330 W I Street 1
WILL CREAGANMulti-Family Investments+1 [email protected] #00949450
CLARK RORBACHMulti-Family Investments+1 [email protected] #01888559
Offered By
330WEST I STREETEncinitas, CA 92024
Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
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LIST PRICE: $12,950,000
TOTAL UNITS: 21
PRICE/UNIT: $616,667
PRICE/SF: $700
CAP RATE: 4.1%-4.9%
GRM: 16.1-14.1
APPROX BLDG. SIZE: 18,500 SF
APPROX. LOT SIZE 0.65 Acres
APN: 258-172-19
YEAR BUILT: 1960
PARKING27 Total Spaces
10 Tandem7 Single
EXECUTIVE SUMMARYLocation location location! How many times have you heard it? If you are in real estate, you’ve heard that term more times than you can count. Well it doesn’t get any better than this. Encinitas is one of the strongest and most desirable locations in the county. Located along 6 miles of the Pacific coastline in North San Diego County, it has an approximate population of 65,000 and is characterized by the coastal beaches, cliffs, flat-topped coastal areas, steep mesa bluffs, and rolling hills. Encinitas city was incorporated in 1985 drawing together the communities of New and Old Encinitas, Cardiff by the Sea, Olivenhain and Leucadia. The Downtown Highway 101 area is a thriving coastal shopping district that is over 100 years old, featuring historic architecture, quaint shops, the La Paloma Theater, and many sidewalk cafes & restaurants. Golf enthusiasts enjoy the Encinitas Ranch Golf Course, which is a championship 18 hole par 72 course with panoramic ocean views. The beaches in Encinitas are outstanding, and play host to many surf contests throughout the year. The San Elijo Lagoon Reserve is the largest coastal wetland in San Diego County and is home to nearly 300 different bird species.
The Pacific Crest Apartments are situated in a Single family / multi-family residential neighborhood just west of Interstate 5 and Coast Highway 101. Walk two short blocks down to the commercial district where you can find over 30 restaurants & pubs, banks, live music, yoga studios and many other interesting neighborhood amenities. Temperatures rarely dip below 40 or go above 85 degrees, which makes it an ideal place to live, work and play.
• Renovated kitchens and bathrooms (2002-2004)• Tile Flooring (Kitchen & Baths)
Carpet (Living Room & Bedroom) • Tile Tub Surrounds• Granite countertops (2014)• Refinished cabinetry in Kitchen and Bath (2014)• Sliding glass doors downstairs (2004)• Added cement patios (2004)• Fencing for private yards (2004)• Glass wall along western edge of pool area
330 W I Street
• Re-plumbed with new copper pipes in 2004
• Carpets, paint, appliances and window coverings replaced as needed over past 15 years
• Laundry room renovated in 2011• Pool and pool area renovation in 2010
and 2017• New deck coating 2018• Repainted exterior in 2018• 3 units highly renovated in 2015
Capital Improvements During Current 15 Year Ownership
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INVESTMENT HIGHLIGHTS• Irreplaceable California Coastal Asset• All 2 Bedroom Units• Highly Desirable Market• Low Vacancy Market• Well Maintained• Significant Capital Improvements• Sweeping Views of the Coast• Pool Overlooks the Ocean• Solar Heated Pool• Transit Oriented Location• Walk to 30+ Restaurants, Banks, Yoga • I Street Overlook Park is
Contiguous to Property - Great for Pets
Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
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RENT ROLLUnit Mix # OF UNITS APPROX. SQ FT CURRENT RENT IMPROVED RENT
2 bed, 1 bath 20 861 $2,845-$3,600 $3,600
2 bed, 2 bath 1 1,124 $3,900 $3,900
Laundry Income $500 $500
RUBS $375 $375
Monthly Gross Income $67,045 $76,775
Annual Gross Income $804,540 $921,300
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PROPOSED FINANCING % of ValueDown Payment 50% $6,475,000 New First Loan 4.05% 30 year 50% $6,475,000
5 year fixed Total $12,950,000
CURRENT RENT IMPROVED RENTANNUAL GROSS SCHEDULED INCOME $804,540 $921,300 Vacancy 3.0% ($24,136) ($27,639)TOTAL EFFECTIVE GROSS INCOME $780,404 $893,661
ESTIMATED EXPENSESReal Estate Taxes 1.06% $137,010 $137,010 Fixed Charged Assmts (Sewer, etc.) $1,510 $1,510 Insurance $9,034 $9,034 Water $2,555 $2,555 Gas & Electricity $8,969 $8,969 Landscaping $700 $700 Trash $2,234 $2,234 Pool & Spa $2,149 $2,149 Management 4.25% $33,167 $37,981 Res Manager $18,000 $18,000 Maintenance $1,250/unit $26,250 $26,250 Reserves $250/unit $5,250 $5,250 Pest Control $720 $720 Administrative $1,000 $1,000 Misc. $1,000 $1,000
Total Expenses 31% ($11,883 Total Exp/Unit) ($249,549) ($254,362)
NET OPERATING INCOME $530,855 $639,299 CAPITALIZATION RATE 4.1% 4.9%PROPOSED FINANCINGNew First Loan 4.05% $6,475,000 ($373,195) ($373,195)
CASH FLOW $157,660 $266,104Cash On Cash Return 2.4% 4.1%
INCOME & EXPENSE SUMMARY
Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
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Unit Mix CURRENT RENT SECURITY DEPOSIT LEASE END
1 2 Bedroom, 1 Bath $3,175 $3,000 10/31/19
2 2 Bedroom, 1 Bath $3,245 $3,220 6/30/19
3 2 Bedroom, 1 Bath $3,150 $3,150 1/31/20
4 2 Bedroom, 1 Bath $3,220 $3,000 8/31/19
5 2 Bedroom, 1 Bath $3,600 $3,000 10/31/19
6 2 Bedroom, 1 Bath $3,100 $3,000 10/31/19
7 2 Bedroom, 1 Bath $2,845 $2,845 2/28/19
8 2 Bedroom, 1 Bath $2,995 $3,095 12/31/19
9 2 Bedroom, 1 Bath $2,900 $2,900 10/31/17
10 2 Bedroom, 1 Bath $3,525 $3,525 5/31/19
11 2 Bedroom, 1 Bath $2,995 $2,995 4/30/19
12 2 Bedroom, 1 Bath $3,175 $3,175 8/31/19
13 2 Bedroom, 1 Bath $2,970 $2,970 5/30/18
14 2 Bedroom, 1 Bath $3,120 $2,995 9/30/18
15 2 Bedroom, 1 Bath $3,000 $2,900 4/30/18
16 2 Bedroom, 1 Bath $2,895 $2,870 6/30/18
17 2 Bedroom, 1 Bath $2,970 $2,970 11/30/19
18 2 Bedroom, 1 Bath $2,870 $2,870 5/31/19
19 2 Bedroom, 1 Bath $2,995 $2,995 10/31/19
20 2 Bedroom, 1 Bath $3,525 $3,000 11/30/19
21 2 Bedroom, 2 Bath $3,900 $3,500 9/30/18
Total $66,170 $63,975
UNIT MIX
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Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
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SAN DIEGO COUNTY COMPARABLE APARTMENT SALESPRICE PRICE / UNIT PRICE / SQFT CAP RATE GRM BUILT
PACIFIC CREST APARTMENTS $12,950,000 $616,667 $700 Current: 4.1% 16.1 1960330 W I Street Improved: 4.9% 14.1Encinitas, CA 92024
Comparable Property Sales9 LA JOLLA UNITS $7,800,000 $866,667 $1,114 NK NK Older811-821 Coast Blvd SLa Jolla, CA 92037Average Unit Size: 778 SF 9 One BedroomsSOLD: 11/16/2018
VULCAN PORTFOLIO $10,300,000 $429,167 $591 3.4% 18.5 Mid 1970s1237 & 1353 N Vulcan Ave 3.9% 17.0Encinitas, CA 92024Average Unit Size: 724 SF 16 One Bedrooms, 8 Two BedroomsSOLD: 8/20/2018Notes: Off Market Sale. Buyer paid commission on top of purchase price.
