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Transcript of Makena Offering memorandum full deck · UvÝ1±¾t1v¾ Ý1©ÝU1Þ 6 6 C f 7 ± µ d dó Ô 1 Ó µ...
Makena Collection120-124 Hiawatha Avenue
Santa Cruz, CA 95062
INVESTMENT OVERVIEW 01Offering SummaryExecutive SummaryDetailed Capital ImprovementsProperty SummaryDiscover Santa CruzAerial and Regional Maps
FINANCIAL ANALYSIS 02Rent Roll SummaryRent Roll DetailOperating StatementPricing Detail
MARKET COMPARABLES 03Sales ComparablesRent Comparables
SECTION
2
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure isproprietary and strictly confidential. It is intended to be reviewed only bythe party receiving it from Marcus & Millichap and should not be madeavailable to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared toprovide summary, unverified information to prospective purchasers, andto establish only a preliminary level of interest in the subject property. Theinformation contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made anyinvestigation, and makes no warranty or representation, with respect tothe income or expenses for the subject property, the future projectedfinancial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminatingsubstances, PCB's or asbestos, the compliance with State and Federalregulations, the physical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, or any tenant'splans or intentions to continue its occupancy of the subject property. Theinformation contained in this Marketing Brochure has been obtained fromsources we believe to be reliable; however, Marcus & Millichap has notverified, and will not verify, any of the information contained herein, norhas Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regardingthe accuracy or completeness of the information provided. All potentialbuyers must take appropriate measures to verify all of the information setforth herein. Marcus & Millichap is a service mark of Marcus & MillichapReal Estate Investment Services, Inc. © 2018 Marcus & Millichap. Allrights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by anycommercial tenant or lessee identified in this marketing package. Thepresence of any corporation's logo or name is not intended to indicate orimply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely includedfor the purpose of providing tenant lessee information about this listing toprospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MOREDETAILS.
120-124 Hiawatha AvenueSanta Cruz, CA 95062
Makena HouseFeatures include a stylish, newly
updated kitchen, laundry room, private garage and large deck
Investment Overview
Gilroy Premium Outlets~ 34 miles
Makena Collection120-124 Hiawatha
Santa Cruz, CA 95062
Monterey ~ 42 miles
San Jose International Airport~ 30 miles
University Avenue, Palo Alto~ 44 miles
Downtown Los Gatos~ 20 miles
ATT Park – San Francisco GiantsChase Center – Golden State Warriors
~ 50 miles
OFFERING SUMMARY
120-124 Hiawatha Avenue, Santa Cruz
INVESTMENT OVERVIEW
120-124 Hiawatha Avenue in Santa Cruz, offers an investor the rare opportunity to acquire theMakena Collection, a single parcel – approximately 2/3 of an acre – with two buildings, in ahistorically strong rental market with low vacancy levels.
The multifamily dwelling, Makena Court, is a community of (14) 1 bed/1 bath units – most withprivate gated patios – a laundry care center and onsite parking. Recent improvements to thecommunity include:
• 6 fully renovated units• New exterior paint• New garage door – 120 Hiawatha• New garage door – 124 Hiawatha• New patio fences for patio apartments• New exterior doors for all apartments and house• Major repairs to parking lot and restripe• Upgraded low-maintenance landscaping• Successful completion of sewer lateral inspection and repairs
Makena House, a 3 bedroom/2 bathroom single family home shows beautifully with an updatedkitchen featuring stainless steel refrigerator, stove and microwave, new lighting, new flooringthroughout, new interior paint, doors and hardware, bedroom ceiling fans, a dedicated laundryroom with washer/dryer, private garage and large deck for outdoor entertainment.
This property is located a stone’s throw from Seabright State Beach, scenic East Cliff Drive and theSanta Cruz Museum of Natural History, in an area that offers the best of the Boardwalk andSeabright neighborhoods. The Makena Collection is centrally located between Downtown SantaCruz, Capitola and Rio Del Mar offering hundreds of shopping, dining and entertainment options.
Residents enjoy the convenience of Whole Foods Market, The Buttery, Seabright Brewery, IlPosta, and dozens more restaurants in the immediate neighborhood.
