22
EXECUTIVE SUMMARY 92103 | HILLCREST 1210-16 STREET ESSEX OFFERING MEMORANDUM
EXECUTIVE SUMMARY
9 2 1 0 3 | H I L L C R E S T
1210-16
ST
RE
ET
ESSEX
OFFERING MEMORANDUM
EXECUTIVE SUMMARY
Marcus and Millichap is pleased to present for sale a 4 unit, pride ofownership property located in the highly desirable neighborhood of
Hillcrest. Lauded for its eclectic vibe and pedestrian-friendly streets and sidewalk patios, Hillcrest stretches almost a dozen blocks west from
Normal Street along University Avenue with a colorful mix and array of coffee houses, restaurants, and bars.
Constructed in 1920, this recently renovated property rests on an
approximate 5,200 SF lot with 1,730 of rentable SF. This property is complete with a 1 one-bedroom / one-bathroom house, 2 one-bedroom / one-bathroom cottages, and 1 studio cottage. All units have recently been renovated, including the addition of a new on-site laundry facility. These
units also feature one large single car garage with alley access, the house with a large front yard, and a shared private courtyard for the tenants to
enjoy.
This unique property lends investors the opportunity to acquire a renovated, pride of ownership property in one of San Diego's most
lucrative rental markets. Located in the heart of Hillcrest, this complex is within walking distance of many attractions in one of San Diego's hippest and most trendy neighborhoods. Being only a block away from eclectic bars, cafes, restaurants, and entertainment on University Avenue, this
property is centrally located with the investor's longevity in mind.
INVESTMENT HIGHLIGHTS
Pride of Ownership in the Heart of Hillcrest
Recently Renovated - Completed in 2017
No Shared Walls - House & 3 Cottages
Large Fenced In Yard & Common Courtyard Space
One Large Single Car Garage With Alley Access
Eligible for Attractive 30 Year Residential Financing
WA L K S C O R EO F 9 1 :
WA L K E R ' SPA R A D I S E
3 M I L E S F R O M D O W N TO W N
H I L L C R E S T : V OT E D I N T H E TO P 1 0 G R E AT N E I B O R H O O D S
O F A M E R I C A B Y A PA
B L O C K S F R O MR O U T E 1 6 3
EXECUTIVE SUMMARYN e w D o u b l e P a n e V i n y l W i n d o w sQ u a r t z C o u n t e r o p sS t a i n l e s s S t e e l A p p l i a n c e sT i l e , V i n y l , P l a n k & H a r d w o o d F l o o r i n gN e w l y B u i l t L a u n d r y F a c i l i t yN e w/ R e d o n e K i t c h e n C a b i n e t sW i n d o w A / C U n i t s
RECENT RENOVATIONS
PROPERTY DESCRIPTION
PROPERTY INFO.
FINANCIAL INFO.
SITE DESCRIPTION.
LIST PRICE: $1,410,000
PRICE PER UNIT: $352,500
PRICE PER SF: $732.47
CAP RATE: 3.68%
PRO FORMA CAP RATE: 4.10%
GRM: 18.51
PRO FORMA GRM: 17.15
ADDRESS: 1210-16 Essex St
# OF UNITS 4
BUILDING SIZE: 1,925 sq ft
LOT SIZE: 0.12 acres
YEAR BUILT: 1920
APN: 452-151-27-00
ZONING: RM-3-7
# OF BUILDINGS: 5
# OF STORIES: 1
PARKING: Street Parking &(1) Single Car Garage
LANDSCAPING: Minimal
WATER: Owner Pays
ELECTRIC/GAS: Tenant Pays
FOUNDATION: Raised / Slab
ROOF: Pitched / Flat
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
DISCOVER
Sitting at the crossroads of San Diego is the highly coveted neighborhood of Hillcrest. Hillcrest was founded in the early 1900s and is a neighborhood in San Diego located northwest of Balboa Park and south of Mission Valley. The area’s east end is marked by a towering rainbow Pride flag just off Hillcrest’s main thoroughfare of University Avenue. This landmark serves as the starting line for the mile-long annual LGBT parade held every July.
Hillcrest’s downtown area runs along University Avenue and down through Fifth Avenue. Due to the bustle of this eclectic neighborhood, Hillcrest has a high rate of pedestrian activity, hosting a mix of ethnically diverse restaurants, nightclubs, breweries, and acclaimed wine bars. The historic “Hillcrest” sign marks the neighborhoods “village” area, presenting vintage clothing shops, trendy thrift-stores, book outlets, and the multiplex Landmark Cinemas.
Hillcrest has been widely recognized for one of the largest farmers markets in San Diego. This lively stretch runs from 9am – 2pm every Sunday, boasting local produce, crafts, and a wide range of hot and cold gourmet cuisine. This gentrified neighborhood has a high population density and is known for the “tolerance and acceptance” of diversity.
