1946 reed avenue - pacific beach - costar...

SAN DIEGO, CA

1946 Reed Avenue -Pacific Beach

OFFERING MEMORANDUM

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

1946 Reed Avenue - Pacific Beach

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

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

1946 Reed Avenue - Pacific Beach

1946 Reed Avenue - Pacific BeachSAN DIEGO, CA

PRICING AND FINANCIAL ANALYSIS

Price $1,475,000

Down Payment 40% / $590,000

Price/Unit $368,750

Price/SF $606.50

Number of Units 4

Rentable Square Feet 2,432

Year Built 1952

Lot Size 6247

Vital Data

CAP Rate - Current 3.03%

GRM - Current 20.15

Net Operating Income - Current $44,641

Net Cash Flow After Debt Service - Current -1.0% / -$6,061

Total Return - Current 1.6% / $9,524

CAP Rate - Pro Forma 4.45%

GRM - Pro Forma 15.36

Net Operating Income - Pro Forma $65,651

Net Cash Flow After Debt Service - Pro Forma 2.5% / $14,949

Total Return - Pro Forma 5.2% / $30,535

Unit Mix

No. of

Units

Unit

Type

Approx.

Square Feet

4 2 Bdr 1 Bath 608

4 Total 2,432

Major Employers

Company Local

Employees

University of Calif San Diego 5,000

Cricket Stx 4,000

Medical Center 4,000

Rady Children's Hospital-San Diego 3,041

Sharp Memorial Hospital 3,000

McDonald's 2,142

University of San Diego 1,582

Caltrans District 11 1,500

Kleinfelder Associates 1,500

San Diego Mesa College 1,500

Leidos Inc 1,120

Maintenance Unit 1,000

Demographics

1



1-Mile 3-Miles 5-Miles

2014 Total

Population

28,970 108,510 305,977

2019 Total

Population

29,029 108,600 309,640

2014 Total

Households

14,975 49,405 133,760

2019 Total

Households

15,074 49,610 135,709

Median HH Income $56,654 $65,510 $61,492

Per Capita Income

(based on Total

Population)

$41,563 $44,089 $40,785

Average (Mean) HH

Income

$80,082 $95,883 $91,847

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 Y0091197 Marcus &Millichap. All rights reserved.

OFFERING SUMMARY

30 Year Fixed

Existing Financing

Loan Type Other

Interest Rate 4.000%

Amortization 30

Proposed Financing

First Trust Deed

Loan Amount $885,000

Loan Type Proposed New

Interest Rate 4.0%

Amortization 30 Years

Debt Coverage Ratio 0.88

2




FINANCING

2B1B: 100%

No. of

Units

Unit

Type

Approx.

