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MONARCH COURT APARTMENTS

2230 Alice Street

Santa Cruz, CA

Offering Memorandum

EXT1

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.


Santa Cruz, CA

ACT ID ZAB0010159

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Property Photos

Aerial Photos, Regional and Local Maps

Discover Santa Cruz

FINANCIAL ANALYSIS 02Rent Roll Summary

Operating Statement

Pricing Detail

MARKET COMPARABLES 03Sales Comparables

Rent Comparables

MARKET OVERVIEW 04Demographic Analysis


3

Investment Overview

2230 ALICE ST

PROPERTY SUMMARY

OFFERING SUMMARY

THE OFFERING

Price $2,400,000

Property Address 2230 Alice St, Santa Cruz, CA

Assessors Parcel Number 028-072-01

Zoning R4-M

SITE DESCRIPTION

Number of Units 6

Number of Buildings 3

Number of Stories 1 & 2 Stories

Year Built/Renovated 1955 / 2019

Rentable Square Feet 4,400

Lot Size 0.44 acre(s)

Type of Ownership Fee Simple

Landscaping New Zero-Scape

Topography Low-Hillside

CONSTRUCTION

Foundation Concrete Slab

Framing Wood Frame

Exterior Stucco

Parking Surface Freshly Slurried and Striped Asphalt

Roof TPO and Composition Shingle

5

PROPOSED FINANCING

First Trust Deed

Loan Amount $1,375,200

Loan Type Proposed New

Interest Rate 3.6%

Amortization 30 Years

Loan Term 10 Years

Loan to Value 57%

Debt Coverage Ratio 1.38

OFFERING SUMMARYINVESTMENT OVERVIEW

Nestled in the Live Oak neighborhood of Santa Cruz, between the Santa Cruz Harbor and Pleasure Point, near the Corcoran Lagoon and KSCO Radio. Monarch Court sits on a spacious corner lot just 3 blocks from Corcoran and Moe’s beaches, 3 blocks from Felt Street Park (with a large playground, community gardens, picnic/bbq area, and skateboard park), and 2 blocks from both Cypress High School and Del Mar Elementary. Within 5 miles is Cabrillo Community College offering associate degrees and certificates in more than 70 fields of study to its 15,000 students. Monarch Court is located in unincorporated Santa Cruz County, and therefore is not subject to the more restrictive local rent control, providing investors the more flexible California limits of 5% plus CPI index (3.34% currently / 8.4% annually).

Monarch Court includes (1) studio, and (5) 2 bedroom / 1 bathroom apartments that offer residents single story living in individual buildings with private entrances, large green spaces, reserved parking, spacious living and natural light. The apartment homes have been strategically designed with limited shared walls, offering residents the feel of private spacious, independent living areas and backyards for outdoor living and entertaining.

Extensive interior renovations to 3 units include new vinyl wood plank flooring, new shaker style kitchen cabinets, quartz countertops, stainless steel appliance package, new interior lighting, upgraded fixtures and finishes, new window coverings, and new custom interior paint.

Recent exterior renovations include eco-friendly landscaping with artificial grass, succulents and LED lighting. The welcoming curb appeal is enhanced by a new fence and freshly slurried asphalt driveway. Community upgrades include new secured mailboxes and a redesigned laundry care center with SMART machines.

Santa Cruz offers a unique combination peaceful serenity and the allure of a beach town, with the convenience and easy accessibility to businesses and schools. This asset is centrally located to many Santa Cruz destinations, including Seabright State Beach, Downtown Santa Cruz, Capitola, Santa Cruz Beach Boardwalk, Rio Del Mar and the Santa Cruz Harbor with hundreds of shopping, dining and entertainment options. Santa Cruz Harbor is home to Stagnaros Charter Boats, the ever-popular Chardonnay Sailing Charters with its pair of Santa Cruz 70 sailing yachts and the iconic Crow's Nest. Santa Cruz dining destinations for more than 50 years, The Crows Nest is perched where the harbor meets the sea and offers award-winning cuisine, spirits and live music, coupled with unbeatable, breathtaking panoramic views of Santa Cruz Harbor, lighthouse and Wharf; and Shadowbrook, located along the Soquel Creek and steeped in history.

