MERCED GARDENS Exclusive Multifamily Offering...Effective Rental Income $344,584 $413,192 $425,773 ....
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PROJECT BASED SECTION 8 COMMUNITY • Seniors Oriented Community • Available for New Debt • Access to Major Retail & Education Centers Exclusive Multifamily Offering a Mogharebi-Ozen Company 47 Units | Built: 1974 | $4,350,000 3299 Meadows Avenue, Merced, CA 95348 LISTINGS.MOGHAREBI.COM/MERCEDGARDENS ROBIN C. KANE Senior Vice President 559.761.0020 [email protected] CA BRE #00583537 GORDON J. LARKIN Senior Investment Advisor 559.761.0015 [email protected] CA BRE #00305847 BRENDAN KANE Senior Investment Advisor 559.892.0036 [email protected] CA BRE License #00627647
Transcript of MERCED GARDENS Exclusive Multifamily Offering...Effective Rental Income $344,584 $413,192 $425,773 ....
PROJECT BASEDSECTION 8 COMMUNITY
• Seniors Oriented Community
• Available for New Debt
• Access to Major Retail & Education Centers
Exclusive Multifamily Offering
IMPORTANT INFORMATION & DISCLAIMER: 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/MercedGardens
MERCED GARDENS3299 Meadows Avenue, Merced, CA 95348Listings.Mogharebi.com/MercedGardens
Pro Forma Income & ExpensesUNIT MIX & RENT SCHEDULE
20 1 / 1 43% 673 $623 $12,460 $640 $12,800
18 2 / 1 38% 855 $743 $13,374 $770 $13,860
9 3 / 1.5 19% 1,159 $965 $8,685 $990 $8,910
47 39,281 $34,519 $35,570
INCOMEScheduled Gross Rent $360,648 $414,228 $426,840
Vacancy / Bad Debt / Concessions 4.5% ($16,064) 1.5% 0.3% ($1,036) 0.3% ($1,067)
Effective Rental Income $344,584 $413,192 $425,773
Other Revenue Collected $1,300 $1,300 $2,755
Total Other Revenue $1,300 $1,300 $3,317
Effective Gross Income (EGI) $345,884 $414,492 $429,090
Total Expenses $174,652 $190,371 $191,261
Per Unit: $3,716 $4,050 $4,069Per Square Foot: $4.45 $4.85 $4.87
Percent of EGI: 50.49% 45.93% 44.57%
Net Operating Income (NOI) $171,232 $224,121 $237,829
NEW LOAN PRICING Price $ / Unit $ / SF Current Cap Pro Forma CapListing Price $4,350,000 $92,553 $111 5.15% 5.47%Debt Service ($163,562) ($163,562)
Projected Net Cash Flow $60,559 $74,267
Cash-on-Cash Return 4.05% 4.97%
DSCR-Debt Service Coverage Ratio 137.02% 145.41%
NEW LOAN LTV Amount Interest Term Payment Amortization Fees I/O Term66% $2,855,000 4.00% 7 ($13,630) 30 0.50% 0
DEBT SUMMARY Scenario Loan Amt Down Payment Rate LTV Mo. Payment Debt ConstantNew Loan $2,855,000 $1,495,000 4.00% 66% ($13,630) 5.73%
INCOME AND EXPENSE NOTES1. Actual Scheduled Rents are derived from the Rent Roll dated August 31, 2017.2. Expenses are annualized based on a 3-Month Statement from June 2017 to August 2017.
4. Employee Housing is included in Payroll and is based on the rent roll and adjusted to the current market rent.5. Current Asking Rent is based on a August 31, 2017 rent survey.6. The projected vacancy allowance includes rollover and potential rent loss. 7. Current Pro Forma (Aug 2017) - comprises contract rent, estimated vacancy / bad debt, T3 other income, and adjusted operating expenses.8. TMG Pro Forma (Year-1) - reflects asking rents adjusted upward by 3.00%, recapture of loss-to-lease, market occupancy, and adjusted expenses.9. Merced Gardens is encumbered by a Project Based Section-8 HAP contract that runs through December 31, 2025.
