for sale > 10 units—multi family investment …

> Central Chula Vista location

> Convenient access to I-5 & I-805

> All two bedroom apartments

> 1986 construction

> Close proximity to school and major retail/commercial

> Strong and stable historical occupancy

Offered at: $2,300,000

Features

FOR SALE > 10 UNITS—MULTI FAMILY INVESTMENT OPPORTUNITY

345 ZENITH STREET | CHULA VISTA, CA 91911

Zenith Street Apartments




PROPERTY & NEIGHBORHOOD DESCRIPTION

PROPERTY DESCRIPTION The Zenith Street Apartments is a 2-story garden style, wood frame and stucco complex built in 1986. It is situated on approximately .36 acres in Chula Vista. The property is comprised of 10-two bedroom units, totaling approximately 8,000 square feet. Each unit offers a ceiling fan, individual tiled kitchen, bathroom and hallway flooring with carpeted bedrooms. The property is well landscaped with 16 off street assigned parking spaces. Adjacent to the parking lot is a common area laundry room equipped with full size washers and dryers. Although located in a predominately commercial area off Main Street, this property has enjoyed a strong history of stable occupancy with mature landscape in a peaceful and quiet setting. Located in Central Chula Vista, the second largest municipality and one of the richest economic and culturally diverse

zones in the county, this property offers an opportunity for an investor to purchase a solid long term investment in

one of San Diego County’s most desirable residential rental locations.

NEIGHBORHOOD DESCRIPTION/CHULA VISTA OVERVIEW The Zenith Street Apartments are located at 345 Zenith Street in the city of Chula Vista. Located just seven miles from downtown San Diego and seven miles from the Mexican border, the busiest international border crossing in the world, the city is at the center of one of the richest economic and culturally diverse zones in the United States. With a population of approximately 256,780, Chula Vista covers 50 square miles and is bordered by the Pacific Ocean on the west and mountains on the east. The City of Chula Vista is San Diego County’s second largest municipality. Resident population increased over 33% between 2000 and 2008 and commercial and industrial growth are not far behind. City services and resources are booming in pace with the growth making Chula Vista an extremely desirable area. Excellent planning has been Chula Vista’s hallmark. Established neighborhoods and contemporary master-planned communities, start-up firms and corporate giants, nationally recognized sports and entertainment venues as well as a charming, historic downtown all contribute to Chula Vista’s well-earned reputation as an ideal environment for both families and businesses.




