Sonata Townhomes8101 Kelton DriveGilroy, CA 95020
Offering Memorandum
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe 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 Marcus & Millichap and
should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters
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SONATA TOWNHOMES
Gilroy, CA
ACT ID ZAB0010145
2
TABLE OF CONTENTS
SONATA TOWNHOMES
3
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Property Photos
Aerial Photos, Regional and Local Maps
Discover Gilroy
FINANCIAL ANALYSIS 02Rent Roll Summary
Operating Statement
Pricing Detail
MARKET COMPARABLES 03Sales Comparables
MARKET OVERVIEW 04Demographic Analysis
Investment Overview
SONATA TOWNHOMES
PROPERTY SUMMARY
OFFERING SUMMARY
PROPOSED FINANCING
First Trust Deed
Loan Amount $5,625,000
Loan Type Proposed New
Interest Rate 3.6%
Amortization 30 Years
Loan Term 5 Years
Loan to Value 75%
Debt Coverage Ratio 1.27
THE OFFERING
Property Sonata Townhomes
Price $7,500,000
Property Address 8101 Kelton Dr, Gilroy, CA
Assessors Parcel Number 790-39-023
Zoning R-3
SITE DESCRIPTION
Number of Units 18
Number of Buildings 5
Number of Stories 2
Year Built/Renovated 1987
Rentable Square Feet 27,000
Lot Size 1.4 acre(s)
Type of Ownership Fee Simple
Parking 18 Garages / 18 Open / 7 Guest
UTILITIES
Water Master metered
Electric Individual
Gas Individual
CONSTRUCTION
Foundation Crawl
Framing Wood Frame
Exterior Wood Siding
Parking Surface Concrete Driveways, Asphalt Open Parking
Roof 30-year Composition
5
SONATA TOWNHOMES
OFFERING SUMMARY
▪ Townhouse complex - 3 BR/1.5 BA
▪ Private Yards / Private garage with opener and direct access
▪ Washer/Dryer Hook Ups
▪ Forced Heat And Air Conditioning
▪ 11 Renovated Units
INVESTMENT HIGHLIGHTS
Sonata Townhomes, consisting of (18) 3 bedroom / 1 ½ bath townhomes in a family oriented residential neighborhood in northwest Gilroy, provides the benefits of a "single family home" lifestyle and historically securing long-term residents for owners. Townhome units are unique in Gilroy and its surrounding neighborhoods, and three bedroom units are even more rare in the local markets. Sonata brings a high demand rental option to this dynamic location in Santa Clara County.
The 18 townhomes in 5 buildings are dispersed on a generous 1.4 acre parcel and open green spaces. 11 of the units have been recently renovated with sophisticated upgrades including new quartz counter tops, interior LED lighting, new vinyl wood plank flooring, fixtures and hardware, window coverings, custom paint, and new appliances. Residents appreciate the added convenience of private fenced patios, the comfort of forced individual air conditioners, washer/dryer hookups, and individual garages with automatic garage door openers and direct in-unit access.
Sonata offers additional rent growth thru a combination of the generous California rent control ordinance (5% + annual CPI index = 7.8% in 2019), and continuation of the unit renovation program for the remaining 7 thus capturing $180 per unit/month income growth. The property has received a clean property inspection report and Section 1 termite clearance, based on the seller’s attention to remediation of maintenance items including, exterior siding and trim repairs, drainage repairs, new LED exterior lighting lends itself to owners pride of ownership.
