1673 whitwood lane - loopnet

Offering Memorandum

1673 WHITWOOD LANECampbell, CA 95008

• Completely Renovated Interiors• Private Garage Parking• Individual Washer & Dryer• New Roof, Exterior Paint, Copper

Piping and Electrical

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap 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 the improvements thereon, or the financial condition or business prospects of any tenant, or any

tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable;

however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters

and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of

the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name

is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or

commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

1673 Whitwood Lane

Campbell, CA

ACT ID ZAA0010836

E X C L U S I V E L Y L I S T E D B Y

Fred Rubio IIIVice President Investments

Associate Member – National Multi Housing Group

Palo Alto Office

Tel: (650) 391-1734

Fax: (650) 391-1710

[email protected]

License: CA 01984041

Mitchell Zurich

Senior Vice President Investments

Senior Director - National Multi Housing Group

Palo Alto Office

Tel: (650) 391-1824

Fax: (650) 391-1710

[email protected]


Table Of Contents

SECTION

INVESTMENT OVERVIEW 01

FINANCIAL ANALYSIS 02

MARKET COMPARABLES 03

MARKET OVERVIEW 04

1673 Whitwood Lane

5

INVESTMENT OVERVIEW

1673 Whitwood Lane

1673 Whitwood Lane

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

6

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Agilent Technologies Inc 5,558

Seagate Technology Hdd Hldgs 3,000

Stanford Cancer Center S Bay 2,523

Apple 2,189

Netflix Inc 2,166

Auto World Car Wash LLC 1,597

Safeway 1,291

HOSPITAL COPORATION OF AMERICA

1,200

Sanmina Corporation 1,200

Footh-De Anza Commun Colleg Di 1,163

Santa Clara Valley Medical Ctr 1,083

Harker School 1,070

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 25,695 199,250 482,459

2010 Census Pop 24,932 190,519 456,367

2018 Estimate HH 9,408 76,531 185,882

2010 Census HH 8,985 71,809 172,364

Median HH Income $125,287 $118,188 $120,928

Per Capita Income $59,760 $63,849 $65,274

Average HH Income $163,021 $165,932 $168,951

VITAL DATA

Price $2,250,000 CURRENT PROFORMA

Down Payment 100% / $2,250,000 CAP Rate 2.33% 4.08%

Loan Type All Cash GRM 23.95 17.09

Price/Unit $562,500Net Operating Income

$52,483 $91,889

Price/SF $692.31Net Cash Flow After Debt Service

2.33% / $52,483 4.08% / $91,889

Number of Units 4 Total Return 2.33% / $52,483 4.08% / $91,889

Rentable Square Feet 3,250

Year Built 1962

Lot Size 0.2 acre(s)

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

2 2BR/2BA 906

2 1BR/1BA 719

4 Total 3,250

Offering Summary

▪ Superior Unit Mix: 2BR/2BA & 1BR/1BA Units

▪ Superb Unit Amenities: Private Attached Garages, In-Unit Laundry, Private Yards

▪ Excellent Proximity to the South Bay's Major Employers and Thoroughfares

▪ Low Density Neighborhood consisting predominantly of single family homes

▪ Major Capital Improvements: New Roofs, Fresh Exterior Paint, Copper Piping &

Wire

INVESTMENT HIGHLIGHTS

1673 Whitwood Lane, located in Campbell, offers an investor the opportunity to purchase a four-unit apartment building in a fundamentally strong South Bay sub-market.

The buildings boast an exceptional unit mix of two two-bedroom/two-bath units (906 SF) and two one-bedroom/one-bath (719 SF) units. Each unit contains a private

enclosed garage along with their own personal in-unit washer and dryer. The building has received a new roof and has all copper supply piping, all copper branch circuit

wiring and renovated interiors.

