8 unit fully rehabbed apartment complex · the unit interiors feature recently done hardwood...

EXECUTIVE SUMMARY PROPERTY DESCRIPTION LOCATION INVESTMENT FINANCIAL ANALYSIS COMPARABLES

NORMAL H

4440 32ND STREETSAN DIEGO, CALIFORNIA 92116

8 UNIT FULLY REHABBED

APARTMENT COMPLEX

PLACEEIGHTS


Normal Heights Place is located at 4440 32nd Street and is an 8

unit fully rehabbed turnkey apartment complex located in Normal Heights, one of

San Diego’s fastest growing neighborhoods.

Built in 1971, 4440 32nd Street is a 5,244 square feet complex sitting on a 11,197

square foot lot. This beautifully rehabbed complex consists of spacious (2) two

bedroom / two bathrooms, (4) one bedroom / one bathrooms, and (2) studio units.

The unit interiors feature recently done hardwood floors, custom tiled showers,

quartz counter tops, stainless steel appliances, and white shaker cabinets. Other

attributes include private backyards for the first floor units, reserved parking for

tenants, and a shared laundry room which aids in additional income.

Normal Heights is a highly desirable neighborhood located between Interstates 805

and 15 bordered by Mission Valley to the North and El Cajon Boulevard to the South.

With an array of local eateries, bars, and unique thrift stores, this neighborhood

has been seeing rapid growth over the past year and is becoming one of the most

coveted locations for renters.

This building lends investors the opportunity to acquire a fully rehabbed asset with

value add opportunity in one of San Diego's most desired rental markets. 4440

32nd Street offers attractive rental upside potential and is centrally located with the

investor's longevity in mind.

[ The Offering ]

EXECUTIVE SUMMARY

[ INVESTMENT HIGHLIGHTS]

Highly Desirable Normal Heights Neighborhood

Fully Rehabbed Turnkey Property

Assumable Loan: 4% Fixed Rate W/ Over 7 Years Remaining (Qualified Borrower)

Appealing Unit Mix of Spacious 1 & 2 Bedrooms

Private Backyards for First Floor Units

Abundant Off-Street Parking

Value Add - Upside in Rents

Convenient Access to the I-805


PROPERTY INFORMATION

ADDRESS: 4440 32ND ST,

SAN DIEGO, CA 92116

# OF UNITS: 8

APN: 447-534-11-00

ZONING: RS-1-7

FINANCIAL INFORMATION

PRICE: $2,395,000

PRICE/UNIT: $299,375

CAP RATE: 4.62%

SITE DESCRIPTION

YEAR BUILT: 1971 / 2015

RENTABLE SF: 5,244

LOT SIZE: 0.26 ACRES

# OF BUILDINGS: 1

# OF STORIES: 2

PARKING: 15 SPACES

PROPERTY DESCRIPTION

[ Property Description]

WATER / G&E: OWNER PAYS / TENANT PAYS

FRAMING: WOOD

EXTERIOR: STUCCO

ROOF: FLAT

FOUNDATION: SLAB

EXECUTIVE SUMMARY PROPERTY DESCRIPTION LOCATION INVESTMENT FINANCIAL ANALYSIS COMPARABLES EXECUTIVE SUMMARY PROPERTY DESCRIPTION LOCATION INVESTMENT FINANCIAL ANALYSIS COMPARABLES


Normal Heights, founded in the early 1900s, is a

neighborhood in San Diego located on a mesa just

south of Mission Valley. Normal Heights is bounded by

Interstate 8 to the North, Interstate 805 to the West, El

Cajon Boulevard to the South, and Interstate 15 to the

East.

Normal Heights’ downtown area is marked by a large

sign in the middle of Adams at Felton Street. Due to the

bustle of this eclectic neighborhood, Normal Heights

has a high rate of pedestrian activity and hosts a mix

of coffee houses, retail shops, and San Diego's up-and-

coming restaurant row on Adams Avenue, also known

as Antique Row.

In recent years, Normal Heights has been recognized

by Southern California’s largest free music festivals.

