Sumner 5 Unit1270 Sumner Ave, El Cajon CA 92020
Cleanest Units Available in San Diego County
O F F E R I N G M E M O R A N D U M
Sumner 5 UnitCONTENTS
Exclusively Marketed by:
Rob NorthrupLic: 00938658(619) [email protected]
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.
01 Executive Summary Investment Summary 4 Unit Mix Summary 5 Location Summary 6
02 Property Description Property Features 7 Parcel Map 8 Property Images 9
03 Rent Roll Rent Roll 13
04 Financial Analysis Income & Expense Analysis 14 Multiyear Cash Flow Assumptions 15 Cash Flow Analysis 16
05 Demographics Demographics 18 Demographic Charts 20
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 Best Homes Team and itshould not be made available to any other person or entity without the written consent of Best Homes Team. 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 thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Best HomesTeam. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level ofinterest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Best Homes Team has not made any investigation, and makes no warranty or representation withrespect 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 presenceor absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition orbusiness 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 reliable; however, Best Homes Team has not verified, and will not verify, any of the informationcontained herein, nor has Best Homes Team conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness ofthe 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 ofinvestigating the subject property.
Sumner 5 Unit Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT BEST HOMES TEAM FOR MORE DETAILS.Copyright © 2020 CREOP, LLC. All Rights Reserved.
Sumner 5 Unit Investment Summary | 04
OFFERING SUMMARY2286 GRAFTON STREET 1270 Sumner Ave
El Cajon CA 92020CALIFORNIA San DiegoMARKET El CajonSUBMARKET BostoniaBUILDING SF 4,375 SFLAND SF 15,232NUMBER OF UNITS 5YEAR BUILT 1991YEAR RENOVATED ongoingAPN 484-211-20-00OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARYOFFERING PRICE $1,499,900PRICE PSF $342.83PRICE PER UNIT $299,980OCCUPANCY 100.00 %NOI (CURRENT) $73,840NOI (Market) $76,494CAP RATE (CURRENT) 4.92 %CAP RATE (Market) 5.10 %GRM (CURRENT) 20.31GRM (Market) 12.93
PROPOSED FINANCINGProposedLOAN TYPE AmortizedDOWN PAYMENT $524,965LOAN AMOUNT $974,935INTEREST RATE 3.20 %LOAN TERMS 10 yearsANNUAL DEBT SERVICE $50,597LOAN TO VALUE 65 %AMORTIZATION PERIOD 30 Years
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2019 Population 31,661 151,528 287,3972019 Median HH Income $46,812 $58,722 $73,5592019 Average HH Income $68,651 $81,220 $95,501
Opportunity for increased Rents!
Rents are currently under market for this complex. FMV rents estimated at$1,850. Additional fees could be charged for (1) Covered Parking Spaces -5, and (2) Storage closets.
Sumner 5 Unit Unit Mix Summary | 05
Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly Income Market Rent Market Rent PSF Market Income
2 bd + 2 ba 5 875 $0 $0.00 $0 $1,850 $2.11 $9,250
Totals/Averages 5 875 $0 $0.00 $0 $1,850 $2.11 $9,250
Sumner 5 Unit Location Summary | 06
Sumner 5 Unit Property Features | 07
PROPERTY FEATURESNUMBER OF UNITS 5BUILDING SF 4,375LAND SF 15,232LAND ACRES .35YEAR BUILT 1991YEAR RENOVATED ongoing# OF PARCELS 1ZONING TYPE multi familyTOPOGRAPHY levelNUMBER OF STORIES 1NUMBER OF BUILDINGS 1LOT DIMENSION irregularNUMBER OF PARKING SPACES 9PARKING RATIO 1.8POOL / JACUZZI noneFIRE PLACE IN UNIT noneWASHER/DRYER complex
MECHANICALHVAC wallFIRE SPRINKLERS none known
UTILITIESWATER landlordTRASH landlordGAS TenantELECTRIC TenantRUBS none
CONSTRUCTIONFOUNDATION slabFRAMING WoodEXTERIOR wood/stuccoPARKING SURFACE concreteROOF comp - newerSTYLE ranchLANDSCAPING minimal
Sumner 5 Unit Parcel Map | 08
Sumner 5 Unit Property Images | 09
5 super clean, low maintenance units Appealing Facade = higher rents!
Light & Bright Spacious interiors! Modern, open concept floor plans!
Sumner 5 Unit Property Images | 10
Spacious Bedrooms! All 2 bath units
Each unit has private patio! Four Storage lockers - rent $30-$50 per montheach?
Sumner 5 Unit Property Images | 11
Interior of Storage Lockers 5 covered spaces - charge additional $10-$20per month for each covered space?
Outside Laundry Lease Generates $650approximate annually - could be higher
Low maintenance landscaping
Sumner 5 Unit Property Images | 12
Income opportunities Units numbered from Street to back of property
Note—unit 3 is currently occupied by a family member and owner. She will stay
on after closing at $1,850 per month, on a month-to-month rental.
