HAMILTON · 2020-03-04 · distinguished wood facade. Resting on over a 7,000 SF lot, there is...
Transcript of HAMILTON · 2020-03-04 · distinguished wood facade. Resting on over a 7,000 SF lot, there is...
4078H A M I L T O N S
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OFFERING MEMORANDUM
N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E
C O N F I D E N T I A L I T Y & D I S C L A I M E RThe 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. Marcus & Millichap
is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.
© 2018 Marcus & Millichap. All rights reserved.
N O N - E N D O R S E M E N T N O T I C EMarcus & 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. Activity ID: ZAA0090720
A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N LY .P L E A S E C O N S U LT Y O U R M A R C U S & M I L L I C H A P A G E N T F O R M O R E D E T A I L S .
OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com
CARSON TRUJILLOSenior Associate
San DiegoDirect: (858)373-3285
[email protected]: CA 01974818
E X C L U S I V E L Y L I S T E D B Y
04 S A L E S C O M P A R A B L E S / / 2 0
05 R E N T C O M P A R A B L E S / / 2 6
06 M A R K E T O V E R V I E W / / 3 0
01 E X E C U T I V E S U M M A R Y / / 0 6
02 P R O P E R T Y D E S C R I P T I O N / / 0 8
03 F I N A N C I A L A N A L Y S I S / / 1 8
TABLE OF CONTENTS
6 E X E C U T I V E S U M M A R Y
4078H A M I L T O N S
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Marcus & Millichap is pleased to present a newly renovated and fully stabilized 10-unit property for sale. 4078 Hamilton Street is a luxury asset in the heart of one of San Diego’s most desired rental markets, North Park.
This property has been completely renovated with a modern design inside and out, and a signature distinguished wood facade. Resting on over a 7,000 SF lot, there is 7,260 rentable SF comprised of 4 two-
bedroom / two-bathroom units and 6 one-bedroom / one-bathroom units. Each unit has been completely remodeled with luxurious new kitchens, bathrooms, white quartz countertops, high-end cabinets, stainless-steel appliances, and much more. Other amenities include on-site laundry, off-street parking, community BBQ and
select units have their own private balconies.
This complex offers investors the rare opportunity to be the proprietor of a fully stabilized asset in one of San Diego’s most profitable rental markets. With some of the best retailers in town establishing their roots here,
North Park continues to draw in the highest quality and most desirable tenants in San Diego. Increasing market demand throughout the city will continue to keep low vacancy at this property with a steady increase in rents.
Being within walking distance to both of North Park’s main thoroughfares, University Avenue and El Cajon Boulevard, this property is centrally located with the investor’s longevity in mind.
Walk Score(87)
4.12% Current Cap Rate
Newly Renovated Luxury Apartments
High Demand Rental Market Continued Growth
Low Maintenance/High Income
Pride of Ownership North Park
7E X E C U T I V E S U M M A R Y
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North Park, with over 80 highly rated bars and restaurants.8 P R O P E R T Y D E S C R I P T I O N
El Cajon BlvdEl Cajon Blvd
University AveUniversity Ave
Texas StTexas St
30th St30th St
4078H A M I L T O N S
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North Park, with over 80 highly rated bars and restaurants.
San Diego’s very own North Park is a neighborhood that has been growing in popularity year after year. With some of the best bars and restaurants in town, this has been one of the most desirable neighborhoods to be apart of. The variety of activities and the diversity within the neighborhood is the reason it is beloved. With the North Park Observatory, and over 80 combined highly rated bars and restaurants, there is never a dull moment when you step foot in this stylish town.
Downtown North Park has its very own signature mark. Right in the middle of 30th Street and University Ave, standing tall, is a large lit up sign to welcome you into the neighborhood. The sign isn’t the only thing electric about this part of town though. The streets are lively with locals and other San Diegans throughout the week looking to grab dinner, a drink, or simply hang out with friends.
Being a rapidly growing community, North Park is currently undergoing major development projects. HG Fenton, an apartment and commercial construction company, is building a complex with over 160 apartment homes; and the ground floor of this site will be restaurant and retail space. Another upscale project is the Broadstone Apartment Complex. This special project has aesthetic architecture, mixing in colorful and creative designs within the building to keep it interesting.
Over recent years, North Park has been put on a pedestal by known magazines such as Forbes and the Los Angeles Times. Forbes magazine quotes, “culturally diverse North Park is home to Craftsman cottages, cafes and diners, coffee shops, several microbreweries, boutiques, and the North Park Farmers Market.” The Los Angeles Times continues to cherish this gentrified neighborhood. “North Park has all the ingredients for the cool school: it’s culturally diverse and has art galleries, boutiques, trendy bars with handcrafted cocktails, and local brews, and foodie-approved eateries.” This neighborhood is considered the complete package.
