Capital Markets | Private Capital Group
:: OFFERING MEMORANDUM
100 Village Drive
B R E N T W O O D, C A L I F O R N I A
FOR MORE INFORMATION,
PLEASE CONTACT:
Keith Manson
Lic. 01490046
Senior Associate
+1 510 874 1919
keith.manson@cbre.com
:: 52 UNITS NEAR DOWNTOWN BRENTWOOD WITH EASY ACCESS TO
SHOPPING, RESTAURANTS, TRANSPORTATION AND SCHOOLS.
1 0 0 V I L L AG E D R I V E , B R E N T W O O D, C A L I F O R N I A | A f f i l i a t e d B u s i n e s s D i s c l o s u r e a n d C o n f i d e n t i a l i t y A g r e e m e n t
CBRE, Inc. operates within a global family
of companies with many subsidiaries and/or
related entities (each an “Affiliate”) engaging
in a broad range of commercial real estate
businesses including, but not limited to,
brokerage services, property and facilities
management, valuation, investment fund
management and development. At times
different Affiliates may represent various clients
with competing interests in the same transaction.
For example, this Memorandum may be
received by our Affiliates, including CBRE
Investors, Inc. or Trammell Crow Company.
Those, or other, Affiliates may express an interest
in the property described in this Memorandum
(the “Property”) may submit an offer to purchase
the Property and may be the successful bidder
for the Property. You hereby acknowledge that
possibility and agree that neither CBRE, Inc. nor
any involved Affiliate will have any obligation to
disclose to you the involvement of any Affiliate
in the sale or purchase of the Property. In all
instances, however, CBRE, Inc. will act in the
best interest of the client(s) it represents in the
transaction described in this Memorandum and
will not act in concert with or otherwise conduct
its business in a way that benefits any Affiliate to
the detriment of any other offeror or prospective
offeror, but rather will conduct its business in a
manner consistent with the law and any fiduciary
duties owed to the client(s) it represents in the
transaction described in this Memorandum.
This is a confidential Memorandum intended solely for
your limited use and benefit in determining whether you
desire to express further interest in the acquisition of
the Property.
This Memorandum contains selected information
pertaining to the Property and does not purport to be a
representation of the state of affairs of the Property or the
owner of the Property (the “Owner”), to be all-inclusive or
to contain all or part of the information which prospective
investors may require to evaluate a purchase of real
property. All financial projections and information are
provided for general reference purposes only and are
based on assumptions relating to the general economy,
market conditions, competition and other factors beyond
the control of the Owner and CBRE, Inc. Therefore,
all projections, assumptions and other information
provided and made herein are subject to material
variation. All references to acreages, square footages,
and other measurements are approximations. Additional
information and an opportunity to inspect the Property will
be made available to interested and qualified prospective
purchasers. In this Memorandum, certain documents,
including leases and other materials, are described in
summary form. These summaries do not purport to be
complete nor necessarily accurate descriptions of the full
agreements referenced. Interested parties are expected
to review all such summaries and other documents
of whatever nature independently and not rely on the
contents of this Memorandum in any manner.
Neither the Owner or CBRE, Inc, nor any of their
respective directors, officers, Affiliates or representatives
make any representation or warranty, expressed or
implied, as to the accuracy or completeness of this
Memorandum or any of its contents, and no legal
commitment or obligation shall arise by reason of your
receipt of this Memorandum or use of its contents;
and you are to rely solely on your investigations and
inspections of the Property in evaluating a possible
purchase of the real property.
The Owner expressly reserved the right, at its sole
discretion, to reject any or all expressions of interest
or offers to purchase the Property, and/or to terminate
discussions with any entity at any time with or without
notice which may arise as a result of review of this
Memorandum. The Owner shall have no legal
commitment or obligation to any entity reviewing this
Memorandum or making an offer to purchase the
Property unless and until written agreement(s) for the
purchase of the Property have been fully executed,
delivered and approved by the Owner and any
conditions to the Owner’s obligations therein have
been satisfied or waived.
By receipt of this Memorandum, you agree that this
Memorandum and its contents are of a confidential
nature, that you will hold and treat it in the strictest
confidence and that you will not disclose this
Memorandum or any of its contents to any other entity
without the prior written authorization of the Owner
or CBRE, Inc. You also agree that you will not use this
Memorandum or any of its contents in any manner
detrimental to the interest of the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further
interest in purchasing the Property, kindly return this
Memorandum to CBRE, Inc.
