17 UNITS | SACRAMENTO, CA
REYAL APARTMENTS Value-Add Opportunity
TABLE OF CONTENTS
INVESTMENT SUMMARY / PG. 1
PROPERTY DESCRIPTION / PG. 4
LOCATION OVERVIEW / PG. 8
APARTMENT MARKET / PG. 12
FINANCIAL ANALYSIS / PG. 18
PROPERTY TOURS OFFERING TERMS & DUE DATE
Central Valley Multifamily Advisory Group
MICHAEL MATHIOSSenior [email protected] +1 916 288 4522 LIC #01252862
400 Capitol Mall, Suite 1800Sacramento, CA 95814+1 916 288 4800cushmanwakefield.com
Tuesday, March 12, 201910:00 am to 12:00 noon
Thursday, March 14, 201911:00 am to 1:00pm
Friday, March 22, 201912:00pm to 2:00pm
All property tours must be arranged with Michael Mathios. Please do not approach or contact the tenants or on-site personnel.
Prospective buyers are encouraged to visit the subject property prior to submitting offers. Tour dates are as follows:
Property will be delivered free and clear. The timeline for the buyer’s due diligence and closing will be part of the consideration in the buyer selection process
All offers are due by 5:00pm March 29, 2019 and are to be sent to Michael Mathios via email at [email protected].
CONTACTS
INVESTMENTSUMMARY
Investment Summary 1.
OFFERING
The Cushman & Wakefield Central Valley Multifamily Advisory
Group is pleased to present the exclusive listing of the 17 Unit Reyal
apartment community located in Sacramento, CA. This asset is
situated in the Midtown submarket within the City of Sacramento.
Built in 1960, The Reyal Apartments offer an excellent opportunity
to invest in a true value add property.
Address 2311 U Street, Sacramento, CA 95818
County Sacramento County
Number of Units 17 Units
Year Built 1960
Rentable Area 10,275 SF
Avg. Unit Size 604 SF
Site Size 0.29 Acres
Pro Forma Avg. Market Rent $1,519
Pro Forma Avg. Market Rent/SF $2.51
Occupancy 29%
Investment Summary 2.
INVESTMENT HIGHLIGHTS & INVESTMENT SUMMARY
• Rare opportunity to purchase a truly value added community in Midtown
Sacramento. Currently the property has only four tenants along with
one owner-occupied unit, therefore the renovation can begin immedi-
ately upon taking ownership. Transforming the exterior into a vibrant lush
oasis and upgrading the interiors with modern finishes will allow the new
owner to reposition the property in this strong rental sub-market to com-
pete for the tenants who want a premium quality living environment. The
higher paying tenant is looking for a clean, sleek, modern designed space
to call home.
• The maintenance room provides the opportunity to add storage lock-
ers/interior bike racks for the tenants to utilize. This is a potentially
unique amenity which would only enhance the rent desirability for
future tenants.
• The property is located within the Poverty Ridge neighborhood, which
contains some of the most stately historic homes in Midtown. The sur-
rounding tree lined streets are comprised of mostly single family homes
offering a quiet outdoor atmosphere for tenants to enjoy.
• Midtown/Downtown is the preferred submarket to reside in due to its
convenient access to the region’s major freeways, goods and services,
entertainment venues and employment opportunities. The CBD of
Sacramento contains a daily workforce of more than 120,000 people and
is the primary location for the regions nightlife and social scene.
REYAL APARTMENTS
Asking Price $2,875,000
Estimated Down Payment 100% $2,875,000
Price Per Unit $169,118
Price Per Room $52,273
Price Per Square Foot $279.81
Stabilized Cap Rate *N/A
Stabilized GRM *N/A
Investment Highlights & Summary 3.
*Due to low occupancy CAP and GRM are not applicable at time of purchase
PROPERTYDESCRIPTION
Property Description4.
