the n ave apartments san diego, ca 9 · pest control 3.00 % maintenance 3.00 % management (off...
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The N Ave Apartments San Diego, CA 91950
14 Apartment�� Units in National City
915 N Ave National CityCONTENTS
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 other conditions, 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 theproperty. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
01 Executive Summary Executive Summary 5
Unit Mix Summary 7
Location Summary 8
02 Property Description Property Features 10
Aerial Map 11
Outline Overview 12
Common Amenities 13
Unit Amenities 14
Property Images 15
03 Financial Analysis Income & Expense Analysis 23
Multiyear Cash Flow Assumptions 24
Cash Flow Analysis 25
Disposition Sensitivity Analysis 27
04Demographics Demographics 29
Demographic Charts 30
05 Additional Information
Adam CairoSenior Associate(619) [email protected]# 01948040
Seth WatjeSenior Vice President(619) [email protected]# 01805453
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from South Coast Commercial Inc. and it should not be made available to any other personor 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 informationin the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offeringmemorandum. 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 informationto prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information containedherein is not a substitute for a thorough due diligence investigation. South Coast Commercial Inc. has not made any investigation,and makes no warranty or representation with respect to the income or expenses for the subject property, the future projectedfinancial performance of the property, the size and square footage of the property and improvements, the presence of absence ofcontaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition ofthe improvements thereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property. The information contained in this offering memorandum has been obtained fromsources we believe reliable; however, South Coast Commercial Inc. has not verified, and will not verify, any of the informationcontained herein, nor has South Coast Commercial Inc. conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyersmust take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for theircosts and expenses of investigating the subject property.
915 N Ave National City Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER:
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONTACT SOUTH COAST COMMERCIAL INC. FOR MORE DETAILS.
Copyright © 2018 CREOP, LLC. All Rights Reserved.
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Executive Summary
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Unit Mix Summary
Location Summary
915 N Ave National City Executive Summary | 05
OFFERING SUMMARY
ADDRESS 915 N Ave National City CA 91950
COUNTY San DIego
MARKET National City
SUBMARKET National City
BUILDING SF 7,700
LAND SF 8,700
NUMBER OF UNITS 14
APN 557-180-34-00
OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARY
OFFERING PRICE $2,695,000
PRICE PSF $350.00
PRICE PER UNIT $192,500
OCCUPANCY 97.00 %
NOI (CURRENT) $129,896
NOI (Pro Forma) $154,631
CAP RATE (CURRENT) 4.81 %
CAP RATE (Pro Forma) 5.73 %
PROPOSED FINANCING
LOAN TYPE Interest Only
DOWN PAYMENT $1,158,850
LOAN AMOUNT $1,536,150
INTEREST RATE 3.93 %
ANNUAL DEBT SERVICE $60,371
LOAN TO VALUE 57 %
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE
2017 Population 43,167 223,980 524,155
2017 Median HH Income $36,825 $42,158 $48,525
2017 Average HH Income $50,185 $57,730 $68,890
Gold Bear Group is pleased to present this unique 14 unitmultifamily investment opportunity. This property hasundergone extensive renovations which is reflected in thecurrent rental income. These efficient 1Br/1Ba units areaveraging $1,173 per unit with potential upside. Situated on a8,700 SF lot the property offers off street parking and is locatednear transportation, shopping, and the 805 Frwy. Attractive I/Oassumable financing.
The information contained herein has been obtained fromsources believed reliable. South Coast Commercial INC does notdoubt the accuracy, but we have not verified it and make noguarantee, warranty or representations. PLEASE DO NOT WALKON THE PROPERTY OR DISTURB TENANTS.
Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly
IncomeMarket Rent Market Rent
PSFMarket Income
1 bd / 1 ba 14 550 $1,173 $2.13 $16,422 $1,300 $2.36 $18,200
Totals/Averages 14 550 $1,173 $2.13 $16,422 $1,300 $2.36 $18,200
915 N Ave National City Unit Mix Summary | 07
915 N Ave National City Location Summary | 08
National City is San Diego County’s second oldestcity and truly is in the center of it all. The City’scompetitive edge is its central locationtransportation network and business industry.National City is 10 minutes from most popular SanDiego destinations with close proximity to the SanDiego Bay, US-Mexico Border, Downtown San Diego,International Airport, Rail, San Diego State Universityand other colleges and universities. National City hasexcellent freeway access allowing visitors andresidents easy access to interstate 5 and 805, andhighways 54 and 15.
City View
Locator Map
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Property Description
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Aerial Map
Parcel Map
Additional Maps
Amenities
Property Images
915 N Ave National City Property Features | 10
Site Description
NUMBER OF UNITS 14
BUILDING SF 7,700
LAND SF 8,700
# OF PARCELS 1
NUMBER OF STORIES 2
NUMBER OF BUILDINGS 1
LOT DIMENSION 60 X 146 X 60 X 145
NUMBER OF PARKING SPACES 14
PARKING RATIO 1:1
CONSTRUCTION
FOUNDATION Slab
FRAMING Wood
EXTERIOR Stucco/Wood
ROOF Composition
915 N Ave National City Aerial Map | 11
915 N Ave National City Outline Overview | 12
Common AmenitiesOff-Street Parking
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Unit AmenitiesRemodeled Units
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915 N Ave National City Property Images | 15
915 N Ave National City Property Images | 16
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Rent Comps
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Rent Comparables Map
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On Market Comps
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On Market Comparables Charts
On Market Comparables Map
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Sale Comps
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Sale Comparables Charts
Sale Comparables Map
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Rent Roll
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Financial Analysis
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Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
Disposition Sensitivity Analysis
915 N Ave - 14 Units
915 N Ave National City Income & Expense Analysis | 23
INCOME CURRENT PRO FORMA
Gross Potential Rent $197,064 $218,400
Other Income (Garages) $6,000
Gross Potential Income $197,064 $224,400
Less: General Vacancy $5,912 $6,552
Effective Gross Income $191,152 $217,848
Less: Expenses $61,256 $63,217
Net Operating Income $129,896 $154,631
Annual Debt Service $60,371 $60,371
Debt Coverage Ratio 2.15 2.56
Cash Flow After Debt Service $69,525 $94,260
EXPENSES CURRENT PROFORMA
Gas & Electric $262 $3,666 $262 $3,666
Water & Sewer $362 $5,061 $362 $5,061
Landscaping $43 $600 $183 $2,561
Trash Removal $103 $1,440 $103 $1,440
Pest Control $32 $444 $32 $444
Maintenance $536 $7,500 $536 $7,500
Management (Off Site) $683 $9,558 $683 $9,558
Insurance $181 $2,533 $181 $2,533
Taxes $2,175 $30,454 $2,175 $30,454
Total Operating Expense $4,375 $61,256 $4,516 $63,217
Expense / SF $7.95 $8.21
% of EGI 32.05 % 29.02 %
