5th avenue villas · 2020-03-11 · 5th avenue villas contents exclusively marketed by: suzanne...

OFFERING MEMORANDUM

5th Avenue Villas

2926-2934 5th AveSan Diego, CA 92103

5th Avenue VillasCONTENTS

Exclusively Marketed by:

Suzanne Hoyem Louis Scotti Tim BarzalAssociate Principal Principal(619) 291-2229 (619) 316-3828 (619) 992-0382

Lic: [email protected] [email protected] [email protected]

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.

2358 University Ave #33San Diego, CA 92104

01 Executive Summary Investment Summary 5

Unit Mix Summary 6

Location Summary 7

02 Property Description Property Features 9

Aerial Map 10

Property Images 11

03 Rent Comps Rent Comparables 16

Rent Comparables Summary 22

Rent Comparables Map 25

04 Sale Comps Sale Comparables 27

Sale Comparables Summary 30

Sale Comparables Charts 31

Sale Comparables Map 32

05 Financial Analysis Income & Expense Analysis 34

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from

LuxView Properties and it should not be made available to any other person or entity without the written consent of LuxView Properties.

By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient

further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return

this offering memorandum to LuxView Properties. This offering memorandum has been prepared to provide summary, unverified financial and physical 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. LuxView Properties 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, PCBs or asbestos, the compliance with local, state and federal 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, LuxView Properties has not verified, and will not verify,

any of the information contained herein, nor has LuxView Properties 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

5th Avenue Villas Confidentiality and Disclaimer | 03

CONFIDENTIALITY AND DISCLAIMER

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONTACT LUXVIEW PROPERTIES FOR MORE DETAILS.

Copyright © 2020 CREOP, LLC. All Rights Reserved.

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Executive Summary

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Unit Mix Summary

Location Summary

5th Avenue Villas Investment Summary | 05

OFFERING SUMMARY

ADDRESS 2926-2934 5th AveSan Diego CA 92103

BUILDING SF 3,440 SF

NUMBER OF UNITS 5

YEAR BUILT 1936

YEAR RENOVATED 2015

APN 452-662-07

FINANCIAL SUMMARY

OFFERING PRICE $1,999,000

PRICE PSF $581.10

PRICE PER UNIT $399,800

OCCUPANCY 97.00 %

NOI (CURRENT) $78,160

NOI (Pro Forma) $91,317

CAP RATE (CURRENT) 3.91 %

CAP RATE (Pro Forma) 4.57 %

PROPOSED FINANCING

LOAN TYPE

DOWN PAYMENT $778,211

LOAN AMOUNT $1,220,789

INTEREST RATE 3.88 %

ANNUAL DEBT SERVICE $68,927

LOAN TO VALUE 61 %

2015 Property Renovation

Beautifully Remodeled

Gourmet Kitchens

Granite Countertops

New Stainless Appliances

Travertine Showers

Washer/Dryer Hookups

The Spanish Style Apartments constructed in 1936 and remodeledin 2015 consists of 4 large 1 Bedroom /1 Bath units, 1 large 2Bedroom / 1 Bath unit, onsite parking, plus 4 garages and islocated just 1 block from Balboa Park and 5 minutes fromdowntown San Diego. The classic units have built-ins, originalhardwood floors, coved ceilings, and original maple doors. Thisproperty has the opportunity for increased rents.

5th Avenue Villas Unit Mix Summary | 06

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

PSFMarket Income

1 bd + 1 ba 2 648 $1,995 $3.08 $3,990 $2,150 $3.32 $4,300

2 bd + 1 ba 1 848 $2,300 $2.71 $2,300 $2,400 $2.83 $2,400

1 bd + 1 ba 2 648 $2,095 $3.23 $4,190 $2,150 $3.32 $4,300

Totals/Averages 5 688 $6,390 $3.07 $10,480 $6,700 $3.22 $11,000

5th Avenue Villas Location Summary | 07

Banker’s Hill, sometimes referred to as Park West, issprinkled with old-world charm and many houses thatdate back to the late 19th century, contrasting with aplethora of contemporary and hip restaurants andcafes for foodies.

The property’s walkability to restaurants, cafes, bars,and the world-famous Balboa park, make it one of thebest urban neighborhoods in San Diego. Additionally,major retail and employment centers beyonddowntown are within an easy commute via Interstate5 and 163 freeway.

