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VALUE ADD TRIPLEX1821-25 B Ave | National City, CAOFFERING MEMORANDUM
Value Add TriplexCONTENTS
Exclusively Marketed by:
Ivan RamosAssociate 619-253-7631 BRE# 02008339 [email protected]
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 14 Multiyear Cash Flow Assumptions 15 Cash Flow Analysis 16
04 Demographics Demographics 19 Demographic Charts 21
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.
Value Add Triplex 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.
Value Add Triplex | Executive Sum
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Executive Summary
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Investment Summary
Unit Mix Summary
Location Summary
Value Add Triplex Investment Summary | 05
OFFERING SUMMARYADDRESS 1821-25 B Ave
National City CA 91950COUNTY San DiegoBUILDING SF 2,468 SFLAND SF 8,702NUMBER OF UNITS 3YEAR BUILT 1957APN 5602210300OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARYOFFERING PRICE $625,000PRICE PSF $253.24PRICE PER UNIT $208,333OCCUPANCY 97.00 %NOI (CURRENT) $22,047NOI (Pro Forma) $47,073CAP RATE (CURRENT) 3.53 %CAP RATE (Pro Forma) 7.53 %GRM (CURRENT) 18.94GRM (Pro Forma) 10.63
PROPOSED FINANCINGLOAN TYPE AmortizedDOWN PAYMENT $250,000LOAN AMOUNT $375,000INTEREST RATE 3.50 %ANNUAL DEBT SERVICE $20,208LOAN TO VALUE 60 %AMORTIZATION PERIOD 30 Years
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2019 Population 26,630 190,195 457,7402019 Median HH Income $40,961 $48,899 $57,5592019 Average HH Income $56,932 $64,767 $80,778
The 1821 B Ave value add triplex is located just east of Interstate 5 in National City, CA. Built-in 1957, the property is a 3-unit property, comprised of detached single-family home Three-bedroom / two-bath and duplex to the side consisting of 2 two-bedroom /one-bathroom units on an 8,702 square foot lot. There is potential to convert a 2 car garage into an ADU. Property is separately metered for water gas and electric making it an attractive low maintenance investment. This property offers a solid base for an investor to complete their own renovations and capitalize on the rents this location can produce.
Value Add Triplex Unit Mix Summary | 06
Actual MarketUnit Mix # Units Current Rent Rent PSF Monthly Income Market Rent Market Income
3 bd + 2 ba 1 $1,000 $1,000 $1,900 $1,9002 bd + 1 ba 1 0 $900 $900 $1,500 $1,5002 bd + 1 ba 1 $850 $850 $1,500 $1,500
Totals/Averages 3 $917 $2,750 $1,633 $4,900
Value Add Triplex Location Summary | 07
• National City is a city located in the South Bay region of the San Diego metropolitan area, in southwestern San Diego County, California. The population was 58,582 at the 2010 census, up from 54,260 at the 2000 census. National City is the second-oldest city in San Diego County, having been incorporated in 1887
Regional Map
Locator Map
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Property Description
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Property Features
Aerial Map
Parcel Map
Additional Maps
Pictures with Captions
Value Add Triplex Property Features | 09
PROPERTY FEATURESNUMBER OF UNITS 3BUILDING SF 2,468LAND SF 8,702YEAR BUILT 1957NUMBER OF BUILDINGS 2
UTILITIESWATER TenantTRASH TenantGAS TenantELECTRIC Tenant
Value Add Triplex Aerial Map | 10
Value Add Triplex Property Images | 11
Value Add Triplex Property Images | 12
Value Add Triplex | Financial A
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Financial Analysis
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Income & Expense
Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
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INCOME CURRENT PRO FORMAGross Potential Income $33,000 $58,800
Less: General Vacancy $990 $1,764
Effective Gross Income $32,010 $57,036
Less: Expenses $9,963 $9,963
Net Operating Income $22,047 $47,073
Annual Debt Service $20,208 $20,208
Debt Coverage Ratio 1.09 2.33
Cash Flow After Debt Service $1,839 $26,865
Principal Reduction $7,083 $7,083
