OCEAN PALMS APARTMENTS · 2020-03-09 · OCEAN PALMS APARTMENTS TABLE OF CONTENTS I. INVESTMENT SUMMARY 3 II. LOCATION INFORMATION 14 III. FINANCIAL ANALYSIS 19 IV. SALE COMPARABLES

O C E A N PA L M S A PA R T M E N T S1 3 4 6 - 7 4 G R A N D AV E / SAN DIEGO, CA 92109

M A R C H 0 9 , 2 0 2 0O F F E R I N G M E M O R A N D U M

O C E A N PA L M S A PA R T M E N T S

TA B L E O F C O N T E N T S

I. INVESTMENT SUMMARY 3

II. LOCATION INFORMATION 14

III. FINANCIAL ANALYSIS 19

IV. SALE COMPARABLES 26

V. RENT COMPARABLES 31

VI. DEMOGRAPHICS 36

ContentsConfidentiality & DisclaimerAll materials and information received or derived from ACRE Investment Real Estate Services,LLC its directors, officers, agents, advisors, affiliates and/or any third party sources are providedwithout representation or warranty as to completeness , veracity, or accuracy, condition of theproperty, compliance or lack of compliance with applicable governmental requirements,developability or suitability, financial performance of the property, projected financialperformance of the property for any party’s intended use or any and all other matters.

Neither ACRE Investment Real Estate Services, LLC its directors, officers, agents, advisors, oraffiliates makes any representation or warranty, express or implied, as to accuracy orcompleteness of the any materials or information provided, derived, or received. Materials andinformation from any source, whether written or verbal, that may be furnished for review are nota substitute for a party’s active conduct of its own due diligence to determine these and othermatters of significance to such party. ACRE Investment Real Estate Services, LLC will notinvestigate or verify any such matters or conduct due diligence for a party unless otherwiseagreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify allinformation and to conduct their own inspections and investigations including throughappropriate third party independent professionals selected by such party. All financial datashould be verified by the party including by obtaining and reading applicable documents andreports and consulting appropriate independent professionals. ACRE Investment Real EstateServices, LLC makes no warranties and/or representations regarding the veracity, completeness,or relevance of any financial data or assumptions. ACRE Investment Real Estate Services, LLCdoes not serve as a financial advisor to any party regarding any proposed transaction. All dataand assumptions regarding financial performance, including that used for financial modelingpurposes, may differ from actual data or performance. Any estimates of market rents and/orprojected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual andgovernmental limitations as well as market conditions,vacancy factors and other issues in orderto determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should bediscussed by the party with a certified public accountant or tax attorney. Title questions shouldbe discussed by the party with a title officer or attorney. Questions regarding the condition ofthe property and whether the property complies with applicable governmental requirementsshould be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by ACREInvestment Real Estate Services, LLC in compliance with all applicable fair housing and equalopportunity laws.

II | INVESTMENT SUMMARYA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S

2365 NORTHSIDE DRIVE STE 120 | SAN DIEGO, CA 92108WWW.ACRECOMMERCIAL.COM

D Y L A N W R I G H T D A V E A N D R E W S

619.255.3233 858.414.6485

[email protected] [email protected]

1 3 4 6 - 7 4 G R A N D A V E , S A N D I E G O , C A 9 2 1 0 9 I N V E S T M E N T S U M M A R Y | 4O F F E R I N G M E M O R A N D U M

Ocean Palms is a well-maintained apartment community located just 5 blocks to the beach in the highlydesirable Pacific Beach sub-market of San Diego, California. Pacific Beach is considered one of the strongestrental markets in San Diego County, with great demand for apartment rentals. Historical occupancy in thissub-market is estimated to be approximately 97% - 100% and rental rates continue to rise. This vibrant andcentrally located beach community offers excellent access to Interstate 5 and Interstate 8 freeways, whichconnect to every major employment center in the greater San Diego area.