6 CARLSBAD UNITS $3,200,000 $533,333 $710 NK NK 19653254-3256 Lincoln StCarlsbad, CA 92008Average Unit Size: 751 SF MIX UnknownSold: 5/23/2018
9 UNITS IN PB $4,855,000 $606,875 $571 4.1% 17.0 19891016-1024 Hornblend StSan Diego, CA 92109Average Unit Size: 1,000 SF 8 Three BedroomsSOLD: 12/10/2018
IN EDEN $11,050,000 $650,000 $888 3.7% 18.4 1960600-616 Prospect StLa Jolla, CA 92037Average Unit Size: 732 SF 10 One Bedrooms, 7 Two Bedrooms SOLD: 1/12/2017
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PRICE PRICE / UNIT PRICE / SQFT CAP RATE GRM BUILTPACIFIC CREST APARTMENTS $12,950,000 $616,667 $700 Current: 4.1% 16.1 1960330 W I Street Improved: 4.9% 14.1Encinitas, CA 92024
Comparable Property Sales9 LA JOLLA UNITS $7,800,000 $866,667 $1,114 NK NK Older811-821 Coast Blvd SLa Jolla, CA 92037Average Unit Size: 778 SF 9 One BedroomsSOLD: 11/16/2018
VULCAN PORTFOLIO $10,300,000 $429,167 $591 3.4% 18.5 Mid 1970s1237 & 1353 N Vulcan Ave 3.9% 17.0Encinitas, CA 92024Average Unit Size: 724 SF 16 One Bedrooms, 8 Two BedroomsSOLD: 8/20/2018Notes: Off Market Sale. Buyer paid commission on top of purchase price.
6 CARLSBAD UNITS $3,200,000 $533,333 $710 NK NK 19653254-3256 Lincoln StCarlsbad, CA 92008Average Unit Size: 751 SF MIX UnknownSold: 5/23/2018
9 UNITS IN PB $4,855,000 $606,875 $571 4.1% 17.0 19891016-1024 Hornblend StSan Diego, CA 92109Average Unit Size: 1,000 SF 8 Three BedroomsSOLD: 12/10/2018
IN EDEN $11,050,000 $650,000 $888 3.7% 18.4 1960600-616 Prospect StLa Jolla, CA 92037Average Unit Size: 732 SF 10 One Bedrooms, 7 Two Bedrooms SOLD: 1/12/2017
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Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
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PRICE PRICE / UNIT PRICE / SQFT CAP RATE GRM BUILTPACIFIC CREST APARTMENTS $12,950,000 $616,667 $700 Current: 4.1% 16.1 1960330 W I Street Improved: 4.9% 14.1Encinitas, CA 92024
Comparable Property Sales13 UNITS IN LAGUNA $10,500,000 $807,692 $853 3.5% 19.4 1971/2017222 Arch StLaguna Beach, CA 926512 bed, 2 bathAverage Unit Size: 947 SF 12 two bedrooms, 1 three bedroomsSOLD: 8/1/2018
8 LAGUNA UNITS $4,725,000 $590,625 $750 2.5% NK 19631570 N Coast HwyLaguna Beach, CA 926512 bed, 2 bathAverage Unit Size: 788 SF6 One Bedrooms, 2 Two BedroomsSOLD: 8/14/2018
6 LAGUNA UNITS $3,410,000 $568,333 $734 3.1% NK 1954970 Glenneyre StLaguna Beach, CA 92651Average Unit Size: 774 SF3 One Bedrooms, 3 Two BedroomsSOLD: 8/13/2018
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ORANGE COUNTY COMPARABLE APARTMENT SALES
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222 Arch St
1570 N Coast Hwy
970 Glenneyre St
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Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
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UNIT MIX AVG SF SALE PRICE PRICE PER SF HOA YEAR BUILTPACIFIC CREST APARTMENTS
$13,200,000
2 Bed, 1 Bath 881 $616,667 (Avg. Price/Unit)
$700 NA 1960
330 W I StreetEncinitas, CA 92024
Comparable Property SalesSANDPIPER POINT 2 bed, 2 bath 1,650 $1,650,000 $1,000 $560 1978361 W I StreetEncinitas, CA 92024SOLD: 6/24/2018
SANDPIPER POINT 2 bed, 2 bath 1,668 $1,185,000 $710 $560 1978321 W I StreetEncinitas, CA 92024SOLD: 3/8/2018
SANDPIPER POINT 2 bed, 2 bath 1,533 $1,699,000 $1,108 $560 1977335 W I StreetEncinitas, CA 92024FOR SALE
PACIFIC PANORAMA 2 bed, 2 bath 970 $1,025,000 $1,057 $630 1980940 Sealane Drive 5Encinitas, CA 92024SOLD: 6/29/2017
ENCINITAS BLUFFS 2 bed, 2.5 bath + Den 1,553 $1,029,250 $663 $550 1986922 Sealane CEncinitas, CA 92024SOLD: 8/18/2017
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NEIGHBORHOOD CONDO COMPARABLE SALES
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361 W I St
321 W I St
335 W I St
940 Sealane Dr
922 Sealane Dr
UNIT MIX AVG SF SALE PRICE PRICE PER SF HOA YEAR BUILTPACIFIC CREST APARTMENTS
$13,200,000
2 Bed, 1 Bath 881 $616,667 (Avg. Price/Unit)
$700 NA 1960
330 W I StreetEncinitas, CA 92024
