Offering Memorandum...2020-10477, 10481, 10485 LIVE OAK BLVD 2020 Live Oak Blvd • Yuba City, CA...

2020-10477, 10481, 10485 LIVE OAK BLVD2020 Live Oak Blvd • Yuba City, CA 95991

Offering Memorandum

1

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 andshould 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, unverifiedinformation 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 duediligence 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, thefuture 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 orasbestos, 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 anytenant'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 bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures toverify 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.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary,especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence onbehalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus &Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage otherprofessionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro formafinancial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections,analyses, and decision-making.

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 orname 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.

RENT DISCLAIMER :

Any rent or income information in this offering memorandum, with the exception of actual, historical rent collections, represent good faith projections of potential future rent only, and Marcus &Millichap makes no representations as to whether such rent may actually be attainable. Local, state, and federal laws regarding restrictions on rent increases may make these projectionsimpossible, and Buyer and its advisors should conduct their own investigation to determine whether such rent increases are legally permitted and reasonably attainable.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

2020-10477, 10481, 10485 LIVE OAK BLVDYuba City, CAACT ID ZAB0030399

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Aerial Photo

FINANCIAL ANALYSIS 02Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03Sales Comparables

Rent Comparables

MARKET OVERVIEW 04

2020-10477, 10481, 10485 LIVE OAK BLVD

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2020-10477, 10481, 10485 LIVE OAK BLVD

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INVESTMENT

OVERVIEW

2020-10477, 10481, 10485 LIVE OAK BLVD

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Ycusd 2,000

Caltrans District 3 800

Rideout Memorial Hospital 700

Fremont Medical Center 638

Sunsweet Growers Inc 600

Walmart 600

YCCD 600

PG&e 503

McDonalds 361

Wilbur Packing Company Inc 350

Yuba Cnty Hlth Humn Svcs Dept 350

Alta Cal Regional Ctr Inc 300

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2020 Estimate Pop 11,736 61,833 108,157

2010 Census Pop 11,347 60,259 103,540

2020 Estimate HH 4,475 22,700 37,105

2010 Census HH 4,164 21,471 34,695

Median HH Income $40,048 $48,122 $54,226

Per Capita Income $22,047 $24,963 $24,504

Average HH Income $57,056 $67,176 $70,895

UNIT MIX

NUMBEROF UNITS UNIT TYPE

APPROX.SQUARE FEET

4 2BD1BA 1,000

1 3BD2BA 1,200

2 2BD2BA 1,146

7 Total 7,492

VITAL DATA

Price $1,175,000 CURRENT YEAR 1

Down Payment 40% / $470,000 CAP Rate 4.83% 5.63%

Loan Amount $705,000 GRM 13.23 11.03

Loan Type Proposed New Net Operating Income $56,790 $66,124

Interest Rate / Amortization 3% / 30 Years Net Cash Flow After Debt Service 4.49% / $21,122 6.48% / $30,456

Price/Unit $167,857 Total Return 7.63% / $35,841 9.71% / $45,623

Price/SF $156.83

Number of Units 7

Rentable Square Feet 7,492

Number of Buildings 3

Number of Stories 2

Year Built 1979

Lot Size 0.24 acre(s)

5

2020-10477, 10481, 10485 LIVE OAK BLVD

OFFERING SUMMARY

New Roofs

Strong Unit Mix, Six Two-Bedroom/One-Bath, One Three-Bedroom/Two-Bath

Updated Interiors

Room to Develop another Duplex or Fourplex

Upside in Rents

INVESTMENT HIGHLIGHTS

Marcus & Millichap is proud to exclusively present a unique opportunity in Live Oak, California. The subject property consists of three buildings, a single-family home, a

fourplex, and a duplex on one parcel. In addition, there is enough land in the back of the property to add another duplex or fourplex. The unit mix is excellent, with all

four units in the fourplex having two bedrooms, three bedrooms in the single-family home, and two bedrooms in each side of the duplex. There is currently a 14-percent

loss-to-lease that can be made up quite quickly, and rental upside in every unit. The property also benefits from a strong location right near the center of town, on the

cusp of Highway 99, and only minutes from Yuba City. Thus, residents can walk to shopping, dining and schools in Live Oak, but also have easy access to Yuba City

being only 10 minutes away. Live Oak is also currently doing some major reconstruction on the section of road right in front of the property, which will benefit the

residents shortly with enhanced walkability and landscaping at their doorstep.

The current owner has done a good job of taking care of all major systems, including new roofs and interior upgrades. The buildings are thus in good shape and offer the

buyer the opportunity to raise rents with some simple cosmetic upgrades.

Live Oak is a small town in Sutter County just minutes from Yuba City, one of the fastest growing cities in Northern California, with a vacancy rate currently below four

percent and a growing rental demand that is outpacing supply, leading to rent increases that continue to outperform the surrounding areas.

