478 ($48,767) $91,711 ($78,945) $12,765 $24,267 $37,032
ANNUALIZED EXPENSES
1.5/unit 305-02-037, -
Down Payment:
$165,600
17,952 sf
Floors:
Loan Amount:
Market
$137,400
$328.99
Lot Size:
APN:
Gross Potential Rent Less: Vacancy Misc. Income Effective Gross Income Less: Expenses Net Operating Income Debt Service Net Cash Flow after Debt Service Principal Reduction Total Return
$6,579 1.16
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 9 of 62
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
3139 Williamsburg - 4
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117 For more information contact:
Michael Shields, CCIM, CCRM Apartment / Investment Broker 408-354-7470 [email protected] Lic. 01327546
Erik Nielsen Apartment Agent 831-297-0461 [email protected] BRE 01907679
Phone: 408-354-7470
●
Fax: 866-354-7420
●
Offering Price: $1,070,000 Priced Below Market! Value Add Opportunity!
●
Upside Potential in Rents - 21% in First Year Or Renovate and Raise to Market Level
●
Current: Cap Rate 4.36%, GRM 14.62 Market: Cap Rate 5.67%, GRM 12.38
●
Desirable Unit Mix: (1) 3BR/2BA w/large Yard, (3) 2BR/1BA Carports, Storage, On-site Laundry is a Money Maker!
●
Offered for Sale with Adjacent Property, 3147 Williamsburg, or Separately
●
900 E. Hamilton Ave., Suite 100
●
Campbell, CA 95008
●
www.siliconvalleymultifamily.com
Table of Contents
SECTION 1 - PROPERTY OVERVIEW
SECTION 2 - FINANCIAL ANANLYSIS
SECTION 3 - COMPARABLES
SECTION 4 - DEMOGRAPHICS
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Property Overview
Real Estate Investment Details
ANALYSIS Analysis Date
May 2014
PROPERTY Property Property Address Year Built
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117 1962
PURCHASE INFORMATION Property Type Purchase Price Fair Market Value Units Total Rentable Sq. Ft. Resale Valuation Resale Expenses
FINANCIAL INFORMATION MultiFamily $1,070,000 $1,070,000 4 3,222 3.0% (annual appreciation) 6.0%
Down Payment Closing Costs LT Capital Gain Federal Tax Rate State Tax Rate Passive Loss Rules Discount Rate
$322,500 $2,500 20.00% 34.0% 9.4% Yes 3.00%
LOANS Fixed
Debt $752,500
Term 30 years
INCOME & EXPENSES Gross Operating Income Monthly GOI Total Annual Expenses Monthly Expenses
Amortization 30 years
Rate 4.0%
Payment $3,593
LO Costs $7,525
CONTACT INFORMATION $71,112 $5,926 ($24,502) ($2,042)
Michael Shields, CCIM, CCRM 408-354-7470 [email protected] Lic. 01327546 Erik Nielsen 831-297-0461 [email protected] BRE 01907679
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions.
4 units - 3139 Williamsburg
Executive Summary
3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
ACQUISITION COSTS Purchase Price, Points and Closing Costs Investment - Cash First Loan
$1,080,025 $332,525 $752,500
INVESTMENT INFORMATION Purchase Price Price per Unit Price per Sq. Ft. Income per Unit Expenses per Unit
$1,070,000 $267,500 $332.09 $18,300 ($6,126)
INCOME, EXPENSES & CASH FLOW Gross Scheduled Income Total Vacancy and Credits Operating Expenses Net Operating Income Debt Service Cash Flow Before Taxes
$73,200 ($2,088) ($24,502) $46,610 ($43,111) $3,499
Total Interest (Debt Service) Depreciation and Amortization Taxable Income (Loss) Tax Savings (Costs) Cash Flow After Taxes
($29,859) ($14,942) $1,809 ($785) $2,714
FINANCIAL INDICATORS Cash on Cash Return Before Taxes Optimal Internal Rate of Return (yr 10) Debt Coverage Ratio Capitalization Rate Gross Rent Multiplier Gross Income / Square Feet Gross Expenses / Square Feet Operating Expense Ratio
1.05% 8.47% 1.08 4.36% 14.62 $22.72 ($7.60) 34.46%
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Property Description
3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Value Add Opportunity In West San Jose Unit Mix: (1) 3/2 Unit; (3) 2/1 Units This fourplex is ideally situated to be renovated, allowing the investor to capitalize on higher market rents offered in West San Jose. The building consists of a very desirable unit mix of (1) 3/2 unit and (3) 2/1 units. Demand and rents for these units are reaching record level highs in Silicon Valley. The building currently generates $71,112 annually and should effectively generate $83,916 annually at market level rents. Rents have not been raised on most units in the last two years, allowing the new owner to increase rents up to 21% on 3 units and still be in compliance with San Jose Rent Control laws. If rents were to be raised to market levels, the Cap Rate would be 5.67% - high for a fourplex in Santa Clara County. Moreover, the laundry income for this building generates an average of $300 per month on equipment that transfers with the sale of the property. As is common for properties of this type, tenants pay individual utilities including electric, gas for heating, phone & cable. Owner pays taxes, insurance, maintenance, trash removal, landscaping, water & sewer, gas for hot water and common area electric. Built in 1962, the building is constructed in the classic garden-style, walk-up architecture. The building is 3,222 sf in size, on a 8,976 sf lot. The units are large and the 3/2 unit has a large, private back yard. The carports (one space/unit) are attached, but not tucked under. There is some deferred maintenance and repairs required. The property has been priced to accommodate these repairs and is offered for sale on an “As-Is” basis. This fourplex shares a gated front yard with the adjacent property, also under the same ownership. The adjacent property is also offered for sale. These properties can be purchased separately or together.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Unit Mix Report