HILLCREST
FINANCIAL ANALYSIS : PRICING DETAIL
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of 2017 Marcus & Millichap. All rights reserved.
Price $1,410,000
Down Payment $705,000 / 50%
Number of Units 4
Price Per Unit $352,500
Price Per SqFt $732.47
Gross SqFt 1,925
Lot Size 0.12 Acres
Approx. Year Built 1920
#of Units
Unit Type Sq Ft Current Rents
Market Rents
1 1 Br / 1 Ba H 750 $2,050 $2,100
2 1 Br / 1 Ba C 425 $1,600 $1,700
1 Studio 325 $1,100 $1,350
Cap Rate 3.68% 4.10%
GRM 18.51 17.15
Cash-on-Cash 1.11% 1.93%
Debt Coverage Ratio 1.18 1.31
Income Current Year 1
Gross Scheduled Rent $76,188 $82,200
Less: Vacancy/Deductions 3.0% $2,286 3.0% $2,466
Total Effective Rental Income $73,902 $79,734
Other Income $1,000 $1,000
Effective Gross Income $74,902 $80,734
Less: Expenses 30.7% $22,974 28.5% $22,974
Net Operating Income $51,928 $57,760
Cash Flow $51,928 $57,760
Debt Service $44,131 $44,131
Net Cash Flow After Debt Service 1.11% $7,797 1.93% $13,629
Principal Reduction $10,879 $11,407
Total Return 2.65% $18,676 3.55% $25,035
Expenses Current Year 1
Real Estate Taxes $16,624 $16,624
Insurance $1,100 $1,100
Utilities $2,000 $2,000
Repairs & Maintenance $1,200 $1,200
Landscaping $2,050 $2,050
Total Expenses $22,974 $22,974
Expenses/Unit $5,744 $5,744
Expenses/SF $11.93 $11.93
Loan Amount $705,000
Loan Type New
Interest Rate 4.75%
Amortization Period 30 Years
Year Due 2023
Summary
Current Year 1Returns
Financing 1st Loan
Unit Mix
Operating Data
FINANCIAL ANALYSIS : RENT ROLL
UNIT UNIT TYPE APPROX SQ. FT. CURRENT RENT /MONTH
CURRENT RENT /SF / MONTH
POTENTIAL RENT /MONTH
POTENTIAL RENT / SF / MONTH
1 1Br / 1Ba Cottage 425 $1,700 $4.00 $1,700 $4.00
2 1Br / 1Ba Cottage 425 $1,499 $3.53 $1,700 $4.00
3 1Br / 1Ba House 750 $2,050 $2.73 $2,100 $2.80
4 Studio 325 $1,100 $3.38 $1,350 $4.15
Total 1,925 $6,349 $3.30 $6,850 $3.56
SALES COMPS
SUBJECT PROPERTY
1210-16 Essex St, San Diego, CA 92103
Sale Price $1,410,000
Close of Escrow 0n Market
Number of Units 4
Year Built 1920
Price/Unit $352,500
Price/SF $732.47
Cap Rate 3.68%
UNITS UNIT TYPE
1 1 Bdrm / 1 Bath House
2 1 Bdrm / 1 Bath Cottage
1 Studio
1250-52 Essex St, San Diego, CA 92103
Sale Price $945,000
Close of Escrow ON MARKET
Number of Units 2
Year Built 1934
Price/Unit $472,500
Price/SF $541.55
Cap Rate --
UNITS UNIT TYPE
1 2 Bdrm / 1 Bath
1 1 Bdrm / 1 Bath
11506-12 W Upas St, San Diego, CA 92103
Sale Price $1,575,000
Close of Escrow 3/12/2018
Number of Units 4
Year Built 1935
Price/Unit $393,750
Price/SF $585.07
Cap Rate --
UNITS UNIT TYPE
3 1 Bdrm / 1 Bath
1 2 Bdrm / 2 Bath
2
SALES COMPS
3577 Utah St, San Diego, CA 92104
Sale Price $930,000
Close of Escrow 2/7/2018
Number of Units 2
Year Built 1927
Price/Unit $465,000
Price/SF $524.24
Cap Rate --
UNITS UNIT TYPE
1 3 Bdrm / 1 Bath
1 1 Bdrm / 1 Bath
4135 32nd St, San Diego, CA 92104
Sale Price $895,000
Close of Escrow 1/2/2018
Number of Units 2
Year Built 1926
Price/Unit $447,500
Price/SF $662.96
Cap Rate --
UNITS UNIT TYPE
1 2 Bdrm / 1 Bath
1 3 Bdrm / 2 Bath
43234 Vancouver Ave, San Diego, CA 92104
Sale Price $850,000
Close of Escrow 4/27/2018
Number of Units 2
Year Built 1950
Price/Unit $425,000
Price/SF $435.01
Cap Rate --
UNITS UNIT TYPE
1 2 Bdrm / 1 Bath
1 3 Bdrm / 2 Bath
531506-12 W Upas St, San Diego, CA 92103
SALES COMPS
3335-39 Dale St, San Diego, CA 92104
Sale Price $1,187,500
Close of Escrow 10/19/2018
Number of Units 3
Year Built 1930
Price/Unit $395,833
Price/SF $559.88
Cap Rate --
UNITS UNIT TYPE
2 1 Bdrm / 1 Bath
1 3 Bdrm / 1 Bath
