ESTABROOK - LoopNet

Offering Memorandum

ESTABROOK

35-39 Estabrook St ? San Leandro, CA 94577 1

NON-ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer

The 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 Notice

Marcus & 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.

ESTABROOK San Leandro, CA ACT ID ZAA0030196

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INVESTMENT OVERVIEW

Offering Summary Aerial Photo Floor Plans Parcel Map

FINANCIAL ANALYSIS

Rent Roll Summary Rent Roll Detail Operating Statement Notes Pricing Detail Acquisition Financing Growth Rate Projections Cash Flow

MARKET COMPARABLES

Sales Comparables Rent Comparables

MARKET OVERVIEW

Market Analysis Demographic Analysis

SECTION

01 02

03 04

TABLE OF CONTENTS

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INVESTMENT

OVERVIEW

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EXECUTIVE SUMMARY

Price Loan Amount

Loan Type Interest Rate / Amortization

Price/Unit Price/SF Number of Units Rentable Square Feet Year Built Lot Size

$4,350,000 $2,827,500 Proposed New 3.44% / 30 Years

$334,615 $415.47 13 10,470 1955

0.42 acre(s)

VITAL DATA

CAP Rate GRM Net Operating Income Net Cash Flow After Debt Service Total Return

CURRENT 4.35% 16.25

$189,153

2.49% / $37,926 6.09% / $92,746

YEAR 1 6.04% 12.44 $262,861

7.33% / $111,635 11.06% / $168,370

NUMBER OF UNITS

10

2

1

UNIT MIX

UNIT TYPE One Bedroom One Bath Two Bedroom Two Bath Three Bedroom One Bath

APPROX. SQUARE FEET

733

820

1,500

13

MAJOR EMPLOYERS

EMPLOYER Aryzta US Holdings I Corp International Paper Social Services Dept Eden Medical Center Aidells Sausage Honeywell Safeway Waste Management Costco Kaiser Permanente San Target 14766 Wash Ave Operations LLC

Total

# OF EMPLOYEES 9,500 2,000 1,191 971 900 713 705 696 630 593 554 552

10,470

DEMOGRAPHICS

2018 Estimate Pop 2010 Census Pop 2018 Estimate HH 2010 Census HH Median HH Income Per Capita Income Average HH Income

1-Miles 3-Miles 27,415 182,186 25,727 169,724 11,231 61,935 10,334 57,454

$67,768 $68,605 $40,575 $31,442 $98,421 $91,939

5-Miles 361,133 335,691 123,377 114,105 $69,270 $32,174 $93,490

OFFERING SUMMARY

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OFFERING SUMMARY INVESTMENT OVERVIEW

Marcus & Millichap is proud to present to market 35-39 Estabrook Street in San Leandro, California. The subject property is a 12-unit apartment and one single-family home on two adjoining parcels. The single-family home is three-bedroom/two-bathrooms, while the adjoining apartment is a two-story structure. The apartment has 10 one-bedroom units and two two-bedroom units. The current owner has renovated the single-family home as well as seven of the apartment units. Upgrades include new flooring, cabinetry, counters, bathrooms, and paint. Many of the units also have new appliances.

Estabrook is located in a residential area near shopping with easy access to major Freeways (880, 580). The new owner can continue the interior renovations and erode the 23 percent loss-to-lease that currently exists on the property. 35-39 Estabrook thus presents the rare opportunity for an investor to purchase a property in a great location with proven upside and strong economic fundamentals. Furthermore, the buyer will have an opportunity to turn the current laundry room into a studio apartment, as there is a laundry mat across the street. That would raise the income over $13,000 per year. Adding a unit at far below replacement cost is one of the strongest ways to add value in today's market. In addition, the single family home in the front is on a separate parcel and offers the buyer the opportunity to sell it off desperately without affecting the main 12 units. The cheapest three-bedroom/two-bath single family home in the zip code today is listed at $530,000. Such a move gives multiple exit strategies for any new owner. The city of San Leandro is located in the East San Francisco Bay Area (Alameda County, California), just south of Oakland and about 20 miles southeast of the city of San Francisco. The city has approximately 90,000 people and is just minutes from Oakland, California. Major employers in the area include Tesla, Kaiser, Alta Bates, and various large tech companies. The Median Household Income is now approaching $474,000 per year and the vacancy is 1.4 percent. The property has a Walk Score of 87, a Metro Score of 57, and a Bike Score of 71. Thus, residents can walk to pretty much everything, including schools, shopping, entertainment, mass transit, and restaurants.

Please note that California has recently passed AB 1482 which places a rent cap on most multi-family properties in the state, and all buyers should do their due diligence on the details of the new law.

INVESTMENT HIGHLIGHTS

12-Unit Apartment Building One Single-Family Three-Bedroom/Two-Bathroom House Eight Upgraded Units Great Location Near Shopping, Schools, and the Freeway Opportunity to Turn The Laundry Room into a Studio Apartment Renting at $1,250

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PROPERTY OVERVIEW

The subject property (35-39 Estabrook) is a 12-unit apartment, and one single family home on two connected, separate parcels. The property , built in 1955 is a two-story walk up style apartment complex in a great central San Leandro location. The 13 units has a mechanical security gate and fencing. Eight of the units (if you include the single family home) have had either full or substantial remodeled interiors with kitchens, bathrooms, flooring, cabinets and counters. The turned units also feature tiled floors in the bathrooms and kitchens, and vinyl plank flooring in the common areas.

The new owner will also benefit from individually metered units for PG&E to help keep costs down. In addition, there is a large value-add opportunity in turning the current laundry room into a studio apartment. Such an addition, would add a potential $1,250 per unit. Estabrook is located in one of the strongest locations in San Leandro. It is one mile from Bart, five miles to the Oakland Airport, and within walking distance of shopping, schools, and entertainment.

OFFERING SUMMARY

Common Area Amenities

Security Fencing and Electronic Gate Laundry Room On Site Parking

Unit Amenities

Eight out of 13 Units have been Renovated Individually Metered Units Renovated Interiors Include Tile Floors

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PROPERTY SUMMARY

Property Price Property Address Assessors Parcel Number

Number of Units Number of Buildings Number of Stories Year Built/Renovated Rentable Square Feet Lot Size Type of Ownership Parking Landscaping Topography

Electric Gas

Foundation Exterior Parking Surface Roof

HVAC

OFFERING SUMMARY

THE OFFERING Estabrook $4,350,000

35-39 Estabrook St, San Leandro, CA 077-0556-053-00

SITE DESCRIPTION 13 2 2

1955 10,470 0.42 acre(s) Fee Simple Asphald and Concrete Drought Tolerant

Flat UTILITIES

Individually Metered-Tenant Pays Individually Metered-Tenant pays CONSTRUCTION

Slab Stucco Asphalt Flat on 12 Units, Pitched Comp Shingle on SF Home MECHANICAL Wall Units in 12 Units, Central HVAC in House

PROPOSED FINANCING First Trust Deed Loan Amount Loan Type Interest Rate Amortization Loan Term Loan to Value Debt Coverage Ratio

$2,827,500 Proposed New

3.44% 30 Years 30 Years

65% 1.25

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