INVESTMENT OVERVIEW
6
SONATA TOWNHOMES
#
EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Advance Services Inc 2,167
Saint Louise Hospital 500
Gavilan Jint Cmnty Cllege Dst 345
Footh-De Anza Commun Colleg Di 318
Giacalone Electrical Svcs Inc 275
Walmart 259
Cordevalle Golf Club LLC 250
Soares Lumber Company 230
Gilroy Gardens Family Theme Pk 204
Target 200
Costco 196
Communty Slns For Chldrn Fmls 185
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2018 Estimate Pop 22,407 61,088 69,865
2010 Census Pop 18,764 51,069 58,430
2018 Estimate HH 7,051 17,846 20,562
2010 Census HH 5,849 14,807 17,079
Median HH Income $93,159 $88,925 $91,520
Per Capita Income $39,933 $35,295 $37,049
Average HH Income $126,285 $119,981 $125,056
UNIT MIX
NUMBEROF UNITS
UNIT TYPEAPPROX.SQUARE FEET
18 3 BR/1.5 BA 1,500
18 Total 27,000
VITAL DATA
Price $7,500,000 CURRENT YEAR 1
Down Payment 25% / $1,875,000 CAP Rate 5.19% 5.57%
Loan Amount $5,625,000 GRM 12.27 11.68
Loan Type Proposed NewNet Operating Income
$389,569 $417,957
Interest Rate / Amortization
3.6% / 30 YearsNet Cash Flow After Debt Service
4.41% / $82,683 5.92% / $111,072
Price/Unit $416,667 Total Return 10.09% / $189,127 11.81% / $221,411
Price/SF $277.78
Number of Units 18
Rentable Square Feet 27,000
Number of Buildings 5
Number of Stories 2
Year Built / Renovated 1987 / 2020
Lot Size 1.4 acre(s)
7
DETAILED CAPITAL IMPROVEMENTS
8101 Kelton Drive
OFFERING SUMMARY
Exterior
Motorized Garage Doors (18) $8,640
Door and Trim Paint $7,000
Dry Rot Remediation – trim, fascia, parapet walls $12,975
TOTAL CAPITAL IMPROVEMENTS $218,023
Since 2019, Sonata Townhomes has received the following upgrades:
Interior
Full Unit Renovation (11 of 18 units)Includes: Granite kitchen countertops, vinyl plank flooring, bedroom carpeting, full paint, lighting, hardware replacement
$189,408
- Units 2, 3, 4, 7, 8, 9, 10, 11, 14, 15, 18
Sonata Townhomesprovides residents
the best of both worlds ~
The look and feel of“single-home living”,
and the community ofshared open green spaces.
Located in a quiet residential pocket
Sonata Townhomes8101 Kelton
Gilroy, CA
Renovated units feature updated modern bathrooms and kitchens
AERIAL PHOTO
SONATA TOWNHOMES
11
Sonata Townhomes8101 Kelton
Gilroy, CA
REGIONAL MAP
SONATA TOWNHOMES
12
LOCAL MAP
SONATA TOWNHOMES
13
*Total number of employees at multiple metro locations
LOCATION HIGHLIGHTS
❖ Excellent Proximity to Top RegionalEmployers
❖ Anritsu, Morgan Hill, 500 Employees, 11.7 mi.❖ IBM, San Jose, 1,500 Employees, 17.7mi.❖ Hitachi Data Systems, San Jose, 3,000* Employees, 22.7 mi.❖ Ernst & Young, San Jose, 650 Employees, 29.8 mi.❖ Adobe Systems, San Jose, 1,000 Employees, 29.9 mi.❖ PricewaterhouseCoopers, San Jose, 700 Employees, 29.9 mi.❖ Netflix, Los Gatos, 2,000* Employees, 32.6 mi.❖ eBay, San Jose, 16,200* Employees, 33.5 mi.❖ Intel, Santa Clara, 5,700* Employees, 35.9 mi.❖ Cisco Systems, San Jose, 8,000 Employees, 36.3 mi.❖ Saint Louise Regional Hospital, Gilroy, 500 Employees, 3.4 mi.❖ Monterey Gourmet Foods, Gilroy, 250 Employees, 4.0 mi.❖ Gavilan College, Gilroy, 460 Employees, 4.2 mi.
❖ The Gilroy Caltrain Station, located Two miles from Sonata Townhomes,offers residents convenient commutes to San Jose, Santa Clara, Sunnyvale,Mountain View, Palo Alto, the Peninsula and San Francisco. Just a short drivefrom the community is US Hwy 101 that provides access to the Bay Area’s keytransportation arteries, including State Routes 85, 87 and 237, andInterstates 280, 680 and 880.
❖ Minutes to extensive retail options – including the Gilroy Premium OutletCenter (145 Designer and Name Brand Outlet Stores), Pacheco Pass Center(WalMart, Costco and Best Buy), Gilroy Crossings (Target, Kohl’s, Pier 1) andGilroy’s Boutique Downtown District. The Gilroy Plaza Shopping Center andTown Center Shopping Center, Home to Safeway, CVS Pharmacy, Nob HillFoods and Starbucks, are both within blocks from Sonata Townhomes.
