offering memorandum · space. since the end of 2017, the downtown area has opened 153 new hotel...

VIA OLIVERA APARTMENTS240-272 W Via Olivera • Palm Springs, CA 92262

Offering Memorandum

1

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.

VIA OLIVERA APARTMENTS

Palm Springs, CA

ACT ID Z0080686

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

Floor Plans

Site Plan

FINANCIAL ANALYSIS 02Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03Sales Comparables

MARKET OVERVIEW 04Market Analysis

Demographic Analysis


3


4

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Spa Resort Casino 2,000

Tenet 1,406

UPS 500

Palm Springs Unified Schl Dist 492

County of Riverside 470

Carefusion 207 Inc 327

Walmart 261

American Medical Response 259

Oasis IPA 250

R P S Resort Corp 250

Desert Oasis Healthcare 240

Savourys Good Earth Cuisine 208

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 8,370 31,222 67,627

2010 Census Pop 7,349 27,879 61,039

2017 Estimate HH 4,474 15,537 30,681

2010 Census HH 3,875 13,654 27,371

Median HH Income $42,215 $40,298 $44,505

Per Capita Income $40,710 $34,810 $33,411

Average HH Income $76,058 $69,530 $73,345

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

2 1bed/1bath 450

3 1bed/1bath 600

1 2bed/1bath 850

6 Total 3,550

VITAL DATA

Price $930,000 CURRENT YEAR 1

Down Payment 40% / $372,000 CAP Rate 4.99% 5.84%

Loan Amount $558,000 GRM 11.87 10.99

Loan Type Proposed NewNet Operating Income

$46,365 $54,350

Interest Rate / Amortization 5.00% / Net Cash Flow After Debt Service

12.46% / $46,365 14.61% / $54,350

Price/Unit $155,000 Total Return 12.46% / $46,365 14.61% / $54,350

Price/SF $261.97

Number of Units 6

Rentable Square Feet 3,550

Number of Buildings Two

Number of Stories One

Year Built / Renovated 1945 / 2018

5


OFFERING SUMMARY

▪ Individually Metered For Gas and Electricity

▪ Vacant Parcel of Land Included In The Sale

▪ Pride Of Ownership

▪ Turn Key Investment

▪ Prime Palm Springs Location

INVESTMENT HIGHLIGHTS

Marcus and Millichap is pleased to present Via Olivera Apartments, a six unit apartment complex located in Palm Springs, CA. With 350 days of sunshine a year, Palm

Springs is a desert oasis and provides unmatched access to world class golf, premium shopping, and countless recreational activites. The city is part of one of the fastest

growing submarkets in California, experiencing a nearly 20% growth over the last 20 years with an influx of new employers and developments.

Via Olivera Apartments is located in the desirable Racquet Club West subsection of Palm Springs and is a short 2 minute drive and 10 minute walk to the famed Downtown

Palm Springs. Palm Springs has been reinvigorating its downtown back to its Hollywood-like roots, delivering new prestigious hotels, restaurants, shopping, and office

space. Since the end of 2017, the downtown area has opened 153 new hotel rooms, 8 new restaurants, 80,000 square feet of retail shopping, and 30,000 square feet of

office space. The downtown revitalization project builds on Palm Springs legacy as a playground for trendsetters and celebrities, while offering a revival for the young crowd

that is playful, colorful, and undeniably sexy. Via Olivera's proximity to Downtown proves convenient access for all that Palm Springs continues to offer, while still securing an

ideal level of privacy. Via Olivera Apartments is located only one mile from The Desert Regional Medical Center and with over 1,500 employees (majority of whom are

nurses) makes for a great location for nurses who want to live close to the hospital.

INVESTMENT OVERVIEW

6


#

OFFERING SUMMARY

PROPERTY OVERVIEW

240-272 Via Olivera features five 1bed/1bath apartment units and one 2bed/1bath apartment unit. There is also a

seperately parceled piece of land at .34 Acres included in the sale. The zoning for the pacel is R-2. The two

bedroom unit has been completely renovated and the one bedrooms have been kept in very nice shape and have

been kept in good condition when turned. Built in 1945, the building consists of concrete slab foundation, wood

framing, stucco exterior, asphalt parking surface, and a pitched roof.