Sumner 5 Unit Rent Roll | 13
Sumner 5 Unit Income & Expense Analysis | 14
INCOME CURRENT MARKET
Gross Potential Rent $72,840 $111,000
Parking $600
RUBS $1,800
Other Income $1,000 $2,570
Effective Gross Income $73,840 $115,970
Less: Expenses $39,476
Net Operating Income $73,840 $76,494
Annual Debt Service $50,597 $50,597
Debt Coverage Ratio 1.46 1.51
Cash Flow After Debt Service $23,243 $25,897
Principal Reduction $19,400 $19,400
Total Return 8.1 % $42,643 8.6 % $45,297
EXPENSES MARKET
Real Estate Taxes $3,936 $19,678
Insurance $600 $3,000
Management Fee $1,160 $5,798
Repairs & Maintenance $800 $4,000
Water / Sewer $720 $3,600
Landscaping $480 $2,400
Utilities $200 $1,000
Total Operating Expense $7,895 $39,476
Annual Debt Service $10,119 $50,597 $10,119 $50,597
% of EGI 34.04 %
Per Unit Per Unit
REVENUE ALLOCATIONCURRENT
DISTRIBUTION OF EXPENSESCURRENT
Sumner 5 Unit Multiyear Cash Flow Assumptions | 15
GLOBALOffering Price $1,499,900Analysis Period 5 year(s)
INCOMEGross Potential Rent 1.30 %
PROPOSED FINANCINGProposedLoan Type AmortizedDown Payment $524,965Loan Amount $974,935Interest Rate 3.20 %Loan Terms 10 yearsAnnual Debt Service $50,597Loan to Value 65 %Amortization Period 30 Years
Sumner 5 Unit Cash Flow Analysis | 16
CASH FLOWCalendar Year CURRENT Market Year 3 Year 4 Year 5Gross Potential RevenueGross Rental Income $72,840 $111,000 $112,443 $113,905 $115,386Parking $600 $600 $600 $600RUBS $1,800 $1,800 $1,800 $1,800Other Income $1,000 $2,570 $2,570 $2,570 $2,570Gross Potential Income $73,840 $115,970 $117,413 $118,875 $120,356Effective Gross Income $73,840 $115,970 $117,413 $118,875 $120,356Operating ExpensesReal Estate Taxes $19,678 $19,678 $19,678 $19,678Insurance $3,000 $3,000 $3,000 $3,000Management Fee $5,798 $5,798 $5,798 $5,798Repairs & Maintenance $4,000 $4,000 $4,000 $4,000Water / Sewer $3,600 $3,600 $3,600 $3,600Landscaping $2,400 $2,400 $2,400 $2,400Utilities $1,000 $1,000 $1,000 $1,000Total Operating Expense $39,476 $39,476 $39,476 $39,476Net Operating Income $73,840 $76,494 $77,937 $79,399 $80,880Annual Debt Service $50,597 $50,597 $50,597 $50,597 $50,597Cash Flow $23,243 $25,897 $27,340 $28,802 $30,283
Effective Gross Income vs Operating Expenses Cash Flow
Sumner 5 Unit Cash Flow Analysis | 17
Calendar Year CURRENT Market Year 3 Year 4 Year 5Financial MetricsCash on Cash Return b/t 4.43 % 4.93 % 5.21 % 5.49 % 5.77 %CAP Rate 4.92 % 5.10 % 5.20 % 5.29 % 5.39 %Debt Coverage Ratio 1.46 1.51 1.54 1.57 1.60Gross Multiplier (GRM) 20.31 12.93 12.77 12.62 12.46Loan to Value 64.96 % 63.70 % 62.40 % 60.92 % 59.50 %Breakeven Ratio 68.52 % 77.67 % 76.71 % 75.77 % 74.84 %Price / SF $342.83 $342.83 $342.83 $342.83 $342.83Price / Unit $299,980 $299,980 $299,980 $299,980 $299,980Income / SF $16.87 $26.50 $26.83 $27.17 $27.50
Sumner 5 Unit Demographics | 18
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 27,608 138,650 269,006
2010 Population 30,117 144,856 276,003
2019 Population 31,661 151,528 287,397
2024 Population 32,159 154,289 292,316
2019-2024: Population: Growth Rate 1.55 % 1.80 % 1.70 %
2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 1,463 5,191 7,566
$15,000-$24,999 1,317 5,205 7,628
$25,000-$34,999 1,315 5,090 8,006
$35,000-$49,999 1,472 6,629 11,241
$50,000-$74,999 1,881 9,196 17,352
$75,000-$99,999 1,068 6,735 14,357
$100,000-$149,999 1,114 7,792 18,714
$150,000-$199,999 547 3,690 9,543
$200,000 or greater 468 2,802 7,742
Median HH Income $46,812 $58,722 $73,559
Average HH Income $68,651 $81,220 $95,501
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 10,072 51,417 99,309
2010 Total Households 10,211 50,433 98,469
