916-918 Del Monte Avenue, Salinas, CA

 

18 Units

916-918 Del Monte 18 Unit Aparment in Salinas

 

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Co-Listed with: Mangold Property Management

 

Complex Notes:

  • The complex consists of 18 two-bedroom / one bathroom units measuring approximately 730 square feet per unit.
  • Unit turnover has been very limited. 13 residents have lived in their home since 2018 or prior.
  • Units have been updated as they turnover.
  • The downstairs units have large back patios.
  • The total livable square footage is 13,146.
  • The parcel is 23,522 square feet.
  • The complex was constructed in 1978.
  • There are 28 onsite parking spaces.
  • The exterior finish is stucco.
  • The complex has a laundry room with leased coin operated equipment. Monthly collections average $577.
  • The units are heated with gas wall furnaces.
  • Property is zoned for Barton Elementary School (3/10’s of a mile), La Paz Middle School, and Alisal High School.
  • The owner pays water, sewer, garbage, and common area PG&E. Tenants pay PG&E, cable, and internet.

 

 

 

Monterey & Monterey Peninsula Facts:

 

  • The 2020 estimated population of Salinas is 163,542 according to the US Census Bureau.
  • The median sales price, for the March 2021 to February 2022, of a Salinas single-family home is $650,000.   
  • The estimated population of Monterey County is 437,907.
  • Salinas is home to the $8.1 billion dollar agricultural industry as of 2015.
  • Major employers include Monterey County, Salinas Valley Memorial Hospital, Natividad Medical Center, Taylor Farms, Dole Vegetables, 1st Capital Bank, the hospitality industry, and the construction industry.
  • Monterey Peninsula major employers include Pebble Beach Company, Monterey Bay Aquarium, Naval Post Graduate School, Defense Language School, and the CSU Monterey Bay.
  • Salinas is a commuter community for the Monterey Peninsula, Watsonville, Santa Cruz, Gilroy, Morgan Hill, and the Silicon Valley region.

 

Financials

 

 

Listing Price: $4,600,000  Building Sq. Ft: 13,146  Units 18 
Down Payment: $1,600,000  Lot Square Ft: 23,481  Price/Unit: $255,556 
Loan Amount: $3,000,000  APN: 004-382-021 Age: 1978 
Current Rent GRM: 11.88 ProForma GRM: 10.23 Roof: Flat
Cap Rate: 4.51%  ProForma Cap: 5.74%  Price/Sq.Ft. $350 
Current: ProForma:
Monthly Scheduled Rents: $31,700 $36,900
Scheduled Gross Annual Income: $380,400 $442,800
Less: Vacancy Factor @ 3% $11,412 $13,284
Effective Gross Income: $368,988 $429,516
Plus: Laundry Income: $6,925 $6,925
Plus: Additional Income:    
       
Total Annual Income: $375,913 $436,441
Less Expenses:
Property Taxes: 1.00% $46,000 12.24% $46,000 10.5%
Property Tax Bonds: 0.0124% $572 0.15% $572 0.1%
Direct Charges: $429 0.11% $4293 0.1%
Repairs and Maintenance: $1,566 $28,188 7.50% $28,188 6.5%
Off Site Management: 7% $25,829 6.87% $30,066 6.9%
On Site Management:   $15,000 3.99% $15,000 3.5%
Property Insurance: $6,085 1.62% $6,085 1.4%
Garbage: $904 $10,848 2.89% $10,848 2.5%
Sewer: $674 $8,088 2.15% $8,088 1.9%
Water: $644 $7,728 2.06% $7,728 1.8%
PG&E: $624 $7,488 1.99% $7,488 1.7%
Landscaping: $250 $3,000 0.89% $3,000 0.7%
Pest Control: $177 $2,124 0.57% $2,124 0.5%
Reserves: $250 $4,500 1.20% $4,500 1.0%
Miscellaneous: $2,500 0.67% $2,500 0.6%
Total Expenses: $9,354 $168,379 45.63% $172,616 40.2%
Net Operating Income: $207,5347 $263,825
Annual Debt Service: 4.50% $184,175 $184,175
Before Tax Cash Flow: $23,359 1.46% $79,650 5.0%

 

Notes:

1. Monthly gross income is based on March 2022 rents.
2. Repairs & Maintenance is based upon 2021 maintenance & repair expense.
3. Onsite management: Estimated at $1500 per month.
4. Garbage bill is based on 2021 P & L 12 month average.
5. Sewer bill is based on the March 2022 bill.
6. Water bill is based upon the 2021 P & L.
7. PG&E is based upon the 2021 P & L.
8. Landscaping is based upon the 2021 P & L.

Parcel Map

916-918 Del Monte PlotMap

 

Area Map

 

916-918 Del Monte Salinas Area Map

 

 


 

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