1144 Fresno Street - LoopNet · 2017-09-14 · Insurance $2,546 Utilities (separate meters for...

1144 Fresno Street

OFFERING MEMORANDUM

SAN DIEGO, CA

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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, PCB's or asbestos, the compliance with 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 Marketing Brochure 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.

SAN DIEGO, CA

1144 Fresno Street

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

1144 Fresno StreetSAN DIEGO, CA

PRICING AND FINANCIAL ANALYSIS

Price $4,800,000

Down Payment 38% / $1,824,000

Price/Unit $800,000

Price/SF $413.90

Number of Units 6

Rentable Square Feet 11,597

Number of Buildings 2

Number of Stories 3

Year Built 2017

Lot Size 10,062 SF

Vital Data

CAP Rate - Est. Current 4.15%

GRM - Est. Current 16.88

Net Operating Income - Est. Current $199,075

Net Cash Flow After Debt Service - Est. Current 1.9% / $33,890

Total Return - Est. Current 4.9% / $88,706

Unit Mix

No. of

Units

Unit

Type

Approx.

Square Feet

1 4 Bdr 3 Bath 2,028

1 4 Bdr 4 Bath 1,891

1 4 Bdr 3 Bath 2,025

1 4 Bdr 3 Bath 1,981

1 4 Bdr 4 Bath 1,781

1 4 Bdr 3 Bath 1,891

6 Total 11,597

Major Employers

Company Local

Employees

Univers of Calif San Diego Hs 5,000

Solar Turbines Incorporated 4,265

Naval Medical Center 4,250

Medical Center 4,000

Fleet Readiness Center SW 3,200

Elite Show Services Inc 3,123

United States Dept of Navy 3,053

Rady Chld Hospital-San Diego 3,041

Sharp Memorial Hospital 3,000

San Diego Police Department 2,789

McDonalds 2,327

County of San Diego 2,050

Demographics

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1-Mile 3-Miles 5-Miles

2014 Total

Population

17,996 142,374 456,260

2019 Total

Population

18,470 144,978 467,576

2014 Total

Households

7,772 65,217 209,996

2019 Total

Households

8,013 66,718 217,349

Median HH Income $56,055 $53,282 $51,642

Per Capita Income

(based on Total

Population)

$38,329 $37,240 $36,248

Average (Mean) HH

Income

$83,125 $78,886 $76,595

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0090910 Marcus &Millichap. All rights reserved.

OFFERING SUMMARY

Existing Financing

Loan Type Free and Clear

Proposed Financing

First Trust Deed

Loan Amount $2,976,000

Loan Type Proposed New

Interest Rate 3.74%

Amortization 30 Years

Debt Coverage Ratio 1.21

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FINANCING

4B4B: 33%

4B3B: 67%

No. of

Units

Unit

Type

Approx.

Square FeetEst. Current Rents

Rent/

SF

Monthly

Income

1 4 Bdr 3 Bath 2,028 $3,950 $2.29 $3,950

1 4 Bdr 4 Bath 1,891 $3,950 $2.35 $3,950

1 4 Bdr 3 Bath 2,025 $3,950 $2.12 $3,950

1 4 Bdr 3 Bath 1,981 $3,950 $2.22 $3,950

1 4 Bdr 4 Bath 1,781 $3,950 $2.49 $3,950

1 4 Bdr 3 Bath 1,891 $3,950 $2.22 $3,950

6 TOTAL 11,597 $23,700

Unit Mix Unit Rent & Rent/SF

$0.00

$0.30

$0.60

$0.90

$1.20

$1.50

$1.80

$2.10

$2.40

$0

$400

$800

$1,200

$1,600

$2,000

$2,400

$2,800

$3,200

$3,600

$4,000

4B3B4B4B

4B3B4B3B

4B4B4B3B

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UNIT MIX

Address

1144 Fresno St

1146 Fresno St

1148 Fresno St

1150 Fresno St

1152 Fresno St

1154 Fresno St

Income Est. Current Per Unit

GROSS POTENTIAL INCOME $284,400 $47,400

Vacancy/Collection Allowance (GPR) 3.0% / $8,532 $1,422

EFFECTIVE GROSS INCOME $275,868 $45,978

Expenses

Real Estate Taxes (1.1743% + $46) $56,412 $9,402

Insurance $2,546 $424

Utilities (separate meters for water) $800 $133

Repairs & Maintenance $4,200 $700

Management Fee 4.0% / $11,035 $1,839

Reserves & Replacements $1,800 $300

TOTAL EXPENSES $76,793 $12,799

Expenses per SF $6.62

% of EGI 27.8%

NET OPERATING INCOME $199,075 $33,179

Total Number of Units: 6

Total Rentable Area: 11,597 SF

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INCOME & EXPENSES

No. of

Units

Unit

Type

Approx.

