633 Clara St - LoopNet...nainorcal.com 2 633 Clara St 633 Clara St Oakland, California 94603 The...

Fritz JacobsInvestment Advisor

O: 415.805.7118M: 312.259.7457

[email protected] #01967918

Marco BarrettoInvestment Advisor

O: 415.231.5651M: 415.272.0059

[email protected] #02078316

OfferingMemorandum

633 Clara St633 Clara StOakland, CA 94603

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633 Clara St633 Clara St

Oakland, California 94603

The information contained in the following Investment Summary is proprietary and strictly confidential. It is

intended to be reviewed only by the party receiving it from NAI Northern California Investment Real Estate

Brokerage and should not be made available to any other person or entity without the written consent of Broker.

This Investment Summary has been prepared to provide summary, unverified information to prospective

purchasers, and to establish only a preliminary level of interest in the subject property. The information contained

herein is not a substitute for a thorough due diligence investigation. Broker has not made any investigation, and

makes no warranty or representation, with respect to the income or expenses for the subject property, the future

projected financial performance of the property, the size and square footage of the property and improvements,

the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal

regulations, the physical condition of improvements thereon, or the financial condition or business prospects of

any tenant, or any tenant’s plans or intentions to continue occupancy of the subject property.

The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable;

however, Broker has not verified, and will not verify, any of the information contained herein, nor has Broker

conducted any investigation regarding these matters and makes no warranty or representation whatsoever

regarding the accuracy or completeness of the information provided. All potential purchasers must take

appropriate measures to verify all of the information set forth herein.

Fritz JacobsO: 415 805 [email protected] | CA CalDRE #01967918

Marco BarrettoO: 415 231 [email protected] | CA CalDRE #02078316

For More Information:

Confidentiality & Disclosure

633 Clara St633 Clara St, Oakland, CA 94603

Section 1

PROPERTYINFORMATION

1

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Property Overview633 Clara St. provides the right investor with an opportunity toacquire a property with significant value-add opportunity in asteadily improving area of East Oakland. The property consists offour (2 bed / 1 bath) units, on a 6,640 square foot lot.

Current rents are well below market in 3 units, offering upsidewith minimal capital improvements for the new owner.

Location OverviewLocated on a quiet section of Clara Ave. between San LeandroSt. and I-880, 633 Clara Ave is well-situated for tenants whowork in the bustling commercial corridor in East Oakland. Theproperty sits less than .5 miles from the 98th Ave. andHegenberger Rd. on-ramps, providing convenient access up anddown the East Bay via I-880.

This property is poised for significant long-term appreciation dueto it's proximity to the Oakland Coliseum and Oracle Arena, whichhas been identified by the City for redevelopment for many years.

SALE PRICE: $795,000

PRICE/UNIT: $198,750

PRICE/SF: $245

NUMBER OF UNITS: 4

CAP RATE: 5.1%

GRM: 13.79

MARKET CAP RATE: 10.10%

MARKET GRM: 7.55

NOI: $37,636

LOT SIZE: 6,640 SF

BUILDING SIZE: 3,234 SF

YEAR BUILT: 1964

ZONING: Fourplex

MARKET: Oakland

SUB MARKET: East Oakland

Executive Summary


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Additional Photos


Section 2

LOCATIONINFORMATION

2

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Location Maps


Regional Map


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Aerial Map


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Section 3

FINANCIALANALYSIS

3

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Investment Overview CURRENT MARKET

Price $795,000 $725,000

Number of Units 4 4

Price per Unit $198,750 $181,250

Approximate Square Footage 3,234 3,234

Price per Square Footage $245 $224

GRM 13.79 7.55

CAP Rate 5.10% 10.10%

Operating Data CURRENT MARKET

Gross Scheduled Income $57,660 $96,000

Vacancy Cost (2.0%) - $1,153 - $1,920

Gross Operating Income $56,507 $94,080

Operating Expenses - $18,871 - $20,769

Net Operating Income $37,636 $73,311

Debt Service - - - -

Pre-Tax Cash Flow $14,466 $52,039

Cash-on-Cash Return % (yr 1) 4.00% 14.40%

Principal Reduction (yr 1) + - + -

Total Return (yr 1) $14,466 $52,039

Return on Investment % 1.82% 7.18%

Financial Summary


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Fixed Expenses Expense Expense / Unit % Of Total % Gross Notes