Floor PlanUnits % of Mix
Contract RentMonthly
Pro Forma(Year-1)
Contract RentPro Forma
(Current)
Contract RentPro Forma
(Year-1)
Current Contract
Rent
Historic Rent(T3 Aug 2017)
Current Pro Forma (Aug 2017)
TMG Pro Forma
(Year-1)
EstimatedSquare Feet
3. Property Tax for adjusted expenses is based on the sale price and an ad valorem tax rate of 1.11130% with 100.00% welfare exemption and direct assessments totaling $8.00 plus a non-profit fee totaling $5,640.00. For in-place expenses there is no welfare exemption or related non-profit fees included.
■ Prospective Buyers are Encouraged to Contact the Investment Advisors to Schedule a Tour
a Mogharebi-Ozen Company
Investment SummaryPRICE $4,350,000
PER UNIT $92,553
PER SQ. FT. $110.74
PRO FORMA CAP RATE 5.47%
ACTUAL CAP RATE 5.15%
Property DescriptionUNITS 47
RENTABLE SF 39,281
YEAR BUILT 1974
Site DetailsAPN 058-030-029-000
LOT SIZE 3.23 acres
DENSITY 14.6 units per acre
PARKING 48 Carports and 22 Surface
PARKING RATIO 1.49
ConstructionBUILDINGS 9 Residential
STORIES One- and Two-Story
FOUNDATION Slab-on Concrete
FRAMING Wood
EXTERIOR Stucco and Wood
ROOF Pitched, Asphalt Shingle
UtilitiesELECTRICITY Tenant - Indv. Metered
GAS Tenant - Indv. Metered
WATER Landlord - Master Metered
SEWER Landlord - Master Metered
TRASH Landlord - Master Metered
MechanicalHVAC Centralized (1/Unit)
WATER HEATER Indv. Gas Boiler(1/Building)
FIRE PROTECTION Smoke Detector/Extinguisher
PLUMBING PVC and Cast Iron
47 Units | Built: 1974 | $4,350,000
3299 Meadows Avenue, Merced, CA 95348LISTINGS.MOGHAREBI.COM/MERCEDGARDENS
ROBIN C. KANESenior Vice President
CA BRE #00583537
GORDON J. LARKINSenior Investment Advisor
CA BRE #00305847
BRENDAN KANESenior Investment Advisor
CA BRE License #00627647
ROBIN C. KANESenior Vice President
CA BRE #00583537
GORDON J. LARKINSenior Investment Advisor
CA BRE #00305847
BRENDAN KANESenior Investment Advisor
CA BRE License #00627647
Listings.Mogharebi.com/MercedGardens Listings.Mogharebi.com/MercedGardens
MERCED GARDENS3299 Meadows Avenue, Merced, CA 95348Listings.Mogharebi.com/MercedGardens
PROJECT BASED SECTION 8 COMMUNITYHAP Agreement covering all 47 units expires December 31, 2025. This presents a reliable income stream for investors.
SENIORS ORIENTED COMMUNITYThis tenant profile assures lower turnover, greater opportunities for community based programs.
AVAILABLE FOR NEW DEBTMerced Gardens will be delivered free and clear of debt, allowing new ownership to optimize their capital stack and access historically low interest rates.
ACCESS TO MAJOR RETAIL AND EDUCATION CENTERSMerced Gardens is conveniently located one block west of Target, Merced Mall, and United Artists Regency movie theater. Northwest or Merced Gardens is Merced College and Rudolph Intermediate School.
The Mogharebi Group is pleased to announce that it has been retained as the exclusive listing agent for the sale of Merced Gardens Apartments, a 47-unit apartment community located in Merced, California.
Investment Opportunity Location DescriptionPOPULATIONFrom 2010 to 2016, the population in the city of Merced grew by approximately 5%, from 78,958 to 82,594 residents. By 2022, the population is projected to rise to over 86,000 residents equating to nearly 1% growth annually. Within a three-mile radius of Merced Gardens there are currently 85,436 residents, this number is expected to rise 4.91% over the next five years to a total of 92,278 residents.
HOUSINGWithin a three-mile radius around Merced Gardens, there are 30,255 housing units; 50% are renter-occupied, 41% are owner-occupied, and 9% are vacant. As of October 2017, the median sale price of a single-family home within the city of Merced was $249,900.
