2995 commercial street - images3.loopnet.com · [email protected] 858.546.5436 ... apn:...

A Value Add Opportunity In San Diego, CA

MUST SELL, MOTIVATED SELLER | JUDGE HAS INSTRUCTED SALE

IDEAL FOR AFFORDABLE HOUSING CONTAINER DEVELOPMENT LOCATED IN AN OPPORTUNITY ZONE & TRANSIT PRIORITY AREA

2995 COMMERCIAL STREET

JASON KIMMEL [email protected] Lic. 01328121

TIM WINSLOW [email protected] Lic. 00891667

KEVIN NOLEN [email protected] Lic. 01840398

PRESENTED BY:

2995 Commercial Street is located, along the trolley line, in the heart of Southeastern San Diego. Located within an Opportunity Zone, the current Community Plan is geared to growth ideal for residential and container style build. The area is located in direct proximity to commercial centers and Downtown San Diego. The subject property is located on the Orange line and approximately ¼ mile west of the Orange Line, 32nd Street, Trolley stop. The Orange line connects at 12th and Commercial with the Blue and Green lines that travel through the employment hub in Downtown San Diego, south to Mexico and north to Mission Valley and University Town Center.

The property, 1.04 acres, is located in the “Village District” (CN-1-4 zone) which allows for Neighborhood Mixed Use Medium Density of 30-44 DU’s/acre. (1 unit/1,000 sq. ft. of land) The density bonus can increase the unit count by 50% or up to 65 units. (Possible 100% density bonus or 88 units) The Medium-High Residential supports compact and compatible condominium/apartment buildings that are typically designed with a single or double-loaded access corridors. Parking should be integrated into the ground level or developed below grade. The height limit is 60 feet. The maximum Floor Area Ratio is 1.8.

EXECUTIVE SUMMARY

S. 30TH ST.

WEBSTER AVE

COMMERCIAL ST

• Within an Opportunity Zone

• Ideal site for affordable housing and container construction

• On Trolley Line

• Direct proximity, via trolley, to Downtown, Mission Valley, Chula

Vista, National City, Mexico and University Town Center

• Hard-to-find large parcel

• 1.5 miles to Petco Park

• 1.75 miles to the convention center

• Density bonus

• Transit Priority Area

INVESTMENT HIGHLIGHTS

Petco Park

San Diego City College

EAST VILLAGEGASLAMP

Convention Center

SD Civic Theatre

House of Blues

Horton Plaza Mall

1.5 Miles to Site

PRICE: $4,600,000

LOCATION: 2995 Commercial St. San Diego, CA 92113

APN: 454-363-04-00

LAND AREA: Approx. 1.04 Acres (45,302 SF)

ZONING:CN-1-4

HEIGHT LIMIT: 60 FT

DENSITY: Median-High Residential (30-40 DU/Acre)

DENSITY BONUS: For development that provides five or more dwelling units; meets the criteria in Sections 143.0720(c)(1), 143.0720(c)(2), 143.0720(d)(2), or 143.0720(f); provides an average of no more than 600 square feet per dwelling unit with no dwelling unit exceeding 800 square feet; with a portion of the lot located within a Transit Priority Area; where an applicant has not requested an incentive or waiver to exceed the maximum structure height or setbacks of the base zone; and where the premises can be serviced by all required utilities, a density bonus of up to 100 percent of the pre-density bonus dwelling units shall be granted, provided that development of the additional density does not cause the need for an incentive, waiver, or deviation to exceed the maximum structure height or setbacks of the base zone.

PROPERTY OVERVIEW

COMMERCIAL STREET

The recently passed Tax Cuts and Jobs Act of 2017 created

Opportunity Zones, which are specially created geographic

districts that grant investors tax breaks for investment captial

- including tax-free income. Allows to defer or eliminate

federal taxes on capital gains.

• Invest in this fund and potentially enjoy substantial tax

breaks by investing your capital gains.

• Investors may reinvest capital gains from existing

investments into an Opportunity Fund and defer/reduce

capital gains taxes

• If held, the original investment’s tax basis increases by

10% after five years and by 15% after seven years.

• After 10 years, investors permanently eliminate capital

gains tax opportunity fund investment capital gains.

CENSUS TRACT 39.01 OVERLAY ZONE

PROPERTY OVERVIEW

Y1

Y2

Y3

Y4

Y6

Y8

Y9

Investor liquidates assets for $150M. The investor has a basis of $50M producing $100 million in capital gain.

Within 180 days of sale, investor deploys

all gain into a QOF, which has at least 90% of its assets

invested in qualified opportunity zone

investments.

