multifamily om (l)€¦ · location information building name southport apartments street address...

O F F E R I N G M E M O R A N D U M

SOUTHPORT APARTMENTS460 Canal St, San Rafael, CA 94901

460 Canal StSan Rafael, CA 94901

Joby TapiaManaging Director

O: [email protected]

CalDRE #01307460

03PROPERTYINFORMATION

08LOCATIONINFORMATION

17FINANCIALANALYSIS

22SALECOMPARABLES

29DEMOGRAPHICS

31BROKER BIO

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Table of Contents

Property Inform

ation

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Property Information

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Executive Summary

PRICE$4,000,000

SQ FT15,540 SF

CAP RATE4.21%

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Property Highlights

• Well-maintained with clear pride of ownership

• Elevator jack recently replaced in 2016

• Main sewer line recently replaced in 2019

• Pool with relaxing landscaping

• Dock with 8 slips (optional access)

• Gated off-street parking

Other Details

Lot Size: 17,860 SF

Price / SF: $257.40

NOI: $168,343

Year Built: 1965

Zoning: Multiple-Residential - Improved

Market: Marin

Submarket: San Rafael

Property Description

Offered for the first time in over 40 years, Southport Apartments at 460Canal St in San Rafael, CA, presents the opportunity to acquire apride-of-ownership property with achievable upside on in-place rents.The property is comprised of 13 large apartments, all with their owndecks, with five of the units having waterfront views of the canal. Theproperty also includes a dock with eight slips that can be used togenerate additional ancillary income.

Location Description

The Canal Waterfront, historically built in the 1950's as a housing entrypoint for recent college graduates has transformed over the years as ithas become one of the last affordable housing neighborhoods in MarinCounty.

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Property Description

Location Information

Building Name Southport Apartments

Street Address 460 Canal St

City, State, Zip San Rafael, CA 94901

County Marin

Market Marin

Sub-market San Rafael

Cross-Streets Hoag St

Signal Intersection No

Building Information

NOI $168,343.60

Cap Rate 4.21

Occupancy % 100.0%

Tenancy Multiple

Ceiling Height 8 ft

Minimum Ceiling Height 8 ft

Number of Floors 3

Average Floor Size 6,835 SF

Year Built 1965

Roof Tar and Gravel

Free Standing No

Number of Buildings 1

Property Highlights

• Well-maintained with clear pride of ownership

• Elevator jack recently replaced in 2016

• Main sewer line recently replaced in 2019

• Pool with relaxing landscaping

• Dock with 8 slips (optional access)

• Gated off-street parking

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Complete Highlights

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Additional Photos


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Regional Map

San Rafael, CA

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Location Maps

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Aerial Maps

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Site Plan

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Site Plan

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Floor Plans

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Floor Plans

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Floor Plans

Financial Analysis

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Financial Analysis

Investment Overview Current

Price $4,000,000

Price per Unit $307,692

GRM 14.1

CAP Rate 4.2%

Cash-on-Cash Return (yr 1) 1.98 %

Total Return (yr 1) $74,309

Debt Coverage Ratio 1.23

Operating Data Current

Gross Scheduled Income $284,580

Other Income $800

Total Scheduled Income $285,380

Vacancy Cost $8,537

Gross Income $276,842

Operating Expenses $108,499

Net Operating Income $168,343

Pre-Tax Cash Flow $31,676

Financing Data Current

Down Payment $1,600,000

Loan Amount $2,400,000

Debt Service $136,667

Debt Service Monthly $11,388

Principal Reduction (yr 1) $42,633

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Financial Summary

Income Summary Current

Rental Income $284,580

Laundry Contract $800

Market Rental Income -

Laundry -

Gross Income $285,380

Expense Summary Current

NEW Property Taxes $46,995

Special Assessments $14,914

Insurance (Estimate) $9,600

Maintenance (Est. @ $600/unit) $7,800

Elevator $1,400

Reserves (Est. @ $250/unit) $3,250

Water $3,750

Trash $6,200

PG&E $4,200

Business Licenses and Permits $1,675

Management (Est. @ 3%) $8,715

Gross Expenses $108,499

Net Operating Income $168,343

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Income & Expenses

UnitNumber

UnitBed

UnitBath

UnitSize (SF)

CurrentRent

CurrentRent (Per SF)

