THE ZORBAS GROUP...THE ZORBAS GROUP PRIV ATE CLIENT DIVISION ˜˚˛˝˙ˆˇ AMION REE AN DIEGO,...

O F F E R I N G M E M O R A N D U M

THE ZORBAS GROUPP R I V A T E C L I E N T D I V I S I O N

3965-71 HAMILTON STREETSAN DIEGO, CALIFORNIA 92104

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

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

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 footage of the property and improvements, the presence or absence of contaminating substances, PCB's or

asbestos, the compliance with 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 Marketing Brochure 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary,

especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on

behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus &

Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other

professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma

financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections,

analyses, and decision-making.

Non-Endorsement NoticeMarcus & 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.

3965-3971 HAMILTON ST

San Diego, CA 92104

ACT ID ZAB0090534

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Executive Summary

Property Overview

FINANCIAL ANALYSIS 02Rent Roll Summary

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03Sales Comparables

Rent Comparables

MARKET OVERVIEW 04

Demographic Analysis


3


4


5

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

B B S I 5,003

Kulthorn North America 5,000

Naval Medical Center 4,250

Solar Turbines Incorporated 4,118

United States Dept of Navy 4,103

Medical Center 4,000

Space & Naval Warfare Command 3,500

Univers of Calif San Diego Hs 3,281

Kaiser Permanente 3,140

Elite Show Services Inc 3,123

Rady Chld Hospital-San Diego 3,100

SHARP REES-STEALY PHARMACY 3,000

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2019 Estimate Pop 51,407 283,546 583,593

2010 Census Pop 47,516 261,999 543,361

2019 Estimate HH 27,977 129,588 229,985

2010 Census HH 25,362 116,447 208,336

Median HH Income $57,069 $57,872 $58,939

Per Capita Income $42,278 $39,167 $34,944

Average HH Income $77,534 $84,483 $86,200

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

1 Studio 350

9 1 Bd / 1 Ba 450

10 Total 4,400

VITAL DATA

Price $3,250,000 CURRENT YEAR 1

Down Payment 46% / $1,495,000 CAP Rate 3.44% 4.99%

Loan Amount $1,755,000 GRM 17.81 13.96

Loan Type Proposed New Net Operating Income $111,850 $162,144

Interest Rate / Amortization 3.4% / 30 YearsNet Cash Flow After Debt Service

1.23% / $18,453 4.60% / $68,747

Price/Unit $325,000 Total Return 3.53% / $52,710 6.97% / $104,187

Price/SF $738.64

Number of Units 10

Rentable Square Feet 4,400

Year Built N/K

Lot Size 0.16 acre(s)

6


#

OFFERING SUMMARY

PROPERTY OVERVIEW

Marcus & Millichap is pleased to present 3965-3971 Hamilton Street, a turnkey 10-unit community located in the North Park neighborhood of San Diego, California. The two-story property is situated on 0.16 acres and is comprised of one (1) studio and nine (9) one-bedroom/one-bathroom units totaling approximately 4,392 square feet.

The subject property has a charming cottage-style layout for most units that is complimented with lush landscaping and tasteful common areas. The property was extensively remodeled inside and out in 2016 with new floors, tile showers and kitchen backsplash, doors, granite counter tops, cabinets, heating/air units, and stainless-steel appliances. Almost all of the windows and plumbing systems have been replaced over the last few years as well.

The subject property is ideally located in the center of North Park, today's epicenter of rent growth in San Diego. Additionally, the property is approximately half a mile from Morley Field/Balboa Park which offers tennis courts, public pool, baseball fields, archery range, hiking trails, dog park, disk golf course, playground, and a speed track for bicyclist. Residents at the subject property enjoy immediate walking access to the many bars and restaurants on University Avenue and 30th

Street. As such, the property boasts a walk score of 95 points, considered a “Walker’s Paradise. Lastly residents also enjoy easy access to Interstate 805 and Highway 163 via University Avenue.

The subject property provides an investor with the rare opportunity to purchase a turnkey and stable investment with over 20% rental upside. The asset is well-positioned for a new owner to capture the high rate of rental growth that North Park has to offer. Offered free-and-clear of debt, allowing investors the opportunity to take advantage of today’s historically low interest rates.

