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4 Units | 1365-73 Holly Ave, Imperial Beach, CA, 91932
OFFER
ING
MEM
OR
AND
UM
4 Units | Imperial Beach
4 Units CONTENTS
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 otherconditions, 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 the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.
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 Financial Analysis Income & Expense Analysis 45 Cash Flow Analysis 46 4U 1365 Holly Ave Imperial Beach $1 48
04 Demographics Demographics 50 Demographic Charts 52
Exclusively Marketed by:
Jeff DillerSenior Associate619-501-9070License # BRE# [email protected]
Exclusively Marketed by:
Abe PeaySenior Associate858-284-0371License # BRE#01935689
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 South Coast Commercial Inc.and it should not be made available to any other person or entity without the written consent of South Coast Commercial Inc..
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 thatrecipient 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 South CoastCommercial Inc.. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. South Coast Commercial Inc. has not made any investigation, and makes no warranty orrepresentation 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 andimprovements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvementsthereon, 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, South Coast Commercial Inc. has not verified, and will not verify, any of theinformation contained herein, nor has South Coast Commercial Inc. conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding theaccuracy 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 responsiblefor their costs and expenses of investigating the subject property.
4 Units Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT SOUTH COAST COMMERCIAL INC. FOR MORE DETAILS.Copyright © 2020 CREOP, LLC. All Rights Reserved.
4 Units | Executive Sum
mary
Executive Summary 4 U
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Investment Summary
Unit Mix Summary
Location Summary
4 Units Investment Summary | 05
OFFERING SUMMARYADDRESS 1365-73 Holly Ave
Imperial Beach CA 91932MARKET Imperial BeachBUILDING SF 4,262 SFLAND SF 17,003NUMBER OF UNITS 4YEAR BUILT 1955OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARYOFFERING PRICE $1,400,000PRICE PSF $328.48PRICE PER UNIT $350,000OCCUPANCY 97.00 %NOI (CURRENT) $64,354NOI (Pro Forma) $87,634CAP RATE (CURRENT) 4.60 %CAP RATE (Pro Forma) 6.26 %GRM (CURRENT) 14.14GRM (Pro Forma) 11.38
PROPOSED FINANCINGLOAN TYPE AmortizedDOWN PAYMENT $300,000LOAN AMOUNT $1,100,000INTEREST RATE 3.85 %ANNUAL DEBT SERVICE $61,879LOAN TO VALUE 79 %AMORTIZATION PERIOD 30 Years
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2019 Population 27,398 16,334 102,2162019 Median HH Income $55,917 $0 $53,7112019 Average HH Income $71,261 $0 $69,179
We are pleased to present 1365 Holly Avenue, a (4) Unit investment property that consists of a sizable detached & privately fenced Three Bedroom / Two Bath SFR and (3) Two Bedroom / One Bath units, on a 17,000 SF lot. Occupants here enjoy their large open yard space, ample off-street parking, private individual washer/dryer hookups, and the ability to drive 5 minutes to the beach which is less than 2 miles away. Do not miss this opportunity to renovate and capture strong market rents.
Please feel free to drive by but DO NOT DISTURB TENANTS.
4 Units Unit Mix Summary | 06
Unit Mix # Units Current Rent Monthly Income Market Rent Market Income3 bd + 2 ba 1 $1,950 $1,950 $3,200 $3,2002 bd + 1 ba 3 $1,500 $4,500 $1,750 $5,250
Totals/Averages 4 $1,725 $6,450 $2,475 $8,450
4 Units Location Summary | 07
• Imperial Beach, the most southwesterly city in the continental United States. Flanked by the Pacific Ocean and South San Diego Bay, our town is nestled between miles of uncrowded beaches, big surf and unparalleled open space and wetlands teeming with wildlife. Because this town is one of the last untouched beach towns in Southern California, we are known as Classic Southern California. There is much to see and do in Imperial Beach from swimming or surfing at the beach, to a walking tour of public art, to a nature walk and bird watching experience at the world-renowned Tijuana Estuary or to simply relax and enjoy our beautiful sunsets.