❖ Gilroy demographics demonstrate the strength of the Multifamily marketand the potential for continued rent growth: only 37 percent of thepopulation can afford a median-priced home, and the Own-versus-RentAffordability Gap is $833, a 51% cost premium.
❖ Abundant parks, open space, recreation centers, hiking and biking pathsthroughout the city and region, including the 87,000-acre Henry W. Coe StatePark, Dowdy Ranch and Yamato Hot Springs, Eagle Ridge Golf Club, Gilroy GolfCourse, Gilroy Sports Park, Gilroy Gardens, El Roble and Miller Parks,Christmas Hill Park and Ranch and the Debell Uvas Creek Preserve.
Gilroy Caltrain Station - DowntownGilroy
Downtown San Jose (Sixth Stop from Gilroy Caltrain Station)
GILROY ~ Quality of Life
GILROY ~ Quality of Life
Exceptional Retail and DiningFrom its charming downtown historic district to the thriving Gilroy PremiumOutlets, Gilroy provides an abundance of retail options for its residents andneighboring cities in the South Bay.
The Gilroy Premium Outlets, located just 2.4 miles northeast of The Vineyardsalong U.S. Highway 101, draws shoppers from all over the Bay Area and CentralCoast regions. This impressive five-phase retail complex boasts over 150 namebrand retail outlet stores including designer fashions and sportswear, fineleather and luggage, accessories and jewelry, housewares and home furnishings,gifts and specialty items and a variety of dining options. Key outlet storesinclude Coach, Hugo Boss, Ralph Lauren, Saks Fifth Avenue Off 5th, TommyHilfiger, Banana Republic, Gap, Ann Taylor, Calvin Klein, Samsonite, Michael Kors,Sunglass Hut, Cole Haan, Calphalon Kitchen, and Sony.
At the intersection of U.S. Highway 101 and State Highway 152, the 15-acrePacheco Pass Complex features national tenants such as Walmart, Old Navy,HomeGoods, Costco, Best Buy, Chili’s and a multitude of other retail, dining,financial and personal service vendors. Across from the Pacheco Pass Centeralong Highway 152 is Gilroy Crossings with approximately 420,000 squarefeet of retail space anchored by prominenttenants such as Target, Kohl’s, Bed,Bath & Beyond, Pier 1 Imports, Michaels, Starbucks, Panera Bread andBevMo!.
Downtown Gilroy’s historic district, less than two miles from The Vineyards,offers an attractive blend of antique and boutique retail shopping experiencesand an ever-growing selection of dining and entertainment opportunities.Farmer’s markets, live concerts, theater, comedy shows, dancing and historicwalking tours all addtothecharmandvitality of this downtowndistrict.
Closer to home, residents of The Vineyards have convenient access toneighborhood retail centers just a few blocks away on 1st Street. The GilroyPlaza Shopping Center includes anchor tenants Safeway and CVS Pharmacy,and the Town Plaza Shopping Center features Nob Hill Foods, Starbucks andvarious dining and personal serviceretailers.
Gilroy Premium Outlets
Located just 20 miles south of San Jose, Gilroy provides residents with a serene
and relaxing setting within a short commute of Silicon Valley’s thriving and busy environment. The city is nestled between the Santa Cruz Mountains to the west, the Diablo Range to the east and the Monterey Peninsula/Central Coast to the south. The area offers residents an abundance of exceptional local and regional recreation, retail, dining and entertainment options.
Downtown Gilroy
GILROY ~ Quality of Life
Eagle Ridge GolfClub
The award-winning Eagle Ridge Golf Club and residential community are set along thebase of the Gavilan Mountains less than two miles from The Vineyards. The premier,gated single-family residential community consists of approximately 900 homes spreadover 120 acres with an average price of $730,000 over the last 12 months. In addition tothe Eagle Ridge golf course, the community includes social activities, a pool, tenniscourts, basketball courts and two parks. The public golf course has been ranked as one ofthe top 10 courses in Silicon Valley. The Clubhouse, situated high up in the foothills aboveGilroy, offers spectacular panoramicviews of theUvas Valley below.
