multifamily transit-oriented kearney street lofts … · 2017-08-30 · del norte bart stations,...

Offered by

Clayton Jew 415.229.8920 | [email protected] LIC # 00834308

kiddermathews.com

Multifamily Transit-Oriented Development Projects

OFFERING MEMORANDUM

10167 San Pablo Avenue

921 Kearney Street

El Cerrito, CA

AVENUE LOFTS

KEARNEY STREET LOFTS

OFFERING MEMORANDUM | El Cerrito Multifamily Transit-Oriented Development Projects

1. Executive Summary

2. Project Overviews

3. Investment Highlights

4. Location Overview

• Aerial Map

• Transportation Map

• Amenities Map

5. Market Overviews

• San Francisco Bay Area Overview

• Market Rent SurveyThe 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 Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

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. Kidder Mathews 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, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews 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.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

Disclaimer

Table of Contents

Table of Contents


The OfferingKidder Mathews (“KM”) as Exclusive Broker, is pleased to offer for purchase, or investment, two outstanding multifamily residential development projects. 10167 San Pablo Avenue and 921 Kearney Street, El Cerrito, CA (“Properties”) are located in the in the Heart of El Cerrito’s Downtown Theatre and Transit District. The Properties represent an extremely rare opportunity to invest as a Capital Partner or to acquire 100% fee simple interest and development rights to a 62-unit site and a 72-unit site unit for total of 134 units of entitlement-eminent residential projects in one of the most vibrant Transit Oriented Districts in the Bay Area. The Properties can be acquired separately as well.

The Properties are zoned Transit Oriented Mixed Use (TOHIMU) and (TOMIMU), which will allow for Multifamily development, with favorable parking parameters and inclusionary housing requirements. The Developer expects to obtain full entitlements by the December 2017.

Downtown El Cerrito is experiencing a revitalization as the Specific Plan calls for a vision of growth and expansion, particularly along the north/south thoroughfare of San Pablo Ave. The proximity to BART and other transportation makes this a superb opportunity to participate in a long-term investment.

Executive Summary

PROPERTY OVERVIEW

Permitted Use Multifamilty

Development Potential 134 Units

Estimated Completion Fully leased in 30 months

Price Contact Clayton Jew

10167 SAN PABLO AVENUE

921 KEARNEY STREET


Project Overviews

The El Cerrito Development Projects consists of two development sites located in the heart of El Cerrito’s Downtown Theatre and Transit Districts. Both sites are within walking distance to one of two BART stations in El Cerrito and retail amenities, and ideally suited for multifamily residential use. The sites are being reviewed and the developer is seeking discretionary approvals by the end of 2017. The plan proposes the development of 62 units over 6 stories and 72 units over 5 stories.

THE AVENUE LOFTS10167 SAN PABLO AVENUE

Land Size 11,114 Square feet

Existing Building Raw land

Planned Construction

Type 3 construction, 6 stories, wood frame over podium

Planned Residential

62 Multi family residential units

Planned Parking 31 Car puzzle lift system

Entitlement Approval in November 2017

Assessors/ Block Lot

510-034-003-2

Zoning District TOHIMU (Transit Oriented Mixed-Use)

Height/Bulk District

65 Foot limit (85 with state density bonus)

Occupancy Classification

TOHIMU: Flex -Flex/Commercial on ground floor -Minimum 0.5 parking/unit-Maximum 1.0 parking/unit


Project Overviews

THE KEARNEY STREET LOFTS921 KEARNY STREET

Land Size 13,364 Square feet

Existing Building Raw land

Planned Construction

Type 5 construction, 5 stories, wood frame

Planned Residential

72 multi-family residential units

Planned Parking 36 Car puzzle lift system

Entitlement Approval in December 2017

Assessors/ Block Lot

503-233-007-7503-233-032-5

Zoning District TOMIMU (Transit Oriented Mixed-Use)

Height/Bulk District

55 Foot limit (65 with state density bonuses)

Occupancy Classification

TOMIMU: -Flex/Commercial on ground floor -Minimum 0.5 parking/unit-Maximum 1.5 parking/unit


Investment Highlights

The Transit-Oriented Development Projects will be among the most highly visible residential projects delivered in an outstanding location of an established East Bay city.

