3047 44th Street, San Diego, CA, 92105

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3047 44th StreetCONTENTS

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 other conditions, 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 theproperty. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

01 Executive Summary Executive Summary 5

Unit Mix Summary 6

Location Summary 7

02 Property Description Property Features 9

Aerial Map 10

Common Amenities 11

Unit Amenities 12

Property Images 13

03 Financial Analysis Income & Expense Analysis 15

Multiyear Cash Flow Assumptions 16

Cash Flow Analysis 17

Disposition Sensitivity Analysis 19

04 Demographics Demographics 21

Demographic Charts 22

Exclusively Marketed by:

Adrian GonzalezSenior Associate 858.735-9977License # BRE# 01844618 gonzalez@scc1031.com

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from South Coast Commercial Inc. and it should not be made available to any other personor entity without the written consent of South Coast Commercial Inc..

By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such informationin the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offeringmemorandum. If you have no interest in the subject property, please promptly return this offering memorandum to South CoastCommercial Inc.. This offering memorandum has been prepared to provide summary, unverified financial and physical informationto 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. South Coast Commercial Inc. hasnot made any investigation, and makes no warranty or representation with respect to the income or expenses for the subjectproperty, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence of absence of contaminating substances, PCBs or asbestos, the compliance with local, state andfederal regulations, the physical condition of the improvements thereon, or 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 offering memorandum has been obtained from sources we believe reliable; however, SouthCoast Commercial Inc. has not verified, and will not verify, any of the information contained herein, nor has South CoastCommercial Inc. conducted any investigation regarding these matters and makes no warranty or representation whatsoeverregarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verifyall of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating thesubject property.

3047 44th Street Confidentiality and Disclaimer | 03

CONFIDENTIALITY AND DISCLAIMER:

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONTACT SOUTH COAST COMMERCIAL INC. FOR MORE DETAILS.

Copyright © 2018 CREOP, LLC. All Rights Reserved.

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Executive Summary

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Unit Mix Summary

Location Summary

3047 44th Street Executive Summary | 05

OFFERING SUMMARY

ADDRESS 3047 44th Street San Diego CA92105

COUNTY San Diego

MARKET San Diego

SUBMARKET City Heights

BUILDING SF

LAND SF 6,250NUMBER OF UNITS 4YEAR BUILT 1940OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARY

OFFERING PRICE $949,000

PRICE PSF

PRICE PER UNIT $237,250OCCUPANCY 100 %NOI (CURRENT) $39,508

NOI (Pro Forma) $60,348CAP RATE (CURRENT) 4.1 %CAP RATE (Pro Forma) 6.3 %

GRM (CURRENT) 14.41

GRM (Pro Forma) 11.3

PROPOSED FINANCING

LOAN TYPE Fully Amortized

DOWN PAYMENT $400,000LOAN AMOUNT $549,000

INTEREST RATE 4.750 %

ANNUAL DEBT SERVICE $41,042

LOAN TO VALUE 75 %

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE

2017 Population 43,254 292,370 670,084

2017 Median HH Income $38,650 $46,187 $53,814

2017 Average HH Income $54,229 $66,209 $76,775

We are pleased to present 44th St 4plex. The property consistsof a lovely 2Bedroom/1Bath house and triplex in back that are (2)1Bedrooms and a 3Bedroom/2Bath upstairs. All units have beencompletely renovated throughout the interiors and exterior. Thehouse features a large floor plan with new kitchen, newcabinetry, new appliances, new flooring and new bathroom. Theproperty is centrally located and sits at the end of a quiet cul-de-sac overlooking canyon views. It is close proximities to majorfreeways, recreation, transportation and schooling.This is aperfect opportunity for someone looking to invest into arenovated property and raise rents without doing much.

Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly

IncomeMarket Rent Market Rent

PSFMarket Income

1 bd / 1 ba 2 $825 $1,650 $1,295 $2,590

2 bd / 1 ba 1 $1,850 $1,850 $1,995 $1,995

3 bd / 2 ba 1 $1,550 $1,550 $2,100 $2,100

Totals/Averages 4 $1,263 $5,050 $1,671 $6,685

3047 44th Street Unit Mix Summary | 06

3047 44th Street Location Summary | 07

City Heights is large and diffuse, with many subneighborhoods. The neighborhood is divided intotwo pieces by Fairmount Avenue: City Heights Eastand City Heights West. The neighborhood isbounded by Interstate 805 to the west, El CajonBoulevard to the north, 54th Street to the east, andHome Avenue/Euclid Avenue/Chollas Parkway tothe southeast.