Eagle Ridge Golf Club
Gilroy Winery
The Gilroy Wine Trail
The Gilroy Wine Trail is comprised of 18 well-regarded local wineries. Boutique wineproduction is a large part of Gilroy’s western area, mostly consisting of older familyestates around the Mount Madonna County Park mountain bases. The trail runs throughGilroy, San Martin and Morgan Hill and features local vintners such as Guglielmo Winery,Martin Ranch Winery, Thomas Kruse and Solis Winery to name a few. Daily wine tastingsand tours are available at most wineries on the Trail with some also offering concerts,festivals, wine-maker dinners andspecial event venues.
Outdoor Recreation and Entertainment
Gilroy has 12 parks, and has won more park design awards from the California Park andRecreation Society than any other city in California, including awards for Christmas HillPark (home of the Garlic Festival), Las Animas Park, San Ysidro Park, and El Roble Park.The Uvas Creek Park Preserve is a 125-acre natural corridor along the banks of the UvasCreek and includes nature trails and an interpretive center. The Gilroy Gardens FamilyTheme Park, owned by the City of Gilroy, is California’s only horticultural theme parkdesigned for families with young children and garden lovers featuring rides, attractionsand majestic gardens and educational exhibits. Regional and State Parks in the Gilroyvicinity include Mt. Madonna County Park (3,039 acres) to the west, Uvas Canyon CountyPark (1,049 acres) to the north, Harvey Bear Ranch County Park (4,595 acres) and HenryCoe State Park (32,000 acres) to the east. In addition, Anderson, Calero, Chesbro, Uvasand Coyote reservoirs as well as Coyote Lake are all nearby, offering a myriad of water-related sports and recreational activityoptions.
Gilroy is home of the annual Garlic Festival, one of the largest food festivals in the UnitedStates. What started as a small regional festival has become an international event thatdraws over 100,000 garlic lovers from around the world and generates total revenue inexcess of $2 million. In addition to offering many diverse garlic based dishes, attendeesalso enjoy three stages full of musical entertainment, the Great Garlic Cook-off andcelebrity cooking demonstrations.
CONVENIENT ACCESS TO MAJOR TRANSPORTATION CORRIDORS AND PUBLIC TRANSIT STATIONS
Estimated Travel Times (by car, from subject property)
Distance to Local Points of Interest (from the Gilroy CaltrainStation)
7
8
1
10
12
11
9
54
3
2
Highway 152 1 minute; 0.1 milesGilroy Caltrain Station 5 minutes; 2.2 milesHighway 101 6 minutes; 2.0 milesHighway 85 23 minutes; 21.6 milesHighway 1 30 minutes; 18.1 milesSan Jose Diridon Intermodal Transit Station 37 minutes; 32.7 milesSan Jose International Airport 39 minutes; 36.1 milesFremont BART Station 54 minutes; 48.7 miles
Morgan Hill 15 minutesDowntown San Jose 50 minutesSanta Clara 55 minutesSunnyvale 64 minutesMountain View 69 minutesPalo Alto 76 minutesFremont * 80 minutesRedwood City 83 minutesMillbrae 98 minutesDublin/Pleasanton * 108 minutesSan Francisco International Airport * 110 minutes4th & King Street(San Francisco/Mission Bay/AT&T Park/Chase Center)
115 minutes
SONATA TOWNHOMES
8101 Kelton Drive
GILROY ~
* Involves transfer to one or more of the ACE, Amtrak, BART or VTA bus lines.
Note: These times listed are estimated times.
Financial Analysis
FINANCIAL ANALYSIS
SONATA TOWNHOMES
RENT ROLL SUMMARY
20
FINANCIAL ANALYSIS
SONATA TOWNHOMES
OPERATING STATEMENT
21
NOTES
FINANCIAL ANALYSIS
SONATA TOWNHOMES
PRICING DETAIL
22
Market Overview
SAN JOSEOVERVIEW
1
Known to the world as Silicon Valley, the San Jose metro is located at the
southern end of the San Francisco Bay and encompasses Santa Clara and
San Benito counties. A large portion of the area’s 1,315 square miles is
unincorporated ranch and farmland.
The metro contains roughly 2 million inhabitants and more than half of the
region’s residents reside in the city of San Jose. It is the metro’s largest city
with more than 1 million residents, followed by Sunnyvale and Santa Clara.