For a buyer looking for a clean property with upside to place their capital, look no further, as the subject property affords the right byer the opportunity for current cash

flow with future upside potential.

INVESTMENT OVERVIEW

6

2020-10477, 10481, 10485 LIVE OAK BLVD

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $705,000

Loan Type Proposed New

Interest Rate 3%

Amortization 30 Years

Loan Term 5 Years

Loan to Value 60%

Debt Coverage Ratio 1.59

THE OFFERING

Property 2020-10477, 10481, 10485 Live Oak Blvd

Price $1,175,000

Property Address 2020 Live Oak Blvd, Yuba City, CA

Assessors Parcel Number 06-060-025

SITE DESCRIPTION

Number of Units 7

Number of Buildings 3

Number of Stories 2

Year Built/Renovated 1979

Rentable Square Feet 7,492

Lot Size 0.24 acre(s)

Type of Ownership Fee Simple

Parking Asphalt

Landscaping Drought Tolerant

Topography Flat

UTILITIES

Electric Individually Metered-Tenant Pays

Gas Individually Metered-Tenant pays

CONSTRUCTION

Foundation Slab

Framing Wood

Exterior Stucco

Parking Surface Asphalt

Roof Pitched Comp Shingle

MECHANICAL

HVAC Central HVAC

7

AERIAL PHOTO

2020-10477, 10481, 10485 LIVE OAK BLVD

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Marcus & Millichap closes

more transactions than any

other brokerage firm.

12

2020-10477, 10481, 10485 LIVE OAK BLVD

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PROPERTY PHOTO

2020-10477, 10481, 10485 LIVE OAK BLVD

10

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

2020-10477, 10481, 10485 LIVE OAK BLVD

RENT ROLL SUMMARY

11

FINANCIAL ANALYSIS

2020-10477, 10481, 10485 LIVE OAK BLVD

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RENT ROLL DETAIL

FINANCIAL ANALYSIS

2020-10477, 10481, 10485 LIVE OAK BLVD

OPERATING STATEMENT

13

FINANCIAL ANALYSIS

2020-10477, 10481, 10485 LIVE OAK BLVD

NOTES

14

FINANCIAL ANALYSIS

2020-10477, 10481, 10485 LIVE OAK BLVD

PRICING DETAIL

15

MARCUS & MILLICHAP ADVANTAGE

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.

Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues for the benefit of our clients.

Optimum financing solutions to enhance value

Enhanced control through investor qualification support

Enhanced control through MMCC’s ability to qualify investor finance contingencies

Enhanced control through MMCC’s ability to monitor investor/due diligence and underwriting to ensure timely, predictable closings

Enhanced control through quickly identifying potential debt/equity sources, processing, and closing buyer’s finance alternatives

WHY MMCC?

National platform operating

within the firm’s brokerage offices

$ 7.18 billion total national

volume in 2019

Access to more capital sources than any other firm in the industry

Closed 1,994debt and equity

financings in 2019

16

2020-10477, 10481, 10485 LIVE OAK BLVD

2020-10477, 10481, 10485 LIVE OAK BLVD

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MARKET

COMPARABLES

2020-10477, 10481, 10485 LIVE OAK BLVD

SALES COMPARABLES MAP

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2020-10477, 10481, 10485 LIVE OAK BLVD(SUBJECT)

