1466-74 PESCADERO DRIVE / SAN DIEGO, CA 92107
TABLE OF CONTENTS Confidentiality & Disclaimer All materials and information received or derived from ACRE Investment Real Estate Services, LLC its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither ACRE Investment Real Estate Services, LLC its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. ACRE Investment Real Estate Services, LLC will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. ACRE Investment Real Estate Services, LLC makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. ACRE Investment Real Estate Services, LLC does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Contents I. PROPERTY INFORMATION 3 II. PROPERTY DESCRIPTION 8 III. LOCATION INFORMATION 16 IV. FINANCIAL ANALYSIS 21 V. DEMOGRAPHICS 25 Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by ACRE Investment Real Estate Services, LLC in compliance with all applicable fair housing and equal opportunity laws. MAY 08, 2018
I PROPERTY INFORMATION ACRE INVESTMENT REAL ESTATE SERVICES 2365 NORTHSIDE DRIVE STE 120 SAN DIEGO, CA 92108 WWW.ACRECOMMERCIAL.COM DYLAN WRIGHT CHRIS ROBINSON 619.255.3233 619.255.3222 DWRIGHT@ACRECOMMERCIAL.COM CROBINSON@ACRECOMMERCIAL.COM
EXECUTIVE SUMMARY OFFERING SUMMARY Sale Price: $2,990,000 Number Of Units: 4 Price / Unit: $747,500 Price / SF: $1415.72 Cap Rate: 4.13% Building Size: 2,112 Lot Size: 0.19 Acres Year Built: 1955 Market: San Diego 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY INFORMATION 4
INVESTMENT OVERVIEW PROPERTY OVERVIEW ACRE is proud to present a rare oceanfront 4-plex offering a turnkey cap rate greater than 4%. This is achieved through existing in place vacation rental income and after a 42% operating expense load which includes higher short Term MGMT cost, repairs, maintenance, recurring operating expenses and projected property taxes. The Seller recently invested $600,000 into a double seawall to ensure an investment that performs without element interference. Each of the 1Bed/1Bath unit interiors boast high end flooring, cabinets, kitchen appliances and finishes. The interior appeal coupled with ocean frontage creates a demand for short term visitors to stay at the subject property. The offering is available with debt in the high 4% range from a lender who has looked at the property and expressed interest with a qualified Buyer. This is an opportunity for the investor who wants a higher than normal yield for low risk / high demand oceanfront property while simultaneously being awarded for long-term appreciation as ocean front real estate outperforms most other locations for wealth preservation and land value appreciation. 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY INFORMATION 5
INVESTMENT HIGHLIGHTS PROPERTY HIGHLIGHTS Ocean Front >4% Cap Rate with Place Operations & a 42% Expense Load Recent $600,000 Double Sea Wall Investment Made to Property Attractive Remodeled Interiors Large Rear Patio with Jacuzzi Pitched Roofs INVESTMENT HIGHLIGHTS High than normal Yield for Oceanfront Property with Appreciation Reward Available Mid Leverage (60%) Debt in High 4% Range for the Qualified Investor ECONOMIC HIGHLIGHTS Oceanfront Real Estate historically appreciates better than other Property Great Wealth Preservation Investment while Achieving 4% Cap Rate 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY INFORMATION 6
