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Casa Madrone 1937 26 th Avenue Oakland, CA 94601 Introducing Below Market Price: $1,995,000  Located in the Nation’s Fastest Growing Rental Market 

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Presentation on theme: "Casa Madrone 1937 26 th Avenue Oakland, CA 94601 Introducing Below Market Price: $1,995,000  Located in the Nation’s Fastest Growing Rental Market "— Presentation transcript:

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2 Casa Madrone 1937 26 th Avenue Oakland, CA 94601 Introducing Below Market Price: $1,995,000  Located in the Nation’s Fastest Growing Rental Market  30%+ Upside or $74,000 in the Annual Rents  Existing GRM- 11.43; Market GRM- 8  Existing Cap- 4.8%; Market Cap- 8.1%  Existing Cash on Cash 3.0%; Market Cash on Cash 12%  Most units have been renovated  Hot and thriving Fruitvale Neighborhood  Clear Section 1 and Section 2 Pest Clearances  Great Add Value Investment For more information about this fabulous opportunity: Please call Fred Lewis at (209) 522-9999 Visit us @ www.hotdealsoakland.comwww.hotdealsoakland.com Or email info@hotdealsoakland.com

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5 Casa Madrone 1937 26 th Avenue Oakland, CA 94601 Complex Description: Easy to run 17-unit apartment building in Fruitvale District, an emerging location of Oakland ½ block from Foothill Blvd that is close to public transportation, schools, shopping, and freeway access. This building has been tastefully painted with Bob Buchter color consulting, and most units have been rehabilitated. This 7,077 square foot 17-unit multi-family apartment complex built in 1928 sits on a 5,000 square foot lot. Nearby schools include World Academy, Achieve Academy and Urban Promise Academy. The closest grocery stores are A & A Corner Market, Sath Bunthan and Mi Carnal. Nearby coffee shop include Kelly’s Kafe, Sticky Rice Café and Bakeshop Oakland. Nearby restaurants include Tacos El Grullo, Tacos Alonzo and Pizza City. 1937 26 th Avenue is near Garfield Park, Josie de la Cruz Park and Patten University. There are some bike lanes and the terrain is flat as a pancake. 1937 26 th Avenue is “bikeable”, as there is some bike infrastructure. With over 80% of the units completely renovated and major exterior improvements, 1937 26 th Avenue offers an investor a turn key community that will continue to increase in value, due to the nearly 30% gap between the current NOI and pro forma NOI. This attributes to a possible 3% existing and 12% market cash on cash return. Pest clearance: There is a clear Section 1 and Section 2 Pest Clearance on the subject property. The property is clean as a whistle. Complex Location: Fruitvale District is one of the major retail and commercial communities of Oakland. The Fruitvale District is the home to hundreds of local Oakland businesses and the host of many cultural events. In addition, the Fruitvale District is the most racially, ethnically and culturally diverse population in Oakland, which is one of the most diverse cities in California and the nation. The Fruitvale District is becoming a Neighborhood of Choice as it is now more physically attractive, economically vibrant and livable. Perfect for commuters, the property sits within close proximity to the Bay Area’s major transportation arteries 880 and 580, offering direct access to San Francisco, Sacramento, Walnut Creek and Silicon Valley. In addition, 1937 26 th Avenue lies just 1.5 miles from the Fruitvale BART Station. HOTTEST APARTMENT MARKET IN THE COUNTRY: The Bay Area continues to lead the nation’s apartment market in rent growth. According to MPF Research, during the first quarter of 2015, Oakland saw year-over-year rent growth of 14.1%, followed by San Jose at 13.1%, and San Francisco ranked 5 th at 10.6%. COMPELLING MULTIFAMILY FUNDAMENTALS: There are high barriers to entry and few large sites for development in the Downtown Oakland region. Vacancy rates in the area remain at historic lows below 3%, and rental rates throughout this sub-market. Commission: Owner is a Principal and not a Broker. A selling commission of $60,000 will be paid for the procurement and actual consummation of the transaction. If a buyer is procured and the sale is not consummated for any reason a commission will not be due or paid. Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions. Down Payment:$800,000Market Cash on Cash:12.0% Capitalization Rate:4.6%Market Cap. Rate:8.1% Gross Rent Multiplier:11.43%Market GRM:8.05% Price per Square Foot:$281.90Cost per Unit:$117,000 Price:$1,995,000 Assessor’s Parcel Numbers 26-737-3

