10
OFFERING MEMORANDUM ORIGIN S GROUP PRECISION OF REAL ESTATE CASA MILANO APARTMENTS MARYSVILLE, CA
O F F E R I N G M E M O R A N D U M
ORIGIN S GROUPPRECISION OF RE AL ESTATE
CASA MILANO A P A R T M E N T S
MARYSVILLE, CA
CONFIDENTIALITY AND DISCLAIMER AGREEMENTThe information contained in the following Offering Memorandum is strictly confidential. It is intended to be reviewed only by the party receiving it from ORIGIN S GROUP, Inc. and solely for the purpose of considering the acquisition of the property described herein and should not be used for any other purpose or made available to any other person or entity without the written consent of ORIGIN S GROUP, Inc.
Neither the Seller nor the Agent, nor any of their respective directors, officers, agents, principals or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of the Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of the Offering Memorandum or its contents.
Prospective purchasers are solely responsible of the analysis and verification contained in the Offering Memorandum.
The Seller and its Agents expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or terminate discussions with any entity at any time with or without notice. The Seller and Agent shall have no legal commitment or obligation to any entity reviewing the Offering Memorandum or making any offer to purchase the Property unless and until a written agreement for the purchase of the Property have been fully executed, delivered and approved by the Seller and any conditions to the Seller’s obligations therein have been satisfied or waived.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
ORIGIN S GROUPPRECISION OF RE AL ESTATE
I N V E S T M E N T S U M M A R Y
Address 124 E 13th Street Marysville, CA
Parcel Number 009-235-014
Number of Units 28
Number of Buildings 1
Number of Stories 2
Year Built 1976
Net Rentable Area 15,550 SF
Site Size .58 ACRES
HVAC Window Air Conditioners
Price $2,300,000
Price / Unit $82,143
Price / SqFt $147.91
Cap Rate (Current) 6.26%
Cap Rate (Market) 8.14%
GRM (Current) 9.56
GRM (Market) 7.99
Occupancy 100%
T H E O F F E R I N G
P R O P E R T Y
U T I L I T I E S
A PA R T M E N T F E AT U R E S
• Newly Renovated Units
• Vinyl Flooring
• Updated Landscaping
• On-Site Laundry Room
• Iron Entry Gate
I N V E S T M E N T H I G H L I G H T S
• Value-Add with Rent Increase
• Great Corner Location
• Easy Access to Highway
• Courtyard Layout
• Implement RUBS Program to Significantly Increase Cash Flow
Water / Sewer Owner
Trash Owner
Gas (Hot Water) Owner
Electric Tenant
Phone Tenant
Cable Tenant
CASA MILANOAPARTMENTS
L O C AT I O N M A P
A E R I A L V I E W
F I N A N C I A L A N A LY S I S
Unit Unity Type Square Feet Market Rent Market Rent / SF Actual Rent* Actual Rent / SF*
1 1 Bed / 1 Bath 550 $850 1.55 $770 1.40
2 1 Bed / 1 Bath 550 $850 1.55 $850 1.55
3 1 Bed / 1 Bath 550 $850 1.55 $850 1.55
4 1 Bed / 1 Bath 550 $850 1.55 $638 1.16
