1946 Reed Avenue - Pacific Beach

Transcription

1 1946 Reed Avenue - Pacific Beach OFFERING MEMORANDUM

2 CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE 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.

3 TABLE OF CONTENTS Section 1 PRICING AND FINANCIAL ANALYSIS Section 2 PROPERTY DESCRIPTION Section 3 DEMOGRAPHIC ANALYSIS

4 PRICING AND FINANCIAL ANALYSIS 1946 Reed Avenue - Pacific Beach

5 PRICING AND FINANCIAL ANALYSIS OFFERING SUMMARY Unit Mix No. of Units Unit Type Approx. Square Feet 4 2 Bdr 1 Bath Total 2,432 Price $1,475,000 Down Payment 40% / $590,000 Price/Unit $368,750 Price/SF $ Number of Units 4 Rentable Square Feet 2,432 Year Built 1952 Lot Size 6247 Vital Data CAP Rate - Current 3.03% GRM - Current Net Operating Income - Current $44,641 Net Cash Flow After Debt Service - Current -1.0% / -$6,061 Total Return - Current 1.6% / $9,524 CAP Rate - Pro Forma 4.45% GRM - Pro Forma Net Operating Income - Pro Forma $65,651 Net Cash Flow After Debt Service - Pro Forma 2.5% / $14,949 Total Return - Pro Forma 5.2% / $30,535 Major Employers Company Local Employees University of Calif San Diego 5,000 Cricket Stx 4,000 Medical Center 4,000 Rady Children's Hospital-San Diego 3,041 Sharp Memorial Hospital 3,000 McDonald's 2,142 University of San Diego 1,582 Caltrans District 11 1,500 Kleinfelder Associates 1,500 San Diego Mesa College 1,500 Leidos Inc 1,120 Maintenance Unit 1,000 Demographics 1-Mile 3-Miles 5-Miles 2014 Total 28, , ,977 Population 2019 Total 29, , ,640 Population 2014 Total 14,975 49, ,760 Households 2019 Total 15,074 49, ,709 Households Median HH Income $56,654 $65,510 $61,492 Per Capita Income (based on Total Population) Average (Mean) HH Income $41,563 $44,089 $40,785 $80,082 $95,883 $91,847 1

6 PRICING AND FINANCIAL ANALYSIS FINANCING Existing Financing Loan Type Other Interest Rate 4.000% Amortization Year Fixed Proposed Financing First Trust Deed Loan Amount $885,000 Loan Type Proposed New Interest Rate 4.0% Amortization 30 Years Debt Coverage Ratio

7 PRICING AND FINANCIAL ANALYSIS UNIT MIX No. of Units Unit Type Approx. Square Feet Current Rents Rent/ SF Monthly Income Pro Forma Rents Rent/ SF Monthly Income 4 2 Bdr 1 Bath 608 $1,525 $2.18 $6,100 $2,000 $2.86 $8,000 4 TOTAL 2,432 $6,100 $8,000 Unit Mix Unit Rent & Rent/SF $1,600 $2.20 $1,400 $1,200 $2.00 $1.80 $1.60 $1,000 $1.40 $800 $1.20 $1.00 $600 $0.80 $400 $0.60 2B1B: 100% $200 $0 2B1B $0.40 $0.20 $0.00 3

8 PRICING AND FINANCIAL ANALYSIS RENT ROLL Unit Number Unit Type Unit SF Current Rent Rent/ SF Asking Rent Rent/ SF Parking Storage Bdr 1 Bath 608 $1,650 $2.71 $2,000 $3.29 yes yes Bdr 1 Bath 608 $1,650 $2.71 $2,000 $3.29 yes yes Bdr 1 Bath 608 $1,400 $2.30 $2,000 $3.29 yes yes Bdr 1 Bath 608 $1,400 $2.30 $2,000 $3.29 yes yes TOTAL VACANT $0 $0 4 TOTAL OCCUPIED 2,432 $6,100 $8,000 4 TOTAL 2,432 $6,100 $8,000 4

