1144 fresno street - loopnet · 2017-09-14 · insurance $2,546 utilities (separate meters for...
TRANSCRIPT
1144 Fresno Street
OFFERING MEMORANDUM
SAN DIEGO, CA
CONFIDENTIALITY AND DISCLAIMER
The 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.
SAN DIEGO, CA
1144 Fresno Street
Marcus & 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 YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.
NON-ENDORSEMENT NOTICE
1144 Fresno StreetSAN DIEGO, CA
PRICING AND FINANCIAL ANALYSIS
Price $4,800,000
Down Payment 38% / $1,824,000
Price/Unit $800,000
Price/SF $413.90
Number of Units 6
Rentable Square Feet 11,597
Number of Buildings 2
Number of Stories 3
Year Built 2017
Lot Size 10,062 SF
Vital Data
CAP Rate - Est. Current 4.15%
GRM - Est. Current 16.88
Net Operating Income - Est. Current $199,075
Net Cash Flow After Debt Service - Est. Current 1.9% / $33,890
Total Return - Est. Current 4.9% / $88,706
Unit Mix
No. of
Units
Unit
Type
Approx.
Square Feet
1 4 Bdr 3 Bath 2,028
1 4 Bdr 4 Bath 1,891
1 4 Bdr 3 Bath 2,025
1 4 Bdr 3 Bath 1,981
1 4 Bdr 4 Bath 1,781
1 4 Bdr 3 Bath 1,891
6 Total 11,597
Major Employers
Company Local
Employees
Univers of Calif San Diego Hs 5,000
Solar Turbines Incorporated 4,265
Naval Medical Center 4,250
Medical Center 4,000
Fleet Readiness Center SW 3,200
Elite Show Services Inc 3,123
United States Dept of Navy 3,053
Rady Chld Hospital-San Diego 3,041
Sharp Memorial Hospital 3,000
San Diego Police Department 2,789
McDonalds 2,327
County of San Diego 2,050
Demographics
1
PRICING AND FINANCIAL ANALYSIS
1144 Fresno StreetSAN DIEGO, CA
1-Mile 3-Miles 5-Miles
2014 Total
Population
17,996 142,374 456,260
2019 Total
Population
18,470 144,978 467,576
2014 Total
Households
7,772 65,217 209,996
2019 Total
Households
8,013 66,718 217,349
Median HH Income $56,055 $53,282 $51,642
Per Capita Income
(based on Total
Population)
$38,329 $37,240 $36,248
Average (Mean) HH
Income
$83,125 $78,886 $76,595
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
OFFERING SUMMARY
Existing Financing
Loan Type Free and Clear
Proposed Financing
First Trust Deed
Loan Amount $2,976,000
Loan Type Proposed New
Interest Rate 3.74%
Amortization 30 Years
Debt Coverage Ratio 1.21
2
PRICING AND FINANCIAL ANALYSIS
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
FINANCING
4B4B: 33%
4B3B: 67%
No. of
Units
Unit
Type
Approx.
Square FeetEst. Current Rents
Rent/
SF
Monthly
Income
1 4 Bdr 3 Bath 2,028 $3,950 $2.29 $3,950
1 4 Bdr 4 Bath 1,891 $3,950 $2.35 $3,950
1 4 Bdr 3 Bath 2,025 $3,950 $2.12 $3,950
1 4 Bdr 3 Bath 1,981 $3,950 $2.22 $3,950
1 4 Bdr 4 Bath 1,781 $3,950 $2.49 $3,950
1 4 Bdr 3 Bath 1,891 $3,950 $2.22 $3,950
6 TOTAL 11,597 $23,700
Unit Mix Unit Rent & Rent/SF
$0.00
$0.30
$0.60
$0.90
$1.20
$1.50
$1.80
$2.10
$2.40
$0
$400
$800
$1,200
$1,600
$2,000
$2,400
$2,800
$3,200
$3,600
$4,000
4B3B4B4B
4B3B4B3B
4B4B4B3B
3
PRICING AND FINANCIAL ANALYSIS
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
UNIT MIX
Address
1144 Fresno St
1146 Fresno St
1148 Fresno St
1150 Fresno St
1152 Fresno St
1154 Fresno St
Income Est. Current Per Unit
GROSS POTENTIAL INCOME $284,400 $47,400
Vacancy/Collection Allowance (GPR) 3.0% / $8,532 $1,422
EFFECTIVE GROSS INCOME $275,868 $45,978
Expenses
Real Estate Taxes (1.1743% + $46) $56,412 $9,402
Insurance $2,546 $424
Utilities (separate meters for water) $800 $133
Repairs & Maintenance $4,200 $700
Management Fee 4.0% / $11,035 $1,839
Reserves & Replacements $1,800 $300
TOTAL EXPENSES $76,793 $12,799
Expenses per SF $6.62
% of EGI 27.8%
NET OPERATING INCOME $199,075 $33,179
Total Number of Units: 6
Total Rentable Area: 11,597 SF
4
PRICING AND FINANCIAL ANALYSIS
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
INCOME & EXPENSES
No. of
Units
Unit
Type
Approx.
