EAST LAKE JEWEL (123) 456-7890 AGENTNAME@KW.COM SAMI MENESES BROKER ASSOCIATE | DRE# 1234567 OFFERING MEMORANDUM 123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA KW Commercial - Oakland DRE#: 02029039 123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA
SAMI MENESES
BROKER ASSOCIATE | DRE# 1234567
(123) 456-7890
AGENTNAME@KW.COM
TABLE OF CONTENTS
All materials and information received or derived from KW Commercial Oakland, its directors, officers, agents, advisors, affiliates, and/or any third party sources are provided without representation or warranty as to completeness, veracity or accuracy, condition of the property, compliance, or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither KW Commercial Oakland, its directors, officers, agents, advisors, or affiliates make any representation or warranty, express or implied, as to accuracy or completeness of any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial Oakland/KW Commercial East Bay will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third-party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial Oakland makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial Oakland does not serve as a financial advisor to any party regarding any proposed transaction.
All data and assumptions regarding financial performance, including those used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at, or increased to that level. Parties must evaluate any applicable contractual and governmental limitations, as well as market conditions, vacancy factors, and other issues in order to determine rents from or for the property.
Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial Oakland in compliance with all applicable fair housing and equal opportunity laws.
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EXECUTIVE SUMMARY FINANCIAL ANALYSIS PROPERTY PHOTOS AREA HIGHLIGHTS LOCATION HIGHLIGHTS SITE ATTRACTIONS 01 02 03 04 05 06 KW Commercial - Oakland DRE#: 02029039
EXECUTIVE SUMMARY
123 ADDRESS, OAKLAND, CA
PROPERTY OVERVIEW
Keller Williams is pleased to be retained as the exclusive broker for the 1640 6th Avenue Apartments. The subject property is a fifteen (15) unit property, with an additional unwarranted studio, in the very desirable Merritt neighborhood (aka East Lake) of Oakland. The 1640 6th Ave property is located a short distance from Lake Merritt and the Lake Merritt BART Station.
Built in 1959, 1640 6th Ave presents a two-story walk-up structure with exterior walkways and private entrances for each of the apartments. The building was entirely renovated over the summer of 2022. These upgrades included new Pex plumbing, replaced sewer and lateral, new Romex wiring, all new double paned windows, improved railings, and new landscaping. The building is built of wood frame construction with a stucco exterior. The building contains approximately 8,586 square feet of gross building area set on a 5,590 square foot lot.
The unit mix consists of two Studios (one of which is unwarranted), ten (10) one-bedroom / one-bath units averaging approx. 550 square feet, and four (4) two-bedroom / one-bath units averaging approx. 671 square feet. All but one of the units have been recently renovated and feature kitchen upgrades such as granite countertops, new cabinetry, and tiled floors. The ranges and ovens are electric. The units feature plank hardwood flooring throughout the living areas. Bathrooms contain pedestal sinks, tiled floors, wall-mounted cabinets, and bathtubs with tiled surrounds.
Heat is provided to the units via gas wall mounted furnaces. The units are separately metered for gas and electricity while water is submettered internally and charged back to the residents in the form of RUBS. Hot water to the units is supplied by the recently replaced highly efficient 100 gallon water heater. The roof is a torch down mastic construction which was replaced in approx. 2010. Brand new on-site washers and dryers provide additional income. There is gated, secured parking for each of the units. Street parking is readily available in the surrounding neighborhood.
The 1640 6th Avenue Apartments offer investors the opportunity to acquire a well-situated property, just blocks from Lake Merritt, which was entirely renovated with strong current income in a great Oakland location. The Merritt neighborhood (aka East Lake) is one of the strongest rental housing submarkets in Oakland. The property is short 5 min walk from the wonderful Lake Merritt. With a Walk Score of 92 and a Bike Score of 92 this location is a walker and biker’s paradise. Located very close to I-580 & I-880 and approx. 1 mile from Lake Merritt BART and 1.5 miles from Downtown Oakland, the property will attract commuters as well as those who work in the area. Due to the property’s excellent location, large sized units, and overall quality, the property will continue to produce strong cash flow well into the future.
