pro forma income & expenses...percent of egi: 34.99% 33.40% 29.23% net operating income (noi)...

4
128 UNITS IN SACRAMENTO, CA | UNPRICED 4719 50TH AVENUE, SACRAMENTO, CA 95823 LISTINGS.MOGHAREBI.COM/SUNVALLEY a Mogharebi - Ozen Company OTTO OZEN Executive Vice President 909.235.7886 [email protected] CA BRE #01030086 ROBIN C. KANE Senior Vice President O: 559.761.0020 [email protected] CA BRE License #00583537 NAZLI SANTANA Senior Investment Advisor 909.371.1324 [email protected] CA BRE #01015922 BRENDAN KANE Vice President O: 559.892.0036 [email protected] CA BRE License #01976828

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Page 1: PRO FORMA INCOME & EXPENSES...Percent of EGI: 34.99% 33.40% 29.23% Net Operating Income (NOI) $987,626 $1,064,535 $1,363,976 Floor Units Plan Asking Rent Monthly Pro Forma (Year-2)

UNIT MIX & RENT SCHEDULE

45 1 / 1.0 667 $1,175 $52,875 $52,875 $1,250 $56,250

83 2 / 1.0 838 $1,350 $112,050 $112,050 $1,430 $118,690

128 99,569 $164,925 $164,925 $174,940

INCOMEScheduled Gross Rent $1,979,100 $1,979,100 $2,099,280

Loss-to-Lease 13.5% ($266,189) 13.5% ($266,189) 3.5% ($73,475)

Vacancy / Bad Debt 10.0% ($197,910) 6.0% ($118,746) 6.0% ($125,957)

Effective Rental Income $1,515,001 $1,594,165 $1,899,848

Laundry Revenue Collected $0 $0 $13,786

Other Revenue Collected $4,123 $4,246 $13,580

Total Other Revenue $4,123 $4,246 $27,365

Effective Gross Income (EGI) $1,519,124 $1,598,411 $1,927,214

EXPENSES Per Unit Per Unit Per Unit

Administrative $150 $19,200 $150 $19,200 $156 $19,976

Professional Fees $50 $6,400 $50 $6,400 $52 $6,659

Marketing & Advertising $50 $6,400 $50 $6,400 $52 $6,659

Payroll Expenses $1,200 $153,600 $1,200 $153,600 $1,248 $159,805

Utilities $1,022 $130,847 $1,022 $130,847 $1,064 $136,133

Insurance $250 $32,000 $250 $32,000 $260 $33,293

Management Fees 3.00% $356 $45,574 $375 $47,952 $452 $57,816

Contract Services $248 $31,763 $248 $31,763 $258 $33,046Repairs & Maintenance $250 $32,000 $250 $32,000 $260 $33,293

Real Estate Taxes $26 $3,315 $26 $3,315 $26 $3,315

Turnover Costs $250 $32,000 $250 $32,000 $260 $33,293

Replacement Reserves $300 $38,400 $300 $38,400 $312 $39,951

Total Expenses $531,498 $533,877 $563,238

Per Unit: $4,152 $4,171 $4,400Per Square Foot: $5.34 $5.36 $5.66

Percent of EGI: 34.99% 33.40% 29.23%

Net Operating Income (NOI) $987,626 $1,064,535 $1,363,976

Floor PlanUnits

Asking RentMonthly

Pro Forma(Year-2)

CurrentMonthly

Asking Rent

Asking Rent

(Year-2)

Current Asking

Rent

Est Feb '20Asking Rent(Pro Forma)

TMG Pro Forma

(Year-2)

EstimatedSquare Feet

CurrentMonthly

Asking Rent

Est Feb '20Stabilized

(Pro Forma)

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Income and Expenses are estimates. Buyer must verify the information and bears all risk for any inaccuracies.

Listings.Mogharebi.com/SunValley

IMPORTANT INFORMATION & DISCLAIMER:

NOTES1. Estimated Feb ‘20 /Pro-Forma - comprises asking rent, loss-to-lease based on the August 2019 rent roll effective collections increased by 2.5% to estimate income in Feburary 2020, estimated in-place vacancy, 2018 T12 other income inflated at 3%, and adjusted operating expenses.2. Stabilized / Pro Forma - comprises asking rent, loss-to-lease based on the August 2019 rent roll effective collections increased by 2.5% to estimate income in Feburary 2020, stablized occupancy, T12 other income inflated at 3%, and adjusted operating expenses.3. TMG Pro Forma (Year-2) reflects 3% annual revenue growth, market vacancy, reduced loss-to-lease, and adjusted expenses increased at 2% annually.4. There are 12 units that have been taken offline by a fire, the insurance company is paying the lost rent on those units.5. Historic, Current and Pro Forma Expenses and Net Operating Income is exclusive of ad valorem property taxes. The current ad valorem rate is 1.12950% with direct assessments of $3,314.80.