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
UNIT MIXES Units
Type
1 1 1 1 4
Approx. SqFt Avg. Rents
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
UNIT MIX
1000 700 700 700 3,100
$1,800 $1,300 $1,400 $1,300
Monthly $1,800 $1,300 $1,400 $1,300 $5,800
Mkt Rents
Monthly
$2,100 $1,600 $1,600 $1,600
$2,100 $1,600 $1,600 $1,600 $6,900
UNIT MIX SQUARE FEET ● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
UNIT MIX INCOME
● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
UNIT MIX MARKET INCOME ● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Property Photos
3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Property Photos
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Maps and Aerials
3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Location Maps
Regional Map
Neighborhood Map
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Maps and Aerials
3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Aerial Map
Parcel Map
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Financial Ananlysis
Annual Property Operating Data
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
Rental Income Miscellaneous Income
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$69,600
$71,688
$73,839
$76,054
$78,335
$80,685
$83,106
$85,599
$88,167
$90,812
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
GROSS SCHEDULED INCOME General Vacancy
$73,200
$75,288
$77,439
$79,654
$81,935
$84,285
$86,706
$89,199
$91,767
$94,412
($2,088)
($2,151)
($2,215)
($2,282)
($2,350)
($2,421)
($2,493)
($2,568)
($2,645)
($2,724)
GROSS OPERATING INCOME
$71,112
$73,137
$75,223
$77,372
$79,585
$81,865
$84,213
$86,631
$89,122
$91,688
($12,699)
($12,826)
($12,954)
($13,084)
($13,215)
($13,347)
($13,480)
($13,615)
($13,751)
($13,889)
($2,628)
($2,707)
($2,788)
($2,872)
($2,958)
($3,047)
($3,138)
($3,232)
($3,329)
($3,429)
($2,550)
($2,627)
($2,705)
($2,786)
($2,870)
($2,956)
($3,045)
($3,136)
($3,230)
($3,327)
($2,550)
($2,627)
($2,705)
($2,786)
($2,870)
($2,956)
($3,045)
($3,136)
($3,230)
($3,327)
($900)
($927)
($955)
($983)
($1,013)
($1,043)
($1,075)
($1,107)
($1,140)
($1,174)
($300)
($309)
($318)
($328)
($338)
($348)
($358)
($369)
($380)
($391)
($2,100)
($2,163)
($2,228)
($2,295)
($2,364)
($2,434)
($2,508)
($2,583)
($2,660)
($2,740)
($600)
($618)
($637)
($656)
($675)
($696)
($716)
($738)
($760)
($783)
($175)
($175)
($175)
($175)
($175)
($175)
($175)
($175)
($175)
($175)
($24,502)
($24,978)
($25,465)
($25,965)
($26,477)
($27,002)
($27,540)
($28,091)
($28,656)
($29,236)
$46,610
$48,160
$49,758
$51,407
$53,108
$54,863
$56,673
$58,540
$60,466
$62,452
Expenses Taxes Insurance Utilities - Gas & Electric Utilities - Water & Sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits TOTAL OPERATING EXPENSES NET OPERATING INCOME
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Cash Flow Analysis
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
GROSS SCHEDULED INCOME General Vacancy Total Operating Expenses NET OPERATING INCOME Loan Payment
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$73,200
$75,288
$77,439
$79,654
$81,935
$84,285
$86,706
$89,199
$91,767
$94,412
($2,088)
($2,151)
($2,215)
($2,282)
($2,350)
($2,421)
($2,493)
($2,568)
($2,645)
($2,724)
($24,502)
($24,978)
($25,465)
($25,965)
($26,477)
($27,002)
($27,540)
($28,091)
($28,656)
($29,236)
$46,610
$48,160
$49,758
$51,407
$53,108
$54,863
$56,673
$58,540
$60,466
$62,452
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
$3,499
$5,049
$6,647
$8,297
$9,998
$11,752
$13,563
$15,430
$17,355
$19,342
1.05%
1.52%
2.00%
2.50%
3.01%
3.53%
4.08%
4.64%
5.22%
5.82%
$46,610
$48,160
$49,758
$51,407
$53,108
$54,863
$56,673
$58,540
$60,466
$62,452
($14,691)
($15,332)
($15,332)
($15,332)
($15,332)
($15,332)
($15,332)
($15,332)
($15,332)
($14,693)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($29,859)
($29,319)
($28,757)
($28,172)
($27,564)
($26,930)
($26,271)
($25,585)
($24,871)
($24,128)
NET CASH FLOW (b/t) Cash On Cash Return b/t NET OPERATING INCOME Depreciation Amortization Loan Interest
Year 2
TAXABLE INCOME (LOSS) Income Taxes
$1,809
$3,258
$5,418
$7,652
$9,962
$12,350
$14,819
$17,372
$20,012
$23,381
($785)
($1,414)
($2,351)
($3,321)
($4,323)
($5,360)
($6,432)
($7,540)
($8,685)
($10,147)
CASH FLOW (a/t) Cash On Cash Return a/t
$2,714
$3,635
$4,296
$4,976
$5,674
$6,393
$7,131
$7,890
$8,670
$9,194
0.82%
1.09%
1.29%
1.50%
1.71%
1.92%
2.14%
2.37%
2.61%
2.76%
Footnotes: b/t = before taxes;a/t = after taxes
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Financial Indicators
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Description
Michael Shields, CCIM, CCRM 408-354-7470
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
15.06
15.08
15.10
15.12
15.14
15.16
15.18
15.20
15.21
15.23
Capitalization Rate
4.36%
4.50%
4.65%
4.80%
4.96%
5.13%
5.30%
5.47%
5.65%
5.84%
Cash On Cash Return b/t
1.05%
1.52%
2.00%
2.50%
3.01%
3.53%
4.08%
4.64%
5.22%
5.82%
Cash On Cash Return a/t
0.82%
1.09%
1.29%
1.50%
1.71%
1.92%
2.14%
2.37%
2.61%
2.76%
1.08
1.12
1.15
1.19
1.23
1.27
1.31
1.36
1.40
1.45
Gross Income per Sq. Ft.
$22.72
$23.37
$24.03
$24.72
$25.43
$26.16
$26.91
$27.68
$28.48
$29.30
Expenses per Sq. Ft.
