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Rockingham Apartments
3307 Mather Field DriveSacramento, CA 95670
OFFERING MEMORANDUM | 75 UNIT APARTMENT BUILDING
Rockingham ApartmentsCONTENTS
Jacob Stanfill Tim SwanstonSenior Associate Senior Vice President916-716-8131 916-541-3630Lic: 01914043 Lic: [email protected] [email protected]
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility oferrors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent thecurrent or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
01 Executive Summary Executive Summary 5 Unit Mix Summary 6 Location Summary 7
02 Property Description Property Features 9 Aerial Map 10 Common Amenities 11 Unit Amenities 12 Property Images 13
03 Sale Comps Sale Comparables Summary 16 Sale Comparables Charts 19 Sale Comparables Map 20
04 Financial Analysis Income & Expense Analysis 22 Multiyear Cash Flow Assumptions 23 Cash Flow Analysis 24 Disposition Sensitivity Analysis 26
05 Demographics Demographics 28 Demographic Charts 29
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from North Coast Commercial Inc and it should not be made available to any other personor entity without the written consent of North Coast Commercial Inc. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such informationin the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offeringmemorandum. If you have no interest in the subject property, please promptly return this offering memorandum to North CoastCommercial Inc. This offering memorandum has been prepared to provide summary, unverified financial and physical informationto prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information containedherein is not a substitute for a thorough due diligence investigation. North Coast Commercial Inc has not made any investigation,and makes no warranty or representation with respect to the income or expenses for the subject property, the future projectedfinancial performance of the property, the size and square footage of the property and improvements, the presence of absence ofcontaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition ofthe improvements thereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property. The information contained in this offering memorandum has been obtained fromsources we believe reliable; however, North Coast Commercial Inc has not verified, and will not verify, any of the informationcontained herein, nor has North Coast Commercial Inc conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyersmust take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for theircosts and expenses of investigating the subject property.
Rockingham Apartments Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER:
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT THE NORTH COAST COMMERCIAL INC ADVISOR FOR MORE DETAILS.Copyright © 2018 CREOP, LLC. All Rights Reserved.
Rockingham Apartm
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Executive Summary
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Offering Summary
Unit Mix Summary
Location Summary
Rockingham Apartments Executive Summary | 05
OFFERING SUMMARYADDRESS 3307 Mather Field Drive Sacramento
CA 95670
COUNTY Sacramento
MARKET Sacramento
SUBMARKET Rancho Cordova
BUILDING SF 47,320
LAND SF 137,214
NUMBER OF UNITS 75
YEAR BUILT 1960s
APN 07702400060000
OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARYOFFERING PRICE $8,250,000
PRICE PSF $174.34
PRICE PER UNIT $110,000
OCCUPANCY 95.00 %
NOI (CURRENT) $469,187
NOI (Pro Forma) $576,810
CAP RATE (CURRENT) 5.68 %
CAP RATE (Pro Forma) 6.99 %
PROPOSED FINANCINGLOAN TYPE Fully Amortized
DOWN PAYMENT $2,475,000
LOAN AMOUNT $5,775,000
INTEREST RATE 4.50 %
ANNUAL DEBT SERVICE $351,135
LOAN TO VALUE 70 %
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2017 Population 19,300 82,290 199,813
2017 Median HH Income $44,482 $57,808 $61,502
2017 Average HH Income $57,620 $79,986 $87,315
Rockingham Apartments is a well maintained 75 unit apartmentcommunity in the City of Rancho Cordova. The property wasconstructed in 1969, and is situated on 3.15 acres. The building islow density for the area and is zoned for an additional 19 units.The property consists of (2) Studio units, (56) 1 Bedroom 1Bathroom units, and (17) 2 Bedroom 1 Bathroom units. Theprofessionally landscaped grounds provide a park like setting.Common area amenities include a swimming pool & 5 laundryfacilities. There are also 75 parking spaces. 51 of the 75 unitshave updated interiors with vinyl plank flooring throughout andFormica counter tops.