634 Shasta St

3863 Colusa Way

Claridge Haus

Sandpiper Apartments

1199 Melton Drive

1816 HIle Drive

846 Taber Ave

Blue St 4 Plexes

523 Teesdale Road

SALES COMPARABLES

ON MARKET COMPARABLES

1

2

3

4

5

7

8

6

9

19

Avg. 6.25%

Avg. 5.62%

0.0

0.8

1.6

2.4

3.2

4.0

4.8

5.6

6.4

7.2

8.0

2020-10477,10481,

10485 LiveOak Blvd

634Shasta St

3863Colusa Way

ClaridgeHaus

SandpiperApartments

1199 MeltonDrive

1816 HIleDrive

846 TaberAve

Blue St 4Plexes

523Teesdale

Road

PROPERTY NAME2020-10477, 10481, 10485 LIVE OAK BLVD

SALES COMPARABLES

Average Cap Rate

SALES COMPARABLES


SALES COMPS AVG

ON MARKET COMPS AVG

20

Avg. .00Avg. .00

0.00

1.50

3.00

4.50

6.00

7.50

9.00

10.50

12.00

13.50

15.00

2020-10477,10481,

10485 LiveOak Blvd

634Shasta St

3863Colusa Way

ClaridgeHaus

SandpiperApartments

1199 MeltonDrive

1816 HIleDrive

846 TaberAve

Blue St 4Plexes

523Teesdale

Road


SALES COMPARABLES

Average GRM

SALES COMPARABLES


SALES COMPS AVG

ON MARKET COMPS AVG

21

Avg. $125.56

Avg. $167.46

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

$200.00

2020-10477,10481,

10485 LiveOak Blvd

634Shasta St

3863Colusa Way

ClaridgeHaus

SandpiperApartments

1199 MeltonDrive

1816 HIleDrive

846 TaberAve

Blue St 4Plexes

523Teesdale

Road


SALES COMPARABLES

Average Price Per Square Foot

SALES COMPARABLES


SALES COMPS AVG

ON MARKET COMPS AVG

22

Avg. $91,563

Avg. $163,860

$0

$30,000

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000

$240,000

$270,000

$300,000

2020-10477,10481,

10485 LiveOak Blvd

634Shasta St

3863Colusa Way

ClaridgeHaus

SandpiperApartments

1199 MeltonDrive

1816 HIleDrive

846 TaberAve

Blue St 4Plexes

523Teesdale

Road


SALES COMPARABLES

Average Price Per Unit

SALES COMPARABLES


SALES COMPS AVG

ON MARKET COMPS AVG

PROPERTY NAME

MARKETING TEAM

2020-10477, 10481, 10485 LIVE OAK BLVD

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


23

SALES COMPARABLES ON MARKET COMPARABLES

Units Unit Type

Offering Price: $1,175,000 4 2BD1BA

Price/Unit: $167,857 1 3BD2BA

Price/SF: $156.83 2 2BD2BA

CAP Rate: 4.83%

GRM: 13.23

Total No. of Units: 7

Year Built: 1979

Underwriting Criteria

Income $88,800 Expenses $32,010

NOI $56,790

2020-10477, 10481, 10485 LIVE OAK BLVD2020 Live Oak Blvd, Yuba City, CA, 95991

1

Units Unit Type

Close Of Escrow: 7/13/2020 8 2 Bdr Bath

Sales Price: $750,000

Price/Unit: $93,750

Price/SF: $133.17

CAP Rate: 5.10%


Year Built: 1971

634 SHASTA ST634 Shasta St, Yuba City, CA, 95991

Units Unit Type

Close Of Escrow: 3/12/2019 8 1 Bdr 1 Bath

Sales Price: $1,200,000 7 2 Bdr 1 Bath

Price/Unit: $75,000

Price/SF: $116.36

CAP Rate: 6.88%


Year Built: 1969

Underwriting Criteria

Income $129,673 Expenses $40,441

Vacancy $6,672

2

NOTES3683 Colusa Highway in Yuba City is a 15-unit property with seven two-bedroom/one-bath units and eight one-bedroom/one-bath units. All of the units, except one, have their own garage. The units, a single-family home, and seven duplexes are all on one parcel. The property was built in 1969 and is all one story.

3863 COLUSA WAY3863 Colusa Hwy, Yuba City, CA, 95993

PROPERTY NAME

MARKETING TEAM

2020-10477, 10481, 10485 LIVE OAK BLVD

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


24


Units Unit Type

Close Of Escrow: 1/7/2019 10 3 Bdr Bath

Sales Price: $1,225,000

Price/Unit: $122,500

Price/SF: $102.08

CAP Rate: 7.30%


Year Built: 2004

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CLARIDGE HAUS809-813 F St, Marysville, CA, 95901

4

Units Unit Type

Close Of Escrow: 2/28/2019 1 Studio Bath

Sales Price: $2,625,000 34 1 Bdr 1 Bath

Price/Unit: $75,000

Price/SF: $150.62

CAP Rate: 5.70%


Year Built: 1977

SANDPIPER APARTMENTS815 C St, Marysville, CA, 95901

Units Unit Type

On Market 5 2 Bdr 1 Bath

List Price: $799,000


Price/SF: $135.33

CAP Rate: 5.60%


Year Built: 1985

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1199 MELTON DRIVE1199 Melton Drive, Yuba City, CA, 95991

PROPERTY NAME

MARKETING TEAM

2020-10477, 10481, 10485 LIVE OAK BLVD

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


25


Units Unit Type


List Price: $2,250,000


Price/SF: $166.67

CAP Rate: 6.60%


Year Built: 1945

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1816 HILE DRIVE1816 Hile Drive, Yuba City, CA, 95901

7

Units Unit Type


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


Price/SF: $191.18

CAP Rate: 5.30%


Year Built: 1970

846 TABER AVE846 Taber Ave, Yuba City, CA, 94991

Units Unit Type


List Price: $1,650,000


Price/SF: $164.28

CAP Rate: 5.22%


Year Built: 1962

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BLUE ST 4 PLEXES912-920 Blue St, Marysville, CA, 95901