($7.60)
($7.75)
($7.90)
($8.06)
($8.22)
($8.38)
($8.55)
($8.72)
($8.89)
($9.07)
23.65
23.57
23.50
23.43
23.36
23.29
23.22
23.15
23.09
23.03
Operating Expense Ratio
34.46%
34.15%
33.85%
33.56%
33.27%
32.98%
32.70%
32.43%
32.15%
31.89%
Loan To Value Ratio
67.08%
63.91%
60.82%
57.81%
54.87%
52.01%
49.21%
46.48%
43.82%
41.23%
Gross Rent Multiplier
Debt Coverage Ratio
Net Income Multiplier
Footnotes: b/t = before taxes; a/t = after taxes
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Loan Analysis
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
LOAN 1 Debt Service Analysis Principal Payments Interest Payments Total Debt Service Principal Balance Analysis Beginning Principal Balance Principal Reductions Ending Principal Balance
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$13,252
$13,792
$14,354
$14,938
$15,547
$16,180
$16,840
$17,526
$18,240
$18,983
$29,859
$29,319
$28,757
$28,172
$27,564
$26,930
$26,271
$25,585
$24,871
$24,128
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$752,500
$739,248
$725,457
$711,103
$696,165
$680,618
$664,437
$647,598
$630,072
$611,832
$13,252
$13,792
$14,354
$14,938
$15,547
$16,180
$16,840
$17,526
$18,240
$18,983
$739,248
$725,457
$711,103
$696,165
$680,618
$664,437
$647,598
$630,072
$611,832
$592,849
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Pro Forma Summary
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
UNIT MIX & ANNUAL SCHEDULED INCOME Type
Units
Actual
Total
Market
Total
3 BR / 2 BA
1
$21,600
$21,600
$25,200
$25,200
2 BR / 1 BA
1
$15,600
$15,600
$19,200
$19,200
2 BR / 1 BA
1
$16,800
$16,800
$19,200
$19,200
2 BR / 1 BA
1
$15,600
$15,600
$19,200
$19,200
TOTALS
4
$69,600
$82,800
ANNUALIZED INCOME Actual
INVESTMENT SUMMARY Price:
$1,070,000
Year Built: Units:
1962 4
Price/Unit: RSF:
$267,500 3,222
Price/RSF:
$332.09
Lot Size:
8,976 sf
Floors:
2
Parking Spaces: APN:
305-02-037 4.36%
Market Cap Rate:
5.67%
GRM:
14.62
Market GRM:
12.38
FINANCING SUMMARY Loan Amount:
$752,500
Down Payment:
$322,500
Interest Rate: Term:
DCR:
Fixed
Market $82,800 ($2,484) $3,600 $83,916 ($23,274) $60,642 ($43,111) $17,531 $13,252 $30,783
ANNUALIZED EXPENSES Actual
Market
Taxes Insurance Utilities - Gas & Electric Utilities - Water & Sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits
$12,699 $2,628 $2,550 $2,550 $900 $300 $2,100 $600 $175
$12,699 $1,400 $2,550 $2,550 $900 $300 $2,100 $600 $175
Total Expenses Expenses Per RSF Expenses Per Unit
$24,502 $7.60 $6,126
$23,274 $7.22 $5,819
4% 30 years
Monthly Payment:
$69,600 ($2,088) $3,600 $71,112 ($24,502) $46,610 ($43,111) $3,499 $13,252 $16,751
1.5/unit
Cap Rate:
Loan Type:
Gross Potential Rent Less: Vacancy Misc. Income Effective Gross Income Less: Expenses Net Operating Income Debt Service Net Cash Flow after Debt Service Principal Reduction Total Return
$3,593 1.08
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Comparables
Sales Comparables
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Cap Rate
Gross Rent Multiplier
8%
24.0
7%
21.0
6%
18.0
5%
15.0
Avg. 16.271
Avg. 4%
4.151
12.0
3%
9.0
2%
6.0
1%
3.0
Subject
1
2
3
4
5
6
7
Subject
1
Price per Unit
2
3
4
5
6
7
Price per Sq. Ft.
$360,000
$384 Avg.
$315,000
Avg.
$336
$311,259
$331.14
$270,000
$288
$225,000
$240
$180,000
$192
$135,000
$144
$90,000
$96
$45,000
$48
Subject
1
2
3
4
5
6
7
Subject
1
2
3
4
5
6
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
7
4 units - 3139 Williamsburg
Sales Comparables
3139 Williamsburg Dr San Jose, CA 95117 S
Michael Shields, CCIM, CCRM 408-354-7470
4 units - 3139 Williamsburg 3139 Williamsburg Dr San Jose, CA 95117 Sale Price
$1,070,000
# Units
Unit Type
Units
4
1
3 BR / 2 BA
Price/Unit
$267,500
1
2 BR / 1 BA
Price/SqFt
$332.09
1
2 BR / 1 BA
Cap Rate
4.36%
1
2 BR / 1 BA
Year Built
1962
GRM
14.62
NOTES (1)3BR/2BA, (3) 2BR/1BA Units Spacious Units On-site Laundry
1
1321 Jonathan st Santa Clara, CA 95050
Sale Date 3/22/2014
Sale Price
$1,435,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$358,750
3
Two Bedroom Two Bath
Price/SqFt
$364.77
Cap Rate
3.21%
Year Built
1976
GRM
18.4
NOTES Upgrades include copper plumb, Comp roof, ext. paint, driveway asphalt. 3br/2ba recent remodel -Kit & Ba. Granite counters/new appliances/carpet/linoleum/window coverings/toilets/sinks/ paint.
2
Bertini Ct Fourplex 3796 Bertini Ct San Jose, CA 95117
Sale Date 4/2/2014
Sale Price
$1,255,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$313,750
2
Two Bedroom One Bath
Price/SqFt
$309.27
Cap Rate
3.0%
Year Built
1976
GRM
19.4
NOTES similar unit mix
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Sales Comparables
3139 Williamsburg Dr San Jose, CA 95117 3
Michael Shields, CCIM, CCRM 408-354-7470
1414 Essex Way Campbell, CA 950117 Sale Price
Sale Date 2/11/2014
$1,250,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$312,500
1
Two Bedroom Two Bath
Price/SqFt
$318.23
2
Two Bedroom One Bath
Cap Rate
4.21%
Year Built
1967
GRM
16.9
NOTES Front unit has 3 br 2 ba. Other units are 2/2, 2/1, 2/1.
4
Fourplex in Campbell 3194 Moorpark Campbell, CA 95117
Sale Date 2/21/2014
Sale Price
$1,190,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$297,500
1
Two Bedroom Two Bath
Price/SqFt
$379.46
2
Two Bedroom One Bath
Cap Rate
4.61%
Year Built
1958
GRM
14.7
NOTES (1) 3/2 (1) 2/2 (2) 2/1
5
Campbell Fourplex 3685 Cape Cod Court Campbell, CA 95117
Sale Date 3/11/2014
Sale Price
$1,150,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$287,500
3
Two Bedroom One Bath
Price/SqFt
$320.87
Cap Rate
5.65%
Year Built
1964
GRM
13.0
NOTES (1)3/2 (3) 2/1
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Sales Comparables
3139 Williamsburg Dr San Jose, CA 95117 6
Michael Shields, CCIM, CCRM 408-354-7470
Fourplex 1307 Saratoga Ave 1307 Saratoga Ave San Jose, CA
Sale Date 8/6/2013
Sale Price
$1,210,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$302,500
2
Two Bedroom One Bath
Price/SqFt
$286.53
1
One Bedroom One Bath
Cap Rate
4.8%
Year Built
1968
GRM
14.0
$1,225,250
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$306,313
3
Two Bedroom One Bath
Price/SqFt
$338.84
Cap Rate
3.58%
Year Built
1964
GRM
17.5
NOTES Unit Mix: (1) 3/2 remodeled (2) 2/1.5 units
7
San Jose Fourplex on Auburn 405 Auburn Way San Jose, CA 95129 Sale Price
Sale Date 9/20/2013 NOTES Similar Unit mix & size.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
4 units - 3139 Williamsburg
Sales Comparables
3139 Williamsburg Dr San Jose, CA 95117
1
3139 Williamsburg Dr, San Jose, CA 95117 ($1,070,000)
A
1321 Jonathan st, Santa Clara, CA 95050 ($1,435,000)
B
3796 Bertini Ct, San Jose, CA 95117 ($1,255,000)
C
1414 Essex Way, Campbell, CA 950117 ($1,250,000)
D
3194 Moorpark, Campbell, CA 95117 ($1,190,000)
E
3685 Cape Cod Court, Campbell, CA 95117 ($1,150,000)
F
1307 Saratoga Ave, San Jose, CA ($1,210,000)
G
405 Auburn Way, San Jose, CA 95129 ($1,225,250)
Michael Shields, CCIM, CCRM 408-354-7470
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
3147 Williamsburg - 4
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117 For more information contact:
Michael Shields, CCIM, CCRM Apartment / Investment Broker 408-354-7470 [email protected] Lic. 01327546
Erik Nielsen Apartment Agent 831-297-0461 [email protected] BRE 01907679
Phone: 408-354-7470
●
Fax: 866-354-7420
●
Offering Price: $1,050,000 Priced Below the Market! Value Add Opportunity!
