SOLD – 265 Vernon Street – 44-Unit Apartment Community

Art Deco Arms
44-Unit Apartment Community
265 Vernon Street, Oakland, CA 

Centrally located in Oakland’s Adams Point district, this 44-unit building is just a block from Lake Merritt and close to downtown Oakland, BART and shopping, including the Whole Foods grocery and Grand Avenue. A spacious tile entrance and lobby open onto a courtyard featuring a sparkling swimming pool.

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Fifteen apartments overlook the pool and fourteen apartments in the rear of the property have balconies overlooking downtown Oakland and San Francisco. Strong on-site management keeps the property looking pristine at all times.

The unit mix is 40 one-bedroom units, a 3-bedroomunit, two 2-bedroom units and a studio for a total of 44 units. Units are very well laid out and most have a large walk-in linen closet/pantry. Within the last seven years, the property has undergone extensive renovation, including balconies, Art Deco façade, pool and pool deck, pool equipment, some windows, several kitchens and bathrooms, walkways, hot water holding tanks, laundry rooms and more.

INVESTMENT SUMMARY

> Well positioned for future rent growth
> Incredible location, low vacancy rate
> No deferred maintenance
> Architect designed facade and professional landscaping

SITE SURVEY 

265 Vernon St . Oakland, CA 9 4 6 1 0
Number of Apartments:       44- units
Assessor’s Parcel Number:  010-0795-011-00
Year Built:                              1960
Number of Buildings:            1
Gross square footage:           27,629 square feet per cty.
Lot Size:                                  13,313 square feet per cty.
Construction:                         Wood frame over concrete
Utilities paid by owner:        Cold and hot water, garbage, common lights, water, garbage
Utilities paid by tenants:      PG&E
Stories:                                    3
Balconies:                                29
Roof type and age:                 Flat age unknown
Pool:                                         Yes
Floors:                                      Mostly carpet
Elevator:                                  1 Hydroelectric
Ranges:                                     Electric
Disposals:                                 Yes
Dishwashers:                           No
Covered parking:                    31 garage spaces
Laundry facilities:                   3 laundry rooms
Fireplaces:                               No
Views:                                      Yes
Intercom entry system:        Yes
Gated parking:                        Yes

Proforma NOI
Current Rents with Estimated Expenses
SGI                                           $561,845
less                                           3% Vac. ($16,855)
EGI                                          $544,990

Less Expenses
Property Taxes                 ($95,000) Estimated New
License                                ($8,248) Estimated
Insurance                           ($6,238) Current
PG&E                                  ($11,541) Actual 2011
Water                                  ($14,090) Actual 2011
Garbage                              ($11,697) Actual 2011
Res. Manager                     ($24,480) Free Rent + Salary
Maintenance                       ($28,092) Est. @ 5% of SGI
Misc./Reserves                  ($11,000) Est. @ $250/unit

Total Expenses                   ($210,368) 37.5% of SGI or $4,781 per unit
EGI                                       $544,990
Expenses                             ($210,368)
NOI                                      $334,622

Value Indicators
Purchase Price                   $5,825,000
Down pmt.                         @ 31% ($1,825,000)
New Loan Amount            $4,000,000
Est.                                      @ 3.7%/30 yrs.

NOI $334,622
Debt Service                      ($220,935)
Cash Flow                           $113,687
Cash on Cash                     6.23%

Cap Rate                             5.74%
GRM                                    10.4
$/Unit                                 $132,386

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