pacific beach 4286 morrel st · 2018. 9. 5. · have been upgraded with new cabinetry,...

4286 MORRELL STREET • SAN DIEGO • CALIFORNIA • 92109This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of 2017 Marcus & Millichap. All rights reserved. ACT ID Y0090463 1

PA C I F I C B E A C H

4286 MORREL STSAN DIEGO, CA 92109

O F F E R I N GM E M O R A N D U M

EXECUTIVE SUMMARY

Marcus & Millichap is pleased to present 4286-88 Morrell Street, a six (6) unit multifamily property located in the heart of Pacific Beach.

Pacific Beach is comprised of mostly single family homes, condo residences, and luxury apartments. Owners tend to hold onto investments in this prized location, as a result properties are seldom seen on the market. Pacific Beach is perceived to be among the best multifamily investment neighborhoods in San Diego, along with Del Mar, Coronado, and Neighboring La Jolla. The 4,278 square foot property is comprised of six studio apartments. All units have been upgraded with new cabinetry, refigerators, tile flooring, and one unit has been refitted with a newly remodeled kitchen and bath. in addition, the property has recently been repainted.The property offers residents an opportu-nity to live an idyllic suburban lifestyle, while being situated a short walk to the beach and a myriad of local shops and restaurants.

This property is an opportunity for an investor to purchase a solid investment in a strong rental submarket. With upside in rents, and the possibility to maximize rental income by converting to vacation rentals, the owner will enjoy the securi-ty of having a property that is destined to maintain its desirability and increase in value over time. This offering is perfect for a long-term investor seeking a

multifamily investment in a premier San Diego location.

PR I M E PA C I F I C B E A C H LO C AT I O N

L A R G E C O R N E R LOT

I N T E R I O R R E N O VAT I O N S

E X T E R I O R R E PA I N T E D

VA L U E A D D - T R E M E N D O U S R E N TA L U P S I D E

WA L K S C O R E O F 80 - C LO S E T O S H O P S , R E S TA U R A N T S ,

B A R S , & B E A C H E S

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PROPERTY DESCRIPTION

Address: 4286-4288 Morrell Street, San Diego, CA 92109

APN: 424-182-10-00

ZONING: R-3:RESTRI

Units: 6

Square Feet: 1,560

Lot Size: 0.10 Acres

Year Built: 1953

Buildings: 1

Stories: 1

Type Of Ownership: Fee Simple

Parking: Street

Landscaping: Minimal

Water: Owner Pays

Gas/Electric: Owner Pays

Foundation: Conrete Slab

Framing: Wood

Exterior: Wood

Roof: Pitched

REGIONAL MAPS

FINANCIAL ANALYSIS: PRICING DETAIL

Price $1,375,000

Down Payment $687,500 / 50%

Number of Units 6

Price Per Unit $229,167

Price Per SqFt $881.41

Gross SqFt 1,560

Lot Size 0.10 Acres

Approx. Year Built 1953

#of Units

Unit Type Square Feet

Current Rents

Market Rents

6 Studio 260 $980-1,100 $1,275

Cap Rate 3.18% 4.41%

GRM 18.72 14.98

Cash-on-Cash 0.28% 2.74%

Debt Coverage Ratio 1.05 1.45

Income Current Year 1

Gross Scheduled Rent $73,440 $91,800

Less: Vacancy/Deductions 3.0% $2,203 3.0% $2,754

Total Effective Rental Income $71,237 $89,046

Other Income $0 $0

Effective Gross Income $71,237 $89,046

Less: Expenses 38.6% $27,505 31.9% $28,395

Net Operating Income $43,732 $60,651

Cash Flow $43,732 $60,651

Debt Service $41,802 $41,802

Net Cash Flow After Debt Service 0.28% $1,930 2.74% $18,849

Principal Reduction $11,091 $11,600

Total Return 1.89% $13,021 4.43% $30,450

Expenses Current Year 1

Real Estate Taxes $16,083 $16,083

Insurance $960 $960

Utilities $1,800 $1,800

Trash/Landscape/Pest $1,800 $1,800

Repairs & Maintenance $2,400 $2,400

General & Administrative $900 $900

Management Fee $3,562 $4,452

Total Expenses $27,505 $28,395

Expenses/Unit $4,584 $4,733

Expenses/SF $17.63 $18.20

Loan Amount $687,500

Loan Type New

Interest Rate 4.50%

Amortization Period 30 Years

Year Due 2022

Summary

Current Year 1Returns

Financing 1st Loan

Unit Mix

Operating Data

UNIT UNIT TYPE SQUAREFEET

CURRENTRENT/

MONTH

CURRENTRENT/SF/MONTH

POTENTIALRENT/

MONTH

POTENTIALRENT/SF/MONTH

1 Studio 260 $1,100 $4.23 $1,275 $4.90

2 Studio 260 $1,100 $4.23 $1,275 $4.90

3 Studio 260 $980 $3.77 $1,275 $4.90

4 Studio 260 $980 $3.77 $1,275 $4.90

5 Studio 260 $980 $3.77 $1,275 $4.90

6 Studio 260 $980 $3.77 $1,275 $4.90

Total/Avg 1,560 $6,120 $3.92 $7,650 $4.90

FINANCIAL ANALYSIS: RENT ROLL

SALES COMPS

4286 MORRELL STREETSAN DIEGO, CA 92109

UNITS UNIT TYPE

Offering Price: $1,375,000 6 Studios

Price/Unit: $229,167

Price/SF: $881.41

CAP Rate: 3.18%

GRM: 18.72

Total No. of Units: 6

Year Built: 1953

UNDERWRITING CRITERIA

Income $73,440 Expenses $27,505

NOI $43,732 Vacancy ($2,203)