The City of Campbell, a highly desirable suburban town with a population of roughly 42,000, is located in the heart of the Silicon Valley. It is one of the most desirable sub-

markets in the South Bay due to its central location and suburb like neighborhoods. It borders three other premier South Bay cities including Los Gatos, Saratoga and

Cupertino, home to many of Silicon Valleys most successful entrepreneurs and notable employers. The Properties sit near the crossroads of Campbell Avenue and San

Tomas Aquino Road adjacent to the Kirkwood Plaza shopping center which includes many retail services and restaurants, including Nob Hill Foods, Walgreens and

Starbucks. The location boasts excellent proximity to Westgate Center, a shopping center containing over 600,000 square feet of retail and restaurant tenants. Downtown

Campbell boasts a vibrant and lively setting with many popular bars and restaurants and is less than 3 miles away. The Properties provide easy access to the major

thoroughfares of the South Bay including Saratoga & Campbell Avenues in addition to Highway 17, Highway 85 and Interstate 280.

1779 Bucknall Rd is located in the heart of Silicon Valley and offers immediate access to an extremely dense concentration of employment. Within a ten mile radius of the

Property, there exist roughly 764,000 jobs, all of which can be accessed in under a 30-minute commute. EBays headquarters is located four miles northeast of the Property

and Netflixs headquarters is located four miles south. Netflix is one of the Bay Areas largest employers and is in the top 50 for largest companies in the U.S. by market cap.

Apples new spaceship headquarters in Cupertino is located five miles north and is expected to house approximately 13,000 workers.

INVESTMENT OVERVIEW

7

1673 Whitwood Lane

1

MARKET OVERVIEW

50, 62, 72, 84, 96, 108 KIM LOUISE DRIVE

8

School & Employment Overview

The subject property is in the Moreland School District.

Moreland is highly rated and very desirable for

residents of the South Bay. Gussie M. Baker

Elementary is located only a few blocks from the

subject property and ranks an impressive 9/10 on test

scores. The assigned Moreland School District schools

specific to the Properties include Gussie M. Baker

Elementary School (7), Moreland Middle School (7) and

Westmont High School (8).

EXCELLENT SCHOOL DISTRICT

The subject property is located in the heart of Silicon Valley and offers

immediate access to an extremely dense concentration of employment. EBay’s

headquarters is located four miles northeast of the Property and Netflix’s

headquarters is located four miles south. Netflix is one of the Bay Area’s largest

employers and is in the top 50 for largest companies in the U.S. by market cap.

Apple’s “spaceship” headquarters in Cupertino is located five miles north. Santa

Clara, just over six miles north, provides office space for NVidia, Ericsson, and

Intel, all of which are top 10 employers of the Bay Area. Sunnyvale, eight miles

northwest, is home to numerous employers including, Yahoo, AMD, and

Lockheed Martin. Downtown San Jose, less than nine miles to the northeast,

houses major offices for PwC, Adobe, and Ernst and Young, amongst many

others. And San Jose’s Golden Triangle, located roughly 10 miles northeast,

provides over 32M square feet of office and R&D space with notable employers

including Google, Cisco, Oracle, and Samsung. Lastly, Google’s Mountain View

headquarters is located 11 miles northwest.

STRONG LOCAL EMPLOYMENT

1673 Whitwood Lane

Aerial Map

9

1673 Whitwood Lane

REGIONAL MAP

1673 Whitwood Lane

10

LOCAL MAP

1673 Whitwood Lane

11

12

FINANCIAL ANALYSIS

1673 Whitwood Lane

FINANCIAL ANALYSIS

1673 Whitwood Lane

OPERATING STATEMENT

13

Notes to Operating Statement:1. Utility Bill-Back is estimated at 50% recapture of the utility expenses, trash removal & sewer paid by tenant.2. Real Estate Tax is based off of current tax rate.3. Insurance is estimated at $300 per unit.4. Special Assessments is based off of current tax bill.5. Water is based off of 2018-19 water bills.6. PG&E is an average based off of 2018 invoices.7. Trash Removal is $84.15 per unit on a quarterly basis.8. Repairs & Maintenance is estimated at $650 per unit.9. Landscaping is estimated at $120 per month.

