315 15th St & 1445 Harrison St
Oakland, CA
Reborn from the historical Coit Hotel in Downtown Oakland, this 6-story building represents the beauty and opulence of a bygone era. This 118 unit multifamily residential property boasts +/-55,750 SF, plus 1 retail commercial space with 45 parking spaces on an entitled lot that is prime for development. The total Lot size is +/-18,730 square located in the heart of Oakland’s central business district at the corner of 15th and Harrison, near Lake Merritt.
Built in 1925, all units offer private kitchens and baths furnished with a refrigerator, stove, and working heat. Roughly, 75% of the units has been renovated including new interior and exterior paint at a cost of $800,000. All the units have energy efficient showerheads, incandescent lighting, low flow showerheads and water saver toilets at a cost of $200,000. The owner allocated $250,000 on a solar heater system equipped with Solar panels on a membrane structure roof. $350,000 on all new dual pane windows. The foundation is slab on grade with footing under supporting walls exterior walls are over wood frame. There has been a multimillion-dollar retrofit to the building and is exempt from the soft story list. The sewer lateral is compliant. The parking lot is a secure gated lot with a, surveillance system and control access to the front door. Currently, a portion of the parking lot is leased to Kaiser Permanente for their trucks, the remaining parking spaces are allocated for the tenants. For additional income there are 17 coin operated/ card pay washer & dryers in two different laundry rooms. There are 35 secured storage units in the basement with space to build more. Minimal deferred maintenance, convenient management and robust cash flow!
Tax Abatement Bonus- The property is mostly a low-income project with a regulatory agreement with the California Tax Allocation Committee with 25 years remaining. The building qualifies with the state and county and receives a welfare exemption that allows a secure property tax waiver on all ad valorem taxes, only bonds and assessments are paid. This increases the capitalization rate and cash on cash return beyond competing buildings for a greater return. This building provides a great hedge against inflation and recession. Many of the rents are government guaranteed which allow for increases as high as 10% per year. Being partially exempt from rent control allows for an infinite return on investment.
Collectively, the above sales price is based on a $23,799,000 sale of the apartment building & $5,995,000 sale of the entitled lot. The entitled lot located at the rear of the property could potentially be subdivided with a lot line adjustment and approved for 127 units development.
For the Offer Memorandum & Disclosures: https://app.disclosures.io/link/1445-Harrison-Street-ytfxccb0
