MARTELL AVE, 14729-14735 - SAN LEANDRO, CA Multifamily Portfolio Opportunity of (2) Renovated Fourplexes with Tremendous Upsides - LoopNet
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14729-14735
MARTELL AVE,
SAN LEANDRO, CA
Multifamily Portfolio Opportunity
of (2) Renovated Fourplexes with
Tremendous Upsides
KYLE CHUANG, CCIM, CHIA
DRE# 01916730
408.718.5158
kyle@chessboardcapital.com
San Leandro, CA 94578
14729
14735 Martell Ave
Martell Ave
HIGHLIGHTS
• City of San Leandro has NO RENT
CONTROL ordinance
• All 8 units meticulously renovated
– Capital Improvement over
$310,000
• Eligible for High Leveraged 30
Years Fixed Residential Debt up to
75% LTV
• 6 Mins Drive to Safeway, Walmart,
CVS Pharmacy, Bay Fair BART
Station, Target, and Farmers’
Market. 13 Mins Drive to Oakland
International Airport
• Individually Metered for Water, Gas
and Electric
• 8 Parking Spaces on Site
14729-14735 MARTELL AVE |
• Accessory Dwelling Unit (ADU)
Conversion Potential
• Walk-in Closets in 1 bedroom units
• Coin-Op laundry facilities
4
THE OPPORTUNITY
If you wanted to describe San Leandro in just
a few words, you might say, Proximity to Silicon
Valley and Oakland Airport. Or Top-Notch
Breweries. But if you really wanted to capture
what is going on since the pandemic, you can
simply say, NO VACANCY.
The vacancy rate is 2%* in San Leandro and
the shortage of housing is a REAL CHALLENGE.
Why? The pandemic has changed the way
we LIVE, WORK, and PLAY. Increasing housing
demand from residents who moved out of San
Francisco is one of the key factors. But the rising
lumber costs is a culprit, too.
The result of all this? If you owned HIGH-
QUALITY MULTIFAMILY UNITS with the upsides
to adding potential Accessory Dwelling Units in
this market, you’d enjoy high occupancy, rising
rents*, limited competition, and high net profits.
14729-14735 MARTELL AVE |
This book is dedicated for investors to acquire two
renovated fourplexes with value-added upsides.
Source: Q1 2021 REIS Real Estate Solutions, Moody’s Analytics. 5
CPI San Francisco area: 3.8% April 2021
THE OFFERING
(2) Renovated Fourplexes Comprising 8 Multifamily Units with the Upsides to Adding (2) Potential ADUs.
Housing is the toughest issue facing San Francisco Bay Area. You may have read about this problem, but San Leandro is at the center
of it. In the ten-year period beginning with Q2 2011, the annualized apartment unit growth rate is “-0.2%*” which means there were more
apartment units removed than new units built. In contrast, the five-year annualized apartment rent growth rate ending in Dec
2020 is 3.06%*. Both indicators enhance profitability to apartment owners.
The properties in the San Leandro portfolio are meticulously renovated, provided steady cash flow and are in the path of economic
recovery from the pandemic.
Why is building additional ADUs a sound investment decision? First, we need to understand the drivers of growth in our area.
1. Limited land for development
2. Difficulty in obtaining permits for quick-builds with additional objections from NIMBYs (Not in my back yard).
3. Massive undersupply to current housing needs in the region.
Average Per Unit Cost Construction of New Below Market Rate Housing is $726,469* in Alameda County while an ADU costs starting
from $147,500*. The SIGNIFICANT COST SAVING supports the basis of the investment thesis.
$188,146
$140,810
$119,217
ome - P rojected
14729-14735 MARTELL AVE |
ating Inc
Net Oper
Acquisition
Market w/ ADUs
Market
Current
Source: REIS Real Estate Solutions, Moody’s Analytics.