Regional Map

Locator Map

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Property Description

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Aerial Map

Property Images

5th Avenue Villas Property Features | 09

PROPERTY FEATURES

NUMBER OF UNITS 5

BUILDING SF 3,440

YEAR BUILT 1936

YEAR RENOVATED 2015

NUMBER OF STORIES 2

NUMBER OF PARKING SPACES 5

WASHER/DRYER in Unit

5th Avenue Villas Aerial Map | 10

5th Avenue Villas Property Images | 11

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Rent Comps

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Rent Comparables Summary

Rent Comparables Map

5th Avenue Villas Rent Comparables | 16

1

2466 1st St, San Diego, CA 92101

Property Summary

UNITS 21

YEAR BUILT 2018

DISTANCE 0.6 miles

Notes Rent Comps represent standard log-term rental.

Unit Mix and Rent ScheduleUnit Mix # of Units Square Feet Rent Rent per SF

1 bd + 1 ba 6 436 $2,445 $5.60

2 bd + 1 ba 7 910 $3,295 $3.62

Studio + 1 ba 6 450 $2,095 $4.65

Total/Avg 19 599 $2,612 $4.62

Unit Mix Breakdown

Comparables Rent Analysis

1 bd + 1 ba $1,975 - $2,445

LOW HIGH

2 bd + 1 ba $2,300 - $3,295

LOW HIGH


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2234 Brant St, San Diego, CA 92101

Property Summary

UNITS 10

YEAR BUILT 2010

DISTANCE 1.0 miles



1 bd + 1 ba 2 $0

2 bd + 2 ba 8 1,600 $3,195 $1.99

Total/Avg 10 1,600 $3,195 $1

Unit Mix Breakdown


1 bd + 1 ba $1,975 - $2,445

LOW HIGH


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598 W Laurel Street, San Diego, CA 92101

Property Summary

UNITS 11

DISTANCE 0.9 miles



Studio + 1 ba 11 $2,100 $0

Total/Avg 11 $2,100 $0

Unit Mix Breakdown


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2130 1st Ave, San Diego, CA 92101

Property Summary

UNITS 8

YEAR BUILT 1925

DISTANCE 1.0 miles



1 bd + 1 ba 8 550 $1,975 $3.59

Total/Avg 8 550 $1,975 $3.59

Unit Mix Breakdown


1 bd + 1 ba $1,975 - $2,445

LOW HIGH


5

326 Juniper St, San Diego, CA 92101

Property Summary

UNITS 98

YEAR BUILT 1922

DISTANCE 0.6 miles


1 bd + 1 ba 9 619 $2,175 $3.51

Studio + 1 ba 89 478 $2,000 $4.18

Total/Avg 98 549 $2,088 $3.85

Unit Mix Breakdown


1 bd + 1 ba $1,975 - $2,445

LOW HIGH


S

5th Avenue Villas

2926-2934 5th Ave, San Diego, CA 92103

Property Summary

UNITS 5

YEAR BUILT 1936

OCCUPANCY 97.00 %

Unit Mix and Rent ScheduleUnit Mix # of Units Square Feet Rent Summary Rent per SF

1 bd + 1 ba 2 648 $1,995 $3.08

2 bd + 1 ba 1 848 $2,300 $2.71

1 bd + 1 ba 2 648 $2,095 $3.23

Totals/Averages 5 688 $6,390 $3.07

Unit Mix Breakdown


1 bd + 1 ba $1,975 - $2,445

LOW HIGH

2 bd + 1 ba $2,300 - $3,295

LOW HIGH

1 bd + 1 ba $1,975 - $2,445

LOW HIGH

5th Avenue Villas Rent Comparables Summary | 22

Rents shown in ascending order.

