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13-Unit Multifamily Complex in Berkeley Sold for $4.025 Million by NAI Northern California

BERKELEY, CA – APRIL 2016 – NAI Northern California, a member of the world’s premier managed network of commercial real estate firms, is pleased to announce the sale of 2607 Ellsworth, a 13-unit multifamily complex located in Berkeley, California. Shivu Srinivasan, Senior Investment Advisor, and Grant Chappell, Senior Vice President for NAI, represented both parties in the transaction.

 Located four blocks south of the UC Berkeley campus, 2607 Ellsworth offers a strong mix of two bedroom/bathroom units with a penthouse unit featuring two rooftop decks.  Ample retail and entertainment options and close proximity to public transportation coupled with a stable student rental market resulted in significant investor interest for the complex.

 “With below market rents and spacious units, this complex offers a buyer considerable rental upside,” commented Shivu Srinivasan, Senior Investment Advisor for NAI.  “We received multiple offers and were able to close within 45 days with very short contingencies.”

The complex sold for $310K per unit and $361 per sf, a premium for the downtown Berkeley market.

About NAI Northern California

NAI Northern California is full service commercial real estate firm in the San Francisco Bay Area and part of NAI Global, the largest managed network of Commercial Real Estate Brokerage Service firms in the World. Recognized as one of the Top 25 Commercial Real Estate Firms by the East Bay and San Francisco Business Times, NAI Northern California provides comprehensive brokerage, leasing, debt, advisory, and property management services for corporate end users, property owners, developers, investors and financial institutions.

NAI Northern California Completes $1.925M Land Sale in Berkeley

BERKELEY, CA – APRIL 2016 – NAI Northern California is pleased to announce the recent completion of a $1.925 million sale of a .33-acre commercial land parcel near downtown Berkeley.

A developer group from San Francisco and the South Bay purchased the land, located on 1740 San Pablo Road on the northwest corner of Delaware Street and San Pablo Road in downtown Berkeley.

Mary Alam, Vice President at NAI Northern California’s San Francisco office, represented both buyer and seller in the transaction.  “This was an excellent opportunity for the buyer to purchase a quality site in downtown Berkeley,” said Alam, adding, “the proximity to UC Berkeley, prime retail such as Whole Foods, and overall key demographics make this acquisition a valuable development play for the buyers.”

With a potential residential development of up to 44 units, this recent sale is the latest of several transactions NAI has represented in the Berkeley market demonstrating a clear and continuing demand for multi-family opportunities.

“The acquisition of this parcel was very complex and time-consuming; however Mary’s dedication and commitment to the purchase and sale greatly simplified the process,” noted NAI’s President James Kilpatrick.  “Mary has once again shown her superior skills in providing value to her clients.”  Alam specializes in leased investments with a focus on retail, office and redevelopment opportunities.

About NAI Northern California

NAI Northern California is full service commercial real estate firm in the San Francisco Bay Area and part of NAI Global, the largest managed network of Commercial Real Estate Brokerage Service firms in the World. Recognized as one of the Top 25 Commercial Real Estate Firms by the East Bay and San Francisco Business Times, NAI Northern California provides comprehensive brokerage, leasing, debt, advisory, and property management services for corporate end users, property owners, developers, investors and financial institutions.

Mike Priolo Sells San Mateo Multi-family Property for $2.2M

MARCH 2016 – San Mateo, CA – NAI Northern California announced today that it has closed the sale of 456 Studio Circle, a six-unit multifamily complex located in San Mateo, California.

Built in 1959 and consisting of (4) one bed/bath units and (2) two bed/bath units, the multifamily complex is located in the San Mateo/Burlingame border within walking distance to downtown Burlingame. Featuring rents 40% below market, the sale’s price per unit, about $367,000 is within the top 30% of all Class C apartments sold in San Mateo in the last 14 months.

Mike Priolo, Investment Advisor for NAI Northern California, represented both buyer and seller in the $2.2M sale. “This sale is the latest of several recent major transactions we’ve represented in San Mateo, demonstrating a clear demand for multifamily inventory in this market,” commented Priolo.

A veteran real estate professional with over nine years of experience in the Bay Area, Mr. Priolo specializes in the sale and acquisition of multifamily and NNN assets, consistently exceeding his client’s expectations through his dedicated focus and market expertise.

About NAI Northern California

NAI Northern California is full service commercial real estate firm in the San Francisco Bay Area and part of NAI Global, the largest managed network of Commercial Real Estate Brokerage Service firms in the World. Recognized as one of the Top 25 Commercial Real Estate Firms by the East Bay and San Francisco Business Times, NAI Northern California provides comprehensive brokerage, leasing, debt, advisory, and property management services for corporate end users, property owners, developers, investors and financial institutions.