Exciting area improvements include the already-completed transformation to the San LorenzoRiver Bridge replacing the current 4-foot wide walkway with a 10-foot wide multi-use trail,providing direct bike/pedestrian access for the Makena Collection and the Santa Cruz BeachBoardwalk.
OFFERING SUMMARY
120-124 Hiawatha Avenue, Santa Cruz
Since 2019, approximately $100,000 in improvements have been made to Makena Court and Makena House.
Exterior landscaping
New exterior paint to building
Major repairs to parking lot and re-stripe
New garage door – 120 Hiawatha
New garage door – 124 Hiawatha
New exterior doors for all apartments and house
New patio fences for patio apartments
Discover the Makena CollectionSituated 2 blocks from Seabright Beach
Makena Court – a community of (14) 1 bedroom/1 bath apartments with private, gated patios and onsite parking
Makena House – a free-standing 3 bedroom/2 bath free-standing residence
Makena C
ourt
Makena H
ouse
Discover Santa Cruz
Discover Santa CruzFrom doorstep to beachfront ~
Makena Collection is a 10 minute walk to Seabright State
Beach, minutes to Santa Cruz Boardwalk, and less than a mile
from Downtown Santa Cruz/Pacific Avenue Mall, and the iconic
Catalyst Nightclub.
AERIAL PHOTO
MAKENA COLLECTION
Santa Cruz Boardwalk
Santa Cruz Riverwalk(Boardwalk Access)
Santa Cruz’s iconicEast Cliff Drive
Seabright Beach
Seabright Marina
Makena Collection120-124 Hiawatha Avenue
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 Sandcastle Apartments, 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
120-124 Hiawatha Avenue, Santa Cruz
MAJOR REGIONAL EMPLOYERS – RANKED BY DISTANCE FROM ASSET
Financial Analysis
FINANCIAL ANALYSIS
MAKENA COLLECTION
RENT ROLL SUMMARY
RENT ROLL DETAIL
FINANCIAL ANALYSIS
MAKENA COLLECTION
OPERATING STATEMENT
FINANCIAL ANALYSIS
MAKENA COLLECTION
PRICING DETAIL
Market Comparables
MAKENA COLLECTION
22
MAKENA COLLECTION(SUBJECT)
Sandcastle Apartments
236 6th Avenue
101 Douglas Drive
208 1st Street
238 San Lorenzo Boulevard
313 Raymond Street
371 7th Avenue
Pacific View Apartments
1880 46th Avenue
SALES COMPARABLES
ON MARKET COMPARABLES
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2
3
4
5
7
8
6
9
SALES COMPARABLES MAP120 Hiawatha – Single Family Residence
SALES COMPARABLES
SINGLE FAMILY RESIDENCE
3 BEDROOM / 2 BATH
23
PROPERTY NAMEMAKENA COLLECTION
Average Price per Unit
SALES COMPARABLES
ON MARKET COMPARABLES
SALES COMPS AVG
ON MARKET COMPS AVG
SALES COMPARABLES MAP120 Hiawatha – Single Family Residence
Average Price per Square Foot
Avg. $488.68
Avg. $610.00
$0.00
$80.00
$160.00
$240.00
$320.00
$400.00
$480.00
$560.00
$640.00
$720.00
$800.00
MakenaCollection
SandcastleApartments
236 6thAvenue
101 DouglasDrive
208 1stStreet
238 SanLorenzo
Boulevard
313 RaymondStreet
371 7thAvenue
PacificView
Apartments
1880 46thAvenue
Avg. $416,389
Avg. $371,833
$0
$80,000
$160,000
$240,000
$320,000
$400,000
$480,000
$560,000
$640,000
$720,000
$800,000
MakenaCollection
SandcastleApartments
236 6thAvenue
101 DouglasDrive
208 1stStreet
238 SanLorenzo
Boulevard
313 RaymondStreet
371 7thAvenue
PacificView
Apartments
1880 46thAvenue
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Avg. 14.84Avg. 15.91
