Multifamily Transit-Oriented Development Projects

Transcription

1 OFFERING MEMORANDUM KEARNEY STREET LOFTS Multifamily Transit-Oriented Development Projects San Pablo Avenue 921 Kearney Street El Cerrito, CA AVENUE LOFTS Offered by Clayton Jew LIC # kiddermathews.com

2 Table of Contents Table of Contents 1. Executive Summary 2. Project Overviews 3. Investment Highlights 4. Location Overview Aerial Map Transportation Map Map 5. Market Overviews San Francisco Bay Area Overview Market Rent Survey Disclaimer The 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 Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews. This Marketing Brochure has been prepared to provide summary, unverified information 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 due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future 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 or asbestos, 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 any tenant 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 be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

3 Executive Summary The Offering Kidder Mathews ( KM ) as Exclusive Broker, is pleased to offer for purchase, or investment, two outstanding multifamily residential development projects San Pablo Avenue and 921 Kearney Street, El Cerrito, CA ( Properties ) are located in the in the Heart of El Cerrito s Downtown Theatre and Transit District. The Properties represent an extremely rare opportunity to invest as a Capital Partner or to acquire 100% fee simple interest and development rights to a 62-unit site and a 72-unit site unit for total of 134 units of entitlement-eminent residential projects in one of the most vibrant Transit Oriented Districts in the Bay Area. The Properties can be acquired separately as well. The Properties are zoned Transit Oriented Mixed Use (TOHIMU) and (TOMIMU), which will allow for Multifamily development, with favorable parking parameters and inclusionary housing requirements. The Developer expects to obtain full entitlements by the December SAN PABLO AVENUE 921 KEARNEY STREET Downtown El Cerrito is experiencing a revitalization as the Specific Plan calls for a vision of growth and expansion, particularly along the north/ south thoroughfare of San Pablo Ave. The proximity to BART and other transportation makes this a superb opportunity to participate in a long-term investment. PROPERTY OVERVIEW Permitted Use Development Potential Estimated Completion Price Multifamilty 134 Units Fully leased in 30 months Contact Clayton Jew

4 Project Overviews The El Cerrito Development Projects consists of two development sites located in the heart of El Cerrito s Downtown Theatre and Transit Districts. Both sites are within walking distance to one of two BART stations in El Cerrito and retail amenities, and ideally suited for multifamily residential use. The sites are being reviewed and the developer is seeking discretionary approvals by the end of The plan proposes the development of 62 units over 6 stories and 72 units over 5 stories. THE AVENUE LOFTS SAN PABLO AVENUE Land Size Existing Building Planned Construction Planned Residential Planned Parking 11,114 Square feet Raw land Type 3 construction, 6 stories, wood frame over podium 62 Multi family residential units 31 Car puzzle lift system Entitlement Approval in November 2017 Assessors/ Block Lot Zoning District Height/Bulk District Occupancy Classification TOHIMU (Transit Oriented Mixed-Use) 65 Foot limit (85 with state density bonus) TOHIMU: Flex -Flex/Commercial on ground floor -Minimum 0.5 parking/unit -Maximum 1.0 parking/unit

5 Project Overviews THE KEARNEY STREET LOFTS 921 KEARNY STREET Land Size Existing Building Planned Construction Planned Residential Planned Parking 13,364 Square feet Raw land Type 5 construction, 5 stories, wood frame 72 multi-family residential units 36 Car puzzle lift system Entitlement Approval in December 2017 Assessors/ Block Lot Zoning District Height/Bulk District Occupancy Classification TOMIMU (Transit Oriented Mixed-Use) 55 Foot limit (65 with state density bonuses) TOMIMU: -Flex/Commercial on ground floor -Minimum 0.5 parking/unit -Maximum 1.5 parking/unit

6 Investment Highlights The Transit-Oriented Development Projects will be among the most highly visible residential projects delivered in an outstanding location of an established East Bay city. TRANSIT-ORIENTED DEVELOPMENT SITES Rare opportunity to control two residential development sites in proximity to two major BART Stations. Discretionary approvals from a pro-growth city planning department, nearly entitled and ready for construction. STRONG RESIDENTIAL BAY AREA MARKET International hub for technology, medical research, robotics, bio-technology, health care, education and others. 575,000 new jobs created in the Bay Area while only 8,000 units per year are expected to be added over the next four years Bay Area unemployment rate is under 4% which is among the lowest in the State of California. Five year average multifamily vacancy rate around 3.8%. El Cerrito has no inclusionary zoning or rent control as do the surrounding cities of Richmond, Berkeley and Oakland. DOWNTOWN EL CERRITO The El Cerrito Development Projects are in the path of City of El Cerritos growth plans for revitalization and expansion, particularly along the major north/south thoroughfare San Pablo Avenue. The San Pablo Avenue Specific Plan envisions a walk-able, transit-friendly corridor with a mix of residential, commercial and public uses. With emphasis on higher density, mixed-use and multi-family development. El Cerritos housing stock is typically characterized by single-family homes, while the demand for multifamily housing is strong and expected to grow. Average rental rates have increased over 60% since 2010.