© 2013 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently
confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by
your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
TA B L E O F C O N T E N T S
1
INVESTMENT HIGHLIGHTS
2
PROPERTY SUMMARY
3
P O T E N T I A L A PA R T M E N T F I N A N C I N G
OPTION
4
MAPS
5
B U I L D I N G P H OTO G R A P H S | P L A N S
6
M A R K E T D ATA
• R E N T C O M PA R A B L E S
• S A L E S C O M PA R A B L E S
7
RENT ROLL & FINANCIALS
8
MARKET OVERVIEW
• E A S T B AY O V E R V I E W
•BRENTWOOD HIGHLIGHTS
3
100 VILLAGE DRIVE | Investment Highlights
1
Investment
IIn
n
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vest
ve
e st
sm
me
e ntt Highlights
H ig
ighl
hlig
hl
ig
ight
g ht
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INVESTMENT HIGHLIGHTS
CBRE is pleased to offer The Village Park Apartments located at 100 Village
Drive in Brentwood, California.
This 52-unit apartment community, which was built in 1971, is comprised
of forty two (42) one bedroom, one bath units and ten (10) two bedroom,
one bath units. Village Park sits on a large lot that has the potential for
additional building amenities like a pool, club house, BBQ area and fitness
room.
There is substantial upside available at the property. Currently the units
are roughly 20% or more under rented. In addition, there is a Ratio Utility
Billing System in place that can be capitalized on and run more efficiently to
increase collections by 30%.
Village Park is within walking distance to Downtown Brentwood, schools,
shopping, dining and public transportation. Within 10 minutes are multiple
Price:
$5,100,000
Units:
52 Units
· 42 One Bedroom/One Bath
· 10 Two Bedroom/One Bath
Actual Cap Rate:
5.49%
Pro Forma Cap Rate:
6.71%
Actual GIM:
9.58
Pro Forma GIM:
8.65
Price/Unit:
$98,077
Price/SqFt:
$137.62
Building Area:
37,058
Land Area:
1.58 Acres
Type of Ownership:
Fee Simple
Year Built
1971
shopping malls including the “Streets of Brentwood” outdoor mall, with
tenants such as REI, Banana Republic, and AMC Theatres; or Lone Tree
Plaza, that includes Home Depot, In-N-Out, and Trader Joe’s.
5
100 VILLAGE DRIVE | Property Summary
6
Property Summary
S um
umma
m ry
2
PROPERTY SUMMARY
Address:
100 Village Drive
Brentwood, CA 94513
APN#:
016-150-029-3
Number of Units:
52
Number of Buildings:
1
Number of Stories:
2
Year Built:
1971
Building Square Footage:
±36,890
Lot Acreage:
±1.58 Acres
Water Meter:
Master
Electric Meters:
Master with Sub Meters/RUBS Program
Gas Meters:
Master
Plumbing:
Copper
Heating/AC:
Electric AC/Heating Units in Living Rooms
Electric Heating Units in Bedrooms
Water Heaters:
3-100 Gallons Each
Foundation:
Concrete Slab
Framing:
Wood
Exterior:
Stucco
Parking:
36 Carports
Parking Surface:
Paved
Outdoor Space:
Large, Unused Back Lot
Roof:
Pitched - Composite Tile
Washer/Dryer:
On-Site 3 Washers, 3 Dryers
Hallways:
Well Lit, Interior Hallways with Baseboard
and Chair Rail Moulding
Elevator:
One, Large Cab
Floors:
Linoleum and Carpet
7
100 VILLAGE DRIVE | Financing Options
Potential Apartment
Financing Option
3
F I N A N C I N G D E TA I L S
Loan Amount:
$3,315,000 (65%)
Down Payment:
$1,785,000 (35%)
Interest Rate:
3.41% (5 year fixed)
Amortization:
30
Annual Loan Payments:
($176,637)
Monthly Loan Payments:
($14,720)
Pre-Tax Cash Flow
$103,295
Cash on Cash
5.79%
Debt Coverage Ratio
1.58
9
Benicia
Benicia
100 VILLAGE DRIVE | Maps
n Pablo Bay
Hercules
Hercules
Oakley
Oakley
Richmond
Richmond
Antioch
Antioch
Walnut Creek
Creek
Walnut
Lafayette
Lafayette
Berkeley
Berkeley
East
East
Bay
East
Bay
East
Bay
EastBay
Bay
Regional
Regional
RegionalPark
Park
Park
Park
Concord
Concord
Briones
Briones
Briones
Briones
Briones
Briones
Regional
Park
Park
RegionalPark
Park
Regional
Regional
Park
Regional
Park
Village
Park
Alamo
Alamo
Moraga
Moraga
Mount
Diablo
MountDiablo
Diablo
Mount
State
State
Park
State
Park
State
Park
State
Park
StatePark
Park
Park
Morgan
Territory
Regional
MorganTerritory
TerritoryRegional
RegionalPark
Park
Morgan
Morgan
Territory
Regional
Park
Danville
Danville
Alameda
Alameda
Oakland
Oakland
Anthony
Anthony
Anthony
Anthony
Anthony
Anthony
Chabot
Chabot
Chabot
Regional
Regional
Regional
Park
Park
Park
Park
Dublin
Dublin
San
San Leandro
Leandro
Pleasanton
Pleasanton
San
Francisco
Bay
illsborough
illsborough
Hayward
Hayward
Livermore
Livermore
Sunol
Sunol
Del
Valle
Lake
Lake
LakeDel
DelValle
Valle
Del
Valle
State
StateRec
RecArea
Area
State
Rec
Area
State
Rec
Area
State
San
San Mateo
Mateo
Fremont
Fremont
Newark
Newark
Redwood City
City
Redwood
Woodside
Woodside
Palo
Palo Alto
Alto
4
Milpitas
Milpitas
Mt.