The property was built in 1957 and is comprised of 1 one-bedroom / one-bathroom unit of approximately 560square feet, 23 two-bedroom / one-bathroom units of approximately 700 - 745 square feet and 2 two-bedroom /two-bathroom units on approximately 865 square feet. The newly renovated interiors include spaciousand efficient floor plans, granite counter tops, upgraded flooring and fixtures, all new cabinets (select units), allnew tiled showers (select units) and new appliances (select units). The exterior of the property features all newpaint, new vinyl windows, 18 surface parking spaces and 8 single-car garages. The property also features on-sitelaundry facilities and is walking distance to the vibrant Garnet Avenue Business District including major retailerssuch as Ralph's, Trader Joe's, CVS, Starbucks and various local restaurants.

UNIT SQUARE FOOTAGE AND BUILDING SIZE IS ESTIMATED. BUYER TO VERIFY ON THEIR OWN.

PROPERTY OVERVIEWOFFERING SUMMARYSale Price: $10,750,000

Number Of Units: 26

Price / Unit: $413,462

Price / SF: $567.88

Cap Rate (Actual): 3.44%

Cap Rate (Pro Forma): 4.67%

Building Size: 18,930

Lot Size: 0.5 Acres

Year Built: 1957


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


SALE PRICE $10,750,000

LOCATION INFORMATION

Building Name Ocean Palms Apartments

Street Address 1346-74 Grand Ave

City, State, Zip San Diego, CA 92109

County San Diego

Sub-market Pacific Beach

BUILDING INFORMATION

Cap Rate 3.44% Actual / 4.67% Pro Forma

Occupancy % 100.0%

Number Of Floors 2

Year Built 1957

Year Last Renovated 2018

Roof Pitched

Number Of Buildings 4

PROPERTY INFORMATION

Property Subtype Low-Rise/Garden

APN # 423-171-23-00

Lot Size 0.5 Acres

PARKING DESCRIPTION

Single-Car Garages 8

Surface Spaces 18

UTILITIES & AMENITIES

Water & Sewer Paid By Owner

Trash Service Paid By Owner

Gas & Electric Paid By Tenant

Cable TV Paid By Tenant

Internet Paid By Tenant


P R O P E R T Y D E TA I L S


• Irreplaceable Pacific Beach Location• Recently Remodeled Units and Exterior• 5 Blocks to the Beach / 2 Blocks to Garnet Avenue Business District• Well-Maintained - Pride of Ownership Community• Close Proximity to Restaurants, Shopping and Entertainment

Turn Key Investment

Ocean Palms underwent a major interior and exterior renovation within the past 24months. Exterior improvements include all new paint, vinyl windows and upgradedlandscaping. Interior upgrades include granite counter tops, upgraded flooring and fixtures,all new cabinets (select units) all new tiled showers, and new appliances. A new owner willbenefit from this renovation through lower future capital expenditures and the ability tooffer higher quality improvements to prospective renters. This will allow Ocean Palms toremain "best in class' when compared with it's direct competitors.

Proximity to Retail and Job Centers

Walking distance from the property, there is convenient shopping and entertainmentnearby along Garnet Avenue including retailers such as Sprouts, Ralphs, CVS and Starbucks.The property is also located within close proximity to Interstates 5 & 8 providing directaccess to all major San Diego County employment centers and Downtown San Diego.

High-Demand Rental Market

The sub-market of Pacific Beach is one of the strongest and most desirable rental marketsin the central San Diego area. Due to its mass appeal and close proximity to beaches, majorjob centers and necessary conveniences, vacancy rates in the area continue to drop, puttingupward pressure on rents. Additionally, there are a limited number of high-end rental unitsin the Pacific Beach sub-market with the area median home value being over $1,000,000.The subject property will always be in high demand as it provides a source of affordablehousing in an otherwise unattainable living area for most individuals.

INVESTMENT OVERVIEW


I N V E S T M E N T O V E R V I E W


Current ownership has upgraded 100% of the unit interiors over the past 24 months. Theexterior and common areas of the property have also been upgraded, which has createdgreat curb appeal and a comfortable living environment for the residents. A new owner willbenefit from this renovation through lower future capital expenditures and the ability tooffer higher quality improvements to prospective renters. This will allow Ocean Palms toremain "best in class' when compared with it's direct competitors.

