palo alto mixed use investment for sale - loopnet

3261 ASH STREET, PALO ALTO

OFFERING MEMORANDUM


Brian Henry 650.688.8507 [email protected] CA RE License #01385537

Steve Henry 650.473.4763 [email protected] CA RE License #01342975

Patrick Dewitt 650.688.8546 [email protected] CA RE License #02055837

245 Lytton Avenue, Suite 150, Palo Alto, CA 94301

Palo Alto Mixed Use Investment For Sale


OFFERING MEMORANDUM

DISCLAIMER

This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the pro-spective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request of in-terested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole dis-cretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Of-fering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Sell-er, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Pur-chaser thereunder.

This Memorandum and the contents, except such infor-mation which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not for-ward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confi-dentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.


OFFERING MEMORANDUM

Newmark Knight Frank and ARA Newmark as exclusive listing agents, are pleased to offer the opportunity to acquire a 100% fee simple interest in 3261 Ash Street, Palo Alto.

The subject property is ±4,407 square feet, and is currently 100% leased. The subject property consists of two separate luxury ”live/work“ apartments, a commercial kitchen, as well as 11 storage units and 2 private garages. Ideally located in central Palo Alto, the property is walking distance to all of the amenities on California Avenue, including Caltrain. The property also benefits from having easy access to Highway 101 and Interstate 280. Additionally, the property consists of a diversified rent roll, given the residential units, the commercial component (kitchen), and the storage units.

Palo Alto, with its desirable location near Stanford University, as well as its proximity to Sand Hill Road, is home to some of the largest and most important companies in the world, most notably Tesla, Uber, HP, Houzz, Robinhood, VMWare, Nest, SAP and many more.

EXECUTIVE SUMMARY


OFFERING MEMORANDUM


• $3,088,000

• Built in 1990

• ±4,407 SF building on ±7,500 SF of land (per First American property profile)

• Mixed use multi-tenant building (includes storage, industrial and residential)

• Unit mix: (1) luxury 2bd x 2bth apt, (1) luxury 1bd x 1bth apt, (1) catering kitchen,

(11) self- storage units and (2) private garages

• Premier Palo Alto location (apn #: 132-38-040)

• Zoning: CS ( http://www.city.palo-alto.ca.us/civica/filebank/blobdload.asp?blobid=8701 )

• Do not disturb tenants - contact agents for more information

PROJECT HIGHLIGHTS


OFFERING MEMORANDUM

3261 ASH UNIT A | 2 BEDROOM 2 BATH APARTMENT

• A private back patio and unique mixed-use setting gives you tranquility in the heart of buzzing Palo Alto. Get the experience of a single family house for the price of an apartment.• 1st floor loft feel with no neighbors above you• Quiet, mixed-use arbor setting with lots of sunlight• Open concept kitchen and family room with exposed beams• Flexible space configuration - perfect for living or work• Brand new custom renovation with designer paint scheme• White cabinets, gray quartz countertops and peninsula• New stainless steel dishwasher, french door refrigerator, microwave hood, oven/range• 2 modern bathrooms with glass enclosure showers and luxury finishes• Washer/dryer in unit• Central air conditioning and heat• Ceiling fans in bedrooms and family room• Gorgeous hardwoods throughout

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OFFERING MEMORANDUM

3261 ASH UNIT A | 2 BEDROOM 2 BATH APARTMENT

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OFFERING MEMORANDUM

3261 ASH UNIT C | 1 BEDROOM 1 BATH APARTMENT

• Walk steps to Equinox Fitness and surround yourself with successful tech start-ups - this is the Palo Alto you know and love. All the amenities you want including personal garage and in unit washer dryer. Condo quality with 2 decks for entertaining, warm cut stone fireplace and a perfect dining area.• 2nd floor loft style space with private entrance• Quiet, arbor setting with lots of sunlight• Flexible space configuration; perfect for live or work• Brand new custom renovation with designer finishes• Includes private garage with storage• Washer/dryer in unit• 2 Small decks to enjoy perfect Palo Alto climate• Cut stone gas fireplace makes you feel at home• Gorgeous hardwoods throughout• White quartz countertop and stainless steel appliances including dishwasher and disposal• Modern bathroom with luxury glass door shower

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OFFERING MEMORANDUM

3261 ASH UNIT C | 1 BEDROOM 1 BATH APARTMENT

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OFFERING MEMORANDUM

NEIGHBORHOOD

AROUND TOWN• Bustling California Avenue• Equinox and Avalon Yoga• Caltrain Station• Easy Access to Highways 101 and 280• Groupon and Box.com Offices• Stanford Campus• Amity Crossfit

SHOPS• Mollie Stone’s Market• Stanford Shopping Center• Cafe Brioche and Izzy’s Bagels• Bluesky Outdoor• Zombie Runner• Cafe Riace

