5270 Old Redwood Highway - LoopNet...NAI Northern California s home page provides a search engine for our listed properties with local, national and international exposure and showcases

Marco BarrettoInvestment Advisor

O: 415.231.5651M: 415.272.0059

[email protected] #02078316

5270 Old Redwood Highway5270 Old Redwood HighwaySanta Rosa, CA 95403

OFFERINGMEMORANDUM

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5270 Old Redwood Highway5270 Old Redwood HighwaySanta Rosa, California 95403

The information contained in the following Investment Summary is proprietary and strictly confidential. It is

intended to be reviewed only by the party receiving it from NAI Northern California Investment Real Estate

Brokerage and should not be made available to any other person or entity without the written consent of Broker.

This Investment Summary has been prepared to provide summary, unverified information to prospective

purchasers, and to establish only a preliminary level of interest in the subject property. The information contained

herein is not a substitute for a thorough due diligence investigation. Broker has not made any investigation, and

makes no warranty or representation, with respect to the income or expenses for the subject property, the future

projected financial performance of the property, the size and square footage of the property and improvements,

the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal

regulations, the physical condition of improvements thereon, or the financial condition or business prospects of

any tenant, or any tenant’s plans or intentions to continue occupancy of the subject property.

The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable;

however, Broker has not verified, and will not verify, any of the information contained herein, nor has Broker

conducted any investigation regarding these matters and makes no warranty or representation whatsoever

regarding the accuracy or completeness of the information provided. All potential purchasers must take

appropriate measures to verify all of the information set forth herein.

Marco BarrettoO: 415 231 [email protected] | CA CalDRE #02078316

For More Information:

Confidentiality & Disclosure

5270 Old Redwood Highway5270 Old Redwood Highway, Santa Rosa, CA 95403

Section 1

PROPERTYINFORMATION

1

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STATS POPULATION AVG. HHINCOME

1 MILE 1,825 $83,538

5 MILES 102,184 $79,049

10 MILES 298,934 $78,035

DEMOGRAPHICS

* Figures shown represent estimates

SALE PRICE: $795,000

PRICE/UNIT: $397,500

PRICE/SF: $316

NUMBER OF UNITS: 2

CAP RATE: 4.75%

GRM: 16.28

MARKET CAP RATE: 6.70%

MARKET GRM: 16.28

NOI: $37,731

LOT SIZE: 16,000 SF

BUILDING SIZE: 2,513 SF

YEAR BUILT: 1946

ZONING: R2

MARKET: Santa Rosa

CROSS STREETS: Airport Blvd.

Executive Summary


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Additional Photos


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Additional Photos


Section 2

LOCATIONINFORMATION

2

Regional Map


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Location Maps


Aerial Map


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Section 3

FINANCIALANALYSIS

3

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Investment Overview CURRENT MARKET

Price $795,000 $795,000

Number of Units 2 2

Price per Unit $397,500 $397,500

Approximate Square Footage 2,513 2,513

Price per Square Footage $316 $316

GRM 16.28 16.28

CAP Rate 4.75% 6.70%

Operating Data CURRENT MARKET

Gross Scheduled Income $52,200 $66,000

Vacancy Cost (0.0%) - $0 - $0

Gross Operating Income $52,200 $66,000

Operating Expenses - $11,576 - $12,750

Net Operating Income $37,731 $53,250

Debt Service - $24,981 - -

Pre-Tax Cash Flow $12,750 $53,250

Cash-on-Cash Return % (yr 1) 3.45% 6.70%

Principal Reduction (yr 1) + - + -

Total Return (yr 1) $12,750 $53,250

Return on Investment % 3.45% 6.70%

Financial Summary


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Financing Data CURRENT & MARKET

Loan Amount $425,000

LTV 53.46%

Interest Rate 4.5%

Debt Service $24,981

Debt Service Monthly $2,081

Amortization 30

Financial Quote


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Fixed Expenses Expense Expense / Unit % Of Total % Gross Notes

Taxes $5,663 $2,831 48.92% 10.85% Actual

Insurance $1,320 $660 11.4% 2.53% Actual

Utilities $100 $50 0.86% 0.19% Estimated

TOTAL FIXED EXPENSES $7,083 $3,541 61.19% 13.57%

Operational Expenses:

