Overview

Description

9% CAP, 13.5% Cash on Cash, 7.6 GRM, 3.65% LOAN!

ATTENTION BROKERS! 2% COMMISSION PAID TO SELLING BROKER!

Building Description size 55,750 square feet. Lot size 18,730 square feet. Total units 119 with private baths and kitchens. It is a great central business district location. It is in the heart of Oakland’s central business district close to Lake Merritt.

This very nostalgic property is located at 15th and Harrison in Oakland California. The foundation is slab on grade with footing under supporting walls exterior walls are over wood frame. The building has a roof with a membrane structure. The owner spent $250,000 on a solar heater system and $350,000 on all new dual pane windows. 75% of the units has been renovated at a cost of $800,000. There is new exterior and interior paint. All the units have energy efficient showerheads, incandescent lighting low flow showerheads and water saver toilets at a cost of $200,000. There has been a multimillion-dollar retrofit to the building and is exempt from the soft story list. The sewer lateral has been replaced.

Description of the building is 6 stories plus a mezzanine floor, the building has 55,750 square feet in the building. Building construction has slab on grade foundation with footings on the supporting wall. The building currently has a regulatory agreement with the California Tax Allocation Committee with 25 years left. The building receives a welfare exemption that allows a secure property tax waiver on all ad valorem taxes, only bonds and assessments are paid. This increases the capitalization rate and cash on cash return beyond competing buildings for a greater return. This building provides a great hedge against inflation and recession. Many of the rents are government guaranteed which allow for increases as high as 10% per year. Being exempt from rent control allows for an infinite return on investment, each unit has a private bathroom and kitchen. The property has good access to employment centers. The rear lot has future development potential for additional apartments.

The building was built in 1925, 118 apartments and 1 commercial. Harrison St is a 2-way 4 lane street; 15th street is a one way 2 lane street. Currently part of the parking lot is leased to Kaiser Permanente for their trucks, the balance of the lot is used for parking for the tenants for a total of 45 parking spaces. There are 35 secure storage units in the basement.

The units are all cable ready. There are 2 laundry rooms in the building with 18 units that generate approximately to $2,450 per month. The parking lot is a secure gated lot with a control access to the front door. All units have a private baths, kitchens and are furnished with a refrigerator, stove and working heat. In addition to the 119 units there is also an office on the first floor.

Highlights

• $9,884,381 LOAN AT 3.65% FINANCING FOR 7 MORE YEARS DUE JUNE 2030 CURRENTY AT FIRST REPUBLIC BANK. BUYER MAY TAKE “SUBJECT TO” IF THEY ELECT TO DO SO.
• Existing Cap 9%, Market Cap 14%
• Existing Cash on Cash Return 13.5% Market Cash on Cash Return 25%
• Existing Gross Rent Multiplier 7.6 Market Gross Rent Multiplier 5.6
• 35% Upside in the Rents
• Nostalgic building in great downtown Oakland area near Lake Merritt
• High growth city and area influencing great appreciation potential
• No deferred maintenance - Easy Management

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