RECENT CAPITAL IMPROVEMENTS

RECENT INTERIOR IMPROVEMENTS• All new granite counter tops

• All new kitchen cabinets (select units)

• Upgraded bathrooms with new tiled shower enclosure and new vanity (select units)

• All new carpet in bedroom and tile in kitchen and bathroom

• All new appliances and fixtures (select units)

RECENT COMMUNITY IMPROVEMENTS• All new exterior paint

• All new vinyl windows

• Upgraded landscaping and exterior lighting


R E C E N T C A P I TA L I M P R O V E M E N T S


PROPERTY HIGHLIGHTS

• Irreplaceable Pacific Beach Location

• Recent Interior and Exterior Remodel - ALL UNITS

• Walk to Pacific Beach and Garnet Avenue

• Strong Historical Occupancy

• Close Proximity Restaurants, Shopping, and Entertainment

ECONOMIC HIGHLIGHTS

• Pacific Beach is one of the most desirable rental markets in San

Diego County

• Average occupancy rates in the sub-market are 97% - 100%

• Median home value of over $1,000,000 in 92109 zip code

• Three major colleges (SDSU, USD, UCSD) located within a 15 mile

radius, with combined student enrollment of over 77,000


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


• Excellent Pacific Beach Location

• Well-Maintained - Boutique Community

• Walk to Pacific Beach and Mission Bay

• All New Paint, Vinyl Windows and Upgraded Landscaping

• 8 Single-Car Garages and 18 surface Parking Spaces

• 2 Onsite Laundry Rooms & 4 Storage Areas

PROPERTY AMENITIES

• Recently Renovated Interiors

• All new kitchen cabinets (select units)

• Granite Counter Tops

• Upgraded Flooring and Fixtures

• All New Appliances (select units)

• Spacious and Efficient Floor Plans

UNIT AMENITIES


A M E N I T I E S

1 3 4 6 - 7 4 G R A N D A V E , S A N D I E G O , C A 9 2 1 0 9 I N V E S T M E N T S U M M A R Y | 1 0O F F E R I N G M E M O R A N D U M


P R O P E R T Y P H O T O S










I II I | LOCATION INFORMATIONA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.3233 858.414.6485


1 3 4 6 - 7 4 G R A N D A V E , S A N D I E G O , C A 9 2 1 0 9 L O C A T I O N I N F O R M A T I O N | 1 5O F F E R I N G M E M O R A N D U M

Pacific Beach affords its residents every desired convenience from beaches,shopping,restaurants, and entertainment to schools, parks, and other communityservices. In addition to these amenities, there are dozens of community fixtures near theproperty. There are three major universities located a short distance from the property(University of San Diego, San Diego State University and UC San Diego). Additionally,Pacific Beach is centrally located just minutes to Downtown San Diego, San DiegoInternational Airport, Mission Valley and all major job San Diego County job centers. Someof San Diego’s most popular places to visit are located within minutes of the property;attractions that are favorites to locals and visitors alike. Mission Bay is a few blocks fromthe property and covers over 4,200 acres, including 27 miles of shoreline – 19 of whichare sandy beaches.

LOCATION OVERVIEW DEMOGRAPHICS

0.5 MILES 1 MILE 1.5 MILES

Total Households 5,668 16,736 22,496

Total Population 10,234 30,705 42,429

Average HH Income $74,213 $81,270 $84,242


L O C AT I O N O V E R V I E W



R E G I O N A L M A P



A E R I A L M A P



R E TA I L E R M A P

I I II I I | F INANCIAL ANALYSISA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.3233 858.414.6485


1 3 4 6 - 7 4 G R A N D A V E , S A N D I E G O , C A 9 2 1 0 9 F I N A N C I A L A N A L Y S I S | 2 0O F F E R I N G M E M O R A N D U M

*Onsite manager is occupying the 1 bedroom unit and is receiving free rent as compensation. We have given full rent credit to that unit and have booked onsite manager compensation as apayroll expense.