Selling Commercial Real Estate: Single-Tenant Net Leased Assets

By Kathleen Silver, Associate VP of Sales and Operations

Why do real estate investors buy STNL properties?

Investment grade triple net-lease (NNN) properties are a valuable and powerful addition to an investor’s portfolio.

A single-tenant, net-leased investment gives total (fee-simple) ownership of a freestanding, single-tenant commercial property, which is pre-leased to a high credit retail tenant (Ex: Walgreens, Jack in the Box, Walmart or Best Buy, all on long-term leases, providing a stable and predictable, long-term cash flow.) In the case of a NNN lease, the tenant is responsible for the maintenance, taxes, and insurance to the property.

Example:  An investor buys a Walgreens in San Francisco, CA (there’s a ton of them!). The lease purchased with the property is for a non-cancelable, 25-year period. The tenant is responsible for all costs to operate and maintain the property (including property taxes). In many cases, when the lease expires, the property owner owns the property free and clear. This is sometimes referred to as a “care-free” or “absolute” NNN lease.

Who Should Buy a NNN Lease Asset?

NNN lease ownership is ideal for first-time real estate investors as well as for savvy veterans seeking to simplify their holdings by selling off management-intensive properties and trading into less complicated real estate holdings.

The price range for a NNN lease property varies depending upon the lease length, quality of tenant, and location. Dollar stores and fast food restaurants are typically more affordable, while drugstores can be valued in the tens of millions. Because most investors borrow funds to acquire their NNN property, it is essential to work with a qualified mortgage broker to acquire the best possible financing. The minimum down payment typically required by lenders is 20-25% for investment grade tenants and 25-40% for most other tenants.

Advantages of Owning a NNN Leased Property

  • Capital gains deferment of taxes through a 1031 tax-deferred exchange
  • Either 100% management-free or require very little involvement from the landlord/owner
  • High residual value and a liquid investment
  • Can obtain non-recourse, fixed financing for more than 10 years with NNN lease properties
  • There are little to no vacancy factors, tenant improvement costs, management fees or leasing fees
  • Location! Location! Location! Many are in prime retail areas with high traffic counts and great demographics
  • Tenants sign leases of 5 years to 25 years

Why Would a Commercial Investment Advisor Want to Exclusively Sell NNN Lease Properties?

NNN properties allow a real estate agent/broker to engage in many benefits that are not commonly seen with other property types:

  • NNN advisors with NAI Northern California have a database filled with leads nationally – not just regionally. Easily do deals in other states.
  • NNN lease investments are fairly easy to understand, which will allow a new, more green agent to learn the product type quickly.
  • Since NNN properties are one of the most highly sought after property types, you will find that a “clean” deal, accurately priced will have no lack of buyers. Most of the time, you will get all cash offers with short due diligence timelines.

Our NNN Team is lead by Sr. Investment Associate, Chris Lomuto and Investment Associate, Milo Spector. Their team maintains direct outreach to thousands of property owners of NNN assets nationally. NAI Northern California is a member of a 6,700 associate 375 global office network of advisors. Our NNN team is highly connected to the national NNN lease market.

To be a part of this team means you will have the training, technology platform with leads ready to go and marketing support to provide you the shortest runway to success. Please visit our LinkedIn company page to follow us!
 

Connect with Kathleen on LinkedIn or Twitter.

CeX Leases Prime Retail Space in Union Square

SAN FRANCISCO, CA – February 2016 – Mary Alam with NAI Northern California leased 1,826  square feet of retail space at 938 Market Street to CeX Ltd.

The storefront, formerly occupied by RadioShack, is located at the epicenter of Downtown San Francisco and features Market Street frontage with high pedestrian traffic.  CeX signed a 10-year NNN lease at an above market rate. The lease includes 3% annual rent increases and four, 5-year options.

CeX Ltd. is a second-hand goods chain store that specializes in technology, computing, and video games. CeX was established in the UK twenty-five years ago and has close to five hundred stores worldwide.

Mary Alam with NAI Northern California represented both the landlord and the tenant in this transaction. Alam is a top producing broker at NAI Northern California with an expert knowledge of the San Francisco Bay Area real estate market.  She specializes in leased investments with a focus on retail, office and redevelopment opportunities.  Alam is highly skilled in providing value to her clients with her superior networking and deal-making skills plus top notch execution.

About NAI Northern California

NAI Northern California is full service commercial real estate firm in the San Francisco Bay Area and part of NAI Global, the largest managed network of Commercial Real Estate Brokerage Service firms in the World. Recognized as one of the Top 25 Commercial Real Estate Firms by the East Bay and San Francisco Business Times, NAI Northern California provides comprehensive brokerage, leasing, debt, advisory, and property management services for corporate end users, property owners, developers, investors and financial institutions.