Regional Map
Locator Map
4 Units | Property D
escription
Property Description 4 U
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Property Features
Aerial Map
Parcel Map
Additional Maps
Pictures with Captions
4 Units Property Features | 09
PROPERTY FEATURESNUMBER OF UNITS 4BUILDING SF 4,262LAND SF 17,003YEAR BUILT 1955# OF PARCELS 1TOPOGRAPHY FlatNUMBER OF STORIES 1NUMBER OF BUILDINGS 3PARKING RATIO 2:1WASHER/DRYER In Unit
UTILITIESWATER OwnerTRASH OwnerGAS TenantELECTRIC Tenant
CONSTRUCTIONFOUNDATION SlabFRAMING WoodEXTERIOR StuccoPARKING SURFACE ConcreteROOF Composite/PitchedLANDSCAPING Mature
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4 Units | Financial A
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Financial Analysis 4 U
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Income & Expense
Multiyear Cash Flow Projections
4U 1365 Holly Ave Imperial Beach $1
4 Units Income & Expense Analysis | 45
INCOME CURRENT PRO FORMA
Gross Potential Rent $77,400 $101,400
Boot Income $21,600 $21,600
Gross Potential Income $99,000 $123,000
Less: General Vacancy $2,322 $3,042
Effective Gross Income $96,678 $119,958
Less: Expenses $32,324 $32,324
Net Operating Income $64,354 $87,634
Annual Debt Service $61,879 $61,879
Debt Coverage Ratio 1.04 1.42
Cash Flow After Debt Service $2,475 $25,755
Principal Reduction $19,529 $19,529
Total Return 7.3 % $22,004 15.1 % $45,284
EXPENSES CURRENT PRO FORMA
Gas & Electric $1,050 $4,200 $1,050 $4,200
Water & Sewer $1,050 $4,200 $1,050 $4,200
Trash Removal $501 $2,004 $501 $2,004
Pest Control $75 $300 $75 $300
Maintenance $500 $2,000 $500 $2,000
Insurance $600 $2,400 $600 $2,400
Taxes $4,305 $17,220 $4,305 $17,220
Total Operating Expense $8,081 $32,324 $8,081 $32,324
Annual Debt Service $15,470 $61,879 $15,470 $61,879
Expense / SF $7.58 $7.58
% of EGI 33.43 % 26.95 %
Per Unit Per Unit
REVENUE ALLOCATIONCURRENT
DISTRIBUTION OF EXPENSESCURRENT
4 Units Cash Flow Analysis | 46
CASH FLOWCalendar Year CURRENT Pro Forma Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $77,400 $101,400 $106,470 $111,794 $117,383 $123,252 $129,415 $135,886 $142,680 $149,814Boot Income $21,600 $21,600 $21,600 $21,600 $21,600 $21,600 $21,600 $21,600 $21,600 $21,600Gross Potential Income $99,000 $123,000 $128,070 $133,394 $138,983 $144,852 $151,015 $157,486 $164,280 $171,414General Vacancy $2,322 $3,042 $3,194 $3,354 $3,521 $3,698 $3,882 $4,077 $4,280 $4,494Effective Gross Income $96,678 $119,958 $124,876 $130,040 $135,462 $141,155 $147,133 $153,409 $160,000 $166,920Operating ExpensesGas & Electric $4,200 $4,200 $4,326 $4,456 $4,589 $4,727 $4,869 $5,015 $5,165 $5,320Water & Sewer $4,200 $4,200 $4,326 $4,456 $4,589 $4,727 $4,869 $5,015 $5,165 $5,320Trash Removal $2,004 $2,004 $2,064 $2,126 $2,190 $2,256 $2,323 $2,393 $2,465 $2,539Pest Control $300 $300 $309 $318 $328 $338 $348 $358 $369 $380Maintenance $2,000 $2,000 $2,060 $2,122 $2,185 $2,251 $2,319 $2,388 $2,460 $2,534Insurance $2,400 $2,400 $2,472 $2,546 $2,623 $2,701 $2,782 $2,866 $2,952 $3,040Taxes $17,220 $17,220 $17,220 $17,220 $17,220 $17,220 $17,220 $17,220 $17,220 $17,220Total Operating Expense $32,324 $32,324 $32,777 $33,244 $33,725 $34,220 $34,730 $35,255 $35,796 $36,353Net Operating Income $64,354 $87,634 $92,099 $96,796 $101,737 $106,935 $112,403 $118,154 $124,204 $130,566Annual Debt Service $61,879 $61,879 $61,879 $61,879 $61,879 $61,879 $61,879 $61,879 $61,879 $61,879Cash Flow $2,475 $25,755 $30,220 $34,917 $39,858 $45,056 $50,524 $56,275 $62,325 $68,687