5 1 Bed / 1 Bath 550 $850 1.55 $775 1.41
6 1 Bed / 1 Bath 550 $850 1.55 $795 1.45
7 2 Bed / 1 Bath 700 $1,095 1.56 $1,095 1.56
8 2 Bed / 1 Bath 700 $1,095 1.56 $902 1.29
9 1 Bed / 1 Bath 550 $850 1.55 $795 1.45
10 1 Bed / 1 Bath 550 $850 1.55 $770 1.40
11 1 Bed / 1 Bath 550 $850 1.55 $700 1.27
12 1 Bed / 1 Bath 550 $850 1.55 $625 1.14
13 1 Bed / 1 Bath 550 $850 1.55 $795 1.45
14 1 Bed / 1 Bath 550 $850 1.55 $795 1.45
15 1 Bed / 1 Bath 550 $850 1.55 $795 1.45
16 1 Bed / 1 Bath 550 $850 1.55 $850 1.55
17 1 Bed / 1 Bath 550 $850 1.55 $850 1.55
18 1 Bed / 1 Bath 550 $850 1.55 $850 1.55
19 1 Bed / 1 Bath 550 $850 1.55 $770 1.40
20 Studio 1 Bed / 1 Bath 500 $750 1.50 $675 1.35
21 Studio 1 Bed / 1 Bath 500 $750 1.50 $695 1.39
22 1 Bed / 1 Bath 550 $850 1.55 $650 1.18
23 1 Bed / 1 Bath 550 $850 1.55 $770 1.40
24 1 Bed / 1 Bath 550 $850 1.55 $795 1.45
25 1 Bed / 1 Bath 550 $850 1.55 $795 1.45
26 1 Bed / 1 Bath 550 $850 1.55 $795 1.45
27 1 Bed / 1 Bath 550 $850 1.55 $850 1.5528 Studio 1 Bed / 1 Bath 500 $750 1.50 $750 1.50
Total $23,990 1.54 $22,045 1.42
*Based on Rent Roll dated June 2019. Square footage are approximate based on previous Seller disclosure.
R E N T R O L L
F I N A N C I A L A N A LY S I SO P E R AT I N G S TAT E M E N T
ANNUALIZED INCOME PER UNIT ACTUAL PER UNIT MARKETGross Potential Rent $8,591 $240,540 $10,281 $287,880Less Vacancy 5% ($430) ($12,027) ($514) ($14,394)Other Income $71 $1,980 $78 $2,378
Effective Gross Income $8,232 $230,493 $9,845 $275,664
ANNUALIZED EXPENSES PER UNIT ACTUAL PER UNIT MARKETReal Estate Taxes (1%)* $821 $23,000 $821 $23,000Insurance $186 $5,200 $186 $5,200Utilities - Water & Sewer $693 $19,416 $693 $19,416Utilities - Gas $190 $5,316 $190 $5,316Utilities - Electric $60 $1,686 $60 $1,686Utilities - Garbage $168 $4,692 $168 $4,692Pest Control $28 $780 $28 $780Ground Maintenance $21 $600 $21 $600Repairs & Maintenance $220 $6,160 $220 $6,160On-Site Management $114 $3,200 $114 $3,200Management Fee $370 $10,372 $443 $12,414General & Administrative $18 $500 $18 $500Replacement Reserves $200 $5,600 $200 $5,600
Total Expenses $3,090 $86,522 $3,163 $88,564Expenses as % of EGI 38% 32%Expenses / Unit $3,090 $3,163
Net Operating Income $5,142 $143,971 $6,689 $187,300
Cap Rate 6.26% 8.14%GRM 9.56 7.99
*New Taxes based on proposed purchase price.
FINANCINGLoan Amount (LTV 70%) $1,610,000Down Payment $690,000Interest Rate 4.50%Amortization 30 YearsYear Due 2029
INCOME ANNUALGross Potential Rent $240,540Less Vacancy 5% ($12,027)Other Income $1,980Effective Gross Income $230,493Less: Expenses 37.54% ($86,522)Net Operating Income $143,971Cash Flow $143,971Debt Service $97,892 Net Cash Flow After Debt Service 6.68% $46,079 Principle Reduction $25,973Total Return 10.44% $72,052
Cash-on-Cash 6.68%Debt Coverage Ratio 1.47Cap Rate 6.26%GRM 9.56
O P E R AT I N G D ATA
SUMMARYPrice $2,300,000 Units 28Price / Unit $82,143 Rentable SqFt 15,550Price / SqFt $148 Year Built 1976
F I N A N C I A L A N A LY S I S