NAI Northern California Welcomes Armand Anicete

SAN FRANCISCO, CA – February 2016 – NAI Northern California announced today that Armand Anicete has joined the firm as a Senior Advisor.  Mr. Anicete joins NAI from Sequoia Realty Capital, where he specialized in office, retail, R&D, multi-family, investments and ground up development.

Mr. Anicete is charged with accelerating the growth of NAI Northern California’s leasing and investment advisory services in the San Mateo County office and medical markets. This market currently totals more than 49M square feet. Mr. Anicete will also partner with NAI’s Oakland and San Jose offices to continue to grow services in each market.

Prior to NAI Northern California, Mr. Anicete served as an associate for Sequoia Realty Capital, where in his seven years with the firm he completed over 120 transactions resulting in over $100M.  Mr. Anicete is a graduate of the University of California Santa Barbara where he received a B.A. in Global Studies and Sports Management.  Mr. Anicete is a member of the San Mateo County Association of Realtors (SAMCAR) and dedicates his extra time to the American Red Cross and Make-a-Wish foundation.

“Armand is the ideal leader for the San Mateo County market,” said Mr. Kilpatrick. “He brings to NAI Northern California an unparalleled depth of experience in both winning new business and setting the standard for exceptional client service.  With his impressive track record, we look forward to working closely with him to increase our market share across the region.

Mr. Anicete cites NAI’s unique technology and expertise as a major decision factor for joining the firm.  “NAI Northern California really appealed to me because of their unique combination of innovation and expertise. Their proprietary broker platform allows me to maximize value and provide optimal results for all clients.”

About NAI Northern California

NAI Northern California is full service commercial real estate firm in the San Francisco Bay Area and part of NAI Global, the largest managed network of Commercial Real Estate Brokerage Service firms in the World. Recognized as one of the Top 25 Commercial Real Estate Firms by the East Bay and San Francisco Business Times, NAI Northern California provides comprehensive brokerage, leasing, debt, advisory, and property management services for corporate end users, property owners, developers, investors and financial institutions.

NAI Senior Advisor Joby Tapia Closes Novato Multifamily Property for $3,020,000

NOVATO, CA – January 2016 – NAI Northern California announced the sale of 729 Cherry Street in Novato, California.

The property sold for $3,020,000, or about $300 per square foot, a 10% premium over the market rate for the area. The property is located close to Downtown Novato and consists of 15 units, including 2 bed/1 bath and 1 bed/1 bath units.  Joby Tapia represented the seller and persevered through two evictions and a fire during escrow.  Tapia was able to balance the needs of the seller along with the demands of the buyer to negotiate acceptable reconstruction terms. The diligence and service provided by Tapia salvaged the deal.

Tapia is an accomplished Multifamily Executive with over 16 years of experience managing commercial and multi-family assets, including market rate and rent-controlled properties, for both private and institutional owners in Northern California.

About NAI Northern California

NAI Northern California is full service commercial real estate firm in the San Francisco Bay Area and part of NAI Global, the largest managed network of Commercial Real Estate Brokerage Service firms in the World. Recognized as one of the Top 25 Commercial Real Estate Firms by the East Bay and San Francisco Business Times, NAI Northern California provides comprehensive brokerage, leasing, debt, advisory, and property management services for corporate end users, property owners, developers, investors, and financial institutions.

 

5 Health and Wealth Hacks You Can Start Today

Almost everyone wants to be healthier and more financially secure. Much of the advice you see is either unsupported or difficult to implement. Here are 5 areas confirmed by virtually all research to be positive, beneficial additions to your life that you can easily embrace right now. It’s worth noting that health always improves your base from which you can work towards financial success and the reverse isn’t often true.

  1. Start your day at 5:30 am. The statistics are undeniable. This is the right decision. Furthermore, no research supports the common “I’m a night person” statement. Unfortunately, saying “get up early” is as effective as saying, “get a job”. So here’s how to actually do it.
  • Step 1: Figure out your personal motivating factors
  • Step 2: Visualize value you’ll receive like success & health
  • Step 3: Visualize the negatives of late rising like grogginess, running late, wasteful mornings and missed opportunities
  • Step 4: Tell friends and family, share this article, and tell them you are committed to this change. This will help your guilt factor. You could also commit to Soul Cycle or another cultish early morning group class.
  • Step 5: Practice now (or next time you’re home) by getting in bed with your alarm set for 3 minutes later. Gently but immediately get out of bed. Do this 5-10 times. Seriously. Don’t skip this last step.

Read the rest of James Kilpatrick’s health and wealth hacks here!