UNITBED

UNITBATH

UNITSIZE (SF)

CURRENTRENT

CURRENTRENT / SF

MARKETRENT

MARKETRENT / SF

1 1 560 $1,700 $3.04 $1,700 $3.04

2 1 700 $1,900 $2.71 $2,350 $3.36

2 1 700 $1,900 $2.71 $2,350 $3.36

2 1 700 $1,900 $2.71 $2,350 $3.36

2 1 700 $1,900 $2.71 $2,350 $3.36

2 1 700 $1,900 $2.71 $2,350 $3.36

2 1 700 $1,975 $2.82 $2,350 $3.36

2 1 700 $2,250 $3.21 $2,350 $3.36

2 1 700 $2,250 $3.21 $2,350 $3.36

2 1 700 $2,250 $3.21 $2,350 $3.36

2 1 700 $2,250 $3.21 $2,350 $3.36

2 1 700 $2,250 $3.21 $2,350 $3.36

2 1 745 $1,875 $2.52 $2,400 $3.22

2 1 745 $1,900 $2.55 $2,400 $3.22

2 1 745 $1,900 $2.55 $2,400 $3.22

2 1 745 $1,900 $2.55 $2,400 $3.22


R E N T R O L L


*Onsite manager is occupying the 1 bedroom unit and is receiving free rent as compensation. We have given full rent credit to that unit and have booked onsite manager compensation as apayroll expense.

UNITBED

UNITBATH

UNITSIZE (SF)

CURRENTRENT

CURRENTRENT / SF

MARKETRENT

MARKETRENT / SF

2 1 745 $1,900 $2.55 $2,400 $3.22

2 1 745 $1,900 $2.55 $2,400 $3.22

2 1 745 $1,900 $2.55 $2,400 $3.22

2 1 745 $1,925 $2.58 $2,400 $3.22

2 1 745 $1,950 $2.62 $2,400 $3.22

2 1 745 $2,000 $2.68 $2,400 $3.22

2 1 745 $2,100 $2.82 $2,400 $3.22

2 1 745 $2,350 $3.15 $2,400 $3.22

2 2 865 $2,195 $2.54 $2,550 $2.95

2 2 865 $2,200 $2.54 $2,550 $2.95

18,930 $52,420 $2.77 $61,450 $3.25


R E N T R O L L


INCOME SUMMARY MARKET CURRENT

Scheduled Rent $737,400 $629,040Laundry Income $5,000 $2,400Garage Income $19,200 $0Utility Reimbursement $12,500 $0

Gross Income $774,100 $631,440

EXPENSE SUMMARY MARKET CURRENT

Property Taxes (1.232%) $132,440 $132,440Insurance $8,800 $8,800Repairs & Maintenance $20,000 $20,000Contract Services $12,500 $12,500Utilities $25,000 $25,000Off Site Management $37,599 $30,628On Site Management $10,200 $10,200Administrative $3,000 $3,000

Gross Expenses $249,539 $242,568

Net Operating Income $502,439 $370,000


I N C O M E & E X P E N S E S


Financing Data: Assumes that buyer obtains a new $6,000,000 loan at 3.40% and makes interest-only payments.

INVESTMENT OVERVIEW MARKET CURRENT

Price $10,750,000 $10,750,000Price per Unit $413,461 $413,461GRM 15.76 17.09CAP Rate 4.67% 3.44%Cash-on-Cash Return (yr 1) 6.41 % 3.62 %Total Return (yr 1) $304,439 $172,000

OPERATING DATA MARKET CURRENT

Gross Scheduled Income $737,400 $629,040Other Income $36,700 $2,400Total Scheduled Income $774,100 $631,440Vacancy Cost $22,122 $18,871Gross Income $751,978 $612,568Operating Expenses $249,539 $242,568Net Operating Income $502,439 $370,000Pre-Tax Cash Flow $304,439 $172,000

FINANCING DATA MARKET CURRENT

Down Payment $4,750,000 $4,750,000Loan Amount $6,000,000 $6,000,000Debt Service $198,000 $198,000


F I N A N C I A L S U M M A R Y

OPERATING INCOME

Scheduled Rent

Scheduled Rent is arrived at by annualizing the current rent roll. It is assumed that the onsite manager is paying full market rent, and his compensation will be booked as a payroll expense. Pro Forma market rent assumes that a new owner will raise rents to market level and eliminate loss to lease.

