PASO ROBLES APTS - Voit Real Estate Services

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PASO ROBLES APTS - Voit Real Estate Services

Investment Opportunity

paso robles apts

4812 pasa robles drive | sacramento, CA | 95841

Sale Price $910,000 Price Reduction!

cap rate 9.17%

Highlights

• 14 Units (2 bedroom / 1 bath)

• Swimming pool

• Well-manicured grounds

• Limited supply of land available for

new apartment construction

Motivated Seller

Contact Us

gary gallelli, e.v.p.

Director Investment Sales

dre lic 01099383

gary.gallelli@gallellivoitco.com

rod ballinger

Assistant Vice President

dre lic 01279441

rodney.ballinger@gallellivoitco.com

2237 Douglas Blvd., Suite 100

Roseville, CA 95661

T 916 784 2700 / F 916 784 2098

www.gallellivoitco.com


Paso Robles Apartments | Sacramento, CA

Overview

Paso Robles Apartments are located in the City of

Sacramento. Paso Robles is located in a well established,

mature neighborhood with very little developable

land available. The property is located off Interstate

Highway 80 near the Madison Avenue exit. Within

walking distance is the American River Junior College

and big box retailers such as Target and Lowe’s home

improvement store.

Paso Robles features many amenities that smaller

complexes do not offer, including a community

swimming pool and on-site parking. All units are

desirable two bedroom one bath units that currently

rent for $740 per month. The property has been

extremely well maintained with the intention to hold

long term. Many capital improvements have been

made to the property including new roofs in 2006.

The property is located on Pasa Robles Drive in a quiet

neighborhood between Madison Avenue and Auburn

Boulevard. Paso Robles Apartments is in the San Juan

Unified School District, one of the better performing

school districts in the state of California.

With the current state of the economy, the units

at Paso Robles have become very desirable as many

renters seek two bedroom units to share with other

renters to save money. The units are very close to

American River Junior College and are ideal for students

that are seeking a roommate to share costs.

The Sacramento apartment market is poised for an

increase in rents coupled with a decline in vacancy

rates, as we come out of the recession, which many

economists are predicting by the later half of 2011.

Property Profile

Suggested price........................................ $910,000

CAP RATE...................................................... 9.17%

UNITS............................................................. 14

Price / unit.................................................... $65,000

psf..................................................................... $86.67

Land area (acres)..................................... 0.63

Year built...................................................... 1965

2nd Quarter 2010 rents dropped by 2.5% year over year.

Investors who are prepared to hold for 5 or more years

can expect to recoup this drop in rental rates if they

are prepared to ride out the recession. Once California

comes out of the recession, companies begin hiring

again, and inflation kicks in, rents may see double

digit increase in 2012 and 2013. Sacramento is expected

to see an influx of lost residents who cannot afford to

live in the pricey Bay Area. With the recent struggles

and job losses at many financial institutions that are

heavily based in San Francisco, those workers that

have lost their jobs may find the affordability of

Sacramento attractive. Sacramento is still a very

affordable alternative for Bay Area residents and the

Sacramento MSA is expecting positive migration from

this area. Sacramento’s affordability index is back to

late 1990’s levels. We can expect to see an influx of

residents from the Bay Area similar to what happened

right after the dot com bubble burst. This also, will

contribute to the Sacramento area experiencing above

normal increases in rents in coming years.

Those investors that capitalize on today’s pricing which

reflects a discount for the deflated national economy,

high unemployment rate, and foreclosure/depressed

housing market, should gain if they intend to hold

for the long term. The economic rebound, positive

employment, and stabilized housing market that

should bring us out of the recession, should also bode

very well to boost multi-residential fundamentals and

above normal rent growth.


