1045-1049 ELM LANE EIGHTEEN-UNIT APARTMENT FOR SALE IN BEACH COMMUNITY OF CARPINTERIA Prime downtown Carpinteria location Updated units Stabilized apartment investment Strong array of local employers MAJESTIC ASSET MANAGEMENT, INC. MANAGEMENT INVESTMENTS DEVELOPMENT WATCH THE PROPERTY VIDEO Contacts: Christos Celmayster 805.898.4388 christos@hayescommercial.com lic. 01342996 Francois DeJohn 805.898.4365 fran@hayescommercial.com lic. 01144570 Liam Murphy, CCIM 805.898.4385 liam@hayescommercial.com lic. 01439777
Rarely does an asset come available on the South Coast that offers a full package: an A+ location, quality units with a good mix, and long-term stability. This pride-of-ownership property in coastal Carpinteria consists of 18 units on three separate parcels in three separate buildings one duplex and two eight-unit buildings. Just a block from Linden Avenue in the center of downtown Carpinteria, this prized asset is near restaurants, shops, tasting rooms, parks, beaches and the other amenities that make Carpinteria one of California s best beach towns. The units at Elm Lane have been updated with granite countertops, new cabinetry, dual pane windows, tile and wood floors, appliances, and finishes. This is one of the best rental properties that Carpinteria has to offer. Price: $5,795,000 Units: 18 Unit Mix: Duplex: 3BD/1.5BA 2BD/1.5BA 8-Unit: 4 X 2BD/1BA 4 X 1BD/1BA 8-Unit: 8 X 1BD/1BA Building area: Approx. 10,300 SF Site area: Approx. 23,958 SF Zoning: PRD-18 and PRD-13 APN: 003-152-023, 024 & 017 OFFERING SUMMARY Parking: Laundry: To show: 18 spaces on site & a two-car garage On-site CLA CSO: 2.5% Current Market Cap rate: 4.41% 4.72% GRM: 13.74 13.34 2
BUILDING OVERVIEW 1049 ELM LN 8 UNITS 4 X 2BD/1BA 4 X 1BD/1BA Approx. 4,600 SF 1047 ELM LN DUPLEX 3BD/1.5BA 2BD/1.5BA Approx. 1,200 SF w/ two-car garage 1045 ELM LN 8 UNITS 8 X 1BD/1BA Approx. 4,000 SF 3
FINANCIAL ANALYSIS PROPERTY DETAILS UNIT MIX & RENT ROLL Price: $5,795,000 CURRENT RENTS (Note #2) # of Units: 18 Price Per Unit: $321,944 GRM: 13.74 Current Rents See Rent Roll Sheet 18 See Rent See Rent $ 32,500 $ 390,000 TBD $ 33,550 $ 402,600 CAP Rate: 4.41% Current Rents Roll Sheet Roll Sheet GRM: 13.34 CAP Rate: 4.72% Land Area (Sq. Ft.): 23,958 Price/Land Area: $242 Market Rents Market Rents Building Area (Sq. Ft.): 10,300 TOTALS 18 10,300 $ 32,500 $ 390,000 $ 33,550 $ 402,600 Price/Building Area: $563 FINANCING (Note #5) INCOME & EXPENSE ANALYSIS Down Payment: $2,433,900 Total Gross Potential Rental Income $ 32,500 $ 390,000 $ 33,550 $ 402,600 Down Payment (%): 42.00% Laundry Income Est. 12/Unit/Month $ 216 $ 2,592 $ 216 $ 2,592 Total Loan: $3,361,100 RUBS (Note #6) See Rent Roll $ 2,042 $ 24,509 $ 2,042 $ 24,509 Debt Coverage Ratio: 1.27 Pet Rent (Note #7) See Rent Roll $ 385 $ 4,620 $ 385 $ 4,620 Amortization: 30 Years Total Gross Potential Income $ 33,101 $ 421,721 $ 34,151 $ 434,321 Term: 7 Years (LESS) Vacancy Rate 2% $ (662) $ (8,434) $ (683) $ (8,686) Rate: 4.375% Monthly Loan Payment: $16,781 EFFECTIVE GROSS INCOME (EGI) $ 32,439 $ 413,287 $ 33,468 $ 425,635 Annual Loan Payment: $201,378 Notes % of EGI % of EGI Annual Interest Payment: $145,945 Real Estate Taxes 1.24% 17.39% $ 5,990 $ 71,880 16.89% $ 5,990 $ 71,880 DEPRECIATION Insurance: 2017 Act 1.39% $ 480 $ 5,757 1.35% $ 480 $ 5,757 Gas Annualized 2017 Exp. 0.20% $ 70 $ 837 0.20% $ 70 $ 837 Property Value: $5,795,000 Electric Annualized 2017 Exp. 0.51% $ 175 $ 2,100 0.49% $ 175 $ 2,100 % of Improvements: 60% Estimated Water/Sewer Annualized 2017 Exp. 4.08% $ 1,406 $ 16,866 3.96% $ 1,406 $ 16,866 Depreciable Basis: $3,477,000 Trash Annualized 2017 Exp. 1.14% $ 392 $ 4,706 1.11% $ 392 $ 4,706 Depreciation Schedule: 27.5 Years Repairs & Maintenance Est. $650/Unit/Year 2.83% $ 975 $ 11,700 2.83% $ 975 $ 11,700 Annual Depreciation: $126,436 Turnover Expenses Est. $250/Unit/Year 1.09% $ 375 $ 4,500 1.09% $ 375 $ 4,500 NOTES Note #1: Unit Sizes are per Seller's Rent Roll Note #2: Current Rents are per Rent Roll provided Note #3: Market Rents are estimates Note #4: Expenses are actuals and estimates Note #5: Loan Terms are estimated Note #6: RUBS means ratio utility billing systems Nearly all the tenants have RUBS in their lease Note #7: Leases allow for landlord to charge an additional amount for Pets Unit Type # of Units Unit Size (Note #1) Lease Term Total Monthly Rent CURRENT RENTS (Note #2) Total Annual Rent Lease Term MARKET RENTS (Note #3) Total Monthly Rent MARKET RENTS (Note #3) Total Annual Rent Property Manager 5% 5.00% $ 1,722 $ 20,664 5.00% $ 1,773 $ 21,282 Onsite Property Manager Est. 1.45% $ 500 $ 6,000 0.00% $ - $ - Payroll Est. 0.58% $ 200 $ 2,400 0.56% $ 200 $ 2,400 Taxes, Licenses & Prof. Fees Est. 0.11% $ 38 $ 450 0.11% $ 38 $ 450 Pest Control Est. 0.22% $ 75 $ 900 0.21% $ 75 $ 900 Gardening Annualized 2017 Exp. 1.31% $ 450 $ 5,400 1.27% $ 450 $ 5,400 Reserves Est. $200/Unit 0.87% $ 300 $ 3,600 0.85% $ 300 $ 3,600 (LESS) TOTAL ANNUAL EXPENSES (Note #4) 38.17% $ (13,147) $ (157,761) 35.91% $ (12,698) $ (152,378) NET OPERATING INCOME (NOI) $ 19,292 $ 255,526 $ 20,770 $ 273,257 4
RENT ROLL CURRENT RENTS MARKET RENTS UNIT # OF UNITS TERM UNIT TYPE SQUARE TOTAL MONTHLY TOTAL ANNUAL TOTAL MONTHLY TOTAL ANNUAL RUBS PET RENT FOOTAGE (EST) RENT RENT RENT RENT 1049-01 1 M/M 1BD/1BA 500 $ 147.90 $ 50.00 $ 1,700 $ $ 1,700 $ 1049-02 1 1BD/1BA 500 $ 177.42 $ 25.00 $ 1,625 $ 19,500 $ 1,700 $ 1049-03 1 3/31/18 2BD/1BA 650 $ 118.38 $ 35.00 $ 1,900 $ 22,800 $ 1,900 $ 22,800 1049-04 1 7/31/18 2BD/1BA 650 $ - $ - $ 1,900 $ 22,800 $ 1,900 $ 22,800 1049-05 1 12/22/17 1BD/1BA 500 $ 147.90 $ 25.00 $ 1,600 $ 19,200 $ 1,700 $ 1049-06 1 1/31/18 1BD/1BA 500 $ 118.38 $ 30.00 $ 1,600 $ 19,200 $ 1,700 $ 1049-07 1 4/30/18 2BD/1BA 650 $ 118.38 $ - $ 1,850 $ 22,200 $ 1,900 $ 22,800 1049-08 1 4/30/18 2BD/1BA 650 $ 118.38 $ 50.00 $ 1,850 $ 22,200 $ 1,900 $ 22,800 1045-09 1 1/31/18 1BD/1BA 500 $ 118.38 $ 25.00 $ 1,600 $ 19,200 $ 1,700 $ 1045-10 1 4/30/18 1BD/1BA 500 $ 118.38 $ 25.00 $ 1,600 $ 19,200 $ 1,700 $ 1045-11 1 4/3/18 1BD/1BA 500 $ 118.38 $ - $ 1,600 $ 19,200 $ 1,700 $ 1045-12 1 1BD/1BA 500 $ 118.38 $ - $ 1,600 $ 19,200 $ 1,700 $ 1045-13 1 2/28/18 1BD/1BA 500 $ 118.38 $ 25.00 $ 1,600 $ 19,200 $ 1,700 $ 1045-14 1 10/30/17 1BD/1BA 500 $ - $ - $ 1,750 $ 21,000 $ 1,750 $ 21,000 1045-15 1 2/12/18 1BD/1BA 500 $ 118.38 $ - $ 1,600 $ 19,200 $ 1,700 $ 1045-16 1 6/15/18 1BD/1BA 500 $ 30.55 $ 35.00 $ 1,625 $ 19,500 $ 1,700 $ 1047 - A 1 2/28/18 2BD/1.5BA 700 $ 147.90 $ 25.00 $ 2,500 $ 30,000 $ 2,500 $ 30,000 1047 - B 1 3BD/1.5BA 1000 $ 206.95 $ 35.00 $ 3,000 $ 36,000 $ 3,000 $ 36,000 18 10,300 $ 2,042 $ 385 $ 32,500 $ 390,000 $ 33,550 $ 402,600 5