Effective Gross Income vs Operating Expenses Cash Flow
4 Units Cash Flow Analysis | 47
Calendar Year CURRENT Pro Forma Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 0.82 % 8.58 % 10.07 % 11.64 % 13.29 % 15.02 % 16.84 % 18.76 % 20.77 % 22.89 %CAP Rate 4.60 % 6.26 % 6.58 % 6.91 % 7.27 % 7.64 % 8.03 % 8.44 % 8.87 % 9.33 %Debt Coverage Ratio 1.04 1.42 1.49 1.56 1.64 1.73 1.82 1.91 2.01 2.11Operating Expense Ratio 33.43 % 26.94 % 26.24 % 25.56 % 24.89 % 24.24 % 23.60 % 22.98 % 22.37 % 21.77 %Gross Multiplier (GRM) 14.14 11.38 10.93 10.50 10.07 9.67 9.27 8.89 8.52 8.17Loan to Value 78.63 % 77.15 % 75.69 % 74.09 % 72.57 % 70.90 % 69.17 % 67.37 % 65.49 % 63.60 %Breakeven Ratio 97.44 % 78.53 % 75.80 % 73.15 % 70.58 % 68.08 % 65.66 % 63.32 % 61.05 % 58.85 %Price / SF $328.48 $328.48 $328.48 $328.48 $328.48 $328.48 $328.48 $328.48 $328.48 $328.48Price / Unit $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000Income / SF $22.68 $28.14 $29.29 $30.51 $31.78 $33.11 $34.52 $35.99 $37.54 $39.16Expense / SF $7.58 $7.58 $7.69 $7.80 $7.91 $8.02 $8.14 $8.27 $8.39 $8.52
# Units Zip
4 91932
Current Market Current Market14.1 11.4 4.6% 6.3%
Gross Sq. Ft. Parcel Size(Approx.) (Approx.) (Approx.)$328.48 4,262 17,003
# Units Type Rent TotalRent Range Gas & Electric $4,200 Management
Water & Sewer $4,200 Insurance $2,4001 3Bed/2Bath SFR $1,950 $1,950 1179-1575 Trash Removal $2,004 Taxes $17,2203 2Bed/1Bath $1,500 $4,500 1500-1995 Maintenance $2,000
Pest $300
boot income $1,800Total Monthly Income $8,250
Total Annual Operating Expenses (estimated): $32,324
1 3Bed/2Bath SFR $3,200 $3,200 Expenses Per: Unit $8,0813 2Bed/1Bath $1,750 $5,250 % of Actual GSI 33%
boot income $1,800Total Monthly Income $10,250Estimated Annual Operating Proforma Financing Summary
Actual MarketGross Scheduled Income $99,000 $123,000 Downpayment: $300,000Less: Vacancy Factor 2% $1,980 $2,460 21%Gross Operating Income $97,020 $120,540 Interest Rate: 3.850%Less: Expenses 33% $32,324 $32,324 Amortized over: 30 YearsNet Operating Income $64,696 $88,216 Proposed Loan Amount: $1,100,000
Less: 1st TD Payments ($61,883) ($61,883) Debt Coverage Ratio:Current: 1.05
Pre-Tax Cash Flow $2,813 $26,333 Market: 1.43Cash On Cash Return 0.9% 8.8%Principal Reduction $19,533 $19,533Total Potential Return (End of Year One) 7.4% 15.3%
The information contained herein has been obtained from sources believed reliable. While South Coast Commercial does not doubt its accuracy, we have not verified it and make no guarantee,
warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates are used for
example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax, financial and legal advisors. You and your
Map Code
$1,400,000
Address CityImperial Beach
GRM CAP Rate$/UnitPrice
APARTMENT INVESTMENT INFORMATION
advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
Comments
Estimated Annual Operating Expenses
Yr. Built(Approx.)