6 About Oakland, California Oakland is the seventh largest city in the state of California with a population of 400,000 people and covers 54 square miles. Oakland has had a rent increase of 11.6% with a vacancy rate of 1.7%. The current median monthly rent for Oakland is $2,017.50 Oakland’s rent increase has been partially fueled by renters priced out of the San Francisco rental market. Oakland is a major West Coast port, and there are nearly 200,000 jobs related to marine cargo transport. These jobs range from minimum wage hourly positions to Transportation Storage and Distribution Managers who earn an annual average salary of $91,520. Forbes Magazine listed Oakland as one of the Top 10 Places for business and employment. The city is home to several major corporations including Matson, Kaiser Permanente and Clorox, as well as corporate headquarters for national retailers like Dreyer’s and Cost Plus World Market. Tech companies such as Ask.com and Pandora Radio are located in Oakland, and in recent years many start-up high tech and green energy companies have found a home in the downtown neighborhoods of Uptown, City Center, Jack London Square and Lake Merritt Financial District. The Port of Oakland is one of the five largest container ports in North America and one of the top 20 worldwide. Oakland is the only city in California with three professional sports teams: the Oakland Raiders, the Oakland Athletics, and the Golden State Warriors. Recently ranked by Movoto.com, Oakland is one of the most exciting cities in America on its roster of the “The 10 Most Exciting Cities in America.” According to the New York Times. Oakland ranked as the 5 th most desirable destination to visit this year in “The 45 Places to Go.” In the past decade, Oakland has ranked among the top cities for business in Forbes and other publications. As part of the ninth largest regional economy in the United States with a Gross Regional Product exceeding $200 billion, Oakland boasts a strong and diverse business environment. This diversity allows Oakland to remain stable even during economic downturns. The Gross Metropolitan Product (GMP) for Oakland ranks in the top 20 metropolitan economies in the United States and among the top 60 in the world. Oakland’s GMP ranks higher than the GMP for San Jose, St. Louis, Sacramento, Pittsburgh and Cleveland and also exceeds the Gross National Product of Hungary, Columbia, Singapore and the Philippines. Oakland’s GMP also eclipses the Gross State Product of Nevada, Oklahoma and Kansas. In recent years, Oakland has gained national recognition as a travel destination. In 2012, Oakland was named the top North American city to visit, highlighting its growing number of sophisticated restaurants and bars, top music venues, and increasing nightlife appeal. Oakland also took the No. 16 spot in ‘America’s Coolest Cities,” ranked by metrics like entertainment options and recreational opportunities per capita, etc. In 2013, Oakland topped the No. 1 spot in “America’s Most Exciting Cities,” notably having the most movie theaters, theater companies, and museums per square mile. In America’s Most Hipster Cities,” Oakland took the No. 5 spot, cited for luring San Francisco “hippies” into the city. Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

7 Annual Property Operating Data PURPOSE:Property AnalysisPRICE: $1,995,000 NAME:Casa Madrone Down Payment: $800,000 LOCATION:1937 26th Avenue Oakland, CA 94601 TYPE OF PROPERTY:(16) Large Studios / (16) Large 1 Bedrooms ASSESSED APPRAISED VALUESLAND: $400,000 IMPROVEMENTS: $1,575,000 PERSONAL PROPERTY: $20,000 TOTAL $1,995,000 PROPOSED: 1ST 60% LTV $ 1,195,000.00 @ 3.85%30 Years $ 5,611.00 Monthly Payment EXISTING MARKET GROSS RENTAL INCOME $172,680$246,180 Vacancy (3%) ($5,234)($7,439) Laundry $1,800 TOTAL GROSS OPERATING INCOME $169,246$240,541 LESS OPERATING EXPENSES Property Insurance $4,433 Real Estate Taxes (Based on $1,995,000 Value) $28,680 Business Tax 1.39% $2,138 Resident Manager $8,400 Repairs & Maintenance $6,000 Rap Fee $480 SERVICES Rubbish $4,924 Pest Control $2,400 UTILITIES Electric & Gas $11,008 *Water & Sewer $8,666 Telphone $600 TOTAL OPERATING EXPENSES $77,729 NET OPERATING INCOME $91,517$162,812 LESS: TOTAL ANNUAL DEBT SERVICE $67,332 CASH FLOW $24,185 $95,480 Special Note *Currently there are 16 electric meters in the building but are not connected. There is a process with PG&E to reconnect them to upgrade the service which I have not pursued. Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