Other Income

Currently, the only source of additional income is revenue from the owned laundry equipment. Pro Forma Other Income is estimated to be $36,700 which assumes that a new owner will be able to increase this revenue stream, as well as bill tenants back for utilities and charge $200/month rent for the 8 single-car garages.

ECONOMIC LOSS

Vacancy Allowance

Current and Pro forma Vacancy is underwritten at 3%.

FIXED EXPENSES

Real Estate Taxes

Property taxes shall be re-assessed upon a sale at the ad valorem rate of 1.23199% based on the 2019 – 2020 Property Tax bill.

Property Insurance

Current and Pro forma Insurance expense is underwritten at $8,800 annually based on industry standards.



I N C O M E & E X P E N S E E X P L A N AT I O N

Utilities

Utilities are underwritten based on T-12 operations.

VARIABLE EXPENSES

Administrative

Current and Pro Forma Administrative costs are underwritten at $3,000 annually which is consistent with current operations.

Payroll

The resident manager is currently occupying the 1-bedroom unit and is receiving discounted rent as compensation. Current and Pro Forma payroll expense is underwritten at $10,200 annually and assumes that a future resident manager will receive a 50% discount off market rent as compensation.

Repairs and Maintenance

Current and Pro forma Repairs & Maintenance expense is underwritten at $20,000 annually. Historical Repairs and Maintenance costs were higher due to recent interior and exterior upgrades.

Contract Services

Current and Pro Forma Contract Services expense is underwritten at $12,500 annually. Contract Services includes trash disposal, landscaping, pest control, etc… The actual contract services expense is higher due the owner paying an above market rate for trash removal service. Our assumption is that a new owner will be able to enter into much more favorable ( and less expensive ) trash service contract.

Management Fee

Pro Forma Management Fee is underwritten at 5% of total collected income. This is consistent with industry standards.



I N C O M E & E X P E N S E E X P L A N AT I O N

IVIV | SALE COMPARABLESA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.3233 858.414.6485


1 3 4 6 - 7 4 G R A N D A V E , S A N D I E G O , C A 9 2 1 0 9 S A L E C O M P A R A B L E S | 2 7O F F E R I N G M E M O R A N D U M

SUBJECT PROPERTY

San Diego, CA 921091346-74 Grand Ave

$10,750,000Sale Price: 1957Year Built:18,930 SFBuilding SF: $567.88Price PSF:26No. Units: $413,462Price / Unit:3.44%Cap: 17.09GRM:$370,000NOI:

UNIT TYPE # UNITS % OF SIZE SF RENT RENT/SF

1 br / 1 ba 1 3.8 560 $1,700 $3.04

2 br / 1 ba 23 88.5 723 $2,014 $2.79

2 br / 2 ba 2 7.7 865 $2,198 $2.54

TOTAL/AVG 26 100% 727 $2,016 $2.77

Subject Property

1

$3,335,000Sale Price: 1970Year Built:5,400 SFBuilding SF: $617.59Price PSF:8No. Units: $416,875Price / Unit:3.06%Cap: 02/11/2020Closed:100%Occupancy: 19.4GRM:

UNIT TYPE # UNITS % OF

1 Bed / 1 Bath 5 62.5

2 Bed / 1 Bath 3 37.5

TOTAL/AVG 8 100%

Well-maintained property with no major upgrades at time ofsale. Two double-car garages.

REED AVENUE842 Reed AvenueSan Diego, CA 92109Status: Sold

1

2



2 Bed / 1 Bath 2 16.7

2 Bed / 1.5 Bath 8 66.7

2 Bed / 2 Bath 1 8.3

3 Bed / 1.5 Bath 1 8.3

TOTAL/AVG 12 100%

Property was fully renovated prior to sale and is just oneblock to Mission Bay.

