N O R T H P A R K
3769 32nd STREETSAN DIEGO, CA 92104
OFFERING MEMORANDUM
EXECUTIVE SUMMARY
Marcus & Millichap is pleased to present a rare 7 unit multifamily investment opportunity in North Park, one of San Diego’s highly preferred neighborhoods due to its prime location,
cultural diversity, and noticeable aggressive climb in growth.
3769 32nd Street is a 5,512 square foot complex sitting on a 6,255 square foot lot and offers an appealing unit mix of (6) spacious one bedroom / one bathrooms and (1) three bedroom
/ two bathroom townhome with an attached two car garage. In addition, the three bed-room townhome has been fully rehabbed and extensive interior/exterior renovations were also made to the property around 2012. Other attributes to attract desirable tenants in the
gated complex include granite counter tops, walk in closets, on-site parking, washer/dryer in the townhome unit, and coin operated laundry which aids in additional income.
3769 32nd Street’s irreplaceable location encapsulates the total North Park experience and Forbes has notably recognized North Park as one of the trendiest neighborhoods in San Di-ego. The subject property is located just 1 block from University Avenue and about 6 blocks away from the weekly North Park Farmer’s Market. The site is in an excellent demographic area with a 2017 daytime estimated population of 30,315 people and projected 2022 esti-
mated population of 48,585 in a one-mile radius.
In conclusion, the booming neighborhood adds to the future growth of the property’s in-come potential. The impact from these factors form a high-demand rental situation for any landlord and will undoubtedly continue to do so while potential residents value that they
are not just renting, but living exceptionally. The subject property currently sits at 100% oc-cupancy with under market rents and is an ideal value-add opportunity for an investor. With some standard enhancements to the remaining units, an investor could raise rents in one of
the highest demand rental markets in San Diego and maximize profit.
1
INVESTMENT HIGHLIGHTS
• Central North Park Location - Blocks Away From University Ave & 30th St
• Extensive Renovations Already Made To Property & 3 Bdrm / 2 Bath Twnhme Rehabbed
• Value-Add - Under Market Rents In A High Demand Area
• Off Street Parking & (1) Attached Two Car Garage
• Coin Operated Laundry & Secure Gated Access
• Low Maintenance
PROPERTY DESCRIPTION
# OF STORIES: 2
FOUNDATION: Slab
PARKING: Off Street + (1) Two Car Garage
LANDSCAPING: Minimal
TOPOGRAPHY: Flat
ROOF: Pitched
ELECTRIC: Tenant Pays
GAS: Tenant Pays
WATER: RUBS
ADDRESS: 3769 32nd St
LIST PRICE: $2,150,000
PRICE PER UNIT: $307,143
# OF UNITS: 7
BUILDING SIZE: 5,512 sq ft
LOT SIZE: 0.14 acres
APN: 446-491-05-00
ZONING: RM-2-5; RM-3-8
YEAR BUILT: 1979
# OF BUILDINGS: 1
2
$2,150,000 ASKING PRICE
$307,143PRICE PER UNIT
$390.06PRICE PER SF
INTERIOR PHOTOS: 3 BDRM / 2 BATH TWNHME3
INTERIOR PHOTOS: 1 BDRM / 1 BATH 3
1. Underbelly2. Dark Horse Coffee3. City Taco4. Belching Beaver5. Crazee Burger6. Breakfast Republic7. Urban Solace8. Waypoint Public9. North Park Beer Company10. Seven Grand
11. Encontro
12. Caffe Calabria
13. Coin Op
14. Mike Hess Brewing
15. Hammond's Gourmet Ice Cream
Restaurants, Bars, & CAfes
A Walker's ParadiseNorth Park, founded in the early 1900s, is a neighborhood in San Diego located northeast of Balboa Park. North Park is bounded by Lincoln Avenue to the north, Florida Street to the west, Switzer Canyon and South Park neighborhood to the South, and Interstate 805 and City Heights to the east.
North Park’s downtown area is marked by a large sign in the middle of University Avenue near 30th Street. Due to the bustle of this eclectic neighborhood, North Park has a high rate of pedestrian activity and hosts a mix of coffee houses, retail shops, art galleries and San Diego's up-and-coming restaurant row near University Avenue and 30th Street.