Exciting area improvements include the Santa Cruz Rail & Trail, a continuous off-street route to many popular locations between Watsonville and Davenport. The already-completed transformation to the San Lorenzo River Bridge replacing the current 4-foot wide walkway with a 10-foot wide multi-use trail, provides miles of direct bike/pedestrian access between the Santa Cruz Beach Boardwalk and Santa Cruz neighborhoods.

INVESTMENT HIGHLIGHTS

▪ 3 blocks from the ocean

▪ Immediate upside in rental income

▪ Appealing unit mix consisting of (5) 2br/1ba and (1) Studio

▪ Large corner lot .44 acre

▪ Tucked-under parking for on-site tenants

▪ On-Site laundry facility providing additional income


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Palo Alto Med Fndtion STA Cruz 2,000

Dignity Health 1,512

Chancellors Office 1,500

Santa Cruz County of 1,041

CABRILLO COLLEGE BOOKSTORE 980

Sutter Health 776

Kwala Tzu Inc 700

Human Services Department 516

Human Resources 500

Smartrevenue 492

Safeway 455

University Cal Santa Cruz 437

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 18,200 81,051 126,209

2010 Census Pop 17,538 77,791 120,220

2018 Estimate HH 7,850 34,371 50,329

2010 Census HH 7,466 32,654 47,786

Median HH Income $60,064 $63,858 $74,657

Per Capita Income $40,185 $42,523 $44,599

Average HH Income $92,579 $98,715 $109,340

7

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

1 Studio 400

5 2 Bedroom 600

6 Total 3,400

VITAL DATA

Price $2,400,000 CURRENT YEAR 1

Down Payment 42.7% / $1,024,800 CAP Rate 4.3% 4.59%

Loan Amount $1,375,200 GRM 15.06 14.34

Loan Type Proposed NewNet Operating Income

$103,168 $110,221

Interest Rate / Amortization 3.6% / 30 YearsNet Cash Flow After Debt Service

2.75% / $28,140 3.43% / $35,193

Price/Unit $400,000 Total Return 5.29% / $54,164 6.07% / $62,169

Price/SF $705.88

Number of Units 6

Rentable Square Feet 3,400

Year Built / Renovated 1955 / 2020

Lot Size 0.44 acre(s)

DETAILED CAPITAL IMPROVEMENTSOFFERING SUMMARY

Exterior

Replaced studio roof $4,500

Electrical: Panel upgrade 2234 A/B/C, rewired exterior house lights, carports, laundry room and upgraded all exterior lights to LED

$5,000

Asphalt repairs, slurry and seal coat $12,650

Wood repairs – new fence on Corcoran Avenue, siding repairs $12,550

Zero-Scape Landscape upgrades – tree trimming, drip system in front yard, succulents and artificial lawn

$12,500

Replaced both decks for unit 2234A. Replaced railings for entire property. $17,025

Laundry room upgrades - WASH vendor installed new SMART machines $1,000

New exterior paint $13,000

Replaced 2 electric hot water heaters with new gas water heaters: Unit 2236, and shared heater for units 2234 A/B

$4,000

Additional property maintenance $13,200

TOTAL CAPITAL IMPROVEMENTS $108,105

Since 2019, Monarch Court Apartments have received the following upgrades:

Interior

Unit Renovation (3 of 6 units) $29,880

Unit 2234A: New kitchen cabinets, quartz countertops, new stainless appliances, plank flooring, LED lighting, hardware, window coverings

Unit 2234B: New cabinet doors, quartz countertops, new stainless appliances, plank flooring, LED lighting, hardware, window covering

Unit 2236: New cabinet doors, quartz countertops, new stainless appliances, plank flooring, LED lighting, hardware, window coverings

Residents of Monarch Court appreciate the best

of both worlds ~

The peaceful serenity and allure of a beach town,

while providing the convenience and easy

accessibility to business.