7

▪ Laundry Room

Common Area Amenities

▪ Tranquil Lounge Area

▪ Gated Access

▪ Quiet/Peaceful Neighborhood

▪ Spacious Patios

Unit Amenities

▪ TIle Flooring Throughout Every Unit

▪ New Appliances In Select Units

7


PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $558,000

Loan Type Proposed New

Interest Rate 5.00%

Loan Term 30 Years

Loan to Value 60%

Debt Coverage Ratio 1.3

THE OFFERING

Property Via Olivera Apartments

Price $930,000

Property Address 240 W Via Olivera, Palm Springs, CA

Assessors Parcel Number 504-250-009

Zoning R2, Palm Springs

SITE DESCRIPTION

Number of Units 6

Number of Buildings Two

Number of Stories One

Year Built/Renovated 1945

Rentable Square Feet 3550

Type of Ownership Fee Simple

Parking Open

Parking Ratio 1:1

Landscaping Desert

Topography Flat

UTILITIES

Water Owner

Electric Tenant/Owner

Gas Tenant

CONSTRUCTION

Foundation Concrete Slab

Framing Wood

Exterior Stucco

Parking Surface Asphalt

Roof Pitched

MECHANICAL

HVAC Individual

Fire Protection Smoke Detectors

8

REGIONAL MAP


9

LOCAL MAP


10

AERIAL PHOTO


11

Marcus & Millichap closes

more transactions than any other

brokerage firm.

12


12

PROPERTY PHOTO

FLOOR PLANS


13

FLOOR PLANS


14

SITE PLAN


15


16

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

17

FINANCIAL ANALYSIS


OPERATING STATEMENT

18

FINANCIAL ANALYSIS


NOTES

19

FINANCIAL ANALYSIS


PRICING DETAIL

20

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage offices

$5.63 billion

total national

volume in 2017

Access to more

capital sources

than any other

firm in the

industry

Optimum financing solutions to

enhance value

Our ability to enhance buyer

pool by expanding finance

options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender progress,

insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,707

debt and equity

financings

in 2017

ACQUISITION FINANCING


21


22

MARKET

COMPARABLES


SALES COMPARABLES MAP

23


(SUBJECT)

Cottonwood Apartments

205 S Belardo Rd

238 S Saturmino Dr

735 S Riverside Dr

2980-0East Ranchero Drive

SALES COMPARABLES

1

2

3

4

5

PROPERTY NAMEVIA OLIVERA APARTMENTS

SALES COMPARABLES

24

SALES COMPARABLES

Avg. $239.31

$0.00

$40.00

$80.00

$120.00

$160.00

$200.00

$240.00

$280.00

$320.00

$360.00

$400.00

240 W ViaOlivera

CottonwoodApartments

205 SBelardo Rd

238 SSaturmino

Dr

735 SRiverside

Dr

2980-0EastRanchero

Drive

Average Price Per Square Foot

Avg. $188,396

$0

$30,000

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000

$240,000

$270,000

$300,000

240 W ViaOlivera


205 SBelardo Rd

238 SSaturmino

Dr

735 SRiverside

Dr

2980-0EastRanchero

Drive

Average Price Per Unit

Avg. 14.00

0.00

1.60

3.20

4.80

6.40

8.00

9.60

11.20

12.80

14.40

16.00

240 W ViaOlivera


205 SBelardo Rd

238 SSaturmino

Dr

735 SRiverside

Dr

2980-0EastRanchero

Drive

Average GRM

Avg. 4.45%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

240 W ViaOlivera


205 SBelardo Rd

238 SSaturmino

Dr

735 SRiverside

Dr

2980-0EastRanchero

Drive

Average Cap Rate

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


25

SALES COMPARABLES

Units Unit Type

Offering Price: $930,000 2 1bed 1bath

Price/Unit: $155,000 3 1bed 1bath

Price/SF: $261.97 1 2bed 1bath

CAP Rate: 4.99%

GRM: 11.87

Total No. of Units: 6

Year Built: 1945

Underwriting Criteria

Income $74,431 Expenses $28,066

NOI $46,365 Vacancy ($3,917)

240 W VIA OLIVERA240 W Via Olivera, Palm Springs, CA, 92262

1

Units Unit Type

Close Of Escrow: 1/30/2018 8 2 Bdr 2 Bath

Days On Market: 83

Sales Price: $1,498,000

Price/Unit: $187,250

Price/SF: $217.73

CAP Rate: 4.50%

GRM: 14.58


Year Built: 1960

Underwriting Criteria

Income $103,920

NOTES

Unit mix is superior than the subject property. GRM and CAP Rate is

estimated.

COTTONWOOD APARTMENTS471 E Cottonwood Rd, Palm Springs, CA, 92262

Units Unit Type


Sales Price: $1,650,000 4 2 Bdr 2 Bath


Price/SF: $201.22

CAP Rate: 4.00%

GRM: 14.00


Year Built: 1971

2

NOTES

This was a principal to principal transaction. Cap Rate and GRM is

estimated.

