7 BEACH UNITS $2,800, S Pacific St, Oceanside, CA 92054

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1 7 BEACH UNITS $2,800, S Pacific St, Oceanside, CA PROPERTY FEATURES Steps to Sand Ocean Views Multi-million dollar neighborhood Rapidly appreciating market Desirable unit-mix Garage parking Excellent cash flow potential Favorable assumable financing Offered By: RAY ADAMS Multi-Family Investments ray.adams@cushwake.com LIC # CLARK RORBACH Multi-Family Investments clark.rorbach@cushwake.com LIC #

2 EXECUTIVE SUMMARY Investment Opportunity Offered for sale is a quality seven unit residential property located at the beach. This opportunity offers ocean views, premiere location, desirable unit mix, garage parking, attractive income potential, and a favorable assumable loan. The front four units are two-bedroom two bathroom units and offer ocean views. Further, the two 2nd level units enjoy a spacious balcony with spectacular views. The two downstairs units include a private fenced patio yard in front. The current rental rates are low compared to other coastal rental units. With some improvements and effective management the current rental income can be increased. Or, substantially increase the income by offering units as vacation weekly rentals. Finally, there is an existing assumable first loan on the property at 3.42%. Location Premiere coastal location offering ocean views and steps to the sand. This property is located at the beach surrounded by multi-million dollar homes and condominiums. Convenient access to a wide sandy beach and one block to Buccaneer Beach. Buccaneer Beach offers a beach snack bar, public park with basketball court, picnic tables, barbecue grills and more. In addition to beach activities, this location offers convenient access to the bike rail trail, shopping, dining, and public transportation. The Oceanside transit center offers rail service and bus routes. The Coaster train offers convenient access South as far as downtown San Diego. Amtrak offers service to Orange County and downtown LA. The Sprinter train provides commuter service from Oceanside to Escondido. Oceanside offers workers in San Diego and Orange County an accessible beach community in which to reside. Values in Oceanside continue to improve. Many older properties are being redeveloped with luxury townhouse units, row homes, and urban estate homes. Further, vacation rental demand continue to grow in demand and popularity. Downtown Oceanside has experienced a renaissance with new restaurants, micro breweries, luxury housing, and resort hotels under development. Property Description The subject property consists of two buildings. The front building has four two-bedroom, two bathroom units with a private balcony or patio yard. The upstairs units have vaulted ceilings. Some of the kitchens have new cabinets and countertops. All four two-bedroom units include a one-car garage with their rent. The rear building contains three onebedroom units upstairs and six one-car garage parking spaces on the first level. The one-bedroom units offer vaulted ceilings. Also, the rear building includes an extra storage/maintenance room and a coinoperated laundry room. There appears to be room for an additional car to park next to each garage door. Plus, Tait Street offers ample street parking. Rental Rates As the economy expands and the population increases the rental rates in Oceanside and at the beach have appreciated rapidly. The expanding economic bases of San Diego, North County, and Orange County continue to put pressure on the rental rates and property values in Oceanside. Further, the immediate neighborhood has improved with new luxury townhomes and houses being developed. These factors combined point to an optimistic future for real estate investors. Existing First Loan The existing First loan in the amount of $1,100,000 was originated by Chase Bank on 2/12/2016. The interest rate is 3.42% fixed until February Additionally, the loan payment is interest only until February After the initial 5 year period, the loan becomes an adjustable rate mortgage for the remaining 25 year terms. The adjustable rate is based upon the 6-month Libor index plus a margin of 2.25%. This loan is assumable with an approximately assumption fee of 1% of the loan amount. Buyer to verify terms of the existing loan during buyer s due diligence. Property Showings Please drive by the property discreetly without disturbing the residents or management. Property can be shown with an acceptable offer S Pacific St, Oceanside, CA 92054

3 LIST PRICE: $2,800,000 TOTAL UNITS: 7 PRICE/UNIT: $400,000 PRICE/SF: $606 CURRENT CAP RATE: MARKET CAP RATE: CURRENT GRM: MARKET GRM: 3.3% 4.1% BLDG. SIZE: 4,620 SF APN: GARAGES: 6 YEAR BUILT: 1964 / S Pacific St, Oceanside, CA

