326 Village Lane, Los Gatos · Los Gatos, CA 95030 $1,900,000 1,832 SF $1,037.12 - 1 06/15/2018 4...

Greg MayoInvestment Advisor

O: 408.883.8003M: 408.438.3180

[email protected] #01964504

Mike PrioloSenior Investment Advisor

O: 408.471.5824M: 408.439.8875


326 Village Lane, Los Gatos326 Village LaneLos Gatos, CA 95030

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326 Village LaneLos Gatos, California 95030

The information contained in the following Investment Summary is proprietary and strictly confidential. It is

intended to be reviewed only by the party receiving it from NAI Northern California Investment Real Estate

Brokerage and should not be made available to any other person or entity without the written consent of Broker.

This Investment Summary 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. Broker 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 improvements thereon, or the financial condition or business prospects of

any tenant, or any tenant’s plans or intentions to continue occupancy of the subject property.

The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable;

however, Broker has not verified, and will not verify, any of the information contained herein, nor has Broker

conducted any investigation regarding these matters and makes no warranty or representation whatsoever

regarding the accuracy or completeness of the information provided. All potential purchasers must take

appropriate measures to verify all of the information set forth herein.

Greg MayoO: 408 883 [email protected] | CA CalDRE #01964504

Mike PrioloO: 408 471 [email protected] | CA CalDRE #01878385

For More Information:

Confidentiality & Disclosure

326 Village Lane, Los Gatos326 Village Lane, Los Gatos, CA 95030

Table of Contents

4 Section 1Property Information

10 Section 2Location Information

15 Section 3Financial Analysis

20 Section 4Sales Comparables

25 Section 5Demographics

28 Section 6Additional Information

Table Of Contents


Section 1

PROPERTYINFORMATION

1

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Property Overview326 Village Lane presents an investor or owner occupantwith a unique and valuable opportunity to acquire anlegacy piece of real estate in one of the strongestsub-markets of the San Francisco Bay Area.

Location OverviewLos Gatos prides itself as a self-contained community.Over 3,000 businesses serve the residents and act as adestination point for visitors who are attracted to itsrestaurants, hotels and variety of shops within apedestrian oriented downtown setting. Los Gatos is oneof the last cities between Silicon Valley and Santa Cruz /beach communities which makes it a logical stop fortourists and locals alike looking for a quick bite to eat or acup of coffee before their trip to the beach.

SALE PRICE: Call Agents

NOI: $67,495

LOT SIZE: 3,220 SF

BUILDING SIZE: 1,842 SF

YEAR BUILT: 1949

ZONING: C2, Los Gatos

MARKET: South Bay/San Jose

SUB MARKET: Los Gatos

Executive Summary


326 Village Lane presents an investor or owneroccupant with a unique and valuable opportunity toacquire an legacy piece of real estate in one of thestrongest sub-markets of the San Francisco BayArea.Historically 326 Village Ln has benefited fromhigh occupancy and excellent demographics. Whenyou couple that with ample parking to the rear (threestalls are owned by 326 Village Ln) ease of accessfrom highway 17 and a locale that has, and willcontinue to be, supply constrained it is apparent326 Village Ln will continue to be a highly soughtafter and valuable asset for the foreseeable future.

Property Overview

Los Gatos is located southeast of San Jose which isone of most affluent suburbs of the South Bay Area.According to Zillow, the median home price in LosGatos is north of $2,000,000 and according toLosGatos.Gov average household incomes top$200,000 annually. Despite the high income andhome prices much of Los Gatos' commercial realestate has remained supply constrained. Much ofthat is due the sentiment of the local citizens tokeep a small-town or village feel for Los Gatos.Currently, some of the highest densities ofcommercial space is located along Santa Cruz Ave.326 Village lane is located right in the heart of thecommercial shopping district as such this propertyhas benefited from high foot traffic counts, excellentlocal demographics and a supply constrainedmarket all of which make 326 Village Ln an excellentopportunity for investors and owner users alike! Thisproperty also benefits from Easy access to highway17 and Route 9.

Location Overview

Property Description


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PROPERTY NAME: 326 Village Lane

PROPERTY ADDRESS:326 Village Lane

Los Gatos, CA 95030

PROPERTY TYPE: Retail

APN: 529-04-049

LOT SIZE: 3,220 SF

GROSS LEASABLE AREA: SF

BUILDING CLASS: C

ZONING: C2, Los Gatos

YEAR BUILT: 1949

NUMBER OF STORIES: 1

Property Details


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Property Highlights• First time on the market in almost 30 years

• Built in 1949

• Building SF +/- 1,800

• Lot SF +/- 3,291

• Multi tenant building (3 suites)