Mt. View
View
Sunnyvale
Sunnyvale
Palo
PaloAlto
Alto
Alto
Palo
Foothills
Park
Foothills
Foothills
Park
Foothills
Foothills
Park
Park
FoothillsPark
Park
Santa
Santa
Clara
Clara
San
San Jose
Jose
JosephD
DGrant
Grant
Joseph
Joseph
D
Grant
Joseph
D
Grant
Joseph
Grant
County
Park
CountyPark
Park
County
Park
County
County
Park
Maps
1 0 0 V I L L AG E D R I V E | B R E N T W O O D, C A L I F O R N I A
4.5 MILES
SLATTEN RANCH SHOPPING CENTER
EMPIRE SHOPPING CENTER
COMING 2015
LONE TREE PLAZA
LONE TREE PLAZA
SITE
STREETS OF BRENTWOOD
LIBERTY HIGH SCHOOL
CITY OF BRENTWOOD
COMMUNITY CENTER
TOWN CENTRE PLAZA
Downtown
11
100 VILLAGE DRIVE | Aerial
SITE
12
Brentwoo
Susan Street
d Blvd
100 VILLAGE DRIVE | Aerial
Norma Lane
Village Drive
SITE
Sycamore Avenue
13
100 VILLAGE DRIVE | Building Photographs | Plans
Building Photographs | Plans
5
15
16
17
18
19
100 VILLAGE DRIVE | Rent Roll & Financials
Market Data
6
RENT COMPARABLES
MAP PROPERTY
NO. NAME
1
ADDRESS
NUMBER
ONE
TWO
OF
BEDROOM AVG. BEDROOM
YEAR UNITS
RENT
SF
RENT
Village Park
100 Village
Dr
1971
Town
Centre
Commons
1275
Central Blvd
1991/
1997
137
$810.00
580
$1,295.00 740
$1,034.00
$1,415.00
680
845
CONCESSION OCCUPANCY
None
None
WALK PROPERTY
NOTES/AMENITIES SCORE CONDITION
100%
Walk In Closets,
Laundry On-Site,
Covered Parking
77
B
99%
RUBS-$10 to $45,
Pool, Fitness Center,
Balcony/Patio,
Dishwasher
82
A
98%
Rehabbed, RUBS$40 for 1x1 and
$55 for 2x1,
Bacony/Patio, Pool,
Granite, Stain appl,
Dishwasher
77
A-
57
A
78
C
75
C-
58
A
63
A
2
Parkside
Brentwood
3
2400 Shady
Arbor Ridge
Willow Lane
2005
178
4
Brentwood
Apartments
906 Dainty
Ave
1975
14
$995.00
650
5
Redwood
Apartments
7940
Brentwood
Blvd
1965
28
$950.00
X
6
Cross
Pointe
5100 Vista
Grande Dr
2003
244
$1,237.00 715
$1,529.00
970
None
93%
Pool, Fitness Center,
Dishwasher, Washer
Dryer in Unit, Gas
Fireplaces
7
Bella Rose
4900
Canada
Valley Rd
2005
140
$1,295.00 785
$1,585.00
1206
None
100%
Pool, Fitness Center,
Dishwasher, Washer
Dryer in Unit
AVERAGES
200 Village
Dr
52
AVG.
