ROBERT VALLERA CCIMSenior Vice President/PartnerLic. #00818308 | 858.458.3337 | [email protected]
PRIDE OF OWNERSHIP FOURPLEX IN HIGHLY DESIRABLE NORTH PACIFIC BEACH
FOURPLEXBaja La Jolla5228 Cass Street, San Diego, CA 92109
2 | Offering Memorandum
DISCLAIMER
This Offering Memorandum (this “Memorandum”) is given to you for the sole purpose of evaluating the possible acquisition of 5228 Cass Street, San Diego, CA 92109 (the “Property”), and is not to be used for any other purpose without the prior written consent of Owner or Voit Real Estate Services (“Broker”).
This Memorandum was prepared by the Broker based on information supplied by the Owner and the Broker. It contains selected information about the Property and the real estate market but does not contain all the information necessary to evaluate the acquisition of the Property. The financial projections contained herein (or in any other Evaluation Material, including any online drop boxes) are for general reference only. They are based on assumptions relating to the general economy and local competition, and other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents.
While the information contained in this Memorandum and any other Evaluation Material is believed to be reliable, neither Broker nor Owner guarantees its accuracy or completeness. Because of the foregoing, a prospective purchaser must make its own independent investigations, projections and conclusions regarding the acquisition of the Property without reliance on this Memorandum or any other Evaluation Material. Although additional Evaluation Material, which may include engineering, environmental or other reports, may be provided to qualified parties as marketing proceeds, prospective purchasers should seek advice from their own attorneys, accountants, and engineering and environmental experts.
Owner expressly reserves the right, at its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time with or without written notice. Owner shall have no legal commitment or obligations to any prospective purchaser unless and until a written sale agreement has been fully executed, delivered and approved by Owner and any conditions to Owner’s obligations therein have been satisfied or waived.
Owner has retained Broker, Voit Real Estate Services, as its exclusive broker. Purchaser will be responsible for any and all commissions, fees and other compensation to be paid to Purchasers Broker. Broker is not authorized to make any representation or agreement on behalf of Owner.
This Memorandum is the property of Owner and Broker and may be used only by parties approved by Owner and Broker.
ROBERT VALLERA CCIMSenior Vice President/PartnerLic. #00818308 | [email protected]
AGATE STREET
Offering Memorandum | 3
TABLE OF CONTENTS
THE OFFERING
EXECUTIVE SUMMARYProperty Description
PROPERTY DETAILSDesign and AmenitiesOperating Pro-Forma
SITE DETAILSParcel MapNeighborhood AmenitiesRegional Map
SALE COMPARABLES
MARKET OVERVIEWAbout Pacific BeachMid-Coast TransitDemographics
TURQUOISE STREET
CASS STREET
4 | Offering Memorandum
VALLERA APARTMENT ADVISORS is pleased
to present this opportunity to acquire a pride of
ownership fourplex located on the far northern end of
Pacific Beach, just two blocks south of La Jolla.
Constructed in 1986, the building features all two-
bedroom, two bath units with in-unit laundry hookups,
fireplaces and their own private garages. The two
second-story units offer spacious ocean and sunset
view decks.
The location enjoys a WalkScore of 81, with a
supermarket, an abundance of dining venues
and Tourmaline Beach within walking distance. In
addition, the apartments are located within the La
Jolla public school boundaries.
The property has been held by the same owner for
over twenty years. It is now being offered to the
market as their estate is being settled.