"Downtown" City Heights is generally regarded asaround Fairmount and University Avenues.

The neighborhood is further divided into sixteensub-neighborhoods: Teralta East, Teralta West,Corridor, Cherokee Point, Colina Park, Castle,Fairmount Park, Fairmount Village, Fox Canyon,Islenair (a city-designated historic district), ChollasCreek, Swan Canyon, Azalea Park, Hollywood Park,Ridgeview, and Bayridge.

Regional Map

Locator Map

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Aerial Map

Parcel Map

Additional Maps

Amenities

Property Images

3047 44th Street Property Features | 09

Site Description

NUMBER OF UNITS 4BUILDING SF

LAND SF 6,250YEAR BUILT 1940# OF PARCELS 1

NUMBER OF STORIES 2

NUMBER OF BUILDINGS 1

3047 44th Street Aerial Map | 10

3047 44th Street Property Images | 11

centrally located storage units for additional income

separate 3bed/1bath house common area

3047 44th Street Property Images | 12

Renovated Interiors

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Financial Analysis

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Multiyear Cash Flow Assumptions

Multiyear Cash Flow Projections

Disposition Sensitivity Analysis

3047 44th St Cash Flow Analysis

3047 44th Street Income & Expense Analysis | 15

INCOME CURRENT PRO FORMA

Gross Potential Rent $60,600 $80,220

Storage $1,920

Laundry $1,800 $1,800

Gross Potential Income $62,400 $83,940

Less: General Vacancy $1,818 $2,407

Effective Gross Income $60,582 $81,533

Less: Expenses $21,074 $37,374

Net Operating Income $39,508 $44,159

Annual Debt Service $41,042 $41,042

Debt Coverage Ratio 0.96 1.08

Cash Flow After Debt Service ($1,534) $3,118

Principal Reduction $10,667 $10,667

Total Return 4.1 % $9,133 6.1 % $13,784

EXPENSES CURRENT PROFORMA

Water & Sewer $312 $3,120 $312 $3,120

Landscaping $77 $768 $77 $768

Trash Removal $50 $500 $1,680 $16,800

Pest Control, Maintenance $34 $336 $34 $336

Management (Off Site) $312 $3,120 $312 $3,120

Licenses & Fees $6 $60 $6 $60

Maintenance $200 $2,000 $200 $2,000

Insurance $100 $1,000 $100 $1,000

Taxes $1,017 $10,170 $1,017 $10,170

Total Operating Expense $2,107 $21,074 $3,737 $37,374

Expense / SF $1.96 $3.48

% of EGI 34.79 % 45.84 %

Per Unit Per Unit

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

3047 44th Street Multiyear Cash Flow Assumptions | 16

GLOBAL

Sale Price $900,000

INCOME

Gross Potential Rent 3.00 %

3.00 %

PROPOSED FINANCING

Loan Type Fully Amortized

Down Payment $400,000Loan Amount $549,000

Interest Rate 4.75 %Annual Debt Service $41,042

Loan to Value 58 %

3047 44th Street Cash Flow Analysis | 17

CASH FLOW

Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $60,600 $80,220 $82,627 $85,105 $87,659 $90,288 $92,997 $95,787 $98,660 $101,620

Storage $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920

Laundry $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800

Gross Potential Income $62,400 $83,940 $86,347 $88,825 $91,379 $94,008 $96,717 $99,507 $102,380 $105,340

General Vacancy $1,818 $2,407 $2,479 $2,553 $2,630 $2,709 $2,790 $2,874 $2,960 $3,049

Effective Gross Income $60,582 $81,533 $83,868 $86,272 $88,749 $91,300 $93,927 $96,633 $99,421 $102,292

Operating ExpensesWater & Sewer $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120

Landscaping $768 $768 $768 $768 $768 $768 $768 $768 $768 $768

Trash Removal $500 $16,800 $16,800 $16,800 $16,800 $16,800 $16,800 $16,800 $16,800 $16,800

Pest Control, Maintenance $336 $336 $336 $336 $336 $336 $336 $336 $336 $336

Management (Off Site) $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120

Licenses & Fees $60 $60 $60 $60 $60 $60 $60 $60 $60 $60

Maintenance $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Taxes $10,170 $10,170 $10,170 $10,170 $10,170 $10,170 $10,170 $10,170 $10,170 $10,170