TRANSIT-ORIENTED DEVELOPMENT SITES

Rare opportunity to control two residential development sites in proximity to two major BART Stations.

Discretionary approvals from a pro-growth city planning department, nearly entitled and ready for construction.

El Cerrito has no inclusionary zoning or rent control as do the surrounding cities of Richmond, Berkeley and Oakland.

DOWNTOWN EL CERRITO

The El Cerrito Development Projects are in the path of City of El Cerritos growth plans for revitalization and expansion, particularly along the major north/south thoroughfare San Pablo Avenue.

The San Pablo Avenue Specific Plan envisions a walk-able, transit-friendly corridor with a mix of residential, commercial and public uses. With emphasis on higher density, mixed-use and multi-family development.

El Cerritos housing stock is typically characterized by single-family homes, while the demand for multifamily housing is strong and expected to grow. Average rental rates have increased over 60% since 2010.

STRONG RESIDENTIAL BAY AREA MARKET

International hub for technology, medical research, robotics, bio-technology, health care, education and others.

575,000 new jobs created in the Bay Area while only 8,000 units per year are expected to be added over the next four years

Bay Area unemployment rate is under 4% which is among the lowest in the State of California.

Five year average multifamily vacancy rate around 3.8%.


NEARBY AMENITIES

El Cerritos economic development action plan emphasizes new business and housing, while keeping attention to the environment, traffic access, and pedestrian – and bicycle friendly streets.

Larger retailers in the Uptown and Downtown subareas generate over 80% of the taxable sales in El Cerrito, although the majority of the smaller retail buildings are older in construction as these building are updated they will attract higher paying quality tenants.

El Cerrito Del Norte BART station is going through an internal remodel which will accommodate more ridership due to the increase in housing and retail projects nearby.

Nearby Parks include Central Park, Fairmont Park, Creekside Park El Cerrito Community Swim Center and Casa Cerrito Recreation Center.

UNPARALLELED ACCESS AND TRANSPORTATION

The projects are ideally situated on the route of express bus service to Berkeley, Oakland and San Francisco by AC Transit providing connectivity to these major employment centers within 30 minutes at affordable fares.

Only a short 10-minute walk to a BART station, providing rail transit to downtown Berkeley in 6 to 9 minutes with its proximity to UC Berkeley’s 35,000 students and 10,000 employees, 20 minutes to Oakland and 30 minutes to San Francisco.

Each project site has a Walk Score of over 80, Very Walkable. Most errands can be accomplished on foot. The development plans call for a fleet of shared cars in the garage and free membership into the car share service will be provided for all residents.

To complement 1 bike per unit bicycle parking provided in secured racks in the garage, the plans will provide a bicycle repair station in the garage. All residents will receive a prepaid $20 Bikelink card providing dry and secure parking at most BART Stations, UC Berkeley campus and downtown Berkeley at a nominal cost.

Investment Highlights


Project LocationEl Cerrito, CA is located on the eastern shore of the San Francisco Bay and is bordered by Albany and Kensington to the south, the Richmond annex to the west, East Richmond Heights to the north, and Wildcat Canyon Regional Park to the east. The city fronts along Interstate 80 with Interstate 580 located further west. The City’s primary transportation infrastructure consists of the El Cerrito Plaza and El Cerrito Del Norte BART stations, along with several local bus lines operated by AC Transit, providing access to the surrounding area and the nearby cities of Albany, Berkeley, and Richmond. In addition to local service, El Cerrito is also served by AC Transit’s Transbay buses that provide service to the San Francisco Transbay Terminal.

El Cerrito is known for its unparalleled highway access and available public transit options. Pleasant climate, numerous parks and recreational facilities and involved residents makes this quiet East Bay city a highly desirable to live. El Cerrito residents enjoy the 80-acre tree-lined Hillside Park open space, as well as 45 acres of parks, 28 acres of school recreational area, and 38 acres of other amenities including Ohlone Greenway, a landscaped area which runs along the BART right of way the length of the city and is popular with walkers, runners and bicyclists.