DEMOGRAPHICS

Chula Vista (91911) Demographic Trends Chula Vista (91911) Rental Trends

Population Average Market Rent - $1,2982000 Total Population 69,796 Studio $875

2010 Total Population 80,720 1 Bedroom $1,075



2014 to 2019 Population Change 5.1% Average Occupancy 98.7%

Households Trend2000 Total Households 21,906 Source: MarketPoint

2010 Total Households 23,932



2014 to 2019 Household Change 4.5%

Household Income2014 Median Income $59,849

2014 Average Income $70,689

Home Value - March 2015Median Single Family Sales Price $377,500

Median Townhouse-Condo Sales Price $252,500

2014 OccupancyOwner Occupied 52.6%

Renter Occupied 47.4%

Source: Magnify & SDAR

Chula Vista (91911) Major Employer List

Company No. of Employees TypeMAAC Project Inc. 500+ Recovery & Human Resources

Sharp Chula Vista Medical Center 500+ Health Services

Sweetwater Union High School 250-499 Education

Fuller Ford Honda 250-499 Car Dealership

Aquatica Water Park 250-499 Recreation

Hyspan Precision Products Inc. 100-249 Manufacturing - Piping

Costco Wholesale 100-249 Retail

Raytheon Technical Services Co. LLC 100-249 Manufacturing - Navigation

Nypro San Diego, Inc. 100-249 Manufacturing - Plastics

Chula Vista City Public Works 100-249 Government

Source: Inside Prospects




MARKET OVERVIEW

CHULA VISTA OVERVIEW

Chula Vista’s great year-round weather, miles of trails, coastline, moun-tains and open space beckon runners, hikers, cyclists, birders and outdoor enthusiasts from the bay to the lakes. The Chula Vista Marina & Yacht Club awaits kayakers and boaters where outdoor enthusiast can enjoy the beautiful scenery along the San Diego Bay Front. Downtown Chula Vista boasts major retailers, dining, movie theaters, and more than 100 fine specialty shops. Third Avenue Village, billed as the cultural center of the city, features historic buildings, unique shops, a weekly farmers market, landmark restaurants and seasonal outdoor music concerts. More than 60 well-maintained parks and sports fields are available for outdoor sports, recreation activities and picnics. Chula Vista is also home to the Olympic Training Center where America’s best amateur athletes come to train year round. The Sleep Train Amphitheatre (formerly known as Coors Amphitheatre and Cricket Wireless Amphitheatre) is a 20,500 seat amphitheatre located in Chula Vista. It is one of the larger concert venues in the San Diego area and the only out-door amphitheatre designed specifically for music. The amphitheatre is located just 17 minutes from downtown San Diego making it an attractive venue for concert-goers.




MARKET OVERVIEW

Convenient Access & Proximity to Retail The Zenith Street Apartments have great accessibility to all of San Diego County via several major freeways as the property is located just east of Interstate 5 and within minutes of Interstate 805, Highway 54 and Highway 125. Addi-tionally, the property is just a 10 minute drive from downtown San Diego, 20 minutes from La Jolla and only minutes from the local beaches. Chula Vista provides a wide selection of shopping and dining opportunities with two major malls and a historic down-town district. With more than 100 of the country’s top specialty stores, Otay Ranch Town Center is an exciting outdoor shopping center with a number of dining and entertainment options including REI, Macy’s, Apple, Jos A Bank and AMC Theaters. This urban bustling, open-air center features a variety of other amenities including library, outdoor cafes, a pet-friendly setting and adjacent dog park, food pavilion and a fireplace seating area. Chula Vista Economic Overview Chula Vista maintains a business atmosphere that encourages growth and development. In the city, the small business sector accounts for the majority of Chula Vista’s business populous. This small business community is attributed to the city’s growth and serves as a stable base for its economic engine. Major local employment includes trade, manufacturing, education, government and finance. Approximately 73% of the work force is in service industries. Chula Vista has experienced continued growth in local trade. Taxable sales have consistently increased over the past 10 years. A significant influence in the local area is the labor force and economic synergism created in Tijuana, Mexico. Bordering Otay Mesa to the south, at the International Border, Tijuana is a major industrial center where 450 Maquiladora plants employ approximately 70,000 people. Companies in Tijuana include Honeywell, Colgate Palmolive, Hughes Aircraft, Mattel, Sanyo, and Sony. The dynamics of utilizing inexpensive labor costs in Mexico and shipping the finished products to Otay Mesa for processing are very advantageous for growth and stability in the South Bay area, which includes Chula Vista. Chula Vista Bayfront Master Plan At 500-plus acres, the Chula Vista Bayfront Master Plan (CVBMP) transforms Chula Vista’s underused landscape into a thriving residential and world-class waterfront resort destination. The Plan establishes thousands of new jobs, creates new public parks and protects natural coastal resources. The CVBMP is the result of a decade-long joint planning effort by a broad coalition of stakeholders, the Port of San Diego, the City of Chula Vista and Pacifica Companies. The Plan represents the last significant waterfront development opportunity in Southern California and was unanimously ap-proved by the California Coastal Commission August 9, 2012.




MARKET OVERVIEW Public Benefit When completed, more than 40 percent of the project area (234 acres) will be dedicated to parks, open space and habitat restoration/preservation; with 130 new acres identified for parks and open space that provide public access and use. The visitor serving amenities and mixed uses will be clustered in the Harbor District to reduce impact on environmentally sen-sitive areas. Economic Benefit The Chula Vista Bayfront Master Plan is expected to be economically sustainable. The plan is designed to create local and regional jobs and produce new public revenues for the region. Implementation of the plan will create more than 2,200 permanent jobs, nearly 7,000 construction jobs and numerous jobs in the regional economy.