Total Operating Expense $21,074 $37,374 $37,374 $37,374 $37,374 $37,374 $37,374 $37,374 $37,374 $37,374

Net Operating Income $39,508 $44,159 $46,494 $48,898 $51,375 $53,926 $56,553 $59,259 $62,047 $64,918Annual Debt Service $41,042 $41,042 $41,042 $41,042 $41,042 $41,042 $41,042 $41,042 $41,042 $41,042

Cash Flow ($1,534) $3,118 $5,452 $7,856 $10,333 $12,884 $15,511 $18,218 $21,005 $23,876

Effective Gross Income vs Operating Expenses Cash Flow

3047 44th Street Cash Flow Analysis | 18

Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCAP Rate 4.1 % 4.91 % 5.17 % 5.43 % 5.71 % 5.99 % 6.28 % 6.58 % 6.89 % 7.21 %

Debt Coverage Ratio 0.96 1.08 1.13 1.19 1.25 1.31 1.38 1.44 1.51 1.58

Operating Expense Ratio 34.78 % 45.83 % 44.56 % 43.32 % 42.11 % 40.93 % 39.79 % 38.67 % 37.59 % 36.53 %

Gross Multiplier (GRM) 14.42 10.72 10.42 10.13 9.85 9.57 9.31 9.04 8.79 8.54

Loan to Value 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 %

Breakeven Ratio 102.53 % 96.18 % 93.50 % 90.89 % 88.36 % 85.89 % 83.49 % 81.15 % 78.87 % 76.66 %

Price / SF

Price / Unit $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000

Expense / SF

Income / SF $6 $8 $8 $8 $8 $9 $9 $9 $9 $10

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Demographic Charts

3047 44th Street Demographics | 21

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 41,952 286,754 606,762

2010 Population 41,343 278,135 625,084

2017 Population 43,254 292,370 670,084

2022 Population 44,633 302,590 702,861

2017 African American 5,057 37,359 72,190

2017 American Indian 360 2,329 5,211

2017 Asian 7,503 32,070 84,373

2017 Hispanic 25,916 141,985 282,361

2017 White 13,558 129,657 331,057

2017 Other Race 14,518 73,685 135,278

2017 Multiracial 2,102 15,886 38,073

2017-2022: Population: Growth Rate 3.15 % 3.45 % 4.80 %

2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 2,061 15,588 33,227

$15,000-$24,999 1,857 13,266 25,972

$25,000-$34,999 1,568 11,332 23,005

$35,000-$49,999 2,104 15,522 32,598

$50,000-$74,999 1,892 18,105 42,187

$75,000-$99,999 1,155 11,778 29,808

$100,000-$149,999 1,052 11,445 33,767

$150,000-$199,999 357 4,023 13,091

$200,000 or greater 256 4,165 13,737

Median HH Income $38,650 $46,187 $53,814

Average HH Income $54,229 $66,209 $76,775

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 12,341 105,080 225,596

2010 Total Households 11,786 100,289 229,171

2017 Total Households 12,300 105,224 247,393

2022 Total Households 12,661 108,813 261,305

2017 Average Household Size 3.50 2.74 2.60

2000 Owner Occupied Housing 3,827 33,449 84,149

2000 Renter Occupied Housing 8,043 67,998 132,815

2017 Owner Occupied Housing 3,697 33,480 90,082

2017 Renter Occupied Housing 8,604 71,745 157,311

2017 Vacant Housing 624 6,196 17,180

2017 Total Housing 12,924 111,420 264,573

2022 Owner Occupied Housing 4,222 37,671 100,683

2022 Renter Occupied Housing 8,439 71,142 160,622

2022 Vacant Housing 643 6,378 17,032

2022 Total Housing 13,304 115,191 278,337

2017-2022: Households: Growth Rate 2.90 % 3.35 % 5.50 %

Source: esri

3047 44th Street Demographic Charts | 22

1 Mile Radius 3 Mile Radius 5 Mile Radius

2017 Household Income

1 Mile Radius 3 Mile Radius 5 Mile Radius

2017 Population by Race

3047 44th Street Demographic Charts | 23

2017 Household Occupancy - 1 Mile Radius

Average Income Median Income

2017 Household Income Average and Median

3047 44th Street

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Exclusively Marketed by:

Adrian GonzalezSenior Associate 858.735-9977License # BRE# 01844618 gonzalez@scc1031.com