128 UNITS IN SACRAMENTO, CA | UNPRICED4719 50TH AVENUE, SACRAMENTO, CA 95823LISTINGS.MOGHAREBI.COM/SUNVALLEY a

Mog

hare

bi -

O

zen

Com

pany

PRO FORMA INCOME & EXPENSES

OTTO OZENExecutive Vice President

[email protected] BRE #01030086

ROBIN C. KANE Senior Vice President

O: 559.761.0020 [email protected] BRE License #00583537

NAZLI SANTANASenior Investment Advisor

[email protected]

CA BRE #01015922

BRENDAN KANE

Vice PresidentO: 559.892.0036

[email protected] CA BRE License #01976828

Page 2: PRO FORMA INCOME & EXPENSES...Percent of EGI: 34.99% 33.40% 29.23% Net Operating Income (NOI) $987,626 $1,064,535 $1,363,976 Floor Units Plan Asking Rent Monthly Pro Forma (Year-2)

Listings.Mogharebi.com/SunValley

ACE-BART CONNECTION WITH EXTENSION TO SACRAMENTO The Altamont Corridor

Express (ACE) is planning an extension from Stockton to Sacramento. Concomitantly, the Tri-Valley-San Joaquin Valley Regional Rail

Authority has been formed and funded by the governor to connect Stockton ACE to BART. The enhanced rail network will reduce the

commute into the Bay Area, generating significant demand throughout the Sacramento Valley.

HIGH INFLOW OF RESIDENTS Sacramento leads the nation in net inflow of residents and has the lowest supply of

all metro markets as both a percentage of overall inventory and pure supply numbers.

DESIRABLE UNIT MIX Sun Valley Apartments offers a highly desirable unit mix comprised of 2 bed / 1.0 baths (65%)

and 1 bed / 1.0 baths (35%). The units feature spacious living rooms, wood-inspired flooring, and walk-in closets.

CLOSE PROXIMITY TO SCHOOLS Sun Valley Apartments is less than a mile from Nicholas Elementary School,

Pacific Elementary School, and Fern Bacon Middle School.

COMMUTABLE TO OVER 1.4 MILLION JOBS Within a 15-, 30-, and 60-minute commute of Sun Valley

Apartments there are approximately 315,000, 750,000, and 1.4 million jobs, respectively. Easy access to jobs provides an increasingly

robust tenant base

NEAR TO MULTIPLE TOP EMPLOYERS Sun Valley Apartments is within a 15-minute drive to multiple top

employers in Sacramento. State of California, the largest employer in Sacramento, employs over 75,000 people. UC Davis Health

Systems and Sacramento County, the second and third largest employers in Sacramento, employs over 25,000 people.

ATTRACTIVE RENT VS BUY With a median home price in Sacramento of $350,300, the average down payment

required is over $70,000, which is more than what over 60% of households can afford. The average monthly cost of the average home

is over $2,600 per month providing a significant upside for apartment rents.

The Mogharebi Group is pleased to announce that it has been retained as the exclusive listing agent for

the sale of Sun Valley Apartments, a 128-unit apartment community located in Sacramento, California.

This property provides the right investor an opportunity to acquire a value-add asset in one of the nation’s

hottest submarkets.

INVESTMENT OPPORTUNITY

FLOOR PLANS

PROPERTY DESCRIPTIONUNITS 128

RENTABLE SF 99,569

YEAR BUILT 1970

APN 039-0191-010

LOT SIZE 5.63 acres

DENSITY 22.7 units per acre

PARKING SURFACE Asphalt

PARKING 176 surface spaces

PARKING RATIO 1.38

BUILDINGS 8 residential & 2 common

STORIES 2

FOUNDATION Slab-on Concrete

FRAMING Wood

EXTERIOR Stucco & Wood

ROOF Asphalt Shingle

ELECTRICITY Tenant - Individually Metered

GAS Tenant - Individually Metered

WATER Landlord - Master Metered

SEWER Landlord - Master Metered

TRASH Landlord - Master Metered

HVAC Through-the-Wall

WATER HEATER Boilers (3)

FIRE PROTECTIONSmoke Detector /

Sprinklers

PLUMBING Copper

Unit Amenities Common Area Amenities• Granite Inspired Laminate

Countertops• Gas Range / Oven• Hood-fan• Disposal• Dishwasher• Refrigerator • Plush Carpet in Bedroom and