Maintenance $2,825 $1,412 24.4% 5.41% Actual

Water $1,068 $534 9.23% 2.05% Actual

Garbage $600 $300 5.18% 1.15% Estimated

TOTAL OPERATIONAL EXPENSES $4,493 $2,246 38.81% 8.61%

TOTAL EXPENSES: $11,576 $5,788 100% 22.18%

Expenses Sheet


UnitNumber

UnitBed

UnitBath

CurrentRent

MarketRent

1 3 2 $2,200 $3,000

2 3 2 $2,150 $2,500

Totals/Averages $4,350 $5,500

Rent Roll


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Section 4

SALESCOMPARABLES

4

Subject Property

5270 Old Redwood Highway | Santa Rosa, CA 95403

$795,000Sale Price: 1946Year Built:

2,513 SFBuilding SF: $316.35Price PSF:

2No. Units: $397,500Price / Unit:

16.28GRM: 4.75%CAP:

$37,731NOI:

1

80 Woelfe DriveSanta Rosa, CA 95403




4.60%CAP: 11/06/2018Closed:

50%Occupancy: 13.13GRM:

$28,980NOI:

1

2

73-75 Ramsgate CourtSanta Rosa, CA 95403




5.60%CAP: 07/31/2018Closed:

100%Occupancy: 10.85GRM:

$38,640NOI:

2

3

31 Ursuline RoadSanta Rosa, CA 95403




5.00%CAP: 08/27/2018Closed:

15.93GRM: $44,500NOI:

3

Sales Comparables


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Subject Property Price Bldg. SF Price/SF Price/Unit CAP GRM # Of Units

5270 Old Redwood Highway5270 Old Redwood HighwaySanta Rosa, CA 95403

$795,000 2,513 SF $316.35 $397,500 4.75% 16.28 2

Sale Comps Price Bldg. SF Price/SF Price/UNIT CAP GRM # Of Units Close

180 Woelfe DriveSanta Rosa, CA95403

$630,000 1,920 SF $328.13 $315,000 4.60% 13.13 2 11/06/2018

273-75 Ramsgate CourtSanta Rosa, CA95403

$690,000 2,213 SF $311.79 $345,000 5.60% 10.85 2 07/31/2018

331 Ursuline RoadSanta Rosa, CA95403

$860,000 1,736 SF $495.39 $430,000 5.00% 15.93 2 08/27/2018

Totals/Averages Price Bldg. SF Price/SF Price/Unit CAP GRM # Of Units

$726,667 1,956 SF $378.44 $363,333 5.07% 13.30 2

Sales Comparables Summary


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5270 Old Redwood Highway | Santa Rosa, CA 95403Subject Property

1

Santa Rosa, CA95403

80 Woelfe Drive

2

Santa Rosa, CA95403

73-75 Ramsgate Court

3

Santa Rosa, CA95403

31 Ursuline Road

Sales Comparables Map


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Section 5

DEMOGRAPHICS

5

* Demographic data derived from 2010 US Census

Population 1 Mile 5 Miles 10 MilesTOTAL POPULATION 1,825 102,184 298,934

MEDIAN AGE 41.8 37.2 37.3

MEDIAN AGE (MALE) 39.7 35.7 35.7

MEDIAN AGE (FEMALE) 43.5 39.0 38.9

Households & Income 1 Mile 5 Miles 10 MilesTOTAL HOUSEHOLDS 721 38,775 112,430

# OF PERSONS PER HH 2.5 2.6 2.7

AVERAGE HH INCOME $83,538 $79,049 $78,035

AVERAGE HOUSE VALUE $515,084 $562,392 $549,800

Ethnicity 1 Mile 5 Miles 10 Miles% HISPANIC 14.9% 27.0% 28.0%

Race 1 Mile 5 Miles 10 Miles% WHITE 91.0% 82.1% 81.5%

% BLACK 0.5% 2.3% 1.9%

% ASIAN 3.0% 4.8% 4.3%

% HAWAIIAN 0.0% 0.5% 0.4%

% INDIAN 0.3% 1.7% 1.6%

% OTHER 5.2% 9.2% 10.7%

Demographics Map


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Section 6

ADDITIONALINFORMATION

6

SalesCompsProperty

Marketing

MarketingServices

1

A Grassroots MethodologyOur deep roots in Northern California are enhanced by our connection to NAI Global’s 375 offices in 65 countries. We have the insight to develop the strategy, the tools to execute the action plan and the relationships to deliver results.

