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Income Property Group
Charlie Kennedy 949.702.2940 [email protected]
123 Main St.
Garden Grove, Ca. 92843
Presented to:
Mr. Owner
Presented by:
Charlie Kennedy
[email protected]
Cell phone 949.702.2940
2 San Joaquin Plaza • Newport Beach • Ca • 92660
November 12, 2010
Mr. Owner
123 owner address Newport Beach, Ca. 92663
Re: 123 Main Street
Garden Grove, Ca. 92843
Dear Mr. Owner,
Thank you for the opportunity to introduce ourselves and allowing us to put together a professional market evaluation on your income property. Through hard work and commitment, it is our goal to assist you in improving your position in the Real Estate Investment Market. Enclosed you will find the following…
KW Commercial company information
Marketing Plan
Sales Comparables
Financial Analysis of your income property
Opinion of Value
Investment Information
Executive Summary
Our Team of Top performing brokers at KW Commercial continue to list and close more apartment transactions than any other firm in Southern California. In addition to having a tremendous feel for the market, we also track more On‐Market inventory than anyone in the business. Whether you are an investor looking for TOP DOLLAR when selling, or GREAT VALUE when buying, we can assist you in accomplishing your investment objectives. We look forward to exceeding your expectations.
Thank you in advance for the opportunity to serve.
Cordially,
Charlie Kennedy
Table of Contents
1
About Keller Williams
Our Coverage
KW Commercial Philosophy
Our Beliefs
What Others are saying about us
Our Community Outreach
Executive Team
Who we are
Investment Sales
2
Marketing Plan
Transation History
Marketing Research
Marketing Plan
Sample Postcard
Marketing Timeline
3
Property Information
Salient Facts
Property Photos
Parcel Map
4
Area Information
Area Description
Demographics
5
Rent Comparables
Rent Comparable Map
Rent Comparables Summary
Rent Comparables Graph
6
Sales Comparables
Sales Comparables Summary
Graphs
On Market Summary
7
Financial Analysis
Executive Summary of Value
Price Matrix
Opinion of Value
Investment Information
Exchange Scenario
KW Commercial
#2 San Joaquin Plaza
Newport Beach, CA 92660
www.kwcommercial.com
About
Keller Williams
Commercial
OUR COVERAGE
Keller Williams Realty is the 3rd largest real estate franchise in the
United States – with more than 77,000 associates, 900 commercial
brokers and presence in 690 offices across North America.
United States and Canada
Charlie Kennedy• 949.702.2940 •[email protected] • w.ocincomepropertygroup.com
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its
correctness.
OUR KW COMMERCIAL PHILOSOPHY
At KW Commercial, we believe that you are only as good as the people you are in
business with. That’s why we make it a priority to be in business with the best.
The Keller Williams philosophy of success through people and of seeking out winwin partnerships has fueled our company’s growth to the third-largest real estate
company in the United States.
OUR MISSION:
To build careers worth having, businesses worth
owning and lives worth living.
OUR VISION:
To be the commercial real estate company of choice
for a new generation of real estate agents and
owners.
OUR VALUES:
God, Family, then Business
Charlie Kennedy • 949.702.2940 • [email protected] • w.ocincomepropertygroup.com
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its
correctness.
OUR BELIEFS
● Win-Win
Or no deal
● Integrity
Do the right thing
● Customers
Always come first
● Commitment
In all things
● Communication
Seek first to understand
● Creativity
Ideas before results
● Teamwork
Together everyone achieves more
● Trust
Starts with honesty
● Success
Results through people
Charlie Kennedy • 949.702.2940• [email protected] • w.ocincomepropertygroup.com
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its
correctness.
WHAT OTHER PEOPLE ARE SAYING ABOUT US
Inc. Magazine
No.1645 of the Fastest Growing Companies in America, 2007
Selling Power Magazine
Real Estate Sales Organization of the Year, Stevie Award, 2007
Franchise Times
Top Quartile of Franchise Operations in the
U.S., 2009
Entrepreneur Magazine
No. 71 – Franchise 500 List - 2009
No. 54 – Fastest-Growing Franchises - 2009
No. 61 – America’s Top Global Franchises - 2009
The Wall Street Journal named Keller Williams Realty to its elite “Franchise High Performers” list in 2006, a list of franchises that are, according to an independent research group, FRANdata, “well established, have experienced leadership, exhibit overall financial health and have a proven record of franchising success.”
