PACIFIC BEACH // MIXED USE 1142 GARNET AVENUE SAN DIEGO, CA 92109

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1 PACIFIC BEACH // MIXED USE 42 GARNET AVENUE SAN DIEGO, CA 9209 OFFERING MEMORANDUM

PROPERTY OVERVIEW Marcus & Millichap is pleased to present 42 Garnet Avenue, a rare mixed use offering in the heart of Pacific Beach, just four blocks to the Pacific Ocean.

Comprised of two buildings, the front building, located on the bustling Garnet Ave is occupied by a restaurant, as well as a non-conforming 2 bedroom / bath apartment.

Above the restaurant houses the 2 bedroom/ bath apartment. The rear building, built in 203 and constructed with concrete blocks and extensive steel, is comprised of 37 self storage units.

2 PROPERTY OVERVIEW Marcus & Millichap is pleased to present 42 Garnet Avenue, a rare mixed use offering in the heart of Pacific Beach, just four blocks to the Pacific Ocean. The property is situated on the main commercial street in Pacific Beach, resulting in consistent business from local residents, tourists, and students alike. Comprised of two buildings, the front building, located on the bustling Garnet Ave is occupied by a restaurant, as well as a non-conforming 2 bedroom / bath apartment. The rear building houses 37 self storage units. The front building is currently being leased to the Latin Chef, specializing in Peruvian and Brazilian dishes. Above the restaurant houses the 2 bedroom/ bath apartment. The rear building, built in 203 and constructed with concrete blocks and extensive steel, is comprised of 37 self storage units. A DVR security system is in place with remote monitoring system and security cameras on every floor. This property offers an investor the opportunity to purchase an asset in one of San Diego s most desirable seaside communities. The property has tremendous rental upside by using proactive management to lease the remaining storage units. This property is perfect for an owner user looking to run their own business, as well as a savvy investor looking to buy a mixed use asset in a premier San Diego location. HIGHLIGHTS One of a Kind Asset Prime Pacific Beach Location Tremendous Opportunity for an Owner User to Live and Utilize Commercial Space Upside in Rents Across the Board Immediate Upside Through Restructuring Commercial Lease Opportunity to Maximize Self Storage Through Proactive Management Prime Garnet Avenue Retail Location

3 INTERIOR SELF-STORAGE

4 INTERIOR RESTAURANT

5 INTERIOR APARTMENT

PROPERTY DESCRIPTION ADDRESS... 42 Garnet Avenue, San Diego, CA 9209 2...# OF ELECTRIC METERS APN... 45-623-6-00 Latin Chef -,000 Sq. Ft....RETAIL ZONING.

6 PROPERTY DESCRIPTION ADDRESS Garnet Avenue, San Diego, CA # OF ELECTRIC METERS APN Latin Chef -,000 Sq. Ft....RETAIL ZONING... CC Bed/ Bath Non-Conforming...APARTMENT YEAR BUILT/RENOVATED...980/ Units...SELF-STORAGE BUILDING SIZE... 3,6 sq. ft. Flat...ROOF TYPE OF OWNERSHIP... Fee Simple Street Parking & One Handicap Space...PARKING

MARKET OVERVIEW PACIFIC BEACH Pacific Beach is known for its laid-back lifestyle and nightlife. Its coastline is bounded by the cliffs of La Jolla to the North and the Mission Bay Jetty to the South.

PB, as it is known by the locals, is one of the top four beaches of San Diego County. Garnet Ave hosts a number of local retail stores, shops, boutiques, restaurants and bars. Ocean Front Walk is a 3.

Tourmaline Surfing Park is at the northern end of Pacific Beach abutting La Jolla s cliffs, and the park s motto is Surf Well, Spread Aloha, Share Waves Without Judgement.

7 MARKET OVERVIEW PACIFIC BEACH Pacific Beach is known for its laid-back lifestyle and nightlife. Its coastline is bounded by the cliffs of La Jolla to the North and the Mission Bay Jetty to the South. Interstate 5 is to the East making Downtown San Diego a 5 minute drive from Pacific Beach, the ideal coastal location in San Diego County. PB, as it is known by the locals, is one of the top four beaches of San Diego County. Garnet Ave hosts a number of local retail stores, shops, boutiques, restaurants and bars. Ocean Front Walk is a 3.2 mile pedestrian boardwalk stretching from Law Street to the mouth of Mission Bay. At the West end of Garnet Ave and adjacent to the boardwalk you ll find Crystal Pier, a public pier and hotel. Tourmaline Surfing Park is at the northern end of Pacific Beach abutting La Jolla s cliffs, and the park s motto is Surf Well, Spread Aloha, Share Waves Without Judgement. Largely populated by young adults and college students, Pacific Beach is called home by 40,000 resididents. We are seeing a revamping of the local eating scene and a changing population. As rents and property values increase Pacific Beach s residents are becoming more affluent professionals.