THE OFFERING
Offering Memorandum | 5
6 | Offering Memorandum
LOCATION: 5228 Cass Street, San Diego, CA 92109
ASSESSOR PARCEL: 415-172-12-00
UNIT MIX: Four 2 Bedroom: 2 Bath Units
BUILDING SIZE: ±4,110 SF (As Per Public Record)
LOT SIZE: ±5,892 Square Feet (±0.14 Acres)
PRICE: $2,650,000
PRICE/SF: $645 Per Square Foot
YEAR BUILT: 1986
CONFIGURATION: A Single Two-story Fourplex Building
PARKING: Four Single-car Garages and 1 Open Space
CONSTRUCTION: Wood Frame with Stucco and Wood Siding, on Slab with Pitched Comp Shingle Roof
WALK SCORE: 81
SCHOOL BOUNDARIES: Bird Rock Elementary, Muirlands Middle, La Jolla High
EXECUTIVE SUMMARY
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8 | Offering Memorandum
All units are 2 bedroom/2 bath
High, open beam ceilings in upstairs units
In-unit washer/dryer hookups
Air conditioning and forced air heating
Walk in closets
Built in microwave ovens
Trash compactors
Ceiling fans
Dishwasher
Wood burning fireplace
Second floor units have decks off of living room with beautiful ocean, Mission Bay and sunset views
Private entry to all units
Single car garages with an additional on-premise reserved parking spot
Located in a quiet residential neighborhood north of Turquoise Street and two blocks south of La Jolla
DESIGN & AMENITIES
INTERIOR FEATURES
EXTERIOR FEATURES
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RENT ROLL
CURRENT PROJECTED
UNIT 1 $2,425 $2,750
UNIT 2 $2,275 $2,750
UNIT 3 $2,700 $2,995
UNIT 4 $2,950 $2,995
MONTHLY $10,350 $11,490
ANNUAL $124,200 $137,880
Offering Memorandum | 17
OPERATING EXPENSESCurrentMonthly
CurrentAnnual
ProjectedMonthly
ProjectedAnnual Expense Notes
Gross Scheduled Income $10,350 $124,200 $11,490 $137,880
Vacancy and Collection Loss (4%) ($414) ($4,968) ($460) ($5,515) Assumes 2 turnovers per year
Gross Operating Income $9,936 $119,232 100.0% $11,030 $132,365 100.0%
Operating Expenses - General Expenses: Property Tax (1.1%) $2,429 $29,148 24.4% $2,429 $29,148 22.0% Based on full price Property Insurance $191 $2,292 1.9% $153 $1,836 1.4% Current charges Property Management $596 $7,154 6.0% $662 $7,942 6.0% No on-site management Utility Expenses: Gas and Electric $20 $240 0.2% $20 $240 0.2% Current charges Water & Sewer $300 $3,600 3.0% $300 $3,600 2.7% Current charges Trash Pickup $0 $0 0.0% $0 $0 0.0% City trash collection Maintenance Expenses: Supplies $298 $3,577 3.0% $331 $3,971 3.0% Projection Repairs $397 $4,769 4.0% $441 $5,295 4.0% Projection Gardening & Grounds $90 $1,080 0.9% $90 $1,080 0.8% Current charges
Total Operating Expenses ($4,322) ($51,860) -43.5% ($4,426) ($53,111) -40.1%
Net Operating Income $5,614 $67,372 56.5% $6,604 $79,253 59.9% Mortgage ($1.06M, 4.25%, 30 yr.) ($5,215) ($62,580) ($5,215) ($62,580)
Spendable Income $399 $4,792 $1,389 $16,673
Loan Amortization $1,486 $17,832 $1,486 $17,832
Total Gain before Appreciation $1,885 $22,624 $2,875 $34,505
18 | Offering Memorandum
415-172-12-00PARCEL MAP
Offering Memorandum | 19
NEIGHBORHOOD AMENITIES
This property is within the boundaries of La Jolla schools including:
» Bird Rock Elementary
» Muirlands Middle School
» La Jolla High School
» Cafe Europa, Turquoise Street
» Brick & Bell, Cass Street
» Gelson’s Market, Turquoise Street
» Cass Street Bar and Grill, Cass Street
» The Fishery, Cass Street
» Latitude 32, Cass Street
» French Gourmet, Turquoise Street
LA JOLLA SCHOOLS
CAFES
SUPERMARKET
RESTAURANTS/BARS
5228 CASSSTREET
20 | Offering Memorandum
Neighborhood Amenities
TURQUOISE STREET
CASS STREET
CASS STREET
MISSION BOULEVARD
5228 CASSSTREET
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Neighborhood Amenities