Source: StartupJournal.com, the Wall Street Journal Center for Entrepreneurs
Entrepreneur Magazine consistently ranks Keller Williams Realty as one of the strongest franchise models in the country.
Source: Entrepreneur Magazine rankings
Charlie Kennedy• 949.702.2940 • [email protected] • w.ocincomepropertygroup.com
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its
correctness.
OUR COMMUNITY OUTREACH
THE KELLER CENTER AT BAYLOR UNIVERSITY
Funded through the vision and generosity of Gary Keller, chairman and co‐founder of Keller Williams Realty in 2007, Baylor University established the Keller Center for Residential Real Estate Research in the Hankamer School of Business to study issues affecting real estate companies, brokers and agents in today’s marketplace. KW CARES
Established in 2003, KW Cares is a 501(c)(3) public charity primarily supported by Keller Williams offices across North America and provides emergency financial assistance to members of the KW family in need and their immediate families, as well as outside charitable organizations.
In 2006, in the aftermath of Hurricane Katrina, KW Cares raised more than $5.3 Katrina
KW Cares raised more than $5 3
million in relief to aid Keller Williams associates in the Gulf States.
In 2007 and 2008, KW Cares supported other charities aligned with the mission and values of Keller Williams Realty, including: Ryan’s Well Foundation, University of Texas M.D. Anderson Cancer Center, Memorial Sloan‐Kettering Cancer Center, Sidney Kimmel Comprehensive Cancer Center at Johns Hopkins.
Charlie Kennedy• 949.702.2940• [email protected] •w.ocincomepropertygroup.com
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its
correctness.
THE TEAM
KELLER WILLIAMS REALTY EXECUTIVE TEAM
Chairman of the Board Gary Keller, Vice Chairman Mo Anderson, CEO Mark Willis and President/COO Mary Tennant provide strategic direction for Keller Williams Realty. With more than 100 years combined real estate experience, KW’s executive team strives for continual growth for the company’s offices, owners, brokers and agents.
BUDDY NORMAN, PRESIDENT KW COMMERCIAL
Buddy Norman was named president of KW Commercial in 2008. A true leader in commercial real estate with approximately two decades of experience within the industry, Norman served in several leadership positions within international commercial firms such as The Staubach Company and Burnham Real Estate before joining Keller Williams Realty. He has built new divisions and trained commercial brokers all over the United States –
h U i d S
including Dallas, Atlanta, Washington D.C. and San Diego. A consistent top producer, i l di D ll A l
W hi
D C d S Di
A i
d
Norman has averaged approximately 400,000 square feet per year of commercial leasing and sales transactions over the last 10 years.
THE KW COMMERCIAL LEADERSHIP COUNCIL (CLC)
KW Commercial, in keeping with the structure and culture of Keller William Realty, has been built through an “agent­centric” business model. The Commercial Leadership Council (CLC) is a group of top Keller Williams Realty commercial agents from across the United States and Canada. The CLC guides the direction, policy and strategy of KW Commercial and is instrumental in the division’s growth and development.
Charlie Kennedy • 949.702.2940• [email protected] • w.ocincomepropertygroup.com
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility
for its correctness.
WHO WE ARE
KW Commercial’s commitment to excellence has been proven time and time again
by the results that our agents produce for their clients.
When you engage KW Commercial, you aren’t simply hiring a broker, you’re hiring
an entire company and a network of dedicated professionals across North America.
INDUSTRIAL
OFFICE
INVESTMENT SALES
RETAIL SERVICES
EDUCATION & MUNICIAL SERVICES
DESIGN, CONSTRUCTION SERVICES
& DEVELOPMENT MANAGEMENT
LAND BROKERAGE
MULTI-FAMILY
Charlie Kennedy• 949.702.2940• [email protected] • www.ocincomepropertygroup.com
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept
responsibility for its correctness.
INVESTMENT SALES
Representing buyers and
sellers of investment real
estate requires local market
knowledge, knowledge of
financing instruments and
capital markets both
domestically and abroad. KW
Commercial’s Investment
Properties associates keep
abreast of the latest trends
and fluctuations in equity and
debt markets, as well as local
and national cap rates. Our
vast network of international,
private
pri ate and institutional
instit tional
investors allows us to match
our clients with the right
investment opportunity, and
maximize return on the
investment.