0.00
2.10
4.20
6.30
8.40
10.50
12.60
14.70
16.80
18.90
21.00
MakenaCollection
SandcastleApartments
236 6thAvenue
101 DouglasDrive
208 1stStreet
238 SanLorenzo
Boulevard
313 RaymondStreet
371 7thAvenue
PacificView
Apartments
1880 46thAvenue
PROPERTY NAMEMAKENA COLLECTION
Average GRM
SALES COMPARABLES
ON MARKET COMPARABLES
SALES COMPS AVG
ON MARKET COMPS AVG
SALES COMPARABLES MAP120 Hiawatha – Single Family Residence
Avg. 4.50%Avg. 4.74%
0.0
0.7
1.4
2.1
2.8
3.5
4.2
4.9
5.6
6.3
7.0
MakenaCollection
SandcastleApartments
236 6thAvenue
101 DouglasDrive
208 1stStreet
238 SanLorenzo
Boulevard
313 RaymondStreet
371 7thAvenue
PacificView
Apartments
1880 46thAvenue
Average Cap Rate
PROPERTY NAME
MARKETING TEAM
MAKENA COLLECTION
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SALES COMPARABLES ON MARKET COMPARABLES
Units Unit Type
Offering Price: $6,250,000 14 1 Bdr
Price/Unit: $416,667 1 3 Bdr
Price/SF: $664.89
CAP Rate: 4.15%
GRM: 15.55
Total No. of Units: 15
Year Built: 1947
Underwriting Criteria
Income $404,053 Expenses $144,759
NOI $259,294 Vacancy ($16,077)
MAKENA COLLECTION120-124 Hiawatha Avenue, Santa Cruz, CA, 95062
1
Close Of Escrow: 7/23/2019
Sales Price: $4,500,000
Price/Unit: $375,000
Price/SF: $728.74
CAP Rate: 4.58%
GRM: 14.20
Total No. of Units: 12
Year Built: 1925
SANDCASTLE APARTMENTS124-206 1st Street, Santa Cruz, CA, 95060
Close Of Escrow: 7/11/2019
Sales Price: $4,400,000
Price/Unit: $733,333
Price/SF: $671.76
CAP Rate: 3.00%
Total No. of Units: 6
Year Built: 1950
2
236 6TH AVENUE236 6th Avenue, Santa Cruz, CA, 95062
SALES COMPARABLES MAP120 Hiawatha – Single Family Residence
PROPERTY NAME
MARKETING TEAM
MAKENA COLLECTION
rentpropertyname1
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SALES COMPARABLES ON MARKET COMPARABLES
Close Of Escrow: 5/17/2019
Sales Price: $2,280,000
Price/Unit: $380,000
Price/SF: $250.11
CAP Rate: 4.00%
GRM: 11.88
Total No. of Units: 6
Year Built: 1980
3
101 DOUGLAS DRIVE101 Douglas Drive, Soquel, CA, 95073
4
Close Of Escrow: 6/8/2018
Sales Price: $2,150,000
Price/Unit: $430,000
Price/SF: $461.97
GRM: 19.36
Total No. of Units: 5
Year Built: 1918
208 1ST STREET208 1st Street, Santa Cruz, CA, 95060
Close Of Escrow: 1/25/2019
Sales Price: $1,800,000
Price/Unit: $360,000
Price/SF: $412.09
CAP Rate: 4.74%
GRM: 13.92
Total No. of Units: 5
Year Built: 1964
5
238 SAN LORENZO BOULEVARD238 San Lorenzo Boulevard, Santa Cruz, CA, 95060
SALES COMPARABLES MAP120 Hiawatha – Single Family Residence
PROPERTY NAME
MARKETING TEAM
MAKENA COLLECTION
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES ON MARKET COMPARABLES
Close Of Escrow: 6/21/2018
Sales Price: $1,100,000
Price/Unit: $220,000
Price/SF: $407.41
CAP Rate: 6.20%
Total No. of Units: 5
Year Built: 1898
6
313 RAYMOND STREET313 Raymond Street, Santa Cruz, CA, 95060
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On Market
List Price: $2,050,000
Price/Unit: $410,000
Price/SF: $746.00
CAP Rate: 5.00%
GRM: 18.35
Total No. of Units: 5
Year Built: 1958
371 7TH AVENUE371 7th Avenue, Santa Cruz, CA, 95062
On Market
List Price: $4,695,000
Price/Unit: $313,000
Price/SF: $581.64
CAP Rate: 4.84%
GRM: 13.40
Total No. of Units: 15
Year Built: 1926
