O F F E R I N G M E M O R A N D U M Golden Hill San Diego, CA 92102 1
RECENT NEARBY DEVELOPMENTS 2
P R E S E N T E D B Y Conor Brennan Senior Associate Associate Director - National Multi Housing Group San Diego Office Tel: (858) 373-3213 Fax: (858) 373-3110 conor.brennan@marcusmillichap.com License: CA 01918598 Carson Trujillo Associate Member - National Multi Housing Group San Diego Office Tel: (858) 373-3285 Fax: (858) 373-3110 carson.trujillo@marcusmillichap.com License: CA 01974818 3
TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Property Overview Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement Notes Pricing Detail Proposal Price MARKET COMPARABLES 03 Sales Comparables 4
INVESTMENT OVERVIEW 5
PROPERTY OVERVIEW PROPERTY OVERVIEW Marcus and Millichap is pleased to present 3042 Broadway, a rare 4-unit multifamily investment located in Golden Hill, San Diego. This property consists of a 3,320 square foot, 2-story apartment building resting on a 7,359 square foot lot. This complex is comprised of two 2-bedroom / 1-bath units that average 825 square feet and two 3-bedroom / 1-bath units that average 907 square feet. These units have been well maintained and have living and bedroom areas with hardwood floors and period tile in the kitchens and bathrooms. The building features a large, fenced in front yard area that is elevated off the street allowing for tenant privacy and enjoyment. The front yard area is landscaped with gravel and grass and features a gazebo lounging section with community building potential. In the rear of the property there are five off-street parking spaces that face out into the alleyway and the building also has coin-op laundry with room and hookups for expansion to double stacked laundry. Golden Hill is one of San Diego's most architecturally diverse historic neighborhoods that sits just outside of Balboa Park and Downtown San Diego. Golden Hill's rapid redevelopment and easy access to the 15, 94 and 805 freeways make it a tremendously desirable location for both investors and tenants. This multifamily complex is an ideal turn key investment opportunity for a new owner looking for a property with rental upside in the up-and-coming neighborhood of Golden Hill. PROPERTY OVERVIEW Prime location in a Recently Redeveloped Golden Hill Residential Community Well Maintained Units with Hardwood and Tile Floors Five Off- Parking Spaces Large Front Yard and Gazebo Area Easy Downtown and Freeway Access Desirable Mix of Two and Three Bedroom Units 6
REGIONAL MAP 7
LOCAL MAP 8
AERIAL PHOTO 9
PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. 12 10
PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. 12 11
AERIAL PHOTOS PROPERTY PHOTO 12
FINANCIAL ANALYSIS 13
RENT ROLL SUMMARY FINANCIAL ANALYSIS 14
RENT ROLL DETAIL FINANCIAL ANALYSIS 15
OPERATING STATEMENT FINANCIAL ANALYSIS 16