Rockingham is conveniently located just off of Highway 50 in closeproximity to public transportation, VA hospital, restaurants.
Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly
IncomeMarket Rent Market Rent
PSFMarket Income
1 bd / 1 ba 56 600 $850 $1.42 $47,600 $950 $1.58 $53,2001 bd / 1 ba 3 640 $1,103 $1.72 $3,309 $1,150 $1.80 $3,4502 bd / 1 ba 14 800 $1,139 $1.42 $15,946 $1,350 $1.69 $18,900
Studio / 1 ba 2 500 $788 $1.58 $1,576 $850 $1.70 $1,700Totals/Averages 75 636 $912 $1.43 $68,431 $1,030 $1.61 $77,250
Rockingham Apartments Unit Mix Summary | 06
Rockingham Apartments Location Summary | 07
The City of Rancho Cordova offers a robust businesseconomy, due to the variety of business, from smallconsultant firms to Fortune 500 companies. The Cityof Rancho Cordova is located between Folsom, whichis to the East, and Downtown Sacramento, to thewest, making it an attractive area in the region to livethe sub-market has seen substantial growth in the lastdecade with many employers relocating to the area.Some of the regions largest private employers arebased out of Rancho Cordova. Rancho Cordova is theSacramento area's largest employment sub-center.Excellent access from Highway 50, Zinfandel,International and Data Drives. The property benefitsfrom strong daytime populations within a 1-mileradius of site.
Regional Map
Locator Map
Rockingham Apartm
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Property Description
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Property Features
Aerial Map
Parcel Map
Additional Maps
Amenities
Property Images
Rockingham Apartments Property Features | 09
Site DescriptionNUMBER OF UNITS 75
BUILDING SF 47,320
LAND SF 137,214
LAND ACRES 3.15
YEAR BUILT 1960s
# OF PARCELS 1
ZONING TYPE RD-30
NUMBER OF STORIES 2
NUMBER OF BUILDINGS 2
NUMBER OF PARKING SPACES 75
PARKING RATIO 0.69/unit
POOL / JACUZZI Pool
WASHER/DRYER On Site
MECHANICALHVAC Central
UTILITIESWATER Landlord
TRASH Landlord
GAS Tenant
ELECTRIC Tenant
RUBS Yes
CONSTRUCTIONFOUNDATION Raised
EXTERIOR Stucco and Wood Siding
PARKING SURFACE Paved Asphalt
ROOF Comp Shingle
Rockingham Apartments Property Images | 13
Rockingham Apartments Front Entrance on Mather Field Rd
Cottage Style Units Cottage Style 2 bedroom 1 Bathroom Units
Rockingham Apartm
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Sale Comps
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Sale Comparables
Sale Comparables Charts
Sale Comparables Map
Rockingham Apartments Sale Comparables Summary | 16
1
Seville Apartments10434 Coloma Rd, RanchoCordova, CA 95670
TOTAL UNITS 56
YEAR BUILT 1983
SALE PRICE $5,750,000
PRICE/UNIT $102,679
PRICE/SF $135.97
CAP RATE 4.89 %
CLOSING DATE 6/26/2017
Cap Rate Range 4.89 % - 6.25 %
LOW HIGH
Price/Unit Range $102,500 - $115,429
LOW HIGH
DOM Range
LOW HIGH
2
Sycamore Square2051-2081 W LA Loma Dr,Rancho Cordova, CA 95670
TOTAL UNITS 140
YEAR BUILT 1970
SALE PRICE $16,160,000
PRICE/UNIT $115,429
PRICE/SF $150.11
CAP RATE 6.25 %
OCCUPANCY 96.00 %
CLOSING DATE 1/26/2018
Cap Rate Range 4.89 % - 6.25 %
LOW HIGH
