Rockingham Apartmentsimages2.loopnet.com/d2/8wPCp-T686wPU4s6Up6SzpexNxIG8e0ofCc_xT9rQFU/... · Jacob Stanfill Tim Swanston ... APN 07702400060000 OWNERSHIP TYPE Fee Simple ... 1 bd

Rockingham Apartments

3307 Mather Field DriveSacramento, CA 95670

OFFERING MEMORANDUM | 75 UNIT APARTMENT BUILDING

Rockingham ApartmentsCONTENTS

Jacob Stanfill Tim SwanstonSenior Associate Senior Vice President916-716-8131 916-541-3630Lic: 01914043 Lic: [email protected] [email protected]

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility oferrors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent thecurrent or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

01 Executive Summary Executive Summary 5 Unit Mix Summary 6 Location Summary 7

02 Property Description Property Features 9 Aerial Map 10 Common Amenities 11 Unit Amenities 12 Property Images 13

03 Sale Comps Sale Comparables Summary 16 Sale Comparables Charts 19 Sale Comparables Map 20

04 Financial Analysis Income & Expense Analysis 22 Multiyear Cash Flow Assumptions 23 Cash Flow Analysis 24 Disposition Sensitivity Analysis 26

05 Demographics Demographics 28 Demographic Charts 29

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from North Coast Commercial Inc and it should not be made available to any other personor entity without the written consent of North Coast Commercial Inc. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such informationin the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offeringmemorandum. If you have no interest in the subject property, please promptly return this offering memorandum to North CoastCommercial Inc. This offering memorandum has been prepared to provide summary, unverified financial and physical informationto prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information containedherein is not a substitute for a thorough due diligence investigation. North Coast Commercial Inc has not made any investigation,and makes no warranty or representation with respect to the income or expenses for the subject property, the future projectedfinancial performance of the property, the size and square footage of the property and improvements, the presence of absence ofcontaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition ofthe improvements thereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property. The information contained in this offering memorandum has been obtained fromsources we believe reliable; however, North Coast Commercial Inc has not verified, and will not verify, any of the informationcontained herein, nor has North Coast Commercial Inc conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyersmust take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for theircosts and expenses of investigating the subject property.

Rockingham Apartments Confidentiality and Disclaimer | 03

CONFIDENTIALITY AND DISCLAIMER:

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT THE NORTH COAST COMMERCIAL INC ADVISOR FOR MORE DETAILS.Copyright © 2018 CREOP, LLC. All Rights Reserved.

Rockingham Apartm

ents | Executive Summ

ary

Executive Summary

ROCK

ING

HAM

APA

RTM

ENTS

01

......

......

......

......

......

......

......

......

Offering Summary

Unit Mix Summary

Location Summary

Rockingham Apartments Executive Summary | 05

OFFERING SUMMARYADDRESS 3307 Mather Field Drive Sacramento

CA 95670

COUNTY Sacramento

MARKET Sacramento

SUBMARKET Rancho Cordova

BUILDING SF 47,320

LAND SF 137,214

NUMBER OF UNITS 75

YEAR BUILT 1960s

APN 07702400060000

OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARYOFFERING PRICE $8,250,000

PRICE PSF $174.34

PRICE PER UNIT $110,000

OCCUPANCY 95.00 %

NOI (CURRENT) $469,187

NOI (Pro Forma) $576,810

CAP RATE (CURRENT) 5.68 %

CAP RATE (Pro Forma) 6.99 %

PROPOSED FINANCINGLOAN TYPE Fully Amortized

DOWN PAYMENT $2,475,000

LOAN AMOUNT $5,775,000

INTEREST RATE 4.50 %

ANNUAL DEBT SERVICE $351,135

LOAN TO VALUE 70 %

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2017 Population 19,300 82,290 199,813

2017 Median HH Income $44,482 $57,808 $61,502

2017 Average HH Income $57,620 $79,986 $87,315

Rockingham Apartments is a well maintained 75 unit apartmentcommunity in the City of Rancho Cordova. The property wasconstructed in 1969, and is situated on 3.15 acres. The building islow density for the area and is zoned for an additional 19 units.The property consists of (2) Studio units, (56) 1 Bedroom 1Bathroom units, and (17) 2 Bedroom 1 Bathroom units. Theprofessionally landscaped grounds provide a park like setting.Common area amenities include a swimming pool & 5 laundryfacilities. There are also 75 parking spaces. 51 of the 75 unitshave updated interiors with vinyl plank flooring throughout andFormica counter tops.