●
Upside Potential in Rents - 21% in First Year Or Renovate and Raise to Market Level
●
Current: Cap Rate 4.3%, GRM 14.71 Market: Cap Rate 5.8%, GRM 12.15
●
Desirable Unit Mix: (1) 3BR/2BA w/Large Yard, (3) 2BR/1BA Carports, Storage, On-site Laundry is a Money Maker!
●
Offered for Sale with 3139 Williamsburg or Separately.
●
900 E. Hamilton Ave., Suite 100
●
Campbell, CA 95008
●
www.siliconvalleymultifamily.com
Table of Contents
SECTION 1 - PROPERTY OVERVIEW
SECTION 2 - FINANCIAL ANANLYSIS
SECTION 3 - COMPARABLES
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Property Overview
Real Estate Investment Details
ANALYSIS Analysis Date
May 2014
PROPERTY Property Property Address Year Built
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117 1962
PURCHASE INFORMATION Property Type Purchase Price Fair Market Value Units Total Rentable Sq. Ft. Resale Valuation Resale Expenses
FINANCIAL INFORMATION MultiFamily $1,050,000 $1,050,000 4 3,222 3.0% (annual appreciation) 6.0%
Down Payment Closing Costs LT Capital Gain Federal Tax Rate State Tax Rate Passive Loss Rules Discount Rate
$322,500 $2,500 20.00% 34.0% 9.4% Yes 3.00%
LOANS Fixed
Debt $752,500
Term 30 years
Amortization 30 years
INCOME & EXPENSES Gross Operating Income Monthly GOI Total Annual Expenses Monthly Expenses
Rate 4.0%
Payment $3,593
LO Costs $7,525
CONTACT INFORMATION $69,366 $5,781 ($24,265) ($2,022)
Michael Shields, CCIM, CCRM 408-354-7470 [email protected] Lic. 01327546 Erik Nielsen 831-297-0461 [email protected] BRE 01907679
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions. page 4 of 23
4 units - 3147 Williamsburg
Executive Summary
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
ACQUISITION COSTS Purchase Price, Points and Closing Costs Investment - Cash First Loan
$1,060,025 $332,525 $752,500
INVESTMENT INFORMATION Purchase Price Price per Unit Price per Sq. Ft. Income per Unit Expenses per Unit
$1,050,000 $262,500 $325.88 $17,850 ($6,066)
INCOME, EXPENSES & CASH FLOW Gross Scheduled Income Total Vacancy and Credits Operating Expenses Net Operating Income Debt Service Cash Flow Before Taxes
$71,400 ($2,034) ($24,265) $45,101 ($43,111) $1,990
Total Interest (Debt Service) Depreciation and Amortization Taxable Income (Loss) Tax Savings (Costs) Cash Flow After Taxes
($29,859) ($14,993) $249 ($108) $1,882
FINANCIAL INDICATORS Cash on Cash Return Before Taxes Optimal Internal Rate of Return (yr 10) Debt Coverage Ratio Capitalization Rate Gross Rent Multiplier Gross Income / Square Feet Gross Expenses / Square Feet Operating Expense Ratio
0.60% 7.88% 1.05 4.30% 14.71 $22.16 ($7.53) 34.98%
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 5 of 23
4 units - 3147 Williamsburg
Property Description
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Value Add Opportunity In West San Jose Four Units: (1) 3/2 Unit & (3) 2/1 Units This fourplex is ideally situated to be renovated, allowing the investor to capitalize on higher market rents offered in West San Jose. The building consists of a very desirable unit mix of (1) 3/2 unit and (3) 2/1 units. Demand and rents for these units are reaching record level highs in Silicon Valley. The building currently generates $71,400 annually and should effectively generate $86,400 annually at market level rents. Rents have not been raised on most units in the last two years, allowing the new owner to increase rents up to 21% and still be in compliance with San Jose Rent Control laws. If rents were to be raised to market levels, the Cap Rate would be 5.8% - high for a fourplex in Santa Clara County. Moreover, the laundry income for this building generates an average of $300 per month on equipment that transfers with the sale of the property. As is common for properties of this type, tenants pay individual utilities including electric, gas for heating, phone & cable. Owner pays taxes, insurance, maintenance, trash removal, landscaping, water & sewer, gas for hot water and common area electric. Built in 1962, the building is constructed in the classic garden-style, walk-up architecture. The building is 3,222 sf in size, on a 8,976 sf lot. The units are large and the 3/2 unit has a large, private back yard. The carports (one space/unit) are attached, but not tucked under. There is some deferred maintenance and repairs required. The property has been priced to accommodate these repairs and is offered for sale on an “As-Is” basis. This fourplex shares a gated front yard with the adjacent property, also under the same ownership. The adjacent property is also offered for sale. These properties can be purchased separately or together.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 6 of 23
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
3147 Williamsburg Drive San Jose, CA 95117 Market: San Jose Metro Submarket:
Downtown
County:
Santa Clara
APN:
305-02-038
Location Highlights •
Significant Rent Growth in 2011 & 2012
•
Robust Rent Growth Project by economists
•
Low Vacancy Rate due to Strong Rental Demand
Location Overview
Michael Shields, CCIM, CCRM CADILLAC APARTMENTS I. PROPERTY INFORMATION 408-354-7470
The property is located in the City of San Jose, known as the "Capital of Silicon Valley." San Jose is the largest city in the San Francisco Bay Area and boasts a robust economy with employment growth that is among the strongest in the Country. San Jose is located in Santa Clara County, the largest county within the Bay Area with more than 34% of the region's total t employment. Over the coming years, population is expected to grow by 6.3%, and employment is expected to grow by 13.6% in a variety of fields including professional and business services (notably high technology), education services and health care se services.