Paso Robles Apartments | Sacramento, CA

Pro Forma

PASO ROBLES APARTMENTS

4812 PASAROBLES DRIVE

SACRAMENTO, CALIFORNIA

NEW PROPERTY FINANCING

Suggested Purchase Price $910,000 New Loan 637,000

Price/Unit $65,000 Loan to Value 70.00%

Price/Square Foot $86.67 Fixed Interest Rate 5.50%

Date Constructed 1965 Years Amortized 30

Acres 0.63 Annual Debt Service 43,402

Units/Acre 22.40 Cost of New Loan 6,370

UNIT MIX AND AVERAGE ASKING RENTS AS OF 10/10/10

Type Units Sq Ft Area Monthly Rent Rent/SqFt Sched Income

2Bed/1Bath 14 750 10,500 $740.00 $0.99 $10,360

Total/Average 14 750 10,500 $740.00 $0.99 $10,360

EXPENSE BREAKDOWN

ANNUALIZED CURRENT INCOME

Voit Real Estate Services Estimated Expenses

VOIT REAL ESTATE SERVICES ESTIMATED EXPENSES

Property Per Unit Annualized June 10, 2010 Average Asking Rents 124,320

Payroll 4,900 350 Estimated Other Income 7,800

Utilities 11,949 854 Estimated Gross Scheduled Income (GSI) 132,120

Turnover Cost 1,050 75 Vacancy Allowance 5.00% (6,606)

Maintenance 7,000 500 Effective Gross Income 125,514

Administration 1,050 75 Colliers Estimated Operating Expenses (32,249)

Insurance 2,800 200 Projected Property Taxes (9,836)

Replacement Reserve 2,800 200 Net Operating Income 83,429

Expenses 31,549 2,254 Cap Rate 9.17%

Projected Property Taxes 9,836 703

Total Expenses 41,385 2,956

BUSINESS

C A L I F O R N I A

80

The information set forth herein has been received by us from sources we believe to be reliable, but we have made no independent investigations of the accuracy or

completeness of the information and make no representation with respect thereto. The above is submitted subject to errors, prior sale or lease, change in status,

or withdrawal without notice. It is expected that the prospective purchaser will conduct its own independent investigation concerning the Property.

Site


Paso Robles Apartments | Sacramento, CA

Sale Comparables 2009/2010

SALE COMPARABLES 2009/2010

PROPERTY PRICE # OF UNITS PRICE PER UNIT PRICE PSF YEAR BUILT SALE DATE

Subject

Paso Robles Apartments $910,000 14 $65,000 $86.67 1965 NA

4812 Pasa Robles Drive

Sacramento, CA

1 Cottage Way $805,000 10 $80,500 $85.37 1976 05/01/2009

2400 Cottage Way

Sacramento, CA

2 Greenwood Place $2,095,000 22 $95,227 $81.52 1985 01/08/2010

2584 Greenwood Ln

Cameron Park, CA

3 5481 Carlson Dr $825,000 10 $82,500 $128.91 1955 08/03/2009

Sacramento, CA

4 8179-8725 Fair Oaks Blvd $670,000 9 $74,444 $104.69 1964 11/23/2009

Carmichael, CA

5 402 Carroll Ave $1,279,000 12 $106,583 $133.23 NA 01/13/2010

Sacramento, CA

6 3604 Whitney Ave $650,000 8 $81,250 $58.02 1954 08/17/2009

Sacramento, CA

7 5034 Manzanita Ave $680,000 7 $97,143 $92.52 1978 09/15/2009

Carmichael, CA

8 Pacific Pines $1,200,000 15 $80,000 $73.85 1989 05/15/2009

920-928 Pacific St

Placerville, CA

Contact Us

gary gallelli, e.v.p.

Director Investment Sales

dre lic 01099383

gary.gallelli@gallellivoitco.com

rod ballinger

Assistant Vice President

dre lic 01279441

rodney.ballinger@gallellivoitco.com

The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee

it. ©2010 Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions. is a trademark of Voit Real Estate Services. 10/18/10

www.gallellivoitco.com

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