The Adams Avenue Street Fair is typically held the last

weekend in September, featuring over 100 live music

acts on 8 stages, giant carnivals rides, and over 300

craft & food vendors. The Adams Avenue Unplugged

is another free music festival, held the last weekend of

April. Art Around Adams is held in June, transforming

local businesses into galleries and stages for artist from

throughout the region.

NORMAL

HEIGHTS

[ SAN DIEGO ]

LOCATION


[ Capital Improvements ]

FULLY REHABBED PROPERTY

INVESTMENT

INTERIOR

Hardwood Floors

Custom Tiled Showers

Quartz Counter Tops

Stainless Steel Appliances

White Shaker Cabinets

Window Treaments

EXTERIOR

Signage

Exterior Tile

Additional Stairs

Fence

Foundation

Landscaping

BBQ

Parking Lot Lights

MAINTENANCE

Electrical

Concrete

Pest Control

Plumbing

Rain Gutters

Security

EXECUTIVE SUMMARY PROPERTY DESCRIPTION LOCATION INVESTMENT FINANCIAL ANALYSIS COMPARABLESUpgrades


UNIT UNIT TYPE SQ. FT. CURRENT RENT /MONTH

CURRENT RENT /SF / MONTH

POTENTIAL RENT /MONTH

POTENTIAL RENT / SF / MONTH

101 2 Bdrm / 2 Bath 850 $2,100* $2.47 $2,150 $2.53

102 1 Bdrm / 1 Bath 650 $1,675* $2.58 $1,725 $2.65

103 1 Bdrm / 1 Bath 650 $1,675* $2.58 $1,725 $2.65

104 Studio 445 $1,250* $2.81 $1,395 $3.13

205 2 Bdrm / 2 Bath 850 $1,995 $2.35 $2,075 $2.44

206 1 Bdrm / 1 Bath 650 $1,625* $2.50 $1,675 $2.58

207 1 Bdrm / 1 Bath 650 $1,625* $2.50 $1,675 $2.58

208 Studio 445 $1,325* $2.98 $1,350 $3.03

Total / Avg 8 Units 5,244 $13,270 $2.53 $13,770 $2.63

[ Rent Roll ]

FINANCIAL ANALYSIS

[ Loan Assumption Option ]SUBJECT TO LENDER'S APPROVAL

CONTACT LISTING AGENT FOR DETAILS

LOAN BALANCE: $1,296,000

RATE: 4% PRINCIPAL & INTEREST

AMORTIZATION: 30 YEARS

MATURITY DATE: FIXED UNTIL NOVEMBER 2025

*Rent effective 11/1/2018


Price $2,395,000

Down Payment $895,000 / 37%

# of Units 8

Price Per Unit $299,375

Price Per Sq. Ft. $456.71

Gross Sq. Ft. 5,244

Lot Size 0.26 Acres

Year Built / Reno 1971 / 2015

#of Units

Unit Type Square Feet

Current Rents

Market Rents

2 2 Bdrm / 2 Bath 850 $2,048 $2,113

4 1 Bdrm / 1 Bath 650 $1,650 $1,700

2 Studio 445 $1,288 $1,373

Cap Rate 4.62% 4.85%

GRM 15.04 14.49

Cash-on-Cash 2.47% 3.10%

Debt Coverage Ratio 1.25 1.31

Income Current Year 1

Gross Scheduled Rent $159,240 $165,240

Less: Vacancy/Deductions 3.0% $4,777 3.0% $4,957

Total Effective Rental Income $154,463 $160,283

Other Income $1,608 $1,608

Effective Gross Income $156,071 $161,891

Less: Expenses 29.1% $45,382 28.2% $45,615

Net Operating Income $110,689 $116,276

Cash Flow $110,689 $116,276

Debt Service $88,549 $88,549

Net Cash Flow After Debt Service 2.47% $22,140 3.10% $27,727

Principal Reduction $25,288 $26,384

Total Return 5.30% $47,428 6.05% $54,111

This 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.