Per Unit Per Unit
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
915 N Ave National City Multiyear Cash Flow Assumptions | 24
GLOBALAnalysis Period 10 year(s)
Commencement Date Apr. 29, 2018
Consumer Price Index (growth rate) 2.75 %
Millage Rate 1.13000 %
EXIT CAP RATE 7.00 %
INCOME GROWTH RATESGross Potential Rent 3.00 %
EXPENSE GROWTH RATESGas & Electric 3.00 %
Water & Sewer 3.00 %
Trash Removal 3.00 %
Pest Control 3.00 %
Maintenance 3.00 %
Management (Off Site) 3.00 %
Insurance 3.00 %
Taxes 3.00 %
PROPOSED FINANCINGLoan Type Interest Only
Down Payment $1,158,850
Loan Amount $1,536,150
Interest Rate 3.93 %
Annual Debt Service $60,371
Loan to Value 57 %
915 N Ave National City Cash Flow Analysis| 25
CASH FLOW
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $197,064 $218,400 $224,952 $231,701 $238,652 $245,811 $253,185 $260,781 $268,604 $276,663
Other Income (Garages) $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Gross Potential Income $197,064 $224,400 $230,952 $237,701 $244,652 $251,811 $259,185 $266,781 $274,604 $282,663
General Vacancy $5,912 $6,552 $6,749 $6,951 $7,160 $7,374 $7,596 $7,823 $8,058 $8,300
Effective Gross Income $191,152 $217,848 $224,203 $230,750 $237,492 $244,437 $251,590 $258,958 $266,546 $274,363
Operating ExpensesGas & Electric $3,666 $3,666 $3,776 $3,889 $4,006 $4,126 $4,250 $4,377 $4,509 $4,644
Water & Sewer $5,061 $5,061 $5,213 $5,369 $5,530 $5,696 $5,867 $6,043 $6,224 $6,411
Landscaping $600 $2,561 $2,561 $2,561 $2,561 $2,561 $2,561 $2,561 $2,561 $2,561
Trash Removal $1,440 $1,440 $1,483 $1,528 $1,574 $1,621 $1,669 $1,719 $1,771 $1,824
Pest Control $444 $444 $457 $471 $485 $500 $515 $530 $546 $562
Maintenance $7,500 $7,500 $7,725 $7,957 $8,195 $8,441 $8,695 $8,955 $9,224 $9,501
Management (Off Site) $9,558 $9,558 $9,845 $10,140 $10,444 $10,758 $11,080 $11,413 $11,755 $12,108
Insurance $2,533 $2,533 $2,609 $2,687 $2,768 $2,851 $2,936 $3,025 $3,115 $3,209
Taxes $30,454 $30,454 $31,368 $32,309 $33,278 $34,276 $35,305 $36,364 $37,455 $38,578
Total Operating Expense $61,256 $63,217 $65,037 $66,911 $68,841 $70,830 $72,878 $74,987 $77,160 $79,398
Net Operating Income $129,896 $154,631 $159,167 $163,839 $168,651 $173,607 $178,712 $183,970 $189,386 $194,965Annual Debt Service $60,371 $60,371 $60,371 $60,371 $60,371 $60,371 $60,371 $60,371 $60,371 $60,371
Cash Flow $69,525 $94,260 $98,796 $103,468 $108,280 $113,236 $118,341 $123,599 $129,015 $134,594
Effective Gross Income vs Operating Expenses Cash Flow
915 N Ave National City Cash Flow Analysis| 26
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 6.00 % 8.13 % 8.53 % 8.93 % 9.34 % 9.77 % 10.21 % 10.67 % 11.13 % 11.61 %
CAP Rate 4.82 % 5.74 % 5.91 % 6.08 % 6.26 % 6.44 % 6.63 % 6.83 % 7.03 % 7.23 %
Debt Coverage Ratio 2.15 2.56 2.64 2.71 2.79 2.88 2.96 3.05 3.14 3.23
Operating Expense Ratio 32.04 % 29.01 % 29.00 % 28.99 % 28.98 % 28.97 % 28.96 % 28.95 % 28.94 % 28.93 %
Loan to Value 57.00 % 57.00 % 57.00 % 57.00 % 57.00 % 57.00 % 57.00 % 57.00 % 57.00 % 57.00 %
Breakeven Ratio 63.63 % 56.73 % 55.93 % 55.16 % 54.41 % 53.67 % 52.96 % 52.27 % 51.60 % 50.94 %
Price / SF $350 $350 $350 $350 $350 $350 $350 $350 $350 $350
Price / Unit $192,500 $192,500 $192,500 $192,500 $192,500 $192,500 $192,500 $192,500 $192,500 $192,500
Expense / SF $8 $8 $8 $9 $9 $9 $9 $10 $10 $10
Income / SF $25 $28 $29 $30 $31 $32 $33 $34 $35 $36
915 N Ave National City Disposition Sensitivity Analysis | 27