9 PRICING AND FINANCIAL ANALYSIS INCOME & EXPENSES Total Number of Units: 4 Total Rentable Area: 2,432 SF Income Current Per Unit Pro Forma Per Unit GROSS POTENTIAL INCOME $73,200 $18,300 $96,000 $24,000 Vacancy/Collection Allowance (GPR) 3.0% / $2,196 $ % / $2,880 $720 EFFECTIVE GROSS INCOME $71,004 $17,751 $93,120 $23,280 Expenses Real Estate Taxes $17,321 $4,330 $17,321 $4,330 Insurance $972 $243 $972 $243 Utilities $2,520 $630 $2,520 $630 Repairs & Maintenance $2,000 $500 $2,000 $500 Management Fee 5.0% / $3,550 $ % / $4,656 $1,164 TOTAL EXPENSES $26,363 $6,591 $27,469 $6,867 Expenses per SF $10.84 $11.29 % of EGI 37.1% 29.5% NET OPERATING INCOME $44,641 $11,160 $65,651 $16,413 5

10 PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 1946 Reed Avenue - Pacific San Diego, CA Price $1,475,000 Down Payment 40% / $590,000 Number of Units 4 Price/Unit $368,750 Rentable Square Feet 2,432 Price/SF $ CAP Rate - Current 3.03% CAP Rate- Pro Forma 4.45% GRM - Current GRM- Pro Forma Year Built 1952 Lot Size 6247 Type of Ownership Fee Simple Annualized Operating Data Income Current Pro Forma Gross Potential Rent $73,200 $96,000 Gross Potential Income $73,200 $96,000 Less: Vacancy/Deductions (GPR) 3.0% / $2, % / $2,880 Effective Gross Income $71,004 $93,120 Less: Expenses $26,363 $27,469 Net Operating Income $44,641 $65,651 Net Cash Flow Before Debt Service $44,641 $65,651 Debt Service $50,702 $50,702 Debt Coverage Ratio Net Cash Flow After Debt Service -1.0% / -$6, % / $14,949 Principal Reduction $15,585 $15,585 Total Return 1.6% / $9, % / $30,535 Financing FIRST TRUST DEED Loan Amount $885,000 Loan Type Proposed New Interest Rate 4.0% Amortization 30 Years Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative. Expenses Real Estate Taxes $17,321 $17,321 Insurance $972 $972 Utilities $2,520 $2,520 Repairs & Maintenance $2,000 $2,000 Management Fee $3,550 $4,656 Total Expenses $26,363 $27,469 Expenses/unit $6,591 $6,867 Expenses/SF $10.84 $11.29 % of EGI 37.13% 29.50% Scheduled Income No. of Units Unit Type Approx. Square Feet Current Rents Rent/ SF Monthly Income Pro Forma Rents Rent/ SF Monthly Income 4 2 Bdr 1 Bath 608 $1,525 $2.18 $6,100 $2,000 $2.86 $8,000 4 Total/Wtd. Avg. 2,432 $6,100 $8,000 6

11 PROPERTY DESCRIPTION 1946 Reed Avenue - Pacific Beach

12 PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights All 2 bedroom units Garages Parking On site Laundry Storage Remodeled units Newer Carpets throughout each unit Marcus and Millichap is pleased to offer 4 units in Pacific Beach for sale. The property consists of four 2 bedroom one bath units in excellent condition in the prime rental market of pacific beach. All units have newer carpets throughout, parking and storage. There is on site laundry and two garages that have been converted to storage. The rents are under market and can be increased without putting more money into the property, as the units are already remodeled and in good condition 8

13 PROPERTY DESCRIPTION INVESTMENT OVERVIEW Marcus and Millichap is pleased to offer 4 units in Pacific Beach for sale. The property consists of four 2 bedroom one bath units in excellent condition in the prime rental market of pacific beach. All units have newer carpets throughout, parking and storage. There is on site laundry and two garages that have been converted to storage. The rents are under market and can be increased without putting more money into the property, as the units are already remodeled and in good condition 9

14 PROPERTY SUMMARY The Offering Property Address PROPERTY DESCRIPTION 1946 Reed Avenue - Pacific Beach San Diego, CA Site Description Number of Units 4 Year Built 1952 Rentable Square Feet 2,432 Lot Size 6247 Type of Ownership Fee Simple Parking 4 spaces and garages 10