SF
1970
60
$1,150.00 600
$1,445.00 756
$1,195.29
$1,299.00
800
None
$1,685.00
1183
None
96%
Laundry in Unit,
Pool, Fitness Center,
Balcony/Patio,
Dishwasher
$1,100.00
874
None
93%
Balcony/Patio
X
None
96%
X
$1,435.50
96.49%
21
RENT COMPARABLES
Prepared by: Keith Manson
6
7
3
1 5
4
2
1
2
3
4
5
6
7
22
SALES COMPARABLES
PROPERTY
MAP PROPERTY
NO. NAME
NUMBER
OF
UNITS
YEAR
SALES PRICE
52
1971
$5,100,000
GRM
PRICE/SF
DATE
SOLD
$98,077 5.49%
9.58
$137.62
TBD
1986
$21,250,000 $102,163 6.30%
7.87
$128.84
03/14/13
137
1989
$19,625,000 $143,248 6.01%
10.55
$172.03
09/18/12
Walnut
Creek
60
1972
$10,700,000 $178,333 4.28%
12.68
$224.55
06/04/12
Walnut
Creek
57
1959
$9,500,000 $166,667 5.21%
11.85
$319.22
01/17/13
ADDRESS
CITY
100 Village
Park
Apartments
100 Village
Drive
Brentwood
1
Mosaic
Apartments
1100-1128 E
Pittsburg
Leland Road
208
2
TownCentre
Commons
1275 Central
Blvd
Brentwood
3
Meridian
Apartments
141 Flora
Avenue
4
The Alterra
1200 Alpine
Road
PRICE/
UNIT
CAP
RATE
23
SALES COMPARABLES
PROPERTY
MAP PROPERTY
NO. NAME
ADDRESS
CITY
NUMBER
OF
UNITS
YEAR
SALES PRICE
PRICE/
UNIT
CAP
RATE
GRM
PRICE/SF
DATE
SOLD
5
Lafayette
Commons
Apartments
3255-3271
Mt Diablo Ct
Lafayette
36
1963
$7,340,000 $203,889 5.33%
12.04
$170.62
03/20/13
6
The
Franciscan
Apartments
1621 Adelaide
Concord
Street
35
1967
$3,695,000 $105,571 5.40%
9.85
$135.41
12/17/12
7
Alhambra
Manor
Apartments
600 Alhambra
Martinez
Way
38
1958
$3,500,000
$92,105 6.10%
9.60
$168.17
06/27/13
8
Chateau
Lacassie
1730 Lacassie Walnut
Avenue
Creek
16
1964
$3,301,000 $185,938 4.48%
13.58
$267.58
7/31/13
9
Creekside
Apartments
1309
Creekside
Drive
20
1963
$2,600,000 $130,000 5.19%
11.38
$195.22
12/27/12
Walnut
Creek
24
SALE COMPARABLES
Prepared by: Keith Manson
1
7
6
2
5
8
34
9
1
2
3
4
5
6
7
8
9
25
100 VILLAGE DRIVE | Rent Roll & Financials
Rent Roll & Financials
7
RENT ROLL
NAME
CURRENT
RENT
UNIT
UNIT TYPE
MARKET RENT
LEASE EXPIRATION
101
2/1
Angelina Gartin
$1,050.00
$1,275.00
102
2/1
John Simmons Jr.
$1,020.00
$1,275.00
103
1/1
Jeanine Thomas
$795.00
$1,075.00
104
1/1
Joyce Clayborn
$920.00
$1,075.00
105
1/1
Henry Vergara-Dona
$820.00
$1,075.00
106
1/1
William Moss
$795.00
$1,075.00
06/19/2013
107
1/1
Cody Duncan
$795.00
$1,075.00
05/11/2014
108
1/1
VACANT
$0.00
$1,075.00
109
1/1
Francisco Javier Gonzalez Heredia
$795.00
$1,075.00
110
2/1
Guillermina Lopez De Sandoval
$1,045.00
$1,275.00
01/16/2013
111
1/1
Church of Jesus Christ Of Latter Day Saints
$820.00
$1,075.00
12/22/2012
112
1/1
Alyssa Stonebraker
$795.00
$1,075.00
04/14/2013
114
1/1
Freddy Gonzalez
$820.00
$1,075.00
01/12/2013
115
1/1
Jose Perez-Martinez
$795.00
$1,075.00
116
1/1
Lupe Carmona
$795.00
$1,075.00
07/31/2012
117
1/1
David Kohn
$820.00
$1,075.00
09/16/2012
119
1/1
Karen Cranmer
$795.00
$1,075.00
08/26/2012
121
1/1
Carol Hampton
$820.00
$1,075.00
03/16/2013
122
1/1
Ian Hart
$795.00
$1,075.00
11/16/2013
123
1/1
Jose Rosales
$875.00
$1,075.00
124
1/1
Javier Barajas
$820.00
$1,075.00
02/07/2013
125
1/1
Jaime Garcia
$845.00