FINANCIAL ANALYSIS

1673 Whitwood Lane

PRICING DETAIL

14

15

MARKET COMPARABLES

1673 Whitwood Lane

SALES COMPARABLES MAP

16

Subject Property

644 Belladonna Court

505 Hope Ter

235 Washington St

62 Kim Louise Drive

105 Fulton St

117 Winslow Ct

SALES COMPARABLES

1

2

3

4

5

6

1673 Whitwood Lane

17

PROPERTY NAME

SALES COMPARABLES

Avg. $650.19

$0.00

$70.00

$140.00

$210.00

$280.00

$350.00

$420.00

$490.00

$560.00

$630.00

$700.00

644Belladonna

Court

505 HopeTer

235Washington

St

62 KimLouiseDrive

105Fulton St

117Winslow Ct

Average Price Per Square Foot

Avg. $587,711

$0

$70,000

$140,000

$210,000

$280,000

$350,000

$420,000

$490,000

$560,000

$630,000

$700,000

644Belladonna

Court

505 HopeTer

235Washington

St

62 KimLouiseDrive

105Fulton St

117Winslow Ct

Average Price Per Unit

SALES COMPARABLES SALES COMPS AVG

1673 Whitwood Lane

PROPERTY NAME

MARKETING TEAMSALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


18

SALES COMPARABLES

Units Unit Type

Close Of Escrow: 10/3/2018 1 3 Bdr 2 Bath

Sales Price: $2,680,000 2 2 Bdr 2 Bath

Price/Unit: $670,000 1 1 Bdr 1 Bath

Price/SF: $642.53

CAP Rate: 4.17%

GRM: 16.88

Total No. of Units: 4

Year Built: 1969

1

NOTES

The 3bdr/2ba Masters unit has a huge kitchen and living room with

fireplace, garage parking, and private patio. All units were completely

renovated with double-pane windows, granite and quartz counters, new

appliances stainless and black, indirect efficiency lighting, and wood and

bamboo flooring. Three of the units were completely furnished.

644 BELLADONNA COURT644 Belladonna Ct, Sunnyvale, CA, 94086

2

Units Unit Type


Sales Price: $2,350,000 2 2 Bdr 1.5 Bath


Price/SF: $583.27

CAP Rate: 2.12%

GRM: 23.98


Year Built: 1977

NOTES

Large 3 bedroom/2 bathrooms unit with a wood-burning fireplace and a

large private patio with a 2-car garage.

505 HOPE TER505 Hope Ter, Sunnyvale, CA, 94087

Units Unit Type


Sales Price: $2,300,063 2 2 Bdr 1.5 Bath


Price/SF: $600.38

CAP Rate: 2.13%

GRM: 26.80


Year Built: 1973

3

NOTES

Each unit has kitchen w eating area appliance's inc including refrigerators,

dishwashers, stoves and ovens all units have fireplaces and air

conditioning. Each unit has enclosed garage with storage.

235 WASHINGTON ST235 Washington St, Santa Clara, CA, 95050

1673 Whitwood Lane

PROPERTY NAME

MARKETING TEAMSALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


19

SALES COMPARABLES

Units Unit Type




Price/SF: $684.73

CAP Rate: 2.38%

GRM: 24.23


Year Built: 1961

4

62 KIM LOUISE DRIVE62 Kim Louise Dr, Campbell, CA, 95008

5

Units Unit Type




Price/SF: $697.93

CAP Rate: 4.16%

GRM: 16.82


Year Built: 1961

105 FULTON ST105 Fulton St, Campbell, CA, 95008

Units Unit Type



Price/Unit: $562,500

Price/SF: $692.31

CAP Rate: 3.47%

GRM: 18.58


Year Built: 1962

6

117 WINSLOW CT 117 Winslow Ct , Campbell, CA, 95008

1673 Whitwood Lane

20

MARKET OVERVIEW

1673 Whitwood Lane

MARKET OVERVIEWOVERVIEW

1

Known to the world as Silicon Valley, the San Jose metro is located at

the southern end of the San Francisco Bay and encompasses Santa

Clara and San Benito counties. A large portion of the area’s 1,315

square miles is unincorporated ranch and farmland. The metro contains

more than 2 million inhabitants in 15 cities. More than half of the

region’s residents reside in the city of San Jose. It is the metro’s largest

city with more than 1 million residents, followed by Sunnyvale and

Santa Clara. Venture capital funds received in the 1990s helped to turn

the area into the world’s most prominent technology hub, a distinction

that remains today.