RIVIERA MARINA3929 Gresham StreetSan Diego, CA 92109Status: Sold

2


S A L E C O M P S


3



2 Bed / 1 Bath 2 12.5

2 Bed / 1.5 Bath 14 87.5

TOTAL/AVG 16 100%

Well-maintained property but no major upgrades at time ofsale.

MISSION MANOR3820-3838 Haines StreetSan Diego, CA 92109Status: Sold

3

4


UNIT TYPE # UNITS % OF SIZE SF

1 Bed / 1 Bath 5 62.5 600

2 Bed / 1 Bath 3 37.5 750

TOTAL/AVG 8 100% 656

Well-maintained property but no major upgrades at time ofsale. Two double-car garages.

THOMAS AVENUE1440 Thomas AvenueSan Diego, CA 92109Status: Sold

4

5



1 Bed/1 Bath 17 70.8

2 Bed/1 Bath 4 16.7

2 Bed/2 Bath 2 8.3

3 Bed/2 Bath 1 4.2

TOTAL/AVG 24 100%

3 Units Completely Remodeled, Upside on Remaining Units.31 Parking Spaces & 3 Garages.

LA PLAYA CORONA1621 La Playa AveSan Diego , CA 92109Status: Sold

5


S A L E C O M P S


SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS

Ocean Palms Apartments1346-74 Grand Ave

San Diego, CA 92109

$10,750,000 18,930 SF $567.88 $413,462 3.44% 17.09 26

SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE

Reed Avenue842 Reed AvenueSan Diego, CA 92109

$3,335,000 5,400 SF $617.59 $416,875 3.06% 19.4 8 02/11/2020

Riviera Marina3929 Gresham StreetSan Diego, CA 92109

$7,950,000 12,078 SF $658.22 $662,500 3.77% 16.93 12 12/09/2019

Mission Manor3820-3838 Haines StreetSan Diego, CA 92109

$7,950,000 13,430 SF $591.96 $496,875 3.15% 17.72 16 08/28/2019

Thomas Avenue1440 Thomas AvenueSan Diego, CA 92109

$2,905,750 5,200 SF $558.80 $363,218 2.75% 22.06 8 07/26/2019

La Playa Corona1621 La Playa AveSan Diego , CA 92109

$9,037,500 17,600 SF $513.49 $376,562 3.41% 16.24 24 03/08/2019

PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE

Totals/Averages $6,235,650 10,742 SF $580.49 $458,503 3.23% 18.47 13.6

1

2

3

4

5


S A L E C O M P S S U M M A R Y


1346-74 Grand Ave | San Diego, CA 92109SUBJECT PROPERTY

1 842 Reed AvenueSan Diego, CA 92109

REED AVENUE 2 3929 Gresham StreetSan Diego, CA 92109

RIVIERA MARINA 3 3820-3838 Haines StreetSan Diego, CA 92109

MISSION MANOR 4 1440 Thomas AvenueSan Diego, CA 92109

THOMAS AVENUE

5 1621 La Playa AveSan Diego , CA 92109

LA PLAYA CORONA


S A L E C O M P S M A P

VV | RENT COMPARABLESA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.3233 858.414.6485


1 3 4 6 - 7 4 G R A N D A V E , S A N D I E G O , C A 9 2 1 0 9 R E N T C O M P A R A B L E S | 3 2O F F E R I N G M E M O R A N D U M

SUBJECT PROPERTY

San Diego, CA 921091346-74 Grand Ave

Lease Type: 1957Year Built:0.5 ACLot Size: 26No. Units:

$2.77Avg. Rent/SF: $2,016Avg. Rent:

727 SFAvg. Size:


1 br / 1 ba 1 3.8 560 $1,700 $3.04

2 br / 1 ba 23 88.5 723 $2,014 $2.79

2 br / 2 ba 2 7.7 865 $2,198 $2.54

TOTAL/AVG 26 100% 727 $2,016 $2.77

Subject Property

1

4,549 SFBldg Size: 0.21 ACLot Size:5No. Units: 100%Occupancy:$3.86Avg. Rent/SF: 750 SFAvg. Size:$2,895Avg. Rent:


2 Bed/1 Bath 1 100 750 $2,895 $3.86

TOTAL/AVG 1 100% 750 $2,895 $3.86

Concessions: NoneUpgrades: Yes, unit is fully upgradedRUBS: NoParking: Garage included in rent

THE PEARLE ON HAINES4211 Haines StreetSan Diego , CA 92109

1

2

1972Year Built: 5,380 SFBldg Size:0 ACLot Size: 8No. Units:100%Occupancy: $2.84Avg. Rent/SF:950 SFAvg. Size: $2,700Avg. Rent:


2 Bed / 1 Bath 1 100 950 $2,700 $2.84

TOTAL/AVG 1 100% 950 $2,700 $2.84

Concessions: NoneUpgrades: Yes, unit is fully upgradedRUBS: NoParking: 2 spaces

THOMAS AVENUE1440 Thomas AvenueSan Diego, CA 92109

2


R E N T C O M P S


3

1992Year Built: 23,268 SFBldg Size:1.04 ACLot Size: 24No. Units:96%Occupancy: $3.37Avg. Rent/SF:969 SFAvg. Size: $3,262Avg. Rent:


2 Bed / 2 Bath 12 50 940 $3,175 $3.38

2 Bed / 2 Bath 6 25 953 $3,250 $3.41

2 Bed / 2 Bath 6 25 1,045 $3,450 $3.30

TOTAL/AVG 24 100% 969 $3,262 $3.37

Concessions: 1/2 off 1st month with 1 year leaseUpgrades: Yes, high-end remodel with in-unit washer/dryerRUBS: Yes, tenants pay for W/S/TParking: 1 space per unit included in rent

DRIFTWOOD3956-3966 Shasta StreetSan Diego, CA 92109

3

4

1957Year Built: 18,700 SFBldg Size:0 ACLot Size: 25No. Units:98%Occupancy: $3.13Avg. Rent/SF:748 SFAvg. Size: $2,340Avg. Rent:


1 Bed / 1 Bath 4 16 550 $1,845 $3.35

2 Bed / 1 Bath 18 72 750 $2,375 $3.17

3 Bed / 1 Bath 3 12 1,000 $2,795 $2.80

TOTAL/AVG 25 100% 748 $2,340 $3.13

Concessions: NoneUpgrades: Yes, mid-level renovationRUBS: Yes, tenants pay for W/S/TParking: 1 space per unit

ELAN BAYLOFTS1450 Pacific Beach DriveSan Diego, CA 92109

4

5

1979Year Built: 3,968 SFBldg Size:0.14 ACLot Size: 4No. Units:100%Occupancy: $2.77Avg. Rent/SF:900 SFAvg. Size: $2,495Avg. Rent:


2 Bed / 1 Bath 1 100 900 $2,495 $2.77

TOTAL/AVG 1 100% 900 $2,495 $2.77

Concessions: NoneUpgrades: Yes, mid-level renovationRUBS: NoParking: 2 assigned spaces