8 Summary Rent Roll 1937 26th Avenue Oakland, CA 94601 Unit Move InCurrentMarket #MixDateRent 1Studio5/15/2015 $ 995 $ 1,195 2Studio9/11/2012 $ 750 $ 1,195 3Studio5/7/2015 $ 995 $ 1,195 4Studio3/2/2015 $ 850 $ 1,195 5Studio2/3/2014 $ 750 $ 1,195 6Studio7/16/2012 $ 675 $ 1,195 7Studio7/18/2013 $ 775 $ 1,195 8Studio9/11/2013 $ 775 $ 1,195 9Studio7/16/2012 $ 675 $ 1,195 10Studio5/30/2015 $ 995 $ 1,195 11Studio7/16/2012 $ 650 $ 1,195 12Studio7/16/2012 $ 650 $ 1,195 13Studio7/2/2015 $ 995 $ 1,195 14Studio7/27/2013 $ 775 $ 1,195 15Studio8/5/2015 $ 995 $ 1,195 16Studio6/6/2015 $ 995 $ 1,195 17*1/1.06/3/2015 $ 1,095 $ 1,395 Laundry $ 150 17UnitsMonthly $ 14,540 $ 20,665 Annually $ 174,480 $ 247,980 Property Breakdown Property Value: $ 1,995,000=$117,353 Per Unit Property Sq Ft:7,077=$281.90 Per Sq Ft Existing GRM:11.43 Market GRM:8.05 Existing Cap:4.6 Market Cap:8.1 Existing Cash on Cash:3% Market Cash on Cash:12% Upside in Rents:30% *Apartment 17 is a non-Conforming unit. Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

9 Sale Comparables Subject Property Address# of Units Unit Mix Sales Price Cost Per Unit Building Size Cost Per Foot GRMCAPClose of Escrow 1937 26th Avenue Oakland, CA 9460117 16-S/1 1-1/1$1,995,000$117,353 7,077 $ 281.9011.434.6%TBA 550 Fairmont Avenue10 6-1/1 4-2/1 $1,800,000$180,000 6,632$271 14.843.3%Active 500 Zorah Street13 7-s/1 6-1/1 $2,265,000$174,231 7,393$306 12.004.6%3/26/2015 285 Fairmont Avenue21 21-1/1 $3,150,000$150,000 12,075$261 14.733.0%Active 1810 E 25th Street23 8-1/1 14-2/1 1-3/1$3,425,000$148,913 12,608$272 6.2%7/9/2015 NorthGate Terrance Senior Community 550 24th Street Oakland, CA201 108- S/1 21 - 1/1 $ 27,500,000 $ 136,816 113,960$241 5/14/2015 870 31st Street77-2/1$936,000$133,714 5,056$1859.895.8%12/31/2014 3020 35th Avenue18 2-1/1 16-2/1$2,280,000$126,667 13,959$163 7/16/2015 949 35th Street10 8-1/1 2-2/1$1,150,000$115,000 4,416$26010.226.0%TBA 2600 International Blvd.24 $2,410,000$100,417 12,158$1988.906.7%6/25/2015 21659 Montgomery Street Hayward, CA5050-1/1 $ 5,000,000 $ 100,000 33,111$151 1.1%Active 2912 14th Avenue18 14-1/1 4-2/1$1,800,000$100,000 12,079$149 2/27/2015 1921 26th Avenue18 12-1/1 6-2/1$1,800,000$100,000 10,341$1749.26.1%10/22/2014 2575 Fruitvale Avenue8- $767,500$95,938 4,752$16210.005.7%5/29/2015 Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

10 Rent Comparables Surveyed Property Studio1 Bedrooms In the vicinity of 1937 26th Ave Oakland, CA 94601 $650-1,095$1,095 2912 14th Avenue #108 Oakland CA 94606$1,400 3513 Lincoln Avenue Oakland CA 94602$1,395 1907 E. 30th Street Oakland CA$1,275 1907 E 30th Street Oakland, CA$1,275 1929-1937 E 29th Street Oakland, CA$927 2924 14th Avenue Oakland, CA$922 3232 14th Avenue Oakland CA 94602 $1,575 3230 14th Street Oakland CA 94601 $1,550 1930 E 27th Street Oakland, CA $1,523 2029 E. 20oth Street Oakland CA 94606 $1,500 2800 21st Avenue Oakland, CA $1,500 1715 High Street Oakland, CA 94601 $1,448 1637 33rd Avenue Oakland, CA $1,425 1811 27th Avenue Oakland, CA 94601 $1,400 5549 Foothill Avenue Oakland, CA $1,350 2626 High Street Oakland, CA $1,325 2543 E. 16th Street #5 Oakland CA 94601 $1,300 1951 E 30th Street Oakland, CA $1,205 1810 E 25th Street Oakland, CA $1,141 2382-2396 Grande Vista PL, Oakland, CA $1,080 Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

11 Rent Data for Oakland by Zip Code and Unit Type Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

12 Port of Oakland *This is great for landlords looking for tenants in the rental market.

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14 Oakland: The nation’s hottest rental market

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16 Oakland Rises to the Top of Investors’ Wish List

17 Location Local Map Regional Map

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