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AERIAL MAP Nearby Amenities 1 Coffee Bean & Tea Leaf 2 Rincon Brewery 3 Lucky Llama Coffee House 4 Smart & Final 5 Rite-Aid 6 The Palms 7 Sly s Seafood and Steak 8 Giannfranco s Trattoria 9 Island Brewing Company 10 The Spot 11 Amtrak Station SITE 1 5 2 3 6 4 11 8 7 10 9 Distance to... State Beach Carp Bluffs Santa Barbara Ventura Los Angeles 0.6 miles 1.3 miles 11 miles 16 miles 84 miles 8
AREA SUMMARY THE SANTA BARBARA AREA The South Coast of Santa Barbara County is a continuous metro area encompassing Goleta, Santa Barbara, Montecito, Summerland, and Carpinteria with a combined population of 205,000. The area is referred to as Silicon Beach for its burgeoning technology/engineering sector. Alternately, the area has been nicknamed the American Riviera due to its Mediterranean climate and beauty. Location. Santa Barbara is 90 miles north of Los Angeles and 330 miles south of San Francisco and is served by the Santa Barbara Airport and Amtrak. Tucked between the Santa Ynez Mountains and the Pacific Ocean, Santa Barbara enjoys a mild, Mediterranean climate averaging 300 sunny days a year. Economy. Renowned internationally for its fine restaurants, shopping, hotels and architecture, the tourism industry is the region s main economic driver. In addition, the economy includes a large service sector, education, technology, defense, health care, education, finance, agriculture, manufacturing and local government. Culture. The city s history is evident in its Spanish architecture, emanating from the majestic Mission Santa Barbara. Downtown is brimming with restaurants, theaters, museums and hosts an international film festival. Wine lovers can sample the Urban Wine Trail downtown or take a short drive to the world-class vineyards of Santa Ynez Valley. THE CITY OF CARPINTERIA Carpinteria is a quaint oceanside city conveniently located a few miles down the 101 from the city of Santa Barbara. The city is known for its beautiful beaches, agriculture, and the retail corridor along Linden Avenue. In recent years, many high tech companies have made Carpinteria home, and these major employers continue to grow substantially. Among them are Procore, LinkedIn/Microsoft, Continental, and NuSil. Carpinteria offers an attractive set of amenities that appeals to young tech workers as well as seniors who seek a quiet, beachside retirement. The broad appeal of the city suggests that quality housing will be in high demand for years to come. CITY SUMMARY Incorporated: September 28, 1965 Size: Appx. 9 square miles Population: 13,769 Households: 4,9899 Avg Household Inc: $95,425 9