1 2135 & 2145 GARNET AVESAN DIEGO, CA 92109

UNITS UNIT TYPE

Close Of Escrow: 2/23/2018 1 3 Bdr 2 Bath

Sales Price: $1,515,000 1 3 Bdr 1 Bath


Price/SF: $513.48

CAP Rate: --

GRM: --


Year Built: 1951 & 1952

UNDERWRITING CRITERIA - (SOLD VACANT)

Income -- Expenses --

NOI -- Vacancy --

22049 GARNET AVESAN DIEGO, CA 92109

UNITS UNIT TYPE



Price/Unit: $325,00 1 Studio 1 Bath

Price/SF: $506.92

CAP Rate: 3.00%

GRM:

# of Units: 4

Year Built: 1980



NOI $37,825 Vacancy $1,890

4121 KENDALL STSAN DIEGO, CA 92109

UNITS UNIT TYPE

On Market 8 Studio 1 Bath

Sales Price: $2,100,000


Price/SF: $875.00

CAP Rate: 4.4%

GRM: --


Year Built: 1959


Income -- Expenses $53,091

NOI $93,020 Vacancy --

3 51415 GRAND AVESAN DIEGO, CA 92109

UNITS UNIT TYPE


Sales Price: $3,012,500


Price/SF: $809.81

CAP Rate: 4.00%

GRM: 20.86


Year Built: 1959


Income -- Expenses $58,080

NOI $92,750 Vacancy --

3989 HAINES ST SAN DIEGO, CA 92109

UNITS UNIT TYPE

On Market 8 Studio 1 Bath



Price/SF: $492.61

CAP Rate: 3.32%

GRM: 15.86


Year Built: 1957



NOI $67,692 Vacancy $6,129

4

SALES COMPS

4286 MORRELL STREETSAN DIEGO, CA 92109

UNIT TYPE UNITS SF RENT RENT/SF

Studio 6 260 $980-1,100 $3.92

Total/Avg. 6 1,560 $1,020 $3.92

YEAR BUILT: 1953

1 3239 MISSION BOULEVARDSAN DIEGO, CA 92109


Studio 12 550$1,300-$1,400

$2.45

Total/Avg. 12 550 $1,350 $2.45

YEAR BUILT: 1960

2 1845 HORNBLEND STREETSAN DIEGO, CA 92109


Studio 1 425 $1,450 $3.41

Total/Avg. 1 425 $1,450 $3.41

YEAR BUILT: 1960

NOTES:

Onsite LaundryUnderground Parking

RENT COMPS

1251 HORNBLEND STREETSAN DIEGO, CA 92109


Studio 1 400 $1,395 $3.49

Total/Avg. 1 400 $1,395 $3.49

YEAR BUILT: 1960

4 3433 RIVIERA DRIVESAN DIEGO, CA 92109


Studio 1 300 $1,700 $5.67

Total/Avg. 1 300 $1,700 $5.67

YEAR BUILT: 1945

NOTES:

Washer / Dryer in Unit

3 4015 CROWN POINT DRIVESAN DIEGO, CA 92109


Studio 1 434 $1,300 $3.00

Total/Avg. 1 434 $1,300 $3.00

YEAR BUILT: 1973

NOTES:

FurnishedPool & Jacuzzi

5

RENT COMPS

6 2886 MISSION BOULEVARDSAN DIEGO, CA 92109


Studio 1 200 $1,225 $6.13

Total/Avg. 1 200 $1,225 $6.13

YEAR BUILT: 1927

6 1415 GRAND AVESAN DIEGO, CA 92109


Studio 12 310 $1,300 -1,400 $4.35

Total/Avg. 12 310 $1,350 $4.35

YEAR BUILT: 1959

NOTES:

Stainless steel kitchen appliancesQuartz countertopsFaux wood flooringNew windows

RENT COMPS

C O N F I D E N T I A L I T Y A G R E E M E N T

ABSOLUTELY NO PROPERTY TOURS OR DISCUSSIONS WITH TENANTS WITHOUT WRITTEN CONSENT

The information contained in the following offering memorandum is proprietary and strict-ly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Mar-cus & Millichap. 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 inter-est in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

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. 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, PCBs or asbes- tos, the compliance with local, 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 informa-tion contained in this offering memorandum has been obtained from sources we believe to be reli-able; 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 mat- ters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information pro-vided. 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.

16

VINCENT KRANTZ RAYMOND CHOIASSOCIATE

NATIONAL MULTI HOUSING GROUP4660 LA JOLLA VILLAGE DR, STE 900, SAN DIEGO, CA 92122

858-373-3180 DIRECT | 310-408-7731 [email protected]

LICENSE: CA: 01976199

SENIOR VICE PRESIDENT INVESTMENTSDIRECTOR, NATIONAL MULTI HOUSING GROUP

4660 LA JOLLA VILLAGE DR, STE 900, SAN DIEGO, CA 92122858-373-3136 DIRECT | 858-735-6632 [email protected]

LICENSE: CA: 01297138

pacific beach 4286 morrel st · 2018. 9. 5. · have been upgraded with new cabinetry,...

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