Venture capital funds received in the 1990s helped to turn the area into the
world’s most prominent technology hub, a distinction that remains today.
MARKET OVERVIEW
METRO HIGHLIGHTS
PREMIER HIGH-TECH CENTER
Silicon Valley’s dense concentration of high-tech
jobs is world renowned, attracting a variety of large
employers and startups.
HIGH INCOMES
Well-paying jobs in the tech sector contribute to a
median annual household income level that is
almost double the U.S. median.
HIGHLY EDUCATED WORKFORCE
Nearly half of all residents age 25 and older have
obtained at least a bachelor’s degree, well above
the U.S. average.
SONATA TOWNHOMES
ECONOMY▪ The San Jose employment base contains more than 1.1 million workers, ranking the metro
as one of the 30 largest job markets in the nation.
▪ There are 18 Fortune 500 companies headquartered in San Jose, including Intel, Cisco
Systems, Apple Inc., eBay and Alphabet.
▪ The area’s many institutions of higher learning, including Stanford, San Jose State and
Santa Clara University, support these companies by graduating thousands of engineering
and computer science students each year.
MAJOR AREA EMPLOYERS
Cisco Systems
County of Santa Clara
Adobe Systems Inc.
Hewlett-Packard Co.
City of San Jose
Intel Corp.
eBay
U.S. Veterans Medical Center
San Jose State University
Apple* Forecast
2
SONATA TOWNHOMES
SHARE OF 2019 TOTAL EMPLOYMENT
MANUFACTURING
16%GOVERNMENT
HEALTH SERVICES
EDUCATION AND
+OTHER SERVICES
2%
LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES
12%
AND UTILITIES
TRADE, TRANSPORTATION CONSTRUCTION
PROFESSIONAL AND
BUSINESS SERVICES
9%INFORMATION
21%
4%
9% 9% 3%
15%
PROPERTY NAME
MARKETING TEAM
SONATA TOWNHOMES
DEMOGRAPHICS
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
▪ The metro is expected to add approximately 107,300 people through 2024 and during
this time more than 41,000 households will be formed.
▪ High home prices contribute to a homeownership rate of 56 percent, which is below
the national rate of 57 percent.
▪ Roughly 48 percent of residents age 25 and older hold a bachelor’s degree, including
22 percent who have also obtained a graduate or professional degree.
The San Jose metro has an enviable combination of major universities that produce a
highly educated workforce, cutting-edge firms and exceptional affluence. Residents can
visit a plethora of museums, including the San Jose Museum of Art and the Tech Museum
of Innovation. Santa Clara County is home to performing arts companies and hosts the San
Jose Jazz Festival. The San Francisco 49ers play their home games at Levi’s Stadium and
the San Jose Sharks hockey team plays at the SAP Center. Other sports venues include
Excite Ballpark and Stevens Stadium. The metro is minutes away from San Francisco and
some of the world’s finest wine-producing regions, notably the Napa, Sonoma and
Alexander valleys.
QUALITY OF LIFE
3
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s
Analytics; U.S. Census Bureau
SONATA TOWNHOMES
2019 Population by Age
0-4 YEARS
6%5-19 YEARS
19%20-24 YEARS
6%25-44 YEARS
30%45-64 YEARS
26%65+ YEARS
13%
37.1
2019MEDIAN AGE:
U.S. Median:
38.1
$121,300
2019 MEDIAN HOUSEHOLD INCOME:
U.S. Median:
$60,800
2M
2019POPULATION:
Growth2019-2024*:
5.4%
694K
2019HOUSEHOLDS:
5.9%
Growth2019-2024*:
PROPERTY NAME
MARKETING TEAM
SONATA TOWNHOMES
DEMOGRAPHICS
SONATA TOWNHOMES
27
SAN JOSE METRO AREA
Transit Networks Increasingly Key for
Development and Investment Strategies
Mountain View captivating builders, driving development to record high. Apartment construction will be
abundant this year as 5,500 units are slated for delivery — the highest total this millennium. Northern sections
of Sunnyvale will get much-needed supply amid sub-3 percent vacancy, while downtown San Jose will also
witness significant development as builders focus on areas that align with public transit routes. Mountain View
will post the strongest supply growth, adding more than 1,500 units, as developers seek to keep pace with the
steady job creation of nearby tech firms. The influx of supply will outstrip the expected absorption of 4,600
apartments, putting short-term pressure on marketwide vacancy as it’s pushed to the low-4 percent range.