Rockingham is conveniently located just off of Highway 50 in closeproximity to public transportation, VA hospital, restaurants.

Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly

IncomeMarket Rent Market Rent

PSFMarket Income

1 bd / 1 ba 56 600 $850 $1.42 $47,600 $950 $1.58 $53,2001 bd / 1 ba 3 640 $1,103 $1.72 $3,309 $1,150 $1.80 $3,4502 bd / 1 ba 14 800 $1,139 $1.42 $15,946 $1,350 $1.69 $18,900

Studio / 1 ba 2 500 $788 $1.58 $1,576 $850 $1.70 $1,700Totals/Averages 75 636 $912 $1.43 $68,431 $1,030 $1.61 $77,250

Rockingham Apartments Unit Mix Summary | 06

Rockingham Apartments Location Summary | 07

The City of Rancho Cordova offers a robust businesseconomy, due to the variety of business, from smallconsultant firms to Fortune 500 companies. The Cityof Rancho Cordova is located between Folsom, whichis to the East, and Downtown Sacramento, to thewest, making it an attractive area in the region to livethe sub-market has seen substantial growth in the lastdecade with many employers relocating to the area.Some of the regions largest private employers arebased out of Rancho Cordova. Rancho Cordova is theSacramento area's largest employment sub-center.Excellent access from Highway 50, Zinfandel,International and Data Drives. The property benefitsfrom strong daytime populations within a 1-mileradius of site.

Regional Map

Locator Map

Rockingham Apartm

ents | Property Description

Property Description

ROCK

ING

HAM

APA

RTM

ENTS

02

......

......

......

......

......

......

......

......

Property Features

Aerial Map

Parcel Map

Additional Maps

Amenities

Property Images

Rockingham Apartments Property Features | 09

Site DescriptionNUMBER OF UNITS 75

BUILDING SF 47,320

LAND SF 137,214

LAND ACRES 3.15

YEAR BUILT 1960s

# OF PARCELS 1

ZONING TYPE RD-30

NUMBER OF STORIES 2

NUMBER OF BUILDINGS 2

NUMBER OF PARKING SPACES 75

PARKING RATIO 0.69/unit

POOL / JACUZZI Pool

WASHER/DRYER On Site

MECHANICALHVAC Central

UTILITIESWATER Landlord

TRASH Landlord

GAS Tenant

ELECTRIC Tenant

RUBS Yes

CONSTRUCTIONFOUNDATION Raised

EXTERIOR Stucco and Wood Siding

PARKING SURFACE Paved Asphalt

ROOF Comp Shingle

Rockingham Apartments Aerial Map | 10

Common AmenitiesOn Site Pool

Rockingham Apartm

ents | Comm

on Area Amenities

Unit AmenitiesLaundry Facility

Rockingham Apartm

ents | Unit Am

enities

Rockingham Apartments Property Images | 13

Rockingham Apartments Front Entrance on Mather Field Rd

Cottage Style Units Cottage Style 2 bedroom 1 Bathroom Units

Rockingham Apartments Property Images | 14

Rockingham Apartm

ents | Sale Comps

Sale Comps

ROCK

ING

HAM

APA

RTM

ENTS

03

......

......

......

......

......

......

......

......