PROPERTY SUMMARY
Number of Units 17 Units
Year Built 1960
Land Area 0.29 acres
APN 010-0105-018-0000
Stories Two Stories
Net Rentable Area 10,275 SF
Average Unit Size 604 SF
Parking Nine Open Parking Spaces
UTILITIES
SERVICE/UTILITY SOURCE/COMPANY PAID BY
Gas PG&E Resident
Electric SMUD Resident
Hot Water (Gas) PG&E Owner
Water City of Sacramento Owner
Sewer Sacramento County Owner
Trash Removal Atlas Disposal Owner
UNIT MIX SUMMARY
TYPE # UNITS % UNITS SIZE (SF)*
1 BR-1 BA 13 76% 575 SF
2 BR-1 BA 4 24% 700 SF
TOTAL/AVG. 17 Units 100% 10,275 SF / 604 SF AVG.
CONSTRUCTION DETAIL
Roof Pitched Composition Shingle
Exterior Walls Stucco with Brick Accent
Structure Wood frame
Foundation Raised
Windows Single Pane Aluminum Sliders
StairsConcrete treads with steel stringer
and wood framed stairsoverlaid with ceramic tiles
Hot Water Delivery One 100 gallon gas heated hot water heater
HVAC In wall gas heat and through wall air conditioning
SITE
Address 2311 U Street, Sacramento, CA 95818
County Sacramento County
Size/Density 0.29 Acres/ 58.6 Du/Acre
Zoning R-1B
* Unit square footages are estimates and are to be determined by purchaser
Property Description5.
• One laundry facility with two washers and two dryers (leased)
• Nine open parking spaces at the rear of the property access
via alleyway
• Courtyard with mature landscaping
• Perimeter fenced with ornate wrought iron entry gate
• Automatic in ground irrigation system
• Maintenance room
• Carpet flooring
• Fabric curtains in some units
• Linen cupboard in hallway
• Coat closet in hallway
• Standing shower/tub combination with ceramic tile surround
• Ceramic tile flooring
• Ceramic tile countertops
• Exhaust fan
• Linoleum flooring
• Porcelain sink
• Ceramic tile countertop
• Solid wood cabinetry
• Extra storage cabinetry
in dinning nook area
(select units)
COMMUNITY FEATURES
UNIT FEATURES
Living Room/ Bedroom/ Hallway
Bathroom
Kitchen• Electric range
• Electric wall oven (in some units)
• Refrigerator (in some units)
• Hood-vent
• Ceiling fan in some units
• Garbage disposal
Property Description6.
INTERIOR FEATURES
Property Description7.
LOCATION OVERVIEW
Location Overview8.
LOCATION MAP
SACRAMENTO MIDTOWNAREA DEMOGRAPHICS 1 Mile 3 Mile 5 Mile
2018 Total Population 24,451 140,643 385,233
2018 Total Daytime Population 48,713 270,425 534,607
2018 Average Household Income $70,900 $78,786 $71,286
Owner Occupied Housing Units 20.9% 38.2% 38.8%
Renter Occupied Housing Units 70.4% 53.5% 53.5%
2018 Average Home Value $483,965 $468,198 $388,227
Median Age 37.3 38.0 34.7
LOCATION OVERVIEW
U S
50
REYAL APARTMENTSBUSINESS
80LOOP
R StreetRevitalizationCorridor
DOWNTOWN
CALIFORNIA STATE CAPITOL
THERAILYARDSN
APARTMENT MARKET
Apartment Market12.
ONE BEDROOM
PROPERTY YEAR BUILT # OF UNITS UNIT TYPE SQ.FT. ASKING RENT RENT/SQ.FT.