MARKET OVERVIEW

METRO HIGHLIGHTS

PREMIER HIGH-TECH CENTER

Silicon Valley’s dense concentration of high-tech jobs is

world renowned, attracting a variety of large employers

and startups.

HIGH INCOMES

Well-paying jobs in the tech sector contribute to a

median annual household income level that is almost

double the U.S. median.

HIGHLY EDUCATED WORKFORCE

Nearly half of all residents age 25 and older have

obtained at least a bachelor’s degree, well above the

U.S. average.

50, 62, 72, 84, 96, 108 KIM LOUISE DRIVE

42

Market Overview

1673 Whitwood Lane

ECONOMY▪ The San Jose employment base contains more than 1 million workers, ranking the metro as

one of the 30 largest job markets in the nation.

▪ There are various Fortune 500 companies headquartered in San Jose MSA, including Intel,

Cisco Systems, Apple Inc., eBay and Google Inc.

▪ The area’s many institutions of higher learning, including Stanford, San Jose State and

Santa Clara University, support these companies by graduating thousands of engineering

and computer science students.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Cisco Systems

County of Santa Clara

Adobe Systems Inc

Hewlett-Packard Co.

City of San Jose

Intel Corp

eBay

US Veterans Medical Center

San Jose State University

Apple* Forecast

2

MANUFACTURING

15%GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

2%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

12%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

7%INFORMATION

21%

5%

9% 10% 3%

15%

50, 62, 72, 84, 96, 108 KIM LOUISE DRIVE

Market Overview

43

1673 Whitwood Lane

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

▪ The metro is expected to add approximately 36,000 people through 2022 and

during this time more than 25,000 households will be formed.

▪ High home prices contribute to a homeownership rate of 56 percent, which is

below the national rate of 64 percent.

▪ Nearly 47 percent of residents age 25 and older hold a bachelor’s degree,

including 21 percent who have also obtained a graduate or professional degree.

The San Jose metro has an enviable combination of major universities that produces a

highly educated workforce, cutting-edge firms and exceptional affluence. Residents can

visit a plethora of museums including the San Jose Museum of Art and the Tech

Museum of Innovation. Santa Clara County is home to performing arts companies and

hosts the San Jose Jazz Festival. The San Francisco 49ers play their home games at

Levi’s Stadium and the San Jose Sharks hockey team plays at the SAP Center. Other

sports venues include the San Jose Municipal Stadium and Buck Shaw Stadium. The

metro is a brief drive away from San Francisco and some of the world’s finest wine-

producing regions, notably the Napa, Sonoma and Alexander valleys.

QUALITY OF LIFE

3

2017 Population by Age

0-4 YEARS

6%5-19 YEARS

19%20-24 YEARS

6%25-44 YEARS

30%45-64 YEARS

26%65+ YEARS

12%

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

50, 62, 72, 84, 96, 108 KIM LOUISE DRIVE

37.1

2017MEDIAN AGE:

U.S. Median:

37.8

$105,300

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

2M

2017POPULATION:

Growth2017-2022*:

1.8%

678K

2017HOUSEHOLDS:

3.7%

Growth2017-2022*:

Market Overview

44

1673 Whitwood Lane

PROPERTY NAME

MARKETING TEAMDemographics

Source: © 2017 Experian

Created on March 2018

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 28,025 209,013 509,874

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2017 Estimate 18,284 181,410 490,403

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 10,349 81,321 196,503

▪ 2017 Estimate


Average (Mean) Household Size 2.71 2.56 2.57

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 2.64% 2.10% 2.19%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2022 Projection 10,349 81,321 196,503

2017 Estimate 10,102 79,926 193,424

Owner Occupied 5,941 42,576 107,661

Renter Occupied 4,142 37,073 84,631

Vacant 19 278 1,132

▪ Persons In Units

2017 Estimate Total Occupied Units 10,083 79,649 192,292

1 Person Units 22.93% 26.61% 26.19%

2 Person Units 29.26% 30.82% 30.80%

3 Person Units 18.96% 17.41% 17.58%

4 Person Units 18.01% 15.89% 16.31%

5 Person Units 7.00% 5.85% 5.79%

6+ Person Units 3.84% 3.41% 3.33%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$200,000 or More 17.94% 20.16% 21.33%