PROPERTY NAME

MARKETING TEAM

2020-10477, 10481, 10485 LIVE OAK BLVD

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


26


Units Unit Type


List Price: $469,000


Price/SF: $179.83

CAP Rate: 5.40%


Year Built: 1988

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523 TEESDALE ROAD523 Teesdale Road, Yuba CIty, CA, 95991

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2020-10477, 10481, 10485 LIVE OAK BLVD

RENT COMPARABLES MAP

2020-10477, 10481, 10485 LIVE OAK BLVD(SUBJECT)

Sandpiper Cove Apartments

1291 Plumas St

536 Forbes

1199 Melton Drive

523 Teesdale Road

846 Taber Ave

910-920 Blue St

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

7

1

2

3

5

6

27


RENT COMPARABLES

28

AVERAGE OCCUPANCY

Avg. 100.00%

0

10

20

30

40

50

60

70

80

90

100

2020-10477,10481,

10485 LiveOak Blvd

SandpiperCove

Apartments

1291Plumas St

536 Forbes 1199 MeltonDrive

523Teesdale

Road

846 TaberAve

910-920Blue St


RENT COMPARABLES

29

AVERAGE RENT - MULTIFAMILY

Avg. $1,131

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2020-10477,10481,

10485 LiveOak Blvd

SandpiperCove

Apartments

1291Plumas St


523Teesdale

Road

846 TaberAve

910-920Blue St

3 Bedroom

Avg. $885

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2020-10477,10481,

10485 LiveOak Blvd

SandpiperCove

Apartments

1291Plumas St


523Teesdale

Road

846 TaberAve

910-920Blue St

1 Bedroom

Avg. $1,042

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2020-10477,10481,

10485 LiveOak Blvd

SandpiperCove

Apartments

1291Plumas St


523Teesdale

Road

846 TaberAve

910-920Blue St

2 Bedroom

PROPERTY NAME

MARKETING TEAM

2020-10477, 10481, 10485 LIVE OAK BLVD

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


30

YEAR BUILT: 1979

rentpropertyname1rentpropertyaddress1

Unit Type Units SF Rent Rent/SF

2BD1BA 4 1,000 $900 $0.90

3BD2BA 1 1,200 $1,600 $1.33

2BD2BA 2 1,146 $1,100 $0.96

Total/Avg. 7 1,070 $1,057 $0.99

2020-10477, 10481, 10485 LIVE OAK BLVD2020 Live Oak Blvd, Yuba City, CA, 95991

OCCUPANCY: 100% | YEAR BUILT: 1962

1

NOTESPoolFitness CenterLaundry FacilitiesClubhouse


1 Bdr 1 Bath 14 700 $1,175 $1.68

2 Bdr 1 Bath 76 950 $1,325 $1.39

Total/Avg. 90 911 $1,302 $1.43

SANDPIPER COVE APARTMENTS375 McRae Way, Yuba City, CA, 95991

2


NOTES

These larger units have garages. This is a newer building, built 2005.


2 Bdr 1.5 Bath 8 1,028-1,029 $1,050-$1,100 $1.05

Total/Avg. 8 1,029 $1,075 $1.05

1291 PLUMAS ST1291 Plumas St, Yuba City, CA, 95991

PROPERTY NAME

MARKETING TEAM

2020-10477, 10481, 10485 LIVE OAK BLVD

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


31


3


2 Bdr 1 Bath 4 750 $900 $1.20

1 Bdr 1 Bath 1 600 $850 $1.42

3 Bdr 2.5 Bath 1 800 $997 $1.25

Total/Avg. 6 733 $908 $1.24

536 FORBES536 Forbes, Yuba City, CA, 95991


4


2 Bdr 2 Bath 5 800 $910 $1.14

Total/Avg. 5 800 $910 $1.14

1199 MELTON DRIVE1199 Melton Drive, Yuba City, CA, 95991

5



3 Bdr 2 Bath 2 1,300 $1,265 $0.97

Total/Avg. 2 1,300 $1,265 $0.97

523 TEESDALE ROAD523 Teesdale Road, Yuba CIty, CA, 95991

PROPERTY NAME

MARKETING TEAM

2020-10477, 10481, 10485 LIVE OAK BLVD

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


32


6


2 Bdr 1 Bath 1 900 $1,040 $1.16

1 Bdr 1 Bath 1 743 $630 $0.85

Total/Avg. 2 822 $835 $1.02

846 TABER AVE846 Taber Ave, Yuba City, CA, 94991


7


2 Bdr 1 Bath 12 837 $981-$1,025 $1.20

Total/Avg. 12 837 $1,003 $1.20

910-920 BLUE ST910-920 Blue St, Marysville, CA, 95901

Daniel Kapic

Broker of Record, CA

(916) 724-1451

Lic: CA 01437375

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Offering Memorandum...2020-10477, 10481, 10485 LIVE OAK BLVD 2020 Live Oak Blvd • Yuba City, CA...

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