7

Turnkey Property with over 20% rental upside

Unit Amenities

One block north of University Ave

Charming cottage style layout

Offered free and clear of debt

7

Walkscore of 95, considered a "Walker's

Paradise”

REGIONAL MAP


8

LOCAL MAP


9

AERIAL PHOTO


10

PROPERTY PHOTO


11

INTERIOR PHOTO


12

INTERIOR PHOTO


13

INTERIOR PHOTO


14

INTERIOR PHOTO


15

INTERIOR PHOTO


16


17

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

18

FINANCIAL ANALYSIS


PRICING DETAIL

19

MARCUS & MILLICHAP ADVANTAGE

MARCUS & MILLICHAP CAPITAL

CORPORATION CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to providing

superior capital market expertise, precisely managed execution, and unparalleled

access to capital sources providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae,

Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues for the benefit of our clients.

Optimum financing solutions to

enhance value

Enhanced control through

investor qualification support


MMCC’s ability to qualify

investor finance contingencies


MMCC’s ability to monitor

investor/due diligence and

underwriting to ensure timely,

predictable closings


quickly identifying potential

debt/equity sources,

processing, and closing

buyer’s finance alternatives

WHY MMCC?

National platform

operating

within the firm’s

brokerage offices

$ 7.18 billion

total national

volume in 2019

Access to

more capital

sources than

any other firm

in the industry

Closed 1,994

debt and equity

financings

in 2019

20



21

MARKET

COMPARABLES


SALES COMPARABLES MAP

22


(SUBJECT)

3503 Florida Street

4615-4619 Georgia Street

3934-3944 Bancroft Street

865 21st Street

4534 30th Street

SALES COMPARABLES

1

2

3

4

5

PROPERTY NAME3965-3971 HAMILTON ST

SALES COMPARABLES

23

SALES COMPARABLESSALES COMPARABLES SALES COMPS AVG

Avg. 3.82%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

3965-3971

Hamilton St

3503

Florida

Street

4615-4619

Georgia

Street

3934-3944

Bancroft

Street

865 21st

Street

4534 30th

Street

Average Cap Rate


SALES COMPARABLES

24


Avg. 18.58

0.00

2.60

5.20

7.80

10.40

13.00

15.60

18.20

20.80

23.40

26.00

3965-3971

Hamilton St

3503

Florida

Street

4615-4619

Georgia

Street

3934-3944

Bancroft

Street

865 21st

Street

4534 30th

Street

Average GRM


SALES COMPARABLES

25


Avg. $516.27

$0.00

$80.00

$160.00

$240.00

$320.00

$400.00

$480.00

$560.00

$640.00

$720.00

$800.00

3965-3971

Hamilton St

3503

Florida

Street

4615-4619

Georgia

Street

3934-3944

Bancroft

Street

865 21st

Street

4534 30th

Street

Average Price Per Square Foot


SALES COMPARABLES

26


Avg. $309,987

$0

$40,000

$80,000

$120,000

$160,000

$200,000

$240,000

$280,000

$320,000

$360,000

$400,000

3965-3971

Hamilton St

3503

Florida

Street

4615-4619

Georgia

Street

3934-3944

Bancroft

Street

865 21st

Street

4534 30th

Street

Average Price Per Unit

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


27

SALES COMPARABLES

Units Unit Type

Offering Price: $3,250,000 1 Studio

Price/Unit: $325,000 9 1 Bdr 1 Bath

Price/SF: $738.64

CAP Rate: 3.44%

GRM: 17.81

Total No. of Units: 10

Year Built: N/K

Underwriting Criteria

Income $178,383 Expenses $66,533

NOI $111,850 Vacancy ($5,473)