SCHOOLS• Stanford University• Gunn High School• Terman Middle School

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OFFERING MEMORANDUM

Details

Asking Price $3,088,000

Current CAP Rate 4.31%

Current GRM 16.0

Market CAP Rate 5%

Market GRM 14.39

Price Per SF (Price/SF calculated off of First American property profile)

$700

Current MarketINCOMERent Income $191,100 $214,560

TOTAL INCOME $191,100 $214,560

EXPENSESVacancy (2%) $3,822 $4,291.20

Landscaping $1,200 $1,200

Furnished unit, utilities, water, Comcast (estimated) $2,400 $4,200

Misc Expense $1,200 $1,200

Property Taxes (1.183%) $36,531 $36,531

Special Assessments $858 $858

Repairs & Maintenance $2,000 $2,000

Insurance $3,480 $3,480

Utilities $6,456 $6,456

TOTAL EXPENSES $57,947 $60,216

Net Operating Income $135,153 $154,343

CAP Rate 4.31% 5.0%

GRM 16 14.39

Price Per SF $673.50 $700

FINANCIAL OVERVIEW


OFFERING MEMORANDUM

Unit Type* Approx. SF** Amenities Rent Lease Term Market Rent Notes

A Luxury 2 Bd 2 Bth Apt 1,065

Spacious Modern Apartment with Over-sized Great Room, Washer Dryer in Unit, Central AC & Heat, 360 SF Private Patio, & On-site Parking Space

$6,000.00 Month to Month $6,000.00

Furnished unit; Seller responsible for

utilities, water and Com-cast

B Catering Kitchen 765 $3,475.00 Month to Month $3,825.00

C Luxury 1 Bd 1 Bth Apt 886

886 SF Apt W/ 173 SF Private Garage, Washer Dryer in Unit, Gas Fireplace, 96 SF Private Deck and Separate Private Balcony

$3,500.00 Month to Month $4,625.00Market rent assumes furnished/corporate

$4,625/Mo.

1 Storage Unit 46 $175.00 Month to Month $190.00











13 Private Garage 157 $400.00 Month to Month $425.00

14 Private Garage 173 $0.00 Month to Month $200.00 Included in Unit C rent on current.

Current Monthly $15,925.00 Current Market Monthly $17,880.00

Current Annual $191,100.00 Current Market Annual $214,560.00

RENT ROLL

* Note there is no storage unit #10

** Estimated measurements do not equal the square feet listed on First American Property Profile. Building square footage, square footage of improvements, unit square footage and lot size are not guaranteed as accu-rate. Sellers, Brokers and Agents have not measured all units, lot, building or improvements and are making NO representation as to the accuracy of square footage figures. Data source for lot and building size from First American Title Property Profile. Buyer should measure all units, lot, improvements and the building prior to purchase and should not rely on any square footage figures provided to them by Brokers, Agents or Sellers.


OFFERING MEMORANDUM

PARCEL MAP


OFFERING MEMORANDUM

AMENITIES

1. Bank of the West2. Wells Fargo3. First Republic Bank4. Bank of America5. Silicon Valley Bank First Technology Credit Union6. Citibank7. Technology Credit Union8. Provident Credit Union

1. Caffe Riace2. La Bodeguita Del Medio3. Pastis4. Mediterranean Wraps5. The Counter6. Antonio’s Nut House7. Jin Sho8. Terun9. Palo Alto Sol10. Spice Kit 11. Anatolian Kitchen12. Baume13. Palo Alto Pizza Co14. Peking Duck15. Bistro Elan on Birch St.16. Chipotle17. Odori Sushi18. Cardinal Sushi 19. Vitality Bowls 20. Pizza Studio 21. CALAVE Wine Bar 22. Cafe Pro Bono 23. Cafe Brioche 24. The Fish Market

1. Starbucks2. Mollie Stone’s Markets3. Country Sun4. Printers Cafe5. Izzy’s Brooklyn Bagels6. Beet Cafe7. Fambrini’s Cafe8. Starbucks 9. Zombie Runner

1. Maximart Pharmacy2. T-Mobile 3. Avalon Yoga4. Village Flower Shop5. AT&T6. Mike’s Bikes 7. Fry’s Electronics 8. GreenEarth Cleaning

11. Keeble & Shuchat Photography 12. Pure Barre 13. Xfinity 14. CineArts 15. Verizon Wireless

BANKS

RESTAURANTS

COFFEE SHOPS/MARKETS

SHOPPING & SERVICES

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3261 ASH


OFFERING MEMORANDUM

Tibco

Tesla

Robinhood

ooma

bill.com

Groupon

houzz

Palantir

Flipboard

Rubrick

HackerRank

NEIGHBORING COMPANIES

3261 ASH

palo alto mixed use investment for sale - loopnet

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