Direct Canvassing and Cold CallingNAI Northern California has access to a proprietary database containing 210 million consumers and 14 million businesses. We utilize this information to develop multi-channel marketing campaigns and target prospects. Our web of relationships include:

» 6,700 NAI colleagues worldwide » Economic Development Organizations » Chambers of Commerce » Business Community » Local Brokerage Houses » Professional Affiliations

Broker CooperationWe contact all brokers who possess the expertise and qualifications to contribute to a property’s marketing. These contacts include brokers with previous involvement in the sale of similar types of properties. As part of our initial marketing campaign, a mailer serves to notify qualified brokers of the offering. In addition, these brokers receive the property’s Executive Summary via e-mail. When contacted by outside agents requesting information, NAI California returns such requests generally within 2 hours, but always within 24 hours. This encourages outside brokers to pursue the opportunity and fosters more interested, resulting in a higher sales price. When appropriate, we also schedule both broker and investor showings of the property.

Everybody does electric

marketing through e-mail.

Everybody posts their listings on

CoStar and LoopNet. So, what

makes NAI Northern California

different? Attention to detail,

dedication to your project as

though it is our only listing, and

a commitment to present your

asset in the right way to the right

people at the right time.

We are creative, nimble and

diligent.

SalesCompsOnline

Marketing

MarketingServices

2

Email MarketingOver the years of representing landlords, NAI NorCal has amassed an extensive database of e-mail addresses of prospective tenants, owners, active investors and qualified buyers. Additionally, we understand that it’s impossible to have a relationship with every person in the marketplace, which is why we take time to compile and update one of the industry’s largest commercial real estate broker databases. This list includes active local and national buyers, sellers and agents at firms both large and small. Our broker database currently exceeds 7,500 agents.

Online Marketing Expsoure

NAINORCAL.COMNAI Northern California’s home page provides a search engine for our listed properties with local, national and international exposure and showcases detailed information regarding the property. An added benefit is NAINorCal.com’s top-level search engine optimization and directly syndication to the web’s leading listing portals for commercial real estate:

NAIGLOBAL.COMNAIGlobal.com provides immediate access to a long established global network of NAI members and clients. The web site is accessed by 6,700 members in 375 offices worldwide, the largest network of commercial real estate professionals in the world.

Technology provides a way for us

to quickly access targeted local,

national and international clients.

NAI Northern California employs

a number of methods to ensure

broad coverage and timely

delivery of property information

across a number of channels.

MarketingServices

MarketingServices

Loopnet - Loopnet.comLoopNet is the Internet’s largest and most heavily used commercial real estate service on the web, displaying over 150,000 local and national brokers’ listings. LoopNet’s property listing service enables the widest possible exposure and is used as a search engine by many major companies. LoopNet users can search listings by geographic region, square footage, price and other criteria.

Costar Property - Costar.com CoStar Property Professional™ is much more than a listing service. In addition to agent contributions, CoStar Property Professional™ is backed by the industry’s largest professional research organization -- a highly trained team of more than 700 researchers, analysts and photographers.

Xceligent - Xceligent.com Xceligent is a leading provider of verified commercial real estate information across the United States. Their professional research team pro-actively collects a comprehensive inventory of commercial properties, buildings available for lease and sale, tenant information, sales comparables, historical trends on lease rates and building occupancy, market analytics, and demographics.

California Regional Multiple Listing Service Recognized as the nation’s largest and most recognized MLS, the CRMLS works to connect real estate professionals across the state of California. The service includes state-of-the-art MLS technology, including data distribution to a variety of listing portals and sites including the following:

SalesCompsCommercial

Listing Services

MarketingServices

3

Targeted Digital Advertising NAI Northern California utilizes behavioral targeting and programmatic advertising options (El Toro, Google Adwords, Facebook, Linkedin, Instagram) to showcase your listing in specific locations to ultra-targeted audiences. This approach allows us the option to show your listing ONLY to people who have already visited or performed a specific action on our website, allowing us to retarget and in return maximize exposure of your asset.

Print AdvertisingNAI Northern California actively advertises its exclusive listings in national, regional and local publications to expand the exposure to potential investors. We regularly feature our listings in the real estate sections of The San Francisco Chronicle, Contra Costa Times, The Investment Marketing Forum Newsletter, Bay Area Asian Real Estate Guide and other major real estate magazines and periodicals.