PRICING DETAIL FINANCIAL ANALYSIS 17
MARKET COMPARABLES 18
SALES COMPARABLES MAP Y 1 2 3 4 5 3358 Dale 2712 Treat 2984 E 1103 33rd 4193 Illinois St SALES COMPARABLES 19
PROPERTY NAME SALES COMPARABLES SALES COMPS AVG SALES COMPARABLES Average Cap Rate Average GRM 5.0 20.00 4.5 Avg. 4.11% 18.00 Avg. 16.11 4.0 16.00 3.5 14.00 3.0 12.00 2.5 10.00 2.0 8.00 1.5 6.00 1.0 4.00 0.5 2.00 0.0 3042 Broadway 3358 Dale Average Price Per Square Foot 2712 Treat 2984 E 1103 33rd 4193 Illinois St 0.00 3042 Broadway Average Price Per Unit 3358 Dale 2712 Treat 2984 E 1103 33rd 4193 Illinois St $600.00 $500,000 $540.00 $480.00 Avg. $502.74 $450,000 $400,000 Avg. $401,550 $420.00 $350,000 $360.00 $300,000 $300.00 $250,000 $240.00 $200,000 $180.00 $150,000 $120.00 $100,000 $60.00 $50,000 $0.00 3042 Broadway 3358 Dale 2712 Treat 2984 E 1103 33rd 4193 Illinois St $0 3042 Broadway 3358 Dale 2712 Treat 2984 E 1103 33rd 4193 Illinois St 20
PROPERTY NAME SALES MARKETING COMPARABLES TEAM SALES COMPARABLES 3042 Broadway, San Diego, CA, 92102 3358 DALE STREET 3358 Dale St, San Diego, CA, 92104 1 2712 TREAT STREET 2712 Treat St, San Diego, CA, 92102 2 Units Unit Type Offering Price: $1,550,000 2 2-Bdr 1-Bath Price/Unit: $387,500 2 3-Bdr 1-Bath Price/SF: $447.33 CAP Rate: 3.87% GRM: 16.26 Total No. of Units: 4 Year Built: 1927 Underwriting Criteria Income $92,515 Expenses $32,695 NOI $59,820 Vacancy ($2,860) Units Unit Type Close Of Escrow: 5/18/2018 1 3 Bdr 2 Bath Days On Market: 35 1 2 Bdr 1 Bath Sales Price: $1,670,000 2 1 Bdr 1 Bath Price/Unit: $417,500 Price/SF: $525.82 CAP Rate: 4.50% GRM: 13.70 Total No. of Units: 4 Year Built: 1928 Underwriting Criteria Income $119,670 Expenses $40,687 NOI $75,392 Vacancy $3,590 Units Unit Type Close Of Escrow: 7/26/2108 3 2 Bdr 2 Bath Days On Market: 20 Sales Price: $1,267,000 Price/Unit: $422,333 Price/SF: $478.84 CAP Rate: 4.35% GRM: 18.11 Total No. of Units: 3 Year Built: 2014 Underwriting Criteria Income $71,700 Expenses $14,353 NOI $55,196 Vacancy $2,151 21
PROPERTY NAME SALES MARKETING COMPARABLES TEAM SALES COMPARABLES 2984 E STREET 2984 E St, San Diego, CA, 92102 3 1103 33RD STREET 1103 33rd St, San Diego, CA, 92102 4 4193 ILLINOIS ST 4193 Illinois St, San Diego, CA, 92104 5 Units Unit Type Close Of Escrow: 9/25/2017 1 2 Bdr 1 Bath Days On Market: 113 1 2 Bdr 2 Bath Sales Price: $1,265,000 1 1 Bdr 1 Bath Price/Unit: $421,667 Price/SF: $596.14 CAP Rate: 3.43% GRM: 18.33 Total No. of Units: 3 Year Built: 1920 Underwriting Criteria Income $69,000 Expenses $23,460 NOI $43,470 Vacancy $2,070 Units Unit Type Close Of Escrow: 8/23/2017 4 2 Bdr 1 Bath Days On Market: 98 Sales Price: $1,310,000 Price/Unit: $327,500 Price/SF: $513.73 CAP Rate: 4.30% GRM: 14.57 Total No. of Units: 4 Year Built: 1958 Underwriting Criteria Income $89,910 Expenses $30,569 NOI $56,643 Vacancy $2,697 Units Unit Type Close Of Escrow: 5/7/2018 1 1 Bdr 1 Bath Days On Market: 54 2 2 Bdr 1 Bath Sales Price: $1,675,000 1 3 Bdr 2 Bath Price/Unit: $418,750 Price/SF: $399.19 CAP Rate: 3.98% GRM: 15.82 Total No. of Units: 4 Year Built: 1964 Underwriting Criteria Income $105,878 Expenses $35,998 NOI $66,703 Vacancy $3,176 22