TURQUOISE STREET
AGATE STREET
CASS STREET
BIRD ROCK PARK &
ELEMENTARY SCHOOL
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Offering Memorandum | 23U N I T E D S T A T E S O F A M E R I C A
M E X I C O
U N I T E D S T A T E S O F A M E R I C A
M E X I C O
Del Mar
805
15
163
52
8
94
125
5
15
78
805
5
56
76
76
76
8
125
125
54
5
LemonGrove
La Mesa
El Cajon
BostoniaGranite
Hills Crest
HarbisonCanyon
North IslandNaval Air Station
SpringValley
RanchoSan Diego
Casa de Oro/ Mt Helix
WinterGardens
EucalyptusHills
Santee
Miramar
Mira Mesa
TorreyPines Miramar
Marine CorpsAir Station
Jamul
DescansoAlpine
SolanaBeach
RanchoSanta Fe
Encinitas
Poway
Ramona
Vista
San MarcosEscondido
Carlsbad
Oceanside
CampPendleton
Bonsall
Rainbow
Fallbrook
ImperialBeach
ScrippsRanch
KearnyMesa
SorrentoMesa
SorrentoValley
BorregoSprings
MountLaguna
Potrero
Boulevard
Jacumba
Julian
San DiegoCountryEstates
Campo
LaPresa
Eastlake
Bonita
OceanBeach
CentralSan Diego
PtLoma
Chula Vista
San YsidroOtay Mesa
PineValley
San DiegoInternational
Airport
5228 Cass Street, San Diego, CA 92109
24 | Offering Memorandum
3
5
1
4
2
BALBOA AVENUE
GARNET AVENUE
MIS
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VA
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CHALCEDONY AVENUE
CA
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TURQUOISE STREET
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GR
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GRAND AVENUE
SITE
SALE COMPARABLES
Offering Memorandum | 25
# Street Address # of Units
Sale Price
Sale Date
$/SF Buildings
Adjusted $/SF*
$/Unit Adjusted $/Unit*
Year(s) Built
Configuration Unit Mix
1 1676 Thomas Street San Diego, CA 92109
4 $2,255,000 10/31/2017 $413 $442 $563,750 $603,213 1992 Fourplex All 2 Bd:2.5 Ba
Notes: In-unit laundry, fireplaces. Parking: 4 - Double Garages; Plus 200 sf storage.
2 1760-62 Oliver Avenue San Diego, CA 92109
4 $2,215,000 10/16/2017 $623 $667 $553,750 $592,513 House: 1950's Triplex: 1990
House & Triplex
House - 2 Bd:1 Ba Triplex - 2 Bd:2 Ba
Notes: All units have yard or decks. Parking: 4 - One Car Garages; 5 - Open Spaces.
3 1252-56 Thomas Avenue San Diego, CA 92109
3 $1,861,000 8/14/2018 $510 $523 $620,333 $635,842 1984 Triplex 1 - 2 Br:2 Ba 2 - 3 Br: 2Ba
Notes: In-unit laundry, private patios. Parking: 5 - Open Spaces.
4 1544 Chalcedony Street San Diego, CA 92109
4 $1,800,000 4/10/2019 $570 $570 $450,000 $450,000 1947 House & Triplex
House - 3 Bd:2 Ba 1 - 2 Bd:1 Ba 2- 1 Br: 1 Ba
Notes: Major remodel prior to sale. Parking: 2 - One Car Garages; 5 - Open Spaces.
5 1226 Oliver Avenue San Diego, CA 92109
3 $1,700,000 1/19/2018 $490 $517 $566,667 $597,833 1968 House & Duplex
House - 3 Bd:2 Ba 1 - 2 Bd:1 Ba 1- 1 Br: 1 Ba
Notes: High-end remodeled house is 1,528 sf. Parking: 3 - One Car Garages; 3 - Open Spaces.
Averages $521 $544 $550,900 $575,880
* 5228 Cass Street San Diego, CA 92109
4 $2,600,000 N/A $645 N/A $650,000 N/A 1986 Fourplex All 2 Bd:2 Ba
Notes: In-unit laundry, fireplaces, views. 4 - One Car Garages.
Time Adjustment: Dated sales comps were adjusted by an appreciation factor of one-half percent per month through December, 2018. No adjustment was applied to the 2019 closing.
SALE COMPARABLES
5228 CASSSTREET
The Offering
26 | Offering Memorandum
THIS ISPacific Beach
LIVE • WORK • PLAY • EAT • SHOP
Pacific Beach is a relaxed neighborhood by the beach, popular with sunbathers and surfers. Trendy hotel bars and casual cafe’s line the boardwalk, while Mission
Boulevard and the surrounding streets are dotted with clothing boutiques, yoga studios and casual drinking spots that typically draw a young, bar-hopping crowd.