Tax $9,373 $2,343 49.67% 16.59% 1.349%

Special Assessment $1,900 $475 10.07% 3.36% Actual

Insurance $1,000 $250 5.3% 1.77% Estimate

TOTAL FIXED EXPENSES $12,273 $3,068 65.04% 21.72%

Operational Expenses:

PG&E $172 $43 0.91% 0.3% Actual

Water/Sewage $3,755 $938 19.9% 6.65% Actual

Garbage $1,671 $417 8.85% 2.96% Actual

Maintenance $1,000 $250 5.3% 1.77% $250 per door

TOTAL OPERATIONAL EXPENSES $6,598 $1,649 34.96% 11.68%

TOTAL EXPENSES: $18,871 $4,717 100% 33.4%

Expenses Sheet


UnitNumber

UnitBed

UnitBath

CurrentRent

MarketRent

1 2 1 $875 $2,000

2 2 1 $875 $2,000

3 2 1 $1,975 $2,000

4 2 1 $875 $2,000

Totals/Averages $4,600 $8,000

Rent Roll


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Section 4

SALESCOMPARABLES

4

Subject Property

633 Clara St | Oakland, CA 94603

$795,000Sale Price: 1964Year Built:

3,234 SFBuilding SF: $245.83Price PSF:

4No. Units: $198,750Price / Unit:

13.79GRM: 5.10%CAP:

$37,636NOI:

1

8908 Plymouth StreetOakland, CA 94621

$705,000Sale Price: 0 ACLot Size:

1952Year Built: 4,248 SFBuilding SF:

$165.96Price PSF: 4No. Units:

$176,250Price / Unit: 7.62%CAP:

12/05/2019Closed:

4 fully occupied studios

1

2

1035 76th AvenueOakland, CA 94621




$194,750Price / Unit: 6.13%CAP:

10/08/2019Closed: 100%Occupancy:

12.26GRM:

3 (2bd/1ba) and 1 (3bd/2ba) apartment, 100% occupied

2

3

9100 91st AvenueOakland, CA 94603




$161,250Price / Unit: 4.00%CAP:

11/01/2019Closed:

(4) studios. 4 free surface spaces are available

3

Sales Comparables


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4

9701 E StreetOakland, CA 94603




$160,000Price / Unit: 6.11%CAP:

08/06/2019Closed: 100%Occupancy:

(5) studios, 100% occupied

4

Sales Comparables


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Subject Property Price Bldg. SF Price/SF Price/Unit CAP GRM # Of Units

633 Clara St633 Clara StOakland, CA 94603

$795,000 3,234 SF $245.83 $198,750 5.10% 13.79 4

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

18908 Plymouth StreetOakland, CA94621

$705,000 4,248 SF $165.96 $176,250 7.62% - 4 12/05/2019

21035 76th AvenueOakland, CA94621

$779,000 3,383 SF $230.27 $194,750 6.13% 12.26 4 10/08/2019

39100 91st AvenueOakland, CA94603

$645,000 3,290 SF $196.05 $161,250 4.00% - 4 11/01/2019

49701 E StreetOakland, CA94603

$800,000 3,132 SF $255.43 $160,000 6.11% - 5 08/06/2019

Totals/Averages Price Bldg. SF Price/SF Price/Unit CAP GRM # Of Units

$732,250 3,513 SF $211.93 $173,062 5.97% 12.26 4.25

Sales Comparables Summary


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633 Clara St | Oakland, CA 94603Subject Property