California Tax Credit Allocation Committee (2019 Data) 6
https://www.eano.com/adu/sf_bay_area
DEAL SUMMARY
Offering Price $2,700,000* GRM* 11.25
Price / Unit $337,500 Cap Rate* 6.97%
Price / SF $485 IRR* 20.33%
Total Units 8 Building Size 5,562
14729-14735 MARTELL AVE |
7
*Offering Price for each fourplex: $1,350,000. Proforma with potential ADUs.
CAPITAL IMPROVEMENT (OVER $310,000 INVESTED)
All units except 35C and 35D: New
bathrooms, double pane windows,
cooper pipe replacement, countertops,
cabinets, Pergo flooring and in-unit paint 35D: Bathroom remodeling; new interior 35C: New countertop, cabinet, Pergo
throughout. Wall-heaters replacement in paint and vinyl flooring throughout. New flooring and in-unit paint throughout. Roof
some units. appliances. of 14735 Martell was repaired.
2017-2018 2019 2021
14729-14735 MARTELL AVE |
2018 2020
All units except 35C and 35D: New
electric ovens/ranges/stoves, disposals,
and dishwashers. Exterior of both
buildings was repainted. One of the
exterior stair was rebuilt and another
one was repaired. 11
SALES COMP
# of Price /
Address Price Bldg SF Price / SF Cap Rate GRM Close Unit Mix
Units Unit
911 Coburn Court, (1) 3BD/1BA, (3)
$1,560,000 3,427 $455 14.44 4 $390,000 4/1/2021
San Leandro 2BD/1BA
420 Joaquin Ave,
$970,000 2,228 $435 13.94 3 $323,333 4/2/2021 (3) 1BD/1BA
San Leandro
15226 Lark St, San
$900,000 1,452 $620 15.66 3 $300,000 4/22/2021 (3) 1BD/1BA
Leandro
1210 141St Ave, (1) 2BD/1BA, (3)
$1,120,000 2,528 $443 17.83 4 $280,000 7/8/2021
San Leandro 1BD/1BA
14746 Martell (4) 2BD/1BA, (2)
$2,200,000 6,242 $352 4.07% 15.64 6 $366,666 8/16/21
Ave, San Leandro 3BD/2BA
14729-14735 MARTELL AVE |
12
PROPERTY INFORMATION
Address: 14729 Martell Ave, San Leandro, CA Address: 14735 Martell Ave, San Leandro, CA
• APN: 77C-1305-40-2 • APN: 77C-1305-41-2
• Building Size: 2781 SF • Building Size: 2781 SF
• Lot Size: 5151 SF • Lot Size: 5151 SF
14729-14735 MARTELL AVE |
• Year Built: 1959 • Year Built: 1959
• Year Renovated: 2017, 2018,2021 • Year Renovated: 2017, 2018, 2019, 2021
• Units: 4 • Units: 4
• Parking Spaces: 4 • Parking Spaces: 4
• Stories: 2 • Stories: 2
• Zoning: RM-1800 • Zoning: RM-1800 13
NEIGHBORHOOD
Bay Fair Center / Marketplace
• Located in the neighborhood of “Floresta Gardens/
Bradrick” with a lot of restaurants, coffee shops and
parks. The Marina Square Center, Bay Fair Center
and Greenhouse Marketplace provide retail goods
and services within the neighborhood. James
Monroe Elementary and Lincoln High School are
within a mile of the subject.
• In addition to be close to Bay Fair BART, an AC
Transit bus stop is approximately 0.5 mile of the
subject.
14729-14735 MARTELL AVE |
14
Greenhouse Marketplace15
14729-14735 MARTELL AVE |
AERIALBART (BAY AREA RAPID TRANSIT) SERVICE MAP
14729-14735 MARTELL AVE |
17
https://www.bart.gov/system-map14729-14735 Martell Ave
San Leandro, California 94578
KYLE CHUANG, CCIM, CHIA - PRINCIPAL Chessboard Capital, Inc.
DRE# 01916730 533 Airport Blvd, Suite 400
408.718.5158 Burlingame, CA 94010
kyle@chessboardcapital.com www.chessboardcapital.comYou can also read