MULTIFAMILYIn 2017, an improving job market in the Central Valley has led to leasing activity at twice the pace of inventory growth as vacancy lowered 10 basis points to 3.4%, the lowest year-end rate since 2001 when vacancy was 3.1%. A total of 1,000 apartments came online in 2017, up from 600 deliveries during the prior year. Spurred by rising demand, the average asking rent advanced an average of 4.6% across the Central Valley posting an annual increase in asking rents over $1,060.
EDUCATIONPrimary EducationRivera Elementary and Middle school is a located only a few minutes from Merced Gardens Apartments and Merced High is only five minutes from the apartments. Thirteen hundred dedicated certificated and classified staff serve 10,800 students on a traditional schedule in thirteen K-6 elementary schools, all with state preschool classes, and four 7-8 middle schools. Made up of nine high schools and one adult school, Merced Union High School District educated around 40,000 students annually. Merced City School District (1,300 Employees) and the Merced Union High School District (891 Employees) employ over 2,000 employees and are both within the cities top five largest employers.
Higher EducationLocated within 15 minutes of Merced Gardens Apartments, University California Merced, a four-year, public university that is the tenth and newest campus of the University of California system. The 810-acre campus is the first American research university to be built in the 21st century. UC Merced is home to more than 10,000 undergraduate students, over 500 post graduates and 264 academic staff members. UC Merced has three schools offering 21 undergraduate majors and 22 minors. In November 2015 the University of California regents approved a $1.14 billion
Unit Amenities
» Electric Range / Oven
» Hood-fan
» Garbage Disposal
» Dishwasher (in 3-bed units)
» Refrigerator
» Air-Conditioning
» Balcony / Covered Patio
» Private Entrance
» Window Coverings
» Plush Carpeting in Bedrooms
» Cable Ready
» Wall-to-Wall Carpeting in Living
Areas
» Vinyl Tile in Kitchen and Bathrooms
» Forced Air Unit Heating System
» Pre-Wired for Cable and Security
Alarm
Common Area Amenities
» Playground
» Laundry Room
» Outdoor Picnic Area
» Garden / Courtyard, Walkways
» Garages and Covered Parking
» Controlled Access Community
» Leasing Office
proposal to double the size of UC Merced, the new space is expected to be built by 2020. Current plans call for both a school of medicine and a school of management to be integrated onto the campus in the coming years.
TOP AREA EMPLOYERSThe largest employers in Merced are the Foster Farms Inc. (3,214), UC Merced (1,997), County of Merced (1,956), Mercy Medical Center (1,337), Dole Packaged Foods (1,235), Merced City School District (1,127), Merced Union High School District (1,060), Merced College (883), Liberty Packing Company (650), and Quad Graphic (420).
Listings.Mogharebi.com/MercedGardens Listings.Mogharebi.com/MercedGardens
MERCED GARDENS3299 Meadows Avenue, Merced, CA 95348Listings.Mogharebi.com/MercedGardens
PROJECT BASED SECTION 8 COMMUNITYHAP Agreement covering all 47 units expires December 31, 2025. This presents a reliable income stream for investors.
SENIORS ORIENTED COMMUNITYThis tenant profile assures lower turnover, greater opportunities for community based programs.
AVAILABLE FOR NEW DEBTMerced Gardens will be delivered free and clear of debt, allowing new ownership to optimize their capital stack and access historically low interest rates.
ACCESS TO MAJOR RETAIL AND EDUCATION CENTERSMerced Gardens is conveniently located one block west of Target, Merced Mall, and United Artists Regency movie theater. Northwest or Merced Gardens is Merced College and Rudolph Intermediate School.
The Mogharebi Group is pleased to announce that it has been retained as the exclusive listing agent for the sale of Merced Gardens Apartments, a 47-unit apartment community located in Merced, California.
Investment Opportunity Location DescriptionPOPULATIONFrom 2010 to 2016, the population in the city of Merced grew by approximately 5%, from 78,958 to 82,594 residents. By 2022, the population is projected to rise to over 86,000 residents equating to nearly 1% growth annually. Within a three-mile radius of Merced Gardens there are currently 85,436 residents, this number is expected to rise 4.91% over the next five years to a total of 92,278 residents.
HOUSINGWithin a three-mile radius around Merced Gardens, there are 30,255 housing units; 50% are renter-occupied, 41% are owner-occupied, and 9% are vacant. As of October 2017, the median sale price of a single-family home within the city of Merced was $249,900.
