la casa grande - loopnet · la casa grande is believed to have been built originally as a hotel,...

LA CASA GRANDESAN RAFAEL, CA

Scott GerberCA LIC #01138762(415) [email protected]

711 Grand Ave., Suite 290San Rafael, CA 94901

(415) 451-4900www.meridiancommercial.com

25 Units + 5 RetailOffered at $6,000,000

Kate RaphaelInvestment Associate [email protected] #02027825

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.Northern California’s Source for Apartment Brokerage Services

LA CASE GRANDE 1330-1336 Fourth St, San Rafael, CA

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Meridian Commercial (“Broker”) has been retained on an exclusive basis to market the property described herein (“1330-1336 Fourth St”). Broker has been authorized by the Seller of the Property to prepare and distribute the enclosed Offering Memorandum for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate.

The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller, its affiliates or Broker. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma.

Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.

All inquiries related to the property should be directed to the exclusive listing agent:

Scott GerberManaging Director [email protected] #01138762

711 Grand Ave Suite 290 San Rafael, CA 94901ph: 415.927.8888 fx: 415.451.4908www.scottgerber.com

Multi-Family Investments

Northern California’s Source for Apartment Brokerage Services

OVERVIEW

Located in San Rafael’s bustling downtown, La Casa Grande is a mixed-use 25-unit apartment property with 5 retail spaces. Perennially fully occupied and in constant demand, this jewel has been in the same family for over 40 years. The original structure was built in 1879 but the property was expanded to encompass the current structure, which has 25 apartments and 5 retail stores, around the turn of the century. With over 96 feet of retail frontage on Fourth Street on a lot that is 140 feet deep, this rare opportunity will appeal to investors and developers looking to capitalize on this outstanding location and intrinsic economics.



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PROPERTY OVERVIEW


PROPERTY DESCRIPTION

With wood frame and masonry construction, the property consists of ground floor retail and two floors of apartments above in a classic European style “apartment house” with charm and character reminiscent of a bygone era. A mix of five ground floor retail stores totaling 6,185 square feet (plus 1641 square feet of mezzanine) and 25 apartments (15 of which use shared men’s and ladie’s bathrooms located on second and third floors) are situated on an approximately 13,566 square foot lot with 15 surface parking spaces accessed off Via Sessi.

La Casa Grande is believed to have been built originally as a hotel, and research has uncovered the name Mahon Hotel. Consistent with the era of construction in the late 1800’s the hallways and common areas as well as the apartments have high ceilings measuring twelve feet on the second floor and ten feet on the third floor. Much of the original grandeur of the property is evident as you walk through the lobby and hallways. Of the 22 one-bedroom units, 8 have private baths and 14 use shared bathrooms located on the 2nd and 3rd floors. Two studios have private baths and studio unit 6 uses the shared bathroom on the 2nd floor. Apartment features include gas kitchens and gas heaters in all but six of the apartments. A covered breezeway separates the main building from the rear of the property known as the Annex which houses seven of the apartments. This was actually the original structure believed to have been built in the early 1870’s as a dining hall.

While the property is of an age where galvanized plumbing and ancient electrical wiring would be expected, the property has had some upgrades over the years that include the addition of electrical branch circuitry and copper plumbing in various sections of the property. Residents have the use of Men’s and Ladie’s bathrooms on the second and third floors, a guest bathroom on the second floor and a coin laundromat on the second floor.

The property features 5 hot water heaters located throughout the property to service the apartments, and additional hot water heaters for each of the five retail spaces. Retail tenants pay their own gas and electric. The eighteen apartment tenants in the main building have master metered heat while the seven apartments in the rear Annex are separately metered for gas and electric. At this time, the property pays for water and sewer and trash for all residents. Retail tenants pay for their trash disposal. The buildings have both concrete and brick foundations, and it is clear that some seismic upgrading has been done. However, the seller’s do not have details or scope of that project and make no representations or warranties as to the quality or suitability of that work or its compliance with current building code.



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PROPERTY OVERVIEW


SAN RAFAEL

Located just 12 miles north of The Golden Gate Bridge, La Casa Grande is ideally situated in the economic and cultural center of Marin. With a lively downtown and world famous outdoor recreation, San Rafael offers a great place to live and work.