Price/Unit Range $102,500 - $115,429
LOW HIGH
DOM Range
LOW HIGH
Rockingham Apartments Sale Comparables Summary | 17
3
Birchwood Apartment Homes2091-2101 W La Loma Dr,Rancho Cordova, CA 95670
TOTAL UNITS 40
YEAR BUILT 1978
SALE PRICE $4,100,000
PRICE/UNIT $102,500
PRICE/SF $151.05
CLOSING DATE 2/6/2018
Cap Rate Range
LOW HIGH
Price/Unit Range $102,500 - $115,429
LOW HIGH
DOM Range
LOW HIGH
4
The Meadows Apartments10108 Malaga Way, RanchoCordova, CA 95670
TOTAL UNITS 88
YEAR BUILT 1969
SALE PRICE $9,328,000
PRICE/UNIT $106,000
PRICE/SF $121.83
CAP RATE 5.70 %
OCCUPANCY 95.00 %
CLOSING DATE 11/15/2017
Cap Rate Range 4.89 % - 6.25 %
LOW HIGH
Price/Unit Range $102,500 - $115,429
LOW HIGH
DOM Range
LOW HIGH
Rockingham Apartments Sale Comparables Summary | 18
S
Rockingham Apartments3307 Mather Field Drive,Sacramento, CA
TOTAL UNITS 75
ASKING PRICE $8,250,000
PRICE/UNIT $110,000
PRICE/SF $174.34
CAP RATE 5.68 %
OCCUPANCY 95.00 %
Cap Rate Range 4.89 % - 6.25 %
LOW HIGH
Price/Unit Range $102,500 - $115,429
LOW HIGH
Rockingham Apartments Sale Comparables Map | 20
# Property Name Address City
S Rockingham Apartments 3307 Mather Field Drive Sacramento1 Seville Apartments 10434 Coloma Rd Rancho Cordova2 Sycamore Square 2051-2081 W LA Loma Dr Rancho Cordova3 Birchwood Apartment Homes 2091-2101 W La Loma Dr Rancho Cordova4 The Meadows Apartments 10108 Malaga Way Rancho Cordova
Rockingham Apartm
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Financial Analysis
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Income & Expense
Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
Disposition Sensitivity Analysis
Rockingham Apartments Income & Expense Analysis | 22
INCOME CURRENT PRO FORMA
Gross Potential Rent $821,172 $927,000
RUBS $37,296 $48,840
Other Income $3,660 $3,660
Gross Potential Income $862,128 $979,500
Less: General Vacancy $41,059 $46,350
Effective Gross Income $821,069 $933,150
Less: Expenses $351,882 $356,340
Net Operating Income $469,187 $576,810
Annual Debt Service $351,135 $351,135
Debt Coverage Ratio 1.34 1.64
Cash Flow After Debt Service $118,052 $225,675
Principal Reduction $91,260 $91,260
Total Return 8.5 % $209,312 12.8 % $316,935
EXPENSES CURRENT PRO FORMA
Real Estate Taxes $1,243 $93,225 $1,243 $93,225
Insurance $160 $12,000 $160 $12,000
Management Fee $674 $50,542 $733 $55,000
Repairs & Maintenance $249 $18,675 $249 $18,675
Water / Sewer $821 $61,552 $821 $61,552
Landscaping $142 $10,658 $142 $10,658
Administration $975 $73,119 $975 $73,119
Utilities $366 $27,474 $366 $27,474
Other Expenses $62 $4,637 $62 $4,637
Total Operating Expense $4,692 $351,882 $4,751 $356,340
Expense / SF $7.43 $7.53
% of EGI 42.86 % 38.19 %
Per Unit Per Unit
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
Rockingham Apartments Multiyear Cash Flow Assumptions | 23
PROPOSED FINANCINGLoan Type Fully AmortizedDown Payment $2,475,000Loan Amount $5,775,000Interest Rate 4.50 %Annual Debt Service $351,135Loan to Value 70 %
Rockingham Apartments Cash Flow Analysis| 24