MULTIFAMILYIn 2017, an improving job market in the Central Valley has led to leasing activity at twice the pace of inventory growth as vacancy lowered 10 basis points to 3.4%, the lowest year-end rate since 2001 when vacancy was 3.1%. A total of 1,000 apartments came online in 2017, up from 600 deliveries during the prior year. Spurred by rising demand, the average asking rent advanced an average of 4.6% across the Central Valley posting an annual increase in asking rents over $1,060.
EDUCATIONPrimary EducationRivera Elementary and Middle school is a located only a few minutes from Merced Gardens Apartments and Merced High is only five minutes from the apartments. Thirteen hundred dedicated certificated and classified staff serve 10,800 students on a traditional schedule in thirteen K-6 elementary schools, all with state preschool classes, and four 7-8 middle schools. Made up of nine high schools and one adult school, Merced Union High School District educated around 40,000 students annually. Merced City School District (1,300 Employees) and the Merced Union High School District (891 Employees) employ over 2,000 employees and are both within the cities top five largest employers.
Higher EducationLocated within 15 minutes of Merced Gardens Apartments, University California Merced, a four-year, public university that is the tenth and newest campus of the University of California system. The 810-acre campus is the first American research university to be built in the 21st century. UC Merced is home to more than 10,000 undergraduate students, over 500 post graduates and 264 academic staff members. UC Merced has three schools offering 21 undergraduate majors and 22 minors. In November 2015 the University of California regents approved a $1.14 billion
Unit Amenities
» Electric Range / Oven
» Hood-fan
» Garbage Disposal
» Dishwasher (in 3-bed units)
» Refrigerator
» Air-Conditioning
» Balcony / Covered Patio
» Private Entrance
» Window Coverings
» Plush Carpeting in Bedrooms
» Cable Ready
» Wall-to-Wall Carpeting in Living
Areas
» Vinyl Tile in Kitchen and Bathrooms
» Forced Air Unit Heating System
» Pre-Wired for Cable and Security
Alarm
Common Area Amenities
» Playground
» Laundry Room
» Outdoor Picnic Area
» Garden / Courtyard, Walkways
» Garages and Covered Parking
» Controlled Access Community
» Leasing Office
proposal to double the size of UC Merced, the new space is expected to be built by 2020. Current plans call for both a school of medicine and a school of management to be integrated onto the campus in the coming years.
TOP AREA EMPLOYERSThe largest employers in Merced are the Foster Farms Inc. (3,214), UC Merced (1,997), County of Merced (1,956), Mercy Medical Center (1,337), Dole Packaged Foods (1,235), Merced City School District (1,127), Merced Union High School District (1,060), Merced College (883), Liberty Packing Company (650), and Quad Graphic (420).
PROJECT BASEDSECTION 8 COMMUNITY
• Seniors Oriented Community
• Available for New Debt
• Access to Major Retail & Education Centers
Exclusive Multifamily Offering
IMPORTANT INFORMATION & DISCLAIMER: 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/MercedGardens
MERCED GARDENS3299 Meadows Avenue, Merced, CA 95348Listings.Mogharebi.com/MercedGardens
Pro Forma Income & ExpensesUNIT MIX & RENT SCHEDULE
20 1 / 1 43% 673 $623 $12,460 $640 $12,800
18 2 / 1 38% 855 $743 $13,374 $770 $13,860
9 3 / 1.5 19% 1,159 $965 $8,685 $990 $8,910
47 39,281 $34,519 $35,570
INCOMEScheduled Gross Rent $360,648 $414,228 $426,840
Vacancy / Bad Debt / Concessions 4.5% ($16,064) 1.5% 0.3% ($1,036) 0.3% ($1,067)
Effective Rental Income $344,584 $413,192 $425,773
Other Revenue Collected $1,300 $1,300 $2,755
Total Other Revenue $1,300 $1,300 $3,317
Effective Gross Income (EGI) $345,884 $414,492 $429,090
Total Expenses $174,652 $190,371 $191,261
Per Unit: $3,716 $4,050 $4,069Per Square Foot: $4.45 $4.85 $4.87
Percent of EGI: 50.49% 45.93% 44.57%
Net Operating Income (NOI) $171,232 $224,121 $237,829
NEW LOAN PRICING Price $ / Unit $ / SF Current Cap Pro Forma CapListing Price $4,350,000 $92,553 $111 5.15% 5.47%Debt Service ($163,562) ($163,562)
Projected Net Cash Flow $60,559 $74,267
Cash-on-Cash Return 4.05% 4.97%
DSCR-Debt Service Coverage Ratio 137.02% 145.41%
NEW LOAN LTV Amount Interest Term Payment Amortization Fees I/O Term66% $2,855,000 4.00% 7 ($13,630) 30 0.50% 0
DEBT SUMMARY Scenario Loan Amt Down Payment Rate LTV Mo. Payment Debt ConstantNew Loan $2,855,000 $1,495,000 4.00% 66% ($13,630) 5.73%
INCOME AND EXPENSE NOTES1. Actual Scheduled Rents are derived from the Rent Roll dated August 31, 2017.2. Expenses are annualized based on a 3-Month Statement from June 2017 to August 2017.
