premiere lifestyle property...a male householder with no wife present. there were 1,802 (8.3%)...
TRANSCRIPT
Listed for $3,250,000
PREMIERE LIFESTYLE PROPERTY
MAIN STREETCOMMERCIAL
404 High Street | Santa Cruz, CA | 6 UNITS
© 2017 Main Street Realtors. The information contained in this document has been obtained from sources believed reliable. It is your responsability to independently confirm its accuracy and completeness. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
TABLE of CONTENTS
EXCLUSIVELY LISTED by:
Datta Khalsa CABB Cal BRE# 01161050Broker/Owner || Main Street RealtorsFund Manager || Firmus FinancialT (831)818-0181 || F (831)401-2557E-Mail: [email protected]
Main Street Realtors2567 Main StreetSanta Cruz, CA 95062
MAIN STREETCOMMERCIAL
EXECUTIVE SUMMARYOffering SummaryMarket AnalysisInvestment Analysis
LOCATION OVERVIEWAerial MapSite Plan with Unit Floor PlansParcel Map
AREA INFORMATION
PROFILE
3
6
9
11
EXECUTIVE SUMMARY
• Existing Rents: $201,600 / 16.1 GRM
• Pro Forma Rents: $210,000 / 15.5 GRM
• New Operating/Pro Forma Cap Rate: 3.7% /4%
• Building Size: 5,587 SF, per Assesor
• Price per Unit: $541,000
• Price per SF: $607.82 MAIN STREETCOMMERCIAL
404 High Street | Santa Cruz, CA
Premiere lifestyle property with 5 spacious units plus a hip studio on the upper Westside. Enjoys panoramic bay views of Monterey Bay and city lights on a lushly landscaped half acre parcel, within walking distance of Pogonip and downtown Santa Cruz, along the bus line to UCSC. Well-maintained building with Romex wiring and copper plumbing. Comp shingle roof replaced 6 years ago, parking lot re-sealed every 2-3 years, and front retaining wall replaced last year at cost of $80K.
EXECUTIVE SUMMARYMarket Analysis
Quick Summary of Comparable Properties
Commercial Multi-Residential (5+ units) Summary
Comm. Five or More UnitsACTIVE
Address City SqFt Lot (SF) Age$/SqFtDOM List Price
101 Grand Avenue $16,000,00020,787117 $769.71 53Capitola 27,835 (sf)404 High Street $3,250,0005,3479 $607.82 49Santa Cruz 24,045 (sf)
ACTIVE
# LISTINGS: AVG VALUES: 63 $9,625,0002 5113,067 $688.76 25,940 (sf)
PENDING
Address City SqFt Lot (SF) Age$/SqFtDOM List Price
5050 Wilder Drive $3,200,0009,76067 $327.87 36Soquel 25,483 (sf)
PENDING
# LISTINGS: AVG VALUES: 67 $3,200,0001 369,760 $327.87 25,483 (sf)
SOLD
Address City SqFt Lot (SF) Age Sale Price$/SqFtDOM List Price COE
120-126 San Jose Avenue $3,295,0004,678459 $673.36 125 $3,150,000 06/20/17Capitola 2,614 (sf)2303 Portola Drive $1,799,0003,76311 $504.92 83 $1,900,000 06/23/17Santa Cruz 18,774 (sf)208 Terrace Way $1,750,0003,07224 $559.90 70 $1,720,000 03/17/17Capitola 4,182 (sf)7362 Mesa Drive $1,799,0003,20849 $486.28 70 $1,560,000 06/30/17Aptos 13,765 (sf)
SOLD
# LISTINGS: AVG VALUES: 136 $2,160,750 $2,082,5004 873,680 $556.12 9,834 (sf)
$2,082,500 69$4,441,857105AVG VALUES FOR ALL:7# LISTINGS TOTAL: $561.417,231 16,671 (sf)
List PriceMax
$16,000,000$1,750,000 $3,200,000Min Median
Quick Statistics ( 7 Listings Total )
Sale Price $1,560,000 $3,150,000 $1,810,000
The above information is deemed to be accurate but not guaranteed.