8 LOCATION DOWNTOWN MISSION BAY PACIFIC BEACH 42 GARNET AVE.

9 DAWES ST. LOCATION 42 GARNET AVE. 42 GARNET AVE. FELSPAR ST. EVERTS ST. 42 GARNET AVE.

10 FINANCIAL ANALYSIS RENT ROLL DETAIL // SELF-STORAGE Unit Total Unit Type Square Feet,6 Scheduled Rent/ $75 $20 $0 $00 $00 $4,385 Scheduled Rent/ SF/ $3.00 $2.40 $.80 $2.20 $2.00 $2.00 $.80 $2.72 Potential Rent/ $4,780 Potential Rent/ SF/ $2.90

11 FINANCIAL ANALYSIS RENT ROLL DETAIL COMMERCIAL // LATIN CHEF Tenent Type Suite Square Feet % Building Share Latin Chef Retail, % Lease Term MTM to MTM Rent per Sq. Ft. Total Rent per Potential Rent Potential Rent per Sq. Ft. $3,600 $3,7 $3.75 Total,000 $3,600 $3,7 Total Annualized Rent $43,200 $45,000 Description of Operating Expense Reimbursements None, Current Tenant on Gross Lease Renewal Options and Option Year Rental Information None RESIDENTIAL // APARTMENT Unit Unit Type Feet 2 Bedroom, Bath Current Rent / Current Rent / SF / Scheduled Rent / Scheduled Rent / SF / Potential Rent / Potential Rent / SF /,000 $,00 $.0 $,00 $.0 $,900 $.90 Total,000 $,00 $.0 $,00 $.0 $,900 $.90

12 FINANCIAL ANALYSIS PRICING DETAIL SUMMARY PRICE $2,00,000 OPERATING DATA INCOME CURRENT YEAR DOWN PAYMENT $2,00,000 MULTI-FAMILY GROSS SCHEDULED RENT $3,200 $22,800 NUMBER OF APT. UNITS NUMBER OF COM. UNITS SELF-STORAGE GROSS SCHEDULED RENT VACANCY 40% $52,620 $2,048 0% $57,360 $5,736 NUMBER OF STO. UNITS 37 RETAIL SUITE GROSS SCHEDULED RENT $43,200 $45,000 PRICE PER SQ. FT. $ EXPENSE REIMBURSEMENTS $8,22 BUILDING SIZE 3,23 Sq. Ft. EFFECTIVE GROSS INCOME (EGI) $87,972 $27,645 APPROX. YEAR BUILT 980 / 203 LESS: EXPENSES ($38,666) ($44,09) NET OPERATING INCOME $49,306 $83,554 RETURNS CAP RATE CASH-ON-CASH DEBT COVERAGE RATIO FINANCING LOAN TYPE CURRENT 2.35% 2.35% N/A Optional TBD YEAR 3.98% 3.98% N/A TENANT IMPROVEMENTS LEASING COMMISSIONS CAPITAL EXPENDITURES CASH FLOW DEBT SERVICE NET CASH FLOW AFTER DEBT SERVICE 2.9% PRINCIPAL REDUCTION TOTAL RETURN 2.34% $49,306 $49, % $49, % $83,554 $83,554 $83,554 EXPENSES Loan information is subject to change. Contact your Marcus and Millichap Capital Corporation representative. # SUITES # UNITS 27 8 # UNITS TYPE RETAIL UNIT TYPE UNIT TYPE 2BR/BTH GLA,000 SQ. FT./UNIT 800 CURRENT RENT $3,600 CURRENT RENTS CURRENT RENTS $,00 PRO FORMA RENT $3,7 PRO FORMA RENT MARKET RENTS $,900 REAL ESTATE TAXES INSURANCE UTILITIES - COMBINED OPERATING EXPENSES - COMBINED REPAIRS & MAINTENANCE MISC. EXPENSES MANAGEMENT FEE TOTAL EXPENSES EXPENSES/SF $24,660 $3,804 $7,340 $2,862 $,983 $879 $38,666 $0.59 $24,660 $3,804 $7,340 $,900 $,900 $6,387 $44,09 $2.08

Non-Endorsements Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package.

13 Non-Endorsements Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 207 Marcus & Millichap. All rights reserved. GARNET AVENUE MIXED-USE: San Diego, CA. ACT ID Y RAYMOND CHOI FIRST VICE PRESIDENT INVESTMENTS SAN DIEGO OFFICE Tel: (858) / Fax: (858) raymond.choi@marcusmillichap.com License: CA MATT LOPICCOLO FIRST VICE PRESIDENT INVESTMENTS SAN DIEGO OFFICE Tel: (858) / Fax: (858) matt.lopiccolo@marcusmillichap.com License: CA VINCENT KRANTZ ASSOCIATE SAN DIEGO OFFICE Tel: (858) / Fax: (858) vincent.krantz@marcusmillichap.com License: CA

Offering Memorandum HOWARD AVENUE University Heights San Diego, CA 92104

Offering Memorandum HOWARD AVENUE University Heights San Diego, CA 92104 Offering Memorandum 1918 HOWARD AVENUE University Heights San Diego, CA 92104 1 N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E Non-Endorsements Marcus & Millichap is not affiliated