[email protected] license: ca 01974818 04 sales comparables // 17-21 05...

OFFERING MEMORANDUM

4585HAMILTON

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N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E

C O N F I D E N T I A L I T Y & D I S C L A I M E RThe 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.

Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.

© 2018 Marcus & Millichap. All rights reserved.

N O N - E N D O R S E M E N T N O T I C EMarcus & 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. Activity ID: ZAA0090790

A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N L Y .P L E A S E C O N S U L T Y O U R M A R C U S & M I L L I C H A P A G E N T F O R M O R E D E T A I L S .

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

E X C L U S I V E L Y L I S T E D B Y

CARSON TRUJILLOSenior Associate

San DiegoDirect: (858)373-3285

Cell: (859)[email protected]

License: CA 01974818

04 S A L E S C O M P A R A B L E S / / 1 7 - 2 1

05 R E N T C O M P A R A B L E S / / 2 2 - 2 7

06 M A R K E T O V E R V I E W / / 2 8 - 3 0

01 E X E C U T I V E S U M M A R Y / / 6 - 7

02 P R O P E R T Y D E S C R I P T I O N / / 8 - 1 4

03 F I N A N C I A L A N A L Y S I S / / 1 5 - 1 6

TABLE OF CONTENTS

6 E X E C U T I V E S U M M A R Y

I N V E S T M E N T H I G H L I G H T S

Marcus & Millichap is pleased to present a for sale a pride of ownership and partially renovated 8-unit property in the North Park of San Diego. 4585 Hamilton Street offers the rare opportunity to acquire an

almost all two-bedroom / two-bath unit from the original owner since it was constructed in 1969. Meticulously maintained and upgraded over the years, this property rests on an approximate 6,990 SF lot

with 7,018 of rentable SF.

This property is comprised of 7 two-bedroom / two-bathroom units and 1 two-bedroom / one-bathroom unit. All units feature air conditioning, double pane windows, dishwashers, and kitchens with quartz or

granite counter tops. Select units have ceramic tile kitchen flooring, upgraded bathrooms, and 6 units have walk-in closets. A new roof was installed 7 years ago with a 10-year warranty by Martin Roofing. Other

amenities include coin-operated owned laundry and some units with private balconies or patios.

This complex offers investors the rare opportunity to significantly improve rents on this property with much of the capital improvement expense already completed. Increase rents an estimated 20% with no additional improvements needed or update the units to increase by an estimated 44%. North Park continues to draw

in the highest quality and most desirable tenants in San Diego. Being within walking distance to two of North Park’s main thoroughfares, Adams Avenue and El Cajon Boulevard, this property is centrally located with

the investor’s longevity in mind.

HIGHLY DESIRABLEUNIT MIX 88% 2BR/ 2BA

UNDER MARKETRENTS

FIRST TIME TOMARKET - ONLY

ONE OWNER

PARTIAL RENOVATIONTO ALL UNITS

AC IN ALL UNITS

4585HAMILTON

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7E X E C U T I V E S U M M A R Y

8 P R O P E R T Y D E S C R I P T I O N

4585HAMILTON

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North Park, with over 80 highly rated bars and restaurants.

El Cajon BlvdEl Cajon Blvd

University AveUniversity Ave

Texas StTexas St

30th St30th St

4585HAMILTON

STREE

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San Diego’s very own North Park is a neighborhood that has been

growing in popularity year after year. With some of the best bars

and restaurants in town, this has been one of the most desirable

neighborhoods to be a part of.

Being a rapidly growing community, North Park is currently

undergoing major development projects. HG Fenton, an apartment

and commercial construction company, is building a complex

with over 160 apartment homes; and the ground floor of this site

will be restaurant and retail space. Another upscale project is the

Broadstone Apartment Complex. This special project has aesthetic

architecture, mixing in colorful and creative designs within the

building to keep it interesting.