$1,075.00
06/15/2012
126
1/1
Mary Parks
$820.00
$1,075.00
01/10/2014
127
2/1
Miguel Avila Alvarez
$1,045.00
$1,275.00
03/20/2014
128
2/1
Ricardo Martinez
$1,020.00
$1,275.00
11/04/2013
201
2/1
Veronica Polk
$1,020.00
$1,275.00
10/19/2013
202
2/1
Francisca Sandoval
$1,020.00
$1,275.00
09/30/2013
203
1/1
Raquel Ceja Cuevas
$795.00
$1,075.00
09/07/2013
04/20/2014
27
RENT ROLL
UNIT TYPE
204
1/1
Nelson Flores
$795.00
$1,075.00
06/30/2012
205
1/1
Ysidro Valadez
$795.00
$1,075.00
02/22/2014
206
1/1
Sarah Maze
$795.00
$1,075.00
02/22/2014
207
1/1
Nancy Jane Cremeans
$950.00
$1,075.00
208
1/1
Cesar Chavez-Ortiz
$795.00
$1,075.00
01/09/2013
209
1/1
John Salvetti
$795.00
$1,075.00
02/10/2013
210
2/1
Hector Rivera
$1,045.00
$1,275.00
07/31/2012
211
1/1
Eric Slatten
$795.00
$1,075.00
05/31/2014
212
1/1
Teresa Parker
$795.00
$1,075.00
02/15/2014
214
1/1
Javier Cervantes-Perez MGR
$918.00
$1,075.00
215
1/1
Ellen Sowell
$920.00
$1,075.00
216
1/1
Tim Boykin
$795.00
$1,075.00
217
1/1
Michele Butler
$795.00
$1,075.00
218
1/1
Mary Jane Campbell
$950.00
$1,075.00
219
1/1
Ronald Sppon
$920.00
$1,075.00
220
1/1
Bienvenido Lopez
$830.00
$1,075.00
221
1/1
Dennis Resendez
$950.00
$1,075.00
222
1/1
William Thorton
$795.00
$1,075.00
223
1/1
Khalid Tarrar
$795.00
$1,075.00
02/28/2014
224
1/1
Javier Pantoja
$795.00
$1,075.00
09/30/2012
225
1/1
Monang Gorlonwulu
$795.00
$1,075.00
226
1/1
Jeanette Rada
$920.00
$1,075.00
227
2/1
Raul Leon-Arias
$950.00
$1,275.00
228
2/1
Kimberly Dougherty
$1,125.00
$1,275.00
TOTAL CURRENT
RENT
TOTAL MARKET
RENT
$44,363.00
$57,900.00
TOTAL UNITS
52
NAME
CURRENT
RENT
UNIT
MARKET RENT
LEASE EXPIRATION
01/06/2013
28
SUMMARY AND EXPENSES
Type
1 Bedroom, 1 Bath
2 Bedroom, 1 Bath
Total
%
Total
81%
19%
42
10
52
Average Rent
Market Rent
$810
$1,034
$1,075
$1,275
Per Month
Per Unit
Per Sq Ft
Gross Scheduled Rental Income
Vacancy
5.0%
Net Rental Income
Utility Income
Pet Income
Laundry
Gross Scheduled Income
$532,356
($26,618)
$505,738
$17,948
$2,400
$5,611
$531,697
$44,363
($2,218)
$42,145
$1,496
$200
$468
$44,308
$10,238
($512)
$9,726
$345
$46
$108
$10,225
$14.37
($0.72)
$13.65
$0.48
$0.06
$0.15
$14.35
Annual Operating Expenses
Controllable Expenses
Management Fee
4.0%
Repairs and Maintenance
PG&E
Trash, Water and Sewer
Pest Control
Landscaping
On Site Management/Personnel
Telephone
Elevator Service
Business License
Total Controllable Expenses
Property Taxes - 1.1302%
Assessments
Property Insurance
Sub-Total
Capital Reserves
Total Operating Expenses 47.35%
$21,268
$26,000
$39,218
$45,900
$1,000
$5,000
$25,000
$3,000
$1,200
$150
$167,736
$57,640
$5,099
$10,889
$241,364
$10,400
$251,764
$1,772
$500
$3,268
$3,825
$83
$417
$2,083
$250
$100
$13
$13,978
$4,803
$425
$907
$20,114
$867
$20,980
$409
$500
$754
$883
$19
$96
$481
$58
$23
$3
$3,226
$1,108
$98
$209
$4,642
$200
$4,842
$0.57
$0.70
$1.06
$1.24
$0.03
$0.13
$0.67
$0.08
$0.03
$0.00
$4.53
$1.56
$0.14
$0.29
$6.51
$0.28
$6.79
Net Operating Income
$279,933
$23,328
$5,383
$7.55
Per Unit
$98,077
Per Ft.