The county seat of Marin County, the Mission City of San Rafael boastsone of the original twenty one California Missions, which was established in 1817. Take a walk down fourth street and you will see what San Rafael has to offer. Dining, shopping, theater and entertainment are just some of the attractions of this city of just under 60,000. The art deco Smith Rafael film center features art, and foreign films and annually hosts film makers and directors from around the world and is one of the main venues of the Mill Valley Film Festival every October. Dominican University and the charming Dominican neighborhood to the East offer the opportunity to take in the annual Shakespeare productions by Marin Shakespeare Company at Forest Meadows Ampitheater each August and September.

In addition to easy access to transportation, jobs and entertainment, La Casa Grande, is located on iconic downtown Fourth Street between C and D Streets. The explosive job growth and rising rents and home prices of San Francisco will continue to drive tenant demand for Marin County apartments. As a result of being located in close proximity to one of the strongest job markets and economies in the world, Marin’s rental market continues to grow. According to our annual survey of 7,000+ units in Marin, rents have grown over 33% in the past five years and occupancy is at 97.8% as of July 2019.

Major employers in San Rafael include BioMarin (2,500+), Autodesk, Guide Dogs for the Blind, Lucas Film, the County of Marin, Dominican University of California, and Kaiser Permanente.

San Rafael offers the combination of incredibly strong demographics, breathtaking scenic beauty, a robust job market, location 30 minutes from a world class city/destination, and an extremely limited housing market; creating a highly desirable place to own a real estate investment.

HOUSEHOLDS & INCOME 1 MILE 3 MILE 10 MILE

Total Households 7,475 37,379 113,831

Median HH Income $81,600 $97,706 $98,834

Median Home Value $976,021 $1,018,764 $962,874

POPULATION 1 MILE 3 MILE 10 MILE

Total Population 16,022 91,533 288,678

Note: The City of San Rafael adopted Ordinance 1971 on July 17, 2019 allowing tenants to require Mandatory Mediation for rental increases exceeding 5% in any twelve month period and 1972 regarding Just Cause for eviction.



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LOCATION OVERVIEW




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INVESTMENT SUMMARY: Priced at $6,000,000 La Casa Grande offers a rare combination of physical beauty and financial sense. With almost $200,000 of additional gross income at stabilized market rents, a properly capitalized buyer will benefit from the opportunity to increase value through appropriate physical improvements and increasing the income stream to what is believed to be in excess of a 7% cap rate. Due to the extremely long-term ownership of the property and lack of any mortgage expense, current ownership has chosen to keep rents at current levels which all parties acknowledge are approximately 40% below market.

FINANCING: After making a down payment of approximately $3,000,000, the buyer will obtain a new loan of approximately $3,000,000 at today’s 5 year fixed rate of four percent (3.75%) with thirty year term and first five years fixed monthly payments equal to approximately $13,893. Contact listing agent for financing referral if needed.

INVESTMENT HIGHLIGHTS: Investment Highlights SummaryCurrent GRM: 12.94 Current CAP Rate: 4.17%

Market GRM: 9.17 Market CAP Rate: 7.25%

Price/Unit: N/A Starting (Cash on Cash) Return: 2.78%

Price/SF: $412.26 Stabilized (Cash on Cash) Return: 8.95%

INVESTMENT SUMMARY





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SITE SURVEY

SITE SURVEY PARCEL MAP

Parcel Number: 011-205-11

Parcel Size: 13,566 SF/0.31 acres

Zoning: 4SRC

Year Built: 1879

Buildings: 1

Parking: 15

Construction Style: Wood frame, masonry brick & stucco

Roof: Membrane

Foundation: Masonry brick & concrete

Heating: Gas/electric

Hot Water: 5 Central, Individual for retail

Plumbing: Copper/galvanized

Electrical: Circuit breakers

Laundry: Coin-op 3 washers/2 dryers, owned

Kitchen: Gas/electric

Cabinets: Various ages

Windows: Double hung, single pane

Utilities (Owner): Water & sewer (apartments, retail)