Over recent years, North Park has been put on a pedestal by

known magazines such as Forbes and the Los Angles Times. Forbes

magazine quotes, “culturally diverse North Park is home to Craftsman

cottages, cafes and diners, coffee shops, several microbreweries,

boutiques, and the North Park Farmers Market.” The Los Angeles

Times continues to cherish this gentrified neighborhood. “North Park

has all the ingredients for the cool school: it’s culturally diverse and

has art galleries, boutiques, trendy bars with handcrafted cocktails,

and local brews, and foodie-approved eateries.” This neighborhood

is considered the complete package.

NORTH PARK


E X T E R I O RF E A T U R E S

New roof January 2013 with a 10-year warranty

Double pane vinyl windows

On-site Coin Operated Laundry(Owned)

Select Units with Private Balconies/Patios

Off-Street Parking (3 tandem and 5 single spaces)

11P R O P E R T Y D E S C R I P T I O N

I N T E R I O RF E A T U R E S

All units have built in wall or split A/C systems

All units with upgraded graniteor quartz counters

All Units have dishwashers

Some bathrooms upgraded

6 Units have walk-in Closets

13P R O P E R T Y D E S C R I P T I O N

15F I N A N C I A L A N A L Y S I S

PRICING DETAILS // 4585 HAMILTON STREET

SUMMARY Price $2,800,000Down Payment $1,400,000 50%Number of Units 8Price Per Unit $350,000Price Per SqFt $398.97Gross SqFt 7,018Lot Size 0.16 AcresApprox. Year Built 1969

RETURNS CURRENT PROFORMACAP Rate 3.56% 5.80%GRM 17.91 12.48Cash-on-Cash 1.39% 5.87%Debt Coverage Ratio 1.24 2.02

FINANCING 1ST LOANLoan Amount $1,400,000Loan Type NewInterest Rate 4.00%Amortization 30 YearsYear Due 2025

# OF UNITS

UNIT TYPE SCHEDULED RENTS

PROFORMA

7 2-Bed / 2-Bath $1,625 $2,350 1 2-Bed / 1-Bath $1,650 $2,250

INCOME CURRENT PROFORMAGross Scheduled Rent $156,300 $224,400Less: Vacancy/Deductions 3.0% $4,689 3.0% $6,732Total Effective Rental Income $151,611 $217,668Other Income $8,036 $8,036Effective Gross Income $159,647 $225,704Less: Expenses 37.6% $59,988 28.0% $63,291Net Operating Income $99,659 $162,413Cash Flow $99,659 $162,413Debt Service $80,206 $80,206Net Cash Flow After Debt Service 1.39% $19,453 5.87% $82,207Principal Reduction $24,655 $25,659Total Return 3.15% $44,107 7.70% $107,866

EXPENSES CURRENT PROFORMAReal Estate Taxes $34,496 $34,496Insurance $2,000 $2,000Utilities - Water & Sewer $5,075 $5,075Utilities - Gas & Electric $1,375 $1,375Trash Removal $2,400 $2,400Repairs & Maintenance $3,200 $3,200Landscaping $1,200 $1,200Pest $660 $660Operating Reserves $1,600 $1,600Management Fee $7,982 $11,285Total Expenses $59,988 $63,291Expenses/Unit $7,499 $7,911Expenses/SF $8.55 $9.02

16 F I N A N C I A L A N A L Y S I S

RENT ROLL SUMMARY // 4585 HAMILTON STREET

RENT ROLL

SCHEDULED POTENTIAL

UNIT TYPE # OF UNITSAVG SQ

FEETRENTALRANGE

AVG.RENT

AVG.RENT/ SF

MONTHLYINCOME

AVG.RENT

AVG. RENT / SF

MONTHLYINCOME

2-Bedroom/1-Bathroom 7 880 $1,200 - $1,850 $1,625 $1.85 $11,375 $2,350 $2.67 $16,450

2-Bedroom/ 1-Bathroom 1 850 $1,650 - $1,650 $1,650 $1.94 $1,650 $2,250 $2.65 $2,250