$137.62
Price
CAP Rate
GRM
$5,100,000
5.49%
9.58
Total Square Footage
37,058
Current Stabilized
Rents/ Proforma
Expenses
Annual Income
Square Footage
Market Rents/
Proforma
Expenses
Per Month
Per Unit
Per Sq Ft
5.0%
$589,680
($29,484)
$560,196
$27,120
$2,400
$5,611
$595,327
$49,140
($2,457)
$46,683
$2,260
$200
$468
$49,611
$11,340
($567)
$10,773
$522
$46
$108
$11,449
$15.91
($0.80)
$15.12
$0.73
$0.06
$0.15
$16.06
4.0%
$22,408
$26,000
$39,218
$45,900
$1,000
$5,000
$25,000
$3,000
$1,200
$150
$168,876
$57,640
$5,099
$10,889
$242,504
$10,400
$252,904
$1,867
$2,167
$3,268
$3,825
$83
$417
$2,083
$250
$100
$13
$14,073
$4,803
$425
$907
$20,209
$867
$21,075
$431
$500
$754
$883
$19
$96
$481
$58
$23
$3
$3,248
$1,108
$98
$209
$4,664
$200
$4,864
$0.60
$0.70
$1.06
$1.24
$0.03
$0.13
$0.67
$0.08
$0.03
$0.00
$4.56
$1.56
$0.14
$0.29
$6.54
$0.28
$6.82
$342,423
$28,535
$6,585
$9.24
Per Unit
98,077
Per Ft.
$137.62
42.48%
$5,100,000
6.71%
8.65
29
100 VILLAGE DRIVE | Market Overview
Market Overview
8
E A S T B AY O V E R V I E W
Supply and Demand
Rent
The East Bay metro area received one 62-unit property during 2013’s 2nd
At $1,565 per month, or $1.893 per square foot, the East Bay posted the
quarter, which took annual supply to 789 units. That annual volume – less
Bay Area’s least expensive rental rates in 2nd quarter. Despite that, prices in
than half the roughly 2,000-unit average seen in the two years leading up to
the metro remained well ahead of national and regional averages. In terms
the recession – grew The East Bay’s existing apartment base 0.4%. Looking
of change, the subject area saw rents climb notably in 2nd quarter, though
ahead, new apartment construction shouldn’t playas big of a role here as in
increases weren’t as dramatic as those seen in San Jose and San Francisco.
the other two Bay Area metros. At the end of 2nd quarter 2013, there were
Same-store prices increased 2.4% in 2nd quarter, which took effective rents
a total of 3,069 units in process across The East Bay, with 2,552 of those
up 6.9% year-over-year. That result – which ranked the East Bay behind San
units set to complete over the next four quarters. Looking at absorption, The
Francisco (7.8%) but ahead of San Jose (5.0%) – was one of the biggest
East Bay posted positive demand for the second consecutive quarter, with
increases seen nationally. Meaningful growth of about 6% to 8% was seen
1,349 units absorbed in 2nd quarter. In turn, annual demand tallied 1,934
across all of The East Bay’s product age niches, with the biggest hike posted in
units, which was just slightly less than average annual absorption levels of
the pre-1970 units (8.3%).
roughly 2,300 units seen here over the past three years.
Occupancy
Occupancy ticked up 0.7 points in 2nd quarter, taking the rate to
97.3%, up 0.6 points annually. That rate – the best seen among the
three Bay Area metros – was in line with average rates seen in The
East Bay over the past three years. For some perspective, occupancy
here fell as low as 93.5% during the recession after averaging about
96.6% from 2005 to 2007. During the same time, occupancy in
both San Francisco and San Jose metros averaged 97.0% to 97.5%.
In 2nd quarter, The East Bay easily surpassed the norms for the
West region (95.8%) and the U.S. Overall (95.3%), according to
preliminary results. Looking at occupancy by product age niche, all
segments were tightly clustered around 97% and 98%, with the pre1970 stock leading the way at 97.9%.