Located in a quiet residential pocket

Monarch Court2230 Alice Street

Santa Cruz, CA 95062

AERIAL PHOTO

2230 ALICE ST

10

2236

2234C2234B

2234A

2232

2230

2234A:2 new decks, new exterior railings, new gas hot water heater, full interior unit renovation

2234B:New gas hot water heater, full interior unit renovation

2234C:New roof

2236:New gas hot water heater, full interior unit renovation

2230 ALICE ST

11

AERIAL PHOTO

Noah’s Ark Preschool & DaycareDel Mar Elementary School

Cypress High School



Fell Street County

Park

AERIAL PHOTO

Santa Cruz Beach Boardwalk and Pier –

3 miles



Corcoran LagoonMoe’s Beach

REGIONAL MAP


12

LOCAL MAP


13

Discover Santa Cruz

Discover Santa CruzMonarch Court is 3 block from the

ocean, and just minutes from the Santa Cruz Boardwalk and Wharf, Downtown Santa Cruz/Pacific Avenue Mall, and the

iconic Catalyst Nightclub.

Santa Cruz – Area Overview

Offering a surplus of lifestyle amenities and located just 25 miles from Silicon Valley’s thriving employment base, Sant Cruz represents a highly sought-after place for Bay Area residents to call home. The city’s diverse and growing local economy, vibrant downtown district, surplus of recreation options, and favorable climate offer residents a superior quality of life. Santa Cruz has consistently ranked as one of the top 10 happiest places to live in the U.S. by publications and polling sources such as National Geographic, Forbes, and Gallup.

Santa Cruz boasts an eclectic employment base with a healthy balance of technology, healthcare, professional and business services, government, education, and biotechnology industries. The active and emerging tech scene in Santa Cruz has attracted both startups and more established tech companies, as well as tech investors, co-working programs and events.

Located just over 2 miles from Monarch Court, UC Santa Cruz is the city’s largest employer. Total enrollment at UCSC has grown by 13.4 percent over the past five years, now totaling approximately 18,765 students. The student population us expected to continue to increase with another 10,000 students by 2040. This growth, combined with a lack of new housing inventory, will continue to suppress vacancies and support rent growth at rental communities throughout Santa Cruz.

TOP 20 EMPLOYERS BY NUMBER OF EMPLOYEES

# COMPANY CITY EMPLOYEES DISTANCE

1 Google Mountain View 23324 39

2 eBay San Jose 16200 36.4

3 Apple Park (HQ) Cupertino 16000 33.8

4 University of California – Santa Cruz Santa Cruz 8569 2.4

5 Applied Materials Santa Clara 8500 33.9

6 Intel Santa Clara 7801 37.2

7 Lockheed Martin Santa Cruz 5600 19.2

8 Santa Clara Valley Medical Center San Jose 4000 28.8

9 Agilent Technologies Santa Clara 3280 29.7

10 San Jose State University San Jose 3251 33

11 LinkedIn Mountain View 3177 37.4

12 Advanced Micro Devices Santa Clara 3100 33.8

13 Hitachi Vanrtara Santa Clara 3000 33

14 PayPal San Jose 3000 34.4

15 Western Digital San Jose 3000 35.1

16 Adobe Systems San Jose 2750 32.5

17 County of Santa Cruz Santa Cruz 2438 1.4

18 Ericsson Inc. Santa Clara 2200 34

19 Good Samaritan Hospital San Jose 1950 25.1

20 Netflix Los Gatos 1864 24.7

MAJOR REGIONAL EMPLOYERS – RANKED BY DISTANCE FROM ASSET

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of theinformation. References to square footage orage are approximate. Buyer mustverify the information and bears all risk for any inaccuracies.