7 Investment Highlights NEARBY AMENITIES El Cerritos economic development action plan emphasizes new business and housing, while keeping attention to the environment, traffic access, and pedestrian and bicycle friendly streets. Larger retailers in the Uptown and Downtown subareas generate over 80% of the taxable sales in El Cerrito, although the majority of the smaller retail buildings are older in construction as these building are updated they will attract higher paying quality tenants. El Cerrito Del Norte BART station is going through an internal remodel which will accommodate more ridership due to the increase in housing and retail projects nearby. Nearby Parks include Central Park, Fairmont Park, Creekside Park El Cerrito Community Swim Center and Casa Cerrito Recreation Center. UNPARALLELED ACCESS AND TRANSPORTATION The projects are ideally situated on the route of express bus service to Berkeley, Oakland and San Francisco by AC Transit providing connectivity to these major employment centers within 30 minutes at affordable fares. Only a short 10-minute walk to a BART station, providing rail transit to downtown Berkeley in 6 to 9 minutes with its proximity to UC Berkeley s 35,000 students and 10,000 employees, 20 minutes to Oakland and 30 minutes to San Francisco. Each project site has a Walk Score of over 80, Very Walkable. Most errands can be accomplished on foot. The development plans call for a fleet of shared cars in the garage and free membership into the car share service will be provided for all residents. To complement 1 bike per unit bicycle parking provided in secured racks in the garage, the plans will provide a bicycle repair station in the garage. All residents will receive a prepaid $20 Bikelink card providing dry and secure parking at most BART Stations, UC Berkeley campus and downtown Berkeley at a nominal cost.

8 Location Overview Project Location El Cerrito, CA is located on the eastern shore of the San Francisco Bay and is bordered by Albany and Kensington to the south, the Richmond annex to the west, East Richmond Heights to the north, and Wildcat Canyon Regional Park to the east. The city fronts along Interstate 80 with Interstate 580 located further west. The City s primary transportation infrastructure consists of the El Cerrito Plaza and El Cerrito Del Norte BART stations, along with several local bus lines operated by AC Transit, providing access to the surrounding area and the nearby cities of Albany, Berkeley, and Richmond. In addition to local service, El Cerrito is also served by AC Transit s Transbay buses that provide service to the San Francisco Transbay Terminal. El Cerrito is known for its unparalleled highway access and available public transit options. Pleasant climate, numerous parks and recreational facilities and involved residents makes this quiet East Bay city a highly desirable to live. El Cerrito residents enjoy the 80-acre tree-lined Hillside Park open space, as well as 45 acres of parks, 28 acres of school recreational area, and 38 acres of other amenities including Ohlone Greenway, a landscaped area which runs along the BART right of way the length of the city and is popular with walkers, runners and bicyclists. BERKELEY ALBANY KENSINGTON EL CERRITO RICHMOND

9 Location Overview El Cerrito CITY OF EL CERRITO Mill Valley San Rafael Tiburon San Pablo MARIN COUNTY Sausalito Martinez Lafayette Berkeley CONTRA COSTA COUNTYPleasant Hill Emeryville Richmond El Cerrito CITY OF Oakland EL CERRITO Mill Valley San Francisco Tiburon Alameda Berkeley SAN FRANCISCO COUNTY MARIN COUNTY Sausalito Daly Brisbane City San Francisco South SAN FRANCISCO San Francisco COUNTY PACIFIC OCEAN PACIFIC OCEAN Orinda Oakland International Airport Oakland International Airport South San Foster City Mateo San Francisco SAN MATEO COUNTY San Francisco Pacifica Redwood International Airport San City Carlos Burlingame SAN MATEO COUNTY San Mateo Palo Menlo Alto Foster City Woodside Park San Carlos Danville San Ramon Castro Valley Hayward ALAMEDA COUNTY Brisbane Burlingame Half Moon Bay Lafayette ALAMEDA COUNTY CONTRA COSTA COUNTY Alameda San Francisco International Airport Pacifica Daly City Walnut Creek Emeryville Oakland Walnut Creek Concord Orinda Dublin Livermore Dublin Livermore Danville San Ramon Castro Valley Union City Hayward Fremont Newark Union City Fremont SANTA CLARA COUNTY Mountain View Newark Redwood City

10 Location Overview HILLSIDE NATURAL AREA EAST RICHMOND EL CERRITO 921 KEARNEY STREET OHLONE GREENWAY SAN PABLO AVENUE Central Avenue

11 Location Overview Castro Vista Park Playland Not at the Beach Moeser Lane Shopping Center 921 KEARNEY STREET San Pablo Ave El Cerrito Natural Grocery European Auto Center SAN PABLO AVENUE Fairmount Park Pacific East Mall

