OCEANSIDE COASTAL MULTI-FAMILY $3,500,000

Transcription

1 OCEANSIDE COASTAL MULTI-FAMILY $3,500, Division Street Offered By: RAY ADAMS Multi-Family Investments LIC # CLARK RORBACH Multi-Family Investments LIC # GREG GERSHMAN Principal LIC #

2 EXECUTIVE SUMMARY Investment Offering: Offered for sale are twenty coastal multi-family units located West of Interstate 5 in Oceanside, California. The property offers excellent cash flow potential and a desirable coastal location in an improving market. There are 15 one bedroom units, 4 two bedroom units, and 1 three bedroom unit on site. Property Showings: Please drive by the property discreetly without disrupting the residents or management. Under no circumstances should residents be contacted without prior owner approval. Property can be shown with an acceptable offer. Location: Oceanside is a coastal city located in San Diego s North County. It is the 3rd largest city in San Diego County with a population of 172,294 (2013). Together, Carlsbad, Vista, and Oceanside form what is referred to as the Tri-City area. Additionally, Oceanside is located just South of the Marine Base, Camp Pendleton and has a strong presence in the community. Oceanside is a rising and upcoming city in San Diego County with many new developments recently completed and many more planned in the near future. Landlords have enjoyed the improving neighborhood and have felt steady rising rents over the past 5 years. Finally, Oceanside enjoys easy access to I-5, HWY 76 and HWY 78 making it an easy commute for both the local and commuting workforce. LIST PRICE: $3,500,000 TOTAL UNITS: 20 PRICE/UNIT: $175,000 PRICE/SF: $320 CURRENT CAP RATE: MARKET CAP RATE: CURRENT GRM: MARKET GRM: APPROX BLDG. SIZE: APPROX YEAR BUILT: 4.0% 5.3% ,942 SF APN: Coastal Asset West of I-5 Rent Increase Potential Stable Cash Flow Rapidly Increasing Rental Market 0.6 Miles to Transit Center 0.8 Miles To The Beach Division Street, Oceanside, CA

3 1228 Division Street, Oceanside, CA 3

4 RENT ROLL Unit Mix # OF UNITS APPROXIMATE SQUARE FEET CURRENT RENT MARKET RENT 1 bed, 1 bath $975-$1,050 $1,195 2 bed, 1 bath $1,150 $1,395 3 bed, 2 bath $1,590 $1,590 Laundry Income $336 $336 Reimbursement Utility Billing System (RUBS) $0 $0 Monthly Gross Income $21,351 $25,431 Annual Gross Income $256,213 $305, Division Street, Oceanside, CA

5 INCOME & EXPENSE SUMMARY PROPOSED FINANCING % OF VALUE Down Payment 40% $1,400,000 New First Loan 4.0% 30 year 60% $2,100,000 TOTAL $3,500,000 CURRENT RENT MARKET RENT ANNUAL GROSS SCHEDULED INCOME $256,213 $305,173 Vacancy 3.0% ($7,686) ($9,155) Effective Gross Income $248,527 $296,018 ESTIMATED EXPENSES Real Estate Taxes 1.10% $38,483 Charges on RE Taxes $254 Insurance $0.30 $3,283 Water/Sewer/Trash $23,471 Gas & Electricity $1,190 Landscaping $4,589 Management 6% $14,912 Res Manager $250/mo $3000 Maintenance $1,000/unit $20,000 Misc. $1,000 $5,509 Total Exp/unit Total Expenses 43% ($110,181) ($110,181) NET OPERATING INCOME $138,346 $185,837 CAPITALIZATION RATE 4.0% 5.3% PROPOSED FINANCING New First Loan 4.0% $2,275,000 ($120,309) ($120,309) CASH FLOW $18,037 $65,528 Cash On Cash Return 1.3% 4.7% 1228 Division Street, Oceanside, CA 5

6 SALE COMPARABLES OCEANSIDE COASTAL 1228 Division Street GARFIELD STREET APARTMENTS 336 Garfield Street 5 UNITS ON DIVISION 1209 Division Street HORNE STREET APARTMENTS S Horne Street SALE PRICE: $3,500,000 PRICE/UNIT: $175,000 PRICE/SF: $320 CAP RATE: 4.0% / 5.4% GRM 13.7 / 11.5 SALE PRICE: $1,020,000 PRICE/UNIT: $204,000 PRICE/SF: $271 CAP RATE: 3.9% GRM: 16.4 SALE PRICE: $850,000 PRICE/UNIT: $170,000 PRICE/SF: $237 CAP RATE: GRM: NA NA SALE PRICE: $1,212,500 PRICE/UNIT: $242,500 PRICE/SF: $315 CAP RATE: 3.7% GRM: 17.7 YEAR BUILT 1964 YEAR BUILT: 1987 YEAR BUILT: 1990 YEAR BUILT: 1952 SOLD: 1/13/2017 SOLD: 2/8/2016 SOLD: 1/31/ APARTMENTS ON CLEMENTINE N Clementine N APARTMENTS ON CLEMENTINE 610 N Clementine N POPLAR ROAD APARTMENTS 2126 Poplar Road OCEANSIDE, CA SALE PRICE: $2,075,000 SALE PRICE: $1,210,000 SALE PRICE: $1,290,000 PRICE/UNIT: $188,636 PRICE/UNIT: $242,000 PRICE/UNIT: $215,000 PRICE/SF: $250 PRICE/SF: $272 PRICE/SF: $290 CAP RATE: 3.9% CAP RATE: 4.5% CAP RATE: 4.7% GRM: 15.5 GRM: NA GRM: 14.3 YEAR BUILT: 1972 YEAR BUILT: 1987 YEAR BUILT: 1963 SOLD: 8/19/2015 SOLD: 1/6/2017 SOLD: 8/19/ Division Street, Oceanside, CA

7 SALE COMPARABLES Division Street, Oceanside, CA 7

8 RENT COMPARABLES APPROXIMATE UNIT MIX SQUARE FOOTAGE AVERAGE RENT RENT/SQFT OCEANSIDE COASTAL OFF MARKET 1 bed, 1 bath 500 $975-$1,050 $1.95-$ DIVISION STREET 2 bed, 1 bath 650 $1,150 $ bed, 1 bath 842 $1,590 $ GARFIELD STREET APARTMENTS 2 bed, 1 bath 775 $1,500 $ Garfield Street WEITZEL STREET APARTMENTS 1 bed, 1 bath 700 $1,300 $ S Weitzel Street 1 BEDROOM ON HORNE 1 bed, 1 bath NA $1,200 NA 300 S Horne Street CHARLES LIBBY HOUSE 1 bed, 1 bath 544 $1,950 $ Rockledge Street 1 BEDROOM ON CLEMENTINE 1 bed, 1 bath 655 $1,385 $ N Clementine Street ELAN VILLAGE NORTH 1 bed, 1 bath 700 $1,395 $ Vine Street HORNE STREET APARTMENTS 2 bed, 1 bath NA $1,550 NA 232 S Horne Street HORNE APARTMENTS 2 bed, 1 bath NA $1,495 NA 109 S Horne Street GRANT STUDIO Studio 450 $1,300 $ Grant Street GRANT STREET 1 BEDROOM 1 bed, 1 bath 600 $1, Grant Street Division Street, Oceanside, CA

9 RENT COMPARABLES Division Street, Oceanside, CA 9

10 Offered By: RAY ADAMS Multi-Family Investments LIC # CLARK RORBACH Multi-Family Investments LIC # GREG GERSHMAN Principal LIC # Executive Drive, 9 th Floor San Diego, CA Main Fax cushmanwakefield.com