4 RENT ROLL Unit Mix APT # APPROXIMATE SQUARE FEET CURRENT RENT MARKET RENT 1-bedroom, 1 bath $1,600 $1,600 1 bed, 1 bath + gar $1,450 $1,700 2 bed, 2 bath + gar & view $2,100 $2,500 2 bed, 2 bath + gar & yard $2,100 $2,500 Other Income $50 $50 Monthly Gross Income $12,950 $15,050 Annual Gross Income $155,400 $180, S Pacific St, Oceanside, CA 92054

5 INCOME & EXPENSE SUMMARY PROPOSED FINANCING % OF VALUE Down Payment 61% $1,700,000 Assume Existing First Loan 3.42% 30 year 39% $1,100,000 TOTAL $2,800,000 CURRENT RENT MARKET RENT ANNUAL GROSS SCHEDULED INCOME $155,400 $180,600 Vacancy 3.0% ($4,662) ($5,418) EFFECTIVE GROSS INCOME Estimated Expenses $150,738 $175,182 Real Estate Taxes 1.08% $30,240 Charges on RE Taxes $0 Insurance $1,520 Water $89 $7,476 Gas & Electricity $2,925 Landscaping $1,200 Management 6% $8,998 Maintenance $1,000/unit $7,000 Misc. $250 $8,522 Total Exp/unit Total Expenses 38% ($59,655) ($59,655) NET OPERATING INCOME $91,083 $115,527 CAPITALIZATION RATE 3.3% 4.1% PROPOSED FINANCING New First Loan 3.42% $1,100,000 ($37,620) ($37,620) CASH FLOW $53,463 $77,907 Cash on Cash Return 3.1% 4.6% 1312 S Pacific St, Oceanside, CA

6 SALE COMPARABLES PACIFIC STREET S. Pacific St. SALE PRICE: $2,800,000 PRICE/UNIT: $400,000 PRICE/SF: $606 CAP RATE: 3.3% 4.1% GRM: YEAR BUILT 1964 /74 7 UNITS ON STRAND 408 S The Strand SALE PRICE: $2,750,000 PRICE/UNIT: $392,857 PRICE/SF: $591 CAP RATE: N/A GRM: N/A YEAR BUILT 1940 SOLD: 1/26/ UNITS ON PACIFIC N Pacific SALE PRICE: $1,650,000 PRICE/UNIT: $550,000 PRICE/SF: $1,100 CAP RATE: N/A GRM: N/A YEAR BUILT 1947 SOLD: 1/9/ BEACH FRONT UNITS ON PACIFIC 1315 S Pacific Street SALE PRICE: $3,275,000 PRICE/UNIT: $1,091,667 PRICE/SF: $1,229 CAP RATE: 4.2% GRM: N/A YEAR BUILT 1939 SOLD: 4/4/ UNITS ON PACIFIC 720 S Pacific Street SALE PRICE: $1,550,000 PRICE/UNIT: $516,667 PRICE/SF: $898 CAP RATE: N/A GRM: YEAR BUILT 1940 SOLD: 2/4/ UNITS ON STRAND 312 S The Strand SALE PRICE: $2,300,000 PRICE/UNIT: $575,000 PRICE/SF: $830 CAP RATE: 2.6% GRM: 25.6 YEAR BUILT 1946 SOLD: 6/2/ UNITS ON MEYERS 421 S Meyers Street SALE PRICE: $1,725,000 PRICE/UNIT: $287,500 PRICE/SF: $479 CAP RATE: 2.6% 5.2% GRM: YEAR BUILT 1956 SOLD: 01/17/2016 View from patio S Pacific St, Oceanside, CA 92054

7 SALES COMPARABLES MAP S Pacific St, Oceanside, CA

8 PROPERTY IMAGES S Pacific St, Oceanside, CA 92054

9 PROPERTY IMAGES 1312 S Pacific St, Oceanside, CA

10 PROPERTY IMAGES S Pacific St, Oceanside, CA 92054

11 PROPERTY IMAGES 1312 S Pacific St, Oceanside, CA

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