Some areas such as East San Jose will retain limited apartment availability, keeping local rent growth among
the strongest in the market. Over the past five years, the average effective rent in East San Jose has risen 29
percent, the most of any submarket within the metro.
Favorable yields bringing investors to urban San Jose. Local buyers remain a key component of
investment activity as they home in on many of the area’s Class C assets, seeking properties with upside
potential. Assets throughout Los Altos and Palo Alto in the five- to 10-unit range will remain highly targeted
this year, fueled by the vigorous rental demand from nearby employment hubs, in addition to consistently
robust rent growth. Downtown San Jose will also attract these investors as this part of market offers
comparatively affordable entry costs and average returns in the mid-4 percent band, up to 50 basis points
above the market average. While local interest should remain stable, out-of-state buyers will continue to
arrive in San Jose, particularly institutional groups. In recent months, investors from the East Coast directed
their focus to the area’s larger Class B complexes along the Caltrain line in southern sections of the market,
purchasing units for roughly $420,000 per door.
* Estimate; ** Forecast
Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.
PROPERTY NAME
MARKETING TEAM
SONATA TOWNHOMES
DEMOGRAPHICS
SONATA TOWNHOMES
28
SAN JOSE METRO AREA
2020 Market Forecast
Job creation will remain diverse this year, with organizations adding 20,000
new employees.
Development will further accelerate following the completion of 2,700 units
last year and 1,400 apartments in 2018.
Elevated development will place pressure on market vacancy, driving it up to
4.3 percent. The rate decreased each of the previous three years by a total
of 80 basis points.
Coming off a 6.4 percent boost last year, the market’s rent growth will remain
stable in 2020 as the average effective rent rises to $3,080 per month.
Smaller Class C assets with value-add potential near major employers will
remain sought after by investors, strengthening bidding climates and putting
additional pressure on cap rates.
* Estimate; ** Forecast
Sources: CoStar Group, Inc.; RealPage, Inc.; Real Capital Analytics
Employment
up 1.7%
Construction
5,500 units
Vacancy
up 40 bps
Rent
up 3.3%
Investment
PROPERTY NAME
MARKETING TEAM
SONATA TOWNHOMES
DEMOGRAPHICS
PROPERTY NAME
MARKETING TEAM
SONATA TOWNHOMES
DEMOGRAPHICS
Source: © 2019 Experian
Created on February 2020
POPULATION 1 Miles 3 Miles 5 Miles
▪ 2023 Projection
Total Population 23,652 63,576 72,667
▪ 2018 Estimate
Total Population 22,407 61,088 69,865
▪ 2010 Census
Total Population 18,764 51,069 58,430
▪ 2000 Census
Total Population 15,407 44,306 51,166
▪ Daytime Population
2018 Estimate 15,024 48,568 63,955
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
▪ 2023 Projection
Total Households 7,568 18,990 21,890
▪ 2018 Estimate
Total Households 7,051 17,846 20,562
Average (Mean) Household Size 3.17 3.32 3.30
▪ 2010 Census
Total Households 5,849 14,807 17,079
▪ 2000 Census
Total Households 4,839 12,715 14,659
Growth 2015-2020 7.33% 6.41% 6.46%
HOUSING UNITS 1 Miles 3 Miles 5 Miles
▪ Occupied Units
2023 Projection 7,568 18,990 21,890
2018 Estimate 7,107 18,011 20,776
Owner Occupied 4,203 10,628 12,388
Renter Occupied 2,848 7,217 8,174
Vacant 56 165 213
▪ Persons In Units
2018 Estimate Total Occupied Units 7,051 17,846 20,562
1 Person Units 17.78% 16.61% 16.73%
2 Person Units 26.27% 25.28% 26.00%
3 Person Units 16.45% 16.07% 16.08%
4 Person Units 19.13% 18.95% 18.44%
5 Person Units 10.57% 10.94% 10.65%
6+ Person Units 9.80% 12.15% 12.10%
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
▪ 2018 Estimate
$200,000 or More 11.46% 10.85% 12.26%
$150,000 - $199,000 13.52% 12.88% 12.41%
