For Sale 20 Acres (MOL) Seniors Housing Land · YUBA CITY LAND DEVELOPMENT | OFFERING MEMORANDUM...

COLLIERS INTERNATIONAL P. 1YUBA CITY LAND DEVELOPMENT | OFFERING MEMORANDUM

20 Acres (MOL) Seniors Housing LandEL MARGARITA RD, YUBA CITY CA, 95993

COLLIERS INTERNATIONAL National Seniors Housing Group

www.colliers.com

COLLIERS INTERNATIONAL P.1

Investment OpportunityOffering MemorandumFor Sale

Subject

Land Specifications

> Parcel 1: 16 Acres (MOL)

> Parcel 2: 4 Acres (MOL)

> Location: El Marguerita Road, Yuba City, CA 95993

> Sutter County Parcel #’s: 63-010-136 & 63-010-137

> Zoning: Currently R-1 Transitioning to R-3

> Entitlements: Seniors Housing Residential Facilty

Offered at: $4,150,000

Colliers Contacts

Kenneth J. Carriero, CCIMSenior Vice President | Regional Director | ClearwaterNational Seniors Housing Group

Phone +1 800 858 5904 Mobile +1 727 804 5390Fax +1 813 200 3402

[email protected]

Damien CarrieroAssociate Director | ClearwaterNational Seniors Housing Group

Phone +1 800 858 5904 Mobile +1 727 403 8000Fax +1 813 200 3402

[email protected]

Trent ThomasonVice President | Sacramento+1 916 563 3011Mobile +1 530 933 8909Fax +1 916 830 [email protected]

Marcia AndersonMarketing Coordinator

Phone +1 727 298 5310 Fax +1 813 200 [email protected]

Colliers International National Seniors Housing Group311 Park Place BoulevardSuite 600Clearwater, Florida 33759

Phone: +1 800 858-5904Fax: +1 813 200 3402

www.colliers.com


Table of Contents

> PROPERTY INFORMATIONLocation Map .................................................................................................................................3Site Plan .........................................................................................................................................4

> COMPETITIVE MARKETComp Set Characteristics ..............................................................................................................5Competitive Facilities .....................................................................................................................6Closed Transactions ..................................................................................................................... 7

> MARKET OVERVIEWYuba City .......................................................................................................................................8Demographics ...............................................................................................................................9

> FINANCIAL OVERVIEWFinancial Observation and Projections ...................................................................................... 10


PAGE 3

Property Information

NORTH

Subject

Location Map


Site Plan

The subject is a 20 acre MOL property located on El Margarita Road (see attached plot map), Yuba City California in Sutter County. The property consist of two parcels, one totalling 16.26 acres MOL and the other 4.18 acres MOL. The closest Seniors Housing facility is located 25 miles from the subject. The current owner propsosed to construct a 126,000 square-foot, two-story residential independent living facility. The site has already been entitled to allow a new owner the same Seniors Housing opportunity.

The above site plan illustration is based on the following:

> Studio, one and two bedroom units ranging from 600 to 1,100 square feet

> Pool side patio option will be available to select first floor apartments

> Each apartment will have a full kitchen, washer/dryer and patio or balcony

> Multiple common areas including library/business center, movie/game room, art studio, country kitchens, salon

services, and dining options

> Fitness facility with separate locker rooms and outdoor pool

> Weekly housekeeping and transportation services provided

> Social activities, entertainment, and meal program options

> On-site convenience store with pharmacy service option


Competitive Market

Comp Set Characteristics Top 5 Operators4 Operator Properties Units Share

Units 395 MBK Senior Living 1 159 50.3%

Avg Age 21 Holiday Retirement 1 107 33.9%

Metros Sacramento, CA Properties Platinum Senior Living 1 50 15.8%

Counties Placer (CA)

Segment DataOccupancy Average Rent RevPAR

Inventory 2Q12 Quarterly Change Annual Change 2Q12 Annual Change 2Q12

Independent Living 236 92.4% -254 bps 551 bps $2,975 4.7% $2,725

Assisted Living 119 95.8% 756 bps 52 bps $4,518 11.2% $4,407

Memory Care 40 95.0% 250 bps -500 bps $5,146 -2.3% $4,893

Nursing Care 59 Protected Protected Protected Protected Protected N/A

Unit DataSegment Unit Type Inventory Unit Mix Occupancy Average Rent Entrance Fee