Trash (apartments)

Heat (18 apartments)

Amenities: Parking, office, laundry




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EXTERIOR VIEW




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RETAIL INTERIORS




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COMMON AREAS




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SRO INTERIORS




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APARTMENT INTERIORS




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RENT ROLL

Unit # Type Unit SF Rent Start Date

1 0/1 320 $1,100 8/1/17

2 1/0 339 $920 3/1/14

3* 1/0 339 $1,100 5/1/10

4 1/0 339 $1,075 6/1/18

5 1/0 339 $880 2/21/11

6 0/0 200 $1,000

7 1/1 325 $1,400

8 1/0 339 $900 >10yrs

9 1/1 415 $1,410 7/1/16

10 1/0 339 $1,000 12/20/15

11 1/0 339 $950 9/15/13

12 1/0 339 $880 >10yrs

13 1/0 339 $770 >10yrs

14 1/0 339 $1,000 >10yrs

15 1/0 339 $890 >10yrs

*maintenance**2+2 lease option

Unit # Type Unit SF Rent Start Date

16 1/0 339 $1,000 11/23/13

17 1/0 339 $890 >10yrs

18 1/0 339 $990 12/10/11

Annex A 1/1 325 $825 >10yrs

Annex B 1/1 325 $1,400

Annex C 1/1 325 $1,080 >10yrs

Annex D 1/1 325 $1,400

1317 Via 0/1 413 $1,300 7/28/12

1325 Via 1/1 325 $1,250 8/22/10

1327 Via 1/1 325 $1,290 5/9/14

1322 Joannes Nails 843/410 $1,640 6/1/14

1328 Essential Sleep 2244/365 $4,700 7/1/19**

1332 Bella Boutique 1037/390 $1,690 10/1/97

1336 Marin Hair Co 1240/476 $2,000 1/1/89

1338 Oliva Optical 821 $1,650 2/1/01

30 TOTAL 14,554 SF $38,380

S U M M A R Y P R O P O S E D F I N A N C I N GPrice: $6,000,000 Approx. Age: 1879Down Payment: $3,000,000 Approx. Lot Size: 13,566 First Loan Amount: $3,000,000 New, 30 year amortizationNumber of Units: 25/5 Approx. Net RSF: 14,554 Term: 30 Years Fixed for 5 yearsCost Per Unit: N/A Cost Per Net RSF: $412.26 Rate: 3.75%Current GRM: 12.94 Monthly Payment: $13,893Market GRM: 9.17Current CAP: 4.17%Market CAP: 7.25%

S C H E D U L E D I N C O M E A N N U A L I Z E D E X P E N S E SNo of Units BD/ BA Approx SF Mo Rent/Unit Monthly Income Mo Rent/Unit Monthly Income Taxes **New Rate $75,325

14 1/0 339 880-1100 $13,245 $1,400 $19,600 Insurance $18,1701 0/0 200 $1,000 $1,000 $1,000 $1,000 Advertising: $5007 1/1 325 825-1400 $8,645 $1,700 $11,900 On Site/Janitorial $20,0001 1/1 415 $1,410 $1,410 $1,795 $1,795 Water and Sewer $27,8401 0/1 320 $1,100 $1,100 $1,350 $1,350 Gas and Electric $9,6471 0/1 413 $1,300 $1,300 $1,500 $1,500 Trash $5,9155 Commercial 6185 $1.89 $11,680 $2.50 $15,463 Property Management $22,483

Mezzanine 1641 $1.00 $1,641 Maintenance/Repair (Est.) $18,000Landscaping $0

Total Scheduled Rent: $38,380 $54,249 Misc. $1,800Laundry: $250 $250Utility Reimbursement: Total Expenses: $199,680Other: $50 Per Net SqFt: $13.72Parking and Storage: $0 $0 Per Unit: $6,655.99Monthly Scheduled Gross Income: $38,630 $54,549Annual Scheduled Gross: $463,560 $654,582