• Short term below market leases

• Low maintenance building

• Affluent Suburb with excellent demographics

• Supply constrained market

• Next to the renown Manresa Resturant

Complete Highlights


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Additional Photos


Section 2

LOCATIONINFORMATION

2

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Retailer Map


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Location Maps


Regional Map


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Aerial Map


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Section 3

FINANCIALANALYSIS

3

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Investment Overview CURRENT FINANCIALS MARKET FINANCIALS

Number of Units 3 3

Approximate Square Footage 1,842 1,842

Operating Data CURRENT FINANCIALS MARKET FINANCIALS

Gross Scheduled Income $74,056 $72,732

Vacancy Cost (5.0%) - $3,702 - $3,636

Gross Operating Income $75,102 $106,137

Operating Expenses - $7,607 - $7,607

Net Operating Income $67,495 $98,530

Pre-Tax Cash Flow $67,495 $98,530

Financial Summary


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Fixed Expenses Expense Expense / Unit % Of Total % Gross Notes

Property Taxes TBD N/A N/A N/A 0.0% Actual 1.1774%

Special Assessments $1,807 $602 23.76% 2.41% Actual

Insurance $3,100 $1,033 40.75% 4.13% Actual

TOTAL FIXED EXPENSES $4,907 $1,635 64.51% 6.53%

Operational Expenses:

Water $1,200 $400 15.77% 1.6% Actual

Reserves $1,500 $500 19.72% 2.0% Estimate $500/unit

TOTAL OPERATIONAL EXPENSES $2,700 $900 35.49% 3.6%

TOTAL EXPENSES: $7,607 $2,535 100% 10.13%

Expenses Sheet


Income Summary CURRENT FINANCIALS Per SF MARKET FINANCIALS Per SF

Market Rental Income $74,056 $40.20 $72,732 $39.49

NNN Reimbursment $4,749 $2.58 $37,042 $20.11

Gross Income $78,805 $42.78 $109,774 $59.60

Expense Summary CURRENT FINANCIALS Per SF MARKET FINANCIALS Per SF

Fixed: Property Taxes TBD "Actual 1.1774%" $0 $0.00 $0 $0.00

Fixed: Special Assessments "Actual" $1,807 $0.98 $1,807 $0.98

Operational: Water "Actual" $1,200 $0.65 $1,200 $0.65

Fixed: Insurance "Actual" $3,100 $1.68 $3,100 $1.68

Operational: Reserves " Estimate $500/ unit" $1,500 $0.81 $1,500 $0.81

Gross Expenses $7,607 $4.13 $7,607 $4.13

Net Operating Income $67,495 $36.64 $98,530 $53.49

Income & Expenses


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TenantName Suite

SuiteSize (SF)

MarketRent

AnnualRent

PricePer SF/YR

LeaseStart

LeaseEnd

East Kennedy Co. Unit A 582 $1,658 $19,904 $34.20 April 2019 March 2021

Hair Salon Unit B 609 $2,550 $30,600 $50.25 September 2019

SPI Unit C 651 $1,962 $23,552 $36.18 October 2016 September 2020

Totals/Averages 1,842 $6,171 $74,056 $40.20

Unit A is is on two year lease with no optionsUnit B has a lease that ends in September of 2019. Tenant would likely renew for 2 or more yearsUnit C has no options in their leaseAnnual rent is quoted on a Gross Basis. Market Rent is on a NNN Basis

Rent Roll


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Section 4

SALESCOMPARABLES

4

Subject Property

326 Village Lane | Los Gatos, CA 95030

-Sale Price: 3,220 SFLot Size:

1949Year Built: 1,842 SFBuilding SF:

-Price PSF: $67,495NOI:

1

22 S Santa Cruz AveLos Gatos , CA 95030

$5,250,000Sale Price: 8,276 SFLot Size:


$1,067.94Price PSF: 4.50%CAP:

04/09/2018Closed: 100%Occupancy:

$236,250NOI:

Two story retail building consisting of a restaurant and hair salon. Both tenants had approximately 4 years left on theirrespective leases. Asset traded at a 4.5% cap rate.

1

2

202 University AveLos Gatos, CA 95030



$1,610.31Price PSF: 06/27/2018Closed:

0%Occupancy:

Property was delivered vacant at COE. Asset was purchased by an owner user.

2

3

221 Almendra AveLos Gatos, CA 95030



$1,037.12Price PSF: 06/15/2018Closed:

0%Occupancy:

3

Sales Comparables


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4

15899 Los Gatos BlvdLos Gatos, CA 95030


1966Year Built: 616 SFBuilding SF:

$2,150.97Price PSF: 08/14/2018Closed:

100%Occupancy:

Property was purchased by the tenant who intends on continuing to operate their business out of this location.