While formerly largely populated by young people, surfers, and college students, more recently, because of rising property and rental costs the population is gradually
becoming older and more affluent. “P.B.,” as it is known as by local residents, is home to one of San Diego’s more developed nightlife scenes, with a great variety of
bars, eateries, shops, hotels and entertainment, located along Garnet Avenue and Mission Boulevard.
Pacific Beach is bounded by La Jolla to the north, Mission Beach and Mission Bay to the south, Interstate 5 to the east and the Pacific Ocean to the west. Pacific
Beach’s namesake stretches for miles from the Mission Bay jetty to the cliffs of La Jolla. The boardwalk, or Ocean Front Walk/Ocean Boulevard, is a pedestrian
walkway that runs approximately 3.2 miles along the beach from the end of Law Street in the north down into Mission Beach, ending at the mouth of Mission Bay in
the south.
Offering Memorandum | 27
The boardwalk is generally crowded with pedestrians, cyclists, roller-bladers, and shoppers.
Adjacent to the boardwalk is the Crystal Pier, a public pier and hotel at the west end of Garnet
Avenue.
In addition to bordering the Pacific Ocean and Mission Bay Park, inland of Pacific Beach is the
grassy slope of Kate Sessions Park, which has sweeping views of the city and San Diego Bay.
Fanuel Street Park is a popular bay-front park with playground equipment suitable for toddler
and school-age children. Rose Creek, which flows through Pacific Beach before emptying into
Mission Bay, provides open space and a rich wetland area.
1/2 MILE TO BEACH
81 WALK SCORE
57 BIKE SCORE
1/4 MILE SUPERMARKET
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BALBOA AVENUE STATION
7
TECOLOTE ROAD STATION
5
PROPOSED BALBOA STATION
PROPOSED CLAIREMONT STATION
MID-COAST TRANSIT PROJECT
BALBOA
CLAIREMONT
Offering Memorandum | 29
MID-COAST TRANSIT PROJECT, OPENING IN 2021
THE PROJECTThe Mid-Coast Corridor Transit Project will extend the Trolley Blue Line service from the Santa Fe Depot in Downtown San Diego north to the University City community, serving major activity centers such as Old Town, the University of California, San Diego (UCSD), and Westfield UTC.
The proposed project would be funded in partnership by SANDAG and the Federal Transit Administration (FTA).
The Trolley extension route – known as the Locally Preferred Alternative (LPA) – was approved by the SANDAG Board in July 2010. It begins just north of the Old Town Transit Center and travels in existing railroad right-of-way and alongside Interstate 5 to serve UCSD and University City. The extension will serve nine new stations: Tecolote Road, Clairemont Drive, Balboa Avenue, Nobel Drive, VA Medical Center, Pepper Canyon (serving UCSD west campus), Voigt Drive (serving UCSD east campus), Executive Drive, and the terminus station at the Westfield UTC transit center.
THE NEEDFreeways and arterials in the Mid-Coast corridor are generally congested, and traffic congestion is projected to increase as the region grows. By 2030, population in the corridor is forecast to increase 19 percent and employment is expected to increase by 12 percent. The University City area has developed as a major employment and high-density residential area, similar to Downtown San Diego. University City is San Diego’s second downtown, and UCSD is one of the region’s largest trip generators; however, neither is served directly by regional transit services.
The Mid-Coast Trolley extension will provide an effective alternative to congested freeways and roadways for travelers, improve public transit services, and enhance travel options by connecting the corridor with areas served by the existing Trolley system.
PROJECT COSTSThe current project budget is $1.7 billion, exclusive of financing costs. The project budget will be updated for inclusion in the project’s environmental document, called the Supplemental Environmental Impact Statement/Subsequent Environmental Impact Report (SEIS/SEIR). It will be updated again during preliminary engineering, prior to entering final design in the FTA New Starts program.
FUNDING STATUSThe Mid-Coast Trolley extension has been identified as a high-priority project by SANDAG and is part of the TransNet Early Action Program. TransNet will provide a 50 percent local match to federal funding, which SANDAG is seeking through the New Starts program. TransNet also will provide operating funds for the Mid-Coast Trolley extension through the year 2048.