8/29/2017 Presented By: Datta Khalsa Phone: (831) 818-0181 Page 1 of 5
Units GRM
24.216.1
26.9
GRM
GRM
GRM
16.4
13.7
Units
Units
16.418.2
856
8
8
6
19
20.1
26.9
16.2
EXECUTIVE SUMMARYInvestment Analysis
Investment Analysis* 404 High St. Santa Cruz 6 Units Price: 3,250,000$
Total Building Area: 5,347 SF Covered Parking (Carport): 6Parcel Size: 24,045 SF Uncovered Parking (Striped): 6Zoning: RL-Multi Price/SF $607.82Type of Construction: Wood/Stucco Price/Unit $541,667Zoning: R Total Number of Buildings: 2Unit Types and Monthly Income:
Unit Unit Type Unit Size Rent: Rent/SF Proforma Rent Rent/SFA 2 BR/ 1 Bth 901 2,900$ $3.22 2,950$ $3.27B 2 BR/ 1 Bth 947 2,900$ $3.06 2,950$ $3.12C 2 BR/ 1 Bth 968 2,850$ $2.94 2,950$ $3.05D 3 BR/ 1 Bth 1,189 3,600$ $3.03 3,950$ $3.32E 2 BR/ 1 Bth 978 2,850$ $2.91 2,950$ $3.02
Studio Apartment 364 1,500$ $4.12 1,550$ $4.26Laundry 200$ 200$
Total 5,347 16,800$ 17,500$ Projected Monthly and Annual Costs:Proposed Financing: Monthly Operating Expenses:Purchase Price: 3,250,000$ Taxes: 3,385.42$ Down Payment/Percent: 1,623,000$ 50% Insurance 230.17Loan/LTV: 1,627,000$ 50% Water/Sewer 247.92Interest Rate (ARM): 3.70% (12 MTA) Waste 649.33Fixed Loan Term: 5 Years Management* 6.0% 1,008.00Amortization Period: 30 Years PG&E 382.42Debt Service Coverage: 1.33 Landscape 141.75Debt Service Covg./projected: 1.42 ** Vacancy @ 2.0% 336.00Loan Costs: 24,405$ 1.50% Maintenance 382.92Monthly Debt Service 7,557.72$ Avg. Monthly Expenses: (6,763.93)$ Annual Debt Service 90,692.65$ Annual Op. Expenses: (81,167.12)$ Financial Analysis:(Using Existing Income): (Using Projected Income):Existing Gross Income 201,600$ GSI Projected Gross Income: 210,000$ Operating Expenses: (81,167.12)$ 40% Operating Expenses: (81,167.12)$ Existing Net Op. Income 120,432.88$ NOI Projected Net Op. Income 128,832.88$ Less Annual Debt Service: (90,692.65)$ -45% Less Annual Debt Service: (90,692.65)$ Annual Cash Flow: 29,740.23$ 15% Annual Cash Flow: 38,140.23$ Depreciation@50%land value 59,090.91$ 27.5 Yr. Depreciation@50%land value 59,090.91$ Tax Savings@40%Bracket 23,636.36$ Tax Savings@40%Bracket 23,636.36$ Net Cash Benefit 53,376.59$ Net Cash Benefit 61,776.59$ GRM (Including Laundry) 16.1 GRM GRM (Including Laundry) 15.5 Estimated Cap Rate* 3.7% CAP Projected Cap Rate 4.0%Current Rent/S.F. 3.14$ Projected Rent/S.F. 3.27$ * Includes projected management cost. All information provided for estimate purposes only, should be verified.