3965-3971 HAMILTON ST3965-3971 Hamilton St, San Diego, CA, 92104

1

Units Unit Type

Close Of Escrow: 5/8/2020 4 1 Bdr 1 Bath

Sales Price: $1,800,000 1 2 Bdr 2 Bath

Price/Unit: $360,000

Price/SF: $548.95

CAP Rate: 4.23%

GRM: 15.73


Year Built: 1964

3503 FLORIDA STREET3503 Florida Street, San Diego, CA, 92104

Units Unit Type


Sales Price: $1,800,000


Price/SF: $482.06

CAP Rate: 4.00%

GRM: 24.57


Year Built: 1947

2

4615-4619 GEORGIA STREET4615-4619 Georgia Street, San Diego, CA, 92116

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


28

SALES COMPARABLES

Units Unit Type




Price/SF: $507.73

CAP Rate: 4.33%

GRM: 13.57


Year Built: 1933

3

3934-3944 BANCROFT STREET3934-3944 Bancroft Street, San Diego , CA, 92104

4

Units Unit Type


Sales Price: $2,105,000


Price/SF: $419.32

CAP Rate: 2.52%

GRM: 22.73


Year Built: 1926

865 21ST STREET865 21st Street, San Diego, CA, 92102

Units Unit Type




Price/SF: $623.28

CAP Rate: 4.00%

GRM: 16.28


Year Built: 1957

5

4534 30TH STREET4534 30th Street, San Diego, CA, 92104

8


RENT COMPARABLES MAP


(SUBJECT)

Star North

4415-23 Kansas Street

3644 Indiana Street

3233 Herman Avenue

Park View

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

5

29


RENT COMPARABLES

30

AVERAGE OCCUPANCY

Avg. 91.20%

0

10

20

30

40

50

60

70

80

90

100

3965-3971

Hamilton St

Star North 4415-23

Kansas

Street

3644

Indiana

Street

3233 Herman

Avenue

Park View


RENT COMPARABLES

31

AVERAGE RENT - MULTIFAMILY

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

3965-3971

Hamilton St

Park View

Studios

Avg. $2,096

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

3965-3971

Hamilton St

Star North 4415-23

Kansas

Street

3644

Indiana

Street

3233 Herman

Avenue

Park View

1 Bedroom

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


32

YEAR BUILT: N/K

rentpropertyname1


Unit Type Units SF Rent Rent/SF

Studio 1 350 $1,280 $3.66

1 Bd 1 Ba 9 450 $1,547 $3.44

Total/Avg. 10 440 $1,520 $3.46

3965-3971 HAMILTON ST3965-3971 Hamilton St, San Diego, CA, 92104

OCCUPANCY: 78% | YEAR BUILT: 1966

1


1 Bdr 1 Bath 25 550-650$1,995-$2,195

$3.49

2 Bdr 1 Bath 10 900$2,495-$2,695

$2.88

Total/Avg. 35 686 $2,238 $3.26

STAR NORTH3929 Kansas Street, San Diego, CA, 92104

2



1 Bdr 1 Bath 5 550 $2,095 $3.81

Total/Avg. 5 550 $2,095 $3.81

4415-23 KANSAS STREET4415-23 Kansas Street, San Diego, CA, 92116

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


33


3


1 Bdr 1 Bath 3 625 $2,100 $3.36

2 Bdr 1 Bath 2 890 $2,550 $2.87

Total/Avg. 5 731 $2,280 $3.12

3644 INDIANA STREET3644 Indiana Street, San Diego, CA, 92103


4


1 Bdr 1 Bath 5 580 $2,150 $3.71

2 Bdr 1 Bath 2 818 $2,300 $2.81

2 Bdr 2 Bath 1 888 $2,500 $2.82

Total/Avg. 8 678 $2,231 $3.29

3233 HERMAN AVENUE3233 Herman Avenue, San Diego, CA, 92104

5



Studio 13 400 $1,600-$1,700 $4.13

1 Bdr 1 Bath 29 600 $1,995-$2,080 $3.40

2 Bdr 1 Bath 9 900 $2,450-$2,600 $2.81

Total/Avg. 51 602 $2,025 $3.36

PARK VIEW3700 10th Avenue, San Diego, CA, 92103


34


35

MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2019 Experian

Created on July 2020

POPULATION 1 Miles 3 Miles 5 Miles

2024 Projection

Total Population 52,966 292,140 600,571

2019 Estimate


2010 Census


2000 Census


Daytime Population

2019 Estimate 35,850 358,839 764,731

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2024 Projection

Total Households 29,015 135,160 239,158

2019 Estimate


Average (Mean) Household Size 1.84 2.13 2.40

2010 Census


2000 Census


Growth 2015-2020 3.71% 4.30% 3.99%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

