Offering Memorandum HOWARD AVENUE University Heights San Diego, CA PDF Free Download

Offering Memorandum 1918 HOWARD AVENUE University Heights San Diego, CA 92104 1

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E Non-Endorsements 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. Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2018 Marcus & Millichap. All rights reserved. 1918 HOWARD AVENUE San Diego, CA ACT ID X0090973 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 Raymond S. Choi First Vice President Investments Director - National Multi Housing Group San Diego Office Tel: (858) 373-3136 Fax: (858) 373-3110 raymond.choi@marcusmillichap.com License: CA 01297138 3

TABLE OF CONTENTS SECTION FINANCIAL ANALYSIS 01 Rent Roll Summary Rent Roll Detail Operating Statement Notes Pricing Detail Proposal Price INVESTMENT OVERVIEW 02 Property Overview Regional Map Local Map Aerial Photo MARKET COMPARABLES 03 Sales Comparables 4

FINANCIAL ANALYSIS 5

RENT ROLL SUMMARY FINANCIAL ANALYSIS 6

RENT ROLL DETAIL FINANCIAL ANALYSIS 7

OPERATING STATEMENT FINANCIAL ANALYSIS 8

PRICING DETAIL FINANCIAL ANALYSIS 9

INVESTMENT OVERVIEW 10

PROPERTY OVERVIEW PROPERTY OVERVIEW Marcus & Millichap is pleased to present 1918-22 Howard Avenue, a 3-unit multi-family complex located in the highly desirable University Heights neighborhood of San Diego, California. This is a highly appealing opportunity as the owner is willing to entertain very flexible seller financing options. University Heights is a known as a very walkable neighborhood that attracts both young professionals and families as tenants, with the abundance of schools and job opportunities in the area. This property comprises two detached bungalow style buildings on a 3,941 square foot lot. Both buildings are on a raised foundation and feature original hardwood floors that have been refurbished, separate water heaters and new breakers. The three units are divided between a 1 bedroom/ 1 bathroom cottage and a duplex that consists two 1 bedroom/ 1 bathroom units. Each unit is individually metered for gas and electric and feature separate private backyards. This rare 3-unit complex allows a buyer the opportunity to purchase the property with a very small down payment outside of a standard credit union/bank and would be ideal for the value-add investor looking to buy an investment grade or owner-occupied property. PROPERTY OVERVIEW Seller Financing Available; Extremely Flexible On Terms Desirable University Heights Location Significant Upside in Rents - Residential Financing Available Each Unit Has Its Own Private Backyard Ability To Run As An Owner-Occupied Property Easy Access to the 805 Commuter Freeway 11

REGIONAL MAP 12

LOCAL MAP 13

AERIAL PHOTO 14

MARKET COMPARABLES 15

SALES COMPARABLES MAP 1918 HOWARD AVENUE (SUBJECT) 1 2 3 4 5 6 4138-42 3rd Ave 3933 Georgia St 4139-43 Louisiana St 4410-12 Maryland St 2505 Lincoln Ave 4095 Front St SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES 16

PROPERTY 1918 HOWARD NAME AVENUE SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES SALES COMPS AVG IN ESCROW COMPS AVG ON MARKET COMPS AVG SALES COMPARABLES Average Price Per Unit Average Price Per Square Foot $600,000 $540,000 Avg. $526,333 $800.00 $720.00 $480,000 $420,000 Avg. $381,750 $383,333 $640.00 $560.00 Avg. $573.28 Avg. $536.80 $360,000 $480.00 Avg. $446.80 $300,000 $400.00 $240,000 $320.00 $180,000 $240.00 $120,000 $160.00 $60,000 $80.00 $0 1918 Howard Avenue 4138-42 3rd Ave 3933 Georgia St 4139-43 Louisiana St 4410-12 Maryland St 2505 Lincoln Ave 4095 Front St $0.00 1918 Howard Avenue 4138-42 3rd Ave 3933 Georgia St 4139-43 Louisiana St 4410-12 Maryland St 2505 Lincoln Ave 4095 Front St 17

