Axis at Compass Pointe

Merced, California

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Axis at Compass Pointe Apartments
3779 Horizons Avenue, Merced, CA

Nestled between University of Merced and Merced College, this 2 year multi-family development is located in Merced County, a growing and thriving community in California's Central Valley. This Hacienda-style development features 96 apartments ranging from one- to three-bedroom dwellings complete with in-suite laundry, laminate wood flooring, new appliances, private patios and marble countertops. Our first project pays homage to the vintage architecture of the early Spanish influence in this region and stands out in this up-and-coming neighborhood. Additional amenities include on-site private parking and leasing office. A clubhouse, social space, pool and fitness center will be completed in 2021.

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Property Features

Among the preferred off-campus housing for UC Merced students, faculty and staff

Among the preferred housing for traveling professionals and essential workers due to the generous amenities and convenient location near major hospitals, educational centers, and high profile employers

Favored by families for its quiet and safe community, easy access to local parks, and walking distance to local public schools

Preferred by pet owners for to the proximity of Merced Dog Park, access to beautiful walking paths, and our generous pet policy

  • Valued at $25,000,000
  • Units: 96
  • Style: 2-Story Historic Hacienda
  • Roof: Pitched with Tile
  • Build Completed: 2019
  • Square Footage: 95, 736
  • Asset: Class A
  • Site: 4.87 Acres
  • On-site Parking Spaces: 128
  • Number of Buildings: 12 Residential, 1 Common
  • Security: Nightly Patrols, Security Cameras, Fire Monitoring
  • Walking distance to Merced College
  • 6-mile drive to University of California, Merced
  • Centrally located along Highway 99 providing access to the greater Central Valley
  • Public Transportation is located across the street from the community
  • 1-mile drive to Merced Mall, Merced Dog Park, and Merino Public Park (across the street)
  • Less than 2 hours drive to Yosemite National Park to the East, and Monterey Bay to the West
  • Major hub for the proposed California High Speed Rail, bringing San Francisco and San Jose a mere 60 minutes away by train

By the Numbers

RENTAL INCOME

Monthly Rents: $145,320

Annual Rents: $1,743,840

Other Annual Income: $ 81,600

RENTAL EXPENSES

Annual Vacancy: $91,272

Annual Expenses: $566,000

Annual Mortgage Payments: $566,000

ASSUMPTIONS

Rental Growth Rate: 4.00%

Expense Growth Rate: 4.00%

Property Growth Rate: 4.00%

Marginal Tax Rate: 0.00%

Capital Gain Tax Rate: 0.00%

Financial Ratios

Year 1 Financial Ratios

Debt Coverage Ration (DCR): 2.26

Capitalization Rate Based on Cost: 4.70%

Capitalization Rate Based on FMV: 4.52%

Value of Property Using this Cap Rate: $25,250,730

Cash on Cash Return before Taxes: 9.36%

Cash on Cash Return after Taxes: 9.36%

Gross Rent Monthly Multiplier (GRM): 178.92

Year 5 Financial Ratios

Debt Coverage Ration (DCR): 2.40

Capitalization Rate Based on Cost: 5.44%

Capitalization Rate Based on FMV: 4.47%

Value of Property Using this Cap Rate: $29,265,107

Cash on Cash Return before Taxes: 11.36%

Cash on Cash Return after Taxes: 11.36%

Gross Rent Monthly Multiplier (GRM): 178.92

Year 10 Financial Ratios

Debt Coverage Ration (DCR): 2.90

Capitalization Rate Based on Cost: 6.56%

Capitalization Rate Based on FMV: 4.43%

Value of Property Using this Cap Rate: $35,255,132

Cash on Cash Return before Taxes: 15.33%

Cash on Cash Return after Taxes: 15.33%

Gross Rent Monthly Multiplier (GRM): 178.92

Portfolio Pipeline


 

$50,000,000 - Projected Down Payment

70% - Percentage of Cost

60% - Fair Market Value

 

Existing Loan for Compass Pointe 1


 

$14,798,000 - Initial Loan Balance/Investment

70% - Percentage of Cost

59% - Fair Market Value

 

Permanent Loan and Mezzanine Funding

 

Loan 1 Amount: $14,798,000 Permanent Loan

Rate: 3.40% Term (Years): 30

Payment: $65,626.00

Loan 2 Amount: $4,000,000 Bridge Loan

Rate: 8.00% Term (Years): 3

Payment: $26,667.00

 

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