MarketRent

MarketRent/SF

A 2 1 1,020 $2,500 $2.45 $2,800 $2.75

1 2 1 1,020 $2,325 $2.28 $3,000 $2.94

2 2 1 1,055 $2,550 $2.42 $3,000 $2.84

3 0 1 607 $1,147 $1.89 $1,800 $2.97

4 1 1 842 $0 $0.00 $2,200 $2.61

5 1 1 840 $1,668 $1.99 $2,200 $2.62

6 2 1 977 $1,860 $1.90 $2,600 $2.66

7 2 1 1,020 $2,500 $2.45 $3,000 $2.94

8 2 1 1,055 $2,550 $2.42 $3,000 $2.84

9 0 1 607 $920 $1.52 $1,800 $2.97

10 1 1 842 $1,800 $2.14 $2,200 $2.61

11 1 1 840 $1,800 $2.14 $2,200 $2.62

12 2 1 977 $2,095 $2.14 $2,600 $2.66

Totals/Averages 11,702 $23,715 $2.03 $32,400 $2.77

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Rent Roll

Unit Type Count % Total Size (SF) Rent Rent/SF Market Rent Market Rent/SF Deposit

2 BR 7 53.8 1,018 $2,340 $2.30 $2,800 $2.75

1 BR 4 30.8 841 $1,750 $2.08 $2,200 $2.62

Studio 2 15.4 607 $1,034 $1.70 $1,800 $2.97

Totals/Averages 13 100% 11,704 $25,448 $2.17 $32,000 $2.73 $0

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Unit Mix Summary

Sale C

omparables

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Sale Comparables

Subject Property460 Canal St | San Rafael, CA 94901

$4,000,000Sale Price: $168,343NOI: 4.21%CAP:

14.06GRM: $307,692Price / Unit: 13No. Units:

$257.40Price PSF: 15,540 SFBuilding SF: 1965Year Built:

Offered for the first time in over 40 years, Southport Apartments at 460 Canal St in San Rafael, CA, presents the opportunity to acquire apride-of-ownership property with achievable upside on in-place rents. The property is comprised of 13 large apartments, all with their own decks, withfive of the units having waterfront views of the canal. The property also includes a dock with eight slips that can be used to generate additional ancillaryincome.

1150 Belvedere St.San Rafael, CA 94901

$5,800,000Sale Price: 12.65GRM: 11/08/2019Closed:

3.69%CAP: $207,142Price / Unit: 28No. Units:

$376.62Price PSF: 15,400 SFBuilding SF: 0 AcresLot Size:

The comparable property is located on Belvedere St. mid-block between Vivian St. and Louise St. in the Canal Neighborhood of San Rafael. It iscomprised of (28) 1bd/1ba apartments on the smaller side at approx. 550 SF each. In place rents that were at 25-30% below market presenting avalue-add opportunity for the buyer to increase rents. The property was in good overall condition and 100% occupied at close of escrow.

1

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Sale Comps

2285 Woodland Ave.San Rafael, CA 94901




0 AcresLot Size:

The comparable property is located on a hilltop setting set back from Woodland Ave. overlooking Gerstle Park and Downtown San Rafael. It iscomprised of (20) fully occupied units consisting of large units with (4) 2bd/2ba, (4) 2bd/1ba, (8) 1bd/1ba, and (4) Studios. The modern building is 3-floorswith garages on the first floor and (2) floors of apartments served by (1) elevator and stairs. Apartments are separately metered for PG&E, contain viewdecks or patios, larger kitchens with dishwashers, baseboard heating, dual pane windows, and sliding glass doors. The roof was replaced 1-year priorto sale and the property was in overall good condition but the units have not been recently upgraded. There was an on-site coin-op laundry room.There was approximately 25% upside in the rents at the close of escrow.

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Sale Comps

3289 Woodland Ave.San Rafael, CA 94901




0 AcresLot Size:

The subject property is located on steep lot located at Woodland Ave. and Lindaro St. adjacent to Gerstle Park. There were two buildings, a 2 and 4unit, on one parcel. It is comprised of (5) 2 bd/1ba apartments of varying sizes and (1) 2 bd/1.5ba owner’s unit, a large single car garage and severaldetached storage units. The hilltop building featured forced air HVAC and offered views spanning to the bay and beyond. 4 of 6 units had expansiveand private decks. Two units had been extensively renovated; the remaining four units were in average condition; overall property condition was good.The seller gave a price concession because the buyer’s agent wasn’t paid a commission, buyer assumed seller’s loan and gave a short-term lease backto seller. Price of record was $2.305MM but the equivalent net price to seller was $2.408MM. Seller represented by Geller-Williams Team of NAINorCal.