Comparable Property SalesSANDPIPER POINT 2 bed, 2 bath 1,650 $1,650,000 $1,000 $560 1978361 W I StreetEncinitas, CA 92024SOLD: 6/24/2018
SANDPIPER POINT 2 bed, 2 bath 1,668 $1,185,000 $710 $560 1978321 W I StreetEncinitas, CA 92024SOLD: 3/8/2018
SANDPIPER POINT 2 bed, 2 bath 1,533 $1,699,000 $1,108 $560 1977335 W I StreetEncinitas, CA 92024FOR SALE
PACIFIC PANORAMA 2 bed, 2 bath 970 $1,025,000 $1,057 $630 1980940 Sealane Drive 5Encinitas, CA 92024SOLD: 6/29/2017
ENCINITAS BLUFFS 2 bed, 2.5 bath + Den 1,553 $1,029,250 $663 $550 1986922 Sealane CEncinitas, CA 92024SOLD: 8/18/2017
Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
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PHOTOS
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Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
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PHOTOS
Moonlight State Beach
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View not of the property
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View not of the property
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63,0542018 Population
48,3042018 Population
6,7132018 Population
102,5822018 Population
$106,576Median Household Income
$103,345Median Household Income
$103,912Median Household Income
$112,160Median Household Income
$909,200Median Home Value
$886,584Median Home Value
$1,135,935Median Home Value
$927,003Median Home Value
43.5Median Age
43.3Median Age
42.1Median Age
44.7Median Age
City of Encinitas 1 Mile 3 Mile 5 Mile
ENCINITAS DEMOGRAPHICS
RADIUS FROM SUBJECT PROPERTY
Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
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SAN DIEGO MARKET OVERVIEWSan DiegoMulti-Family Fall 2018
MARKETBEAT
Economic Indicators
Market Indicators
Asking Rent vs. Vacancy
Net Absorption
Sep-17 Sep-18 12-Month Forecast
San Diego Employment 1.53M 1.55M
San Diego Unemployment 3.7% 3.2%
U.S. Unemployment 4.4% 3.9%
Sep-17 Sep-18 12-Month Forecast
Vacancy 2.73% 3.72%
Asking Rent $1,875 $1,960
Units Surveyed 131,600 134,530Net Absorption 1,057 1,104
EconomyThe San Diego employment market continued to record job growth, adding26,900 jobs (+1.9%) year-over-year through September 2018.1 During thesame time period, the unemployment rate decreased 50 basis points (bps),dropping to 3.2%. Also worth noting, the current rate is 270 bps below the28-year average of 5.9%. All employment sectors are expected to grow at acombined growth rate of 1.9% in 2018 and 1.4% in 2019. San Diego’seconomy of $231.8 billion2 as measured by gross regional product isforecasted to grow an additional 4.2% in 2018 and 2.9% in 2019, above its10-year average of 2.6%.3
Market OverviewSales Activity: San Diego’s multi-family investment market sales volume forproperties $5 million and greater surpassed $1 billion by the end of thirdquarter 2018, with over 87% of year-to-date sales volume occurring in thesecond and third quarters. Total transaction activity has been above the16-year long-term annual average of $1.6 billion for the last threeconsecutive years. Multi-family product continues to be in high demand,although a lack of offerings is hindering sales volume from a notable annualincrease. Private high net worth investors have been the leading buyers ofmulti-family assets for the last five consecutive years, a trend that isexpected to continue.4
Housing Affordability: The homeownership rate in the U.S. is at a multi-decade lows (64.3%), as renters stay renting longer and would-be buyersfind it difficult to enter the market. Based on the 2018 survey published inthe Zillow Housing Aspiration Report, 94% have a preference to own ahome and a majority of American’s prefer to live in suburbs. However, inSan Diego only 23% of households could afford to purchase the medianpriced home compared to 26% in California and 53% nationwide as of mid-2018. The most expensive metros are located in the Bay Area withaffordability index being the lowest in San Francisco at 14 due to a medianhome price of $1.6 million compared to $645,000 in San Diego.5