205 S BELARDO RD205 S Belardo Rd, Palm Springs, CA, 92262

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


26

SALES COMPARABLES

Units Unit Type


Days On Market: 220 1 2 Bdr 2 Bath

Sales Price: $1,122,500


Price/SF: $195.80

CAP Rate: 4.80%

GRM: 13.20


Year Built: 1960

3

238 S SATURMINO DR238 S Saturmino Dr, Palm Springs, CA, 92262

4

Units Unit Type


Sales Price: $750,000 1 2 Bdr 1 Bath

Price/Unit: $150,000 1 3 Bdr 2 Bath

Price/SF: $200.80


Year Built: 1959

NOTES

There were two vacancies at the time of the sale.

735 S RIVERSIDE DR735 S Riverside Dr, Palm Springs, CA, 92264

Units Unit Type


Sales Price: $1,905,000 5 2 Bdr 1 Bath


Price/SF: $381.00

CAP Rate: 4.50%

GRM: 14.20


Year Built: 1960

5

NOTES

This property is fully renovated and was renovated with high end finishes.

2980-0EAST RANCHERO DRIVE2980 E Ranchero Dr, Palm Springs, CA, 92262


27

MARKET

OVERVIEW

MARKET OVERVIEW

RIVERSIDE-SAN BERNARDINOOVERVIEW

1

The Riverside-San Bernardino metro, also referred to as the Inland

Empire, is a 28,000-square-mile region in Southern California

composed of San Bernardino and Riverside counties. The metro

contains a population approaching 4.6 million. The largest city is

Riverside with more than 327,000 residents, followed by San

Bernardino with nearly 221,000 people. Valleys in the southwestern

portion of the region, adjacent to Los Angeles, Orange County and San

Diego County, are the most populous in the metro. These areas abut

the San Bernardino and San Jacinto mountains, behind which lies the

high desert area of Victorville/Barstow to the north and the low-desert

Coachella, home of Palm Springs, to the east.

MARKET OVERVIEW

METRO HIGHLIGHTS

STRATEGIC LOCATION

Near LAX and Ontario International airports and

ports in Long Beach and Los Angeles, Riverside-

San Bernardino has vast air, rail and interstate

transit network.

DOMINANT INDUSTRIAL MARKET

The metro is one of the nation’s leading industrial

markets in terms of sales, construction and

absorption.

STRONG DEMOGRAPHIC TRENDS

Jobs, colleges, new-home construction and more

affordable housing options will draw 350,000 new

residents to the Inland Empire in the next five years.


MARKET OVERVIEW

ECONOMY▪ Intermodal infrastructure supports the warehousing and distribution industry. Ontario

International and the Southern California Logistics Airport in Victorville are cargo airports

that supplement the distribution system.

▪ Growth in the distribution industry impacts all others. Many Fortune 500 companies have

massive distribution centers in the area, such as Amazon and Deckers. Available land

allows further development.

▪ Relatively affordable housing supports local population growth. These gains heighten the

need for housing, retail goods, personal and government services.

SHARE OF 2016 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

San Bernardino County

Riverside County

Stater Bros.

Loma Linda University Medical Center

Kaiser Permanente

Walmart

University of California, Riverside

Fort Irwin

Ontario International Airport

March Air Reserve Base* Forecast

2

MANUFACTURING

7%GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

3%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

24%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

1%INFORMATION

10%

7%

17% 12% 3%

15%


MARKET OVERVIEW

DEMOGRAPHICS

EDUCATION

▪ The metro is expected to add nearly 350,000 people through 2022, and during this

time, more than 140,900 households will be formed, generating demand for housing.

▪ The homeownership rate of 62 percent is below the national rate of 64 percent but

well above large metros in California.

▪ The median home price of $350,000 is also well below that of larger Southern

California metros.

Relatively affordable housing is a large draw of the metro. The median home price in

Riverside-San Bernardino is lower than in Los Angeles and Orange Counties. The Inland

Empire provides a number of cultural opportunities, including the Riverside Metropolitan

Museum and the Museum of History and Art in Ontario. The Riverside County Philharmonic

provides classical music concerts throughout the area. The region features an impressive

offering of more than 20 college campuses, including nine community colleges, two

California State University campuses and the University of California, Riverside.