Charlie Kennedy• 949.702.2940 • [email protected] • w.ocincomepropertygroup.com
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its
correctness.
KW Commercial
Marketing Plan
Insert your transaction summary
EXTENDED MARKETING RESEARCH
We will market your commercial property 24/7 through the most popular Commercial real estate
Websites on the Web.
Charlie Kennedy• 949.702.2940• [email protected] •w.ocincomepropertygroup.com
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its
correctness.
Marketing Plan
The following is a MARKETING PLAN, designed specifically for the sale of your office building, and will commence once we have received an executed authorization to sell.
IMMEDIATE DISTRIBUTION:
A detailed investment analysis will be distributed to the following within 3 days:
All KW Commercial agents
All outside brokers with exchange clients that have contacted our investment division within the last 45 days
All KW Commercial exchange clients
All buyers in our investment database
All outside Investment Real Estate Brokers in our database.
MARKETING PACKAGE: Final draft or complete marketing package for your property will be completed IMMEDIATELY.
Complete marketing packages will be available IMMEDIATELY, containing the following information:
Complete property description and investment analysis
Photographs highlighting the building and unit amenities
Current rent roll and detailed unit information
Available financing information
Recent sale comparables
Local Rent comparables
Site plans and maps
U it fl
l
Unit floor plans
Area and regional maps
ADDITIONAL DISTRIBUTION OF MARKETING PACKAGE:
All purchasers of similar properties in the last twelve months
Copies of packages to each sales manager of the largest commercial and investment firms in Los Angeles County, Orange County and the Inland Empire
All other interested brokers and principals
ADVERTISING:
Los Angeles Times – Your property will be advertised in the Sunday Classified Advertising section
CityFeet.com– This Premier Online Real estate Network will give your property maximum exposure on over 200 high‐profile sites. Top placement on Google, Yahoo and Microsoft Bing viewed by thousands of potential tenants and Buyers everyday. The New York Times/Chicago Tribune/The Washington Post/The Boston Globe/Miami Herald
Internet – Your property will be advertised on various Internet sites to maximize national exposure to principals and brokers.
KWcommercial.com‐ Your property will be listed as the “Featured Property”
Loopnet.com: The premier on‐line multiple‐listing service for investment real estate.
ADDITIONAL EXPOSURE:
MLS‐ Traditionally this Multiple Listing Service has been a resource used by residential brokers to market single family homes. More and more it is becoming a viable source for apartment listings.
RIAOC‐Realty Investment Association Of California, founded in 1968, is an association for the professional marketing of investment real estate.
Email Broadcast‐ We have a database of over 18,000 local apartment owners
Broadcast E‐Mail‐Sent immediately to both principals and brokers.
Marketing Plan (Continued)
TELEPHONE CONTACT:
Our on‐going telephone contact will include:
D il
ld lli b k
d i i l
Daily cold calling brokers and principals
Follow‐up on all inquiries
Owners with other properties listed for sale
Recent sellers of apartment properties
Recent sellers of other investment real estate
MORTGAGE BROKERS:
We will contact mortgage brokers to establish potential financing for the project.
MARKETING COMMITMENT:
To ensure success in the marketing of your property, we commit to the above marketing plan.
Extended Marketing Research
POSTCARD SAMPLE
KW Commercial
#2 San Joaquin Plaza
Newport Beach, CA 92660
10 Units
Garden Grove
Return Service Requested
100% Occupied
Enclosed Garages / On – Site Laundry
Individually Metered for Gas & Electric
For more information or for a free evaluation
of your own property contact:
Charlie Kennedy
949.702.2940
[email protected]
Income Property Group
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept
responsibility for its correctness.