Silicon Valley also has one of highest concentrations of highhigh technology, engineering, computer, and microprocessor companies in the world, resulting in strong employment in high paying fields elds with the highest average salary per worker ($98,430) iin n the state. Moreover, personal income in the county is also expected to grow by 22.7%. Silicon Valley also receives 50% - 60% of all Venture Capital funding nationwide. This is due in large part to a favorable business climate for start-ups, start the availabil availability ity of skilled labor, and an excellent secondary educational system. Area schools such as the University of California, Berkeley, Stanford University, San Jose State University, Santa Clara University, San Francisco State University, University of Californ California, ia, Santa Cruz, and California State University, East Bay pump thousands of engineering and computer science graduates into the local labor market every year. The multifamily rental market in Silicon Valley is expected to experience significant growth ove overr the coming years due to robust job growth, a young, mobile workforce, extraordinarily high single family housing prices, a chronic shortage of a affordable housing, and a chronically low development profile pro due to cost, permitting and land availability. These factors have caused rents to rise dramatically in 2011, with significant rent increases projected by local and national economists over the next five years. Moreover, institutional investors for large multifamily properties consisting of 100 or more units have reentered the market in high numbers and are reinvesting at an extremely aggressive rate, paying on average a 5.4% cap rate – one of the lowest rates for multifamily properties nationwide.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 7 of 23
Unit Mix Report
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
UNIT MIXES Units
Type
1 1 1 1 4
Approx. SqFt Avg. Rents
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
1000 700 700 700 3,100
$1,800 $1,200 $1,350 $1,300
UNIT MIX
Monthly $1,800 $1,200 $1,350 $1,300 $5,650
Mkt Rents
Monthly
$2,100 $1,600 $1,600 $1,600
$2,100 $1,600 $1,600 $1,600 $6,900
UNIT MIX SQUARE FEET ● ● ● ●
● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
UNIT MIX INCOME
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
UNIT MIX MARKET INCOME ● ● ● ●
● ● ● ●
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
3 BR / 2 BA 2 BR / 1 BA 2 BR / 1 BA 2 BR / 1 BA
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 8 of 23
4 units - 3147 Williamsburg
Property Photos
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Property Photos
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 9 of 23
4 units - 3147 Williamsburg
Maps and Aerials
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Location Maps
Regional Map
Neighborhood Map
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 10 of 23
4 units - 3147 Williamsburg
Maps and Aerials
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Aerial & Parcel Maps
Aerial Map
Parcel Map
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 11 of 23
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Financial Ananlysis
Annual Property Operating Data
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
Rental Income Miscellaneous Income
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$67,800
$69,834
$71,929
$74,087
$76,309
$78,599
$80,957
$83,385
$85,887
$88,464
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
GROSS SCHEDULED INCOME Turnover Vacancy
$71,400
$73,434
$75,529
$77,687
$79,909
$82,199
$84,557
$86,985
$89,487
$92,064
($2,034)
($2,095)
($2,158)
($2,223)
($2,289)
($2,358)
($2,429)
($2,502)
($2,577)
($2,654)
GROSS OPERATING INCOME
$69,366
$71,339
$73,371
$75,464
$77,620
$79,841
$82,128
$84,484
$86,910
$89,410
($12,462)
($12,587)
($12,712)
($12,840)
($12,968)
($13,098)
($13,229)
($13,361)
($13,495)
($13,630)
($2,628)
($2,707)
($2,788)
($2,872)
($2,958)
($3,047)
($3,138)
($3,232)
($3,329)
($3,429)
($2,550)
($2,627)
($2,705)
($2,786)
($2,870)
($2,956)
($3,045)
($3,136)
($3,230)
($3,327)
($2,550)
($2,627)
($2,705)
($2,786)
($2,870)
($2,956)
($3,045)
($3,136)
($3,230)
($3,327)
($900)
($927)
($955)
($983)
($1,013)
($1,043)
($1,075)
($1,107)
($1,140)
($1,174)
($300)
($309)
($318)
($328)
($338)
($348)
($358)
($369)
($380)
($391)
($2,100)
($2,163)
($2,228)
($2,295)
($2,364)
($2,434)
($2,508)
($2,583)
($2,660)
($2,740)
($600)
($618)
($637)
($656)
($675)
($696)
($716)
($738)
($760)
($783)
($175)
($180)
($186)
($191)
($197)
($203)
($209)
($215)
($222)
($228)
($24,265)
($24,744)
($25,234)
($25,737)
($26,252)
($26,781)
($27,322)
($27,877)
($28,446)
($29,030)
$45,101
$46,595
$48,137
$49,727
$51,368
$53,060
$54,806
$56,607
$58,464
$60,380
Expenses Property Taxes Insurance Utilities - Gas & Electric Utilities - Water & Sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits TOTAL OPERATING EXPENSES NET OPERATING INCOME
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 13 of 23
Cash Flow Analysis
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
GROSS SCHEDULED INCOME Turnover Vacancy Total Operating Expenses NET OPERATING INCOME Loan Payment
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$71,400
$73,434
$75,529
$77,687
$79,909
$82,199
$84,557
$86,985
$89,487
$92,064
($2,034)
($2,095)
($2,158)
($2,223)
($2,289)
($2,358)
($2,429)
($2,502)
($2,577)
($2,654)
($24,265)
($24,744)
($25,234)
($25,737)
($26,252)
($26,781)
($27,322)
($27,877)
($28,446)
($29,030)
$45,101
$46,595
$48,137
$49,727
$51,368
$53,060
$54,806
$56,607
$58,464
$60,380
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
($43,111)
$1,990
$3,485
$5,026
$6,617
$8,257
$9,950
$11,695
$13,496
$15,354
$17,269
0.60%
1.05%
1.51%
1.99%
2.48%
2.99%
3.52%
4.06%
4.62%
5.19%
$45,101
$46,595
$48,137
$49,727
$51,368
$53,060
$54,806
$56,607
$58,464
$60,380
($14,742)
($15,385)
($15,385)
($15,385)
($15,385)
($15,385)
($15,385)
($15,385)
($15,385)
($14,744)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($251)
($29,859)
($29,319)
($28,757)
($28,172)
($27,564)
($26,930)
($26,271)
($25,585)
($24,871)
($24,128)
NET CASH FLOW (b/t) Cash On Cash Return b/t NET OPERATING INCOME Depreciation Amortization Loan Interest
Year 2
TAXABLE INCOME (LOSS) Income Taxes CASH FLOW (a/t) Cash On Cash Return a/t
$249
$1,640
$3,744
$5,919
$8,168
$10,494
$12,899
$15,386
$17,957
$21,258
($108)
($712)
($1,625)
($2,569)
($3,545)
($4,554)
($5,598)
($6,677)
($7,793)
($9,226)
$1,882
$2,773
$3,401
$4,048
$4,712
$5,395
$6,097
$6,819
$7,560
$8,043
0.57%
0.83%
1.02%
1.22%
1.42%
1.62%
1.83%
2.05%
2.27%
2.42%
Footnotes: b/t = before taxes;a/t = after taxes
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 14 of 23
Financial Indicators
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Description
Michael Shields, CCIM, CCRM 408-354-7470
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
15.15
15.17
15.19
15.21
15.23
15.25
15.27
15.29
15.31
15.33
Capitalization Rate
4.30%
4.44%
4.58%
4.74%
4.89%
5.05%
5.22%
5.39%
5.57%
5.75%
Cash On Cash Return b/t
0.60%
1.05%
1.51%
1.99%
2.48%
2.99%
3.52%
4.06%
4.62%
5.19%
Cash On Cash Return a/t
0.57%
0.83%
1.02%
1.22%
1.42%
1.62%
1.83%
2.05%
2.27%
2.42%
1.05
1.08
1.12
1.15
1.19
1.23
1.27
1.31
1.36
1.40
Gross Income per Sq. Ft.