In recent years, North Park has been recognized by Forbes and the Los Angeles Times as one of the trendiest neighborhoods of San Diego. Forbes magazine says "culturally diverse North Park is home to Craftsman cottag-es, cafes and diners, coffee shops, several microbreweries, boutiques, and the North Park Farmers Market. The North Park Theater and the Ray Street Arts District are also bastions of creativity in the area.” “North Park has all the ingredients for the cool school: It's culturally diverse and has art galleries, boutiques, trendy bars with hand-crafted cocktails and local brews, and foodie-approved eateries” as stated in The Los Angeles Times.
1. The Observatory 2. Aloha Sunday3. Queen Bee's Art & Cultural Center4. The Irenic5. Pigment6. Hunt & Gather7. Simply Local8. Artlexia9. North Park Beer Company10. Bar Pink
Entertainment & shopping
1. Boulevard Fitness2. CorePower Yoga3. North Park Fitness4. Last Real Gym5. KOR Strength & Conditioning6. F45 Training North Park7. Club Pilates North Park8. Pilgram of the Heart Yoga9. TITLE Boxing10. North Park Brazilian Jiu Jitsu
fitness & recreation
1. Baron's Gourmet Market2. North Park Thursday Farmer's Market3. Vons4. North Park Produce5. Smart & Final6. CVS7. Pancho Villa8. Walgreens
grocery Stores & markets
3769 32ND ST
5 mile radius
92Walk Score
Walker's Paradise
54Good Transit
Nearby many publictransportation options
59Bike Score
Flat as a pancake
A Walker's Paradise
grocery Stores & markets
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.
FINANCIAL ANALYSIS: PRICING DETAIL5
Price $2,150,000
Down Payment $1,075,000 / 50%
Number of Units 7
Price Per Unit $307,143
Price Per SqFt $390.06
Gross SqFt 5,512
Lot Size 0.14 Acres
Approx. Year Built 1979
#of Units
Unit Type Square Feet
Current Rents
Market Rents
6 1 Bdrm / 1 Bath 700 $1,319 $1,650
1 3 Bdrm / 2 Bath Twnhme
1,200 $2,700 $3,100
Cap Rate 3.91% 5.15%
GRM 16.88 13.78
Cash-on-Cash 1.75% 4.21%
Debt Coverage Ratio 1.29 1.69
Income Current Year 1
Gross Scheduled Rent $127,380 $156,000
Less: Vacancy/Deductions 3.0% $3,821 3.0% $4,680
Total Effective Rental Income $123,559 $151,320
Other Income $2,460 $2,460
Effective Gross Income $126,019 $153,780
Less: Expenses 33.2% $41,889 28.1% $43,138
Net Operating Income $84,130 $110,642
Cash Flow $84,130 $110,642
Debt Service $65,362 $65,362
Net Cash Flow After Debt Service 1.75% $18,767 4.21% $45,279
Principal Reduction $17,342 $18,139
Total Return 3.36% $36,110 5.90% $63,418
Expenses Current Year 1
Real Estate Taxes $25,148 $25,148
Insurance $2,880 $2,880
Utilities $4,740 $4,740
Repairs & Maintenance $3,150 $3,150
General & Administrative $300 $300
Management Fee $5,671 $6,920
Total Expenses $41,889 $43,138
Expenses/Unit $5,984 $6,163
Expenses/SF $7.60 $7.83
Loan Amount $1,075,000
Loan Type New
Interest Rate 4.50%
Amortization Period 30 Years
Year Due 2023
Summary
Current Year 1Returns
Financing 1st Loan
Unit Mix
Operating Data
FINANCIAL ANALYSIS: RENT ROLL6
UNIT UNIT TYPE SQ. FT. CURRENT RENT /MONTH
CURRENT RENT /SF / MONTH
POTENTIAL RENT /MONTH
POTENTIAL RENT / SF / MONTH
1 3 Bdrm / 2 Bath Twnhme 1,200 $2,700 $2.25 $3,100 $2.58
2 1 Bdrm / 1 Bath 700 $1,275 $1.82 $1,650 $2.36
3 1 Bdrm / 1 Bath 700 $1,350 $1.93 $1,650 $2.36