If the investor sells the QOF investment, capital gain on the original investment becomes taxable at

that time as does tax on any incremental

gain on the QOF investment.

Investor can sell QOF interest without

incurring any tax liability on capital

gain generated by the QOF investment.

DAY 0

DAY 0 - YEAR 5

YEAR 5 - YEAR 7

YEAR 7 - YEAR 10

YEAR 10 ->

12/31/2026Hard Assessment

Date: Capital gain tax assessed

on the original gain, regardless of whether QOF

investment has been sold, potentially

creating a cash flow planning issue.

Taxable gain on the original investment is

reduced by 10%.Not available if QOF

investment is first made after December 31, 2021.

Taxable gain on the original investment

is reduced by an incremental 5% (15% total). Not available if QOF

investment is first made after

December 31, 2019.

ILLUSTRATIVE EXAMPLE OF AN OPPORTUNITY ZONE INVESTMENT

OPPORTUNITY ZONE PROGRAM BENEFITS

QOF INVESTMENT DATE

ORIGINAL GAIN DEFERRAL TO 12/31/2026

10% ORIGINAL GAIN REDUCTION

15% ORIGINAL GAIN REDUCTION

NO CAPITAL GAINS TAX ON QOF

INVESTMENT

Before 12/31/19 X X X X

Before 12/31/21 X X X

Before 12/31/26 X

SITE

6432

1

ADDRESS CITY STATE ZIP SALE PRICE SIZE (SF) PRICE/SF SALE DATE

2699 Commercial Street San Diego CA 92101

1 3064 Commercial St. (3 Properties) San Diego CA 92113 $3,200,000 38,363 $83.41 4/13/2018

2 1401 Imperial Avenue San Diego CA 92101 $1,800,000 10,019 $179.66 11/25/2014

3 1435 Imperial Avenue San Diego CA 92101 $950,000 9,753 $97.41 12/16/2014

4 1701 Imperial AVe. San Diego CA 92101 $975,000 8,015 $121.65 6/16/2016

5 1344 National Ave. San Diego CA 92101 $3,050,000 23,884 $127.70 8/6/2010

6 1430 National Ave. San Diego CA 92113 $12,000,000 71,003 $169.01 2/15/2017

5SITE

RECENT COMPARABLETRANSACTIONSLAND SALE

EVANS STREET

EVERETT AVENUE

FRANKLIN AVENUECOMMERCIAL STREET

NATIONAL CITY

NAVAL BASE

5

5

SAN DIEGO BAY

28TH S

TREE

T

28TH S

TREE

T

TAX MAP320’ X 140’

S. 30TH ST.

WEBSTER AVE

COMMERCIAL ST

300'

150

'

Demographic and Income Profile2995 Commercial St, San Diego, California, 92113 Prepared by EsriRing: 1 mile radius Latitude: 32.70528

Longitude: -117.12971

AreaStateUSA

Trends 2018-2023Trends 2018-2023

Ann

ual R

ate

(in

perc

ent)

3.5

3

2.5

2

1.5

1

0.5

0Population Households Families Owner HHs Median HH Income

20182023

Population by AgePopulation by Age

Perc

ent

18

16

14

12

10

8

6

4

2

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2018 Household Income 2018 Household Income

<$15K17.3%

$15K - $24K16.9%

$25K - $34K13.2%

$35K - $49K17.7%

$50K - $74K15.7%

$75K - $99K8.6%

$100K - $149K6.8%

$150K - $199K2.3%

$200K+1.3%

2018 Population by Race2018 Population by Race

Perc

ent

45

40

35

30

25

20

15

10

5

0White Black Am. Ind. Asian Pacific Other Two+

2018 Percent Hispanic Origin: 82.3%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023.

November 20, 2018

©2018 Esri Page 2 of 6



Summary Census 2010 2018 2023Population 40,845 43,276 44,917Households 11,630 12,305 12,762Families 7,952 8,405 8,725Average Household Size 3.48 3.48 3.48Owner Occupied Housing Units 2,681 2,688 3,228Renter Occupied Housing Units 8,949 9,618 9,534Median Age 28.3 29.1 30.4

Trends: 2018 - 2023 Annual Rate Area State NationalPopulation 0.75% 0.82% 0.83%Households 0.73% 0.76% 0.79%Families 0.75% 0.76% 0.71%Owner HHs 3.73% 1.73% 1.16%Median Household Income 2.34% 3.25% 2.50%