$22.16
$22.79
$23.44
$24.11
$24.80
$25.51
$26.24
$27.00
$27.77
$28.57
Expenses per Sq. Ft.
($7.53)
($7.68)
($7.83)
($7.99)
($8.15)
($8.31)
($8.48)
($8.65)
($8.83)
($9.01)
23.98
23.91
23.84
23.77
23.70
23.63
23.56
23.50
23.43
23.37
Operating Expense Ratio
34.98%
34.68%
34.39%
34.10%
33.82%
33.54%
33.27%
33.00%
32.73%
32.47%
Loan To Value Ratio
68.35%
65.12%
61.98%
58.91%
55.91%
53.00%
50.15%
47.37%
44.66%
42.01%
Gross Rent Multiplier
Debt Coverage Ratio
Net Income Multiplier
Footnotes: b/t = before taxes; a/t = after taxes
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 15 of 23
Loan Analysis
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Description
Year 1
LOAN 1 Debt Service Analysis Principal Payments Interest Payments Total Debt Service Principal Balance Analysis Beginning Principal Balance Principal Reductions Ending Principal Balance
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$13,252
$13,792
$14,354
$14,938
$15,547
$16,180
$16,840
$17,526
$18,240
$18,983
$29,859
$29,319
$28,757
$28,172
$27,564
$26,930
$26,271
$25,585
$24,871
$24,128
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$43,111
$752,500
$739,248
$725,457
$711,103
$696,165
$680,618
$664,437
$647,598
$630,072
$611,832
$13,252
$13,792
$14,354
$14,938
$15,547
$16,180
$16,840
$17,526
$18,240
$18,983
$739,248
$725,457
$711,103
$696,165
$680,618
$664,437
$647,598
$630,072
$611,832
$592,849
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 16 of 23
Pro Forma Summary
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
UNIT MIX & ANNUAL SCHEDULED INCOME Type
Units
Actual
Total
Market
Total
3 BR / 2 BA
1
$21,600
$21,600
$25,200
$25,200
2 BR / 1 BA
1
$14,400
$14,400
$19,200
$19,200
2 BR / 1 BA
1
$16,200
$16,200
$19,200
$19,200
2 BR / 1 BA
1
$15,600
$15,600
$19,200
$19,200
TOTALS
4
$67,800
$82,800
ANNUALIZED INCOME Actual
INVESTMENT SUMMARY Price:
$1,050,000
Year Built: Units:
1962 4
Price/Unit: RSF:
$262,500 3,222
Price/RSF:
$325.88
Lot Size:
8,976 sf
Floors:
2
Parking Spaces: APN:
305-02-038 4.3%
Market Cap Rate:
5.8%
GRM:
14.71
Market GRM:
12.15
FINANCING SUMMARY Loan Amount:
$752,500
Down Payment:
$322,500
Interest Rate: Term:
DCR:
Fixed
Market $82,800 ($2,484) $3,600 $83,916 ($23,037) $60,879 ($43,111) $17,768 $13,252 $31,020
ANNUALIZED EXPENSES Actual
Market
Property Taxes Insurance Utilities - Gas & Electric Utilities - Water & Sewer Trash Removal Landscaping Maintenance & Repairs Miscellaneous License/permits
$12,462 $2,628 $2,550 $2,550 $900 $300 $2,100 $600 $175
$12,462 $1,400 $2,550 $2,550 $900 $300 $2,100 $600 $175
Total Expenses Expenses Per RSF Expenses Per Unit
$24,265 $7.53 $6,066
$23,037 $7.15 $5,759
4% 30 years
Monthly Payment:
$67,800 ($2,034) $3,600 $69,366 ($24,265) $45,101 ($43,111) $1,990 $13,252 $15,242
1.5/unit
Cap Rate:
Loan Type:
Gross Potential Rent Less: Vacancy Misc. Income Effective Gross Income Less: Expenses Net Operating Income Debt Service Net Cash Flow after Debt Service Principal Reduction Total Return
$3,593 1.05
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 17 of 23
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Comparables
Sales Comparables
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
Cap Rate
Gross Rent Multiplier
8%
24.0
7%
21.0
6%
18.0
5%
15.0
Avg. 16.271
Avg. 4%
12.0
4.151
3%
9.0
2%
6.0
1%
3.0
Subject
1
2
3
4
5
6
7
Subject
1
Price per Unit
2
3
4
5
6
7
Price per Sq. Ft.
$360,000
$384 Avg.
$315,000
Avg.
$336
$311,259
$331.14
$270,000
$288
$225,000
$240
$180,000
$192
$135,000
$144
$90,000
$96
$45,000
$48
Subject
1
2
3
4
5
6
7
Subject
1
2
3
4
5
6
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 19 of 23
7
4 units - 3147 Williamsburg
Sales Comparables
3147 Williamsburg Dr San Jose, CA 95117 S
Michael Shields, CCIM, CCRM 408-354-7470
4 units - 3147 Williamsburg 3147 Williamsburg Dr San Jose, CA 95117 Sale Price
$1,050,000
# Units
Unit Type
Units
4
1
3 BR / 2 BA
Price/Unit
$262,500
1
2 BR / 1 BA
Price/SqFt
$325.88
1
2 BR / 1 BA
Cap Rate
4.3%
1
2 BR / 1 BA
Year Built
1962
GRM
14.71
NOTES UPSIDE RENT POTENTIAL! Carport, Double-Paned Windows, Close to shopping and commuter routes.
1
1321 Jonathan st Santa Clara, CA 95050
Sale Date 3/22/2014
Sale Price
$1,435,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$358,750
3
Two Bedroom Two Bath
Price/SqFt
$364.77
Cap Rate
3.21%
Year Built
1976
GRM
18.4
NOTES Upgrades include copper plumb, Comp roof, ext. paint, driveway asphalt. 3br/2ba recent remodel -Kit & Ba. Granite counters/new appliances/carpet/linoleum/window coverings/toilets/sinks/ paint.
2
Bertini Ct Fourplex 3796 Bertini Ct San Jose, CA 95117
Sale Date 4/2/2014
Sale Price
$1,255,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$313,750
2
Two Bedroom One Bath
Price/SqFt
$309.27
Cap Rate
3.0%
Year Built
1976
GRM
19.4
NOTES similar unit mix
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 20 of 23
4 units - 3147 Williamsburg
Sales Comparables
3147 Williamsburg Dr San Jose, CA 95117 3
Michael Shields, CCIM, CCRM 408-354-7470
1414 Essex Way Campbell, CA 950117 Sale Price
Sale Date 2/11/2014
$1,250,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$312,500
1
Two Bedroom Two Bath
Price/SqFt
$318.23
2
Two Bedroom One Bath
Cap Rate
4.21%
Year Built
1967
GRM
16.9
NOTES Front unit has 3 br 2 ba. Other units are 2/2, 2/1, 2/1.