2222 I StreetSacramento, CA
1974 3 1 Bed / 1 Bath 600 $1,825 $3.04
1325 18th StSacramento, CA
1959 25 1 Bed / 1 Bath 500 $1,695 $3.39
2727 I StreetSacramento, CA
1940 3 1 Bed / 1 Bath 650 $1,495 $2.30
1724 T StreetSacramento, CA 1952 8 1 Bed / 1 Bath 500 $1,495 $2.99
2216 P StSacramento, CA 1905 1 1 Bed / 1 Bath 650 $1,495 $2.30
820 26th StSacramento, CA 1 1 Bed / 1 Bath 850 $1,450 $1.71
2713 T StSacramento, CA 1955 9 1 Bed / 1 Bath 550 $1,450 $2.64
2619 T StSacramento, CA
1972 8 1 Bed / 1 Bath 550 $1,410 $2.56
Averages 536 $1,579 $2.94
RENT COMPARABLES
Apartment Market13.
TWO BEDROOM
PROPERTY YEAR BUILT # OF UNITS UNIT TYPE SQ.FT. ASKING RENT RENT/SQ.FT.
616 21st St Sacramento, CA
1940 1 2 Bed / 1 Bath 1,000 $1,950 $1.95
1317 F St Sacramento, CA
1968 2 2 Bed / 1 Bath 900 $1,895 $2.11
1627 H St Sacramento, CA
1964 1 2 Bed / 1 Bath 850 $1,750 $2.06
1700 26th St Sacramento, CA 4 2 Bed / 1 Bath 900 $1,700 $1.89
519 T Street Sacramento, CA 2017 1 2 Bed / 1 Bath 775 $1,595 $2.06
2010 4th St Sacramento, CA 1 2 Bed / 1 Bath 1,050 $1,575 $1.50
1718 F Street Sacramento, CA 2 2 Bed / 1 Bath 725 $1,550 $2.14
2713 T Street Sacramento, CA 1955 1 2 Bed / 1 Bath 750 $1,550 $2.07
2122 S Street Sacramento, CA
1974 4 2 Bed / 1 Bath 700 $1,525 $2.18
Averages 828 $1,659 $2.00
RENT COMPARABLES
Apartment Market14.
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26th
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7th
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UV160
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UV275
H St
CapitolAve
Q St
G St
P St
L St
J St
Broadway
11th St
W St
Broadway
30th
St
3rdSt
2 9thSt
StocktonBlvd
X St
I St
N St
5th
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EastSacramento
Alk
OldSacramento
BoulevardPark
Curtis ParkUpperLandPark
Downtown
MarshallSchool
Land Park
Midtown -Winn Park
Capital Avenue
NorthOak Park
SouthsidePark
New Era Park
Newton Booth
chards
RichmondGrove
South American RiverIndustrial Park
Mansion Flats
AlhambraTriangle
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Reyal Apartments2311 U Street, Sacramento
U St
# PROPERTY1 2222 I Street, Sacramento 2 1325 18th St, Sacramento3 2727 I Street, Sacramento4 1724 T Street, Sacramento5 2216 P St, Sacramento6 820 26th St, Sacramento7 2713 T St, Sacramento8 2619 T St, Sacramento9 616 21st St, Sacramento
10 1317 F St, Sacramento11 1627 H St, Sacramento12 1700 26th St, Sacramento13 519 T Street, Sacramento14 2010 4th St, Sacramento15 1718 F Street, Sacramento16 2122 S Street, Sacramento
RENT COMPARABLES MAPN
SALES COMPARABLES
Apartment Market16.
