O F F E R I N G M E M O R A N D U M
OFFERING MEMORANDUM
PRESENTED BY: NATASHA DAVIS
110-136 Washington Rd
C h o w c h i l l a | C A
OVERVIEW
MARKET COMPARABLES
FINANCIAL ANALYSIS
Table OfContents
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® 2020 Northgate Commercial Real Estate. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, 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 current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
Presented By:
Natasha Davis
Vice President | Multi-Family Investments
559.354.9911
[email protected]
LIC# 02034405
Premium Group Commercial along with Northgate Commercial/NAI Pence
is pleased to present: 110-136 Washington Rd, Chowchilla, CA 93610
The complex was built in 1988 and totals (14) units with (2) buildings. There are (2) two story buildings with fourteen Two-Bedroom/One-Bathroom units that are around 900 square feet. The rents are all market. The units are individually metered for gas and electric. Many of the units have been renovated with wood floors, new appliances, new carpeting, fireplace, A/C and much more. There are 12 covered parking spaces and an 8-camera security system that connects remotely to an app on the seller’s phone. There is a laundry room with hook ups, each unit has washer and dryer hook ups in unit as well.
The building is located just off Robertson Blvd. and Washington Rd., surrounded by homes and local neighborhood shopping centers. Walking distance to local schools: Fuller Elementary School (0.6 Mile), Wilson Middle School (0.3 Mile), Chowchilla High School (0.8 Mile). Neighborhood shopping centers are walking distance: State Foods Supermarket (0.2 Mile), Dollar General Market (0.3 Mile), Dollar Tree (0.2), Auto Zone (500 ft), Subway (0.2 Mile).
Chowchilla is a small Central Valley community located about midway between
Merced and Madera on the Golden State Highway. Historically an agricultural city, the culture of Chowchilla is still largely influenced by its farm town roots. The Chowchilla Madera County Fair is the biggest event of the year, drawing thousands of people from around the region every spring. Contrasting with the distinctly rural character, many of the city’s neighborhoods display a more typically Californian aesthetic, with Mediterranean-style homes and palm tree-lined streets. The local rental market features a broad variety of apartments and single-family homes, allowing you to find the perfect place to fit your tenant’s lifestyle and budget.
As of September 2020, the average apartment rent in Chowchilla, CA is $854 for one bedroom, $883 for two bedrooms, and $1,206 for three bedrooms. Apartment rent in Chowchilla has increased by 3.9% in the past year.
Overview
OFFERING MEMORANDUM
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Property Overview
110-136 WASHINGTON RD | CHOWCHILLA, CA
Highlights
• All 2BD/1BA
• Wood Floors
• Built in 1988
• Achieved Increases Through Covid
• Month to Month Leases
110-136 WASHINGTON RD | CHOWCHILLA, CA
Property Overview
OFFERING MEMORANDUM
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Regional Map N
110-136 WASHINGTON RD | CHOWCHILLA, CA
Property Overview
OFFERING MEMORANDUM
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Local Map N
110-136 WASHINGTON RD | CHOWCHILLA, CA
Property Overview
OFFERING MEMORANDUM
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Aerial Map N
Market Comparables
OFFERING MEMORANDUM 110-136 WASHINGTON RD | CHOWCHILLA, CA
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Market Comparables
OFFERING MEMORANDUM
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Rent Comparables
rentpropertyname1
Unit Type Units SF Rent Rent/SF
2BR 1BA 11 700 $700 $1.00
Total/Avg. 11 700 $700 $1.00
1413 Robertson Blvd
Chowchilla, CA, 93610
Unit Type Units SF Rent Rent/SF
2 Bdr 1 Bath 20 900 $700-800 $1.13
Total/Avg. 20 900 $750 $1.06
Trinity Court Apartments
408 Trinity Ave, Chowchilla, CA, 93610
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 1 700 $750
2 Bdr 1 Bath 14 750 $800 $1.13
Total/Avg. 20 900 $750 $1.06
1520-1530 Robertson Blvd
Chowchilla, CA, 93610
110-136 WASHINGTON RD | CHOWCHILLA, CA
Market Comparables
OFFERING MEMORANDUM
07
Sales Comparables
Trinity Court Apartments