4
Fourplex in Campbell 3194 Moorpark Campbell, CA 95117
Sale Date 2/21/2014
Sale Price
$1,190,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$297,500
1
Two Bedroom Two Bath
Price/SqFt
$379.46
2
Two Bedroom One Bath
Cap Rate
4.61%
Year Built
1958
GRM
14.7
NOTES (1) 3/2 (1) 2/2 (2) 2/1
5
Campbell Fourplex 3685 Cape Cod Court Campbell, CA 95117
Sale Date 3/11/2014
Sale Price
$1,150,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$287,500
3
Two Bedroom One Bath
Price/SqFt
$320.87
Cap Rate
5.65%
Year Built
1964
GRM
13.0
NOTES (1)3/2 (3) 2/1
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 21 of 23
4 units - 3147 Williamsburg
Sales Comparables
3147 Williamsburg Dr San Jose, CA 95117 6
Michael Shields, CCIM, CCRM 408-354-7470
Fourplex 1307 Saratoga Ave 1307 Saratoga Ave San Jose, CA
Sale Date 8/6/2013
Sale Price
$1,210,000
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$302,500
2
Two Bedroom One Bath
Price/SqFt
$286.53
1
One Bedroom One Bath
Cap Rate
4.8%
Year Built
1968
GRM
14.0
$1,225,250
# Units
Unit Type
Units
4
1
Three Bedroom Two Bath
Price/Unit
$306,313
3
Two Bedroom One Bath
Price/SqFt
$338.84
Cap Rate
3.58%
Year Built
1964
GRM
17.5
NOTES Unit Mix: (1) 3/2 remodeled (2) 2/1.5 units
7
San Jose Fourplex on Auburn 405 Auburn Way San Jose, CA 95129 Sale Price
Sale Date 9/20/2013 NOTES Similar Unit mix & size.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 22 of 23
4 units - 3147 Williamsburg
Sales Comparables
3147 Williamsburg Dr San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
1
3147 Williamsburg Dr, San Jose, CA 95117 ($1,050,000)
A
1321 Jonathan st, Santa Clara, CA 95050 ($1,435,000)
B
3796 Bertini Ct, San Jose, CA 95117 ($1,255,000)
C
1414 Essex Way, Campbell, CA 950117 ($1,250,000)
D
3194 Moorpark, Campbell, CA 95117 ($1,190,000)
E
3685 Cape Cod Court, Campbell, CA 95117 ($1,150,000)
F
1307 Saratoga Ave, San Jose, CA ($1,210,000)
G
405 Auburn Way, San Jose, CA 95129 ($1,225,250)
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
page 23 of 23
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Demographics
Executive Summary 3147 Williamsburg Dr, San Jose, California, 95117 Rings: 0.5, 1, 2 mile radii 0.5 miles
Prepared by Michael Shields Latitude: 37.297807519 Longitude: -121.9515593 1 mile
2 miles
Population 2000 Population 2010 Population 2013 Population 2018 Population 2000-2010 Annual Rate 2010-2013 Annual Rate 2013-2018 Annual Rate 2013 Male Population 2013 Female Population 2013 Median Age
11,339 11,763 11,998 12,605 0.37% 0.61% 0.99%
29,425 30,127 30,756 32,300 0.24% 0.64% 0.98%
109,097 112,376 114,071 119,264 0.30% 0.46% 0.89%
51.1% 48.9% 32.6
49.9% 50.1% 35.6
50.0% 50.0% 36.0
In the identified area, the current year population is 114,071. In 2010, the Census count in the area was 112,376. The rate of change since 2010 was 0.46% annually. The five-year projection for the population in the area is 119,264 representing a change of 0.89% annually from 2013 to 2018. Currently, the population is 50.0% male and 50.0% female. Median Age The median age in this area is 36.0, compared to U.S. median age of 37.3. Race and Ethnicity 2013 White Alone
51.1%
56.4%
55.6%
2013 Black Alone
5.5%
4.4%
4.6%
2013 American Indian/Alaska Native Alone
1.0%
0.8%
0.9%
15.3%
17.0%
19.4%
2013 Asian Alone 2013 Pacific Islander Alone 2013 Other Race 2013 Two or More Races 2013 Hispanic Origin (Any Race)
0.4%
0.4%
0.6%
21.4%
15.4%
13.1%
5.3%
5.6%
5.9%
44.7%
32.5%
28.4%
Persons of Hispanic origin represent 28.4% of the population in the identified area compared to 17.4% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 79.3 in the identified area, compared to 62.1 for the U.S. as a whole. Households 2000 Households
4,033
11,206
43,366
2010 Households
4,045
11,315
44,503
2013 Total Households
4,117
11,551
45,178
2018 Total Households
4,319
12,135
47,285
2000-2010 Annual Rate
0.03%
0.10%
0.26%
2010-2013 Annual Rate
0.55%
0.64%
0.46%
2013-2018 Annual Rate
0.96%
0.99%
0.92%
2.86
2.63
2.50
2013 Average Household Size
The household count in this area has changed from 44,503 in 2010 to 45,178 in the current year, a change of 0.46% annually. The five-year projection of households is 47,285, a change of 0.92% annually from the current year total. Average household size is currently 2.50, compared to 2.50 in the year 2010. The number of families in the current year is 27,226 in the specified area.
Data Note: Income is expressed in current dollars Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and 2018. Esri converted Census 2000 data into 2010 geography.
January 03, 2014 ©2014 Esri
Page 1 of 2
Executive Summary 3147 Williamsburg Dr, San Jose, California, 95117 Rings: 0.5, 1, 2 mile radii 0.5 miles
Prepared by Michael Shields Latitude: 37.297807519 Longitude: -121.9515593 1 mile
2 miles
Median Household Income 2013 Median Household Income 2018 Median Household Income 2013-2018 Annual Rate Average Household Income
$52,342 $61,835 3.39%
$62,020 $77,841 4.65%
$63,703 $77,968 4.12%
2013 Average Household Income 2018 Average Household Income 2013-2018 Annual Rate Per Capita Income
$72,416 $84,232 3.07%
$86,485 $101,776 3.31%
$90,411 $106,353 3.30%
$25,486 $29,497 2.97%
$32,993 $38,767 3.28%
$35,910 $42,247 3.30%
2013 Per Capita Income 2018 Per Capita Income 2013-2018 Annual Rate Households by Income
Current median household income is $63,703 in the area, compared to $51,314 for all U.S. households. Median household income is projected to be $77,968 in five years, compared to $59,580 for all U.S. households Current average household income is $90,411 in this area, compared to $71,842 for all U.S households. Average household income is projected to be $106,353 in five years, compared to $83,667 for all U.S. households Current per capita income is $35,910 in the area, compared to the U.S. per capita income of $27,567. The per capita income is projected to be $42,247 in five years, compared to $32,073 for all U.S. households Housing 2000 Total Housing Units 2000 Owner Occupied Housing Units 2000 Owner Occupied Housing Units 2000 Vacant Housing Units 2010 Total Housing Units 2010 Owner Occupied Housing Units 2010 Renter Occupied Housing Units 2010 Vacant Housing Units 2013 Total Housing Units 2013 Owner Occupied Housing Units 2013 Renter Occupied Housing Units 2013 Vacant Housing Units 2018 Total Housing Units 2018 Owner Occupied Housing Units 2018 Renter Occupied Housing Units 2018 Vacant Housing Units
4,064 1,164 2,869 31 4,199 1,225 2,820 154 4,226 1,176 2,941 109 4,420 1,259 3,061 101
11,418 4,740 6,466 212 11,788 4,910 6,405 473 11,915 4,796 6,755 364 12,521 5,147 6,988 386
44,302 17,816 25,550 936 46,589 18,364 26,139 2,086 47,118 17,853 27,325 1,940 49,454 19,075 28,210 2,169
Currently, 37.9% of the 47,118 housing units in the area are owner occupied; 58.0%, renter occupied; and 4.1% are vacant. Currently, in the U.S., 56.4% of the housing units in the area are owner occupied; 32.3% are renter occupied; and 11.3% are vacant. In 2010, there were 46,589 housing units in the area - 39.4% owner occupied, 56.1% renter occupied, and 4.5% vacant. The annual rate of change in housing units since 2010 is 0.50%. Median home value in the area is $556,887, compared to a median home value of $177,257 for the U.S. In five years, median value is projected to change by 3.94% annually to $675,513.