Square Feet

Est. Current Rents Rent/

SF

Monthly

Income

1 4 Bdr 3 Bath 2,028 $3,950 $2.29 $3,950

1 4 Bdr 4 Bath 1,891 $3,950 $2.35 $3,950

1 4 Bdr 3 Bath 2,025 $3,950 $2.12 $3,950

1 4 Bdr 3 Bath 1,981 $3,950 $2.22 $3,950

1 4 Bdr 4 Bath 1,781 $3,950 $2.49 $3,950

1 4 Bdr 3 Bath 1,891 $3,950 $2.22 $3,950

6 Total/Wtd. Avg. 11,597 $23,700

FIRST TRUST DEED

Loan Amount $2,976,000

Loan Type Proposed New

Interest Rate 3.74%

Amortization 30 Years

Annualized Operating Data

Income Est. Current

Gross Potential Rent $284,400

Gross Potential Income $284,400

Less: Vacancy/Deductions (GPR) 3.0% / $8,532

Effective Gross Income $275,868

Less: Expenses $76,793

Net Operating Income $199,075

Net Cash Flow Before Debt Service $199,075

Debt Service $165,185

Debt Coverage Ratio 1.21

Net Cash Flow After Debt Service 1.9% / $33,890

Principal Reduction $54,816

Total Return 4.9% / $88,706

1144 Fresno Street

San Diego, CA 92110

Price $4,800,000

Down Payment 38% / $1,824,000

Number of Units 6

Price/Unit $800,000


Price/SF $413.90

CAP Rate - Est. Current 4.15%

GRM - Est. Current 16.88

Year Built 2017

Lot Size 10,062 SF

Type of Ownership Fee Simple

Location

Financing

Expenses

Real Estate Taxes $56,412

Insurance $2,546

Utilities (separate meters for water) $800

Repairs & Maintenance $4,200

Management Fee $11,035

Reserves & Replacements $1,800

Total Expenses $76,793

Expenses/unit $12,799

Expenses/SF $6.62

% of EGI 27.84%

Scheduled Income

Loan information is time sensitive and subject to

change. Contact your local Marcus & Millichap

Capital Corporation representative.

5




FINANCIAL OVERVIEW

Address

1144 Fresno St

1146 Fresno St

1148 Fresno St

1150 Fresno St

1152 Fresno St

1154 Fresno St


PROPERTY DESCRIPTION

Marcus & Millichap is pleased to present 1144 Fresno Street, a luxury multifamily investment opportunity located six blocks from the University of San Diego campus. This brand new construction custom buildout capitalizes on square footage with functional, multi-story floor plans. The property comprises six (6) upscale townhome units with a mix of four (4) 4-bedroom/3-bath units and two (2) 4-bedroom/4-bath units. The interiors feature designer upgrades such as KraftMaid cabinetry, quartz countertops, high-end appliances, and DuChâteau flooring. Additionally, each apartment home has its own rooftop deck offering sweeping views of Mission Bay, and direct access to a two-car garage. The units have no shared walls for maximum privacy, are each individually metered for water, gas, and electric, and have been built to condominium specifications making this an attractive investment for rental income or to sell as individual homes after subdividing the property.

The University of San Diego is a private Roman Catholic college with an enrollment of approximately 8,500 undergraduate and graduate students. The 180-acre campus is two miles north of downtown San Diego in the community of Linda Vista, and beaches, mountains, and the Mexican border are all within a short drive. Nearby Mission Valley is a main shopping, dining, and entertainment center in San Diego, situated amongst many comparable luxury apartment communities.

This offering is a rare opportunity to acquire an asset of this quality and in this location, that is always in high-demand by students and long-term residents alike.

Investment Highlights

■ Six (6) new construction, luxury apartment townhomeslocated six blocks from the University of San Diego

■ Four (4) 4BR/3BA units and two (2) 4BR/4BA units

■ Features include designer interior finishes, direct accesstwo-car garages, private rooftop decks, in-unitwashers/dryers, fire-sprinkler system throughout

■ Units individually metered for water, gas, and electric,and built to condo specifications

■ Easy access to Interstates 5 and 8; central locationoffers an easy commute to anywhere in the county

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INVESTMENT OVERVIEW

The Mid-Coast Trolley will extend Blue Line Trolley service from Santa Fe Depot in Downtown San Diego to the University City community - considered San Diego's second downtown - serving major activity centers such as Old Town, Linda Vista, UC San Diego and Westfield UTC. Construction began in fall 2016 and service is anticipated to begin in 2021.

Freeways and arterials in the Mid-Coast Corridor are generally congested and traffic congestion is projected to increase more as the region grows. The population along the corridor is predicted to increase 19 percent by the year 2030, while employment is predicted to increase 12 percent.

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MID-COAST CORRIDOR TRANSIT PROJECT

The Offering

Property Address 1144 Fresno Street

San Diego, CA 92110

Assessor's Parcel Number 436-593-11 and 12

Zoning RM-3-7

Site Description

Number of Units 6

Number of Buildings 2

Number of Stories 3

Year Built 2017


Lot Size 10,062 SF

Type of Ownership Fee Simple

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PROPERTY SUMMARY

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PROPERTY PHOTOS

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PROPERTY PHOTOS

Local Map Regional Map

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AREA MAPS

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AERIAL PHOTO

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PLAT MAP

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FLOOR PLANS

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FLOOR PLANS

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FLOOR PLANS

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FLOOR PLANS

SAN DIEGO, CA

OFFERING MEMORANDUM

1144 Fresno Street

Offices Throughout the U.S. and Canada

www.MarcusMillichap.com

1144 Fresno Street - LoopNet · 2017-09-14 · Insurance $2,546 Utilities (separate meters for...

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