Occupied Units

2024 Projection 29,015 135,160 239,158

2019 Estimate 28,106 133,716 237,374

Owner Occupied 6,429 36,135 77,826

Renter Occupied 21,548 93,453 152,159

Vacant 129 4,128 7,389

Persons In Units

2019 Estimate Total Occupied Units 27,977 129,588 229,985

1 Person Units 47.34% 42.39% 36.35%

2 Person Units 34.80% 31.81% 30.34%

3 Person Units 9.87% 11.09% 12.80%

4 Person Units 4.82% 7.05% 9.49%

5 Person Units 1.91% 3.81% 5.37%

6+ Person Units 1.27% 3.84% 5.65%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2019 Estimate

$200,000 or More 4.27% 5.91% 6.21%

$150,000 - $199,000 5.57% 6.15% 6.31%

$100,000 - $149,000 13.10% 14.01% 14.57%

$75,000 - $99,999 13.28% 12.64% 12.66%

$50,000 - $74,999 19.14% 17.23% 16.81%

$35,000 - $49,999 15.05% 12.88% 12.64%

$25,000 - $34,999 8.79% 8.73% 8.84%

$15,000 - $24,999 9.67% 10.05% 9.92%

Under $15,000 11.12% 12.41% 12.03%

Average Household Income $77,534 $84,483 $86,200

Median Household Income $57,069 $57,872 $58,939

Per Capita Income $42,278 $39,167 $34,944

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2019 Estimate Total Population 51,407 283,546 583,593

Under 20 14.01% 19.41% 22.88%

20 to 34 Years 33.43% 31.18% 30.16%

35 to 39 Years 12.16% 10.03% 8.66%

40 to 49 Years 15.19% 13.98% 12.64%

50 to 64 Years 15.86% 15.44% 14.91%

Age 65+ 9.33% 9.94% 10.74%

Median Age 35.95 34.74 33.47

Population 25+ by Education Level

2019 Estimate Population Age 25+ 41,536 209,696 399,677

Elementary (0-8) 2.22% 5.62% 6.52%

Some High School (9-11) 4.71% 7.43% 8.19%

High School Graduate (12) 14.62% 16.42% 17.92%

Some College (13-15) 21.79% 19.99% 21.26%

Associate Degree Only 8.85% 7.40% 7.41%

Bachelors Degree Only 29.69% 25.67% 22.87%

Graduate Degree 17.28% 15.22% 13.38%

Population by Gender

2019 Estimate Total Population 51,407 283,546 583,593

Male Population 51.42% 51.56% 51.53%

Female Population 48.58% 48.44% 48.47%

36

Income

In 2019, the median household income for your selected geography is

$57,069, compare this to the US average which is currently $60,811.

The median household income for your area has changed by 86.24%

since 2000. It is estimated that the median household income in your

area will be $64,843 five years from now, which represents a change

of 13.62% from the current year.

The current year per capita income in your area is $42,278, compare

this to the US average, which is $33,623. The current year average

household income in your area is $77,534, compare this to the US

average which is $87,636.

Population

In 2019, the population in your selected geography is 51,407. The

population has changed by 6.44% since 2000. It is estimated that the

population in your area will be 52,966.00 five years from now, which

represents a change of 3.03% from the current year. The current

population is 51.42% male and 48.58% female. The median age of

the population in your area is 35.95, compare this to the US average

which is 38.08. The population density in your area is 16,365.49

people per square mile.

Households

There are currently 27,977 households in your selected geography.

The number of households has changed by 11.04% since 2000. It is

estimated that the number of households in your area will be 29,015

five years from now, which represents a change of 3.71% from the

current year. The average household size in your area is 1.84 persons.

Employment

In 2019, there are 12,171 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

68.58% of employees are employed in white-collar occupations in

this geography, and 31.48% are employed in blue-collar occupations.

In 2019, unemployment in this area is 2.64%. In 2000, the average

time traveled to work was 25.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

63.36% White, 9.12% Black, 0.41% Native American and 6.41%

Asian/Pacific Islander. Compare these to US averages which are:

70.07% White, 12.87% Black, 0.19% Native American and 5.66%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 31.91% of the current year

population in your selected area. Compare this to the US average of

18.17%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $490,156 in 2019,

compare this to the US average of $212,058. In 2000, there were

5,196 owner occupied housing units in your area and there were

19,999 renter occupied housing units in your area. The median rent at

the time was $593.

Source: © 2019 Experian

DEMOGRAPHICS

37

8


DEMOGRAPHICS

38

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