MarketingServicesSalesCompsAdvertising

Capabilities

MarketingServices

4

MarketingServices

Marketing PackagesOur full-color, full-bleed Offering Memorandum contains all the comprehensive offering details and information that investors require to submit a qualified bid. This includes pages showing full demographics reports and maps, road and satellite maps, comparable properties, financial details and projections, market and area details, as well as pages focusing on property-specific details and descriptions. The Offering Memorandum is distributed as a hard-copy and is also made available online to qualified investors.

SignageNAI Northern California will analyze your site for a number of factors such as visibility and permitting to determine the appropriate sign size and placement for the property. Our signs direct interested parties to contact NAI Northern California and, when feasible, will showcase the site plan or conceptual rendering. Direct Mail MarketingDirect mail postcards or flyers are sent to high probability buyers, including present owners and other potential buyers NAI Northern California has worked with in the past.

Property WebsiteNAI Northern California creates an individual webpage for each listing which includes extensive property information including the offering summary, a high-resolution photo gallery, property attributes, interactive maps, area information, demographic information, a digital offering memorandum and brochure and a downloadable confidentiality agreement.

Email BlastsE-mail has made it much easier to contact thousands of brokers/buyers/lessors on a monthly basis, with PDF files attached containing all the pertinent property information. This ensures that we have a “marketing touch” with the community and that we maintain a frequency that keeps each property’s availability fresh in the minds of all. Our comprehensive database of brokers,prospective tenants, and buyers - allows us to efficiently target and qualify the best buyer/ lessor for your property - in the shortest amount of time.

SalesCompsSample

Marketing

MarketingServices

5

123 Main StreetSan Francisco, CA 94016

Offering Memorandum

First LastNameCA BRE #[email protected]



Section 7

ABOUT NAINORTHERNCALIFORNIA

7

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NAI Northern CaliforniaNAI Northern California is a full service commercial real estate firm serving the Northern California Bay Area. Our team deliverstechnology-enabled commercial real estate services that create value for our clients, industry, and communities.

NAI Northern California is a partner of NAI Global, the largest commercial real estate brokerage network with more than 400offices worldwide and over 7,000 professionals completing in excess of $20 billion in commercial real estate transactionsglobally.

We brings industry leading resources to our real estate sales approach.. Speed, agility, and keen insight are hallmarks of ourservices. The result is connecting properties with our exclusive list of investors.

Our disposition services rely upon the skills and insights of our experienced team of brokerage, marketing, and data resourcemanagement professionals. Our process begins with an internal launch meeting that unifies client’s objectives with ourstrategies.

This launch begins a process that involves the following phases:

• Comprehensive Property Profile - market analysis, competitive review, and capital market summary

• Marketing Strategy - online marketing, email blasts, direct mail campaigns, social media promotion, and marketingmaterials

• Sales Planning & Execution - database profile analysis, identification of network connections, and direct contact with anexclusive list of buyers

• Client Communication - communication of progress through activity reports and updates

• Maximum Price - combined leverage of tactics and capitalization on market dynamics to take advantage of a competitiveoffers and achieve maximum sale price

NAI Northern California has strong relationships with other real estate investors and other industry institutions. We maintain asizeable database of property and investor profiles that encompasses portfolio details and acquisition criteria of thesenationwide firms.

Our database also allows us to promptly connect investors and institutional partners with properties that correspond to theiracquisition requirements. Our clients have access to more opportunities and can make faster and better decisions armed withtargeted information.

About

About NAI Northern California


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Marco BarrettoInvestment AdvisorCalDRE #02078316415.231.5651 tel415.272.0059 cell415.481.0984 [email protected]

Professional Background

NAI Northern California is pleased to have Marco Barretto to the team as an Investment Advisor based in our San Franciscooffice.

Prior to joining, Marco attended the University of San Francisco where he received a degree in Economics. He has been playingtennis for all of his life, including four years of NCAA D1 competition at his university. Originally a California native from Tiburon,Marco's hobbies include being outdoors, listening to music, and keeping up with his favorite sports teams including the Giants,the Warriors, and the 49ers.

Education

University of San Francisco - BA Economics

Agent Profile & Contact 1



Marco BarrettoInvestment Advisor

O: 415.231.5651M: 415.272.0059

[email protected] #02078316

Documents

5270 Old Redwood Highway - LoopNet...NAI Northern California s home page provides a search engine for our listed properties with local, national and international exposure and showcases