Rental Rates: The countywide multi-family average rental rate was $1,960per month, 5.7% higher than a year ago and 12.4% higher than two yearsago. The average rent for units built since the 2000’s was $2,359,compared to $1,787 for units built prior 2000. The average asking rent wasthe highest in North County Coastal ($2,376) followed by San DiegoCentral ($2,162), Interstate 15 Corridor ($2,056), Highway 78 Corridor($1,723), South County ($1,712) and East County ($1,612).6
Vacancy: The San Diego County multi-family vacancy rate decreased to3.72% from 4.08% six months ago. A vacancy rate below 5% is consideredto be a landlord’s market. Evaluating vacancy by submarket, the Highway78 Corridor recorded the lowest vacancy rate at 2.46% as of September2018, followed by South County at 2.56%. San Diego Central recorded thehighest vacancy rate at 5.77% followed by North County Coastal at 4.21%,East County at 2.81% and the Interstate 15 Corridor at 2.70%.Net Absorption: The San Diego County multi-family market absorbed1,104 units between March 2018 and September 2018, while only 802 newunits were delivered of which 386 have been absorbed and 416 remainvacant. Of the 40,297 units released since mid-1998, around 92% havebeen absorbed. Not all of these units remain in the rental inventory assome have been converted to for-sale units. Despite the well aboveaverage rental rates among newer projects, new units continue to leasequickly.6Sources: 1www.bls.gov 2 bea.gov GDP as of 2017. 3 Moody’s Analytics economy.com 4RCA. 5C.A.R. as of Q2 2018.6 MarketPointe Realty as of 9/2018.
SAN DIEGO MULTI-FAMILY
1%
2%
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5%
$1,000
$1,200
$1,400
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$2,200
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Asking Rent Vacancy
0
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19-Yr. avg. is 1,865 units absorbed
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EconomyThe San Diego employment market continued to record job growth, adding 26,900 jobs (+1.9%) year-over-year through September 2018.1 During the same time period, the unemployment rate decreased 50 basis points (bps), dropping to 3.2%. Also worth noting, the current rate is 270 bps below the 28-year average of 5.9%. All employment sectors are expected to grow at a combined growth rate of 1.9% in 2018 and 1.4% in 2019. San Diego’s economy of $231.8 billion2 as measured by gross regional product is forecasted to grow an additional 4.2% in 2018 and 2.9% in 2019, above its 10-year average of 2.6%.3
Market OverviewSales Activity: San Diego’s multi-family investment market sales volume for properties $5 million and greater surpassed $1 billion by the end of third quarter 2018, with over 87% of year-to-date sales volume occurring in the second and third quarters. Total transaction activity has been above the 16-year long-term annual average of $1.6 billion for the last three consecutive years. Multi-family product continues to be in high demand, although a lack of offerings is hindering sales volume from a notable annual increase. Private high net worth investors have been the leading buyers of multi-family assets for the last five consecutive years, a trend that is expected to continue.4Housing Affordability: The homeownership rate in the U.S. is at a multi-decade lows (64.3%), as renters stay renting longer and would-be buyers find it difficult to enter the market. Based on the 2018 survey published in the Zillow Housing Aspiration Report, 94% have a preference to own a home and a majority of American’s prefer to live in suburbs. However, in San Diego only 23% of households could afford to purchase the median priced home compared to 26% in California and 53% nationwide as of mid-2018. The most expensive metros are located in the Bay Area with affordability index being the lowest in San Francisco at 14 due to a median home price of $1.6 million compared to $645,000 in San Diego.5