408 Trinity Ave, Chowchilla, CA, 93610
100 Kings Ave
Chowchilla, CA, 93610
1520-1530 Robertson Blvd
Chowchilla, CA, 93610
110-136 WASHINGTON RD | CHOWCHILLA, CA
Units Unit Type
Offering Price: $1,200,300 12 2BR 1BA
Price/Unit: $102,083
CAP Rate: 6.4%
Total No. of Units: 12
Units Unit Type
Sale Price: $1.29 M 15 2BR 1BA
Price/Unit: $86,000
CAP Rate: 6.15%
Total No. of Units: 15
Units Unit Type
Sale Price: $1.79 M 20 2BR 1BA
Price/Unit: $89,500
CAP Rate: 6.08%
Total No. of Units: 20
Financial Analysis
OFFERING MEMORANDUM 110-136 WASHINGTON RD | CHOWCHILLA, CA
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Rent Roll Detail
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Current Current Potential Potential
Square Rent / Rent / SF/ Rent / Rent / SF/
Unit Unit Type Feet Month Month Month Month
1 2BD/1BA 900 $725 $0.81 $850 $0.94
2 2BD/1BA 900 $710 $0.79 $850 $0.94
3 2BD/1BA 900 $710 $0.79 $850 $0.94
4 2BD/1BA 900 $710 $0.79 $850 $0.94
5 2BD/1BA 900 $725 $0.81 $850 $0.94
6 2BD/1BA 900 $745 $0.83 $850 $0.94
7 2BD/1BA 900 $745 $0.83 $850 $0.94
8 2BD/1BA 900 $710 $0.79 $850 $0.94
9 2BD/1BA 900 $725 $0.81 $850 $0.94
10 2BD/1BA 900 $725 $0.81 $850 $0.94
11 2BD/1BA 900 $745 $0.83 $850 $0.94
12 2BD/1BA 900 $745 $0.83 $850 $0.94
13 2BD/1BA 900 $745 $0.83 $850 $0.94
14 2BD/1BA 900 $710 $0.79 $850 $0.94
Total 12,600 $10,175 $0.81 $11,900 $0.94
Operating Statement
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Income Current Year 1 Notes Per Unit Per SF
Gross Scheduled Rent 122,100 147,084 10,506 11.67
Physical Vacancy (1,526) 1.3% (2,942) 2.0% (210) (0.23)
Total Vacancy ($1,526) 1.3% ($2,942) 2.0% ($210) ($0)
Effective Rental Income 120,574 144,142 10,296 11.44
Other Income
Laundry/Late Fees 4,800 5,200 371 0.41
Total Other Income $4,800 $5,200 $371 $0.41
Effective Gross Income $125,374 $149,342 $10,667 $11.85
Expenses Current Year 1 Notes Per Unit Per SF
Real Estate Taxes 10,182 16,182 1,156 1.28
Insurance 3,235 3,235 231 0.26
Utilities - Electric, Gas, Comcast 2,555 2,400 171 0.19
Water & Sewer 5,454 5,945 425 0.47
Trash Removal 4,750 4,900 350 0.39
Repairs & Maintenance 5,550 10,500 750 0.83
Pest/ Landscaping 1,750 1,750 125 0.14
Payroll 2,590 2,500 179 0.20
Operating
Reserves 2,800 2,800 200 0.22
Management Fee 5,015 4.0% 7,467 5.0% 533 0.59
Total Expenses $43,881 $57,679 $4,120 $4.58
Expenses as % of EGI 35.0% 38.6%
Net Operating Income $81,493 $91,663 $6,547 $7.27
Pricing Detail
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Summary Operating Data
Price $1,400,000
Down Payment $280,000 20%
Number of Units 14
Income Current Year 1Price Per Unit $100,000
Gross Scheduled Rent $122,100 $147,084Price Per SqFt $111.11
Less: Vacancy/Deductions 1.3% $1,526 2.0% $2,942Rentable SqFt ± 12,600
Total Effective Rental Income $120,574 $144,142Lot Size 0.60 Acres
Other Income $4,800 $5,200Approx. Year Built 1988
Effective Gross Income $125,374 $149,342Less: Expenses 35.0% $43,881 38.6% $57,679
Net Operating Income $81,493 $91,663
Returns Current Year 1 Cash Flow $81,493 $91,663
CAP Rate 5.82% 6.55%
Debt Service $68,099 $68,099GRM 11.47 9.52
0.00 Net Cash Flow After DebtService 4.78% $13,394 8.42% $23,565
Cash-on-Cash 4.78% 8.42%
-18.24% Principal Reduction $18,068 $18,898Debt Coverage Ratio 1.20 1. 35
0.00 Total Return 11.24% $31,462 15.17% $42,463Financing 1st Loan Expenses Current Year 1
Loan Amount $1,120,000 Real Estate Taxes $10,182 $16,182
Loan Type New Insurance $3,235 $3,235
Interest Rate 4.50% Utilities - Electric, Gas $2,555 $2,400
Amortization 30 Years Water & Sewer $5,454 $5,945
Year Due 2031 Trash Removal $4,750 $4,900
Repairs & Maintenance $5,550 $10,500
Pest/ Landscaping $1,750 $1,750
# Of Units Unit Type SqFt/Unit Scheduled Rents Market Rents
Payroll $2,590 $2,500
14 2BD/1BA 900 $727 $850
Operating Reserves $2,800 $2,800
Management Fee $5,015 $7,467
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Total Expenses $43,881 $57,679
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Expenses/Unit $3,134 $4,120
0
Expenses/SF $3.48 $4.58
Thank You.
® 2020 Northgate Commercial Real Estate. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, 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 current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
Chowchilla, CA