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PROPERTY DESCRIPTION & OFFERING SUMMARY
EAST LAKE JEWEL
Bedrooms:
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OFFERING PRICE:
Price Per Unit:
Price Per Square Foot:
GRM:
Cap Rate:
All Cash 10-Year IRR:
Leveraged 10-Year IRR:
$123,000,000
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No. of Units:
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Living Area (SF):
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123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA | 5
FINANCIAL ANALYSIS
123 ADDRESS, OAKLAND, CA
RENT ROLL
123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA | 7 Unit # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15A* Totals Unit Type 1 Bed / 1 Bath 1 Bed / 1 Bath 1 Bed / 1 Bath 1 Bed / 1 Bath 1 Bed / 1 Bath 2 Bed / 1 Bath Studio 1 Bed / 1 Bath 1 Bed / 1 Bath 1 Bed / 1 Bath 1 Bed / 1 Bath 1 Bed / 1 Bath 2 Bed / 1 Bath 2 Bed / 1 Bath 2 Bed / 1 Bath Studio 16 Market Rent Per Unit Current $883 $2,100 $2,100 $2,100 $2,100 $2,800 $1,695 $2,100 $2,100 $2,100 $2,100 $2,100 $1,177 $2,800 $2,800 $1,200 $32,256 $2,100 $2,100 $2,100 $2,100 $2,100 $2,800 $1,695 $2,100 $2,100 $2,100 $2,100 $2,100 $2,800 $2,800 $2,800 $1,695 $35,590 Move-In 10/1/12 12/15/22 12/15/22 12/15/22 12/15/22 12/15/22 12/15/22 12/15/22 12/15/22 12/15/22 12/15/22 12/15/22 5/7/10 12/15/22 12/15/22 TBD $81,488 Loss to -$1,217 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$1,623 $0 $0 -$495 -$3,334 SFT 550 550 550 550 550 671 402 550 550 550 550 550 671 671 671 8586
PRO FORMA INCOME & EXPENSES
123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA | 8 Income Expenses Scheduled Market Rent Less: Vacancy Net Rental Income Plus: Laundry Income Plus: Parking Income Total Operating Income (EGI) Administrative Oakland Business Tax & Rent Board Fees Repairs & Maintenance/Turnover Management Fee Utilities Contracted Services Real Estate Taxes Special Assessments Insurance Replacement Reserve Total Expenses Percentage of Gross Income Current Rent Pro Forma Per Unit $387,066 ($11,612) $375,454 $1,920 $9,000 $386,374 $800 $6,198 $8,000 $15,455 $17,016 $1,080 $58,399 $7,858 $5,600 $4,000 $124,406 32.20% $7,775 $13.84 $50 $387 $500 $966 $1,064 $68 $3,650 $491 $350 $250 EGI% Per Unit: Per SF: $427,080 ($12,812) $414,268 $3,840 $9,000 $427,108 $800 $6,766 $8,000 $17,084 $17,016 $1,080 $58,399 $7,858 $5,600 $4,000 $126,603 29.64% $7,913 $14.09
Pro Forma 3.00% 4.00% 1.3741%
Market Rent
123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA | 9 1 2 3 4 6 5 7
SALES COMPARABLES
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123 Address
Oakland, CA 123456
SALES COMPARABLES
123 Address
Oakland, CA 123456
123 Address
Oakland, CA 123456
Address: 123 Address
City: Oakland
Price: $4,250,000
Units: 16
$/Unit: $265,625
Sq Ft: 8,586
$/Sq Ft: $494.99
Cap Rate: 6.27%
COE: TBA
Years Built: 1959
Unit Mix: (2) Studios, (10) 1x1, (4)
Address: 123 Address
City: Oakland
Price: $4,250,000
Units: 16
$/Unit: $265,625
Sq Ft: 8,586
$/Sq Ft: $494.99
Cap Rate: 6.27%
COE: TBA
Years Built: 1959
Unit Mix: (2) Studios, (10) 1x1, (4)
Address: 123 Address
City: Oakland
Price: $4,250,000
Units: 16
$/Unit: $265,625
Sq Ft: 8,586
$/Sq Ft: $494.99
Cap Rate: 6.27%
COE: TBA
Years Built: 1959
Unit Mix: (2) Studios, (10) 1x1, (4)
123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA | 10
1 2
3
123 Address
Oakland, CA 123456
SALES COMPARABLES
123 Address
Oakland, CA 123456
123 Address
Oakland, CA 123456
Address: 123 Address
City: Oakland
Price: $4,250,000
Units: 16
$/Unit: $265,625
Sq Ft: 8,586
$/Sq Ft: $494.99
Cap Rate: 6.27%
COE: TBA
Years Built: 1959
Unit Mix: (2) Studios, (10) 1x1, (4)
Address: 123 Address
City: Oakland
Price: $4,250,000
Units: 16
$/Unit: $265,625
Sq Ft: 8,586
$/Sq Ft: $494.99
Cap Rate: 6.27%
COE: TBA
Years Built: 1959
Unit Mix: (2) Studios, (10) 1x1, (4)
Address: 123 Address
City: Oakland
Price: $4,250,000
Units: 16
$/Unit: $265,625
Sq Ft: 8,586
$/Sq Ft: $494.99
Cap Rate: 6.27%
COE: TBA
Years Built: 1959
Unit Mix: (2) Studios, (10) 1x1, (4)
123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA | 11
4 5
6
PROPERTY PHOTOS
123 ADDRESS, OAKLAND, CA
123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA
123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA
THE OPPORTUNITY
Short Walk (approx. 1 mile) from Lake Merritt BART
67% One Bedroom Units
6.16% Cap / 10.98 GRM (Current)
7.07% Cap / 9.95 GRM (Market)
Desirable Rental Area
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UNIT AMENITIES
95% Renovated Units
New Double Paned Windows
Tiled Kitchen and Bathroom Flooring
Granite Countertops
Updated Light Fixtures
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COMMON AREA/BUILDING AMENITIES
Gated Controlled Access
Separate Entrances
Separately Metered Gas, Electricity & Water
Onsite Parking
Community Garden Area
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LOCATION HIGHLIGHTS
123 ADDRESS, OAKLAND, CA
LOCATION OVERVIEW
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LOCATION HIGHLIGHTS
PROXIMITY TO EMPLOYMENT
• The property is approx. one and a half miles from The City of Oakland offices, the largest public employer
• The property is two and a half miles from Oakland’s largest private employer, Kaiser Permanente
• San Francisco’s financial district is a short 15-minute BART ride.