1Oakland, CA94621

8908 Plymouth Street 2Oakland, CA94621

1035 76th Avenue 3Oakland, CA94603

9100 91st Avenue

4Oakland, CA94603

9701 E Street

Sales Comparables Map


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Section 5

DEMOGRAPHICS

5

* Demographic data derived from 2010 US Census

Population 1 Mile 5 Miles 10 MilesTOTAL POPULATION 18,158 403,395 989,197

MEDIAN AGE 28.8 35.2 36.6

MEDIAN AGE (MALE) 27.2 34.1 35.6

MEDIAN AGE (FEMALE) 29.9 36.4 37.4

Households & Income 1 Mile 5 Miles 10 MilesTOTAL HOUSEHOLDS 4,885 137,601 374,189

# OF PERSONS PER HH 3.7 2.9 2.6

AVERAGE HH INCOME $50,593 $70,340 $80,802

AVERAGE HOUSE VALUE $391,001 $530,215 $611,817

Ethnicity 1 Mile 5 Miles 10 Miles% HISPANIC 60.6% 32.1% 25.2%

Race 1 Mile 5 Miles 10 Miles% WHITE 26.6% 37.9% 47.6%

% BLACK 29.5% 25.5% 19.9%

% ASIAN 5.4% 19.8% 20.3%

% HAWAIIAN 1.1% 0.8% 0.7%

% INDIAN 1.7% 0.7% 0.6%

% OTHER 36.8% 16.0% 11.5%

Demographics Map


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* Demographic data derived from 2010 US Census

1 Mile 5 Miles 10 Miles

Total Households 4,885 137,601 374,189

Total Persons Per Hh 3.7 2.9 2.6

Average Hh Income $50,593 $70,340 $80,802

Average House Value $391,001 $530,215 $611,817

1 Mile 5 Miles 10 Miles

Total Population 18,158 403,395 989,197

Median Age 28.8 35.2 36.6

Median Age (Male) 27.2 34.1 35.6

Median Age (Female) 29.9 36.4 37.4

Demographics Report


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Section 6

ADDITIONALINFORMATION

6

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Marco BarrettoInvestment Advisor415.231.5651 tel415.272.0059 cell415.481.0984 [email protected]

Professional Background

NAI Northern California is pleased to have Marco Barretto tothe team as an Investment Advisor based in our San Franciscooffice.

Prior to joining, Marco attended the University of SanFrancisco where he received a degree in Economics. He hasbeen playing tennis for all of his life, including four yearsof NCAA D1 competition at his university. Originally a Californianative from Tiburon, Marco's hobbies include being outdoors,listening to music, and keeping up with his favorite sportsteams including the Giants, the Warriors, and the 49ers.

Education

University of San Francisco - BA Economics

Agent Profile & Contact 1


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Fritz JacobsInvestment AdvisorCalDRE #01967918415.805.7118 tel312.259.7457 cell415.481.0984 [email protected]

Professional Background

Fritz Jacobs began his real estate career at the age of twelve,renovating foreclosed properties on Chicago's south and westsides for his family's real estate partnership. Over histwelve-year career Fritz became a top-performing real estatemanager, investor, and agent; combining sales, marketing,and business development expertise to deliver substantialrevenue growth in highly competitive real estate markets.Priorto joining NAI, Fritz was the Vice President for two of the topperforming property management companies in San Franciscoand Oakland. Fritz utilizes his intimate knowledge of themulti-family market and asset class to help clients achieveoptimal return through acquisitions and dispositions.

Education

University of Illinois at Urbana-Champaign

CCIM Institute

Recent Transactions

• 1829 6th Ave. Oakland, 24 Units $6,765,000• 5427 Manila Ave. Oakland, 4 Units $2,400,000• 1415-1435 45th Ave Oakland, 4 Units $1,495,000• 3029-3031 Chestnut Ave. Oakland, 2 Duplex $795,000• 1615-1617 13th St. Oakland, Triplex $645,000• 1455 1st Ave Oakland 18 Units $4,500,000 pending• 2805 Linden Ave Oakland, (Vacant Church) $475,000• 633 Clara Ave, Oakland 4 units $675,000

Agent Profile & Contact 2


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