Built in 1942, the building is constructed of wood frame construction, tar & gravel roof, and concrete perimeter foundation. The property offers 34 units with an attractive unit mix of (11) Studios, (21) One Bedroom-One Bath, and (2) Two Bedroom-One Bath units. The site resides on a 29,500 square foot lot with a total of 16,152 square feet of living space.
Floor plans include Pergo and carpet floors throughout with linoleum and tile kitchen and bathroom floors. Amenities include on-site co-op laundry facility (owned not leased), ample on-site parking (35 dedicated spaces) on two gated lots, and a recreation area for the tenant' s enjoyment. The building offers individually metered gas and electric to mitigate expenses and the majority of tenants pay water and garbage to boast income and streamline operations.
While the going-in yield is attractive, there is still considerable upside potential for a new investor. The reduction of vacancy allows for significant NOI growth resulting in steady value creation equating to a 6.27% cap rate on conservative market rents.
The subject property is well located in a predominately residential neighborhood in close proximity to the ongoing revitalization effort, which includes the Richmond Shopping Center, The Richmond Transit Village, coined Metro Walk along with remodeling of the Richmond BART and Amtrak station and a bus transit center served by AC Transit and Golden Gate Transit. A Kaiser Permanente hospital and a Social Security Administration processing center provide for a majority of the jobs in the immediate area.