TOTALS/WEIGHTED AVERAGES 8 877 $1,628 $1.86 $13,025 $2,338 $2.66 $18,700

GROSS ANNUALIZED RENTS $156,300 $224,400

UNIT UNIT TYPE SQUAREFEET

CURRENTRENT / MONTH

CURRENT RENT/SF/MONTH

POTENTIAL RENT/ MONTH

POTENTIALRENT/SF/MONTH

A-1 2Bedroom / 2Bathroom 885 $1,550 $1.75 $2,350 $2.66




B-1 2Bedroom / 2Bathroom 885 $1,850 $2.09 $2,350 $2.66




Total 7,018 $13,025 $1.86 $18,700 $2.66

4585 HAMILTON STREET

3233 Herman Avenue

4534 30th Street

2814-2832 30th Street

4119 Florida Street

3811 Pershing Avenue

3965 Hamilton Street

4147 Idaho Street


3361 Dale Street

1

2

3

4

SALES COMPARABLES

5

6

7

8

9

3

2

1

4

5

9

78

6

17S A L E S C O M P A R A B L E S

4585 HAMILTON STREETSan Diego, CA 92116

List Price $2,800,000

Sale Date On Market

Year Built 1969

Price per Unit $350,000

Price per Square Foot $399

CAP Rate 3.57%

GRM 17.91

Number of Units 8

Units Unit Type

7 2 Bedroom/ 2 Bathroom


4534 30TH STREETSan Diego, CA 92104

Sale Price $3,630,000

Sale Date 7/24/2019

Year Built 1987



CAP Rate 4.00%

GRM 16.28

Number of Units 10

Units Unit Type



3233 HERMAN AVENUESan Diego, CA 92104


Sale Date 07/25/2019

Year Built 1972/2018



CAP Rate 4.37%

GRM 15.47

Number of Units 8

Units Unit Type




1 2

18 S A L E S C O M P A R A B L E S

2814-2832 30TH STREETSan Diego, CA 92104



Year Built 1987



CAP Rate 3.88%

GRM 17.89

Number of Units 10

Units Unit Type



3811 PERSHING AVENUESan Diego, CA 92104


Sale Date In Escrow

Year Built 1988



CAP Rate 3.38%

GRM 17.77

Number of Units 6

Units Unit Type


4119 FLORIDA STREETSan Diego, CA 92104



Year Built 1987



CAP Rate 3.14%

GRM 18.35

Number of Units 8

Units Unit Type



3 4 5


4147 IDAHO STREETSan Diego, CA 92104


Sale Date On Market

Year Built 1988



CAP Rate 4.02%

GRM 16.77

Number of Units 6

Units Unit Type






Sale Date On Market

Year Built 1988



CAP Rate 3.46%

GRM 20.23

Number of Units 10

Units Unit Type

2 Studio/ 1 Bathroom




Sale Date On Market




CAP Rate 4.12%

GRM 16.68

Number of Units 10

Units Unit Type



1 2 Bedroom/ 1 Bathroom*Listed By The Trujillo Group

6 7 8

20 S A L E S C O M P A R A B L E S

3361 DALE STREETSan Diego, CA 92104


Sale Date On Market




CAP Rate 3.62%

GRM 17.90

Number of Units 6

Units Unit Type


9


22 R E N T C O M P A R A B L E S

4585 HAMILTON STREET


3233 Herman Avenue

4576 Idaho Street

4319 Mississippi Street

4054 Florida Street

3770 Grim Avenue

3684 Alabama Street

4674 Ohio Street

3744 Arnold Avenue

1

2

3

4

RENT COMPARABLES

56

78

9

3

2

4

5

69

8

7

1

23R E N T C O M P A R A B L E S

UNIT TYPE UNITS SQUARE FEET RENT RENT/SF

2 Bedroom / 2 Bathroom 7 880 $1,625 $1.85


TOTAL/WTD. AVG. 8 877 $1,628 1.86

TotalUnits08 YearBuilt 19694 5 8 5 H A M I L T O N S T R E E TSan Diego, CA 92116




TOTAL/WTD. AVG. 3 853 $2,400 $2.82

3 2 3 3 H E R M A N A V E N U ESan Diego, CA 92104

TotalUnits08 YearBuilt 1957

TotalUnits10 YearBuilt 19714 0 7 8 H A M I L T O N S T R E E TSan Diego, CA 92104