4 1 Bdrm / 1 Bath 700 $1,095 $1.56 $1,650 $2.36
5 1 Bdrm / 1 Bath 700 $1,350 $1.93 $1,650 $2.36
6 1 Bdrm / 1 Bath 700 $1,495 $2.14 $1,650 $2.36
7 1 Bdrm / 1 Bath 700 $1,350 $1.93 $1,650 $2.36
Total: 7 Approx. 5,512 $10,615 $1.93 $13,000 $2.36
SALES COMPS7
SUBJECT PROPERTY
3769 32nd St, San Diego, CA 92104
Sale Price $2,150,000
Close of Escrow 0n Market
Number of Units 7
Year Built 1979
Price/Unit $307,143
Price/SF $390.06
Cap Rate 3.91%
UNITS UNIT TYPE
6 1 Bdrm / 1 Bath
1 3 Bdrm / 2 Bath Twnhme
3969 Oregon St, San Diego, CA 92104
Sale Price $2,225,000
Close of Escrow 3/27/2018
Number of Units 7
Year Built 1981
Price/Unit $321,428
Price/SF $349.84
Cap Rate 2.44%
UNITS UNIT TYPE
6 1 Bdrm / 1 Bath
1 3 Bdrm / 2 Bath
13650 3rd Ave, San Diego, CA 92103
Sale Price $5,187,500
Close of Escrow 5/31/2018
Number of Units 16
Year Built 1965
Price/Unit $324,218
Price/SF $301.60
Cap Rate 3.80%
UNITS UNIT TYPE
8 1 Bdrm / 1 Bath
7 2 Bdrm / 2 Bath
1 3 Bdrm / 2 Bath
2
SALES COMPS7
3650 3rd Ave, San Diego, CA 92103 3609-15 30th St, San Diego, CA 92104
Sale Price $1,699,000
Close of Escrow ON MARKET
Number of Units 5
Year Built 1960
Price/Unit $339,800
Price/SF $448.28
Cap Rate 3.41%
UNITS UNIT TYPE
3 1 Bdrm / 1 Bath
1 2 Bdrm / 1 Bath
1 3 Bdrm / 1 Bath
4147 Idaho St, San Diego, CA 92104
Sale Price $1,675,000
Close of Escrow 11/08/2017
Number of Units 6
Year Built 1962
Price/Unit $279,166
Price/SF $366.04
Cap Rate 3.27%
UNITS UNIT TYPE
3 2 Bdrm / 1 Bath
2 1 Bdrm / 1 Bath
1 3 Bdrm / 1 Bath
44204 Campus Ave, San Diego, CA 92103
Sale Price $3,600,000
Close of Escrow 9/25/2018
Number of Units 12
Year Built 1970
Price/Unit $300,000
Price/SF $470.96
Cap Rate 3.43%
UNITS UNIT TYPE
10 1 Bdrm / 1 Bath
2 2 Bdrm / 1 Bath
53
RENT COMPS8
SUBJECT PROPERTY
3769 32nd St, San Diego, CA 92104
Unit Type(6) 1 Bdrm / 1 Bath
(1) 3 Bdrm / 2 Bath Twnhme
Year Built 1979
Rent$1,275-1,495
$2,700
Approx. Sq. Ft.700
1,200
Comments
RehabbedSecure Gated Entry
Off Street Parking(1) Attached Two Car GarageWasher / Dryer In Townhome
Coin Operated Laundry
3106 Bancroft St, San Diego, CA 92104
Unit Type 3 Bdrm / 2 Bath
Year Built 1939
Rent $2,995
Approx. Sq. Ft. 1,125
Commments
Updated KitchenGranite Counters
Stainless Steel AppliancesW/D Hookups
Sundeck
14188 I l l inois St, San Diego, CA 92104
Unit Type 3 Bdrm / 2 Bath
Year Built 1928
Rent $2,995
Approx. Sq. Ft. 1,048
Comments
Single Car GaragePrivate Back Yard
Stainless Steel AppliancesW/D In Unit
Granite Counters
2
RENT COMPS8
4188 I l l inois St, San Diego, CA 92104 3754 32nd St, #6, San Diego, CA 92104
Unit Type 1 Bdrm / 1 Bath
Year Built 1987
Rent $1,575
Approx. Sq. Ft. 725
Comments
Coin Laundry On SiteOff Street Parking
Wood FlooringCustom Paint Throughout
White Cabinets
3662 32nd St, #2, San Diego, CA 92104
Unit Type 1 Bdrm / 1 Bath
Year Built 1971
Rent $1,595
Approx. Sq. Ft. 650
Commments
Quartz CountersStainless Steel Appliances
Custom Cabinets(1) Assigned Parking Spot
Secured Gated Entry
42815 Howard Ave,#11 , San Diego, CA 92104
Unit Type 1 Bdrm / 1 Bath
Year Built 1972
Rent $1,650
Approx. Sq. Ft. 732
Comments
Fully UpgradedShared LaundryPrivate Balcony
Off Street Parking
53
CONFIDENTIALITY 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