6110 Maple St, San Diego, CA 92103
Sale Price $1,550,000
Close of Escrow 9/17/2018
Number of Units 4
Year Built 1912
Price/Unit $387,500
Price/SF $730.79
Cap Rate --
UNITS UNIT TYPE
1 3 Bdrm / 2 Bath
1 1 Bdrm / 1 Bath
2 Studio / 1 Bath
7
RENT COMPS
SUBJECT PROPERTY
1210-16 Essex St, San Diego, CA 92103
Unit Type(1) 1 Bdrm / 1 Bath House
(2) 1 Bdrm / 1 Bath Cottage(1) Studio / 1 Bath
Year Built 1920
Rent$2,050
$1,500-1,700$1,100
Approx. Sq. Ft.750425325
1254 Robinson Ave, San Diego, CA 92103
Unit Type 1 Bdrm / 1 Bath
Year Built 1975
Rent $1,695
Approx. Sq. Ft. 588
12140 Howard Ave, San Diego, CA 92104
Unit Type Studio / 1 Bath
Year Built 1963
Rent $1,395
Approx. Sq. Ft. 400
2
RENT COMPS
4151 Arizona St, San Diego, CA 92104
Unit Type Studio / 1 Bath
Year Built 1981
Rent $1,495
Approx. Sq. Ft. 500
3602-08 Park Blvd, San Diego, CA 92103
Unit Type Studio / 1 Bath
Year Built 1960
Rent $1,445
Approx. Sq. Ft. 397
43621 Park Blvd, San Diego, CA 92103
Unit Type1 Bdrm / 1 BathStudio / 1 Bath
Year Built 1920
Rent$1,500$1,425
Approx. Sq. Ft.750600
53
RENT COMPS
3953-67 Centre St, San Diego, CA 92103
Unit Type1 Bdrm / 1 BathStudio / 1 Bath
Year Built 1965
Rent$1,515$1,325
Approx. Sq. Ft.550450
3670 Park Blvd, San Diego, CA 92103
Unit Type1 Bdrm / 1 Bath2 Bdrm / 1 Bath
Year Built 1960
Rent$1,895$2,295
Approx. Sq. Ft.628915
73578 Arizona St, San Diego, CA 92104
Unit Type 1 Bdrm / 1 Bath
Year Built 1936
Rent $1,800
Approx. Sq. Ft. 475
863621 Park Blvd, San Diego, CA 92103
RENT COMPS
1626 Upas St, San Diego, CA 92103
Unit Type 1 Bdrm / 1 Bath
Year Built 1953
Rent $1,895
Approx. Sq. Ft. 500
3665 Richmond St, San Diego, CA 92103
Unit Type Studio / 1 Bath
Year Built 1962
Rent $1,475
Approx. Sq. Ft. 400
103580 4th Ave, San Diego, CA 92103
Unit Type Studio / 1 Bath
Year Built 1915
Rent $1,700
Approx. Sq. Ft. 350
119
3066 HAWTHORN STCONFIDENTIALITY AGREEMENT
ABSOLUTELY NO PROPERTY TOURS OR DISCUSSIONS WITH TENANTS WITHOUT WRITTEN CONSENT
The information contained in the following offering memorandum is proprietary and strictly
confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and
it should not be made available to any other person or entity without the written consent of Marcus
& Millichap. By taking possession of and reviewing the information contained herein the recipient
agrees to hold and treat all such information in the strictest confidence. The recipient further agrees
that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no
interest in the subject property at this time, please return this offering memorandum to Marcus &
Millichap.
This offering memorandum has been prepared to provide summary, unverified financial and
physical 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 foot- age of the property and
improvements, the presence or absence of contaminating substances, PCBs or asbestos, the
compliance with local, 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
offering memorandum 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.
Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.
RAYMOND CHOISENIOR VICE PRESIDENT INVESTMENTS
DIRECTOR, NATIONAL MULTI HOUSING GROUP4660 LA JOLLA VILLAGE DR, STE 900, SAN DIEGO, CA 92122
858-373-3136 DIRECT | 858-735-6632 [email protected]
LICENSE: CA: 01297138
CARSON TRUJILLOSENIOR ASSOCIATE
MEMBER, NATIONAL MULTI HOUSING GROUP4660 LA JOLLA VILLAGE DR, STE 900, SAN DIEGO, CA 92122
858-373-3285 DIRECT | 859-433-8741 [email protected]
LICENSE: CA: 01974818
4660 La JoLLa ViLLage Dr., Ste 900San Diego, Ca 92122
858-373-3100