Square Feet

Current

Rents

Rent/

SF

Monthly

Income

Pro Forma

Rents

Rent/

SF

Monthly

Income

4 2 Bdr 1 Bath 608 $1,525 $2.18 $6,100 $2,000 $2.86 $8,000

4 TOTAL 2,432 $6,100 $8,000

Unit Mix Unit Rent & Rent/SF

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2B1B

3




UNIT MIX

Unit

Number

Unit

Type

Unit

SF

Current

Rent

Rent/

SF

Asking

Rent

Rent/

SF

Parking Storage

1946 2 Bdr 1 Bath 608 $1,650 $2.71 $2,000 $3.29 yes yes

1950 2 Bdr 1 Bath 608 $1,650 $2.71 $2,000 $3.29 yes yes

1948 2 Bdr 1 Bath 608 $1,400 $2.30 $2,000 $3.29 yes yes

1952 2 Bdr 1 Bath 608 $1,400 $2.30 $2,000 $3.29 yes yes

TOTAL VACANT $0 $0

4 TOTAL OCCUPIED 2,432 $6,100 $8,000

4 TOTAL 2,432 $6,100 $8,000

4




RENT ROLL

Income Current Per Unit Pro Forma Per Unit

GROSS POTENTIAL INCOME $73,200 $18,300 $96,000 $24,000

Vacancy/Collection Allowance (GPR) 3.0% / $2,196 $549 3.0% / $2,880 $720

EFFECTIVE GROSS INCOME $71,004 $17,751 $93,120 $23,280

Expenses

Real Estate Taxes $17,321 $4,330 $17,321 $4,330

Insurance $972 $243 $972 $243

Utilities $2,520 $630 $2,520 $630

Repairs & Maintenance $2,000 $500 $2,000 $500

Management Fee 5.0% / $3,550 $888 5.0% / $4,656 $1,164

TOTAL EXPENSES $26,363 $6,591 $27,469 $6,867

Expenses per SF $10.84 $11.29

% of EGI 37.1% 29.5%

NET OPERATING INCOME $44,641 $11,160 $65,651 $16,413

Total Number of Units: 4

Total Rentable Area: 2,432 SF

5




INCOME & EXPENSES

No. of

Units

Unit

Type

Approx.

Square Feet

Current

Rents

Rent/

SF

Monthly

Income

Pro Forma

Rents

Rent/

SF

Monthly

Income

4 2 Bdr 1 Bath 608 $1,525 $2.18 $6,100 $2,000 $2.86 $8,000

4 Total/Wtd. Avg. 2,432 $6,100 $8,000

FIRST TRUST DEED

Loan Amount $885,000

Loan Type Proposed New

Interest Rate 4.0%

Amortization 30 Years

Annualized Operating Data

Income Current Pro Forma

Gross Potential Rent $73,200 $96,000

Gross Potential Income $73,200 $96,000

Less: Vacancy/Deductions (GPR) 3.0% / $2,196 3.0% / $2,880

Effective Gross Income $71,004 $93,120

Less: Expenses $26,363 $27,469

Net Operating Income $44,641 $65,651

Net Cash Flow Before Debt Service $44,641 $65,651

Debt Service $50,702 $50,702

Debt Coverage Ratio 0.88 1.29

Net Cash Flow After Debt Service -1.0% / -$6,061 2.5% / $14,949

Principal Reduction $15,585 $15,585

Total Return 1.6% / $9,524 5.2% / $30,535

1946 Reed Avenue - Pacific

San Diego, CA 92109

Price $1,475,000

Down Payment 40% / $590,000

Number of Units 4

Price/Unit $368,750


Price/SF $606.50

CAP Rate - Current 3.03%

CAP Rate- Pro Forma 4.45%

GRM - Current 20.15

GRM- Pro Forma 15.36

Year Built 1952

Lot Size 6247

Type of Ownership Fee Simple

Location

Financing

Expenses

Real Estate Taxes $17,321 $17,321

Insurance $972 $972

Utilities $2,520 $2,520

Repairs & Maintenance $2,000 $2,000

Management Fee $3,550 $4,656

Total Expenses $26,363 $27,469

Expenses/unit $6,591 $6,867

Expenses/SF $10.84 $11.29

% of EGI 37.13% 29.50%

Scheduled Income

Loan information is time sensitive and subject to

change. Contact your local Marcus & Millichap

Capital Corporation representative.

6




FINANCIAL OVERVIEW


PROPERTY DESCRIPTION

Marcus and Millichap is pleased to offer 4 units in Pacific Beach for sale. The property consists of four 2 bedroom one bath units in excellent condition in the prime rental market of pacific beach. All units have newer carpets throughout, parking and storage. There is on site laundry and two garages that have been converted to storage. The rents are under market and can be increased without putting more money into the property, as the units are already remodeled and in good condition

Investment Highlights

■ All 2 bedroom units

■ Garages

■ Parking

■ On site Laundry

■ Storage

■ Remodeled units

■ Newer Carpets throughout each unit

8




INVESTMENT OVERVIEW

Marcus and Millichap is pleased to offer 4 units in Pacific Beach for sale. The property consists of four 2 bedroom one bath units in excellent condition in the prime rental market of pacific beach. All units have newer carpets throughout, parking and storage. There is on site laundry and two garages that have been converted to storage. The rents are under market and can be increased without putting more money into the property, as the units are already remodeled and in good condition