# COMPANY CITY EMPLOYEES DISTANCE

1 Looker Santa Cruz 209 .9

2 Amazon Santa Cruz 100 1.0

3 County of Santa Cruz Santa Cruz 2438* 1.4

4 Poly (Formerly Plantronics)

Santa Cruz 529 2.0

5 University of California –Santa Cruz

Santa Cruz 8569 2.4

6 City of Santa Cruz Santa Cruz 1000 2.5

7 Dominican Hospital Santa Cruz 1500 3.8

8 Northrop Grumman Sunnyvale 1226* 5.8

9 Threshold Enterprises Scotts Valley

515 7.6

10 Cabrillo College Aptos 1500 8.1

11 Lockheed Martin Santa Cruz 5600 19.2

12 Netflix Los Gatos 1864 24.7

13 Good Samaritan Hospital San Jose 1950 25.1

14 Barracuda Networks Campbell 350 25.3

15 Xilinx Inc. San Jose 1000 25.8

16 SAAMA Technologies Campbell 274 27.2

17 Santa Clara Valley Medical Center

San Jose 4000 28.8

18 Agilent Technologies Santa Clara

3280 29.7

# COMPANY CITY EMPLOYEES

DISTANCE

19 Seagate Cupertino 750 31.1

20 Pricewaterhouse Coopers

San Jose 700 32.0

21 Santa Clara University Santa Clara 1200 32.0

22 Adobe Systems San Jose 2750 32.5

23 NVIDIA Santa Clara 850 32.8

24 San Jose State University

San Jose 3251 33.0

25 Hitachi Vanrtara Santa Clara 3000* 33.0

26 Atmel Corporation San Jose 1311 33.3

27 Apple Park (HQ) Cupertino 16000* 33.8

28 Advanced Micro Devices

Santa Clara 3100* 33.8

29 Applied Materials Santa Clara 8500* 33.9

30 Ericsson Inc. Santa Clara 2200 34.0

31 PayPal San Jose 3000 34.4

32 Western Digital San Jose 3000 35.1

33 eBay San Jose 16200* 36.4

34 Intel Santa Clara 7801* 37.2

35 LinkedIn Mountain View 3177 37.4

36 Google Mountain View 23324 39.0* Denotes employees at multiple metro locations in the immediate counties

124-206 1st Street ~ Santa Cruz124-206 1st Street ~ Santa Cruz

124-206 1st Street ~ Santa Cruz

Financial Analysis

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

18

FINANCIAL ANALYSIS


OPERATING STATEMENT

19

FINANCIAL ANALYSIS


PRICING DETAIL

20

Market Comparables


SALES COMPARABLES MAP

22


(SUBJECT)