Sample Marketing Timeline
MONTH
`
1
2
3
MARKETING START-UP
1) Prepare Marketing Brochure
2) Powerpoint Presentation
FORUMS AND MEETINGS
1) Present at KW Weekly Sales Meeting
2) Local Apartment Association
MARKETING
1) Just Listed Flyer
2) Email to Outside Brokers
3) Postcards to brokers and principals
CONTACTS
1)
2)
3)
4)
5)
Contactt Active Buyers and Sellers
Contact Exchange Buyers
Contact Owners of Similar Properties
Submit to MLS
Post to KWCLS
PRINT AND ONLNE MARKETING
r 1)
2)
3)
4)
Craigslist
OC Metro or OC Bus. Journal
Company website
Loopnet and CoStar
FEEDBACK
1) Written Communication
2) Oral Update
3) Meetings (as needed)
CLOSED ESCROW
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
4
5
6
Property
Information
Summary of Salient Facts
Address:
123 Main Street
Garden Grove, Ca. 92843
Year Built:
Number of Units:
Building Size:
Lot Size:
Number of Buildings:
Number of Stories:
Assessor's Parcel Number:
1958
10 Units
8,596
12,006
1
2
100-503-03
Construction Type:
Roof:
Carports:
Garages:
Traditional, Stucco/Frame
Composite Shingle
1 up front
9
Metering:
Average Unit Size (S/F):
Average Rent per Unit:
Current Occupancy:
Income Property Group
Electricity:
Gas:
Water:
Individual
Individual
Master
100%
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept
responsibility for its correctness.
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
Area
Information
Garden Grove is a vibrantly progressive and growing city located just south of Los Angeles in Orange
County, California. Our motto, "The City of Youth and Ambition," accurately reflects this culturally diverse
community of almost 170,000 people. Garden Grove is home to four annual cultural festivals that
celebrate the Vietnamese, Korean, Arabic, and American heritage. Garden Grove's Strawberry Festival,
now more than 45 years old, is the largest community-based Memorial Day event in the western United
States.
Garden Grove is conveniently located less than 1 mile away from Disneyland, seven miles from Knott's
Berry Farm, nine miles from local beaches, and 10 miles from John Wayne Airport. The beautiful Mojave
Desert and San Bernardino Mountains are also just a short drive away.
Schools in the Garden Grove Unified School District have been rated as some of the best and safest in
the County. With 45 elementary schools, nine junior high schools, eight high schools, and five community
colleges, Garden Grove can meet all of your family's educational needs.
The City of Garden Grove has many services to offer its community, including employment assistance,
educational programs, recreational programs, and family entertainment. Garden Grove has 7 fire
stations and 13 police stations/substations helping to make our city one of the safest places to live in
California. The City's staff of over 626 full-time employees is supported by more than 100 communityminded volunteers.
Our community has a proud reputation for its outstanding commitment to volunteerism. Garden Grove is
home to the highest number of churches and places of worship per capita in California, including the
world-famous Crystal Cathedral. With safe streets, warm, sunny weather year-round, and religious and
cultural diversity; it's no wonder that residents consider Garden Grove a good place to call home.
Located in Orange County, California, the City of Garden Grove (17.8 sq.miles) is home to over 169,000
residents and is a friendly, spirited and balanced community rich in diversity -- a city with a view to the
future. Incorporated June 18, 1956, the City is celebrating 47 years of cityhood this year and 129 years
since the founding of Garden Grove in 1874 by Dr. Alonzo Cook. The city motto is "City of Youth and
Ambition." The city flower is the Orange Tropicana Rose and the city tree is Flame Coral.
Crystal Cathedral
Located in Garden Grove, California, the Crystal
Cathedral was designed by American Institue of
Archetects gold medal winner Philip Johnson with his
partner John Burgee. Is is home base for the international
Crytal Cathedral Ministries, including a congregation of
over 10,000 members and the internationally televised
"Hour of Power"
Demographics - Garden Grove, Ca.