A N N U A L I Z E D O P E R A T I N G D A T A Scheduled Gross Income: $463,560 $654,582Less Vacancy Rate Reserve: 3% $13,907 3% $19,637Gross Operating Income: $449,653 $634,945Less Expenses: 43.08% $199,680 $199,680Net Operating Income: $249,973 $435,265Less Loan Payments: $166,722 $166,722Pre-Tax Cash Flow: 2.78% * $83,252 8.95% * $268,543Plus Principal Reduction: $55,163 $55,163Total Return Before Taxes: 4.61% * $138,415 10.79% * $323,706

Current Rents Market Rents

Current Rents Market Rents

*As a % of Down Payment

** 1.1128%+$3767.34



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OPERATING INFORMATION




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RETAIL COMPARABLES

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Comparable #2 Type Rent/Month SF $/SF

1340 Fourth StSan Rafael, CA

Retail $6,780 2,712 $2.50 Leased

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Subject Property Type Rent/Month SF $/SF

La Casa Grande1330-1336 Fourth StSan Rafael, CA

Retail/Salon $11,680 6,185* $1.89 Leased

Comparable #1 Type Rent/Month SF $/SF

1318-1320 Fourth StSan Rafael, CA

Retail $5,000 2,000 $2.50 Available

3 Comparable #3 Type Rent/Month SF $/SF


Retail $8,025 2,293 $3.50 Available

*combined 5 spaces




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RETAIL COMPARABLES MAP

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La Casa Grande

1 1318-1320 Fourth St

2 1340 Fourth St

3 1121-1139 Fourth St

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SAN RAFAEL

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SUBJECT




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APARTMENT COMPARABLES

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Comparable #2 Units Studio 1b/0b 1b/1b 2b/1b Vacancies Util Incl

215 Bayview215 Bayview StSan Rafael, CA

90$1,750329 SF

$5.32/SF

$1,975540 SF

$3.66/SF

$2,400754 SF

$3.18/SF0 W,S,T

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Subject Property Units Studio 1b/0b 1b/1b 2b/1b Vacancies Util Incl


25$1,133*311 SF*

$3.64/SF

$946*339 SF

$2.79/SF

$1,257*336 SF*$3.74/SF

0W,S,T

G/E**

Comparable #1 Units Studio 1b/0b 1b/1b 2b/1b Vacancies Util Incl

Rafael Town Center1050 Court StSan Rafael, CA

113$2,300447 SF

$5.15/SF

$2,700594 SF

$4.55/SF6 W,S,T

3 Comparable #3 Units Studio 1b/0b 1b/1b 2b/1b Vacancies Util Incl

Lincoln Villa1825 Lincoln AveSan Rafael, CA

64$1,875387 SF

$4.84/SF

$2,150542 SF

$3.97/SF0 W,S,T

*averages **18 units




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APARTMENT COMPARABLES MAP

1

2

La Casa Grande

1 Rafael Town Center

2 215 Bayview Apartments

3 Lincoln Villa

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SAN RAFAEL

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SUBJECT




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SOLD COMPARABLES

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2

Comparable #1 Units Price Year Built GRM Cap Rate $/SF

Rafael Garden1315 Lincoln AveSan Rafael, CA

16-1/1 $5,150,000 1948 15.06 3.93% $668

COE: 7/19/19



2-2/1 $4,440,000 1922 14.05 4.60% $351

2-1/1

7-Studio

COE: 2/6/15 3-Rest./Retail

Subject Units Price Year Built GRM Cap Rate $/SF


14-1/0 $6,000,000 1879 12.94 4.17% $409

8-1/1

3-Studio

OTM 5-Retail

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2


The Mayflower1533 Fourth StSan Rafael, CA

4-1/1 $3,640,000 1925 14.47 4.91% $548

2-Studio

1-Bar/Rest.

COE: 12/28/18

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SOLD COMPARABLES MAP

1

2

La Casa Grande

1 Rafael Garden Apartments

2 1222-1230 Fourth St

3 The Mayflower

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SUBJECT

SAN RAFAEL




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SAN RAFAEL

MILL VALLEY

SAN FRANCISCO

SAUSALITO

CORTE MADERA

NOVATO

AREA MAP



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la casa grande - loopnet · la casa grande is believed to have been built originally as a hotel,...

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