708 Riverside Avenue

Pacific View Apartments

2651 Fresno Street

101 Douglas Drive

131 Alhambra

SALES COMPARABLES

ON MARKET COMPARABLES

1

2

3

4

5

PROPERTY NAMEMONARCH COURT APARTMENTS

SALES COMPARABLES

23

SALES COMPARABLES

Avg. $479.38

Avg. $729.59

$0.00

$80.00

$160.00

$240.00

$320.00

$400.00

$480.00

$560.00

$640.00

$720.00

$800.00

MonarchCourt

Apartments

708RiversideAvenue

PacificView

Apartments

2651 FresnoStreet

101 DouglasDrive

131Alhambra

Average Price Per Square Foot

Avg. $347,625

Avg. $457,143

$0

$60,000

$120,000

$180,000

$240,000

$300,000

$360,000

$420,000

$480,000

$540,000

$600,000

MonarchCourt

Apartments

708RiversideAvenue

PacificView

Apartments

2651 FresnoStreet

101 DouglasDrive

131Alhambra

Average Price Per Unit

Avg. 12.78

Avg. .00

0.00

1.70

3.40

5.10

6.80

8.50

10.20

11.90

13.60

15.30

17.00

MonarchCourt

Apartments

708RiversideAvenue

PacificView

Apartments

2651 FresnoStreet

101 DouglasDrive

131Alhambra

Average GRM

Avg. 4.79%

Avg. 4.25%

0.0

0.6

1.2

1.8

2.4

3.0

3.6

4.2

4.8

5.4

6.0

MonarchCourt

Apartments

708RiversideAvenue

PacificView

Apartments

2651 FresnoStreet

101 DouglasDrive

131Alhambra

Average Cap Rate

SALES COMPARABLES

ON MARKET COMPARABLES

SALES COMPS AVG

ON MARKET COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


24

SALES COMPARABLES ON MARKET COMPARABLES

Units Unit Type

Offering Price: $2,400,000 1 Studio

Price/Unit: $400,000 5 2 Bdr

Price/SF: $705.88

CAP Rate: 4.30%

GRM: 15.06

Total No. of Units: 6

Year Built: 1955

Underwriting Criteria

Income $157,143 Expenses $53,975

NOI $103,168 Vacancy ($5,577)

MONARCH COURT APARTMENTS2230 Alice St, Santa Cruz, CA, 95062

1

Units Unit Type

Close Of Escrow: 1/2/2020 2 1 Bdr 1 Bath

Sales Price: $1,325,000 2 2 Bdr 1 Bath

Price/Unit: $331,250

Price/SF: $444.63

CAP Rate: 4.42%

GRM: 13.80


Year Built: 1925

708 RIVERSIDE AVENUE708 Riverside Avenue, Santa Cruz, CA, 95060

Units Unit Type

Close Of Escrow: 12/23/2019 6 Studio 1 Bath

Sales Price: $4,125,000 7 1 Bdr 1 Bath

Price/Unit: $275,000 2 2 Bdr 1 Bath

Price/SF: $554.21

CAP Rate: 5.38%

GRM: 11.20


Year Built: 1926

2

PACIFIC VIEW APARTMENTS81 Front Street, Santa Cruz, CA, 95060

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


25

SALES COMPARABLES ON MARKET COMPARABLES

Units Unit Type


Sales Price: $4,450,000


Price/SF: $668.57

CAP Rate: 5.37%

GRM: 14.22


Year Built: 1970

3

2651 FRESNO STREET2651 Fresno Street, Santa Cruz, CA, 95062

4

Units Unit Type


Sales Price: $2,280,000


Price/SF: $250.11

CAP Rate: 4.00%

GRM: 11.88


Year Built: 1980

101 DOUGLAS DRIVE101 Douglas Drive, Soquel, CA, 95073

Units Unit Type

On Market 4 1 Bdr Bath

List Price: $3,200,000 3 2 Bdr Bath


Price/SF: $729.59

CAP Rate: 4.25%


Year Built: 1950

5

131 ALHAMBRA131 Alhambra, Santa Cruz, CA, 95062

8


RENT COMPARABLES MAP


(SUBJECT)

405 Plum Street

850 Park Avenue

1925 46th Avenue

108 2nd Street4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

26

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


27

rentpropertyname1rentpropertyaddress1

Unit Type Units SF Rent Rent/SF

Studio 1 400 $1,694 $4.24

2 Bdr 5 600 $2,317 $3.86

Total/Avg. 6 567 $2,213 $3.91

MONARCH COURT APARTMENTS2230 Alice St, Santa Cruz, CA, 95062

1


2 Bdr 1 Bath 950 $2,400 $2.53

Total/Avg. $2,400

405 PLUM STREET405 Plum Street, Capitola, CA, 95010

2


2 Bdr 2 Bath $3,100

Total/Avg. $3,100

850 PARK AVENUE850 Park Avenue, Capitola, CA, 95010

3


2 Bdr 1 Bath 874 $2,200 $2.52

Total/Avg. $2,200

1925 46TH AVENUE1925 46th Avenue, Capitola, CA, 95010

4


Studio 230 $1,575 $6.85

Total/Avg. $1,575

108 2ND STREET108 2nd Street, Santa Cruz, CA, 95060

Market Overview

SAN JOSEOVERVIEW

1

Known to the world as Silicon Valley, the San Jose metro is located at the

southern end of the San Francisco Bay and encompasses Santa Clara and

San Benito counties. A large portion of the area’s 1,315 square miles is

unincorporated ranch and farmland.