NORTH PARK SAN DIEGO
“The area is overflowing with a thriving beer scene, cool eateries, and seriously hip boutiques” – San Diego Magazine
Ranked on America’s Best Hipster Neighborhoods by Forbes
”Coolest hipster neighborhoods” - Trip Advisors
10 P R O P E R T Y D E S C R I P T I O N
E X T E R I O RI M P R O V E M E N T S
New Roof with Warranty
Completely redesigned contemporary front façade, redwood siding and contemporary brushed stainless-steel cylinder lighting and address numbers
Dual pane windows throughout
Removal and replacement of concrete in the parking and courtyard area
Extensive new drought tolerant landscaping, DG, andinstallation of drip-irrigation system
New redwood fencing in the front and corrugated metalfencing in the courtyard
New three-toned exterior paint
New exterior Cebu Tile on Balconies and Laundry Room
New security lighting
New entry doors with glass inserts and custom paint
New Weber Summit 4-Burner Stainless Steel BBQ inCourtyard
11P R O P E R T Y D E S C R I P T I O N
12 P R O P E R T Y D E S C R I P T I O N
13P R O P E R T Y D E S C R I P T I O N
I N T E R I O R I M P R O V E M E N T S
Retexturing of all interior walls and ceilings
New contemporary wood laminate flooring and baseboards
New wall heaters in all units
New Redesigned Kitchens : » New contemporary kitchen cabinets and pulls» New GE Stainless Steel appliances including gas range/
microwave, dishwasher, and refrigerator» New White Quartz kitchen countertops with stainless steel
under mount sinks» New subway tile backsplashes» New contemporary lighting fixtures» New garbage disposals
New contemporary ceiling fans/light fixtures in the dining areas and light fixtures throughout, including contemporary wall sconces
Brand New Bathrooms:» New combination showers/tubs with glass doors» New contemporary Cebu tile surrounds and flooring» New Vanities with contemporary faucets, light fixtures
and mirrors» Custom-designed vanities with White Quartz Countertops,
contemporary faucets, light fixtures and mirrors in twounits
» New toilets
New two-toned designer interior paint
New closets and interior doors as required
New Window Coverings
Completely refurbished laundry room including two new speed queen stacked washer/dryer units
New portable air conditioning units provided to all tenants at move-in
14 P R O P E R T Y D E S C R I P T I O N
15P R O P E R T Y D E S C R I P T I O N
16 P R O P E R T Y D E S C R I P T I O N
17P R O P E R T Y D E S C R I P T I O N
18 F I N A N C I A L A N A L Y S I S
PRICING DETAILS // 4078 HAMILTON STREET
SUMMARYPrice $4,195,000
Down Payment $1,745,120 42%
Number of Units 10
Price Per Unit $419,500
Price Per SqFt $577.82
Gross SqFt 7,260
Lot Size 0.16 Acres
Approx. Year Built 1971 / 2019
RETURNS CURRENT YEAR 1
CAP Rate 4.12% 4.34%
GRM 16.68 16.04
Cash-on-Cash 2.33% 2.86%
Debt Coverage Ratio
1.31 1.38
FINANCING 1ST LOANLoan Amount $2,449,880Loan Type NewInterest Rate 3.50%Amortization 30 Years
Year Due 2025
# OF UNITS
UNIT TYPE SCHEDULED RENTS
MARKET RENTS
6 1Bedroom 1Bath $1,856 $1,938
4 2 Bedroom 2 Bath $2,456 $2,544
INCOME CURRENT YEAR 1
Gross Scheduled Rent $251,520 $261,600
Less: Vacancy/Deductions 3.0% $7,546 3.0% $7,848