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PACIFIC VIEW APARTMENTS81 Front Street, Santa Cruz, CA, 95062
SALES COMPARABLES MAP120 Hiawatha – Single Family Residence
PROPERTY NAME
MARKETING TEAM
MAKENA COLLECTION
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
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SALES COMPARABLES ON MARKET COMPARABLES
9
1880 46TH AVENUE1880 46th Avenue, Capitola, CA, 95010
SALES COMPARABLES MAP120 Hiawatha – Single Family Residence
On Market
List Price: $3,925,000
Price/Unit: $392,500
Price/SF: $502.37
CAP Rate: 4.39%
GRM: 15.99
Total No. of Units: 10
Year Built: 1964
MAKENA COLLECTION
SALES COMPARABLES MAP120 Hiawatha – Single Family Residence
MAKENA COLLECTION(SUBJECT)
216 Liberty Street
129 S Park Way
137 Monterey Street
SALES COMPARABLES
1
2
3
SALES COMPARABLES
SINGLE FAMILY RESIDENCE
3 BEDROOM / 2 BATH
PROPERTY NAME
MARKETING TEAM
MAKENA COLLECTION
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
SALES COMPARABLES
Offering Price: $6,250,000 14 1 Bedroom apartments
Price/Unit: $416,667 1 3 Bedroom 2 Bath SFR
Price/SF: $664.89
CAP Rate: 4.15%
GRM: 15.55
Total No. of Units: 15
Year Built: 1947
MAKENA COLLECTION120-124 Hiawatha Avenue, Santa Cruz, CA, 95062
1
Close Of Escrow: 3/12/2019 3 Bdr 2 Bath
Sales Price: $1,375,000
Year Built: 1984
216 LIBERTY STREET216 Liberty Street, Santa Cruz, CA, 95062
Close Of Escrow: 3/12/2019 3 Bdr 2 Bath
Sales Price: $1,260,000
Year Built: 1934
2
129 S PARK WAY129 S Park Way, Santa Cruz, CA, 95062
SALES COMPARABLES MAP120 Hiawatha – Single Family Residence
PROPERTY NAME
MARKETING TEAM
MAKENA COLLECTION
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
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SALES COMPARABLES
Close Of Escrow: 11/25/2018 3 Bdr 2 Bath
Sales Price: $1,525,000
Year Built: 1933
3
137 MONTEREY STREET137 Monterey Street, Santa Cruz, CA, 95060
SALES COMPARABLES MAP120 Hiawatha – Single Family Residence
8
MAKENA COLLECTION
RENT COMPARABLES MAP
MAKENA COLLECTION(SUBJECT)
220 Atlantic Avenue
4
7
8
9
11
20
12
14
15
16
17
13
18
10
1
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PROPERTY NAME
MARKETING TEAM
MAKENA COLLECTION
RENT COMPARABLES
rentpropertyname1
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rentpropertyaddress1
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YEAR BUILT: 1947
rentpropertyname1rentpropertyaddress1
Unit Type Units SF Rent Rent/SF
1 Bdr 14 600 $2,057 $3.43
3 Bdr 1 1,000 $4,695 $4.70
Total/Avg. 15 627 $2,233 $3.56
MAKENA COLLECTION120-124 Hiawatha Avenue, Santa Cruz, CA, 95062
YEAR BUILT: 1964
1
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 660-660 $2,400-$2,400 $3.64
Total/Avg. $2,400
220 ATLANTIC AVENUE220 Atlantic Avenue, Santa Cruz, CA, 95062
Average Rent - Multifamily
Avg. $2,400
$0
$300
$600
$900
$1,200
$1,500
$1,800
$2,100
$2,400
$2,700
$3,000
MakenaCollection
220AtlanticAvenue
1 Bedroom
Exclusively Listed by
Andres LopezSenior Investment AssociateAndres .Lopez@MarcusMill ichap.com
Makena Collection120-124 Hiawatha AvenueSanta Cruz, CA 95062
Eduardo CernaSenior Managing Director InvestmentsSenior Director , na t ional Multi Housing GroupEd.Cerna@MarcusMil l ichap.com