The metro contains roughly 2 million inhabitants and more than half of the

region’s residents reside in the city of San Jose. It is the metro’s largest city

with more than 1 million residents, followed by Sunnyvale and Santa Clara.

Venture capital funds received in the 1990s helped to turn the area into the

world’s most prominent technology hub, a distinction that remains today.

MARKET OVERVIEW

METRO HIGHLIGHTS

PREMIER HIGH-TECH CENTER

Silicon Valley’s dense concentration of high-tech

jobs is world renowned, attracting a variety of large

employers and startups.

HIGH INCOMES

Well-paying jobs in the tech sector contribute to a

median annual household income level that is

almost double the U.S. median.

HIGHLY EDUCATED WORKFORCE

Nearly half of all residents age 25 and older have

obtained at least a bachelor’s degree, well above

the U.S. average.


ECONOMY▪ The San Jose employment base contains more than 1.1 million workers, ranking the metro

as one of the 30 largest job markets in the nation.

▪ There are 18 Fortune 500 companies headquartered in San Jose, including Intel, Cisco

Systems, Apple Inc., eBay and Alphabet.

▪ The area’s many institutions of higher learning, including Stanford, San Jose State and

Santa Clara University, support these companies by graduating thousands of engineering

and computer science students each year.

MAJOR AREA EMPLOYERS

Cisco Systems

County of Santa Clara

Adobe Systems Inc.

Hewlett-Packard Co.

City of San Jose

Intel Corp.

eBay

U.S. Veterans Medical Center

San Jose State University

Apple* Forecast

2


SHARE OF 2019 TOTAL EMPLOYMENT

MANUFACTURING

16%GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

2%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

12%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

9%INFORMATION

21%

4%

9% 9% 3%

15%

MONARCH COURT APARTMENTSPROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

▪ The metro is expected to add approximately 107,300 people through 2024 and during

this time more than 41,000 households will be formed.

▪ High home prices contribute to a homeownership rate of 56 percent, which is below

the national rate of 57 percent.

▪ Roughly 48 percent of residents age 25 and older hold a bachelor’s degree, including

22 percent who have also obtained a graduate or professional degree.

The San Jose metro has an enviable combination of major universities that produce a

highly educated workforce, cutting-edge firms and exceptional affluence. Residents can

visit a plethora of museums, including the San Jose Museum of Art and the Tech Museum

of Innovation. Santa Clara County is home to performing arts companies and hosts the San

Jose Jazz Festival. The San Francisco 49ers play their home games at Levi’s Stadium and

the San Jose Sharks hockey team plays at the SAP Center. Other sports venues include

Excite Ballpark and Stevens Stadium. The metro is minutes away from San Francisco and

some of the world’s finest wine-producing regions, notably the Napa, Sonoma and

Alexander valleys.

QUALITY OF LIFE

3

* Forecast

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

Analytics; U.S. Census Bureau


2019 Population by Age

0-4 YEARS

6%5-19 YEARS

19%20-24 YEARS

6%25-44 YEARS

30%45-64 YEARS

26%65+ YEARS

13%

37.1

2019MEDIAN AGE:

U.S. Median:

38.1

$121,300

2019 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$60,800

2M

2019POPULATION:

Growth2019-2024*:

5.4%

694K

2019HOUSEHOLDS:

5.9%

Growth2019-2024*:


MARKETING TEAM


DEMOGRAPHICS


32

SAN JOSE METRO AREA

Transit Networks Increasingly Key for

Development and Investment Strategies

Mountain View captivating builders, driving development to record high. Apartment construction will be

abundant this year as 5,500 units are slated for delivery — the highest total this millennium. Northern sections

of Sunnyvale will get much-needed supply amid sub-3 percent vacancy, while downtown San Jose will also

witness significant development as builders focus on areas that align with public transit routes. Mountain View

will post the strongest supply growth, adding more than 1,500 units, as developers seek to keep pace with the

steady job creation of nearby tech firms. The influx of supply will outstrip the expected absorption of 4,600

apartments, putting short-term pressure on marketwide vacancy as it’s pushed to the low-4 percent range.