Sale Comparables

Sale Comparables Charts

Sale Comparables Map

Rockingham Apartments Sale Comparables Summary | 16

1

Seville Apartments10434 Coloma Rd, RanchoCordova, CA 95670

TOTAL UNITS 56

YEAR BUILT 1983

SALE PRICE $5,750,000

PRICE/UNIT $102,679

PRICE/SF $135.97

CAP RATE 4.89 %

CLOSING DATE 6/26/2017

Cap Rate Range 4.89 % - 6.25 %

LOW HIGH

Price/Unit Range $102,500 - $115,429

LOW HIGH

DOM Range

LOW HIGH

2

Sycamore Square2051-2081 W LA Loma Dr,Rancho Cordova, CA 95670

TOTAL UNITS 140

YEAR BUILT 1970


PRICE/UNIT $115,429

PRICE/SF $150.11

CAP RATE 6.25 %

OCCUPANCY 96.00 %



LOW HIGH

Price/Unit Range $102,500 - $115,429

LOW HIGH

DOM Range

LOW HIGH


3

Birchwood Apartment Homes2091-2101 W La Loma Dr,Rancho Cordova, CA 95670

TOTAL UNITS 40

YEAR BUILT 1978


PRICE/UNIT $102,500

PRICE/SF $151.05


Cap Rate Range

LOW HIGH

Price/Unit Range $102,500 - $115,429

LOW HIGH

DOM Range

LOW HIGH

4

The Meadows Apartments10108 Malaga Way, RanchoCordova, CA 95670

TOTAL UNITS 88

YEAR BUILT 1969


PRICE/UNIT $106,000

PRICE/SF $121.83

CAP RATE 5.70 %

OCCUPANCY 95.00 %



LOW HIGH

Price/Unit Range $102,500 - $115,429

LOW HIGH

DOM Range

LOW HIGH


S

Rockingham Apartments3307 Mather Field Drive,Sacramento, CA

TOTAL UNITS 75

ASKING PRICE $8,250,000

PRICE/UNIT $110,000

PRICE/SF $174.34

CAP RATE 5.68 %

OCCUPANCY 95.00 %


LOW HIGH

Price/Unit Range $102,500 - $115,429

LOW HIGH

Rockingham Apartments Sale Comparables Charts | 19

Rockingham Apartments Sale Comparables Map | 20

# Property Name Address City

S Rockingham Apartments 3307 Mather Field Drive Sacramento1 Seville Apartments 10434 Coloma Rd Rancho Cordova2 Sycamore Square 2051-2081 W LA Loma Dr Rancho Cordova3 Birchwood Apartment Homes 2091-2101 W La Loma Dr Rancho Cordova4 The Meadows Apartments 10108 Malaga Way Rancho Cordova

Rockingham Apartm

ents | Financial Analysis

Financial Analysis

ROCK

ING

HAM

APA

RTM

ENTS

04

......

......

......

......

......

......

......

......

Income & Expense

Multiyear Cash Flow Assumptions

Multiyear Cash Flow Projections

Disposition Sensitivity Analysis

Rockingham Apartments Income & Expense Analysis | 22

INCOME CURRENT PRO FORMA

Gross Potential Rent $821,172 $927,000

RUBS $37,296 $48,840

Other Income $3,660 $3,660

Gross Potential Income $862,128 $979,500

Less: General Vacancy $41,059 $46,350

Effective Gross Income $821,069 $933,150

Less: Expenses $351,882 $356,340

Net Operating Income $469,187 $576,810

Annual Debt Service $351,135 $351,135

Debt Coverage Ratio 1.34 1.64

Cash Flow After Debt Service $118,052 $225,675

Principal Reduction $91,260 $91,260

Total Return 8.5 % $209,312 12.8 % $316,935

EXPENSES CURRENT PRO FORMA

Real Estate Taxes $1,243 $93,225 $1,243 $93,225

Insurance $160 $12,000 $160 $12,000

Management Fee $674 $50,542 $733 $55,000

Repairs & Maintenance $249 $18,675 $249 $18,675

Water / Sewer $821 $61,552 $821 $61,552

Landscaping $142 $10,658 $142 $10,658

Administration $975 $73,119 $975 $73,119

Utilities $366 $27,474 $366 $27,474

Other Expenses $62 $4,637 $62 $4,637

Total Operating Expense $4,692 $351,882 $4,751 $356,340

Expense / SF $7.43 $7.53

% of EGI 42.86 % 38.19 %

Per Unit Per Unit

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

Rockingham Apartments Multiyear Cash Flow Assumptions | 23

PROPOSED FINANCINGLoan Type Fully AmortizedDown Payment $2,475,000Loan Amount $5,775,000Interest Rate 4.50 %Annual Debt Service $351,135Loan to Value 70 %