Population
0-15
16-21
22-34
35-44
45-54
55-64
65+
6220 (14.2%) 2015 (4.6%) 5079 (11.6%) 3845 (8.8%) 2289 (5.2%) 1247 (2.8%) 1391 (3.2%)
Male
Female 6199 (14.2%) 1548 (3.5%) 4889 (11.2%) 3321 (7.6%) 2428 (5.5%) 1448 (3.3%) 1869 (4.3%)
Total Population = 43,788
Male Marital Status
Married
Separated
Divorced
Unmarried
7,092
1,752
936
6,180
806
1,892
1,419
1,906
2,175
1,353
785
Married
Separated
Divorced
Unmarried
44.4%
11.0%
5.9%
38.7%
Income (x $1000)
0-9.9
10-24.9
25-34.9
35-49.9
50-74.9
75-99.9
100+
Female Marital Status
Education
7.8%
18.3%
13.7%
18.4%
21.0%
13.1%
7.6%
No High School
11,505
44.5%
High School
AA Degree
BA/BS
Grad Degree
10,323
1,330
2,098
574
40.0%
5.1%
8.1%
2.2%
$0-799
$800-1249
$1250-1999
$2000+
392
837
2,090
270
10.9%
23.3%
58.2%
7.5%
Executive
Specialist
Sales/Technical
Farmer/Fisher
Craft/Repair
Blue Collar
1,317
1,930
3,831
97
2,927
1,900
11.0%
16.1%
31.9%
0.8%
24.4%
15.8%
Number Of Cars
1
2
3
4+
None
5.4%
25.9%
49.1%
10.7%
4.5%
2.5%
2.1%
Monthly Homeowner Cost
50.0%
12.6%
8.0%
29.4%
Profession
Travel time To Work (minutes)
890
0-10
4,275
10-20
8,119
20-40
1,767
40-60
736
60-90
408
90+
342
Work At Home
7,296
1,841
1,170
4,286
Monthly Renter Cost
$0-499
$500-749
$750-999
$1000+
458 9.5%
1,815 37.7%
1,373 28.5%
1,168 24.3%
© 2007 DataQuick Information Systems. This information is compiled from public records and is not guaranteed.
2,871
3,960
1,670
1,007
924
27.5%
38.0%
16.0%
9.7%
8.9%
Rent
Comparables
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
Property Location
11521 Stuart Drive
#
Units
Year
Built
20
1960
Bldg.
Sq. Ft.
Garden Grove, Ca
11622 Stuart Drive
16
1960
9,288
Garden Grove
11876 Stuart Drive
22
1960
Garden Grove
14202 Buena Street
8
1961
5,337
Garden Grove
Property Averages
17
1960
7,313
Subject Property
10
1958
8,596
123 Main Street
garden Grove
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
Unit
Mix
Rent
Occupancy
16 1+1
$975
95%
4 2+1
$1,250
10 1+1
$952
6 2+1
$1,203
12 1+1
$850
10 2+1
$1,175
4 1+1
$850
4 2+1
$1,182
$876
$1,186
3 1+1
$800
7 2+1
$1,000
95%
95%
Sales
Comparables
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
Property Address
14 Multi-family Units
Units
Mix
Rent
ATOS
Year
Built
Square
Feet
Sale
Price
Price/
Unit
GRM
CAP
Rate
Down Pmt
DOM
14
12- 1+1
-
1960
8,155
$1,425,000
$101,786
8.51
7.50%
30%
1960
9,288
$1,575,000
$108,438
9.61
6.39%
30%
11502 Stuart Drive
2 - 2+1
Garden Grove
16 Multi-family Units
16
16 - 1+1
$
914.00
11662 Stuart Drive
124
Garden Grove
16 Multi-family Units
16
8 - 1+1
$
8 - 2+1
$ 1,194.00
4 - 1+1
$
14172 Buena Street
2 - 2+1
$ 1,300.00
1 300 00
Garden Grove
2 - 3+1
$ 1,385.00
4 - 1+1
$
14182 Buena Street
2 - 2+1
$ 1,223.00
Garden Grove
2 - 3+1
$ 1,325.00
9572 Alwood Ave
938.00
1960
11,392
$2,000,000
$125,000
9.93
6.16%
69
Garden Grove
8 Multi-family Units
8 Multi-family Units
8
8
Property Averages
12
Subject Property
10
3 - 1+1
$
907.00
820.00
800.00
1961
5,337
$1,012,500
$156,250
10.18
7.37%
40%
480
1961
5,337
$1,012,500
$156,250
10.50
7.23%
40%
277
1960
7,902
$1,405,000
$129,545
9.75
6.93%
1958
8,596
$1,150,000
$115,000
10.61
5.73%
123 Main Street
Garden Grove
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
COE
Gross Rent Multiplier
12.00
10.00
8.00
6.00
Gross Rent Multiplier
4.00
2.00
0.00
11502 Stuart Drive
11662 Stuart Drive
9572 Alwood Ave
14172 Buena Street
14182 Buena Street
AVERAGE
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
SUBJECT
Cap Rate