PROPERTYYEAR BUILT / YEARRENOVATED
# OF UNITS SALES PRICE PRICE /
UNITPRICE / ROOM
PRICE / SQ. FT. GRM CAP EXPENSE /
SQ.FT.DOWN
PAYMENT SALE DATE
2711 F StSacramento, CA
1965 / 2018 8 $1,900,000 $237,500 $67,857 $313.32 13.3 4.8% $8.16 84% 1/30/2019
2412 Q StSacramento, CA
1963 / 2018 8 $2,075,000 $259,375 $74,107 $340.72 14.3 4.6% $7.82 100% 12/14/2018
1801 P StSacramento, CA
6 $1,500,000 $250,000 $83,333 $227.89 33% 12/6/2018
2207 N StSacramento, CA 1990 10 $3,325,000 $332,500 $79,167 $331.31 17.5 3.7% $6.59 70% 11/30/2018
Nantasket Place1711-1715 N StSacramento, CA
1957 16 $3,598,000 $224,875 $69,192 $323.07 12.3 4.6% $11.37 100% 11/7/2018
1714 T StSacramento, CA 1974 / 2015 7 $1,755,000 $250,714 $59,492 $268.60 44% 6/22/2018
Averages $257,327 $72,191 $300.82 14.3 4.4% $8.49 72%
Reyal 1960 17 $4,250,000 $250,000 $77,273 $413.63 13.0 4.8% Est. Value AfterRenovation
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C St
E St
T St
K St
N St
F St
26th
St
33r d
St
D St
H St
G St
R St
Land
Pa
rkDr
O St
24th
St
28th
St
7th
St
V St
S St
UV99
UV160
UV160
UV275
H St
CapitolAve
Q St
G St
P St
L St
J St
Broadway
11th St
I St Brg
W St
Broadway
30th
St
3rdSt
2 9thSt
StocktonBlvd
X St
I St
N St
5th
St
12th
St
1 0t h
St
19th
St
21st
St
Alh
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9th
St
Jibboom
St
Riv
ersi
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FolsomBlvd
Sacramento
Capitol Park
Triangle
EastSacramento
Alkali Flat
OldSacramento
BoulevardPark
Curtis ParkUpperLandPark
Downtown
MarshallSchool
Land Park
Midtown -Winn Park
Capital Avenue
NorthOak Park
SouthsidePark
New Era Park
Newton Booth
Richards
RichmondGrove
South American RiverIndustrial Park
Mansion Flats
AlhambraTriangle
1
2
3
45
6
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Reyal Apartments2311 U Street, Sacramento
# PROPERTY1 2711 F St, Sacramento2 2412 Q St, Sacramento3 1801 P St, Sacramento4 2207 N St, Sacramento5 Nantasket Place, 1711-1715 N St, Sacramento6 1714 T St, Sacramento
U St
SALES COMPARABLES MAP
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FINANCIALANALYSIS
Financial Analysis18.
It is our opinion this will require an ALL CASH offer to purchase because of low occupancy situation.Financial Analysis19.
Type Units % of Units Sq.Ft. Rent Sq.Ft.1Bed/1Bath 13 76% 575 $1,495 $2.602Bed/1Bath 4 24% 700 $1,595 $2.28Total 17 100% 10,275 $25,815Averages 604 $1,519 $2.51
Income Gross Potential Rent Other Income Utility Income ($45 per unit per month) Parking Income (Nine spaces at $50 per month)Total Rental Income Less Vacancy - 3% Less Non Revenue Units (Onsite staff unit at $500 off rent per month)Effective Gross Income*Less Estimated ExpensesNet Operating IncomeLess Debt ServiceCash Flow
Per Unit / Per Year
Total Yearly
*Estimated Expenses Property Taxes $1,897 ($32,256)
Direct Levies 107 (1,813) Insurance 350 (5,950) Utilities 1,560 (26,520) Management Fee 600 (10,200) Payroll 444 (7,550) Administrative / Office 350 (5,950) Advertising / Promotions 0 0 Make Ready/Turnover 228 (3,868) Repairs/Maintenance 285 (4,845) Service Contracts 318 (5,400) Replacement Reserves 200 (3,400)Total Estimated Expenses $6,338 ($107,752)
$10.4935%
Expense Per Foot:Expense Percentage Ratio:
(107,752)$202,856
$202,856
(9,792)
0
$310,608(6,000)
$309,7802,0409,1805,400
Projected Rents After Renovation
Stabilized Projected Rents After Renovation and Pro
Forma Expenses
Annual Property Operating Data
Pro Forma
$326,400
Reyal2311 U Street
Sacramento, CA
Financial Analysis
Unit Mix Monthly Income
Page 3 of 6
Type Units % of Units Sq.Ft. Rent Sq.Ft.1Bed/1Bath 13 76% 575 $1,495 $2.602Bed/1Bath 4 24% 700 $1,595 $2.28Total 17 100% 10,275 $25,815Averages 604 $1,519 $2.51
Income Gross Potential Rent Other Income Utility Income ($45 per unit per month) Parking Income (Nine spaces at $50 per month)Total Rental Income Less Vacancy - 3% Less Non Revenue Units (Onsite staff unit at $500 off rent per month)Effective Gross Income*Less Estimated ExpensesNet Operating IncomeLess Debt ServiceCash Flow