TOTAL/WTD. AVG. 10 $2,096 $2.98

1

1

1

2


1

1

1

4 5 7 6 I D A H O S T R E E TSan Diego, CA 92116

YearBuilt 1972


2 Bedroom /2 Bathroom 1 1084 $2,550 $2.35

TOTAL/WTD. AVG. 1 1084 $2,550 $2.35

4 0 5 4 F L O R D I A S T R E E TSan Diego, CA 92104




TOTAL/WTD. AVG. 1 945 $2,921 $3.09


2 Bedroom / 1 Bathroom 3 $2,395

TOTAL/WTD. AVG. 1 $2,395

4 3 1 9 M I S S I S S I P P I S T R E E TSan Diego, CA 92104


09TotalUnits

4

3

5




TOTAL/WTD. AVG. 1 854 $2,500 $2.93

3 7 7 0 G R I M A V E N U E San Diego, CA, 92103




TOTAL/WTD. AVG. 6 850 $2,295 $2.70

4 6 7 4 O H I O S T R E E TSan Diego, CA 92116




TOTAL/WTD. AVG. 1 822 $2,600 $3.16

3 6 8 4 A L A B A M A S T R E E TSan Diego, CA 92104


1

1

1

6

7

8




TOTAL/WTD. AVG. 1 920 $2,500 $2.72

3 7 4 4 A R N O L D A V E N U ESan Diego, CA 92104


9


America's Finest CityAmerica's Finest City

28 M A R K E T O V E R V I E W

$609,900Median Home Pr ice

METRO A R EAS AN D I EGO

California’s second largest city and the United States’ eighth largest, San Diego boasts a citywide population of nearly 1.3 million residents and more than 3 million residents countywide. Within its borders of 4,200 sq. miles, San Diego County encompasses 18 incorporated cities and numerous other charming neighborhoods and communities, including downtown’s historic Gaslamp Quarter, Little Italy, Coronado, La Jolla, Del Mar, Carlsbad, Escondido, La Mesa, Hillcrest, Barrio Logan and Chula Vista just to name a few.

San Diego is renowned for its idyllic climate, 70 miles of pristine beaches and a dazzling array of world-class family attractions. Popular attractions include the world-famous San Diego Zoo and San Diego Zoo Safari Park, SeaWorld San Diego and LEGOLAND California. San Diego offers an expansive variety of things to see and do, appealing to guests of all ages from around the world.

In San Diego’s East County, the terrain varies from gentle foothills to mile-high mountains and the historic mining town, Julian, down to the 600,000-acre Anza-Borrego Desert State Park, offering nature-conscious visitors endless opportunities to hike, camp, fish, observe wildlife and much more. In San Diego’s North County, the agricultural community produces quantities of flowers and magnificent produce. Wine growers are also making a mark by growing and harvesting quality grapes that become excellent wines, which are served at some of the most elegant restaurants and resorts in the region. Along the west, 70 miles of Pacific Ocean coastline not only supports year-round outdoor recreation, such as surfing, boating, sailing and swimming, but also important scientific research at the Scripps Institution of Oceanography. To the south, it’s a whole different country, Mexico, featuring its own cultural offerings in various towns along the border and coastline, including Tijuana, Rosarito and Ensenada.

DEMOGRAPHICS 4585 HAMILTON STREET

3,300,000 T o t a l P o p u l a t i o n i n M e t r o S a n D i e g o

POPULATION BY AGE

6%0-4 Years

18%5-19 Years

8%20-24 Years

29%25-44 Years

24%45-64 Years

13%65+ Years

29E X E C U T I V E S U M M A R Y

CARSON TRUJILLOSenior Associate

San DiegoDirect: (858)373-3285

Cell: (859)[email protected]

License: CA 01974818

E X C L U S I V E L Y L I S T E D B Y

[email protected] license: ca 01974818 04 sales comparables // 17-21 05...

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