AMENITIES PROPERTY AMENITIES New $600,000 Double Sea-Wall Attractive remodeled Interiors Oceanfront Patio w/ Jacuzzi Views from Several Angles UNIT AMENITIES High End Finishes Private Rear Patios Stainless Steal Appliances Cabana Area on Patio w/ Seating Modern Fencing 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY INFORMATION 7
II PROPERTY DESCRIPTION ACRE INVESTMENT REAL ESTATE SERVICES 2365 NORTHSIDE DRIVE STE 120 SAN DIEGO, CA 92108 WWW.ACRECOMMERCIAL.COM DYLAN WRIGHT CHRIS ROBINSON 619.255.3233 619.255.3222 DWRIGHT@ACRECOMMERCIAL.COM CROBINSON@ACRECOMMERCIAL.COM
PROPERTY DETAILS SALE PRICE $2,990,000 LOCATION INFORMATION Building Name The Pescadero Vacation Homes Street Address 1466-74 Pescadero Drive City, State, Zip San Diego, CA 92107 County/Township San Diego Market San Diego Submarket Ocean Beach PROPERTY DETAILS Property Type Multifamily Property Subtype Low-Rise/Garden Zoning R-4 Lot Size 8,389 SF APN# 4482420200 Submarket Ocean Beach Waterfront Yes BUILDING INFORMATION Building Size 2,112 SF Occupancy % 100.0 Number Of Floors 1 Year Built 1955 Load Factor Yes 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY DESCRIPTION 9
PROPERTY PHOTOS 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY DESCRIPTION 10
PROPERTY PHOTOS 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY DESCRIPTION 11
PROPERTY PHOTOS 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY DESCRIPTION 12
PROPERTY PHOTOS 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY DESCRIPTION 13
PROPERTY PHOTOS 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY DESCRIPTION 14
PROPERTY PHOTOS 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 PROPERTY DESCRIPTION 15
III LOCATION INFORMATION ACRE INVESTMENT REAL ESTATE SERVICES 2365 NORTHSIDE DRIVE STE 120 SAN DIEGO, CA 92108 WWW.ACRECOMMERCIAL.COM DYLAN WRIGHT CHRIS ROBINSON 619.255.3233 619.255.3222 DWRIGHT@ACRECOMMERCIAL.COM CROBINSON@ACRECOMMERCIAL.COM
LOCATION OVERVIEW LOCATION OVERVIEW Ocean Beach is a quaint beach community located in Central San Diego with up and coming restaurants and beautiful beaches. Ocean Beach lies on the Pacific Ocean at the estuary of the San Diego River, at the western terminus of Interstate 8. Located about 7 miles (11 km) northwest of Downtown San Diego, it sits south of Mission Bay and Mission Beach and directly north of Point Loma. The O.B. community planning area comprises about 1 square mile (742 acres), bounded on the north by the San Diego River, on the west by the Pacific Ocean, on the east by Froude St., Seaside St. and West Point Loma Boulevard, and on the south by Adair Street. DEMOGRAPHICS 1 MILE 2 MILES 3 MILES Total Households 6,151 18,008 27,077 Total Population 13,117 39,715 60,890 Average HH Income $82,773 $88,690 $87,434 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 LOCATION INFORMATION 17
REGIONAL MAP 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 LOCATION INFORMATION 18
LOCATION MAPS 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 LOCATION INFORMATION 19
AERIAL MAP T H E P E S C A D E R O VAC AT I O N H O M E S 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 LOCATION INFORMATION 20
IV FINANCIAL ANALYSIS ACRE INVESTMENT REAL ESTATE SERVICES 2365 NORTHSIDE DRIVE STE 120 SAN DIEGO, CA 92108 WWW.ACRECOMMERCIAL.COM DYLAN WRIGHT CHRIS ROBINSON 619.255.3233 619.255.3222 DWRIGHT@ACRECOMMERCIAL.COM CROBINSON@ACRECOMMERCIAL.COM