5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED
SALES PRICESALES
PRICE/UNITSALES PRICE PSF PROCEEDS
AFTER LOANPAYOFF
IRR
6.00% $2,810,843 $200,775 $365 $1,274,693 9.69%
6.25% $2,698,409 $192,744 $350 $1,162,259 8.12%
6.50% $2,594,624 $185,330 $337 $1,058,474 6.57%
6.75% $2,498,527 $178,466 $324 $962,377 5.05%
7.00% $2,409,294 $172,092 $313 $873,144 3.54%
7.25% $2,326,215 $166,158 $302 $790,065 2.05%
7.50% $2,248,674 $160,620 $292 $712,524 0.56%
7.75% $2,176,137 $155,438 $283 $639,987 -0.92%
8.00% $2,108,132 $150,581 $274 $571,982 -2.41%
10 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED
SALES PRICESALES
PRICE/UNITSALES PRICE PSF PROCEEDS
AFTER LOANPAYOFF
IRR
6.00% $3,249,408 $232,101 $422 $1,713,258 11.72%
6.25% $3,119,432 $222,817 $405 $1,583,282 11.15%
6.50% $2,999,454 $214,247 $390 $1,463,304 10.60%
6.75% $2,888,363 $206,312 $375 $1,352,213 10.06%
7.00% $2,785,207 $198,943 $362 $1,249,057 9.54%
7.25% $2,689,166 $192,083 $349 $1,153,016 9.02%
7.50% $2,599,527 $185,680 $338 $1,063,377 8.52%
7.75% $2,515,671 $179,691 $327 $979,521 8.03%
8.00% $2,437,056 $174,075 $317 $900,906 7.55%
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Demographic Charts
915 N Ave National City Demographics | 29
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 39,252 207,932 481,984
2010 Population 40,615 212,734 493,218
2017 Population 43,167 223,980 524,155
2022 Population 45,012 232,123 545,885
2017 African American 1,963 25,234 56,579
2017 American Indian 390 1,829 4,322
2017 Asian 8,315 33,638 71,757
2017 Hispanic 29,664 137,900 287,614
2017 White 16,617 83,622 225,441
2017 Other Race 13,486 66,664 134,248
2017 Multiracial 2,053 11,237 28,272
2017-2022: Population: Growth Rate 4.20 % 3.60 % 4.10 %
2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 2,265 8,976 22,883
$15,000-$24,999 1,934 8,395 19,452
$25,000-$34,999 1,665 7,072 16,993
$35,000-$49,999 2,064 9,584 23,287
$50,000-$74,999 1,924 10,612 26,870
$75,000-$99,999 1,212 6,245 19,032
$100,000-$149,999 964 5,693 19,137
$150,000-$199,999 234 1,867 7,706
$200,000 or greater 154 1,199 6,406
Median HH Income $36,825 $42,158 $48,525
Average HH Income $50,185 $57,730 $68,890
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 11,785 58,753 152,833
2010 Total Households 11,709 56,999 151,845
2017 Total Households 12,416 59,643 161,766
2022 Total Households 12,936 61,776 168,849
2017 Average Household Size 3.43 3.52 3.10
2000 Owner Occupied Housing 3,480 24,387 66,743
2000 Renter Occupied Housing 7,919 32,640 79,669
2017 Owner Occupied Housing 3,398 23,291 66,726
2017 Renter Occupied Housing 9,018 36,352 95,040
2017 Vacant Housing 903 3,834 11,622
2017 Total Housing 13,319 63,477 173,388
2022 Owner Occupied Housing 3,517 23,882 68,761
2022 Renter Occupied Housing 9,419 37,894 100,088
2022 Vacant Housing 994 4,237 12,921
2022 Total Housing 13,930 66,013 181,770
2017-2022: Households: Growth Rate 4.10 % 3.55 % 4.30 %
Source: esri
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1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Population by Race
915 N Ave National City Demographic Charts | 31
2017 Household Occupancy - 1 Mile Radius
Average Income Median Income
2017 Household Income Average and Median
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915 N Ave National City
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Adam CairoSenior Associate(619) [email protected]# 01948040
Seth WatjeSenior Vice President(619) [email protected]# 01805453