Per Unit / Per Year
Total Yearly
*Estimated Expenses Property Taxes $1,897 ($32,256)
Direct Levies 107 (1,813) Insurance 350 (5,950) Utilities 1,560 (26,520) Management Fee 600 (10,200) Payroll 444 (7,550) Administrative / Office 350 (5,950) Advertising / Promotions 0 0 Make Ready/Turnover 228 (3,868) Repairs/Maintenance 285 (4,845) Service Contracts 318 (5,400) Replacement Reserves 200 (3,400)Total Estimated Expenses $6,338 ($107,752)
$10.4935%
Expense Per Foot:Expense Percentage Ratio:
(107,752)$202,856
$202,856
(9,792)
0
$310,608(6,000)
$309,7802,0409,1805,400
Projected Rents After Renovation
Stabilized Projected Rents After Renovation and Pro
Forma Expenses
Annual Property Operating Data
Pro Forma
$326,400
Reyal2311 U Street
Sacramento, CA
Financial Analysis
Unit Mix Monthly Income
Page 3 of 6
ANNUAL PROPERTY OPERATING DATA
FINANCIAL ANALYSIS
CONFIDENTIALITY STATEMENTThis Offering Memorandum (OM) was prepared by Cushman & Wakefield (Broker) and has been reviewed by the Owner. The OM is confidential, furnished solely for the purpose of considering the acquisition of the Property described herein, and is not to be used for any other purpose or made available to any other person without the express written consent of Broker. An opportunity to inspect the Property will be made available to qualified prospective purchasers.
The information contained herein has been obtained from sources deemed reliable, and we have no reason to doubt its accuracy. However, no warranty or representation, expressed or implied, is made by the Owner or Broker or any related entity as to the accuracy or completeness of the information contained herein, including but not limited to financial information and projections, and any engineering and environmental information. Prospective purchasers should make their own investigations, projections, and conclusions. It is expected that prospective purchasers will conduct their own independent due diligence concerning the Property, including such engineering inspections as they deem necessary to determine the condition of the Property and the existence or absence of any potentially hazardous materials used in the construction or maintenance of the building(s) or located at the land site, including but not limited to lead-based products (for compliance with “Target Housing” regulation for multifamily housing constructed prior to 1978), asbestos, etc.
The Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any party at any time with or without notice. The Owner shall have no legal commitment or obligation to any purchaser unless a written agreement for the purchase of the Property has been delivered, approved, and fully executed by the Owner, and any conditions to the Owner’s obligations thereunder have been satisfied or waived. Broker is not authorized to make any representations or agreements on behalf of the Owner. Broker represents the Owner in this transaction and makes no representations, expressed or implied, as to the foregoing matters. The depiction of any persons, entities, signs, logos, or properties (other than Broker’s client and the Property) is incidental only and not intended to connote any affiliation, connection, association, sponsorship, or approval by or between that which is incidentally depicted and Broker or its client.
This OM is the property of Cushman & Wakefield and may be used only by parties approved in writing by Broker. The information is privately offered and, by accepting this OM, the party in possession hereon agrees (i) to return it to Cushman & Wakefield immediately upon request of Broker or the Owner and (ii) that this OM and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this OM may be copied or otherwise reproduced and/or disclosed to anyone without the written authorization of Broker and Owner. The terms and conditions set forth above apply to this OM in its entirety.
17 UNITS | SACRAMENTO, CA
REYAL APARTMENTS Value-Add Opportunity
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