2018 2023 Households by Income Number Percent Number Percent

<$15,000 2,130 17.3% 1,914 15.0%$15,000 - $24,999 2,085 16.9% 1,884 14.8%$25,000 - $34,999 1,627 13.2% 1,516 11.9%$35,000 - $49,999 2,180 17.7% 2,190 17.2%$50,000 - $74,999 1,929 15.7% 2,128 16.7%$75,000 - $99,999 1,062 8.6% 1,293 10.1%$100,000 - $149,999 841 6.8% 1,142 8.9%$150,000 - $199,999 286 2.3% 430 3.4%$200,000+ 166 1.3% 264 2.1%

Median Household Income $36,529 $41,003Average Household Income $49,716 $58,661Per Capita Income $14,647 $17,172

Census 2010 2018 2023 Population by Age Number Percent Number Percent Number Percent

0 - 4 3,613 8.8% 3,738 8.6% 3,896 8.7%5 - 9 3,326 8.1% 3,478 8.0% 3,405 7.6%10 - 14 3,454 8.5% 3,283 7.6% 3,294 7.3%15 - 19 3,833 9.4% 3,387 7.8% 3,161 7.0%20 - 24 3,701 9.1% 4,194 9.7% 3,878 8.6%25 - 34 7,258 17.8% 8,053 18.6% 8,448 18.8%35 - 44 5,897 14.4% 5,972 13.8% 6,411 14.3%45 - 54 4,595 11.2% 4,824 11.1% 5,018 11.2%55 - 64 2,793 6.8% 3,445 8.0% 3,843 8.6%65 - 74 1,329 3.3% 1,866 4.3% 2,293 5.1%75 - 84 759 1.9% 754 1.7% 976 2.2%

85+ 287 0.7% 282 0.7% 293 0.7%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 16,854 41.3% 17,552 40.6% 18,224 40.6%Black Alone 3,089 7.6% 3,048 7.0% 2,975 6.6%American Indian Alone 352 0.9% 353 0.8% 355 0.8%Asian Alone 630 1.5% 687 1.6% 738 1.6%Pacific Islander Alone 87 0.2% 87 0.2% 89 0.2%Some Other Race Alone 18,046 44.2% 19,615 45.3% 20,518 45.7%Two or More Races 1,787 4.4% 1,934 4.5% 2,019 4.5%

Hispanic Origin (Any Race) 32,904 80.6% 35,609 82.3% 37,528 83.5%Data Note: Income is expressed in current dollars.


November 20, 2018


POPULATION:

43,276

AVERAGE HOUSEHOLD

INCOME:

$49,716

MEDIAN AGE:

29.1

DEMOGRAPHICS1 MILE RADIUS




AreaStateUSA

Trends 2018-2023Trends 2018-2023

Ann

ual R

ate

(in

perc

ent)

3.5

3

2.5

2

1.5

1

0.5


20182023


Perc

ent

2018

161412

10864

20

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K16.1%

$15K - $24K11.5%$25K - $34K

9.3%

$35K - $49K13.1%

$50K - $74K15.4%

$75K - $99K10.2%

$100K - $149K12.5%

$150K - $199K5.4%

$200K+6.4%


Perc

ent

45

40

35

30

25

20

15

10

5




November 20, 2018







<$15,000 13,505 16.1% 12,198 13.4%$15,000 - $24,999 9,599 11.5% 8,695 9.6%$25,000 - $34,999 7,797 9.3% 7,142 7.9%$35,000 - $49,999 10,987 13.1% 10,927 12.0%$50,000 - $74,999 12,888 15.4% 14,024 15.4%$75,000 - $99,999 8,568 10.2% 10,205 11.2%$100,000 - $149,999 10,479 12.5% 13,031 14.4%$150,000 - $199,999 4,548 5.4% 6,164 6.8%$200,000+ 5,315 6.4% 8,407 9.3%



0 - 4 14,215 6.5% 14,686 6.2% 15,585 6.2%5 - 9 12,915 5.9% 13,587 5.7% 13,584 5.4%10 - 14 12,981 6.0% 12,843 5.4% 13,037 5.2%15 - 19 15,256 7.0% 14,170 6.0% 13,780 5.5%20 - 24 23,837 10.9% 25,524 10.8% 25,275 10.0%25 - 34 43,249 19.9% 47,739 20.2% 51,564 20.5%35 - 44 31,716 14.6% 33,751 14.2% 36,977 14.7%45 - 54 26,205 12.0% 27,075 11.4% 27,917 11.1%55 - 64 18,858 8.7% 22,858 9.6% 24,224 9.6%65 - 74 9,851 4.5% 14,482 6.1% 17,452 6.9%75 - 84 6,197 2.8% 7,137 3.0% 9,074 3.6%