PROPERTY 1918 HOWARD NAME AVENUE SALES MARKETING COMPARABLES TEAM SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES 1918 HOWARD AVENUE 1918 Howard Avenue, San Diego, CA, 92104 4138-42 3RD AVE 4138 3rd Ave, San Diego, CA, 92103 1 3933 GEORGIA ST 3933 Georgia St, San Diego, CA, 92103 2 rentpropertyname1 rentpropertyname1 rentpropertyname1 Units Unit Type Offering Price: $1,250,000 3 1 bedroom 1 bathroom Price/Unit: $416,667 Price/SF: $789.14 CAP Rate: 1.44% GRM: 33.07 Total No. of Units: 3 Year Built: 1924 rentpropertyaddress1 Underwriting Criteria Income $36,666 Expenses $18,707 NOI $17,959 Vacancy ($1,134) Units Unit Type Close Of Escrow: 8/24/2017 3 2 Bdr 1 Bath Days On Market: 67 Sales Price: $1,110,000 Price/Unit: $370,000 Price/SF: $457.54 CAP Rate: 4.63% GRM: 16.24 Total No. of Units: 3 Year Built: 1952 rentpropertyaddress1 Underwriting Criteria Income $68,340 Expenses $17,567 NOI $51,407 Units Unit Type Close Of Escrow: 9/1/2017 1 3 Bdr 1 Bath Days On Market: 14 2 1 Bdr 1 Bath Sales Price: $1,150,000 Price/Unit: $383,333 Price/SF: $519.19 CAP Rate: 2.53% GRM: 23.09 Total No. of Units: 3 Year Built: 1925 rentpropertyaddress1 Underwriting Criteria Income $49,800 Expenses $12,450 NOI $29,050 18

PROPERTY 1918 HOWARD NAME AVENUE SALES MARKETING COMPARABLES TEAM SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES 4139-43 LOUISIANA ST 4139 Louisiana St, San Diego, CA, 92104 3 4410-12 MARYLAND ST 4410 Maryland St, San Diego, CA, 92116 4 2505 LINCOLN AVE 2505 Lincoln Ave, San Diego, CA, 92104 5 rentpropertyname1 rentpropertyname1 rentpropertyname1 Units Unit Type Close Of Escrow: 1/4/2018 1 3 Bdr 1 Bath Days On Market: 3 2 1 Bdr 1 Bath Sales Price: $1,034,500 Price/Unit: $344,833 Price/SF: $640.16 CAP Rate: 4.66% GRM: 15.02 Total No. of Units: 3 Year Built: 1955 rentpropertyaddress1 Underwriting Criteria Income $68,880 Expenses $20,664 NOI $48,216 Units Unit Type Close Of Escrow: 10/17/2018 1 3 Bdr 2 Bath Sales Price: $1,286,500 1 2 Bdr 1 Bath Price/Unit: $428,833 1 1 Bdr 1 Bath Price/SF: $530.30 CAP Rate: 3.07% GRM: 22.81 Total No. of Units: 3 Year Built: 1943 rentpropertyaddress1 Underwriting Criteria Income $56,400 Expenses $16,920 NOI $39,480 Units Unit Type In Escrow 1 1 Bdr 1 Bath List Price: $1,150,000 2 2 Bdr 1 Bath Price/Unit: $383,333 Price/SF: $573.28 CAP Rate: 2.63% GRM: 26.62 Total No. of Units: 3 Year Built: 1933 rentpropertyaddress1 Underwriting Criteria Income $43,200 Expenses $12,960 NOI $30,240 19

PROPERTY 1918 HOWARD NAME AVENUE SALES MARKETING COMPARABLES TEAM SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES 4095 FRONT ST 4095 Front St, San Diego, CA, 92103 6 rentpropertyname1 rentpropertyname1 rentpropertyname1 Units Unit Type On Market 1 3 Bdr 1 Bath List Price: $1,579,000 2 2 Bdr 1 Bath Price/Unit: $526,333 Price/SF: $446.80 CAP Rate: 3.17% GRM: 19.85 Total No. of Units: 3 Year Built: 1920 rentpropertyaddress1 Underwriting Criteria Income $79,560 Expenses $27,053 NOI $50,121 rentpropertyaddress1 rentpropertyaddress1 20

Offering Memorandum HOWARD AVENUE University Heights San Diego, CA 92104