Rental Rates: The countywide multi-family average rental rate was $1,960 per month, 5.7% higher than a year ago and 12.4% higher than two years ago. The average rent for units built since the 2000’s was $2,359, compared to $1,787 for units built prior 2000. The average asking rent was the highest in North County Coastal ($2,376) followed by San Diego Central ($2,162), Interstate 15 Corridor ($2,056), Highway 78 Corridor ($1,723), South County ($1,712) and East County ($1,612).6
Vacancy: The San Diego County multi-family vacancy rate decreased to 3.72% from 4.08% six months ago. A vacancy rate below 5% is considered to be a landlord’s market. Evaluating vacancy by submarket, the Highway 78 Corridor recorded the lowest vacancy rate at 2.46% as of September 2018, followed by South County at 2.56%. San Diego Central recorded the highest vacancy rate at 5.77% followed by North County Coastal at 4.21%, East County at 2.81% and the Interstate 15 Corridor at 2.70%.Net Absorption: The San Diego County multi-family market absorbed 1,104 units between March 2018 and September 2018, while only 802 new units were delivered of which 386 have been absorbed and 416 remain vacant. Of the 40,297 units released since mid-1998, around 92% have been absorbed. Not all of these units remain in the rental inventory as some have been converted to for-sale units. Despite the well above average rental rates among newer projects, new units continue to lease quickly.6
Sources: 1www.bls.gov 2 bea.gov GDP as of 2017. 3 Moody’s Analytics economy.com 4RCA. 5C.A.R. as of Q2 2018. 6 MarketPointe Realty as of 9/2018.
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San DiegoMulti-Family Fall 2018
MARKETBEAT
Unemployment Rate in ComparisonSAN DIEGO’S UNEMPLOYMENT RATE BELOW 28-YR. AVERAGE
Multi-Family Sales Transaction Volume ($M)87% OF 2018 MULTI-FAMILY SALES VOLUME CAME IN Q2 AND Q3
Interest Rates – U.S. Economic Forecast RATES PROJECTED TO SLOWLY INCREASE OVER NEXT 2 YEARS
2%
4%
6%
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14%
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San Diego California
San DiegoMulti-Family Fall 2018
MARKETBEAT
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Average Cap Rate in Comparison2017 SAN DIEGO CAP RATE BELOW THE 16-YR. AVERAGE OF 5.6%
Who is Buying Multi-Family Assets in San Diego? PRIVATE INVESTORS ARE THE LEADING BUYERS
San Diego Multi-Family Annual Loan Maturity ($M)OVER $1B IN MULTI-FAMILY LOANS WILL BE DUE IN 2019
Source: Wells Fargo U.S. Economic Forecast – 10/12/2018.
Source: BLS, (f) by CA Department of Finance as of 4/2018. Moody’s Analytics as of 8/2018.
Source: Trepp, LLC – 10/2018
Source: RCA, Sales $5M+ as of 10/4/2018. Rounded figures may not add up to 100%.
Source: Real Capital Analytics (RCA), Multi-Family sales $5M+ as of 10/4/2018.
28-Yr. avg. in San Diego is 6.0%
$1,066 $382 $275 $714 $514 $848 $1,013$0
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2019 2020 2021 2022 2023 2024 2025
25%
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24%23%
40%4% 4%
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41%54% 55%
72% 66%62%
1% 1% 2% 2% 1%
2014 2015 2016 2017 2018YTD 2018YTD
User/Other
Private
REIT/Listed
Institutional
Cross-Border $0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
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YTD
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YTD
San Diego U.S.
16-Yr. avg. is $1.6B
16-Yr. avg. is 5.6%
Source: Real Capital Analytics, Sales $5M+ as of 10/4/2018.
0%
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4Q17
4Q18
4Q19
4Q20
3 Mo. LIBOR Prime Rate 5 Yr. Note 10 Yr. Note
San Diego U.S.
Prepared By:
330WEST I STREETEncinitas, CA 92024
Offered By
WILL CREAGANMulti-Family Investments+1 [email protected] #00949450
CLARK RORBACHMulti-Family Investments+1 [email protected] #01888559