Total Effective Rental Income $243,974 $253,752
Other Income $10,4401 $10,4401
Effective Gross Income $254,414 $264,192
Less: Expenses 32.1% $81,790 31.1% $82,279
Net Operating Income $172,625 $181,913
Cash Flow $172,625 $181,913
Debt Service $132,013 $132,013
Net Cash Flow After Debt Service 2.33% $40,612 2.86% $49,901
Principal Reduction $47,153 $48,831
Total Return 5.03% $87,765 5.66% $98,731
EXPENSES CURRENT YEAR 1
$51,682 $51,682
$2,427 $2,427
$4,500 $4,500
$1,600 $1,600$3,500 $3,500
$1,200 $1,200$660 $660
Real Estate Taxes
Insurance
Utilities - Water & Sewer
Utilities - Gas & Electric
Trash Removal
Repairs & Maintenance
Landscaping
Pest
Operating Reserves
Management Fee $12,721 $13,210
Total Expenses $81,790 $82,279
Expenses/Unit $8,179 $8,228
Expenses/SF $11.27 $11.33
[1] Owned laundry income collected at $150/month + pet rent + RUBS
$2,000
$1,500
$2,000
$1,500
19F I N A N C I A L A N A L Y S I S
RENT ROLL SUMMARY // 4078 HAMILTON STREET
CURRENT YEAR 1
UNIT TYPE # OF UNITS
AVG. SQFEET
RENTAL RANGE
AVG. RENT
AVG. RENT/SF
MONTHLY INCOME
AVG. RENT
AVG. RENT/SF
MONTHLY INCOME
1 Bedroom / 1 Bathroom 6 640 $1,750 - $1,895 $1,856 $2.90 $11,135 $1,938 $3.03 $11,625
2 Bedroom / 2 Bathroom 4 855 $2,425 - $2,525 $2,456 $2.87 $9,825 $2,544 $2.98 $10,175
TOTAL / WEIGHTED AVERAGES 10 726 $2,096 $2.89 $20,960 $2,159 $2.97 $21,589
GROSS ANNUALIZED RENTS $251,520 $261,600
UNIT UNIT TYPE SQUAREFEET
CURRENT RENT/MONTH
CURRENT RENTSF/MONTH
YEAR 1 RENT/MONTH
YEAR 1RENT/SF/MONTH
1 2Bedroom / 2Bathroom 855 $2,425 $2.84 $2,525 $2.95
2 1Bedroom / 1Bathroom 640 $1,825 $2.85 $1,950 $3.05
3 1Bedroom / 1Bathroom 640 $1,750 $2.73 $1,875 $2.93
4 1Bedroom / 1Bathroom 640 $1,875 $2.93 $1,950 $3.05
5 2Bedroom / 2Bathroom 855 $2,425 $2.84 $2,525 $2.95
6 2Bedroom / 2Bathroom 855 $2,525 $2.95 $2,600 $3.04
7 1Bedroom / 1Bathroom 640 $1,895 $2.96 $1,950 $3.05
8 1Bedroom / 1Bathroom 640 $1,895 $2.96 $1,950 $3.05
9 1Bedroom / 1Bathroom 640 $1,895 $2.96 $1,950 $3.05
10 2Bedroom / 2Bathroom 855 $2,450 $2.87 $2,525 $2.95
TOTAL 7,260 $20,960 $2.89 $21,800 $3.00
RENT ROLL
2
6
3
4
9
5
1
8
7
4078 Hamilton Street
4319 Mississippi Street
4045 30th Street
4525 Campus Avenue
2313 Lincoln Avenue
4534 30th Street
3233 Herman Avenue
4017 Georgia Street
4204 Campus Avenue
3579 3rd Avenue
1
2
3
456
7
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SALES COMPARABLES
20 S A L E S C O M P A R A B L E S
4078 Hamilton StreetSan Diego, CA 92104
4319 MISSISSIPPI STREETSan Diego, CA 92104
1 4045 30TH STREETSan Diego, CA 92104
2
Sale Price $4,195,000
Sale Date On Market
Year Built 1971 / 2019
Price per Unit $419,500
Price per Square Foot $577.82
CAP Rate 4.12%
GRM 16.68
Number of Units 10
Units Unit Type
6 1 Bedroom/ 1 Bathroom
4 2 Bedroom/ 2 Bathroom
Sale Price $10,700,000
Sale Date 2/22/2018
Year Built 2017
Price per Unit $509,524
Price per Square Foot $704.41
CAP Rate 3.94%
GRM 17.77
Number of Units 21
Sale Price $5,700,000
Sale Date 2/8/2019
Year Built 2017
Price per Unit $518,182
Price per Square Foot $552.00
CAP Rate 4.23%
GRM 16.56
Number of Units 11
Units Unit Type
2 Studio/ 1 Bathroom
14 1 Bedroom/ 1 Bathroom
5 2 Bedroom/ 2 Bathroom
Units Unit Type
9 2 Bedroom/ 2 Bathroom