$150,000 - $199,000 14.47% 12.60% 13.72%

$100,000 - $149,000 21.20% 20.39% 20.76%

$75,000 - $99,999 10.82% 10.55% 9.56%

$50,000 - $74,999 12.49% 11.69% 11.43%

$35,000 - $49,999 8.66% 8.21% 7.56%

$25,000 - $34,999 4.70% 5.15% 4.85%

$15,000 - $24,999 4.55% 4.90% 4.88%

Under $15,000 5.16% 6.35% 5.91%

Average Household Income $144,483 $151,338 $157,024

Median Household Income $108,147 $106,943 $112,402

Per Capita Income $52,824 $58,434 $60,179

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 27,606 206,747 503,457

Under 20 24.45% 23.70% 24.14%

20 to 34 Years 18.09% 19.95% 19.11%

35 to 39 Years 7.30% 7.09% 7.01%

40 to 49 Years 16.04% 15.47% 15.55%

50 to 64 Years 21.13% 20.10% 20.28%

Age 65+ 13.00% 13.68% 13.87%

Median Age 40.10 39.49 39.80

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 19,379 146,612 354,032

Elementary (0-8) 2.40% 2.43% 2.31%

Some High School (9-11) 3.97% 3.91% 3.90%

High School Graduate (12) 14.16% 13.73% 12.98%

Some College (13-15) 21.59% 17.87% 17.38%

Associate Degree Only 10.59% 7.85% 7.21%

Bachelors Degree Only 27.49% 29.78% 30.48%

Graduate Degree 18.58% 23.47% 24.73%

▪ Population by Gender

2017 Estimate Total Population 27,606 206,747 503,457

Male Population 49.74% 49.52% 49.58%

Female Population 50.26% 50.48% 50.42%

24

1673 Whitwood Lane

Income

In 2017, the median household income for your selected geography is

$108,147, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 47.57%

since 2000. It is estimated that the median household income in your

area will be $133,111 five years from now, which represents a change

of 23.08% from the current year.

The current year per capita income in your area is $52,824, compare

this to the US average, which is $30,982. The current year average

household income in your area is $144,483, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 27,606. The

population has changed by 1.08% since 2000. It is estimated that the

population in your area will be 28,025.00 five years from now, which

represents a change of 1.52% from the current year. The current

population is 49.74% male and 50.26% female. The median age of the

population in your area is 40.10, compare this to the US average

which is 37.83. The population density in your area is 8,779.68 people

per square mile.

Households

There are currently 10,083 households in your selected geography.

The number of households has changed by 0.93% since 2000. It is

estimated that the number of households in your area will be 10,349

five years from now, which represents a change of 2.64% from the

current year. The average household size in your area is 2.71

persons.

Employment

In 2017, there are 5,750 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

73.52% of employees are employed in white-collar occupations in this

geography, and 26.54% are employed in blue-collar occupations. In

2017, unemployment in this area is 3.29%. In 2000, the average time

traveled to work was 27.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

56.50% White, 3.12% Black, 0.35% Native American and 27.03%

Asian/Pacific Islander. Compare these to US averages which are:

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 16.61% of the current year

population in your selected area. Compare this to the US average of

17.88%.

PROPERTY NAME

MARKETING TEAM

Housing

The median housing value in your area was $789,599 in 2017,

compare this to the US average of $193,953. In 2000, there were

5,766 owner occupied housing units in your area and there were 4,224

renter occupied housing units in your area. The median rent at the

time was $1,053.

Source: © 2017 Experian

Demographics

25

1673 Whitwood Lane

www.MarcusMillichap.com

Mitchell Zurich

Senior Vice President Investments

Senior Director - National Multi Housing Group

Palo Alto Office

Tel: (650) 391-1824

Fax: (650) 391-1710

[email protected]


Fred Rubio III

Vice President Investments

Associate Member - National Multi Housing Group

Palo Alto Office

Tel: (650) 391-1734

Fax: (650) 391-1710

[email protected]


P R E S E N T E D B Y

26

1673 whitwood lane - loopnet

Documents