12 Market Overview SAN FRANCISCO BAY AREA MARKET OVERVIEW The San Francisco Bay Area is one of the strongest economic centers in the United States and the world. Many of the global leaders in the technology industry are either headquartered or maintain a considerable presence in the region. The sector s giants, from Apple and Facebook to Salesforce and Uber, are a robust economic engine, driving considerable employment growth across the Bay Area, both in technology jobs and supporting industries. Since the great recession in , the Bay Area s nine counties have added over 580,000 jobs, expanding the workforce from 3.38 million employees to 3.96 million, and cutting the unemployment rate to 3.1% in April 2017, well below the statewide unemployment rate of 4.8%. Venture capital investment in Bay Area companies, which peaked in the second quarter of 2016 and has eclipsed $6 billion in nine of the last 11 quarters, suggests continued growth in the region s leading industry. While the Bay Area economy has added over 580,000 jobs over the past seven years, employment growth has severely outstripped the construction of housing, and the shortage in supply has caused prices to rise dramatically across the region. Demand is particularly strong for transit-oriented developments that allow residents to commute conveniently to the area s economic centers without a car. The East Bay is the region s fastest-growing area in terms of tech employment, reporting 4.1% expansion in the year ending May 2017, according to Beacon Economics, strengthening the market for housing along Alameda and Contra Costa Counties transit corridors.

13 Market Overview SF-OAKLAND-HAYWARD METRO AREA EMPLOYMENT ANNUAL UNEMPLOYMENT RATE: SF METRO & CA Source: Bureau of Labor Statistics Source: Bureau of Labor Statistics BAY AREA EMPLOYMENT GROWTH VENTURE CAPITAL INVESTMENT: BAY AREA Source: California EDD Source: PWC MoneyTree Report

14 Market Overview MULTIFAMILY OVERVIEW Over the past 5 years, fueled by the real estate boom and regional growth in jobs, the El Cerrito multifamily market has outpaced expectations. Average asking rents have increased at an average rate of 7.6 percent annually since 2012 with vacancy rates also decreasing during the same time period. The investment market has also strengthened with asking prices increasing approximately 25 percent year over year since MARKET RENT SURVEY 4 COMPARABLES 1 Metro Village at Town Center The Higby Del Norte Place The Aquatic 1 5 3

15 Market Overview Market Rent Survey Metro El Cerrito Plaza Units 128 Built 2017 Occupancy Affordable 15% 1 Village at Town Center San Pablo Avenue 2 Units 159 Built 2007 Occupancy 94% Affordable 15%) UNIT MIX # UNITS MIN SF MAX SF (LOW) 1BR/1BA $2,790 $2,940 2BR/2BA 59 1,066 1,153 $3,280 $3,335 3BR/2BA 6 1,412 1,412 $4,520 $4,610 Community Apartment Interior Finishes (HIGH) 158 covered parking spaces, onsite bike storage, outdoor BBQ grills In-unit washer and dryer, central HVAC, stainless steel appliances Hardwood style floors, cultured marble countertops, designer cabinets UNIT MIX # UNITS MIN SF MAX SF (LOW) 1BR/1BA $2,075 $2,850 2BR/1BA 1 1,095 1,095 $2,540 $3,615 2BR/2BA ,075 $2,580 $3,675 2BR/2BA+ 6 1,025 1,150 $2,975 $3,850 Community Apartment Interior Finishes Fitness center, controlled access, covered parking In-unit washer and dryer, central heat, patios and balconies Tile and carpet floors, vinyl countertops, wood cabinets (HIGH)

16 Market Overview Market Rent Survey The Higby 3015 San Pablo Avenue Units 98 Built 2015 Occupancy 99% Affordable 7% Del Norte Place San Pablo Avenue 3 4 Units 135 Built 1993 Occupancy 97% Affordable 21%) UNIT MIX # UNITS MIN SF MAX SF (LOW) STUDIO $2,545 $2,825 1BR/1BA $2,587 $3,100 1BR/1BA $3,055 $3,150 2BR/1BA 6 1,012 1,030 $3,199 $3,800 2BR/2BA 19 1,155 1,155 $3,228 $4,000 3BR/2BA 2 1,345 1,416 $4,261 $5,495 Community Apartment Interior Finishes (HIGH) Fitness center, controlled access, 98 covered parking spaces, roof deck In-unit washer and dryer, central HVAC, patios and balconies Hardwood style floors, cultured marble countertops, designer cabinets UNIT MIX # UNITS MIN SF MAX SF (LOW) 1BR/1BA $1,941 $2,704 2BR/1BA $2,409 $2,943 2BR/2BA $2,229 $3,060 Community Apartment Interior Finishes (HIGH) Fitness center, controlled access, clubhouse and business center In-unit washer and dryer Tile and carpet floors, cultured marble countertops, designer cabinets

17 Market Overview Market Rent Survey The Aquatic th Street, Berkeley Units 58 Built 2015 Occupancy 91% Affordable 7% 5 UNIT MIX # UNITS MIN SF MAX SF (LOW) STUDIO $2,606 $2,606 1BR/1BA $2,850 $3,526 2BR/2BA 8 1,052 1,116 $3,782 $4,292 Community Apartment Interior Finishes Fitness center, controlled access, covered parking, roof deck (HIGH) In-unit washer and dryer, central HVAC, stainless steel appliances Hardwood style floors, quartz countertops, designer cabinets

18 Contacts Clayton Jew LIC # Kidder Mathews 101 Mission Street, Suite 2100 San Francisco, CA kiddermathews.com