Square Feet
Est. Current Rents Rent/
SF
Monthly
Income
1 4 Bdr 3 Bath 2,028 $3,950 $2.29 $3,950
1 4 Bdr 4 Bath 1,891 $3,950 $2.35 $3,950
1 4 Bdr 3 Bath 2,025 $3,950 $2.12 $3,950
1 4 Bdr 3 Bath 1,981 $3,950 $2.22 $3,950
1 4 Bdr 4 Bath 1,781 $3,950 $2.49 $3,950
1 4 Bdr 3 Bath 1,891 $3,950 $2.22 $3,950
6 Total/Wtd. Avg. 11,597 $23,700
FIRST TRUST DEED
Loan Amount $2,976,000
Loan Type Proposed New
Interest Rate 3.74%
Amortization 30 Years
Annualized Operating Data
Income Est. Current
Gross Potential Rent $284,400
Gross Potential Income $284,400
Less: Vacancy/Deductions (GPR) 3.0% / $8,532
Effective Gross Income $275,868
Less: Expenses $76,793
Net Operating Income $199,075
Net Cash Flow Before Debt Service $199,075
Debt Service $165,185
Debt Coverage Ratio 1.21
Net Cash Flow After Debt Service 1.9% / $33,890
Principal Reduction $54,816
Total Return 4.9% / $88,706
1144 Fresno Street
San Diego, CA 92110
Price $4,800,000
Down Payment 38% / $1,824,000
Number of Units 6
Price/Unit $800,000
Rentable Square Feet 11,597
Price/SF $413.90
CAP Rate - Est. Current 4.15%
GRM - Est. Current 16.88
Year Built 2017
Lot Size 10,062 SF
Type of Ownership Fee Simple
Location
Financing
Expenses
Real Estate Taxes $56,412
Insurance $2,546
Utilities (separate meters for water) $800
Repairs & Maintenance $4,200
Management Fee $11,035
Reserves & Replacements $1,800
Total Expenses $76,793
Expenses/unit $12,799
Expenses/SF $6.62
% of EGI 27.84%
Scheduled Income
Loan information is time sensitive and subject to
change. Contact your local Marcus & Millichap
Capital Corporation representative.
5
PRICING AND FINANCIAL ANALYSIS
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
FINANCIAL OVERVIEW
Address
1144 Fresno St
1146 Fresno St
1148 Fresno St
1150 Fresno St
1152 Fresno St
1154 Fresno St
1144 Fresno StreetSAN DIEGO, CA
PROPERTY DESCRIPTION
Marcus & Millichap is pleased to present 1144 Fresno Street, a luxury multifamily investment opportunity located six blocks from the University of San Diego campus. This brand new construction custom buildout capitalizes on square footage with functional, multi-story floor plans. The property comprises six (6) upscale townhome units with a mix of four (4) 4-bedroom/3-bath units and two (2) 4-bedroom/4-bath units. The interiors feature designer upgrades such as KraftMaid cabinetry, quartz countertops, high-end appliances, and DuChâteau flooring. Additionally, each apartment home has its own rooftop deck offering sweeping views of Mission Bay, and direct access to a two-car garage. The units have no shared walls for maximum privacy, are each individually metered for water, gas, and electric, and have been built to condominium specifications making this an attractive investment for rental income or to sell as individual homes after subdividing the property.
The University of San Diego is a private Roman Catholic college with an enrollment of approximately 8,500 undergraduate and graduate students. The 180-acre campus is two miles north of downtown San Diego in the community of Linda Vista, and beaches, mountains, and the Mexican border are all within a short drive. Nearby Mission Valley is a main shopping, dining, and entertainment center in San Diego, situated amongst many comparable luxury apartment communities.
This offering is a rare opportunity to acquire an asset of this quality and in this location, that is always in high-demand by students and long-term residents alike.
Investment Highlights
■ Six (6) new construction, luxury apartment townhomeslocated six blocks from the University of San Diego
■ Four (4) 4BR/3BA units and two (2) 4BR/4BA units
■ Features include designer interior finishes, direct accesstwo-car garages, private rooftop decks, in-unitwashers/dryers, fire-sprinkler system throughout
■ Units individually metered for water, gas, and electric,and built to condo specifications
■ Easy access to Interstates 5 and 8; central locationoffers an easy commute to anywhere in the county
7
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
INVESTMENT OVERVIEW
The Mid-Coast Trolley will extend Blue Line Trolley service from Santa Fe Depot in Downtown San Diego to the University City community - considered San Diego's second downtown - serving major activity centers such as Old Town, Linda Vista, UC San Diego and Westfield UTC. Construction began in fall 2016 and service is anticipated to begin in 2021.
Freeways and arterials in the Mid-Coast Corridor are generally congested and traffic congestion is projected to increase more as the region grows. The population along the corridor is predicted to increase 19 percent by the year 2030, while employment is predicted to increase 12 percent.
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PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
MID-COAST CORRIDOR TRANSIT PROJECT
The Offering
Property Address 1144 Fresno Street
San Diego, CA 92110
Assessor's Parcel Number 436-593-11 and 12
Zoning RM-3-7
Site Description
Number of Units 6
Number of Buildings 2
Number of Stories 3
Year Built 2017
Rentable Square Feet 11,597
Lot Size 10,062 SF
Type of Ownership Fee Simple
9
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
PROPERTY SUMMARY
10
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
PROPERTY PHOTOS
11
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
PROPERTY PHOTOS
Local Map Regional Map
12
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
AREA MAPS
13
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
AERIAL PHOTO
14
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
PLAT MAP
15
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
FLOOR PLANS
16
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
FLOOR PLANS
17
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
FLOOR PLANS
18
PROPERTY DESCRIPTION
1144 Fresno StreetSAN DIEGO, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.
FLOOR PLANS
SAN DIEGO, CA
OFFERING MEMORANDUM
1144 Fresno Street
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