Prime Development Opportunity on Nine Parcels (68,517 SF / 1.57 acres) Development opportunity for up to 24 townhome units on 9 parcels on South 7th Street. There are five adjacent parcels on the East side of South 7th Street and four adjacent parcels directly across the street on the West side of South 7th Street. The 5 parcels on the East side of the street total 43,125 SF and the 4 parcels on the West side total 25,392 SF, for a combined total of 68,517 (Lot size as per county records). The parcels on the East side are 930-984 S. 7th Street, and the parcels on the West side are 935-961 S. 7th Street. Within the Envision San Jose 2040 General Plan, all parcels are designated as RN (Residential Neighborhood) and zoned R-2 Residence District (2 dwelling units per lot). The allowable density range for the R-2 district is eight to sixteen dwelling units per acre with a Maximum Allowable Height of 35 feet and a Maximum Number of Stories of 2.5. Under these guidelines, 15 units can be built on the East side and 8 units on the West side. Concept renderings and site plans for just such a project are included in this document. These concepts have not been submitted to the City of San Jose for approval. They are intended to provide the developer with an idea of what might be accomplished within the General Plan, Zoning, and State Density Law guidelines. The properties currently have rental structures on them that vary in range from a single-family house to four units, for a total of 20 rental units. The Gross Schedule Income for all units on the 9 parcels is $631,260. The Net Operating Income is $328,424 which generates a Cap Rate of 2.54% at a price of $12,500,000 and a GRM of 19.8. See the financial statement for details on the income and expenses. The structures were constructed between 1902 and 1980 and although they have been well-maintained, due to their age, the obsolete floorplans, the changing nature of San Jose, the high need for residential housing, and the proximity to the multitude of development projects in San Jose, the nine parcels are a prime redevelopment opportunity. There are 126 projects currently in the pipeline for redevelopment in the City of San Jose. In just the Central Planning Area (the downtown area in which these parcels are located), there are more than 90 development projects in the approval/planning/construction pipeline. All told, within the City of San Jose this represents 36,451 new housing units. The properties are located in the Downtown area and are close to major transit corridors off of West San Carlos Street and the commuter route of I-280. Diridon Station is also just two miles away, allowing commuters easy access to trains traveling up the peninsula and into San Francisco. The nine parcels are offered together, although considerations might be made for bundling the parcels on the East Side or the West Side separately.