8.00%
7.00%
6.00%
5.00%
4.00%
Cap Rate
3.00%
2.00%
1.00%
0.00%
11502 Stuart Drive
11662 Stuart Drive
9572 Alwood Ave
14172 Buena Street
14182 Buena Street
AVERAGE
SUBJECT
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
Property Address
16 Multi-family Units
Mix
16
12 - 1+1
$
4 - 2+1
$ 1,212
16 - 2+1
$ 1,200
9582 Maureen Dr
16 Multi-family Units
Average
Rents
Units
16
944
Year
Built
Square
Feet
List
Price
Price/
Unit
Expense %
1960
10,320
$1,998,000
$124,875
35%
GRM
CAP
DOM
CoOp Fee
10.10
6.20%
61
Active
2
1960
-
$2,599,000
$162,438
28%
11.19
6.40%
633
9571 Maureen Dr
8 Multi-family Units
Active
2.5
8
14202 Buena
4 - 1+1
$
850
4 - 2+1
$ 1,200
8 - 1+1
$
1961
10,231
$1,059,000
$132,375
35%
10.82
5.50%
72
Active
2.5
Garden Grove
8 Multi-family Units
8
882
1960
5,119
$995,000
$124,375
35%
11.32
5.30%
64
12611 Shelly Drive
2.5
Property Averages
Subject Property
Active
10
123 Main Street
3 - 1+1
1960
8,557
$1,662,750
$136,016
33%
10.86
5.85%
1958
8,596
$1,150,000
$115,000
13378%
10.61
5.73%
7 - 2+1
Garden Grove
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
208
Financial
Analysis
Suggested List Price Matrix
Subject Property Address:
Net Operating Income:
Potential Rental Income:
Number of Units:
123 Main Street, GG
$65,868
$112,800
10
Sale Price
CAP
GRM
$/Unit
$980,000
6.72%
8.69
$98,000
$990,000
6.65%
8.78
$99,000
$1,000,000
6.59%
8.87
$100,000
$1,100,000
5.99%
9.75
$110,000
$1,150,000
5.73%
10.20
$115,000
$1 200 000
$1,200,000
5 49%
5.49%
10 64
10.64
$120 000
$120,000
$1,250,000
5.27%
11.08
$125,000
$1,300,000
5.07%
11.52
$130,000
$1,350,000
4.88%
11.97
$135,000
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
Executive Summary of Value
123 Main Street, Garden Grove
In order to establish a value for the subject property, we evaluated both listed and
closed sales comparables, which recently occurred in the surrounding areas. This
material is contained in this presentation.
Based on the information we have reviewed, we recommend the following:
List Price:
Pi
Price
Per
P Unit:
U it
Gross Rent Multiplier:
Income Property Group
$1,150,000
$115 000
$115,000
10.61
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
SALES COMPARABLES AVERAGE VALUE INDICATORS
Subject
Sold Comps
Totals
# of Units:
58 x
$/Unit:
$129,545
$7,513,598
SGI:
$726,733 x
GRM:
9.75
$7,082,740
NOI:
$479,889
CAP:
6.93%
$6,924,805
Average:
$7,173,715
/
Valuation Using Sold Averages
Subject Property Value:
$7,173,715
Price Per Unit:
$123,685
GRM:
9.87
CAP:
6.69%
ON MARKET COMPARABLES AVERAGE VALUE INDICATORS
Subject
On Market Comps
Totals
# of Units:
58 x
$/Unit:
$136,016
$7,888,906
SGI:
$726,733 x
GRM:
10.86
$7,890,504
NOI:
$479,889
CAP:
5.85%
$8,203,231
Average:
$7,994,214
/
Valuation Using On Market Averages Averages
Subject Property Value:
$7 994 214
$7,994,214
Price Per Unit:
$137,831
GRM:
11.00
UNDERWRITING AT A 5.5% INTEREST RATE
Net Operating Income:
$479,889
DCR: /
1.25
Maximum Yearly Debt Service: =
$383,911
Maximum Monthly Debt Service: =
$31,993
Maximum Loan:
=
$5,700,000
SUGGESTED LIST PRICE
Suggested List Price:
$9,500,000
Price Per Unit:
$163,793
Gross Rent Multiplier:
13.07
CAP Rate:
5.05%
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
CAP:
6.00%
Units
Address
City
58
123 Main Street
USA
Price
Cost/Unit
Current GRM
$9,500,000
$163,793
12.86
Down Payment
Percent
Market GRM
$3,800,000
40%
12.28
Loan Amount
Terms
$5,700,000
60% LTV @ 6%, 3 YR. FIXED. 30 YEAR AMOR.