Some areas such as East San Jose will retain limited apartment availability, keeping local rent growth among

the strongest in the market. Over the past five years, the average effective rent in East San Jose has risen 29

percent, the most of any submarket within the metro.

Favorable yields bringing investors to urban San Jose. Local buyers remain a key component of

investment activity as they home in on many of the area’s Class C assets, seeking properties with upside

potential. Assets throughout Los Altos and Palo Alto in the five- to 10-unit range will remain highly targeted

this year, fueled by the vigorous rental demand from nearby employment hubs, in addition to consistently

robust rent growth. Downtown San Jose will also attract these investors as this part of market offers

comparatively affordable entry costs and average returns in the mid-4 percent band, up to 50 basis points

above the market average. While local interest should remain stable, out-of-state buyers will continue to

arrive in San Jose, particularly institutional groups. In recent months, investors from the East Coast directed

their focus to the area’s larger Class B complexes along the Caltrain line in southern sections of the market,

purchasing units for roughly $420,000 per door.

* Estimate; ** Forecast

Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.


MARKETING TEAM


DEMOGRAPHICSCreated on February 2020


SAN JOSE METRO AREA

2020 Market Forecast

Job creation will remain diverse this year, with organizations adding 20,000

new employees.

Development will further accelerate following the completion of 2,700 units

last year and 1,400 apartments in 2018.

Elevated development will place pressure on market vacancy, driving it up to

4.3 percent. The rate decreased each of the previous three years by a total

of 80 basis points.

Coming off a 6.4 percent boost last year, the market’s rent growth will remain

stable in 2020 as the average effective rent rises to $3,080 per month.

Smaller Class C assets with value-add potential near major employers will

remain sought after by investors, strengthening bidding climates and putting

additional pressure on cap rates.

* Estimate; ** Forecast

Sources: CoStar Group, Inc.; RealPage, Inc.; Real Capital Analytics

Employment

up 1.7%

Construction

5,500 units

Vacancy

up 40 bps

Rent

up 3.3%

Investment

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICSCreated on February 2020

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2019 Experian

Created on February 2020

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Population 18,376 82,601 129,105

▪ 2018 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2018 Estimate 11,194 90,217 160,503

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Households 7,949 35,311 51,852

▪ 2018 Estimate


Average (Mean) Household Size 2.28 2.27 2.32

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 1.26% 2.73% 3.03%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2023 Projection 7,949 35,311 51,852

2018 Estimate 8,525 36,395 53,448

Owner Occupied 3,883 15,600 25,821

Renter Occupied 3,967 18,771 24,509

Vacant 674 2,024 3,118

▪ Persons In Units

2018 Estimate Total Occupied Units 7,850 34,371 50,329

1 Person Units 34.83% 35.50% 33.12%

2 Person Units 32.79% 32.64% 33.46%

3 Person Units 14.97% 14.44% 15.06%

4 Person Units 10.43% 10.28% 11.09%

5 Person Units 4.04% 4.04% 4.18%

6+ Person Units 2.96% 3.10% 3.08%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2018 Estimate

$200,000 or More 7.50% 9.32% 11.24%

$150,000 - $199,000 7.05% 6.99% 8.41%

$100,000 - $149,000 16.12% 15.14% 16.70%

$75,000 - $99,999 11.79% 12.87% 13.48%

$50,000 - $74,999 16.32% 14.91% 13.97%

$35,000 - $49,999 11.94% 10.50% 9.45%

$25,000 - $34,999 7.97% 8.17% 7.36%

$15,000 - $24,999 9.91% 9.50% 8.64%

Under $15,000 11.38% 12.61% 10.75%

Average Household Income $92,579 $98,715 $109,340

Median Household Income $60,064 $63,858 $74,657

Per Capita Income $40,185 $42,523 $44,599

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2018 Estimate Total Population 18,200 81,051 126,209