Real Estate Taxes $28,014 $28,014

Insurance $1,907 $1,907

Utilities $4,818 $4,818

Trash Removal $1,200 $1,200

Repairs & Maintenance $3,200 $3,200

Management Fee $6,243 $6,476

Total Expenses $45,382 $45,615

Expenses/Unit $5,673 $5,702

Expenses/SF $8.65 $8.70

EXECUTIVE SUMMARY INVESTMENT PROPERTY DESCRIPTIONLOCATION FINANCIAL ANALYSIS COMPARABLES

Loan Amount $1,500,000

Loan Type New

Interest Rate 4.25%

Amortization Period 30 Years

Year Due 2023

Summary

Current Year 1Returns

Financing 1st Loan

Unit Mix

Operating Data

Expenses


Sales

Comps

Property 4440 32nd St 4742 Marlborough Dr

1910 Robinson Ave

3548 Georgia St 4440 Boundary St

Close of Escrow -- 6/14/2018 ON MARKET 1/29/2018 ON MARKET

# of Units 8 4 13 10 12

Sales Price $2,395,000 $1,350,000 $4,700,000 $3,550,000 $4,300,000

Price Per Unit $299,375 $337,500 $361,538 $355,000 $358,333

Price / Sq. Ft. $456.71 $615.03 $370.95 $506.28 $531

Year Built 1971 / 2015 1925 1937 1987 1973 / 2017

Cap Rate 4.62% -- 4.00% 2.87% 4.38%

GRM 15.04 -- 15.7 17.23 15.67

2 Bdr / 2 Bath 2 -- -- 1 2

2 Bdr / 1 Bath -- 1 5 2 2

1 Bdr / 1 Bath 4 3 5 7 8

Studio 2 1 3 -- --

COMPARABLES


Rent

Comps

PropertyProperty 4440 32nd St 4184 32nd St #6

4647 Alabama St

4668 Wilson Ave#4

4440 Boundary St

# of Units 8 1 8 1 12

Year Built 1971 / 2015 1978 1969 / 2018 1981 1973 / 2017

Unit Type 2 - Studio4 - 1 Bdrm / 1 Bath2 - 2 Bdrm / 2 Bath

--1 Brdm / 1 Bath

--

--2 - 1 Bdrm / 1 Bath4 - 2 Bdrm / 2 Bath

----

2 Bdrm / 2 Bath

--8 - 1 Bdrm / 1 Bath2 - 2 Bdrm / 2 Bath

Rent $1,250-$1,325$1,625-$1,675$1,995-$2,100

--$1,690

--

--$1,895$2,295

----

$2,250

--$1,745-1,775

$2,195

Approximate Sq. Ft. 445650850

--600

--

--570836

----

970

--560-605

780

COMPARABLES


Rent

Comps

PropertyProperty 4440 32nd St 4170 Park Blvd#10

3969 Oregon St#6

1807 Mission Ave 4602 Talmadge Dr

# of Units 8 1 1 1 1

Year Built 1971 / 2015 1908 1981 1928 1931

Unit Type 2 - Studio4 - 1 Bdrm / 1 Bath2 - 2 Bdrm / 2 Bath

Studio----

----

2 Bdrm / 2 Bath

--1 Bdrm / 1 Bath

--

Studio----

Rent $1,250-$1,325$1,625-$1,675$1,995-$2,100

$1,350----

----

$2,295

--$1,695

--

$1,350----

Approximate Sq. Ft. 445650850

341----

----

837

--480--

350----

COMPARABLES

EXECUTIVE SUMMARY PROPERTY DESCRIPTION LOCATION INVESTMENT FINANCIAL ANALYSIS COMPARABLESCONFIDENTIALITY AGREEMENT

ABSOLUTELY NO PROPERTY TOURS OR DISCUSSIONS WITH TENANTS WITHOUT WRITTEN CONSENT

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 Marcus & Millichap and

it should not be made available to any other person or entity without the written consent of Marcus

& 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

interest 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 asbestos, 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 information contained in this

offering memorandum has been obtained from sources we believe to be reliable; 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 matters and makes no warranty or

representation whatsoever regarding the accuracy 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 responsible for their costs and expenses of investigating the subject property.


RAYMOND CHOISENIOR VICE PRESIDENT INVESTMENTS

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

858-373-3136 DIRECT | 858-735-6632 [email protected]

LICENSE: CA: 01297138

8 unit fully rehabbed apartment complex · the unit interiors feature recently done hardwood...

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