ESTIMATED ANNUALIZED OPERATING DATA:
Potential Rental Income:
Less Vacancy:
Effective Rental Income:
Laundry Income
Scheduled Gross Income:
Less Operating Expenses:
Net Operating Income:
Less Debt Service:
Pre-Tax Cash Flow:
Cash on Cash Return:
Principal Reduction:
Total Return:
3%
34%
State
CA
Current CAP
5.05%
Market CAP
5.41%
Zip
99999
Year Built
1969
Bldg. Sq. Ft.
51,550
ACTUAL
$738,900
($22,167)
$716,733
$10,000
$726,733
($246,844)
$479,889
($408,052)
$71,837
1.89%
$98,006
4.47%
MARKET
$773,700
($23,211)
$750,489
$10,000
$760,489
($246,844)
$513,645
($408,052)
$105,593
2.78%
$98,006
5.36%
3%
33%
SCHEDULED INCOME:
# Units
33
25
Type
1+1
2+2
ESTIMATED ANNUALIZED OPERATING EXPENSES:
Projected Taxes:
$104,500
Insurance: ($340 per Unit)
$19,720
Repairs/Maint: ($250 per Unit)
$14,500
Off Site Mgmt.: (6% of GOI)
$43,604
On Site Mgmt.: ($20/unit/mo.)
$13,920
Utilities: (E,G,W,T)
$29,000
Landscape:
$10,000
Reserves/Misc.: ($200 per Unit)
$11,600
TOTAL:
$246,844
Unit
Sq. Ft.
Average
Rent
$900
$1,275
Total Monthly Rental Income:
(Forecast)
(Forecast) Expense %:
(Forecast)
(Forecast) Expenses/Unit:
(Forecast)
(Actual)
Expenses/Sq. Ft.:
(Actual)
(Forecast)
Current
Income
$29,700
$31,875
$61,575
Leveled
Rent
$950
$1,325
34%
34%
($4,255.93)
$4,256
($4.79)
$4.79
Please Note:
1. Taxes are calculated at a rate of 1.1% .
PROPERTY HIGHLIGHTS
Excellent Unit Mix
Great Orange County Location
Individually Metered for Gas and Electric
Beautifully Landscaped and well Maintained
FOR MORE INFORMATION CONTACT:
Charlie Kennedy
(949) 702.2940
[email protected]
Income Property Group
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.
Leveled
Income
$31,350
$33,125
$64,475
Sale price
Broker Fee 6%
Closing Costs & Fees
Loan Balance
$800,000
(48,000)
(8,800)
(30,000)
Estimated Net Proceeds
$713,200
New Building Price
Down Payment
30%
New Loan Amount
Annual Debt Service
70% LTV, 5.25%, 30 Yr. Amortization
Annual Property Value Increase
Annual Rental Increase
New Property
$2,300,000
$690,000
$1,610,000
$106,686
3%
3%
End of Year
1
End of Year
2
End of Year
3
End of Year
4
End of Year
5
$2,300,000
$2,369,000
$2,440,070
$2,513,272
$2,588,670
$2,666,330
Loan Balance
$1,610,000
(5.25% 30 Yr. Amortization)
$1,587,298
$1,563,375
$1,538,166
$1,511,601
$1,483,607
NOI
+3% Annual Rental Increase
$161,000
$165,830
$170,805
$175,929
$181,207
Debt Service
$106,686
$106,686
$106,686
$106,686
$106,686
Cash Flow
$54,314
$59,144
$64,119
$69,243
$74,521
7.87%
8.57%
9.29%
10.04%
10.80%
Principal Reduction
$22,702
$23,923
$25,209
$26,565
$27,994
Total Return After
Principal Reduction
11.16%
12.04%
12.95%
13.89%
14.86%
$781,702
$876,695
$975,106
$1,077,070
$1,182,724
$690,000
Down Payment 30%
Property Value
+ 3% Annual Increase
CAP
Cash on Cash Return
Equity
Income Property Group
7.0%
The information listed above has been obtained from sources we believe to be reliable; however, we cannot accept responsibility for its correctness.