Total Return 3.6 % $8,922 13.6 % $33,948
EXPENSES CURRENT PRO FORMA
Real Estate Taxes $2,354 $7,063 $2,354 $7,063
Insurance $250 $750 $250 $750
Repairs & Maintenance $667 $2,000 $667 $2,000
Administration $50 $150 $50 $150
Total Operating Expense $3,321 $9,963 $3,321 $9,963
Annual Debt Service $6,736 $20,208 $6,736 $20,208
Expense / SF $4.03 $4.03
% of EGI 31.12 % 17.47 %
Per Unit Per Unit
REVENUE ALLOCATIONCURRENT
DISTRIBUTION OF EXPENSESCURRENT
Value Add Triplex Multiyear Cash Flow Assumptions | 15
GLOBALOffering Price $625,000
INCOMEGross Potential Rent 5.00 %
EXPENSESReal Estate Taxes 2.00 %Insurance 3.00 %Repairs & Maintenance 3.00 %Administration 3.00 %
PROPOSED FINANCINGLoan Type AmortizedDown Payment $250,000Loan Amount $375,000Interest Rate 3.50 %Annual Debt Service $20,208Loan to Value 60 %Amortization Period 30 Years
Value Add Triplex Cash Flow Analysis | 16
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 $33,000 $58,800 $61,740 $64,827 $68,068 $71,472 $75,045 $78,798 $82,738 $86,874Gross Potential Income $33,000 $58,800 $61,740 $64,827 $68,068 $71,472 $75,045 $78,798 $82,738 $86,874General Vacancy $990 $1,764 $1,852 $1,945 $2,042 $2,144 $2,251 $2,364 $2,482 $2,606Effective Gross Income $32,010 $57,036 $59,888 $62,882 $66,026 $69,328 $72,794 $76,434 $80,255 $84,268Operating ExpensesReal Estate Taxes $7,063 $7,063 $7,204 $7,348 $7,495 $7,645 $7,798 $7,954 $8,113 $8,275Insurance $750 $750 $773 $796 $820 $844 $869 $896 $922 $950Repairs & Maintenance $2,000 $2,000 $2,060 $2,122 $2,185 $2,251 $2,319 $2,388 $2,460 $2,534Administration $150 $150 $155 $159 $164 $169 $174 $179 $184 $190Total Operating Expense $9,963 $9,963 $10,191 $10,425 $10,664 $10,909 $11,160 $11,417 $11,680 $11,949Net Operating Income $22,047 $47,073 $49,697 $52,457 $55,362 $58,418 $61,634 $65,017 $68,576 $72,319Annual Debt Service $20,208 $20,208 $20,208 $20,208 $20,208 $20,208 $20,208 $20,208 $20,208 $20,208Cash Flow $1,839 $26,865 $29,489 $32,249 $35,154 $38,211 $41,426 $44,809 $48,368 $52,111
Effective Gross Income vs Operating Expenses Cash Flow
Value Add Triplex Cash Flow Analysis | 17
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 0.74 % 10.75 % 11.80 % 12.90 % 14.06 % 15.28 % 16.57 % 17.92 % 19.35 % 20.84 %CAP Rate 3.53 % 7.53 % 7.95 % 8.39 % 8.86 % 9.35 % 9.86 % 10.40 % 10.97 % 11.57 %Debt Coverage Ratio 1.09 2.33 2.46 2.60 2.74 2.89 3.05 3.22 3.39 3.58Operating Expense Ratio 31.12 % 17.46 % 17.01 % 16.57 % 16.15 % 15.73 % 15.33 % 14.93 % 14.55 % 14.17 %Gross Multiplier (GRM) 18.94 10.63 10.12 9.64 9.18 8.74 8.33 7.93 7.55 7.19Loan to Value 60.04 % 58.83 % 57.64 % 56.39 % 55.14 % 53.82 % 52.42 % 50.99 % 49.52 % 48.00 %Breakeven Ratio 94.25 % 52.90 % 50.76 % 48.71 % 46.76 % 44.88 % 43.09 % 41.38 % 39.73 % 38.16 %Price / SF $253.24 $253.24 $253.24 $253.24 $253.24 $253.24 $253.24 $253.24 $253.24 $253.24Price / Unit $208,333 $208,333 $208,333 $208,333 $208,333 $208,333 $208,333 $208,333 $208,333 $208,333Income / SF $12.97 $23.11 $24.26 $25.47 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14Expense / SF $4.03 $4.03 $4.12 $4.22 $4.32 $4.42 $4.52 $4.62 $4.73 $4.84
Value Add Triplex | D
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Demographics
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Demographic Details
Demographic Charts
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POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 23,953 176,024 422,224
2010 Population 24,967 182,149 434,504
2019 Population 26,630 190,195 457,740
2024 Population 27,346 193,469 470,977
2019 African American 918 17,283 45,559
2019 American Indian 292 1,701 3,739
2019 Asian 4,157 24,584 60,954
2019 Hispanic 19,285 121,933 258,397
2019 Other Race 8,688 56,434 117,518
2019 White 11,154 79,200 202,440
2019 Multiracial 1,279 9,599 24,565
2019-2024: Population: Growth Rate 2.65 % 1.70 % 2.85 %
2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 1,205 6,610 15,649
$15,000-$24,999 1,190 6,088 13,910
$25,000-$34,999 1,015 5,567 13,275
$35,000-$49,999 1,278 7,939 18,469