MAIN STREETCOMMERCIAL
LOCATION OVERVIEWAerial Map
MAIN STREETCOMMERCIAL
LOCATION OVERVIEWSite Plan with Unit Floor Plans
MAIN STREETCOMMERCIAL
LOCATION OVERVIEWParcel Map
MAIN STREETCOMMERCIAL
AREA INFORMATION
Santa Cruz is known for its moderate climate, the natural beauty of its coastline, redwood forests, alternative community lifestyles, and socially liberal leanings. It is also home to the University of California, Santa Cruz, a premier research institution and educa-tional hub, as well as the Santa Cruz Beach Boardwalk, an oceanfront amusement park operating continuously since 1907.
The present-day site of Santa Cruz was the location of Spanish settlement beginning in 1791, including Mission Santa Cruz and the pueblo of Branciforte. Following the Mexican–American War of 1846–48, California became the 31st state in 1850. The City of Santa Cruz was incorporated in 1866 and chartered in April 1876.[1] Important early industries included lumber, gunpowder, lime and agriculture. Late in the 19th century, Santa Cruz established itself as a beach resort community.
Transportation
State Routes 1 and 17 are the main roads in and out of Santa Cruz, with the latter being the primary route north to San Jose and the rest of the San Francisco Bay Area. Geographically constrained between the Santa Cruz Mountains and the Monterey Bay, the narrow transportation corridor served by SR 1, California’s Pacific Coast Highway, suffers excessive congestion. The ramp from SR 1 northbound to SR 17 southbound, onto Ocean Street, is commonly known as the “fish hook” due to its tightening curve. A project to widen the highway and this interchange was begun in 2006 and completed in the fall of 2008.
Demographics
The 2010 United States Census[55] reported that Santa Cruz had a population of 59,946. The population density was 3,787.2 people per square mile (1,462.3/km²). The racial makeup of Santa Cruz was 44,661 (74.5%) White, 1,071 (1.8%) African American, 440 (0.7%) Native American, 4,591 (7.7%) Asian, 108 (0.2%) Pacific Islander, 5,673 (9.5%) from other races, and 3,402 (5.7%) from two or more races. Hispanic or Latino of any race were 11,624 persons (19.4%).
The Census reported that 51,657 people (86.2% of the population) lived in households, 7,910 (13.2%) lived in non-institutionalized group quarters, and 379 (0.6%) were institutionalized.
There were 21,657 households, out of which 4,817 (22.2%) had children under the age of 18 living in them, 7,310 (33.8%) were opposite-sex married couples living together, 1,833 (8.5%) had a female householder with no husband present, 862 (4.0%) had a male householder with no wife present. There were 1,802 (8.3%) unmarried opposite-sex partnerships, and 379 (1.8%) same-sex married couples or partnerships. 6,773 households (31.3%) were made up of individuals and 1,862 (8.6%) had someone living alone who was 65 years of age or older. The average household size was 2.39. There were 10,005 families (46.2% of all households); the average family size was 2.92.
MAIN STREETCOMMERCIAL
AREA INFORMATION
Economy
The principal industries of Santa Cruz are agriculture, tourism, education (UCSC) and high technology. Santa Cruz is a center of the organic agriculture movement, and many specialty products as well as housing the headquarters of California Certified Organic Farmers. Tourist attractions include the classic Santa Cruz Beach Boardwalk on the beach, the redwood forests in the Santa Cruz Mountains above the town, and Monterey Bay, which is protected as a marine sanctuary.
Education
Santa Cruz is home to several notable educational institutions, including Soquel High School, Aptos High School, Harbor High School, Georgiana Bruce Kirby Preparatory School (a grade 6–12 private school), Pacific Collegiate School (a grade 7–12 char-ter school), Cypress Charter High School, Santa Cruz Montessori (an 18 months to 15 years private school) Monterey Coast Pre-paratory (also a 6–12 private school), Santa Cruz High School, the University of California, Santa Cruz, Cabrillo College, (which is located in nearby Aptos and holds some classes within Santa Cruz city), and Five Branches University.