EXECUTIVE SUMMARY / FINANCIAL ANALYSIS




EXPENSE ANALYSIS

Property Taxes (1.11845%): $25,725

Insurance: $2,150

Off-Site Management (4.0%): $7,655

Cable: $340

Gas & Electric: $2,400

Water & Sewer: $6,000

Trash: $1,620

Pest Control: 330

Landscaping: $1,200

Maintenance & Repair: $4,500

Reserves: $3,500

Total: $55,420

% GOI: 32%

$/Unit: $5,542

$/SF: $7.01




RENT ROLL Unit Current (Actual) Market

Unit #1 Office ($1,575) $1,575

Unit #2 $1,380 $1,575

Unit #3 $1,475 $1,575

Unit #4 $1,380 $1,575

Unit #5 $1,450 $1,575

Unit #6 $1,450 $1,575

Unit #7 $1,450 $1,575

Unit #8 Available ($1,575) $1,575

Unit #9 $1,375 $1,575

Unit #10 $1,450 $1,575

Total: $14,560 $15,750




RENT COMPARABLES

Photo Property Year Built

Units Unit Mix SF Rent Price Per SF Occupancy

(SUBJECT) 345 Zenith Street Chula Vista 91911

1986

10 (10) 2BR/1BA 800 $1,575 $1.97 100%

317 Zenith Street Chula Vista 91911

1979 20 (20) 2BR/1BA 900 $1,600 $1.78 100%

2887 Main Street Chula Vista 91911

1974 33

(29) 1BR/1BA (4) 2BR/1BA

625 850

$1,265 $1,585

$2.02 $1.86

97%

307 Orange Avenue Chula Vista 91911

1985 124

(28) 1BR/1BA (96) 2BR/1BA

540 760

$1,150 $1,450

$2.13 $1.91

99%

350-60 Oxford Street

Chula Vista 91911 1978

37 (14) 1BR/1BA (23) 2BR/1BA

630 874

$1,150 $1,485

$1.82 $1.70

100%

Averages: 1BR/1BA 2BR/1BA

598 835

$1,034 $1,322

$1.74 $1.59

99%




RECENT SOUTH BAY SALES

Photo Property Year Built

Units SF Sale Price $/Unit $/SF GRM CAP COE

(SUBJECT) 345 Zenith Street Chula Vista 91911

1986

10 7,950 $2,300,000 $230,000 $291.14 13.0 5.0% -

1029 4th Avenue


8 9,320 $1,685,000 $210,625 $180.79 12.5 4.7% 4/2015

368 Roosevelt Street


8 5,600 $1,625,000 $203,125 $290.18 12.8 5.1% 5/2015

745 Dorothy Street Chula Vista 91911

2000 8 8,895 $2,500,000 $312,500 $281.06 18.9 3.7% 5/2015

577 Oxford Street Chula Vista 91911

1978 12 10,200 $2,100,000 $175,000 $205.88 11.5 5.5% 5/2015

773 Calla Avenue

Imperial Beach 91932 1980

7 9,590 $1,615,000 $230,714 $168.40 11.3 5.3% 8/2015

2887 Main Street Chula Vista 91911

1974 33 21,525 $4,650,000 $140,909 $216.03 12.0 5.0%

10/2015

1151 Grove Avenue

Imperial Beach 91932 1974

6 5,250 $1,350,000 $225,000 $257.14 14.5 4.1% 3/2016

Not Available

517 Florida Street Imperial Beach 91932

1986 10 9,721 $2,210,000 $221,000 $227.14 12.2 4.7% 4/2016

Averages: $2,216,875 $214,860 $228.29 13.2 4.8%

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RECENT SOUTH BAY SALES




for sale > 10 units—multi family investment …

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