8 RENT COMPARABLES MAP 1 2 3 4 5 6 7 8 3038 Broadway 2320 Broadway 3045 Broadway 2542 A 2950 B 1150 21st 2715 Broadway 2852 C 9 10 11 12 13 14 15 16 17 18 20 23
PROPERTY NAME AVERAGE RENT - MULTIFAMILY RENT COMPARABLES 3 Bedroom 2 Bedroom $3,000 $2,700 $2,400 $2,100 $1,800 $1,500 $1,200 $900 $600 $300 $3,000 $2,700 $2,400 $2,100 $1,800 $1,500 $1,200 $900 $600 $300 $0 3042 Broadway 2320 Broadway 3045 Broadway 2542 A $0 3042 Broadway 3038 Broadway 3045 Broadway 2950 B 1150 21st 2715 Broadway 2852 C 24
PROPERTY NAME RENT MARKETING COMPARABLES TEAM 3042 Broadway, San Diego, CA, 92102 3038 BROADWAY 3038 Broadway, San Diego, CA, 92102 1 2320 BROADWAY 2320 Broadway, San Diego, CA, 92102 2 Unit Type Units SF Rent Rent/SF 2-Bdr 1-Bath 2 825 $1,813 $2.20 3-Bdr 1-Bath 2 908 $2,160 $2.38 Total/Avg. 4 867 $1,987 $2.29 Unit Type Units SF Rent Rent/SF 2 Bdr 1 Bath 1 905 $1,975 $2.18 Total/Avg. 1 905 $1,975 $2.18 Unit Type Units SF Rent Rent/SF 3 Bdr 1 Bath 1 1,248 $2,800 $2.24 Total/Avg. 1 1,248 $2,800 $2.24 YEAR BUILT: 1927 YEAR BUILT: 1971 YEAR BUILT: 1908 25
PROPERTY NAME RENT MARKETING COMPARABLES TEAM 3045 BROADWAY 1194 20th St, San Diego, CA, 92102 3 2542 A STREET 2542 A St, San Diego, CA, 92102 4 2950 B STREET 2950 B St, San Diego, CA, 92102 5 Unit Type Units SF Rent Rent/SF 2 Bdr 1 Bath 1 905 $2,159 $2.39 3 Bdr 2 Bath 1 1,100 $2,879 $2.62 Total/Avg. 2 1,003 $2,519 $2.51 Unit Type Units SF Rent Rent/SF 3 Bdr 1 Bath 1 1,000 $2,695 $2.70 Total/Avg. 1 1,000 $2,695 $2.70 Unit Type Units SF Rent Rent/SF 2 Bdr 2 Bath 1 1,043 $2,450 $2.35 Total/Avg. 1 1,043 $2,450 $2.35 YEAR BUILT: 2014 YEAR BUILT: 1980 YEAR BUILT: 1921 26
PROPERTY NAME RENT MARKETING COMPARABLES TEAM 1150 21ST STREET 1150 21st St, San Diego, CA, 92102 6 2715 BROADWAY 2715 Broadway, San Diego, CA, 92102 7 2852 C STREET 2852 C St, San Diego, CA, 92102 8 Unit Type Units SF Rent Rent/SF 2 Bdr 2 Bath 1 987 $2,425 $2.46 Total/Avg. 1 987 $2,425 $2.46 Unit Type Units SF Rent Rent/SF 2 Bdr 1 Bath 1 1,000 $2,350 $2.35 Total/Avg. 1 1,000 $2,350 $2.35 Unit Type Units SF Rent Rent/SF 2 Bdr 2 Bath 1 858 $2,245 $2.62 Total/Avg. 1 858 $2,245 $2.62 YEAR BUILT: 1991 YEAR BUILT: 1980 YEAR BUILT: 1981 27
P R E S E N T E D B Y Conor Brennan Senior Associate Associate Director - National Multi Housing Group San Diego Office Tel: (858) 373-3213 Fax: (858) 373-3110 conor.brennan@marcusmillichap.com License: CA 01918598 Carson Trujillo Associate Member - National Multi Housing Group San Diego Office Tel: (858) 373-3285 Fax: (858) 373-3110 carson.trujillo@marcusmillichap.com License: CA 01974818 www.marcusmillichap.com 28