TRANSIT-ORIENTED NEIGHBORHOOD
• Lake Merritt BART Station is steps away
• I-880 & I-580 are less than a ½ mile while Hwy 24/I-980 is less than two miles away
• Many major AC transit bus lines can be found on Foothill Blvd, which is one of the cross-streets of the property, and International Blvd with Rapid Transit & Transbay buses is just a two blocks from the asset
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AREA HIGHLIGHTS
MERRITT
Merritt is a neighborhood in Oakland, California with a population of 2,961. Merritt is in Alameda County and is one of the best places to live in California.
Living in Merritt offers residents a dense urban feel and most residents rent their homes. In Merritt there are a lot of bars, restaurants, coffee shops, and parks. Many young professionals and retirees live in Merritt.
#17
#38 #33 #47
of 119 of 119
of 119 of 119
Best Neighborhood for Young Professionals in Oakland
Most Diverse in Oakland
Best Neighborhood to Live in Oakland
Best Neighborhood to Raise a Family in Oakland
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AREA HIGHLIGHTS
OAKLAND
Oakland is a city in California with a population of 425,097. Oakland is in Alameda County. Living in Oakland offers residents an urban-suburban mix feel and most residents rent their homes. In Oakland, there are a lot of bars, restaurants, coffee shops, and parks. Many families and young professionals live in Oakland.
#2
#6
#12
of 228 of 228
Most Diverse in America
of 228
Most Diverse Places to Live in America
Best Cities for Outdoor Activities in America
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Lakeside Park and Garden Center
Cathedral of Christ the Light Church Oakland Zoo
Fox Theater Oakland Redwood Regional Park
AREA HIGHLIGHTS
96
Bike Score
Biker’s Paradise
Daily errands can be accomplished on a bike.
93 Walk Score
Walker‘s Paradise
Daily errands do not require a car.
73 Transit Score
Excellent Transit
Transit is convenient for most trips.
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RESTAURANTS ATTRACTIONS
• Aburaya
• Battambang
• Chop Bar
• Dinner House
• Grand Lake Kitchen
• Hoppscotch
• Iron & Oak Restaurant
• La Guerrera’s
• McDonald’s
• Oakland Grill
• Parlour
• Philomena
• Quick Bite
• Senor Sisig
• Tay Ho
• Tijuana Restaurant
• Trap Kitchne
LOCAL AMENITIES
• Adventure Playgroun
• Alameda Naval Air Museum
• Cathedral Building
• Children‘s Fairyland
• Estuary Park
• Jack London‘s Cabin
• Kurt Emke
• Lake Merritt Boat Landing
• Middle Harbor Shoreline Park
• Mossword Park
• Oakland Sports Street
Art Mural
• Pacific Pinball Museum
• Pardee Home Museum
• PIER 39
• Snow Park
• The Gardens at Lake Merritt
• The Museum of Art and Digital Entertainment
BANKS
• Envision Academy of Arts & Technology
• Hoover Elementary School
• KIPP Public Schools
• Northern California
• La Escuelita Elementary School
• Lafayette Elementary School
• Lincoln Elementary School
• Next Step Learning Center
• Oakland Freedom Schools
• Oakland Public School Village Academy
• Oakland Unifed School District
• Prescott School
• Ralph J. Bunche Academy
• St Paul‘s Episcopal School
• Street AcademyAlternative School
• West Oakland Middle School
• Willow Manor School
123 ANYWHERE, ST, ANYTOWN, OAKLAND, CA | 25
1640 6TH AVE
EAST LAKE JEWEL (123) 456-7890 AGENTNAME@KW.COM AGENT NAME BROKER ASSOCIATE | DRE# 12345678 OFFERING MEMORANDUM 123 ADDRESS, OAKLAND, CA KW Commercial - Oakland DRE#: 02029039 123 ADDRESS, OAKLAND, CA