Location Overview

RICHMOND

EL CERRITO

KENSINGTON

ALBANY

BERKELEY


Location Overview

Fremont

Burlingame

South San Francisco

Brisbane

Woodside

San Mateo

Hayward

Union City

Newark

Oakland

AlamedaSan Francisco

Sausalito

TiburonMill Valley

Daly City

Pacifi ca

Half Moon Bay

PACIFIC OCEAN

Berkeley OrindaLafayette Walnut Creek

Danville

San Ramon

CastroValley

Dublin Livermore

EmeryvilleMARIN

COUNTY

SAN FRANCISCO COUNTY

CONTRA COSTA COUNTY

ALAMEDACOUNTY

SANTA CLARACOUNTY

SAN MATEO COUNTY

Redwood CitySan

Carlos

Foster City

Palo Alto

Mountain View

MenloPark

El Cerrito

San FranciscoInternational Airport

OaklandInternational Airport

CITY OF EL CERRITO

Fremont

Burlingame

South San Francisco

Brisbane

San Mateo

Hayward

Union City

Newark

Oakland

AlamedaSan Francisco

Sausalito

TiburonMill Valley

Daly City

Pacifi ca

PACIFIC OCEAN

Berkeley OrindaLafayette

Walnut Creek

Concord

Pleasant Hill

Danville

San Ramon

CastroValley

Dublin Livermore

Emeryville

Martinez

Richmond

San PabloSan Rafael

MARIN COUNTY

SAN FRANCISCO COUNTY

CONTRA COSTA COUNTY

ALAMEDACOUNTY

SAN MATEO COUNTY Redwood

CitySan Carlos

Foster City

El Cerrito

San FranciscoInternational Airport

OaklandInternational Airport

CITY OF EL CERRITO


Location Overview

Central Avenue


921 KEARNEY STREET

EAST RICHMOND EL CERRITO

HILLSIDE NATURAL AREA

OHLONE GREENWAY


Location Overview

2San Pablo Ave

Pacifi c East Mall

Castro Vista Park

Fairmount Park

Moeser Lane

Shopping Center

European Auto

Center

El Cerrito

Natural Grocery

Playland Not at

the Beach


921 KEARNEY STREET


Market Overview

SAN FRANCISCO BAY AREA MARKET OVERVIEW

The San Francisco Bay Area is one of the strongest economic centers in the United States and the world. Many of the global leaders in the technology industry are either headquartered or maintain a considerable presence in the region. The sector’s giants, from Apple and Facebook to Salesforce and Uber, are a robust economic engine, driving considerable employment growth across the Bay Area, both in technology jobs and supporting industries. Since the great recession in 2009-2010, the Bay Area’s nine counties have added over 580,000 jobs, expanding the workforce from 3.38 million employees to 3.96 million, and cutting the unemployment rate to 3.1% in April 2017, well below the statewide unemployment rate of 4.8%. Venture capital investment in Bay Area companies, which peaked in the second quarter of 2016 and has eclipsed $6 billion in nine of the last 11 quarters, suggests continued growth in the region’s leading industry. While the Bay Area economy has added over 580,000 jobs over the past seven years, employment growth has severely outstripped the construction of housing, and the shortage in supply has caused prices to rise dramatically across the region. Demand is particularly strong for transit-oriented developments that allow residents to commute conveniently to the area’s economic centers without a car. The East Bay is the region’s fastest-growing area in terms of tech employment, reporting 4.1% expansion in the year ending May 2017, according to Beacon Economics, strengthening the market for housing along Alameda and Contra Costa Counties’ transit corridors.


Market Overview

ANNUAL UNEMPLOYMENT RATE: SF METRO & CASF-OAKLAND-HAYWARD METRO AREA EMPLOYMENT

VENTURE CAPITAL INVESTMENT: BAY AREABAY AREA EMPLOYMENT GROWTH

Source: Bureau of Labor StatisticsSource: Bureau of Labor Statistics

Source: PWC MoneyTree ReportSource: California EDD


Market Overview

MARKET RENT SURVEY

1

2

3

4

5

COMPARABLES

Metro 511

Village at Town Center

The Higby

Del Norte Place

The Aquatic

1

5

4

3

2

MULTIFAMILY OVERVIEW

Over the past 5 years, fueled by the real estate boom and regional growth in jobs, the El Cerrito multifamily market has outpaced expectations. Average asking rents have increased at an average rate of 7.6 percent annually since 2012 with vacancy rates also decreasing during the same time period. The investment market has also strengthened with asking prices increasing approximately 25 percent year over year since 2014.