Independent Living Studio 45 9.9% Protected Protected N/A

Independent Living 1 Bedroom 139 30.6% 93.5% $2,846 N/A

Independent Living 2 Bedroom 52 11.5% 94.2% $3,647 N/A

Assisted Living Studio 47 10.4% 93.6% Protected N/A

Assisted Living 1 Bedroom 72 15.9% 97.2% Protected N/A

Memory Care Studio 40 8.8% 95.0% Protected N/A

Nursing Care Beds 59 13.0% Protected Protected N/A

Occupancy by Unit Average Rent by Unit Type


Name Age Address Metro County Property Type Units

1 Auburn Ravine Terrace 34 750 Aubburn Ravine Rd Auburn, CA Sacramento Placer Majority NCCCRC

IL Units: 57 | AL Units: 22 | NC Beds: 59

2 Casa De Santa Fe 11 3201 Santa Fe Way Rocklin, CA Sacramento Placer Majority AL Combined

IL Units: 72 | AL Units: 64 | MC Units: 23

3 Oaks of Aburn Retirement Residence

17 3250 Blue Oaks Dr. Auburn, CA Sacramento Placer Majority AL Freestanding

AL Units: 33 | MC Units: 17

4 Villa Del Rey 21 1660 3rd St. Lincoln, CA Sacramento Placer Majority AL Combined

N/A

Competitive Facilities

Segment RevPAR

1

2

3

4

NORTH

Subject

Closest facility to subject = 25 miles


Date Property Name Address Property Type/ Campus Type

Inventory Year Built / Renovated

Closed Price Price per Unit

7/18/2012 Sun Oak AL 7241 Canelo Hills Dr Citrus Heighs, CA

Majority AL Combined

AL: 31 | MC: 9Total: 40

1998 $10,300,865 $257,522

7/3/2012 Eagle Lake Village 2001 Paul Bunyan Rd Susanville, CA

Majority AL FreeStanding

AL: 76 Total: 76

2006 $10,347,668 $136,154

6/29/2012 The Lodge 2200 E Long St Carson City, NV


AL: 82 Total: 82

2009 $15,500,000 $189,024

6/14/2014 Country Crest 50 Concordia Ln Oroville, CA

Majority IL FreeStanding

IL: 120 Total: 120

2002 N/A N/A

5/1/2012 Sunrise of Carmichael 5451 Fair Oaks Blvd Carmichael, CA


AL: 22 | MC 26 Total: 48

2009 $4,160,000 $86,667

3/30/2012 Mason Valley 705 South St Yerington, NV


AL: 34 | MC 6 Total: 40

1998 $2,500,000 $62,500

3/6/2012 Gardenville Health & Rehab Center

1573 Mathias Pkwy Gardenville, NV

Majority NC FreeStanding

NC: 60 Total: 60

1999 $4,599,000 $76,650

12/15/2011 Commons at Elk Grove 9564 Sabrina Lane Elk Grove, CA


AL: 71 | MC: 24Total: 95

1980 /2009 $20,017,000 $210,705

12/15/2011 Classic Residence inReno, a Vi Community

3201 Plumas StReno, NV 89509


IL: 100 | AL: 107Total: 207

1989 $52,000,000 $251,208

9/30/2011 Sierra Ridge Alzheimers Center

3265 Blue Oaks DrAuburn, CA


MC: 40 | NC: 24Total: 64

N/A $2,668,500 $41,695

Closed Transactions


The Yuba-Sutter area as it is referred to locally, is comprised of Yuba County (the largest city being Marysville) and Sutter County (the largest city being Yuba City). The area is centrally located in upstate California, approximately a one-hour drive from Sacramento (the state capitol) and 45 minutes to Sacramento International Airport. Sutter County is located along the Sacramento River in the Central Valley of California, north of state capital Sacramento. Sutter County is part of the Greater Sacramento CSA. Highway 99 runs north/south through Yuba City, and Highway 20 runs east/west from Ft. Bragg through Yuba City and Marysville to Grass Valley and Nevada City. Highway 65 connects Marysville with Lincoln, Rocklin and Roseville, and Highway 70 connects Marysville with Sacramento.Yuba City is the principal city of the Yuba City Metropolitan Statistical Area (MSA).