5th Avenue Villas Rent Comparables Map | 25

# Address City

S 2926-2934 5th Ave San Diego

1 2466 1st St San Diego

2 2234 Brant St San Diego

3 598 W Laurel Street San Diego

4 2130 1st Ave San Diego

5 326 Juniper St San Diego

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Sale Comparables Summary

Sale Comparables Charts

Sale Comparables Map

5th Avenue Villas Sale Comparables | 27

1

5968-5978 Lauretta StSan Diego, CA 92110

TOTAL UNITS 6

YEAR BUILT 2016

SALE PRICE $3,950,000

PRICE/UNIT $658,333

PRICE/SF $434.30

CAP RATE 4.40 %

BUILDING SF 9,095

CLOSING DATE 1/17/2019

DISTANCE 4.8 miles

Cap Rate Range 3.91 % - 5.25 %

LOW HIGH

Price/Unit Range $399,800 - $750,000

LOW HIGH

2

1134-1148 Fresno StSan Diego, CA 92110

TOTAL UNITS 6

YEAR BUILT 2017


PRICE/UNIT $725,000

PRICE/SF $375.10

CAP RATE 4.30 %

BUILDING SF 11,597


DISTANCE 4.6 miles


LOW HIGH

Price/Unit Range $399,800 - $750,000

LOW HIGH


3

5541 Lindo PaseoSan Diego, CA 92115

TOTAL UNITS 8

YEAR BUILT 2018


PRICE/UNIT $750,000

PRICE/SF $533.33

CAP RATE 5.00 %

BUILDING SF 11,250


DISTANCE 7.7 miles


LOW HIGH

Price/Unit Range $399,800 - $750,000

LOW HIGH

4

4045 30th StSan Diego, CA 92104

TOTAL UNITS 10

YEAR BUILT 2017


PRICE/UNIT $570,000

PRICE/SF $1,584.65

CAP RATE 5.25 %

BUILDING SF 3,597


DISTANCE 2.8 miles


LOW HIGH

Price/Unit Range $399,800 - $750,000

LOW HIGH


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2143 2nd AveSan Diego, CA 92101

TOTAL UNITS 4

YEAR BUILT 2017


PRICE/UNIT $505,000

PRICE/SF $561.58

CAP RATE 4.54 %

BUILDING SF 3,597


DISTANCE 1.0 miles


LOW HIGH

Price/Unit Range $399,800 - $750,000

LOW HIGH

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5th Avenue Villas2926-2934 5th AveSan Diego, CA 92103

TOTAL UNITS 5

YEAR BUILT 1936

ASKING PRICE $1,999,000

PRICE/UNIT $399,800

PRICE/SF $581.10

CAP RATE 3.91 %

OCCUPANCY 97.00 %

BUILDING SF 3,440


LOW HIGH

Price/Unit Range $399,800 - $750,000

LOW HIGH

5th Avenue Villas Sale Comparables Summary | 30

PROPERTY Units Built Sale Price Price/Unit PSF Cap Rate Close Date DISTANCE (mi)

1 5968-5978 Lauretta StSan Diego, CA 92110 6 2016 $3,950,000 $658,333 $434.30 4.40% 1/17/2019 4.80

2 1134-1148 Fresno StSan Diego, CA 92110 6 2017 $4,350,000 $725,000 $375.10 4.30% 3/29/2018 4.60

3 5541 Lindo PaseoSan Diego, CA 92115 8 2018 $6,000,000 $750,000 $533.33 5.00% 10/1/2018 7.70

4 4045 30th StSan Diego, CA 92104 10 2017 $5,700,000 $570,000 $1,584.65 5.25% 2/8/2019 2.80

5 2143 2nd AveSan Diego, CA 92101 4 2017 $2,020,000 $505,000 $561.58 4.54% 1/5/2018 1.00

AVERAGES 7 2017 $4,404,000 $641,667 $697.79 4.70%

SUBJECT 5 1936 $1,999,000 $399,800 $581.10 3.91%

5th Avenue Villas Sale Comparables Charts | 31

5th Avenue Villas Sale Comparables Map | 32

# Address City

S 2926-2934 5th Ave San Diego

1 5968-5978 Lauretta St San Diego

2 1134-1148 Fresno St San Diego

3 5541 Lindo Paseo San Diego

4 4045 30th St San Diego

5 2143 2nd Ave San Diego

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5th Avenue Villas Income & Expense Analysis | 34

INCOME CURRENT PRO FORMA

Gross Potential Rent $126,960 $132,000

Parking $7,200

RUBS $3,000

Gross Potential Income $126,960 $142,200

Less: General Vacancy $3,809 $3,960

Effective Gross Income $123,151 $138,240

Less: Expenses $44,991 $46,923

Net Operating Income $78,160 $91,317

EXPENSES CURRENT PRO FORMA

Real Estate Taxes $4,655 $23,276 $4,787 $23,937

Insurance $1,243 $6,216 $1,243 $6,216

Management Fee $985 $4,926 $1,103 $5,517

Repairs & Maintenance $1,133 $5,665 $1,269 $6,345

Water / Sewer $528 $2,640 $528 $2,640

Landscaping $192 $960 $192 $960

Utilities $262 $1,308 $262 $1,308

Total Operating Expense $8,998 $44,991 $9,385 $46,923

Annual Debt Service $13,785 $68,927 $13,785 $68,927

Expense / SF $13.07 $13.64

% of EGI 36.53 % 33.94 %

Per Unit Per Unit

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

5th Avenue Villas

Exclusively Marketed by:

Suzanne Hoyem Louis Scotti Tim BarzalAssociate Principal Principal(619) 291-2229 (619) 316-3828 (619) 992-0382

Lic: [email protected] [email protected] [email protected]

2358 University Ave #33, San Diego, CA 92104 powered by CREOP

5th avenue villas · 2020-03-11 · 5th avenue villas contents exclusively marketed by: suzanne...

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