85+ 2,564 1.2% 3,031 1.3% 3,312 1.3%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 110,241 50.6% 117,626 49.7% 124,028 49.3%Black Alone 23,082 10.6% 24,293 10.3% 25,081 10.0%American Indian Alone 1,907 0.9% 1,988 0.8% 2,079 0.8%Asian Alone 15,939 7.3% 18,436 7.8% 20,599 8.2%Pacific Islander Alone 1,068 0.5% 1,104 0.5% 1,139 0.5%Some Other Race Alone 55,603 25.5% 61,713 26.1% 65,837 26.1%Two or More Races 10,004 4.6% 11,724 4.9% 13,016 5.2%



November 20, 2018




POPULATION:

236,884

AVERAGE HOUSEHOLD

INCOME:

$75,682

MEDIAN AGE:

32.7



AreaStateUSA

Trends 2018-2023Trends 2018-2023

Ann

ual R

ate

(in

perc

ent)

3

2.5

2

1.5

1

0.5


20182023


Perc

ent

18

16

14

12

10

8

6

4

2

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K14.3%

$15K - $24K11.2%

$25K - $34K9.7%

$35K - $49K13.6%

$50K - $74K16.7%

$75K - $99K11.1%

$100K - $149K12.1%

$150K - $199K5.1%

$200K+6.0%


Perc

ent

45

40

35

30

25

20

15

10

5




November 20, 2018







<$15,000 28,178 14.3% 24,756 11.9%$15,000 - $24,999 22,071 11.2% 19,395 9.3%$25,000 - $34,999 19,087 9.7% 17,153 8.3%$35,000 - $49,999 26,748 13.6% 25,831 12.4%$50,000 - $74,999 32,814 16.7% 34,173 16.5%$75,000 - $99,999 21,761 11.1% 24,776 11.9%$100,000 - $149,999 23,848 12.1% 30,035 14.5%$150,000 - $199,999 10,004 5.1% 13,497 6.5%$200,000+ 11,859 6.0% 17,999 8.7%



0 - 4 33,846 6.6% 34,032 6.2% 35,930 6.3%5 - 9 30,234 5.9% 31,248 5.7% 31,253 5.5%10 - 14 30,683 6.0% 30,086 5.5% 30,096 5.3%15 - 19 36,474 7.1% 34,451 6.3% 33,278 5.8%20 - 24 52,913 10.3% 56,066 10.3% 55,548 9.7%25 - 34 98,078 19.1% 105,347 19.3% 111,181 19.4%35 - 44 73,888 14.4% 76,429 14.0% 82,837 14.5%45 - 54 63,198 12.3% 63,060 11.5% 63,742 11.1%55 - 64 46,771 9.1% 55,219 10.1% 57,114 10.0%65 - 74 24,296 4.7% 35,631 6.5% 41,979 7.3%75 - 84 15,604 3.0% 17,465 3.2% 21,717 3.8%

85+ 6,762 1.3% 7,835 1.4% 8,245 1.4%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 253,748 49.5% 263,597 48.2% 272,654 47.6%Black Alone 55,984 10.9% 57,748 10.6% 58,387 10.2%American Indian Alone 4,347 0.8% 4,456 0.8% 4,588 0.8%Asian Alone 58,657 11.4% 65,089 11.9% 70,667 12.3%Pacific Islander Alone 2,864 0.6% 2,910 0.5% 2,965 0.5%Some Other Race Alone 112,347 21.9% 124,661 22.8% 132,675 23.2%Two or More Races 24,799 4.8% 28,408 5.2% 30,984 5.4%



November 20, 2018


POPULATION:

546,870

AVERAGE HOUSEHOLD

INCOME:

$76,038

MEDIAN AGE:

33.2



A Value Add Opportunity In San Diego, CA

MUST SELL, MOTIVATED SELLER | JUDGE HAS INSTRUCTED SALE

IDEAL FOR AFFORDABLE HOUSING CONTAINER DEVELOPMENT LOCATED IN AN OPPORTUNITY ZONE & TRANSIT PRIORITY AREA

2995 COMMERCIAL STREET

JASON KIMMEL [email protected] Lic. 01328121

TIM WINSLOW [email protected] Lic. 00891667

KEVIN NOLEN [email protected] Lic. 01840398

PRESENTED BY:

2995 commercial street - images3.loopnet.com · [email protected] 858.546.5436 ... apn:...

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