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NAI Northern California Represents $1.3MM Sale of Multifamily and Sets Record for Oakland

OAKLAND, CA – April 6, 2017

NAI Northern California, the Bay Area presence for NAI Global, the largest commercial real estate brokerage network in the world, is proud to announce the sale of a unique multifamily property in West Oakland. Sr. Vice President, Grant Chappell and Investment Advisors, Tim Norkol and Jenny Lu, represented the seller in the $1.3 million dollar sale.

Sold at $350K over the asking price, the two-unit, 3,120 square foot multifamily building received 15 offers and was followed by a swift 21-day Escrow. Additionally, the transaction set a record for West Oakland at $650,250 per unit.

“This property was a rare opportunity in West Oakland that drew interest from both investors and owner-users,” says Tim Norkol. “With a possible rent control exemption and three bathrooms in each large unit, we received a total of 15 offers and countered the top 4 parties, closing over $350K above our list price, thanks to our strategic marketing plan. The sale was hotly contested throughout and our repeat client was very pleased with the outcome.”

Once an old church, the beautifully renovated and currently vacant property was converted to condominium specifications. It now offers great potential for a harmonious user-owner opportunity with the possibility of rent control exemption.

The Oakland property sits at the crescent of Highways 980 and 880 close to 19th Street BART Station, Paramount Theatre, and various schools and retail outlets.

About NAI Northern California
NAI Northern California is at the leading edge of technology, collaborative culture, and training, giving our local professionals a competitive advantage and creating better outcomes for our clients. We are consistently a top Commercial Brokerage in the Bay Area, and continue to grow our team and revenues.

NAI Global is the largest commercial real estate brokerage network. Founded in 1978, today NAI Global has more than 400 offices worldwide and over 7,000 professionals, managing over 380 million square feet of property. Global offices deliver market-leading services locally and combine their in-market strengths to form a powerful bond of insights and execution for clients with multi-market challenges.

To learn more, visit www.nainorcal.com
Explore career opportunities with our winning team at www.nainorcal.com/careers

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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.