ELMLANE

MAJESTIC ASSET MANAGEMENT, INC.MANAGEMENT • INVESTMENTS • DEVELOPMENT

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SIXTEEN UNITS PLUS A DUPLEX FOR SALE IN BEACH COMMUNITY OF CARPINTERIA1045-1049

• Prime downtown Carpinteria location

• Updated units

• Stabilized apartment investment

• Strong array of local employers

Contacts: Christos Celmayster805.898.4388christos@hayescommercial.comlic. 01342996

Francois DeJohn805.898.4365fran@hayescommercial.comlic. 01144570

The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t. This is an Equal Housing Opportunity.

Liam Murphy, CCIM805.898.4385liam@hayescommercial.comlic. 01439777

Rarely does an asset come available on the South Coast that offers a full package: an A+ location, quality units with a good mix, and long-term stability. This pride-of-ownership property in coastal Carpinteria consists of 18 units on three separate parcels in three separate buildings — one duplex and two eight-unit buildings. Just a block from Linden Avenue in the center of downtown Carpinteria, this prized asset is near restaurants, shops, tasting rooms, parks, beaches and the other amenities that make Carpinteria one of California’s best beach towns. The units at Elm Lane have been updated with granite countertops, new cabinetry, dual pane windows, tile and wood floors, appliances, and finishes. This is one of the best rental properties that Carpinteria has to offer.

1045-1049 ELM LANE

Price: $5,795,000

Units: 18

Unit Mix: Duplex: 3BD/1.5BA 2BD/1.5BA 8-Unit: 4 X 2BD/1BA 4 X 1BD/1BA 8-Unit: 8 X 1BD/1BA

Building area: Approx. 10,300 SF

Site area: Approx. 23,958 SF

Zoning: PRD-18 and PRD-13

APN: 003-152-023, 024 & 017

Parking: 18 spaces on site & a two-car garage

Laundry: On-site

To show: CLA

CSO: 2.5%

Current Market

Cap rate: 4.48% 4.86%

GRM: 13.62 13.08

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The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t. This is an Equal Housing Opportunity.

OFFERING SUMMARY

3BD/1.5BA

2BD/1.5BA

Approx. 1,200 SF w/two-car garage

4 X 2BD/1BA

4 X 1BD/1BA

Approx. 4,600 SF

8 X 1BD/1BA

Approx. 4,000 SF

1047 ELM LNDUPLEX

1049 ELM LN8 UNITS

1045 ELM LN8 UNITS

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The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t. This is an Equal Housing Opportunity.

BUILDING OVERVIEW

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The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t. This is an Equal Housing Opportunity.

UNIT MIX & RENT ROLLPrice: ____

# of Units: ____18

Price Per Unit: ____$321,944

GRM: ____13.62 Current Rents See Rent Roll Sheet 18 See See 32,850$ 394,200$ TBD 34,300$ 411,600$

CAP Rate: ____4.48% Current Rents Rent Roll Rent Roll

GRM: ____13.08 Market Rents

CAP Rate: ____4.86% Market Rents

Land Area (Sq. Ft.): ____23,958

Price/Land Area: ____$242

Building Area (Sq. Ft.): ____10,300 TOTALS 18 10,300 32,850$ 394,200$ 34,300$ 411,600$

Price/Building Area: ____$563

INCOME & EXPENSE ANALYSIS

Down Payment: ____ Total Gross Potential Rental Income 32,850$ 394,200$ 34,300$ 411,600$

Down Payment (%): ____40.00% Laundry Income Est. 12/Unit/Month 216$ 2,592$ 216$ 2,592$

Total Loan: ____ RUBS (Note #6) See Rent Roll 2,042$ 24,509$ 2,042$ 24,509$

Debt Coverage Ratio: ____1.25 Pet Rent (Note #7) See Rent Roll 360$ 4,320$ 360$ 4,320$

Amortization: ____30 Years Total Gross Potential Income 35,468$ 425,621$ 36,918$ 443,021$

Term: ____7 Years (LESS) Vacancy Rate 2% (709)$ (8,512)$ (738)$ (8,860)$

Rate: ____4.375%

Monthly Loan Payment: ____$17,360 EFFECTIVE GROSS INCOME (EGI) 34,759$ 417,109$ 36,180$ 434,161$

Annual Loan Payment: ____$208,322 Notes % of EGI % of EGI

Annual Interest Payment: ____$150,978 Real Estate Taxes 1.24% 17.23% 5,990$ 71,880$ 16.56% 5,990$ 71,880$

