5236-42 Naranja St San Diego, CA 92114 PROPERTY HIGHLIGHTS Full Interior & Exterior Rehab Strong Unit Mix Garages & Off Street Parking Prepared By Central & Convenient Location High Demand Rental Market 2207 Garnet Ave, Suite J San Diego, California 92109 www.thebrowargroup.com
PROPERTY DESCRIPTION The are a 15 unit apartment community located in the Valencia Park / Encanto neighborhood of San Diego, California. Its central location offers tenants easy access to all areas of the County and not only is the property walking distance to all public modes of transportation but less than half a mile to one of the city's major freeway (I-94). The property is also walking distance to shopping centers, schools, eateries, pharmacies, convenient stores, etc. The property was built in 1986 and is situated on a 13,394 square foot lot. consists of ten 2br/1ba apartments and five 1br/1ba apartments. There are 15 off street parking spaces, 7 single car garages, 3 oversized garages and laundry facilities on site. Seven units also offer spacious private patios. Over the past year, went through an amazing transformation in which many interior and exterior renovations were made. All 15 apartments were renovated which include, but are not limited to, upgraded kitchens & bathrooms, flooring, heating, paint, doors, new fixtures, etc. On the exterior, upgrades include, roofs/gutters, windows throughout, asphalt, paint, fencing, decks/balconies, lighting, etc. Ownership has been able to increase rents to conservative market levels (with even some additional upside) for a new owner to continue to operate with low expenses (due to all of the improvements made) hence generating good returns. Page 2
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PRO FORMA SUMMARY TENANT ANNUAL SCHEDULED INCOME Tenant Actual Market TOTALS $251,820 $261,360 INVESTMENT SUMMARY Price: $3,400,000 Year Built: 1986 Tenants: 15 RSF: 8,770 Price/RSF: $387.69 Lot Size: 13,934 sf Floors: 3 Parking Spaces: 1:1 APN: 548-051-09 Cap Rate: 5.28% Market Cap Rate: 5.66% FINANCING SUMMARY Loan Amount: $2,375,000 Down Payment: $1,025,000 Loan Type: Fixed Interest Rate: 4.3% Term: 30 years Monthly Payment: $11,753 DCR: 1.27 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $251,820 $261,360 Less: Vacancy ($7,610) ($7,841) Misc. Income $20,400 $24,000 Effective Gross Income $264,610 $277,519 Less: Expenses ($85,018) ($85,018) Net Operating Income $179,592 $192,501 Debt Service ($141,038) ($141,038) Net Cash Flow after Debt Service $38,553 $51,463 Principal Reduction $39,690 $39,690 Total Return $78,243 $91,152 ANNUALIZED EXPENSES Description Actual Market Building Insurance $2,200 $2,200 Legal $100 $100 Maintenance $10,000 $10,000 Management Fees $13,698 $13,698 Misc $8,000 $8,000 Taxes - Real Estate $38,420 $38,420 Utilities $12,600 $12,600 Total Expenses $85,018 $85,018 Expenses Per RSF $9.69 $9.69 Page 4
# Units Address City Zip Map Code 15 5236-42 Naranja Street San Diego 92114 Price GRM CAP Rate $ / Unit Current Market Current Market $3,400,000 12.6 12.4 5.2% 5.3% $226,667 $ / Square Foot Gross Sq. Ft. Parcel Size Yr. Built (Approx.) (Approx.) (Approx.) Parking (+/-) $387.69 8,770 13,934 Off Street 1986 Income Detail Annual Operating Expenses # of Units Type Rent Total (Estimated) Current Income Advertising Management (off $13,698 5 1Br/1Ba $1150-$1250 $6,050 Gas & Electric $3,000 Management (on site) 10 2Br/1Ba $1450-$1595 $14,935 Water & Sewer $9,600 Insurance $2,200 3 Lg Gar $175 $525 Landscaping $0 License & Fees $100 7 Sm Gar $125 $750 Trash Removal $0 Pool Pest Control $500 Miscellaneous $7,500 Maintenance $10,000 Taxes* $38,420 Laun/Garage $300 $300 Total Monthly Income $22,560 Market Income 5 1Br/1Ba $1195-$1250 $6,195 * Reflects adjusted tax rate 10 2Br/1Ba $1495-$1595 $14,935 3 Lg Gar $175 $525 Total Annual Expenses $85,018 7 Sm Gar $125 $875 Expenses per: Est. Sq. Ft. $9.69 Laun/Garage $300 $300 Unit $5,668 Total Monthly Income $22,830 % of GSI 31.0% market Annual Operating Proforma Financing Summary Current Market Gross Scheduled Income $270,720 $273,960 Down Payment $1,000,000 Less: Vacancy Factor 3.0% $8,122 $8,219 29% Gross Operating Income $262,598 $265,741 Less: Expenses 31.0% $85,018 $85,018 Net Operating Income $177,580 $180,723 Proposed Financing: $2,400,000 Interest Rate: 4.30% Less: 1st TD Payments ($142,523) ($142,523) Amortized over: 30 Pre-Tax Cash Flow $35,057 $38,200 Debt Coverage Ratio: Current: 1.25 Cash On Cash Return 3.5% 3.8% Market: 1.27 CAP Rate 5.2% 5.3% The Browar Group 858.414.4398 or The information contained herein has been obtained from sources believed reliable. While The Browar Group does not doubt its accuracy, we have not verified it, and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates are used for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax, financial, and legal advisors. You and your advisors should conduct a careful, independent, investigation of the property to determine to your satisfaction the suitability of the property to your needs.
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