884 Bing Drive
Santa Clara, CA 95051
Purchase Price
$2,188,000
Cap Rate
3.08%
Property Type
MultiFamily
Rentable Square Feet
4,152
Price per Unit
$547,000.00
Number of Units
4
Floors
2
APN
29040064
Property Description
This value-add investment opportunity in Santa Clara is a rare find. The property has been well maintained but is in need of some TLC such as exterior paint, landscaping, and select unit renovations. The property is unique in that it is a very large fourplex consisting of (1) 3BR/2BA unit (1210 SF), (2) 3BR/1.5BA units (~1030 SF each), and (1) 2BR/1BA unit (850 SF). The total square footage of the property is 4,152 SF. The largest 3 bedroom unit in the front has 2 private decks, and the downstairs 3 bedroom unit has one private deck. The three bedroom units have forced air heating and the two bedroom unit has a wall radiant heater. There is an onsite laundry room with equipment that is leased. There is one carport per unit, and there is an additional parking space for the front 3 bedroom unit. Fully remodeled fourplexes in Santa Clara are selling for upwards of $2,250,000 so there is significant upside potential in this property after renovation and the below market rents are raised to market rates. The property is subject to rent control according to the statewide rent control bill, AB 1482. The larger 3 bedroom unit in the front is currently vacant but was last rented for $3,300/month. Market rent in the area is between $3,200 - $3,300/month. The other 3 bedroom units are currently rented for $2,100 and $1,925/month. The 2 bedroom unit is currently rented for $1700/month. Market rent for 2 bedroom units in this area are between $2,200 - $2,400/month. All the units are on a month-to-month rental basis and the tenants have been there for many years. There is significant upside potential in the three rented units. The kitchens in units 1, 2 & 4 have newer cabinetry, granite counter tops and appliances including dishwashers. The kitchen in unit 3 has tile counters and older cabinetry but is in very good condition. One of the cabinets and the exhaust hood in the kitchen of unit 4 needs some repair from a small stove fire. The bathrooms in all units consist of tile or Formica counters and older cabinetry but appear to be in good condition. In addition to the units, there is opportunity for the investor to improve the exterior finish with paint and landscaping. The 4,152 SF building was constructed in 1963 on a 7,072 SF level lot. The structure is stucco over wood frame on concrete perimeter/slab foundation. The roof is composite asphalt shingle in good condition. The property is ideally located in a highly desirable rental location in Santa Clara. It is approximately 0.7 miles from Kaiser Permanente Santa Clara Medical Center, and just 1.3 miles from the Apple Campus in Cupertino. It is also very close to commuter routs such as Lawrence Expressway and I-280 Freeway, leading to numerous employers in the area such as Google, Facebook, Linked-In, PayPal, eBay, and numerous others.
Presented by
Michael Shields, CCIM
01327546, California
408-356-1900
michael@svmultifamily.com
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions.
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