31
E A S T B AY O V E R V I E W
Permits
Employment
Multifamily permit authorizations in the East Bay have started to pick up
Preliminary figures from the Bureau of Labor Statistics showed that the East
recently. Approvals totaled 262 units during 2012’s April-May time frame,
Bay added 12,200 positions to its employment base during the year-ending
with this tally taking the metro’s approval volume in the year-ending May
May 2013. That absolute gain translated to a 1.2% expansion in the metro’s
to 2,633 units (2,563 units of which were green-lighted in the 11-month
workforce and ranked The East Bay at #40 across the nation’s core 100
period ending in May 2013). This annual volume was 83.7% higher
markets. Gains topped 4,000 positions in the Professional/Business Services
than the year-earlier figure and ranked The East Bay at #29 nationally.
segment, while notable hiring activity was also seen in the Leisure/Hospitality
Multifamily approval levels previously topped out in 1986-1987 at 12,000
Services and Education/Health Services sectors. On the other hand, mild
units. The most aggressive building pace seen since then came in 3rd
downsizing was seen in the Manufacturing industry. For further perspective, The
quarter 2006, when annual permits reached about 5,400 units.
East Bay’s total job count as of May 2013 remained 45,300 positions (or 4.4%)
below the level seen in 1st quarter 2008. The metro’s strongest annual job
growth performance over the past couple of decades occurred in 2000, when
gains topped the 41,000 job mark.
32
BRENTWOOD HIGHLIGHTS
Transportation Projects Improve Regional Access
Downtown Brentwood Revitalized with $60 Million Investment
“Over the next four years, several important transportation projects will be completed
that will greatly enhance Brentwood’s links to nearby employment centers. These
transportation links will allow Brentwood to take full advantage – for the first time
ever – of its strategic location and its ability to access four regional trade areas: the
Bay Area, Tri-Valley, Sacramento Delta, and Central Valley.
“On May 19, 2012, Brentwood officials celebrated the completion of one of the most
aggressive downtown revitalization projects in the entire Bay Area. Downtown Brentwood
is the region’s only true authentic, historic, culturally active downtown, with over 75,000
square feet of fine dining, eclectic boutiques, and entertainment. The downtown also
features a year-round schedule of fun activities and events, from to the annual Art, Wine
& Jazz Festival, to the summer concert series in City Park, to the award-winning weekly
Farmers’ Market.
To the west of Brentwood, California State Route 4 (SR 4) is being widened from
four to eight lanes. As a result, the off-peak drive time between Walnut Creek and
Brentwood will be reduced to as little as 25 minutes. Also, construction is starting
on a new interchange at Sand Creek Road this year and will be completed in 2014,
providing improved access to businesses along SR 4 in Brentwood.
In addition, BART is currently building the extension of eBART to the Hillcrest Station,
located about 10 minutes northwest of Brentwood. When the station is completed
in 2016, Brentwood businesses and residents will be able to easily access the
entire BART system. BART is also pursuing plans to further extend eBART to central
Brentwood, although those plans are still at the conceptual stage.
To the south, Vasco Road has been improved to shorten the drive time between
Brentwood and Livermore to about 25 minutes. This allows Brentwood businesses to
have convenient access to I-580 and the entire Tri-Valley region.
To the north, California Route
160 is being improved,
which will greatly improve
Brentwood’s convenient access
to Sacramento and the Delta
Region. Construction is planned
to start in 2014 and be completed
in early 2016. While all of the
above-mentioned projects are
either completed or set to be
complete in the next four years,
there are additional transportation
improvements that are envisioned
for the future. The City is in
discussions with the Contra Costa
Transportation Authority, City of
Tracy, and other agencies to move
forward with plans for California
Route 239, also known as “TriLink,” which is a new highway that
will improve Brentwood’s access to
I-5 and I-205.”
“The Civic Center will serve the entire community for decades to come. It is an
architectural icon that will play an important role in the continued revitalization of the
downtown,” said City Manager Paul Eldredge. “We are proud to report that the buildings
were completed on schedule and within budget.”
The Civic Center complex features Spanish-style architecture with arches and large
windows that make use of daylight, requiring less electricity. The building is currently
a candidate to receive LEED (Leadership in Energy and Environmental Design)
certification. LEED certification provides independent, third-party verification that the
building was designed and built to achieve high performance in key areas of human
and environmental health including sustainable site development, water savings, energy
efficiency, materials selection and indoor environmental quality.
In addition to housing all city staff, City Hall houses the new council chambers with
seating for 114 people, and the permit center. The state-of-the-art permit center allows
for improved service and is now open Monday through Friday, 45 hours per week.
In front of the Civic Center complex is the original city park, which has been redesigned
to include a children’s water play feature next to the play equipment. An outdoor
performance area has been added, including a built-in sound and lighting system.