The metro area’s population is 164,138. It is the 21st largest metropolitan area in California ranked behind Redding and Chico. Two of the State’s major economic powerhouses (the San Francisco Bay Area, and Silicon Valley) are within a two to three hour drive from the City. Yuba City’s unique location benefits both businesses and residents and offers a quality, family-oriented lifestyle. The Feather River borders the City to the East and the City’s western horizon is dominated by the Sutter Buttes, popularly believed to be the smallest mountain range in the world.

Yuba City has developed through the years as a pleasant, residential community, which is the trading, and service center for the surrounding agricultural area. The area enjoys many natural and physical assets including attractive climate, level terrain, good highway and rail transportation, adequate water, soil and open land for future growth. In addition, the area offers and abundance of recreational, hunting and fishing areas for your enjoyment. The area climate is typically one of warm, dry summers and moderately cold winters.

The City has a diversity of businesses and professional services including the largest dried fruit processing plant in the world, Sunsweet Growers Incorporated. Although Yuba City’s roots are agriculturally based, its location near the state capitol and Beale Air Force base have made it a regional hub attracting entrepreneurs, manufacturers and green technology companies. Retail and healthcare also make up the largest sectors of the economy. Some other notable employers include the Geweke Auto Group, and Hilbers Incorporated, SharpeSofte and Jaeger Construction. Farming is also the most important part of the Yuba-Sutter area.

In addition to Yuba Community College, three universities are within an hour’s drive – University of California, Davis, California State, Sacramento and California State University, Chico, each offering research and development, entrepreneur and innovation programs as well as numerous Venture Capital and Angel Capital funding institutions.

Market Overview

Yuba-Sutter


Demographics

2000 % 2011A % 2016 %% Change

2011 to 2016Population by Age

Total Population 74,949 90,326 96,170

Median Age Total Pop 33.6 33.7 33.8 0.1%

Median Age 55+ 67.7 66.1 66.1 0.0%

Male Population 37,017 45,327 48,245 0.1%

Age 55 + 6,860 18.5% 9,529 21.0% 10,171 21.1% 6.7%

Age 65 + 3,911 10.6% 4,870 10.7% 5,202 10.8% 6.8%

Median Age Males 32.1 32.5 31.8 -2.3%

Median Age Males 55+ 66.8 65.3 65.3 0.0%

Female Population 37,923 44,997 47,926

Age 55 + 8,813 23.2% 11,040 24.5% 11,793 24.6% 6.8%

Age 65 + 5,413 14.3% 6,227 13.8% 6,642 13.9% 6.7%

Median Age Females 35.2 35.1 32.7 -6.8%

Median Age Females 55+ 68.4 66.8 66.8 0.0%

Income by Age of Head of Household$ 0 - $19,999 797 22.3% 971 19.3% 860 15.6% 21.8%