Market Overview

Market Rent Survey

UNIT MIX # UNITS MIN SF MAX SFASKING RENT (LOW)

ASKING RENT (HIGH)

1BR/1BA 60 800 847 $2,790 $2,940

2BR/2BA 59 1,066 1,153 $3,280 $3,335

3BR/2BA 6 1,412 1,412 $4,520 $4,610

Community Amenities

158 covered parking spaces, onsite bike storage, outdoor BBQ grills

Apartment Amenities

In-unit washer and dryer, central HVAC, stainless steel appliances

Interior Finishes

Hardwood style floors, cultured marble countertops, designer cabinets

Metro 511510 El Cerrito Plaza

Units 128

Built 2017

Occupancy

Affordable 15%

1


ASKING RENT (HIGH)

1BR/1BA 74 595 880 $2,075 $2,850

2BR/1BA 1 1,095 1,095 $2,540 $3,615

2BR/2BA 78 962 1,075 $2,580 $3,675

2BR/2BA+ 6 1,025 1,150 $2,975 $3,850

Community Amenities

Fitness center, controlled access, covered parking

Apartment Amenities

In-unit washer and dryer, central heat, patios and balconies

Interior Finishes

Tile and carpet floors, vinyl countertops, wood cabinets

Village at Town Center10810 San Pablo Avenue

Units 159

Built 2007

Occupancy 94%

Affordable 15%)

2



ASKING RENT (HIGH)

1BR/1BA 57 600 745 $1,941 $2,704

2BR/1BA 5 800 883 $2,409 $2,943

2BR/2BA 73 864 920 $2,229 $3,060

Community Amenities

Fitness center, controlled access, clubhouse and business center

Apartment Amenities

In-unit washer and dryer

Interior Finishes

Tile and carpet floors, cultured marble countertops, designer cabinets

Del Norte Place11720 San Pablo Avenue

Units 135

Built 1993

Occupancy 97%

Affordable 21%)


ASKING RENT (HIGH)

STUDIO 8 503 503 $2,545 $2,825

1BR/1BA 33 695 915 $2,587 $3,100

1BR/1BA+ 30 787 787 $3,055 $3,150

2BR/1BA 6 1,012 1,030 $3,199 $3,800

2BR/2BA 19 1,155 1,155 $3,228 $4,000

3BR/2BA 2 1,345 1,416 $4,261 $5,495

Community Amenities

Fitness center, controlled access, 98 covered parking spaces, roof deck

Apartment Amenities

In-unit washer and dryer, central HVAC, patios and balconies

Interior Finishes

Hardwood style floors, cultured marble countertops, designer cabinets

The Higby3015 San Pablo Avenue

Units 98

Built 2015

Occupancy 99%

Affordable 7%

Market Overview

Market Rent Survey

3 4



ASKING RENT (HIGH)

STUDIO 4 526 526 $2,606 $2,606

1BR/1BA 46 609 808 $2,850 $3,526

2BR/2BA 8 1,052 1,116 $3,782 $4,292

Community Amenities

Fitness center, controlled access, covered parking, roof deck

Apartment Amenities

In-unit washer and dryer, central HVAC, stainless steel appliances

Interior Finishes

Hardwood style floors, quartz countertops, designer cabinets

The Aquatic2001 5th Street, Berkeley

Units 58

Built 2015

Occupancy 91%

Affordable 7%

Market Overview

Market Rent Survey

5


Clayton Jew 415.229.8920 [email protected] LIC # 00834308

Kidder Mathews101 Mission Street, Suite 2100 San Francisco, CA 94105

kiddermathews.com

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multifamily transit-oriented kearney street lofts … · 2017-08-30 · del norte bart stations,...

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