RENT ROLL UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) CURRENT RENT MARKET RENT MARKET RENT/SF 1466 Pescadero 1 1 528 $45,683 $47,054 $89.12 1468 Pescadero 1 1 528 $51,151 $52,686 $99.78 1470 Pescadero 1 1 528 $52,783 $54,366 $102.97 1472 Pescadero 1 1 528 $62,239 $64,106 $121.41 Totals/Averages 2,112 $211,856 $218,212 $103.32 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 FINANCIAL ANALYSIS 22
FINANCIAL SUMMARY INVESTMENT OVERVIEW CURRENT MARKET Price $2,990,000 $2,990,000 Price per Unit $747,500 $747,500 GRM 14.1 13.7 CAP Rate 4.1% 4.3% Cash-on-Cash Return (yr 1) 2.97 % 3.49 % Total Return (yr 1) $31,084 $36,484 Debt Coverage Ratio 1.34 1.4 OPERATING DATA CURRENT MARKET Gross Scheduled Income $211,872 $218,228 Operating Expenses $88,472 $89,428 Net Operating Income $123,400 $128,800 Debt Service $92,316 $92,316 Pre-Tax Cash Flow $31,084 $36,484 FINANCING DATA CURRENT MARKET Down Payment $1,046,500 $1,046,500 Loan Amount $1,943,500 $1,943,500 Debt Service $92,316 $92,316 Debt Service Monthly $7,693 $7,693 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 FINANCIAL ANALYSIS 23
INCOME & EXPENSES INCOME SUMMARY CURRENT PER SF MARKET PER SF Gross Income $211,872 $100.32 $218,228 $103.33 EXPENSE SUMMARY CURRENT PER SF MARKET PER SF Property Taxes $33,994 $16.10 $33,994 $16.10 Insurance $1,500 $0.71 $1,500 $0.71 Management $31,778 $15.05 $32,734 $15.50 Utilities $16,400 $7.77 $16,400 $7.77 Repairs & Maintenance $4,800 $2.27 $4,800 $2.27 Gross Expenses $88,472 $41.89 $89,428 $42.34 Net Operating Income $123,400 $58.43 $128,800 $60.98 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 FINANCIAL ANALYSIS 24
V DEMOGRAPHICS ACRE INVESTMENT REAL ESTATE SERVICES 2365 NORTHSIDE DRIVE STE 120 SAN DIEGO, CA 92108 WWW.ACRECOMMERCIAL.COM DYLAN WRIGHT CHRIS ROBINSON 619.255.3233 619.255.3222 DWRIGHT@ACRECOMMERCIAL.COM CROBINSON@ACRECOMMERCIAL.COM
DEMOGRAPHICS REPORT 1 MILE 2 MILES 3 MILES Total population 13,117 39,715 60,890 Median age 32.6 35.1 35.1 Median age (male) 33.3 35.1 34.8 Median age (female) 32.0 35.3 35.6 Total households 6,151 18,008 27,077 Total persons per HH 2.1 2.2 2.2 Average HH income $82,773 $88,690 $87,434 Average house value $778,366 $729,916 $707,472 Total Population - White 12,020 36,101 54,496 % White 91.6% 90.9% 89.5% Total Population - Black 306 745 1,380 % Black 2.3% 1.9% 2.3% Total Population - Asian 395 936 1,680 % Asian 3.0% 2.4% 2.8% Total Population - Hawaiian 15 97 273 % Hawaiian 0.1% 0.2% 0.4% Total Population - American Indian 23 146 319 % American Indian 0.2% 0.4% 0.5% Total Population - Other 94 439 843 % Other 0.7% 1.1% 1.4% Total Population - Hispanic 1,061 3,830 7,318 % Hispanic 8.1% 9.6% 12.0% * Demographic data derived from 2010 US Census 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 DEMOGRAPHICS 26
DEMOGRAPHICS MAP POPULATION 1 MILE 2 MILES 3 MILES Total population 13,117 39,715 60,890 Median age 32.6 35.1 35.1 Median age (male) 33.3 35.1 34.8 Median age (Female) 32.0 35.3 35.6 HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES Total households 6,151 18,008 27,077 # of persons per HH 2.1 2.2 2.2 Average HH income $82,773 $88,690 $87,434 Average house value $778,366 $729,916 $707,472 ETHNICITY (%) 1 MILE 2 MILES 3 MILES Hispanic 8.1% 9.6% 12.0% RACE (%) White 91.6% 90.9% 89.5% Black 2.3% 1.9% 2.3% Asian 3.0% 2.4% 2.8% Hawaiian 0.1% 0.2% 0.4% American Indian 0.2% 0.4% 0.5% Other 0.7% 1.1% 1.4% * Demographic data derived from 2010 US Census 1466-74 PESCADERO DRIVE, SAN DIEGO, CA 92107 DEMOGRAPHICS 27
DYLAN WRIGHT CHRIS ROBINSON 619.255.3233 619.255.3222 DWRIGHT@ACRECOMMERCIAL.COM CROBINSON@ACRECOMMERCIAL.COM