4. Employee Housing is included in Payroll and is based on the rent roll and adjusted to the current market rent.5. Current Asking Rent is based on a August 31, 2017 rent survey.6. The projected vacancy allowance includes rollover and potential rent loss. 7. Current Pro Forma (Aug 2017) - comprises contract rent, estimated vacancy / bad debt, T3 other income, and adjusted operating expenses.8. TMG Pro Forma (Year-1) - reflects asking rents adjusted upward by 3.00%, recapture of loss-to-lease, market occupancy, and adjusted expenses.9. Merced Gardens is encumbered by a Project Based Section-8 HAP contract that runs through December 31, 2025.
Floor PlanUnits % of Mix
Contract RentMonthly
Pro Forma(Year-1)
Contract RentPro Forma
(Current)
Contract RentPro Forma
(Year-1)
Current Contract
Rent
Historic Rent(T3 Aug 2017)
Current Pro Forma (Aug 2017)
TMG Pro Forma
(Year-1)
EstimatedSquare Feet
3. Property Tax for adjusted expenses is based on the sale price and an ad valorem tax rate of 1.11130% with 100.00% welfare exemption and direct assessments totaling $8.00 plus a non-profit fee totaling $5,640.00. For in-place expenses there is no welfare exemption or related non-profit fees included.
■ Prospective Buyers are Encouraged to Contact the Investment Advisors to Schedule a Tour
a Mogharebi-Ozen Company
Investment SummaryPRICE $4,350,000
PER UNIT $92,553
PER SQ. FT. $110.74
PRO FORMA CAP RATE 5.47%
ACTUAL CAP RATE 5.15%
Property DescriptionUNITS 47
RENTABLE SF 39,281
YEAR BUILT 1974
Site DetailsAPN 058-030-029-000
LOT SIZE 3.23 acres
DENSITY 14.6 units per acre
PARKING 48 Carports and 22 Surface
PARKING RATIO 1.49
ConstructionBUILDINGS 9 Residential
STORIES One- and Two-Story
FOUNDATION Slab-on Concrete
FRAMING Wood
EXTERIOR Stucco and Wood
ROOF Pitched, Asphalt Shingle
UtilitiesELECTRICITY Tenant - Indv. Metered
GAS Tenant - Indv. Metered
WATER Landlord - Master Metered
SEWER Landlord - Master Metered
TRASH Landlord - Master Metered
MechanicalHVAC Centralized (1/Unit)
WATER HEATER Indv. Gas Boiler(1/Building)
FIRE PROTECTION Smoke Detector/Extinguisher
PLUMBING PVC and Cast Iron
47 Units | Built: 1974 | $4,350,000
3299 Meadows Avenue, Merced, CA 95348LISTINGS.MOGHAREBI.COM/MERCEDGARDENS
ROBIN C. KANESenior Vice President
CA BRE #00583537
GORDON J. LARKINSenior Investment Advisor
CA BRE #00305847
BRENDAN KANESenior Investment Advisor
CA BRE License #00627647
ROBIN C. KANESenior Vice President
CA BRE #00583537
GORDON J. LARKINSenior Investment Advisor
CA BRE #00305847
BRENDAN KANESenior Investment Advisor
CA BRE License #00627647
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