9




INVESTMENT OVERVIEW

The Offering

Property Address 1946 Reed Avenue - Pacific Beach

San Diego, CA 92109

Site Description

Number of Units 4

Year Built 1952


Lot Size 6247

Type of Ownership Fee Simple

Parking 4 spaces and garages

10




PROPERTY SUMMARY

11




PROPERTY PHOTOS

Local Map Regional Map

12




AREA MAPS

13




AERIAL PHOTO

14




SITE PLAN

15




FLOOR PLANS


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 27,595 103,852 286,824

2010 Population 27,434 103,928 293,113

2014 Population 28,970 108,510 305,977

2019 Population 29,029 108,600 309,640

2000 Households 14,305 47,990 126,787

2010 Households 14,121 47,001 127,079

2014 Households 14,975 49,405 133,760

2019 Households 15,074 49,610 135,709

2014 Average Household Size 1.92 2.14 2.22

2014 Daytime Population 7,445 33,318 160,451

2000 Owner Occupied Housing Units 24.94% 45.68% 44.77%

2000 Renter Occupied Housing Units 68.97% 48.40% 49.97%

2000 Vacant 6.09% 5.92% 5.26%



2014 Vacant 2.27% 3.80% 3.26%



2019 Vacant 2.10% 3.69% 3.13%

$ 0 - $14,999 10.2% 9.5% 10.4%

$ 15,000 - $24,999 8.5% 7.8% 9.0%

$ 25,000 - $34,999 10.5% 8.7% 8.4%

$ 35,000 - $49,999 15.2% 13.0% 13.4%

$ 50,000 - $74,999 17.8% 16.8% 16.9%

$ 75,000 - $99,999 14.1% 13.5% 13.3%

$100,000 - $124,999 9.1% 9.6% 9.2%

$125,000 - $149,999 5.2% 6.5% 5.8%

$150,000 - $199,999 5.1% 7.3% 6.3%

$200,000 - $249,999 1.4% 2.5% 2.7%

$250,000 + 3.0% 4.8% 4.6%

2014 Median Household Income $56,654 $65,510 $61,492

2014 Per Capita Income $41,563 $44,089 $40,785

2014 Average Household Income $80,082 $95,883 $91,847

Demographic data © 2012 by Experian.

17




DEMOGRAPHIC REPORT

Geography: 5 miles

Population

In 2014, the population in your selected geography is 305,976. The population has changed by 6.67% since 2000. It is estimated

that the population in your area will be 309,639 five years from now, which represents a change of 1.19% from the current year. The

current population is 51.11% male and 48.88% female. The median age of the population in your area is 34.8, compare this to the

Entire US average which is 37.3. The population density in your area is 3,896.28 people per square mile.

Households

There are currently 133,760 households in your selected geography. The number of households has changed by 5.50% since 2000.

It is estimated that the number of households in your area will be 135,709 five years from now, which represents a change of 1.45%

from the current year. The average household size in your area is 2.21 persons.

Income

In 2014, the median household income for your selected geography is $61,491, compare this to the Entire US average which is

currently $51,972. The median household income for your area has changed by 27.71% since 2000. It is estimated that the median

household income in your area will be $72,710 five years from now, which represents a change of 18.24% from the current year.

The current year per capita income in your area is $40,784, compare this to the Entire US average, which is $28,599. The current

year average household income in your area is $91,846, compare this to the Entire US average which is $74,533.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 74.27% White, 2.88% Black, 0.33% Native American and 10.77%

Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and

5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 16.86% of the current year

population in your selected area. Compare this to the Entire US average of 17.13%.

Housing

In 2000, there were 59,910 owner occupied housing units in your area and there were 66,876 renter occupied housing units in your

area. The median rent at the time was $830.

Employment

In 2014, there are 160,450 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed

that 73.72% of employees are employed in white-collar occupations in this geography, and 26.14% are employed in blue-collar

occupations. In 2014, unemployment in this area is 6.14%. In 2000, the average time traveled to work was 21.9 minutes.


18




SUMMARY REPORT

Number of people living in a given area per square mile.


19




POPULATION DENSITY

The number of people employed in a given area per square mile.


20




EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a

single housing unit.


21




AVERAGE HOUSEHOLD INCOME

SAN DIEGO, CA

OFFERING MEMORANDUM

1946 Reed Avenue - PacificBeach

Offices Throughout the U.S. and Canada

www.MarcusMillichap.com

Presented By:

Cody CannonBroker

Marcus & MillichapOntario Office

Tel: (909) 456-3400Fax: (909) 456-3410

[email protected]

1946 reed avenue - pacific beach - costar...

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