$150,000 PRICE REDUCTION

Transcription

1 $150,000 PRICE REDUCTION 5.08% cap rate on projected rents FOR SALE 222 E. Carrillo Street, Suite 101, Santa Barbara, California HayesCommercial.com

2 Property Overview Eight-unit apartment located on the Westside close to City College, the Mesa, restaurants, shopping, parks, and only minutes to the beach and downtown Santa Barbara. This garden-style building offers its tenants large units, an expansive common courtyard, a large common second floor-deck with mountain views, onsite parking and an onsite laundry room. All units are approximately 35% below market, allowing a buyer the opportunity to reposition the property and obtain higher rents in one of the strongest rental markets along the Central Coast. Please note the seller is providing interested buyer several reports and disclosures prior to submitting an offer. Price: $2,350,000 Units: 8 Price Per Unit: $293,750 Unit Mix: Building Size: Lot Size: Parking: Laundry Room: Zoning: R-2 7 x 1BD/1BA + 1 x 2BD/1BA Approx. 5,240 SF Approx. 10,018 SF 8 uncovered On site APN: Year Built: Approx Cap Rate: GRM: CSO: 2.5% Reports Available: 5.08% (pro forma) (pro forma) Pest, Roof, Sewer, and Preliminary Title Report 222 E. Carrillo Street, Suite 101, Santa Barbara, California HayesCommercial.com 2

3 Additional Property Info 1BD/1BA 630 SF 2BD/1BA 830 SF Bath Bath Kitchen Kitchen from walkscore.com 222 E. Carrillo Street, Suite 101, Santa Barbara, California HayesCommercial.com 3

4 Income Analysis PROPERTY DETAILS Price: $2,350,000 # of Units: 8 Price Per Unit: $293,750 UNIT MIX & RENT ROLL Unit Type # of Units CAP Rate: 2.67% Current s Unit #1-1BD/1BA $ 1,150 $ 1,150 $ 13,800 $ 1,750 $ 1,750 $ 21,000 GRM: Current s Unit #2-1BD/1BA $ 1,150 $ 1,150 $ 13,800 $ 1,750 $ 1,750 $ 21,000 CAP Rate: 5.08% Proforma Unit #3-1BD/1BA $ 1,150 $ 1,150 $ 13,800 $ 1,750 $ 1,750 $ 21,000 GRM: Proforma Unit #4-2BD/1BA $ 1,535 $ 1,535 $ 18,420 $ 2,400 $ 2,400 $ 28,800 Land Area (Sq. Ft.): 23,958 Unit #5-1BD/1BA $ 1,150 $ 1,150 $ 13,800 $ 1,750 $ 1,750 $ 21,000 Price/Land Area: $98 Unit #6-1BD/1BA $ 1,150 $ 1,150 $ 13,800 $ 1,750 $ 1,750 $ 21,000 Building Area (Sq. Ft.): 5,240 Unit #7-1BD/1BA $ 1,150 $ 1,150 $ 13,800 $ 1,750 $ 1,750 $ 21,000 Price/Building Area: $448 Unit #8-1BD/1BA $ 1,150 $ 1,150 $ 13,800 $ 1,750 $ 1,750 $ 21,000 Unit Size (Note #1) Monthly CURRENT RENTS (Note #2) Total Monthly Total Annual Monthly MARKET RENTS (Note #3) Total Monthly Total Annual FINANCING (Note #5) Down Payment: $1,480,500 TOTALS 8 5,240 $ 9,585 $ 115,020 $ 14,650 $ 175,800 Down Payment (%): 63.00% Total Loan: $869,500 Debt Coverage Ratio: 1.15 INCOME & EXPENSE ANALYSIS Amortization: 30 Years Total Gross Potential al Income $ 9,585 $ 115,020 $ 14,650 $ 175,800 Term: 5 Years Laundry Income Est $ 71 $ 850 $ 71 $ 850 Rate: 4.750% Total Gross Potential Income $ 9,656 $ 115,870 $ 14,721 $ 176,650 Monthly Loan Payment: $4,536 (LESS) Vacancy Rate 2% $ (193) $ (2,317) $ (294) $ (3,533) Annual Loan Payment: $54,429 Annual Interest Payment: $41,012 EFFECTIVE GROSS INCOME (EGI) $ 9,463 $ 113,553 $ 14,426 $ 173,117 DEPRECIATION Notes % of EGI % of EGI Real Estate Taxes 1.05% 21.76% $ 2,059 $ 24, % $ 2,059 $ 24,707 Property Value: $2,350,000 Insurance: 2017 Act. 3.41% $ 323 $ 3, % $ 323 $ 3,870 % of Improvements: 65% Estimated Gas No Gas 0.00% $ - $ % $ - $ - Depreciable Basis: $1,527,500 Electric Est. House Meter 0.48% $ 46 $ % $ 46 $ 550 Depreciation Schedule: 27.5 Years Water/Sewer/Trash 2017 Act. 5.92% $ 560 $ 6, % $ 13 $ 6,717 Annual Depreciation: $55,545 Repairs & Maintenance Est. $400/Unit/Year 2.82% $ 267 $ 3, % $ 267 $ 3,200 NOTES Note 1: Units sizes have been provided by Appraisal Note 2: Current s are rents that are effective 7/1/2018. Note 3: Market s are estimates based on market conditions Note 4: Expenses are both 2017 Actuals and Estimates Note 5: Loan terms are estimates. Buyer to verify. CURRENT RENTS (Note #2) MARKET RENTS (Note #3) Turnover Expenses Est. $250/Unit/Year 1.76% $ 167 $ 2, % $ 167 $ 2,000 Property Manager 5% of EGI 5.00% $ 473 $ 5, % $ 721 $ 8,656 Taxes, Licenses & Prof. Fees 2017 Act. 0.18% $ 17 $ % $ 17 $ 208 Pest Control Est. 0.44% $ 42 $ % $ 42 $ 500 Gardening Est. 1.59% $ 150 $ 1, % $ 150 $ 1,800 Reserves Est. $200/Unit 1.41% $ $ 1, % $ 133 $ 1,600 (LESS) TOTAL ANNUAL EXPENSES (Note #4) 44.76% $ (4,236) $ (50,830) 32.66% $ (3,937) $ (53,808) NET OPERATING INCOME (NOI) $ 5,227 $ 62,723 $ 10,489 $ 119, E. Carrillo Street, Suite 101, Santa Barbara, California HayesCommercial.com 4

5 Aerial Looking East Paseo Nuevo Funk Zone 2 miles City College The Mesa Cottage Hosp. 1.5 miles