Insurance: 2017 Act 1.38% 480$ 5,757$ 1.33% 480$ 5,757$

Gas Annualized 2017 Exp. 0.20% 70$ 837$ 0.19% 70$ 837$

Property Value: ____ Electric Annualized 2017 Exp. 0.50% 175$ 2,100$ 0.48% 175$ 2,100$

% of Improvements: ____60% Estimated Water/Sewer Annualized 2017 Exp. 4.04% 1,406$ 16,866$ 3.88% 1,406$ 16,866$

Depreciable Basis: ____ Trash Annualized 2017 Exp. 1.13% 392$ 4,706$ 1.08% 392$ 4,706$

Depreciation Schedule: ____27.5 Years Repairs & Maintenance Est. $650/Unit/Year 2.81% 975$ 11,700$ 2.81% 975$ 11,700$

Annual Depreciation: ____$126,436 Turnover Expenses Est. $250/Unit/Year 1.08% 375$ 4,500$ 1.08% 375$ 4,500$

Property Manager 5% 5.00% 1,738$ 20,855$ 5.00% 1,809$ 21,708$

Onsite Property Manager Act 1.29% 450$ 5,400$ 0.00% -$ -$

Payroll Est. 0.58% 200$ 2,400$ 0.55% 200$ 2,400$

Taxes, Licenses & Prof. Fees Est. 0.11% 38$ 450$ 0.10% 38$ 450$

Pest Control Est. 0.22% 75$ 900$ 0.21% 75$ 900$

Gardening Annualized 2017 Exp. 1.29% 450$ 5,400$ 1.24% 450$ 5,400$

Reserves Est. $200/Unit 0.86% 300$ 3,600$ 0.83% 300$ 3,600$

(LESS) TOTAL ANNUAL EXPENSES (Note #4) 37.72% (13,113)$ (157,352)$ 35.35% (12,734)$ (152,804)$

NET OPERATING INCOME (NOI) 21,646$ 259,757$ 23,446$ 281,356$

MARKET RENTS (Note #3)

$2,318,000

Unit Size (Note #1)

Lease TermTotal Monthly

RentTotal Annual

RentLease Term

Total Monthly Rent

Total Annual Rent

CURRENT RENTS (Note #2)

PROPERTY DETAILS$5,795,000 CURRENT RENTS (Note #2)

Unit Type # of Units

additional amount for Pets

FINANCING (Note #5)

DEPRECIATION

MARKET RENTS (Note #3)

Note #7: Leases allow for landlord to charge an

$5,795,000

$3,477,000

$3,477,000

Nearly all the tenants have RUBS in their lease

Note #4: Expenses are actuals and estimates

NOTESNote #1: Unit Sizes are per Seller's Rent Roll

Note #2: Current Rents are as of 2/1/2018

Note #3: Market Rents are estimates

Note #6: RUBS means ratio utility billing systems

Note #5: Loan Terms are estimated

FINANCIAL ANALYSIS

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The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t. This is an Equal Housing Opportunity.

UNIT # OF UNITS TERM UNIT TYPE SQUARE FOOTAGE (EST) RUBS PET RENT TOTAL MONTHLY

RENTTOTAL ANNUAL

RENTTOTAL MONTHLY

RENTTOTAL ANNUAL

RENT1049 - 01 1 11/30/18 1BD/1BA 500 $ 147.90 $ 70.00 1,700$ 20,400$ 1,725$ 20,700$ 1049 - 02 1 10/31/17 1BD/1BA 500 $ 177.42 $ 25.00 1,625$ 19,500$ 1,725$ 20,700$ 1049 - 03 1 3/31/18 2BD/1BA 650 $ 118.38 $ 35.00 1,900$ 22,800$ 1,925$ 23,100$ 1049- 04 1 7/31/18 2BD/1BA 650 $ - $ - 1,800$ 21,600$ 1,925$ 23,100$ 1049 - 05 1 6/30/18 1BD/1BA 500 $ 147.90 $ - 1,750$ 21,000$ 1,750$ 21,000$ 1049 - 06 1 12/31/18 1BD/1BA 500 $ 118.38 $ - 1,750$ 21,000$ 1,750$ 21,000$ 1049 - 07 1 4/30/18 2BD/1BA 650 $ 118.38 $ 35.00 1,850$ 22,200$ 1,950$ 23,400$ 1049 - 08 1 4/30/18 2BD/1BA 650 $ 118.38 $ 50.00 1,850$ 22,200$ 1,950$ 23,400$