SUMMARYThe Mid-Coast Corridor Transit Project is the agency’s highest-priority transit project. It will improve access to growing employment, education, and residential areas. A Trolley extension is particularly well-suited to the corridor because:
It connects with the existing regional rail system at the Old Town Transit Center and Downtown San Diego at Santa Fe Depot, providing a vast improvement to mobility within the region.
As an extension of the existing Trolley Blue Line, it will offer a one-seat (no transfer) ride from the international border and communities south of Downtown San Diego all the way to University City.
It will connect residents of the corridor with major activity centers such as UCSD, UTC, Old Town, and Downtown San Diego.
30 | Offering Memorandum
PACIFIC BEACH RANKED #20 ON THE “TOP 25 BEACHES IN THE
UNITED STATES” BY TRIPADVISOR
Pacific Beach’s namesake gives
residents miles of coastline to take in
and enjoy, stretching all the way from
the Mission Bay jetty to the world-
famous cliffs of La Jolla. The area is
also known for its historic architecture
that takes residents back to the
founding of San Diego. With a single
trip down the boardwalk, it becomes
apparent that Pacific Beach holds
enough local restaurants, shops, and
scenery to make it a special place.
Many residents enjoy regular trips
to the famous Crystal Pier to fall in
love with the charm of Pacific Beach
again and again.
Offering Memorandum | 31
IMPRESSIVE DEMOGRAPHICSThe north end of Pacific Beach attracts residents who seek to live in a
coastal community with an abundance of outdoor recreation, restaurants,
bars, nightlife, cultural attractions and retail shopping.
1 MILE RADIUS
19,842
Densely Populated LocationThe five-year projection for the population in the area is 20,324 representing a change of 0.77% annually from 2019 to 2024.
$112,122
Strong Household IncomeCurrent median household income is $112,122, compared to $60,548 for all U.S. households. It is projected to be $125,076 in five years, compared to $69,180 for all U.S. households.
1,239
Established Retail HubOver 1,000 businesses call Pacific Beach home and the number keeps growing.
9,379
Number of HouseholdsThe five year projection of households is 9,560, a change of 0.38% annually from the current year total.
73%
Highly Educated Workforce73% of the population in the area hold a bachelor or graduate degree.
Source: Esri; U.S. Census Bureau
The community of Pacific Beach is truly one
of the gems of San Diego. For those looking to
take in some of the most scenic beach views
California has to offer with close proximity to
arts and entertainment, Pacific Beach is tough
to beat.
Pacific Beach is surrounded by pristine beaches,
shopping, dining, and abundant entertainment
options. When people from around the world
come to see what San Diego has to offer they
often fall in love with Pacific Beach because of
its world-renowned climate, beach views, and
endless opportunities for adventure.
32 | Offering Memorandum
Approximately 22.8% of the population within a
one mile radius and 13.4% within five miles hold an
annual income of over $200,000.
$1,216,680 $1,032,703
ONE MILE THREE MILE
13.4%5 MILE
22.8%1 MILE
REMARKABLE HOUSEHOLD INCOME
MEDIAN HOME VALUE
Custom Map
Source: ©2019 Esri
August 28, 2019
©2019 Esri Page 1 of 1
Offering Memorandum | 33
Total daytime population
249,230Workers
139,572Residents
109,658
$1,216,680 $1,032,703
ONE MILE THREE MILE
DAYTIME POPULATION
WITHIN 5 MILES
THE UNEMPLOYMENT RATE IS 4.3%
TOURISM INDUSTRYTourism is San Diego’s second largest traded industry (behind Research/Technology/Innovation), employing approximately 194,000 people - 13% of the jobs in the county. Travelers to the county annually spend $11.5 billion at San Diego businesses and generate $940 million in total taxes, of which $306 million are transient occupancy tax revenues that directly support San Diegan’s quality of life - from paying police officers and firefighters to maintaining parks and recreation.
Source: www.sandiego.org/research
4180 La Jolla Village Drive, Suite 100, La Jolla, CA 92037 • 858.453.0505 • 858.408.3976 Fax • Lic #01991785 | www.voitco.com
Licensed as a Real Estate Broker by the DRE. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2019 Voit Real Estate Services, Inc. All Rights Reserved.
ROBERT VALLERA CCIMSenior Vice President/PartnerLic. #00818308 | 858.458.3337 | [email protected]
CASS STREET
AGATE STREET