CASH FLOWCalendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $821,172 $927,000 $927,000 $927,000 $927,000 $927,000 $927,000 $927,000 $927,000 $927,000RUBS $37,296 $48,840 $48,840 $48,840 $48,840 $48,840 $48,840 $48,840 $48,840 $48,840Other Income $3,660 $3,660 $3,660 $3,660 $3,660 $3,660 $3,660 $3,660 $3,660 $3,660General Vacancy $41,059 $46,350 $46,350 $46,350 $46,350 $46,350 $46,350 $46,350 $46,350 $46,350Effective Gross Income $821,069 $933,150 $933,150 $933,150 $933,150 $933,150 $933,150 $933,150 $933,150 $933,150Operating ExpensesReal Estate Taxes $93,225 $93,225 $93,225 $93,225 $93,225 $93,225 $93,225 $93,225 $93,225 $93,225Insurance $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000Management Fee $50,542 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000Repairs & Maintenance $18,675 $18,675 $18,675 $18,675 $18,675 $18,675 $18,675 $18,675 $18,675 $18,675Water / Sewer $61,552 $61,552 $61,552 $61,552 $61,552 $61,552 $61,552 $61,552 $61,552 $61,552Landscaping $10,658 $10,658 $10,658 $10,658 $10,658 $10,658 $10,658 $10,658 $10,658 $10,658Administration $73,119 $73,119 $73,119 $73,119 $73,119 $73,119 $73,119 $73,119 $73,119 $73,119Utilities $27,474 $27,474 $27,474 $27,474 $27,474 $27,474 $27,474 $27,474 $27,474 $27,474Other Expenses $4,637 $4,637 $4,637 $4,637 $4,637 $4,637 $4,637 $4,637 $4,637 $4,637Total Operating Expense $351,882 $356,340 $356,340 $356,340 $356,340 $356,340 $356,340 $356,340 $356,340 $356,340Net Operating Income $469,187 $576,810 $576,810 $576,810 $576,810 $576,810 $576,810 $576,810 $576,810 $576,810Annual Debt Service $351,135 $351,135 $351,135 $351,135 $351,135 $351,135 $351,135 $351,135 $351,135 $351,135
Effective Gross Income vs Operating Expenses Cash Flow
Rockingham Apartments Cash Flow Analysis| 25
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 4.77 % 9.12 % 9.12 % 9.12 % 9.12 % 9.12 % 9.12 % 9.12 % 9.12 % 9.12 %CAP Rate 5.69 % 6.99 % 6.99 % 6.99 % 6.99 % 6.99 % 6.99 % 6.99 % 6.99 % 6.99 %Debt Coverage Ratio 1.34 1.64 1.64 1.64 1.64 1.64 1.64 1.64 1.64 1.64Operating Expense Ratio 42.85 % 38.18 % 38.18 % 38.18 % 38.18 % 38.18 % 38.18 % 38.18 % 38.18 % 38.18 %Loan to Value 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 %Breakeven Ratio 85.62 % 75.82 % 75.82 % 75.82 % 75.82 % 75.82 % 75.82 % 75.82 % 75.82 % 75.82 %Price / SF $174 $174 $174 $174 $174 $174 $174 $174 $174 $174Price / Unit $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000Expense / SF $7 $8 $8 $8 $8 $8 $8 $8 $8 $8Income / SF $17 $20 $20 $20 $20 $20 $20 $20 $20 $20
Rockingham Apartments Disposition Sensitivity Analysis | 26
SENSITIVITY ANALYSIS 5 YEARSEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE/UNIT SALES PRICE PSF PROCEEDS AFTER
LOAN PAYOFFIRR
0.25% $230,724,000 $3,076,320 $4,876 $225,388,008 148.72%0.50% $115,362,000 $1,538,160 $2,438 $110,026,008 116.10%0.75% $76,908,000 $1,025,440 $1,625 $71,572,008 98.75%1.00% $57,681,000 $769,080 $1,219 $52,345,008 87.07%1.25% $46,144,800 $615,264 $975 $40,808,808 78.32%1.50% $38,454,000 $512,720 $813 $33,118,008 71.34%1.75% $32,960,571 $439,474 $697 $27,624,579 65.52%2.00% $28,840,500 $384,540 $609 $23,504,508 60.54%2.25% $25,636,000 $341,813 $542 $20,300,008 56.17%