Data Note: Income is expressed in current dollars Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and 2018. Esri converted Census 2000 data into 2010 geography.
January 03, 2014 ©2014 Esri
Page 2 of 2
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Disclaimer
Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
DISCLAIMER All materials and information received or derived from Silicon Valley Multifamily Group its directors, officers, agents, advisors, affiliates, and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither Silicon Valley Multifamily Group its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significant chance to such party. Silicon Valley Multifamily Group will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. Seller desires to sell the property in "its present as is condition" subject to inspection reports. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Silicon Valley Multifamily Group makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Silicon Valley Multifamily Group does not serve as a financial advisor to any party regarding any proposed transaction. When analyzing this property buyer should use income, vacancy and expense levels that will accurately reflect the manner in which it plans to operate the property. Broker, Agent and Seller are making no representations or warranties as to the level of income or expenses Buyer will incur at the property. Building square footage, unit square footage and lot sizes are not guaranteed. Broker, Agent and Seller have not measured all units, lot or the building and are making NO representation as to the accuracy of square footage figures. Data source for building and lot size is FastWeb. Buyer should measure all units, lot and the building prior to purchase and should not rely on any square footage figures provided by Broker, Agent or Seller. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. • Do Not Disturb -- Please respect the Seller's request that the tenants not be disturbed. All offers are to be written subject to inspection. The Seller will provide access for the Buyer to inspect the interiors of all units within a reasonable period following a fully executed purchase contract. Seller requests that all inspections be made on the same day. • Representation -- This information is given with the understanding that all negotiations relating to the purchase of the property described herein shall be conducted through Silicon Valley Multifamily Group. All properties and services are marketed by Silicon Valley Multifamily Group in compliance with all applicable fair housing and equal opportunity laws.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
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Williamsburg Portfolio 3139 & 3147 Willamsburg Dr. San Jose, CA 95117
Michael Shields, CCIM, CCRM 408-354-7470
OFFERING MEMORANDUM NOTES Gross Annual Scheduled Income & the Gross Rent Multiplier are based on current rents shown in the Rent Roll. These rent levels are current rent levels at the time this package was prepared and subject to change without notice. Buyer should review most recent rent roll prior to purchase. The laundry income was based on 2011 actual levels. Gross Annual Scheduled Income & Gross Income Multiplier (Market or Pro Forma) assumes the units are all rented at the rent levels shown in the Pro Form Summary. These rent levels are not guaranteed to be achievable by Seller, Broker or Agent. Buyer should use rent levels it thinks it can obtain for the subject property. The laundry income was based on the actual 2011 laundry income reported by the owner. Capitalization Rate is based on rents, expenses and vacancy figures shown in the Operating Statement. Pro Forma Capitalization Rate is based on rents, expenses and vacancy figures shown in the Pro-Forma Operating Statement Pro-Forma (Market) column. See Pro Forma Operating Statement Footnotes and Disclaimers in this section of the Offering Memorandum. Year Built: Data source is through Chicago Title Company. Seller, Broker and Agent are making no guarantee or representations as to when the improvements were built. Buyer should conduct its own investigation to determine age of improvements. UNIT MIX/SCHEDULED INCOME OVERVIEW FOOTNOTES Current Rent Column is based on current rents shown in the Rent Roll. These rent levels are current rent levels at the time this package was prepared and subject to change without notice. Buyer should review most recent rent roll prior to purchase. Pro Forma or Market Rents assumes the units are all rented at the estimated market rent levels shown in the rent roll. Please note that current rents are not at these levels. Pro Forma rent levels are not guaranteed to be achievable by Seller, Broker or Agent. Buyer should use rent levels it thinks it can obtain for the subject property. Purchase Information on page 4 including Fair Market Value, Resale Valuation and Resale Expenses are provided for illustrative purposes only and will vary depending on market conditions and other factors. Silicon Valley Multifamily Group, its Brokers and Agents can not be held accountable for these numbers. Buyer should use the numbers it thinks most appropriate. Financial Information on page 4 including Down Payment, Closing Costs, LT Capital Gain, Federal and State Tax Rates and the Discount Rate are provided for illustrative purposes only. Actual numbers may, and probably will, vary depending on the Buyer’s individual situation. Loans on page 4. This information is provided for illustrative purposes only. Buyer should use the loan information it thinks attainable and realistic for the property. Annual Property Operating Data Notes and Disclaimers Rental Income is based on current rents shown in the Rent Roll Miscellaneous income is based upon information provided by the owner or manager. General Vacancy is estimated to be at current market levels or provided by owner. Taxes are estimated based on list price and based on 2011/2012 tax rate reported by Santa Clara County. Other Expenses All other expenses are as reported by owner or property manager. Loan Payment is based upon information provided in the LOANS section of page 4. Buyer should use the loan information it thinks attainable and realistic for the property. Income Taxes is based upon a 33% or greater tax rate and is provided for illustrative purposes only. Buyer should consult with a licensed tax professional in determining the most realistic and appropriate tax rate. NOTE: THE 10 YEAR PROJECTIONS ARE PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY. BUYER SHOULD USE THE PROJECTIONS IT THINKS ARE REALISTIC AND ATTAINABLE. Rent Roll Notes General Notes: Rent levels, occupancy, deposit amounts and terms are subject to change without notice. Move-In dates are subject to change as units turnover. Buyer should obtain updated information and confirm all rent levels, lease terms, move-in dates, amount of last rental adjustment and deposit amounts prior to purchase. Market Rent column does not reflect current rent levels. These rent levels are not guaranteed to be achievable by Seller, Broker or Agents. Buyer should use rent levels it thinks it can obtain for the subject property.
The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.
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