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41315 Lincoln Ave.San Rafael, CA 94901




0 AcresLot Size:

The comparable property is located on the West side of Lincoln Ave. mid-block between Laurel Pl. and Pacheco St. It is comprised of (16) unitsconsisting of (16) 1bd/1ba units of approximately 750 SF which were well maintained but in dated condition. The rents were at least 15% below market asconfirmed by the buyer. The property was in good overall condition and 100% occupied at close. The sale was conducted as an “off-market”transaction.

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Sale Comps

528 Ross St.San Rafael, CA 94901




0 AcresLot Size:

The comparable property is located on Ross St. mid-block between Marin St. and D St. in the Gerstle Park Neighborhood of San Rafael. It is comprisedof (7) units consisting of (7) Jr. 1bd/1ba units. (4) units were updated with quartz counters, travertine flooring, appliances, and backsplashes. (4) of theunits also contained patios/decks, fireplaces and (1) carport. All units were in excellent condition with separate metering for PG&E and onsite coin-oplaundry. The exterior was in well maintained condition and was freshly painted prior to sale. There was approximately 10% upside in the rents at theclose of escrow.

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Sale Comps

Subject Property Price Bldg SF Price/SF Price/Unit CAP GRM # of Units

Southport Apartments460 Canal StSan Rafael, CA 94901

$4,000,000 15,540 SF $257.40 $307,692 4.21% 14.06 13

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

1150 Belvedere St.San Rafael, CA94901

$5,800,000 15,400 SF $376.62 $207,142 3.69% 12.65 28 11/08/2019

2285 Woodland Ave.San Rafael, CA94901

$7,100,000 17,158 SF $413.80 $355,000 3.55% 16.34 20 08/16/2019

3289 Woodland Ave.San Rafael, CA94901

$2,408,000 4,731 SF $508.98 $401,333 5.25% 12.52 6 10/15/2018

41315 Lincoln Ave.San Rafael, CA94901

$5,150,000 12,000 SF $429.17 $321,875 3.93% 15.06 16 07/19/2019

528 Ross St.San Rafael, CA94901

$2,100,000 3,142 SF $668.36 $300,000 3.61% 15.11 7 08/07/2019

Price Bldg SF Price/SF Price/UNIT CAP GRM # of Units Close

Totals/Averages $4,511,600 10,486 SF $430.25 $292,961 4.01% 14.34 15.4

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Sale Comps Summary

1San Rafael, CA94901

150 Belvedere St. 2San Rafael, CA94901

285 Woodland Ave.


289 Woodland Ave. 4San Rafael, CA94901

1315 Lincoln Ave.


28 Ross St.

460 Canal St | San Rafael, CA 94901Subject Property

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Sale Comps Map

Dem

ographics

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Demographics

Population 0.25 Miles 0.5 Miles 1 Mile

Total Population 3,257 8,048 16,583

Median age 28.4 29.8 33.0

Median age (Male) 27.7 29.2 32.6

Median age (Female) 29.5 30.8 33.8

Households & Income 0.25 Miles 0.5 Miles 1 Mile

Total households 876 2,306 5,410

# of persons per HH 3.7 3.5 3.1

Average HH income $57,102 $66,500 $84,611

Average house value $959,126 $945,971 $945,921

* Demographic data derived from 2010 US Census

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Demographics Map & Report

Broker B

io

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Broker Bio

CalDRE #01307460

Joby Tapia

Managing Director

[email protected]: 415.329.4623 | Cell: 415.254.4788

Professional Background

Joby is an accomplished Multifamily Executive with over 20 years experience managing commercial and multi-family assets, including market rate andrent-controlled properties, for both private and institutional owners in Northern California. Prior to joining NAI NorCal, Joby managed several portfoliosthat consisted of mid- and high-rise construction and several rent-controlled, stabilized assets. In addition, his experience included oversight of large,garden-style properties and commercial high-rise buildings with total units ranging from 2,500 to 5,500. With his strategic, creative and entrepreneurialskill set, he was able to generate millions of dollars in excess value by implementing budget-appropriate measures to generate the best possiblemarket rent while maintaining a strong focus on the ROI of renovation/turnover dollars.

Joby possesses excellent written and verbal communication skills across all levels of an organization and clientele. His detail-oriented and analyticalapproach can leverage his operational and market expertise to support acquisition (or disposition) feasibility and due diligence.

Education

Meteorology, University of MassachusettsFinance, San Francisco State University

Memberships

Secretary, Marin Rental Property AssociationPast member of the Coalition for Better Housing’s Executive CommitteeCalifornia Apartment Association certified instructor for CCRM designation courseworkGuardsmen (Benefit at-risk youths in San Francisco)

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Presenting Broker

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