SENSITIVITY ANALYSIS 10 YEARSEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE/UNIT SALES PRICE PSF PROCEEDS AFTER
LOAN PAYOFFIRR
0.25% $230,724,000 $3,076,320 $4,876 $225,793,643 59.16%0.50% $115,362,000 $1,538,160 $2,438 $110,431,643 48.68%0.75% $76,908,000 $1,025,440 $1,625 $71,977,643 42.82%1.00% $57,681,000 $769,080 $1,219 $52,750,643 38.77%1.25% $46,144,800 $615,264 $975 $41,214,443 35.66%1.50% $38,454,000 $512,720 $813 $33,523,643 33.15%1.75% $32,960,571 $439,474 $697 $28,030,214 31.03%2.00% $28,840,500 $384,540 $609 $23,910,143 29.20%2.25% $25,636,000 $341,813 $542 $20,705,643 27.58%
Rockingham Apartm
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Demographics
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Demographic Details
Demographic Charts
Rockingham Apartments Demographics | 28
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 16,274 71,127 178,253
2010 Population 18,543 77,722 189,804
2017 Population 19,300 82,290 199,813
2022 Population 20,031 86,021 208,586
2017 African American 2,573 7,786 15,478
2017 American Indian 188 817 1,889
2017 Asian 2,535 9,194 20,601
2017 Hispanic 4,765 16,785 34,515
2017 White 9,880 50,311 133,197
2017 Other Race 2,154 7,016 13,012
2017 Multiracial 1,693 6,360 14,188
2017-2022: Population: Growth Rate 3.75 % 4.45 % 4.30 %
2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 749 2,710 6,839
$15,000-$24,999 917 2,693 6,795
$25,000-$34,999 1,006 3,224 7,223
$35,000-$49,999 1,210 4,000 10,139
$50,000-$74,999 1,404 5,669 14,433
$75,000-$99,999 790 3,981 10,510
$100,000-$149,999 704 4,398 11,636
$150,000-$199,999 179 1,523 4,979
$200,000 or greater 96 1,642 5,494
Median HH Income $44,482 $57,808 $61,502
Average HH Income $57,620 $79,986 $87,315
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 6,542 27,580 74,195
2010 Total Households 6,907 28,564 74,956
2017 Total Households 7,054 29,840 78,047
2022 Total Households 7,270 30,994 80,994
2017 Average Household Size 2.73 2.73 2.53
2000 Owner Occupied Housing 2,120 13,935 41,054
2000 Renter Occupied Housing 4,040 12,351 30,280
2017 Owner Occupied Housing 2,534 16,192 45,047
2017 Renter Occupied Housing 4,521 13,648 33,000
2017 Vacant Housing 713 2,069 5,337
2017 Total Housing 7,767 31,909 83,384
2022 Owner Occupied Housing 2,635 16,815 46,633
2022 Renter Occupied Housing 4,635 14,179 34,360
2022 Vacant Housing 746 2,179 5,587
2022 Total Housing 8,016 33,173 86,581
2017-2022: Households: Growth Rate 3.05 % 3.80 % 3.70 %
Source: esri
Rockingham Apartments Demographic Charts | 29
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Population by Race
Rockingham Apartments Demographic Charts | 30
2017 Household Occupancy - 1 Mile Radius
Average Income Median Income
2017 Household Income Average and Median
Rockingham Apartments
Jacob Stanfill Tim SwanstonSenior Associate Senior Vice President916-716-8131 916-541-3630Lic: 01914043 Lic: [email protected] [email protected]
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