Reviewed On: 2010-01-14

Listing Price:		$1,100,000	Units:	6
Price/Unit:		$183,333	Price/SqFt:	$253
Cap Rate:		6.17%	GRM:	11.80

A Wheelhouse Listing!

The Wheel Deal: This investment is completely TURN KEY and has been meticulously maintained. All units have remodeled kitchens and bathrooms including granite countertops, PERGO/laminate kitchen floors, tiled bathroom floors, etc. Each unit features eat-in kitchens, attached garages, dual-paned windows and a separate laundry room. The new owner will enjoy virtually no utility expenses due to the units being separately metered for water, gas and electric and 5 of 6 tenants reimbursing the owner for garbage fees. With 3 units on each parcel, a new buyer can take advantage of residential financing. With condo quality features and upgrades, and a location just one block from Trader Joes, an investor looking for a building of this size in Castro Valley will love 2518-2528 Grove Way.

Reviewed On: 2009-08-06

Listing Price:		$1,075,000	Units:	12
Price/Unit:		$89,583	Price/SqFt:	$145
Cap Rate:		6.60%	GRM:	9.86

Pros: There are new vinyl windows, partially underground parking for each apartment, a gated perimeter with small garden, and very clean units with comfortable floor plans.

Cons: This part of Fruitvale Ave is busy, so traffic is always buzzing. The kitchens and the heaters are all electric, which can be a deterrent for tenants that wants gas. There is only 1 gas meter, and the owner pays for hot water.

The Wheel Deal: This one is worth taking a crack at. The building is squeaky clean and is intrinsically a solid purchase. I spoke with the listing agent who indicated that the property was being run by a conservator (Wikipedia that one), so I get the sense there is some motivation. A neighborhood property manager indicated that he is getting $1,300 for his 3 bedrooms (thanks, Dan) and that $800 for 1 bedrooms was very reasonable.

Reviewed On: 2009-02-11

Listing Price:		$6,895,000	Units:	53
Price/Unit:		$130,094	Price/SqFt:	$183
Cap Rate:		6.50%	GRM:	9.68

Pros: The loan is assumable at 5.29%!

Cons: Much of the juice has been taken out of the deal.

The Wheel Deal: I really like the hillside location set behind a historic mansion. The open space is impressive for just 53 units, and the property layout is well designed. The in-place, assumable loan is irreplaceable being fixed for another 4 years, interest only for another year, and at 70% LTV.