Living Room• Wood Flooring in Kitchen and

Tile in the Bathroom• Air-Conditioning• Gas Heating• Pre-Wired for Cable

• Swimming Pool and Spa• Outdoor Picnic Area with BBQ• Garden • Courtyard• Walkways• Laundry Room (3)• Controlled Access Community• Monument Signage• Leasing Office

1 Bedroom / 1.0 Bath667 Square Feet

2 Bedroom / 1.0 Bath838 Square Feet

Page 3: PRO FORMA INCOME & EXPENSES...Percent of EGI: 34.99% 33.40% 29.23% Net Operating Income (NOI) $987,626 $1,064,535 $1,363,976 Floor Units Plan Asking Rent Monthly Pro Forma (Year-2)

Listings.Mogharebi.com/SunValley

ACE-BART CONNECTION WITH EXTENSION TO SACRAMENTO The Altamont Corridor

Express (ACE) is planning an extension from Stockton to Sacramento. Concomitantly, the Tri-Valley-San Joaquin Valley Regional Rail

Authority has been formed and funded by the governor to connect Stockton ACE to BART. The enhanced rail network will reduce the

commute into the Bay Area, generating significant demand throughout the Sacramento Valley.

HIGH INFLOW OF RESIDENTS Sacramento leads the nation in net inflow of residents and has the lowest supply of

all metro markets as both a percentage of overall inventory and pure supply numbers.

DESIRABLE UNIT MIX Sun Valley Apartments offers a highly desirable unit mix comprised of 2 bed / 1.0 baths (65%)

and 1 bed / 1.0 baths (35%). The units feature spacious living rooms, wood-inspired flooring, and walk-in closets.

CLOSE PROXIMITY TO SCHOOLS Sun Valley Apartments is less than a mile from Nicholas Elementary School,

Pacific Elementary School, and Fern Bacon Middle School.

COMMUTABLE TO OVER 1.4 MILLION JOBS Within a 15-, 30-, and 60-minute commute of Sun Valley

Apartments there are approximately 315,000, 750,000, and 1.4 million jobs, respectively. Easy access to jobs provides an increasingly

robust tenant base

NEAR TO MULTIPLE TOP EMPLOYERS Sun Valley Apartments is within a 15-minute drive to multiple top

employers in Sacramento. State of California, the largest employer in Sacramento, employs over 75,000 people. UC Davis Health

Systems and Sacramento County, the second and third largest employers in Sacramento, employs over 25,000 people.

ATTRACTIVE RENT VS BUY With a median home price in Sacramento of $350,300, the average down payment

required is over $70,000, which is more than what over 60% of households can afford. The average monthly cost of the average home

is over $2,600 per month providing a significant upside for apartment rents.

The Mogharebi Group is pleased to announce that it has been retained as the exclusive listing agent for

the sale of Sun Valley Apartments, a 128-unit apartment community located in Sacramento, California.

This property provides the right investor an opportunity to acquire a value-add asset in one of the nation’s

hottest submarkets.

INVESTMENT OPPORTUNITY

FLOOR PLANS

PROPERTY DESCRIPTIONUNITS 128

RENTABLE SF 99,569

YEAR BUILT 1970

APN 039-0191-010

LOT SIZE 5.63 acres

DENSITY 22.7 units per acre

PARKING SURFACE Asphalt

PARKING 176 surface spaces

PARKING RATIO 1.38

BUILDINGS 8 residential & 2 common

STORIES 2

FOUNDATION Slab-on Concrete

FRAMING Wood

EXTERIOR Stucco & Wood

ROOF Asphalt Shingle

ELECTRICITY Tenant - Individually Metered

GAS Tenant - Individually Metered

WATER Landlord - Master Metered

SEWER Landlord - Master Metered

TRASH Landlord - Master Metered

HVAC Through-the-Wall

WATER HEATER Boilers (3)

FIRE PROTECTIONSmoke Detector /

Sprinklers

PLUMBING Copper

Unit Amenities Common Area Amenities• Granite Inspired Laminate

Countertops• Gas Range / Oven• Hood-fan• Disposal• Dishwasher• Refrigerator • Plush Carpet in Bedroom and

Living Room• Wood Flooring in Kitchen and

Tile in the Bathroom• Air-Conditioning• Gas Heating• Pre-Wired for Cable

• Swimming Pool and Spa• Outdoor Picnic Area with BBQ• Garden • Courtyard• Walkways• Laundry Room (3)• Controlled Access Community• Monument Signage• Leasing Office

1 Bedroom / 1.0 Bath667 Square Feet

2 Bedroom / 1.0 Bath838 Square Feet

Page 4: PRO FORMA INCOME & EXPENSES...Percent of EGI: 34.99% 33.40% 29.23% Net Operating Income (NOI) $987,626 $1,064,535 $1,363,976 Floor Units Plan Asking Rent Monthly Pro Forma (Year-2)