2019 Total Households 10,645 52,332 102,149
2024 Total Households 10,774 53,113 103,615
2019 Average Household Size 2.88 2.84 2.77
2000 Owner Occupied Housing 3,531 23,178 56,672
2000 Renter Occupied Housing 6,278 26,741 40,093
2019 Owner Occupied Housing 4,026 24,246 58,088
2019 Renter Occupied Housing 6,618 28,086 44,061
2019 Vacant Housing 422 2,393 4,256
2019 Total Housing 11,067 54,725 106,405
2024 Owner Occupied Housing 4,161 25,045 59,576
2024 Renter Occupied Housing 6,614 28,068 44,039
2024 Vacant Housing 441 2,506 4,442
2024 Total Housing 11,215 55,619 108,057
2019-2024: Households: Growth Rate 1.20 % 1.50 % 1.45 %
Source: esri
Sumner 5 Unit Demographics | 19
2019 POPULATION BY AGE 1 MILE 3 MILE 5 MILE
2019 Population Age 30-34 2,503 11,794 22,040
2019 Population Age 35-39 2,083 10,172 19,276
2019 Population Age 40-44 1,846 8,956 16,577
2019 Population Age 45-49 1,733 8,814 16,777
2019 Population Age 50-54 1,891 8,924 17,551
2019 Population Age 55-59 2,017 9,801 19,869
2019 Population Age 60-64 1,791 9,104 18,641
2019 Population Age 65-69 1,337 7,155 15,321
2019 Population Age 70-74 990 5,579 11,989
2019 Population Age 75-79 705 3,653 7,668
2019 Population Age 80-84 464 2,415 5,199
2019 Population Age 85+ 568 2,714 6,002
2019 Population Age 18+ 24,062 116,045 224,427
2019 Median Age 34 36 38
2019 INCOME BY AGE 1 MILE 3 MILE 5 MILE
Median Household Income 25-34 $53,614 $61,990 $73,894
Average Household Income 25-34 $72,757 $79,930 $89,154
Median Household Income 35-44 $55,075 $69,741 $87,784
Average Household Income 35-44 $79,901 $89,364 $105,245
Median Household Income 45-54 $57,577 $71,901 $90,696
Average Household Income 45-54 $81,823 $93,331 $112,316
Median Household Income 55-64 $47,589 $63,816 $81,782
Average Household Income 55-64 $66,379 $86,132 $105,434
Median Household Income 65-74 $35,707 $50,509 $62,115
Average Household Income 65-74 $52,471 $74,836 $89,384
Average Household Income 75+ $46,900 $58,382 $66,211
2024 POPULATION BY AGE 1 MILE 3 MILE 5 MILE
2024 Population Age 30-34 2,769 11,840 21,806
2024 Population Age 35-39 2,427 11,449 22,197
2024 Population Age 40-44 2,020 9,985 19,310
2024 Population Age 45-49 1,803 8,967 16,671
2024 Population Age 50-54 1,662 8,560 16,533
2024 Population Age 55-59 1,770 8,434 16,781
2024 Population Age 60-64 1,804 9,189 18,625
2024 Population Age 65-69 1,589 8,152 16,980
2024 Population Age 70-74 1,107 6,278 13,610
2024 Population Age 75-79 839 4,738 10,316
2024 Population Age 80-84 559 2,885 6,185
2024 Population Age 85+ 563 2,771 6,193
2024 Population Age 18+ 24,438 118,463 229,194
2024 Median Age 35 37 39
2024 INCOME BY AGE 1 MILE 3 MILE 5 MILE
Median Household Income 25-34 $57,927 $67,206 $78,077
Average Household Income 25-34 $80,251 $86,560 $96,652
Median Household Income 35-44 $61,670 $78,035 $98,647
Average Household Income 35-44 $89,744 $99,831 $119,073
Median Household Income 45-54 $61,145 $77,848 $98,905
Average Household Income 45-54 $90,022 $102,385 $123,456
Median Household Income 55-64 $51,881 $69,395 $88,957
Average Household Income 55-64 $74,656 $94,751 $116,967
Median Household Income 65-74 $38,498 $54,735 $69,488
Average Household Income 65-74 $58,595 $83,885 $102,078
Average Household Income 75+ $49,817 $66,752 $76,826
Sumner 5 Unit Demographic Charts | 20
1 Mile Radius 3 Mile Radius 5 Mile Radius
2019 Household Income
Sumner 5 Unit Demographic Charts | 21
2019 Household Occupancy - 1 Mile Radius
Average Income Median Income
2019 Household Income Average and Median
Sumner 5 Unit
Exclusively Marketed by:
Rob NorthrupLic: 00938658(619) [email protected]
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