1045 - 09 1 1/31/18 1BD/1BA 500 $ 118.38 $ 25.00 1,700$ 20,400$ 1,725$ 20,700$ 1045 - 10 1 4/30/18 1BD/1BA 500 $ 118.38 $ 25.00 1,600$ 19,200$ 1,725$ 20,700$ 1045 - 11 1 11/30/18 1BD/1BA 500 $ 118.38 $ - 1,700$ 20,400$ 1,725$ 20,700$ 1045 - 12 1 10/31/17 1BD/1BA 500 $ 118.38 $ - 1,600$ 19,200$ 1,725$ 20,700$ 1045 - 13 1 2/28/18 1BD/1BA 500 $ 118.38 $ 25.00 1,600$ 19,200$ 1,725$ 20,700$ 1045 - 14 1 5/31/17 1BD/1BA 500 $ - $ - 1,700$ 20,400$ 1,725$ 20,700$ 1045 - 15 1 2/12/18 1BD/1BA 500 $ 118.38 $ - 1,600$ 19,200$ 1,725$ 20,700$ 1045 - 16 1 6/15/18 1BD/1BA 500 $ 30.55 $ 35.00 1,625$ 19,500$ 1,725$ 20,700$

1047 - A 1 2/28/18 2BD/1.5BA 700 $ 147.90 $ - 2,500$ 30,000$ 2,650$ 31,800$ 1047 - B 1 10/31/17 3BD/1.5BA 1000 $ 206.95 $ 35.00 3,000$ 36,000$ 3,150$ 37,800$

18 10,300 2,042$ 360$ 32,850$ 394,200$ 34,300$ 411,600$

CURRENT RENTS MARKET RENTS

RENT ROLL

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The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t. This is an Equal Housing Opportunity.

PROPERTY PHOTOS

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The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t. This is an Equal Housing Opportunity.

PROPERTY PHOTOS

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The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t. This is an Equal Housing Opportunity.

1045-1049 ELM LANE

1 Coffee Bean & Tea Leaf

2 Rincon Brewery

3 Lucky Llama Coffee House

4 Smart & Final

5 Rite-Aid

6 The Palms

7 Sly’s Seafood and Steak

8 Giannfranco’s Trattoria

9 Island Brewing Company

10 The Spot

11 Amtrak Station

Distance to...State Beach 0.6 miles

Carp Bluffs 1.3 miles

Santa Barbara 11 miles

Ventura 16 miles

Los Angeles 84 miles

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SITE

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AERIAL MAP

Nearby Amenities

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The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t. This is an Equal Housing Opportunity.

THE CITY OF CARPINTERIACarpinteria is a quaint oceanside city conveniently located a few miles down the 101 from the city of Santa Barbara. The city is known for its beautiful beaches, agriculture, and the retail corridor along Linden Avenue. In recent years, many high tech companies have made Carpinteria home, and these major employers continue to grow substantially. Among them are Procore, LinkedIn/Micro-soft, Continental, and NuSil.

Carpinteria offers an attractive set of amenities that appeals to young tech workers as well as seniors who seek a quiet, beach-side retirement. The broad appeal of the city suggests that quality housing will be in high demand for years to come.

CITY SUMMARYIncorporated: September 28, 1965

Size: Appx. 9 square miles

Population: 13,769

Households: 4,9899

Avg Household Inc: $95,425

THE SANTA BARBARA AREAThe South Coast of Santa Barbara County is a continuous metro area encompassing Goleta, Santa Barbara, Montecito, Summerland, and Carpinteria with a combined population of 205,000. The area is referred to as “Silicon Beach” for its burgeoning technology/engineering sector. Alternately, the area has been nicknamed the American Riviera due to its Mediterranean climate and beauty.

Location. Santa Barbara is 90 miles north of Los Angeles and 330 miles south of San Francisco and is served by the Santa Barbara Airport and Amtrak. Tucked between the Santa Ynez Mountains and the Pacific Ocean, Santa Barbara enjoys a mild, Mediterranean climate averaging 300 sunny days a year.

Economy. Renowned internationally for its fine restaurants, shopping, hotels and architecture, the tourism industry is the region’s main economic driver. In addition, the economy in-cludes a large service sector, education, technology, defense, health care, education, finance, agriculture, manufacturing and local government.

Culture. The city’s history is evident in its Spanish architec-ture, emanating from the majestic Mission Santa Barbara. Downtown is brimming with restaurants, theaters, museums and hosts an international film festival. Wine lovers can sam-ple the Urban Wine Trail downtown or take a short drive to the world-class vineyards of Santa Ynez Valley.

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AREA SUMMARY