3755 Emerson Street PROPOSAL PACKAGE 05-15-17

3755 EMERSON STREET
OAKLAND, CA 94610

prepared for: Tarek and Michel Khoury

Nolan Prescott Jones www.theprescottcompany.com

Broker Associate | Real Estate Services
510.398.1622
[email protected]

BRE#01509417

Rodger Allen

Associate | Real Estate Services
510.398.1624
[email protected]

BRE#01965923

confidentiality & disclaimer

The information contained in this marketing brochure (“Materials”) is proprietary and confidential. It is
intended to be reviewed only by the person or entity receiving it from The Prescott Company (“Agent”).
The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject
property (“Property”) for potential purchase.
The Materials have been prepared to provide unverified summary financial, physical, and market
information to prospective buyers to enable them to establish a preliminary level of interest in potential
purchase of the Property. The Materials are not to be considered fact. The information contained in the
Materials is not a substitute for thorough investigation of the financial, physical, and market conditions
relating to the Property.
The information contained in the Materials has been obtained by Agent from sources believed to be
reliable, however, no representation or warranty is made regarding the accuracy or completeness of the
Materials. Agent makes no representation or warranty regarding the Property, including but not limited to
income, expenses, or financial performance (past, present, or future); size, square footage, condition, or
quality of the land and improvements; presence or absence of contaminating substances (PCB’s, asbestos,
mold, etc.); Compliance with laws and regulations (local, state, and federal); or, financial condition or
business prospects of any tenant (tenant’s intentions regarding continued occupancy, payment of rent,
etc). Any prospective buyer must independently investigate and verify all of the information set forth in the
Materials. Any prospective buyer is solely responsible for any and all costs and expenses incurred in
reviewing the Materials and/ or investigating and evaluating the Property.
By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.
All Property showings are by appointment only and must be coordinated through the Agent.

3755 EMERSON STREET, OAKLAND, CA 94610

table of contents 4

property overview 4
4
property summary 5
property highlights 5
property narrative 6
investment highlights
property photos 7

location overview 7
8
regional and local map 9
local context
parcel map 10

operating summary 10
11
financial overview 12
rent roll 12
pricing
net proceeds

3755 EMERSON STREET, OAKLAND, CA 94610

property overview

property summary

APN 023-0478-004-04

Property Type Multi-Family utilities

Year Built 1923 Gas Tenant
Electric Tenant
Units 5 Water Owner
Garbage Owner
Stories 2.00

Gross Living Area ± 3,960 SF

Parcel Size ± 4,463 SF

Parking Garage & Off-Street Parking Spaces

Occupancy Rate 100%

property highlights

▪ HIGHLY DESIRED NEIGHBORHOOD
▪ DIRECT ACCESS TO I-580
▪ GARAGE OFF- STREET PARKING
▪ ALL UNITS UPGRADED WITHIN PAST 5 YEARS
▪ RECENT ELECTRICAL SYSTEM UPGRADE
▪ ALL RENTS NEAR MARKET
▪ 1.2 MILES TO LAKESHORE AVENUE/ LAKE MERRITT
▪ 2.3 MILES TO LAKE MERRITT BART STATION
▪ 5 MILES TO BAY BRIDGE TOLL PLAZA

3755 EMERSON STREET, OAKLAND, CA 94610

property overview

property narrative

3755 Emerson Street is an outstanding opportunity to acquire a prime investment asset in a well-
established neighborhood.
Construction was completed on this two-story apartment building in 1923. The structure has a
wood frame with a stucco exterior and sits on a 4,463 square foot lot. All of the units have
experienced kitchen and bathroom remodels within the last five years. The subject property has
recently undergone an electrical system upgrade and a new water heater installation. Each unit
is separately metered for PG&E and the property holds 3,960 square feet of rentable space. All of
the rents are near market meaning significant cash flow for the right investor.
Tenants appreciate a central location in a quiet neighborhood as well as garage off-street parking.
Tenants also enjoy direct access to I-580 and being in close proximity to Lake Merritt and
Montclair Village.
There is approximately 18.18% rental upside currently available.
3755 Emerson Street is a rare chance to purchase an income property with strong cash flow and
upside for years to come. Low vacancy rates, record rents and a nationally leading real estate
market are making Oakland one of the most exciting places to buy property in the country.

investment highlights

▪ 4.42% cap rate / 5.68% cap rate pro forma
▪ 14.02% GRM / 11.86% GRM pro forma

▪ $370,000 per unit / $467.17 per square foot
▪ 2.31% cash-on-cash return / 4.88% total return

3755 EMERSON STREET, OAKLAND, CA 94610

property overview

exterior photos

3755 EMERSON STREET, OAKLAND, CA 94610

location overview

regional and local maps

PROPERTY

PROPERTY

3755 EMERSON STREET, OAKLAND, CA 94610

location overview

local context map

PROPERTY

3755 EMERSON STREET, OAKLAND, CA 94610

location overview

parcel map

PROPERTY

3755 EMERSON STREET, OAKLAND, CA 94610

operating summary

financial overview ANNUALIZED OPERATING DATA

LOCATION

3755 Emerson Street
Oakland, CA 94610

CURRENT PRO INCOME CURRENT PRO
FORMA FORMA
Price 40% $1,850,000 Gross Potential Rent $132,000
Down Payment $740,000 $1,850,000 Other Income $0 $156,000
Number of Units 5 $740,000 Gross Potential Income 3.00% $0
Price/Unit $370,000 5 Less: Vacancy/Deductions (GPR) $132,000
Rentable Square Feet 3,960 $370,000 Effective Gross Income 2.31% $3,960 $156,000
Price/SF $467.17 3,960 Less: Expenses 4.88% $4,680
Cap Rate - Current 4.42% $467.17 Net Operating Income $128,040
GRM - Current 14.02 5.68% Debt Service $46,197 $151,320
Year Built 1923 11.86 Net Cash Flow After Debt Service $46,197
Lot Size 4,463 1923 Principal Reduction $81,843 $105,123
4,463 Total Return $64,749 $64,749
$17,094 $40,374
$19,043 $19,043
$36,138 $59,418