$ 20,000 - $39,999 932 26.1% 1,089 21.6% 1,091 19.7% 16.8%

$ 40,000 - $59,999 655 18.3% 890 17.7% 972 17.6% 35.9%

$ 60,000 - $74,999 478 13.4% 581 11.5% 669 12.1% 21.4%

$ 75,000 - $99,999 279 7.8% 551 10.9% 667 12.1% 97.6%

$100,000 - $124,999 236 6.6% 454 9.0% 586 10.6% 92.2%

$125,000 - $149,999 91 2.5% 209 4.2% 278 5.0% 130.7%

$150,000 + 100 2.8% 287 5.7% 398 7.2% 187.7%

Median Income Age 55-64 $42,165 $50,417 $56,753

Age Householder 65 - 74 Years

$ 0 - $19,999 889 28.8% 796 22.4% 762 18.9% -10.5%

$ 20,000 - $39,999 943 30.6% 878 24.8% 919 22.8% -6.9%

$ 40,000 - $59,999 471 15.3% 554 15.6% 622 15.4% 17.7%

$ 60,000 - $74,999 241 7.8% 328 9.2% 398 9.9% 35.7%

$ 75,000 - $99,999 237 7.7% 344 9.7% 435 10.8% 44.8%

$100,000 - $124,999 137 4.5% 294 8.3% 393 9.8% 114.3%

$125,000 - $149,999 82 2.7% 147 4.1% 206 5.1% 79.4%

$150,000 + 76 2.5% 207 5.8% 297 7.4% 173.9%

Median Income Age 65-74 $32,557 $42,984 $50,010

Householder Age 75 Plus Years

$ 0 - $19,999 1,277 49.2% 970 33.0% 877 27.7% -24.0%

$ 20,000 - $39,999 648 25.0% 697 23.7% 708 22.4% 7.5%

$ 40,000 - $59,999 353 13.6% 435 14.8% 481 15.2% 23.0%

$ 60,000 - $74,999 129 5.0% 241 8.2% 281 8.9% 87.1%

$ 75,000 - $99,999 71 2.7% 194 6.6% 251 7.9% 173.5%

$100,000 - $124,999 43 1.6% 137 4.7% 189 6.0% 222.0%

$125,000 - $149,999 17 0.7% 82 2.8% 119 3.8% 385.2%

$150,000 + 49 1.9% 180 6.1% 255 8.1% 265.1%

Median Income Age 75+ $20,323 $33,534 $39,842


FY FY FY FY FY FY

2013-2014 2014-2015 2015-2016 2017-2018 2019-2020 2020-2021

Residents Census 40 60 76 80 84 84

Room $1,296,000 $2,160,000 $2,818,000 $3,055,000 $3,304,000 $3,403,000

Additional $120,000 $180,000 $180,000 $190,000 $190,000 $190,000

Salaries $553,000 $651,000 $696,000 $714,000 $739,000 $765,000

Benefits $140,000 $160,000 $165,000 $170,000 $179,000 $186,000

Supplies $120,000 $160,000 $220,000 $250,000 $260,000 $280,000

Utilities $120,000 $154,000 $176,000 $190,000 $200,000 $205,000

Tax/Lic/Ins-1.1%p. Tax $172,000 $172,000 $172,000 $172,000 $172,000 $172,000

Marketing $25,000 $20,000 $20,000 $20,000 $10,000 $50,000

Repairs/Maint/Other $10,000 $10,000 $30,000 $50,000 $50,000 $50,000

Total Expenses $1,140,000 $1,327,000 $1,479,000 $1,566,000 $1,610,000 $1,708,000

Projected NOI $276,000 $1,013,000 $1,519,000 $1,679,000 $1,884,000 $1,885,000

Annual Debt Service $863,353 $863,353 $863,353 $863,353 $863,353 $863,353

BTCF ($587,353) $149,647 $655,647 $815,647 $1,020,647 $1,021,647

Less Mortgage Interest ($715,991) ($706,902) ($697,253) ($687,008) ($676,102) ($664,584)

Less Depreciation ($466,000) ($466,000) ($465,000) ($465,000) ($464,000) ($464,000)

Tax Liability ($1,769,344) ($1,023,255) ($506,606) ($336,361) ($119,455) ($106,937)

After Tax Cash Flow ($587,353) $149,647 $655,647 $815,647 $1,020,647 $1,021,647

EOY Principal Reduction $147,361 $156,450 $166,100 $176,345 $187,221 $198,768

EOY Total Return ($439,992) $306,097 $821,747 $991,992 $1,207,868 $1,220,415

Valuation Summary

The subject property is in a rural area with limited facilities for seniors. Based on the calculations of the total project costs, plus the anticipated

income growth of the project, we arrive at an offering market price of $4,150,000

Estimated Value and Representation Terms

Based on current seniors housing opportunities within the Yuba City area, along with the proximately of the major thoroughfare, Highway 20, may support a higher value than those of the comparable sales illustrated within this report. Calculating a weighted average sold price per acre within

the last 18 months is $207,500

Financial Observation and Projections

COLLIERS INTERNATIONAL

National Seniors Housing GroupPhone: +1 800 858-5904 Fax +1 813 200 3402

For Sale 20 Acres (MOL) Seniors Housing Land · YUBA CITY LAND DEVELOPMENT | OFFERING MEMORANDUM...

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Transcript of For Sale 20 Acres (MOL) Seniors Housing Land · YUBA CITY LAND DEVELOPMENT | OFFERING MEMORANDUM...