1955
1365-73 Holly Ave
$/Square Foot
$350,000.00
Estimated Market Rents
Estimated Actual Average Rents
4 Units 4U 1365 Holly Ave Imperial Beach $1 | 48
4 Units | D
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Demographics 4 U
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Demographic Details
Demographic Charts
4 Units Demographics | 50
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 26,142 0 96,833
2010 Population 25,966 0 97,803
2019 Population 27,398 16,334 102,216
2024 Population 28,002 0 104,130
2019 African American 1,108 0 3,366
2019 American Indian 247 0 747
2019 Asian 2,927 0 8,694
2019 Hispanic 16,722 0 72,807
2019 Other Race 6,431 0 27,225
2019 White 14,674 0 56,179
2019 Multiracial 1,856 0 5,535
2019-2024: Population: Growth Rate 2.20 % 0.00 % 1.85 %
2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 816 0 3,124
$15,000-$24,999 673 0 2,759
$25,000-$34,999 774 0 3,107
$35,000-$49,999 1,342 0 4,984
$50,000-$74,999 1,741 0 6,074
$75,000-$99,999 1,256 0 4,424
$100,000-$149,999 1,130 0 3,752
$150,000-$199,999 343 0 1,503
$200,000 or greater 260 0 789
Median HH Income $55,917 $0 $53,711
Average HH Income $71,261 $0 $69,179
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 8,212 0 30,130
2010 Total Households 7,941 0 29,301
2019 Total Households 8,335 4,681 30,515
2024 Total Households 8,485 0 30,983
2019 Average Household Size 3.26 3.50 3.32
2000 Owner Occupied Housing 3,013 0 13,157
2000 Renter Occupied Housing 4,989 0 15,935
2019 Owner Occupied Housing 3,185 0 13,271
2019 Renter Occupied Housing 5,150 0 17,244
2019 Vacant Housing 388 0 1,501
2019 Total Housing 8,723 0 32,016
2024 Owner Occupied Housing 3,292 0 13,704
2024 Renter Occupied Housing 5,193 0 17,279
2024 Vacant Housing 398 0 1,545
2024 Total Housing 8,883 0 32,528
2019-2024: Households: Growth Rate 1.80 % 0.00 % 1.50 %
Source: esri
4 Units Demographics | 51
2019 POPULATION BY AGE 1 MILE 3 MILE 5 MILE
2019 Population Age 30-34 2,366 0 8,453
2019 Population Age 35-39 1,839 0 6,711
2019 Population Age 40-44 1,494 0 5,547
2019 Population Age 45-49 1,537 0 5,753
2019 Population Age 50-54 1,443 0 5,587
2019 Population Age 55-59 1,503 0 5,694
2019 Population Age 60-64 1,497 0 5,516
2019 Population Age 65-69 1,090 0 4,377
2019 Population Age 70-74 754 0 3,308
2019 Population Age 75-79 514 0 2,246
2019 Population Age 80-84 367 0 1,530
2019 Population Age 85+ 375 0 1,443
2019 Population Age 18+ 20,390 0 77,199
2019 Median Age 32 0 33
2019 INCOME BY AGE 1 MILE 3 MILE 5 MILE
Median Household Income 25-34 $59,821 $0 $59,484
Average Household Income 25-34 $71,860 $0 $72,263
Median Household Income 35-44 $66,273 $0 $60,503
Average Household Income 35-44 $80,874 $0 $76,446
Median Household Income 45-54 $64,245 $0 $63,072
Average Household Income 45-54 $81,810 $0 $79,948
Median Household Income 55-64 $59,837 $0 $57,510
Average Household Income 55-64 $74,798 $0 $71,921
Median Household Income 65-74 $44,477 $0 $42,971
Average Household Income 65-74 $60,894 $0 $59,236
Average Household Income 75+ $44,497 $0 $44,063
2024 POPULATION BY AGE 1 MILE 3 MILE 5 MILE
2024 Population Age 30-34 2,467 0 8,895
2024 Population Age 35-39 2,311 0 8,178
2024 Population Age 40-44 1,776 0 6,558
2024 Population Age 45-49 1,480 0 5,495
2024 Population Age 50-54 1,467 0 5,606
2024 Population Age 55-59 1,374 0 5,328
2024 Population Age 60-64 1,436 0 5,417
2024 Population Age 65-69 1,284 0 4,873
2024 Population Age 70-74 922 0 3,839
2024 Population Age 75-79 621 0 2,812
2024 Population Age 80-84 384 0 1,721
2024 Population Age 85+ 374 0 1,560
2024 Population Age 18+ 21,004 0 79,188
2024 Median Age 34 0 35
2024 INCOME BY AGE 1 MILE 3 MILE 5 MILE
Median Household Income 25-34 $64,638 $0 $63,929
Average Household Income 25-34 $79,373 $0 $79,417
Median Household Income 35-44 $74,831 $0 $68,329
Average Household Income 35-44 $90,096 $0 $86,465
Median Household Income 45-54 $70,969 $0 $69,489
Average Household Income 45-54 $93,184 $0 $90,138
Median Household Income 55-64 $64,659 $0 $62,073
Average Household Income 55-64 $84,498 $0 $80,821
Median Household Income 65-74 $48,648 $0 $46,677
Average Household Income 65-74 $68,747 $0 $67,017
Average Household Income 75+ $50,381 $0 $49,642
4 Units Demographic Charts | 52
1 Mile Radius 3 Mile Radius 5 Mile Radius
2019 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2019 Population by Race
4 Units Demographic Charts | 53
2019 Household Occupancy - 1 Mile Radius
Average Income Median Income
2019 Household Income Average and Median
4 Units
powered by CREOP
License # BRE#[email protected]
858-284-0371
Exclusively Marketed by:
Abe PeaySenior Associate
Exclusively Marketed by:
Jeff DillerSenior Associate619-501-9070License # BRE# [email protected]