Rockingham Apartments Cash Flow Analysis| 24

CASH FLOWCalendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $821,172 $927,000 $927,000 $927,000 $927,000 $927,000 $927,000 $927,000 $927,000 $927,000RUBS $37,296 $48,840 $48,840 $48,840 $48,840 $48,840 $48,840 $48,840 $48,840 $48,840Other Income $3,660 $3,660 $3,660 $3,660 $3,660 $3,660 $3,660 $3,660 $3,660 $3,660General Vacancy $41,059 $46,350 $46,350 $46,350 $46,350 $46,350 $46,350 $46,350 $46,350 $46,350Effective Gross Income $821,069 $933,150 $933,150 $933,150 $933,150 $933,150 $933,150 $933,150 $933,150 $933,150Operating ExpensesReal Estate Taxes $93,225 $93,225 $93,225 $93,225 $93,225 $93,225 $93,225 $93,225 $93,225 $93,225Insurance $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000Management Fee $50,542 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000Repairs & Maintenance $18,675 $18,675 $18,675 $18,675 $18,675 $18,675 $18,675 $18,675 $18,675 $18,675Water / Sewer $61,552 $61,552 $61,552 $61,552 $61,552 $61,552 $61,552 $61,552 $61,552 $61,552Landscaping $10,658 $10,658 $10,658 $10,658 $10,658 $10,658 $10,658 $10,658 $10,658 $10,658Administration $73,119 $73,119 $73,119 $73,119 $73,119 $73,119 $73,119 $73,119 $73,119 $73,119Utilities $27,474 $27,474 $27,474 $27,474 $27,474 $27,474 $27,474 $27,474 $27,474 $27,474Other Expenses $4,637 $4,637 $4,637 $4,637 $4,637 $4,637 $4,637 $4,637 $4,637 $4,637Total Operating Expense $351,882 $356,340 $356,340 $356,340 $356,340 $356,340 $356,340 $356,340 $356,340 $356,340Net Operating Income $469,187 $576,810 $576,810 $576,810 $576,810 $576,810 $576,810 $576,810 $576,810 $576,810Annual Debt Service $351,135 $351,135 $351,135 $351,135 $351,135 $351,135 $351,135 $351,135 $351,135 $351,135

Effective Gross Income vs Operating Expenses Cash Flow

Rockingham Apartments Cash Flow Analysis| 25

Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 4.77 % 9.12 % 9.12 % 9.12 % 9.12 % 9.12 % 9.12 % 9.12 % 9.12 % 9.12 %CAP Rate 5.69 % 6.99 % 6.99 % 6.99 % 6.99 % 6.99 % 6.99 % 6.99 % 6.99 % 6.99 %Debt Coverage Ratio 1.34 1.64 1.64 1.64 1.64 1.64 1.64 1.64 1.64 1.64Operating Expense Ratio 42.85 % 38.18 % 38.18 % 38.18 % 38.18 % 38.18 % 38.18 % 38.18 % 38.18 % 38.18 %Loan to Value 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 %Breakeven Ratio 85.62 % 75.82 % 75.82 % 75.82 % 75.82 % 75.82 % 75.82 % 75.82 % 75.82 % 75.82 %Price / SF $174 $174 $174 $174 $174 $174 $174 $174 $174 $174Price / Unit $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000Expense / SF $7 $8 $8 $8 $8 $8 $8 $8 $8 $8Income / SF $17 $20 $20 $20 $20 $20 $20 $20 $20 $20

Rockingham Apartments Disposition Sensitivity Analysis | 26

SENSITIVITY ANALYSIS 5 YEARSEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE/UNIT SALES PRICE PSF PROCEEDS AFTER

LOAN PAYOFFIRR

0.25% $230,724,000 $3,076,320 $4,876 $225,388,008 148.72%0.50% $115,362,000 $1,538,160 $2,438 $110,026,008 116.10%0.75% $76,908,000 $1,025,440 $1,625 $71,572,008 98.75%1.00% $57,681,000 $769,080 $1,219 $52,345,008 87.07%1.25% $46,144,800 $615,264 $975 $40,808,808 78.32%1.50% $38,454,000 $512,720 $813 $33,118,008 71.34%1.75% $32,960,571 $439,474 $697 $27,624,579 65.52%2.00% $28,840,500 $384,540 $609 $23,504,508 60.54%2.25% $25,636,000 $341,813 $542 $20,300,008 56.17%