REED AVENUE1143 Reed AvenueSan Diego, CA 92109

5


R E N T C O M P S


SUBJECT PROPERTY RENT/SF BLDG SF # OF UNITS OCCUPANCY %

Ocean Palms Apartments1346-74 Grand Ave

San Diego, CA 92109

$2.77 18,930 SF 26 100.0%

RENT COMPS RENT/SF BLDG SF # OF UNITS OCCUPANCY %

The Pearle on Haines4211 Haines StreetSan Diego , CA 92109

$3.86 4,549 SF 5 100%

Thomas Avenue1440 Thomas AvenueSan Diego, CA 92109

$2.84 5,380 SF 8 100%

Driftwood3956-3966 Shasta StreetSan Diego, CA 92109

$3.37 23,268 SF 24 96%

Elan Baylofts1450 Pacific Beach DriveSan Diego, CA 92109

$3.13 18,700 SF 25 98%

Reed Avenue1143 Reed AvenueSan Diego, CA 92109

$2.77 3,968 SF 4 100%

RENT/SF BLDG SF # OF UNITS OCCUPANCY %

Totals/Averages $3.19 11,173 SF 13.2 98.8%

1

2

3

4

5


R E N T C O M P S S U M M A R Y


1 4211 Haines StreetSan Diego , CA 92109

THE PEARLE ON HAINES 2 1440 Thomas AvenueSan Diego, CA 92109

THOMAS AVENUE 3 3956-3966 Shasta StreetSan Diego, CA 92109

DRIFTWOOD 4 1450 Pacific Beach DriveSan Diego, CA 92109

ELAN BAYLOFTS

5 1143 Reed AvenueSan Diego, CA 92109

REED AVENUE

1346-74 Grand Ave | San Diego, CA 92109SUBJECT PROPERTY


R E N T C O M P S M A P

VIVI | DEMOGRAPHICSA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.3233 858.414.6485


1 3 4 6 - 7 4 G R A N D A V E , S A N D I E G O , C A 9 2 1 0 9 D E M O G R A P H I C S | 3 7O F F E R I N G M E M O R A N D U M

0.5 MILES 1 MILE 1.5 MILES

Total population 10,234 30,705 42,429

Median age 29.7 30.9 32.4

Median age (male) 30.4 31.7 32.8

Median age (female) 28.8 30.6 32.2

Total households 5,668 16,736 22,496

Total persons per HH 1.8 1.8 1.9

Average HH income $74,213 $81,270 $84,242

Average house value $375,471 $581,252 $729,067

Total Population - White 9,183 27,757 38,177

% White 89.7% 90.4% 90.0%

Total Population - Black 179 536 646

% Black 1.7% 1.7% 1.5%

Total Population - Asian 349 1,024 1,520

% Asian 3.4% 3.3% 3.6%

Total Population - Hawaiian 1 90 111

% Hawaiian 0.0% 0.3% 0.3%

Total Population - American Indian 61 141 167

% American Indian 0.6% 0.5% 0.4%

Total Population - Other 267 558 939

% Other 2.6% 1.8% 2.2%

Total Population - Hispanic 1,018 2,429 3,858

% Hispanic 9.9% 7.9% 9.1%

* Demographic data derived from 2010 US Census


D E M O G R A P H I C S R E P O R T

1 3 4 6 - 7 4 G R A N D A V E , S A N D I E G O , C A 9 2 1 0 9 D E M O G R A P H I C S | 3 8O F F E R I N G M E M O R A N D U M

POPULATION 0.5 MILES 1 MILE 1.5 MILESTotal population 10,234 30,705 42,429

Median age 29.7 30.9 32.4

Median age (male) 30.4 31.7 32.8

Median age (Female) 28.8 30.6 32.2

HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES

Total households 5,668 16,736 22,496

# of persons per HH 1.8 1.8 1.9

Average HH income $74,213 $81,270 $84,242

Average house value $375,471 $581,252 $729,067

ETHNICITY (%) 0.5 MILES 1 MILE 1.5 MILESHispanic 9.9% 7.9% 9.1%

RACE (%)White 89.7% 90.4% 90.0%

Black 1.7% 1.7% 1.5%

Asian 3.4% 3.3% 3.6%

Hawaiian 0.0% 0.3% 0.3%

American Indian 0.6% 0.5% 0.4%

Other 2.6% 1.8% 2.2%

* Demographic data derived from 2010 US Census


D E M O G R A P H I C S M A P

O C E A N PA L M S A PA R T M E N T SD Y L A N W R I G H TCALDRE #014112016

619.255.3233

[email protected]

D A V E A N D R E W SCALDRE #01720128

858.414 .6485

[email protected]

Documents

OCEAN PALMS APARTMENTS · 2020-03-09 · OCEAN PALMS APARTMENTS TABLE OF CONTENTS I. INVESTMENT SUMMARY 3 II. LOCATION INFORMATION 14 III. FINANCIAL ANALYSIS 19 IV. SALE COMPARABLES