481 - 511 Thompson Avenue
Mountain View, CA 94043
The Thompson Cottages is a wonderful 24-unit apartment portfolio located in the highly desirable and thriving city of Mountain View, California. Built in 1963, the six individual fourplex buildings total 17,312 square feet and are situated on six separate parcels with a combined lot size of 71,114 square feet. The subject property has a unit mix consisting of 23 two-bedroom/one-bathroom units and one two-bedroom/two-bathroom unit. It is located off a quiet suburban street comprised of mainly single-family homes. These single-story cottage-style units have two large sliding glass doors to access the spacious, private backyards that are shaded by citrus trees, and give the entire property a garden feel.
Current ownership of over 20 years has consistently improved and maintained the property, spending approximately $400,000 in capital improvements. The units have been renovated with laminate flooring, interior paint, updated kitchen appliances including dishwashers, cabinets, and backsplashes, and the bathrooms have been remodeled. Exterior capital improvements include dual pane windows and sliding glass doors in all 24 units, roof and gutter replacement, and exterior paint. The Thompson Cottages offers the investor the opportunity to add further value by adding in-unit washer/dryers and continuing the repositioning of the property to the high specification preferences of Silicon Valley technology employees.
Since each property comprising the Thompson Cottages is less than 16 units, this portfolio does not require an on-site manager which significantly lowers the operational costs compared to other similarly sized properties. Additionally, each property can be sold individually as a stand alone fourplex providing the investor with a flexible exit strategy. Further, this asset is well positioned for potential redevelopment. Multiple nearby properties alongside North Rengstorff Avenue and the surrounding streets have been redeveloped into single family townhouse communities. More information on zoning can be found in the offering memorandum on the page titled "City of Mountain View R3 Zoning District Standards".
The Thompson Cottages is strategically located in the heart of Mountain View one block from the Safeway Shopping Center at West Middlefield Avenue and North Rengstorff Avenue, 0.8 miles from the San Antonio CalTrain Station, one mile from Highway 101, and 1.2 miles to El Camino Real. The property feeds into Monta Loma Elementary, Crittenden Middle, and highly prestigious and top-rated Los Altos High.
Many of the largest technology companies have operations in and around Mountain View including Google, Apple, Facebook, and Microsoft. The Thompson Cottages is located approximately 1.3 miles from Google’s headquarters. The prestigious location, apartment income upside, redevelopment potential, and flexible exit strategy make the Thompson Cottages a great opportunity for both the cash flow and appreciation-minded investor.