$100,000 - $149,000 21.94% 21.61% 21.72%
$75,000 - $99,999 11.06% 10.55% 10.65%
$50,000 - $74,999 13.18% 12.95% 13.26%
$35,000 - $49,999 9.89% 9.06% 8.71%
$25,000 - $34,999 6.42% 7.81% 7.21%
$15,000 - $24,999 6.38% 6.77% 6.61%
Under $15,000 6.16% 7.52% 7.18%
Average Household Income $126,285 $119,981 $125,056
Median Household Income $93,159 $88,925 $91,520
Per Capita Income $39,933 $35,295 $37,049
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
▪ Population By Age
2018 Estimate Total Population 22,407 61,088 69,865
Under 20 30.54% 30.73% 29.90%
20 to 34 Years 21.11% 21.20% 20.89%
35 to 39 Years 6.69% 6.60% 6.40%
40 to 49 Years 13.99% 13.80% 13.70%
50 to 64 Years 17.76% 17.30% 18.12%
Age 65+ 9.91% 10.35% 10.97%
Median Age 33.84 33.60 34.41
▪ Population 25+ by Education Level
2018 Estimate Population Age 25+ 14,038 38,068 44,180
Elementary (0-8) 8.98% 10.43% 10.25%
Some High School (9-11) 7.89% 8.93% 9.06%
High School Graduate (12) 19.20% 21.14% 21.03%
Some College (13-15) 23.12% 21.27% 21.37%
Associate Degree Only 9.87% 8.92% 8.73%
Bachelors Degree Only 20.75% 18.30% 18.48%
Graduate Degree 8.33% 8.36% 8.42%
▪ Population by Gender
2018 Estimate Total Population 22,407 61,088 69,865
Male Population 49.79% 50.04% 50.21%
Female Population 50.21% 49.96% 49.79%
29
Income
In 2019, the median household income for your selected geography is
$90,765, compare this to the US average which is currently $58,754.
The median household income for your area has changed by 39.34%
since 2000. It is estimated that the median household income in your
area will be $106,496 five years from now, which represents a change
of 17.33% from the current year.
The current year per capita income in your area is $39,668, compare
this to the US average, which is $32,356. The current year average
household income in your area is $126,750, compare this to the US
average which is $84,609.
Population
In 2019, the population in your selected geography is 427,435. The
population has changed by 16.68% since 2000. It is estimated that the
population in your area will be 434,022.00 five years from now, which
represents a change of 1.54% from the current year. The current
population is 49.93% male and 50.07% female. The median age of the
population in your area is 36.75, compare this to the US average
which is 37.95. The population density in your area is 339.87 people
per square mile.
Households
There are currently 133,231 households in your selected geography.
The number of households has changed by 18.12% since 2000. It is
estimated that the number of households in your area will be 138,381
five years from now, which represents a change of 3.87% from the
current year. The average household size in your area is 3.11
persons.
Employment
In 2019, there are 146,707 employees in your selected area, this is
also known as the daytime population. The 2000 Census revealed that
60.93% of employees are employed in white-collar occupations in this
geography, and 39.02% are employed in blue-collar occupations. In
2019, unemployment in this area is 6.28%. In 2000, the average time
traveled to work was 31.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
58.60% White, 1.43% Black, 0.22% Native American and 9.93%
Asian/Pacific Islander. Compare these to US averages which are:
70.20% White, 12.89% Black, 0.19% Native American and 5.59%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 47.86% of the current year
population in your selected area. Compare this to the US average of
18.01%.
PROPERTY NAME
MARKETING TEAM
SONATA TOWNHOMES
Housing
The median housing value in your area was $642,721 in 2019,
compare this to the US average of $201,842. In 2000, there were
77,782 owner occupied housing units in your area and there were
35,008 renter occupied housing units in your area. The median rent at
the time was $815.