The Long Marine Laboratory is a marine research facility on the western edge of the city.tary) scoring well between 880-925, and with ratings of 9 or 10.
(Source: Wikipedia)
Santa Cruz High School UCSC Aerial Long Marine Laboratory
PROFILE
MAIN STREETCOMMERCIAL
Partial List of Commercial Property Sales Transactions Handled
Address Type 128 Kennan St. Santa Cruz 8 Unit Apartments Sale
658 24th Ave. Santa Cruz 6 Unit Apartments Sale
1945 42nd Ave. Capitola 36 Unit Apartments Sale (1031)
313-317 Barson St. Santa Cruz 7 Unit Apartments Sale (1031)
658 24th Ave. Santa Cruz 6 Unit Apartments Sale (1031)
6996 Soquel Ave. Santa Cruz 20,000 SF Retail/Warehouse Sale/Lease
239 Carmel Ave. Marina 12 Unit Apartments Sale
2623 41st Ave. Santa Cruz Single-Tenant Restaurant Sale
2555-2557 Soquel Dr. Soquel Multi-Tenant Commercial Sale/Lease
11305 Del Monte Ave. Castroville 28 Unit Apartments Sale
1020 Trinity Ave. Seaside 14 Unit Apartments Sale
780 Garner/1025 Alamo Salinas 45 Unit Apartments Sale
7362 Mesa Dr. Aptos 9 Unit Apartments Sale (1031)
2801 Daubenbiss Ave. Soquel 21 Unit Apartments Sale (1031)
140 Riverside Dr. Ben Lomond 6 Unit Apartments Sale
7951 Moss Landing Rd. Moss Landing Multi-Tenant Commercial Sale/Lease
3230-3240 Mission Dr. Santa Cruz 6 Unit Apartments Sale
2-1231 East Cliff Dr. Santa Cruz ingle-Tenant Retail Sale (1031)
153 Lee St. Santa Cruz 4 Unit Apartments Sale
1617 & 1621 6th Ave. Belmont 17 Unit Apartments Sale (1031)
832 Hanover St. Santa Cruz 8 Unit Apartments Sale
314-320 Pacific Ave. Santa Cruz 5 Tenant Retail Center Sale
9730 Highway 9 Ben Lomond 7 Unit Apartments Sale (1031)
4602 Scotts Valley Dr. Scotts Valley 6 Unit Apartments Sale (1031)
1945 42nd Ave. Capitola 36 Unit Apartments Sale (1031)
1010 Fair Ave. Santa Cruz 10 Suite Multi-use Center Sale
Heritage Center Ridgecrest 15 Tenant Shopping Center Sale
699 Curtner Ave. San Jose 4 Tenant Strip Center Sale (1031)
1630 Southbay Freeway Sunnyvale 13,200 SF Single-Tenant Industrial Sale (1031)
Datta Khalsa, BrokerMain Street Realtors Commercial Transaction Resume
Datta Khalsa has handled a broad array of investment properties over the span of his real estate career since 1993, ranging from Apartment Complexes and Warehouses, to Strip Centers, Mixed-Use Development, Re-gional Shopping Center, and Single-Tenant Net Leased Investments, handling transac-tions in Santa Cruz, Monterey, Santa Clara, San Mateo and Kern Counties.
His resume also includes a regular stream of business opportunity sales and commercial leases as a member of CABB (California As-sociation of Business Brokers) and American Industrial Real Estate Association subscriber. Through his brokerage, he also offers the full range of Residential and Commercial Leasing and Property Man-agement Services as an affiliated member of the Tri County Apart-ment Owners Association.
Along the way, Datta has built a private real estate portfolio, in-vesting as sole owner or partner in a wide range of projects, includ-ing vacation rental, mixed-use commercial, strip center, neighbor-hood shopping center, and multiple apartment investments.
He also manages the Firmus Fund, a private investment pool which allows investors to participate in the benefits of real estate invest-ments in multiple markets and states without the headaches of in dividual property ownership.