UNIT MIX & RENT SCHEDULE

45 1 / 1.0 667 $1,175 $52,875 $52,875 $1,250 $56,250

83 2 / 1.0 838 $1,350 $112,050 $112,050 $1,430 $118,690

128 99,569 $164,925 $164,925 $174,940

INCOMEScheduled Gross Rent $1,979,100 $1,979,100 $2,099,280

Loss-to-Lease 13.5% ($266,189) 13.5% ($266,189) 3.5% ($73,475)

Vacancy / Bad Debt 10.0% ($197,910) 6.0% ($118,746) 6.0% ($125,957)

Effective Rental Income $1,515,001 $1,594,165 $1,899,848

Laundry Revenue Collected $0 $0 $13,786

Other Revenue Collected $4,123 $4,246 $13,580

Total Other Revenue $4,123 $4,246 $27,365

Effective Gross Income (EGI) $1,519,124 $1,598,411 $1,927,214

EXPENSES Per Unit Per Unit Per Unit

Administrative $150 $19,200 $150 $19,200 $156 $19,976

Professional Fees $50 $6,400 $50 $6,400 $52 $6,659

Marketing & Advertising $50 $6,400 $50 $6,400 $52 $6,659

Payroll Expenses $1,200 $153,600 $1,200 $153,600 $1,248 $159,805

Utilities $1,022 $130,847 $1,022 $130,847 $1,064 $136,133

Insurance $250 $32,000 $250 $32,000 $260 $33,293

Management Fees 3.00% $356 $45,574 $375 $47,952 $452 $57,816

Contract Services $248 $31,763 $248 $31,763 $258 $33,046Repairs & Maintenance $250 $32,000 $250 $32,000 $260 $33,293

Real Estate Taxes $26 $3,315 $26 $3,315 $26 $3,315

Turnover Costs $250 $32,000 $250 $32,000 $260 $33,293

Replacement Reserves $300 $38,400 $300 $38,400 $312 $39,951

Total Expenses $531,498 $533,877 $563,238

Per Unit: $4,152 $4,171 $4,400Per Square Foot: $5.34 $5.36 $5.66

Percent of EGI: 34.99% 33.40% 29.23%

Net Operating Income (NOI) $987,626 $1,064,535 $1,363,976

Floor PlanUnits

Asking RentMonthly

Pro Forma(Year-2)

CurrentMonthly

Asking Rent

Asking Rent

(Year-2)

Current Asking

Rent

Est Feb '20Asking Rent(Pro Forma)

TMG Pro Forma

(Year-2)

EstimatedSquare Feet

CurrentMonthly

Asking Rent

Est Feb '20Stabilized

(Pro Forma)

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Income and Expenses are estimates. Buyer must verify the information and bears all risk for any inaccuracies.

Listings.Mogharebi.com/SunValley

IMPORTANT INFORMATION & DISCLAIMER:

NOTES1. Estimated Feb ‘20 /Pro-Forma - comprises asking rent, loss-to-lease based on the August 2019 rent roll effective collections increased by 2.5% to estimate income in Feburary 2020, estimated in-place vacancy, 2018 T12 other income inflated at 3%, and adjusted operating expenses.2. Stabilized / Pro Forma - comprises asking rent, loss-to-lease based on the August 2019 rent roll effective collections increased by 2.5% to estimate income in Feburary 2020, stablized occupancy, T12 other income inflated at 3%, and adjusted operating expenses.3. TMG Pro Forma (Year-2) reflects 3% annual revenue growth, market vacancy, reduced loss-to-lease, and adjusted expenses increased at 2% annually.4. There are 12 units that have been taken offline by a fire, the insurance company is paying the lost rent on those units.5. Historic, Current and Pro Forma Expenses and Net Operating Income is exclusive of ad valorem property taxes. The current ad valorem rate is 1.12950% with direct assessments of $3,314.80.

128 UNITS IN SACRAMENTO, CA | UNPRICED4719 50TH AVENUE, SACRAMENTO, CA 95823LISTINGS.MOGHAREBI.COM/SUNVALLEY a

Mog

hare

bi -

O

zen

Com

pany

PRO FORMA INCOME & EXPENSES

OTTO OZENExecutive Vice President

[email protected] BRE #01030086

ROBIN C. KANE Senior Vice President

O: 559.761.0020 [email protected] BRE License #00583537

NAZLI SANTANASenior Investment Advisor

[email protected]

CA BRE #01015922

BRENDAN KANE

Vice PresidentO: 559.892.0036

[email protected] CA BRE License #01976828