SENSITIVITY ANALYSIS 10 YEARSEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE/UNIT SALES PRICE PSF PROCEEDS AFTER

LOAN PAYOFFIRR

0.25% $230,724,000 $3,076,320 $4,876 $225,793,643 59.16%0.50% $115,362,000 $1,538,160 $2,438 $110,431,643 48.68%0.75% $76,908,000 $1,025,440 $1,625 $71,977,643 42.82%1.00% $57,681,000 $769,080 $1,219 $52,750,643 38.77%1.25% $46,144,800 $615,264 $975 $41,214,443 35.66%1.50% $38,454,000 $512,720 $813 $33,523,643 33.15%1.75% $32,960,571 $439,474 $697 $28,030,214 31.03%2.00% $28,840,500 $384,540 $609 $23,910,143 29.20%2.25% $25,636,000 $341,813 $542 $20,705,643 27.58%

Rockingham Apartm

ents | Demographics

Demographics

ROCK

ING

HAM

APA

RTM

ENTS

05

......

......

......

......

......

......

......

......

Demographic Details

Demographic Charts

Rockingham Apartments Demographics | 28

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 16,274 71,127 178,253

2010 Population 18,543 77,722 189,804

2017 Population 19,300 82,290 199,813

2022 Population 20,031 86,021 208,586

2017 African American 2,573 7,786 15,478

2017 American Indian 188 817 1,889

2017 Asian 2,535 9,194 20,601

2017 Hispanic 4,765 16,785 34,515

2017 White 9,880 50,311 133,197

2017 Other Race 2,154 7,016 13,012

2017 Multiracial 1,693 6,360 14,188

2017-2022: Population: Growth Rate 3.75 % 4.45 % 4.30 %

2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 749 2,710 6,839

$15,000-$24,999 917 2,693 6,795

$25,000-$34,999 1,006 3,224 7,223

$35,000-$49,999 1,210 4,000 10,139

$50,000-$74,999 1,404 5,669 14,433

$75,000-$99,999 790 3,981 10,510

$100,000-$149,999 704 4,398 11,636

$150,000-$199,999 179 1,523 4,979

$200,000 or greater 96 1,642 5,494

Median HH Income $44,482 $57,808 $61,502

Average HH Income $57,620 $79,986 $87,315

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 6,542 27,580 74,195

2010 Total Households 6,907 28,564 74,956



2017 Average Household Size 2.73 2.73 2.53

2000 Owner Occupied Housing 2,120 13,935 41,054

2000 Renter Occupied Housing 4,040 12,351 30,280



2017 Vacant Housing 713 2,069 5,337

2017 Total Housing 7,767 31,909 83,384



2022 Vacant Housing 746 2,179 5,587

2022 Total Housing 8,016 33,173 86,581

2017-2022: Households: Growth Rate 3.05 % 3.80 % 3.70 %

Source: esri

Rockingham Apartments Demographic Charts | 29

1 Mile Radius 3 Mile Radius 5 Mile Radius

2017 Household Income

1 Mile Radius 3 Mile Radius 5 Mile Radius

2017 Population by Race

Rockingham Apartments Demographic Charts | 30

2017 Household Occupancy - 1 Mile Radius

Average Income Median Income

2017 Household Income Average and Median

Rockingham Apartments

Jacob Stanfill Tim SwanstonSenior Associate Senior Vice President916-716-8131 916-541-3630Lic: 01914043 Lic: [email protected] [email protected]

powered by CREOP

Documents

Rockingham Apartmentsimages2.loopnet.com/d2/8wPCp-T686wPU4s6Up6SzpexNxIG8e0ofCc_xT9rQFU/... · Jacob Stanfill Tim Swanston ... APN 07702400060000 OWNERSHIP TYPE Fee Simple ... 1 bd