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

Analytics; U.S. Census Bureau

QUALITY OF LIFE

3

SPORTS

ARTS & ENTERTAINMENT


34.1

2017MEDIAN AGE:

U.S. Median:

37.8

$58,000

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

4.6M

2017POPULATION:

Growth2017-2022*:

7.6%

1.4M

2017HOUSEHOLDS:

10.1%

Growth2017-2022*:

2017 Population by Age

0-4 YEARS

7%5-19 YEARS

22%20-24 YEARS

8%25-44 YEARS

27%45-64 YEARS

24%65+ YEARS

12%

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on November 2018

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 8,861 32,803 70,260

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2017 Estimate 10,149 42,128 71,963

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 4,872 16,631 32,717

▪ 2017 Estimate


Average (Mean) Household Size 2.04 1.98 2.16

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 8.90% 7.04% 6.64%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2022 Projection 4,872 16,631 32,717

2017 Estimate 6,067 20,909 41,041

Owner Occupied 2,260 7,765 17,250

Renter Occupied 2,214 7,772 13,431

Vacant 1,594 5,372 10,361

▪ Persons In Units

2017 Estimate Total Occupied Units 4,474 15,537 30,681

1 Person Units 41.93% 44.55% 40.46%

2 Person Units 36.03% 34.75% 34.61%

3 Person Units 9.21% 8.92% 9.33%

4 Person Units 6.48% 6.02% 7.12%

5 Person Units 3.67% 3.48% 4.45%

6+ Person Units 2.68% 2.27% 4.04%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$200,000 or More 5.54% 4.73% 5.14%

$150,000 - $199,000 5.20% 4.22% 4.18%

$100,000 - $149,000 10.39% 9.24% 10.02%

$75,000 - $99,999 8.25% 8.87% 10.34%

$50,000 - $74,999 14.72% 14.83% 15.72%

$35,000 - $49,999 13.72% 14.07% 14.28%

$25,000 - $34,999 12.89% 12.75% 11.90%

$15,000 - $24,999 13.81% 14.99% 14.13%

Under $15,000 15.48% 16.31% 14.29%

Average Household Income $76,058 $69,530 $73,345

Median Household Income $42,215 $40,298 $44,505

Per Capita Income $40,710 $34,810 $33,411

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 8,370 31,222 67,627

Under 20 16.99% 16.28% 18.17%

20 to 34 Years 14.53% 14.47% 15.29%

35 to 39 Years 4.94% 4.61% 4.81%

40 to 49 Years 13.31% 12.98% 12.81%

50 to 64 Years 27.62% 26.60% 24.65%

Age 65+ 22.60% 25.06% 24.25%

Median Age 50.13 50.97 49.30

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 6,584 24,766 52,023

Elementary (0-8) 5.37% 5.42% 5.72%

Some High School (9-11) 7.09% 7.31% 7.67%

High School Graduate (12) 21.70% 21.84% 23.66%

Some College (13-15) 24.67% 25.67% 24.94%

Associate Degree Only 8.28% 7.63% 7.86%

Bachelors Degree Only 19.20% 18.81% 17.01%

Graduate Degree 12.77% 11.74% 11.46%

▪ Population by Gender

2017 Estimate Total Population 8,370 31,222 67,627

Male Population 56.61% 56.54% 55.30%

Female Population 43.39% 43.46% 44.70%

31

Income

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

$42,215, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 30.47%

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

area will be $50,049 five years from now, which represents a change

of 18.56% from the current year.

The current year per capita income in your area is $40,710, compare

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

household income in your area is $76,058, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 8,370. The

population has changed by 22.69% since 2000. It is estimated that the

population in your area will be 8,861.00 five years from now, which

represents a change of 5.87% from the current year. The current

population is 56.61% male and 43.39% female. The median age of the

population in your area is 50.13, compare this to the US average

which is 37.83. The population density in your area is 2,663.97 people

per square mile.

Households

There are currently 4,474 households in your selected geography. The

number of households has changed by 41.05% since 2000. It is

estimated that the number of households in your area will be 4,872

five years from now, which represents a change of 8.90% from the

current year. The average household size in your area is 2.04

persons.

Employment

In 2017, there are 4,908 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

59.68% of employees are employed in white-collar occupations in this

geography, and 39.42% are employed in blue-collar occupations. In

2017, unemployment in this area is 6.13%. In 2000, the average time

traveled to work was 23.00 minutes.

Race and Ethnicity

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

70.69% White, 6.65% Black, 0.07% Native American and 3.75%

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 30.39% 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 $321,231 in 2017,

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

1,836 owner occupied housing units in your area and there were 1,337

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

time was $536.

Source: © 2017 Experian

DEMOGRAPHICS

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DEMOGRAPHICS

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offering memorandum · space. since the end of 2017, the downtown area has opened 153 new hotel...

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