15 PROPERTY DESCRIPTION PROPERTY PHOTOS 11

16 PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map 12

17 1946 Reed Avenue - Pacific Beach PROPERTY DESCRIPTION AERIAL PHOTO 13

18 PROPERTY DESCRIPTION SITE PLAN 14

19 PROPERTY DESCRIPTION FLOOR PLANS 15

20 DEMOGRAPHIC ANALYSIS 1946 Reed Avenue - Pacific Beach

21 DEMOGRAPHIC ANALYSIS DEMOGRAPHIC REPORT 1 Mile 3 Miles 5 Miles 2000 Population 27, , , Population 27, , , Population 28, , , Population 29, , , Households 14,305 47, , Households 14,121 47, , Households 14,975 49, , Households 15,074 49, , Average Household Size Daytime Population 7,445 33, , Owner Occupied Housing Units 24.94% 45.68% 44.77% 2000 Renter Occupied Housing Units 68.97% 48.40% 49.97% 2000 Vacant 6.09% 5.92% 5.26% 2014 Owner Occupied Housing Units 23.21% 45.44% 44.17% 2014 Renter Occupied Housing Units 76.79% 54.56% 55.83% 2014 Vacant 2.27% 3.80% 3.26% 2019 Owner Occupied Housing Units 22.88% 45.21% 43.91% 2019 Renter Occupied Housing Units 77.12% 54.79% 56.09% 2019 Vacant 2.10% 3.69% 3.13% $ 0 - $14, % 9.5% 10.4% $ 15,000 - $24, % 7.8% 9.0% $ 25,000 - $34, % 8.7% 8.4% $ 35,000 - $49, % 13.0% 13.4% $ 50,000 - $74, % 16.8% 16.9% $ 75,000 - $99, % 13.5% 13.3% $100,000 - $124, % 9.6% 9.2% $125,000 - $149, % 6.5% 5.8% $150,000 - $199, % 7.3% 6.3% $200,000 - $249, % 2.5% 2.7% $250, % 4.8% 4.6% 2014 Median Household Income $56,654 $65,510 $61, Per Capita Income $41,563 $44,089 $40, Average Household Income $80,082 $95,883 $91,847 Demographic data 2012 by Experian. 17

22 DEMOGRAPHIC ANALYSIS SUMMARY REPORT Geography: 5 miles Population In 2014, the population in your selected geography is 305,976. The population has changed by 6.67% since It is estimated that the population in your area will be 309,639 five years from now, which represents a change of 1.19% from the current year. The current population is 51.11% male and 48.88% female. The median age of the population in your area is 34.8, compare this to the Entire US average which is The population density in your area is 3, people per square mile. Households There are currently 133,760 households in your selected geography. The number of households has changed by 5.50% since It is estimated that the number of households in your area will be 135,709 five years from now, which represents a change of 1.45% from the current year. The average household size in your area is 2.21 persons. Income In 2014, the median household income for your selected geography is $61,491, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 27.71% since It is estimated that the median household income in your area will be $72,710 five years from now, which represents a change of 18.24% from the current year. The current year per capita income in your area is $40,784, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $91,846, compare this to the Entire US average which is $74,533. Race & Ethnicity The current year racial makeup of your selected area is as follows: 74.27% White, 2.88% Black, 0.33% Native American and 10.77% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 16.86% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Housing In 2000, there were 59,910 owner occupied housing units in your area and there were 66,876 renter occupied housing units in your area. The median rent at the time was $830. Employment In 2014, there are 160,450 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 73.72% of employees are employed in white-collar occupations in this geography, and 26.14% are employed in blue-collar occupations. In 2014, unemployment in this area is 6.14%. In 2000, the average time traveled to work was 21.9 minutes. Demographic data 2012 by Experian. 18

23 DEMOGRAPHIC ANALYSIS POPULATION DENSITY Demographic data 2012 by Experian. Number of people living in a given area per square mile. 19

24 DEMOGRAPHIC ANALYSIS EMPLOYMENT DENSITY Demographic data 2012 by Experian. The number of people employed in a given area per square mile. 20

25 DEMOGRAPHIC ANALYSIS AVERAGE HOUSEHOLD INCOME Demographic data 2012 by Experian. Average income of all the people 15 years and older occupying a single housing unit. 21

26 DEMOGRAPHIC ANALYSIS TRAFFIC COUNTS Traffic Count data 2012 by TrafficMetrix. All rights reserved. Two-way, average daily traffic volumes. * Traffic Count Estimate 22

27 1946 Reed Avenue - Pacific Beach OFFERING MEMORANDUM Cody Cannon Broker Marcus & Millichap Ontario Office Tel: (909) Fax: (909) Cody.Cannon@marcusmillichap.com Offices Throughout the U.S. and Canada