4

Sales Comparables


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Subject Property Price Bldg. SF Price/SF CAP # Of Units

326 Village LaneLos Gatos, CA 95030

- 1,842 SF - 0.00% 3

Sale Comps Price Bldg. SF Price/SF CAP # Of Units Close

122 S Santa Cruz AveLos Gatos , CA95030

$5,250,000 4,916 SF $1,067.94 4.50% 2 04/09/2018

2202 University AveLos Gatos, CA95030

$2,000,000 1,242 SF $1,610.31 - 1 06/27/2018

3221 Almendra AveLos Gatos, CA95030

$1,900,000 1,832 SF $1,037.12 - 1 06/15/2018

415899 Los Gatos BlvdLos Gatos, CA95030

$1,325,000 616 SF $2,150.97 - 1 08/14/2018

Totals/Averages Price Bldg. SF Price/SF CAP # Of Units

$2,618,750 2,152 SF $1,466.58 4.50% 1.25

Sales Comparables Summary


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326 Village Lane | Los Gatos, CA 95030Subject Property

1Los Gatos , CA95030

22 S Santa Cruz Ave 2Los Gatos, CA95030

202 University Ave 3Los Gatos, CA95030

221 Almendra Ave

4Los Gatos, CA95030

15899 Los Gatos Blvd

Sales Comparables Map


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Section 5

DEMOGRAPHICS

5

* Demographic data derived from 2010 US Census

Population 1 Mile 3 Miles 5 MilesTOTAL POPULATION 6,118 53,187 179,150

MEDIAN AGE 43.8 43.6 41.0

MEDIAN AGE (MALE) 47.7 43.9 40.6

MEDIAN AGE (FEMALE) 41.3 43.7 41.6

Households & Income 1 Mile 3 Miles 5 MilesTOTAL HOUSEHOLDS 2,835 21,274 69,152

# OF PERSONS PER HH 2.2 2.5 2.6

AVERAGE HH INCOME $164,214 $165,406 $136,720

AVERAGE HOUSE VALUE $1,110,322 $982,881 $845,525

Ethnicity 1 Mile 3 Miles 5 Miles% HISPANIC 5.4% 6.2% 11.2%

Race 1 Mile 3 Miles 5 Miles% WHITE 91.6% 83.9% 74.1%

% BLACK 0.5% 1.4% 1.7%

% ASIAN 6.3% 12.9% 19.4%

% HAWAIIAN 0.1% 0.1% 0.1%

% INDIAN 0.0% 0.2% 0.7%

% OTHER 1.5% 1.7% 4.2%

Demographics Map


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* Demographic data derived from 2010 US Census

1 Mile 3 Miles 5 Miles

Total Households 2,835 21,274 69,152

Total Persons Per Hh 2.2 2.5 2.6

Average Hh Income $164,214 $165,406 $136,720

Average House Value $1,110,322 $982,881 $845,525

1 Mile 3 Miles 5 Miles

Total Population 6,118 53,187 179,150

Median Age 43.8 43.6 41.0

Median Age (Male) 47.7 43.9 40.6

Median Age (Female) 41.3 43.7 41.6

Demographics Report


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Section 6

ADDITIONALINFORMATION

6

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Mike PrioloSenior Investment Advisor408.471.5824 tel408.439.8875 cell408.471.5824 [email protected]

Professional BackgroundI am a 10 year veteran and I love the commercial realestate industry. I like to look at myself as a financialadvisor, only I use real estate instead of wall street tohelp my clients achieve their goals.

If you are interested in any of the following:

* Increasing the net monthly cash-flow generated byyour investment real estate

* Preserving the equity you've earned over the yearsfrom your investment real estate

* Eliminate management and maintenanceresponsibilities associated with your real estate

Then we should sit down and talk!

I am a 1031 exchange expert, I specialize in Triple Netand Multi-Family assets. I am confident I can assist youin freeing up more time for yourself and putting moremoney in your pocket.

Please feel free to call or email me regarding a 100%complimentary consultation where I can show youexactly how I help my clients achieve what I've outlinedabove.

Education

BA, Real Estate Finance, San Diego State

Agent Profile & Contact 1


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Greg MayoInvestment AdvisorCalDRE #01964504408.883.8003 tel408.438.3180 cell408.883.8003 [email protected]

Professional BackgroundGreg Mayo is a multi family investment specialistwith NAI Northern California. He assists clients withacquisition and disposition of assets.

Greg has a residential and commercial backgroundgiving him a well rounded understanding ofemotional and financial motivating factors buyersand sellers possess.

With over two decades of Bay Area residency, Gregthoroughly knows the markets within the marketsfrom Gilroy up to Sacramento and can help youaccomplish your real property investment goals.

Agent Profile & Contact 2



Greg MayoInvestment Advisor

O: 408.883.8003M: 408.438.3180


Mike PrioloSenior Investment Advisor

O: 408.471.5824M: 408.439.8875


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