400 D St. historic rehabilitation project

PROJECT DESCRIPTION

The historic building located at 400 D St. in Marysville, Ca is a two-story building located on a prominent corner of the historic commercial district of old town Maysville, CA. The developer intends to renovate the exterior of the building to return it to its historic façade shown above.  In addition, the upstairs will be used as an architectural savage and vintage merchandise resale store for materials salvaged from the demolition of dilapidated buildings throughout the area.

The upstairs is a maze of rooms and hallways which can only be accurately diagramed when further access is obtained.  The upstairs is 7,337 SF.  Assuming the average room to be 15 x 20 or 300 SF, there are an estimated 24 rooms which, on inspection, seems reasonable.  The rooms are of various sizes and the hallway surrounds a center skylight that appears to once have been open to the sky for natural light and ventilation.  This could be turned into a very attractive area with visibility from existing windows from the surrounding hallway.  There is a back entrance and also a main front entrance exiting on to D St.  The bottom portion of this stair case has been demolished and will be replaced.  Once remodeled, this space is expected to be rented for $0.60 PSF NNN.

Rentable area includes 7,318 SF facing D Street in addition to 1,600 SF facing 4th St.  Purchase price per present rentable area is $44.29 PSF.  Purchase price (including upstairs) is $24.30 PSF.

Property includes 400 thru 406 D Street and 409 4th Street which includes 3 tenants on D St. just North of 4th and one tenant on 4th Street, West of D St.

Acquisition Price                                                                                            $395,000

Building Size                                                                                                    16,255 SF

Downstairs                                                                                                         8,918 SF

Upstairs                                                                                                               7,337 SF

Price/SF                                                                                                                  $24.30

Property Type                                                                                                 Commercial

Property Sub-Type                                                                                       Street Retail

Cap Rate                                                                                                                      7.20%

Occupancy                                                     100% downstairs  unoccupied upstairs

Number of Stories                                                                                                         2

Tenancy                                                                                                                   Multiple

Year Built                                                                                                                        1935

Lot Size                                                                                                                     8,918 SF

APN/400 D St.                                                                                               010-176-006

409 4th St.                                                                                                       010-176-007

Tenants

400 D St.                     Sullivan’s                                4,118 SF                                  $800.00/mo.

400 D St.                    Avon Emporium                   1,600 SF                                  $750.00/mo.

400 D St.                     Boutique                                 1,600 SF                                  $750.00/mo.

409 4th                         Elevated Fitness                   1,600 SF                                  $750.00/mo.

Total annual income                                                                                                       $36,600.00

Property taxes                                                                                                                     $3,591.00

Insurance                                                                                                                             $4,559.00

Net income                                                                                                                        $28,450.00

Debt service and reserves (estimated at $395,000 x 6%)                                   $23,700.00

Existing cash flow                                                                                                              $4,750.00

Preliminary Project Development Cost

Rehabilitation cost 7,337 SF and exterior facade                                                      $322,500

Professional consultants                                                                                                  $ 50,000

Developer fee                                                                                                                       $ 25,000

Other/ misc.                                                                                                                         $ 25,000

Total rehabilitation cost                                                                                                 $422,500

Acquisition cost                                                                                                                $395.000

Total estimated project cost                                                                                          $817,500

 

Construction Cost Estimate-400 D Street Marysville, CA

Description                                          Material                           Labor                         Total

Finish Carpentry                                 $10,646.00                  $8,996.00               $19,642.00

Doors                                                       $ 9,794.00                  $8,276.00               $18,070.00

Exterior Siding – Metal Facade                $ 0.00                $28,042.00               $28.042.00

Windows                                                  $ 9,061.00                 $ 2,006.00               $11,067.00

Painting                                                   $ 7,834.00                 $17,649.00                $25,483.00

Floor Covering – Refinish                        $00.00                  $11,320.00                 $11,320.00

Plumbing                                                $10,033.00                  $11,035.00                $21,068.00

Tubs, Showers                                        $ 1,870.00                   $1,206.00                 $3,076.00

Appliances                                              $ 9,437.00                   $        0.00                 $9,437.00

HVAC System                                        $23,368.00                  $14,419.00               $37,787.00

Electrical                                                 $12,018.00                  $13,792.00               $25,810.00

Light Fixtures                                         $8,680.00                    $1,755.00                 $10,435.00

Fire Protection                                       $19,312.00                  $12,538.00                $31,850.00

Final Cleanup                                          $        0.00                   $ 5,015.00                   $ 5,015.00

Building Permit                                     $15,605.00                  $         0.00                 $15,605.00

Utility Connection Fees                       $6,050.00                  $         0.00                   $6,050.00

Construction Plans & Specs               $10,015.00                 $         0.00                   $10,015.00

Total Cost                                               $153,723.00              $136,049.00               $289,772.00

Misc. 5%                                                     $7,686.00                  $6,802.00                  $14,488.00

Contractor Fee 6%                                   $9,685.00                   $8,571.00                  $18,256.00

Total                                                        $171, 094.00               $151,422.00                $322,516.00

 

Proforma Operating Income and Expenses

Income 16,255 SF x $0.60 PSF                                                                                  $117,000

Taxes                                                                                                                                   $3,600

Insurance                                                                                                                          $4,800

Utilities 8%                                                                                                                       $9,360

Maintenance 5%                                                                                                              $5,850

Management 6%                                                                                                             $7,020

Net income                                                                                                                     $86,370

Debt service (6% on $613,125)                                                                                  $36,787

Cash flow                                                                                                                         $49,583

Investor return (50%)                                                                                                  $24,791

Cash return on investment ($250,000)                                                                       9.9%

Cap. rate 7%                                                                                                               $1,233,900

Cap. rate 8%                                                                                                               $1,079,625

Cost                                                                                                                                  $817,500

Profit on resale                                                                                                             $416,400

Investor return 50%                                                                                                    $208,200

Investment (10 investment units at $25,000 each)                                         $250,000

Profit on resale return on investment                                                                            83%

Value at completion PSF                                                                                                    $76

Historic tax credits ($322,000 x 20%)                                                                      $64,400

 

Eric J. Almquist, President

Northern California Community Development Corporation

A non-profit 501(c)3 corporation

www.victoryvillagevets.org

eric-almquist.com

ericjalmquist@gmail.com

3439 La Cadena Way

Sacramento, CA 98535

530-990-8828

Project Developer

Commercial real estate broker #00476919

Logue Realty #00643395

General building contractor #667185

Member, Marysville Rotary Club

Member, Sutter/Yuba Chamber of Commerce

Member, Sutter/Yuba Association of Realtors

Previous historic rehabilitation and historic project management experience

Napa Mill 56,000 SF historic warehouse, 5th and Main, Napa, CA

Fountain Grove Winery, 14,000 SF, Fountain Grove, Santa Rosa, CA

Virginia and Truckee Railroad Roundhouse, 78,000 SF, Carson City, Nevada

Old Winery, 90,000 SF, retail specialty shops Escalon, CA

Shasta Hotel, 1020 10th 80 room SRO, Receiver, Sacramento, CA

Thayer Apartments, 1228 N Street, 36 units, Sacramento, CA,

Woodruff Hotel 3431 Broadway 40 units, Sacramento. CA,


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