FINANCING* EXPENSES

Real Estate Taxes 1.3508% $24,990 $24,990
$2,003 $2,003
FIRST TRUST DEED Special Assessments $0 $0
Loan Amount $3,600 $3,600
Interest Rate $1,110,000 PG&E $2,400 $2,400
Amortization (years) 4.15% $2,500 $2,500
30 Garbage $2,200 $2,200
$5,122 $6,053
Water $1,250 $1,250
$1,793 $2,118
Repairs/Maintenance (Est. @ $500/unit) $340 $340

*Loan information is time sensitive and subject to change. Insurance $46,197 $47,454
Please contact a Prescott Company representative for up-to-date information. $9,239 $9,491
Management Fee (% of EGI) 4.00% $11.67 $11.98
36.08% 31.36%
Reserves/Replacements (Est. @ $250/unit)

Oakland Business Tax (% of EGI) 1.40%

Oakland Rent Board Fee ($68 per unit)

SCHEDULED INCOME Total Expenses

UNIT CURRENT RENT MONTHLY PF RENTS PF MONTHLY Expenses / Unit
NO. TYPE AVG. SF PER SF INCOME Expenses / SF
RENTS INCOME Expenses % of EGI

3 1x1 767 $2,000.00 $2.61 $6,000 $2,400.00 $7,200
$3.01 $5,000 $2,900.00 $5,800
2 2x1 830 $2,500.00 $11,000 $13,000

Totals 3,960

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy
of this information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

3755 EMERSON STREET, OAKLAND, CA 94610

operating summary

rent roll NOTES UNIT CURRENT RENT PF RENT PF RENT
SF RENT PER SF $2,900.00 PER SF OCC.
UNIT NO. NO. 830 $2,900.00
NO. BR Bath 830 $2,500.00 $3.01 $2,400.00 $3.49 Y
1 21 767 $2,500.00 $3.01 $2,400.00
2 21 767 $2,000.00 $2.61 $2,400.00 $3.49 Y
3 11 767 $2,000.00 $2.61
4 11 $2,000.00 $2.61 $3.13 Y
5 11
$3.13 Y

$3.13 Y

TOTAL VACANT 0 $0 $13,000 0
TOTAL OCCUPIED 3,960 $11,000 5
TOTAL 3,960 $11,000 5

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy
of this information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

3755 EMERSON STREET, OAKLAND, CA 94610

operating summary

pricing

LIST PRICE MARKET RANGE MARKET RANGE

$1,850,000 LOW HIGH
$740,000
Price 40% $1,110,000 $1,725,000 $1,800,000
Down Payment 4.15% $690,000 $720,000
First Trust Deed/Mortgage $81,843
Interest Rate/Amortization $1,035,000 $1,080,000
Net Operating Income 4.15% 4.15%

$81,843 $81,843

CASH FLOW ANALYSIS $64,749 $60,374 $62,999
Debt Service 1.26 1.36 1.30
Debt Coverage Ratio
Net Cash Flow After Debt Service $17,094 $21,469 $18,844
Cash on Cash Return % 2.31% 3.11% 2.62%
Principal Reduction
Total Return $19,043 $17,757 $18,529
Total Return % $36,138 $39,226 $37,373

4.88% 5.68% 5.19%

VALUE INDICATORS 4.42% 4.74% 4.55%
CAP Rate 14.02 13.07 13.64
GRM
Price / Unit $370,000 $345,000 $360,000
Price / SF $467.17 $435.60 $454.54

net proceeds

LIST PRICE MARKET RANGE MARKET RANGE

LOW HIGH

Price $1,850,000 $1,725,000 $1,800,000

County Transfer 0.11% $2,035 $1,898 $1,980

City Transfer 0.75% $13,875 $12,938 $13,500

Commission 6.00% $111,000 $103,500 $108,000

Total Costs $126,910 $118,335 $123,480

Existing Debt Retirement $0 $0 $0

Total Net Proceeds $1,723,090 $1,606,665 $1,676,520

Comments: This is a rough estimate. This estimate does not take into consideration: rent pro-rations, security desposit transfers,
property taxes, taxes, California state withholdings or any miscellaneous escrow fees and charges.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy
of this information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

3755 EMERSON STREET, OAKLAND, CA 94610

www.theprescottcompany.com

We strive to build high quality relationships, generated through honest communication,
tireless work ethic, and by providing clients with overall excellent service and flawless
execution. The priority of The Prescott Company is to achieve the absolute best price and
terms for our client’s real estate, meet or exceed our client’s needs and to continue to
conduct repeat business for years to come.

We believe that the core of our company stems largely from the culture that we have
created through the values that we practice.

▪ Integrity
▪ Humility
▪ Accessibility
▪ Dynamic
▪ Tireless Work Ethic
▪ Enjoyable Work Environment
▪ Relationship Driven And Not Commission Driven