Under 20 20.04% 18.88% 20.95%

20 to 34 Years 23.89% 26.57% 25.68%

35 to 39 Years 7.42% 6.93% 6.09%

40 to 49 Years 13.60% 12.78% 11.88%

50 to 64 Years 20.66% 20.36% 20.19%

Age 65+ 14.39% 14.48% 15.21%

Median Age 39.06 38.25 37.75

▪ Population 25+ by Education Level

2018 Estimate Population Age 25+ 13,021 56,221 83,829

Elementary (0-8) 4.39% 4.07% 3.12%

Some High School (9-11) 5.40% 4.90% 4.09%

High School Graduate (12) 15.38% 15.42% 14.43%

Some College (13-15) 27.02% 25.02% 24.67%

Associate Degree Only 9.27% 9.22% 9.30%

Bachelors Degree Only 23.55% 24.35% 25.63%

Graduate Degree 13.82% 16.31% 18.14%

▪ Population by Gender

2018 Estimate Total Population 18,200 81,051 126,209

Male Population 49.08% 49.51% 49.11%

Female Population 50.92% 50.49% 50.89%

34

Income

In 2019, the median household income for your selected geography is

$92,821, compare this to the US average which is currently $58,754.

The median household income for your area has changed by 45.63%

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

area will be $107,066 five years from now, which represents a change

of 15.35% from the current year.

The current year per capita income in your area is $49,529, compare

this to the US average, which is $32,356. The current year average

household income in your area is $137,726, compare this to the US

average which is $84,609.

Population

In 2019, the population in your selected geography is 410,979. The

population has changed by 7.62% since 2000. It is estimated that the

population in your area will be 415,546.00 five years from now, which

represents a change of 1.11% from the current year. The current

population is 49.69% male and 50.31% female. The median age of the

population in your area is 39.74, compare this to the US average

which is 37.95. The population density in your area is 326.79 people

per square mile.

Households

There are currently 145,855 households in your selected geography.

The number of households has changed by 8.93% since 2000. It is

estimated that the number of households in your area will be 149,427

five years from now, which represents a change of 2.45% from the

current year. The average household size in your area is 2.68

persons.

Employment

In 2019, there are 153,481 employees in your selected area, this is

also known as the daytime population. The 2000 Census revealed that

67.96% of employees are employed in white-collar occupations in this

geography, and 32.07% are employed in blue-collar occupations. In

2019, unemployment in this area is 6.06%. In 2000, the average time

traveled to work was 29.00 minutes.

Race and Ethnicity

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

69.11% White, 1.06% Black, 0.17% Native American and 8.58%

Asian/Pacific Islander. Compare these to US averages which are:

70.20% White, 12.89% Black, 0.19% Native American and 5.59%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 30.58% of the current year

population in your selected area. Compare this to the US average of

18.01%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $746,649 in 2019,

compare this to the US average of $201,842. In 2000, there were

87,537 owner occupied housing units in your area and there were

46,358 renter occupied housing units in your area. The median rent at

the time was $890.

Source: © 2019 Experian

DEMOGRAPHICS

35

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DEMOGRAPHICS

36

Exclusively Listed by

Monarch Court Apartments

2230 Alice Street


Eduardo CernaSen ior Manag ing Director Inves tmentsSen ior Director , nat iona l Mul t i Hous ing GroupEd.Cerna@MarcusMi l l i chap.com

2230 ALICE ST

38

AERIAL PHOTO

Santa Cruz Beach Boardwalk and Pier – 3 miles



Corcoran LagoonMoe’s Beach

2230 ALICE ST

39

Noah’s Ark Preschool & DaycareDel Mar Elementary School

Cypress High School



Fell Street County

Park

AERIAL PHOTO

2230 ALICE ST

40

ext1 - images1.loopnet.com€¦ · extensive interior renovations to 3 units include new vinyl wood...

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