Boasting 82 new trees, barbeques and picnic tables, the 2.7-acre park offers something
for all residents. Looking to the future, the park and city offices feature free Wi-Fi.
Remembering the past, Civic Center Plaza features a “History Walk” highlighting
significant moments in Brentwood’s rich history.”
33
BRENTWOOD HIGHLIGHTS
College Campus to Join Upscale Housing and Retail in
Planned Community
“Brentwood’s “Trilogy at the Vineyards” development has been selected as the site
for the new 17-acre campus of Los Medanos College.
“LMC’s new campus will serve as a regional center for higher education,” said Dr.
Helen Benjamin, Chancellor of the Contra Costa Community College District. “We
are excited about our ongoing partnership with the City of Brentwood in preparing a
competitive, highly trained workforce needed by local businesses in the health care,
science, and tech-oriented industries.”
The new campus will accommodate 5,000 students and will serve the entire East
Contra Costa region. Approximately 84,000 square feet of classrooms will be built
in one or two phases depending upon funding. The Community College District has
already purchased the land for development, and construction is envisioned to break
ground within the next few years. Los Medanos College is the latest in a series of
successes for the Vineyards – an upscale master-planned community being built by
Shea Homes. The 1,100-unit community has a uniquely scenic location, set among
Tuscan-style vineyards and orchards with views of nearby Mount Diablo.
In addition to the residential and college
development happening at the Vineyards,
there are several adjacent parcels that are
being planned for future retail commercial
development. The development is also
adjacent to the newest State Park in
the California State Park system, which
includes the historic residence of John
Marsh, the first American settler of the
region.
Of the 1,100 homes approved for
development, almost 250 homes have
been built to date. Buyers are able to select
custom designed homes ranging from 1,700 to 3,000 square feet. Home sales at
the Vineyards have increased about 15% per year for four straight years, bucking
national trends.”
A Premier Destination for Fine Dining and Retail
“Companies that locate in Brentwood can expect to enjoy some of the finest
shopping and dining in the East Bay. With more than 1.2 million square feet of retail
built within the past 10 years, Brentwood is fast becoming one of the most popular
upscale retail destinations in the East Bay Area.
“Brentwood commands the best location, best demographics, and the highest-quality
shopping environment of any city between Walnut Creek and Sacramento,” says Ed
Del Baccaro, managing director at Transwestern.
Several factors account for Brentwood’s
retail renaissance: It is the fastest-growing
city in the nine-county Bay Area (according
to 2010 Census data). It has a relatively
young population (average age 33)
with high average income ($97,292
per household) and high educational
attainment (65% college educated). It has
a convenient location central to the entire
region. And it has a relaxed, friendly
atmosphere in a picturesque location.
The Streets of Brentwood is a
400,000-squarefoot lifestyle center that focuses on high-end women’s and men’s
fashion, food, entertainment, and youth lifestyle. Stores include: Banana Republic, REI,
Ulta Beauty, DSW Shoe Warehouse, Ann Taylor Loft, Victoria’s Secret, Express, Tillys, and
more than 50 other shops and boutiques.
The Streets hosts a series of popular events year round, such as the Arts, Wine & Jazz Fest
and “Blues, Brews & Barbeques.” The Center also boasts an IMAX theater and a variety
chain and independent restaurants, including BJ’s Brewhouse, Grazzi’s Grille, Bankok
101, Red Robin, Mel’s Diner, and the Wishing Crab.
Lone Tree Plaza is another regional retail center in Brentwood, anchored by Kohl’s
Department Store, Trader Joe’s, Home Depot, Sportsmart, Pete’s Coffee, Chipotle, and
many other stores.
Brentwood is also served by several other shopping centers, which offer dozens more
stores, including: Best Buy, T.J. Maxx, Home Goods, Ross, Claire’s Boutique, Safeway,
Raley’s, and Party City. In 2012 alone, Brentwood welcomed additional new food and
retail uses, including: Buffalo Wild Wings, Fresh & Easy, Charming Charlie, Payless
ShoeSource, Five Guys Burgers & Fries, and several stores and restaurants.”
* All quoted text on page 26 and 27 is from “The City of Brentwood” section of the SF Business Times, June 8-14, 2012
Brentwood Statistics
• Average age in Brentwood: 33
• Average household income in Brentwood:
$97,292
• College educated: 65%
• Each of the school district’s comprehensive
high schools have been named a “California
Distinguished School”
• The school district’s API score has the highest
five year gain of all districts in Contra Costa
County
• 99% of seniors pass the California High School
Exit Exam (CAHSEE)
• 74% of 2011 graduates indicated they will
attend a two or four year college or university
34
35
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