$50,000-$74,999 1,483 9,591 25,726
$75,000-$99,999 770 5,701 17,600
$100,000-$149,999 679 6,491 20,848
$150,000-$199,999 241 2,318 9,114
$200,000 or greater 188 1,233 8,132
Median HH Income $40,961 $48,899 $57,559
Average HH Income $56,932 $64,767 $80,778
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 7,449 51,178 135,385
2010 Total Households 7,540 49,746 134,647
2019 Total Households 8,049 51,539 142,723
2024 Total Households 8,247 52,343 148,645
2019 Average Household Size 3.16 3.40 3.05
2000 Owner Occupied Housing 1,763 19,518 58,419
2000 Renter Occupied Housing 5,555 30,165 71,057
2019 Owner Occupied Housing 1,727 18,928 59,651
2019 Renter Occupied Housing 6,322 32,611 83,072
2019 Vacant Housing 301 3,167 12,343
2019 Total Housing 8,350 54,706 155,066
2024 Owner Occupied Housing 1,819 19,524 61,089
2024 Renter Occupied Housing 6,428 32,819 87,556
2024 Vacant Housing 315 3,260 12,532
2024 Total Housing 8,562 55,603 161,177
2019-2024: Households: Growth Rate 2.45 % 1.55 % 4.10 %
Source: esri
Value Add Triplex Demographics | 20
2019 POPULATION BY AGE 1 MILE 3 MILE 5 MILE
2019 Population Age 30-34 2,004 14,850 37,383
2019 Population Age 35-39 1,711 12,264 31,753
2019 Population Age 40-44 1,414 10,179 26,463
2019 Population Age 45-49 1,448 10,003 26,089
2019 Population Age 50-54 1,391 9,627 25,441
2019 Population Age 55-59 1,422 9,456 25,464
2019 Population Age 60-64 1,329 8,648 23,216
2019 Population Age 65-69 957 6,940 19,251
2019 Population Age 70-74 792 5,343 14,802
2019 Population Age 75-79 558 3,798 10,044
2019 Population Age 80-84 434 2,779 6,976
2019 Population Age 85+ 437 3,153 7,495
2019 Population Age 18+ 19,888 143,659 352,791
2019 Median Age 32 31 33
2019 INCOME BY AGE 1 MILE 3 MILE 5 MILE
Median Household Income 25-34 $47,893 $53,592 $60,544
Average Household Income 25-34 $61,012 $66,682 $78,937
Median Household Income 35-44 $45,443 $55,312 $68,590
Average Household Income 35-44 $60,751 $71,592 $90,724
Median Household Income 45-54 $53,349 $60,501 $72,244
Average Household Income 45-54 $67,367 $77,508 $97,065
Median Household Income 55-64 $43,625 $52,118 $62,710
Average Household Income 55-64 $59,308 $66,947 $86,976
Median Household Income 65-74 $30,892 $38,838 $47,013
Average Household Income 65-74 $48,295 $55,475 $70,900
Average Household Income 75+ $34,028 $42,554 $51,263
2024 POPULATION BY AGE 1 MILE 3 MILE 5 MILE
2024 Population Age 30-34 2,255 15,793 39,569
2024 Population Age 35-39 1,803 13,534 34,922
2024 Population Age 40-44 1,642 11,464 30,461
2024 Population Age 45-49 1,401 9,846 25,979
2024 Population Age 50-54 1,446 9,593 25,257
2024 Population Age 55-59 1,387 9,148 24,318
2024 Population Age 60-64 1,388 8,832 23,897
2024 Population Age 65-69 1,144 7,807 21,462
2024 Population Age 70-74 908 6,334 17,558
2024 Population Age 75-79 712 4,724 13,146
2024 Population Age 80-84 466 3,100 8,114
2024 Population Age 85+ 458 3,246 7,921
2024 Population Age 18+ 20,676 147,593 366,846
2024 Median Age 33 32 35
2024 INCOME BY AGE 1 MILE 3 MILE 5 MILE
Median Household Income 25-34 $51,573 $57,062 $67,236
Average Household Income 25-34 $66,345 $72,887 $88,816
Median Household Income 35-44 $50,000 $61,108 $77,003
Average Household Income 35-44 $67,066 $79,844 $101,952
Median Household Income 45-54 $56,891 $66,309 $79,945
Average Household Income 45-54 $74,796 $87,114 $109,712
Median Household Income 55-64 $49,076 $55,656 $68,195
Average Household Income 55-64 $66,946 $75,086 $97,405
Median Household Income 65-74 $34,829 $41,764 $51,204
Average Household Income 65-74 $55,467 $62,773 $80,306
Average Household Income 75+ $41,689 $49,240 $59,638
Value Add Triplex Demographic Charts | 21
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
Value Add Triplex Demographic Charts | 22
2019 Household Occupancy - 1 Mile Radius
Average Income Median Income
2019 Household Income Average and Median
Value Add Triplex
powered by CREOP
Exclusively Marketed by:
Ivan RamosAssociate619-253-7631 BRE# 02008339 [email protected]