Source: © 2019 Experian
DEMOGRAPHICS
30
8
SONATA TOWNHOMES
DEMOGRAPHICS
31
Market Comparables
SONATA TOWNHOMES
SALES COMPARABLES MAP
33
SONATA TOWNHOMES
(SUBJECT)
100 San Augustine Way
Skyline Terrace
101 Douglas Drive
8205 Wren Avenue
Madison Terrace
SALES COMPARABLES
ON MARKET COMPARABLES
1
2
3
4
5
PROPERTY NAMESONATA TOWNHOMES
SALES COMPARABLES
34
SALES COMPARABLES
Avg. $339.51
Avg. $457.67
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
$500.00
SonataTownhomes
100 SanAugustine
Way
SkylineTerrace
101 DouglasDrive
8205 WrenAvenue
MadisonTerrace
Average Price Per Square Foot
Avg. $366,094
Avg. $400,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
SonataTownhomes
100 SanAugustine
Way
SkylineTerrace
101 DouglasDrive
8205 WrenAvenue
MadisonTerrace
Average Price Per Unit
Avg. 12.18
Avg. .00
0.00
1.40
2.80
4.20
5.60
7.00
8.40
9.80
11.20
12.60
14.00
SonataTownhomes
100 SanAugustine
Way
SkylineTerrace
101 DouglasDrive
8205 WrenAvenue
MadisonTerrace
Average GRM
Avg. 4.03%
Avg. 0.00%
0.0
0.6
1.2
1.8
2.4
3.0
3.6
4.2
4.8
5.4
6.0
SonataTownhomes
100 SanAugustine
Way
SkylineTerrace
101 DouglasDrive
8205 WrenAvenue
MadisonTerrace
Average Cap Rate
SALES COMPARABLES
ON MARKET COMPARABLES
SALES COMPS AVG
ON MARKET COMPS AVG
PROPERTY NAME
MARKETING TEAM
SONATA TOWNHOMES
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
35
SALES COMPARABLES ON MARKET COMPARABLES
Units Unit Type
Offering Price: $7,500,000 18 3 BR 1.5 BA
Price/Unit: $416,667
Price/SF: $277.78
CAP Rate: 5.31%
GRM: 12.38
Total No. of Units: 18
Year Built: 1987
Underwriting Criteria
Income $586,175 Expenses $187,595
NOI $398,580 Vacancy ($21,205)
SONATA TOWNHOMES8101 Kelton Dr, Gilroy, CA, 95020
1
Units Unit Type
Close Of Escrow: 8/23/2019 3 2 Bdr 1 Bath
Sales Price: $1,413,500 1 3 Bdr 2 Bath
Price/Unit: $353,375
Price/SF: $362.34
CAP Rate: 3.20%
Total No. of Units: 4
Year Built: 1979
100 SAN AUGUSTINE WAY100 San Augustine Way, Scotts Valley, CA, 95066
Units Unit Type
Close Of Escrow: 12/21/2018 40 2 Bdr 2 Bath
Sales Price: $19,600,000
Price/Unit: $490,000
Price/SF: $373.48
Total No. of Units: 40
Year Built: 1974
2
SKYLINE TERRACE1330 Skyline Drive, Monterey, CA, 93940
PROPERTY NAME
MARKETING TEAM
SONATA TOWNHOMES
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
36
SALES COMPARABLES ON MARKET COMPARABLES
Units Unit Type
Close Of Escrow: 5/17/2019 4 Bdr Bath
Sales Price: $2,280,000 6 2 Bdr 1 Bath
Price/Unit: $228,000
Price/SF: $250.11
Total No. of Units: 10
Year Built: 1980
3
101 DOUGLAS DRIVE101 Douglas Drive, Soquel, CA, 95073
4
Units Unit Type
Close Of Escrow: 4/23/2018 5 2 Bdr 2 Bath
Sales Price: $1,965,000
Price/Unit: $393,000
Price/SF: $372.09
CAP Rate: 4.86%
GRM: 12.18
Total No. of Units: 5
Year Built: 1971
8205 WREN AVENUE8205 Wren Avenue, Gilroy, CA, 95020
On Market
List Price: $3,200,000
Price/Unit: $400,000
Price/SF: $457.67
Total No. of Units: 8
Year Built: 1980
5
MADISON TERRACE7191 Eigleberry Street, Gillroy, CA, 95020
Exclusively Listed by
Sonata Townhomes
8101 Kelton Drive
Gilroy, CA 95020
Eduardo CernaSen ior Manag ing Director Inves tmentsSen ior Director , na t iona l Mul t i Hous ing GroupEd.Cerna@MarcusMi l l i chap.com