1 2 Bedroom/ 2 Bathroom Affordable
1 Comercial
21S A L E S C O M P A R A B L E S
4525 CAMPUS AVENUESan Diego, CA 92116
3
Sale Price $4,100,000
Sale Date 12/5/2018
Year Built 1989
Price per Unit $410,000
Price per Square Foot $443.00
Cap Rate 4.00%
GRM 16.00
Number of Units 10
Units Unit Type
10 2 Bedroom/ 2 Bathroom
4534 30TH STREET San Diego, CA 92116
52313 LINCOLN AVENUESan Diego, CA 92104
4
Sale Price $3,630,000
Sale Date 7/24/2019
Year Built 1957 / 2018
Price per Unit $363,000
Price per Square Foot $623.00
Cap Rate 4.00%
GRM 16.28
Number of Units 10
Sale Price $2,552,000
Sale Date 11/16/2018
Year Built 1960
Price per Unit $425,333
Price per Square Foot $668.00
Cap Rate 4.00%
GRM 17.6
Number of Units 6
Units Unit Type
8 1 Bedroom/ 1 Bathroom
2 2 Bedroom/ 1 Bathroom
Units Unit Type
5 1 Bedroom/ 1 Bathroom
1 2 Bedroom/ 1 Bathroom
22 S A L E S C O M P A R A B L E S
3233 HERMAN AVESan Diego, CA 92104
6 4204 CAMPUS AVESan Diego, CA 92103
8
Sale Price $3,202,500
Sale Date 7/25/2019
Year Built 1972 / 2018
Price per Unit $400,313
Price per Square Foot $589.00
Cap Rate 4.37%
GRM 15.47
Number of Units 8
Sale Price $5,450,000
Sale Date On Market
Year Built 1970 / 2018
Price per Unit $454,167
Price per Square Foot $713.00
Cap Rate 4.00%
GRM 16.30
Number of Units 12
Units Unit Type
5 1 Bedroom/ 1 Bathroom
2 2 Bedroom/ 1 Bathroom
1 2 Bedroom/ 2 Bathroom
Units Unit Type
10 1 Bedroom/ 1 Bathroom
2 2 Bedroom/ 1 Bathroom
4017 GEORGIA STREETSan Diego, CA, 92103
7
Sale Price $6,850,000
Sale Date On Market
Year Built 2017
Price per Unit $526,923
Price per Square Foot $676.68
Cap Rate 3.90%
GRM 17.10
Number of Units 13
Units Unit Type
5 1 Bedroom/ 1 Bathroom
1 1 Bedroom/ 1 Bathroom *
1 2 Bedroom/ 1 Bathroom
1 2 Bedroom/ 2 Bathroom + Den
3 2 Bedroom/ 2 Bathroom
3579 3RD AVENUESan Diego, CA, 92103
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Sale Price $3,200,000
Sale Date On Market
Year Built 1940 / 2018
Price per Unit $400,000
Price per Square Foot $573.00
Cap Rate 4.03%
GRM 16.00
Number of Units 8
Units Unit Type
5 1 Bedroom/ 1 Bathroom
3 2 Bedroom/ 1 Bathroom
24 S A L E S C O M P A R A B L E S
25S A L E S C O M P A R A B L E S
2
7
65
4
3
1
4078 Hamilton Street
3233 Herman Avenue
1237 Pennsylvania Ave
4319 Mississippi Street
4054 Flordia Street
3770 Grim Avenue
3684 Alabama Street
4674 Ohio Street
3744 Arnold Avenue
1
2
3
456
78
RENT COMPARABLES
8
26 R E N T C O M P A R A B L E S
UNIT TYPE UNITS SQUARE FEET RENT RENT/SF
1 Bedroom / 1 Bathroom 6 640 $1,895 $2.96
2 Bedroom / 2 Bathroom 4 850 $2,456 $2.89
TOTAL/WTD. AVG. 10 $2,096 $2.89
TotalUnits10 Year
Built 19714 0 7 8 H A M I L T O N S T R E E TSan Diego, CA 92104
UNIT TYPE UNITS SQUARE FEET RENT RENT/SF
1 Bedroom / 1 Bathroom 5 580 $2,050 $3.66
2 Bedroom / 1 Bathroom 2 818 $2,300 $2.81
2 Bedroom / 2 Bathroom 1 888 $2,500 $2.82
TOTAL/WTD. AVG. 8 762 $2,283 $3.10
3 2 3 3 H E R M A N A V E N U ESan Diego, CA 92103
1TotalUnits08 Year
Built 1957
UNIT TYPE UNITS SQUARE FEET RENT RENT/SF
1 Bedroom / 1 Bathroom 1 580 $2,195 $3.78
TOTAL/WTD. AVG. 1 580 $2,195 $3.78
1 2 3 7 P E N N S Y L V A N I A A V E San Diego, CA 92103
2TotalUnits07 Year
Built 1911
27R E N T C O M P A R A B L E S
UNIT TYPE UNITS SQUARE FEET RENT RENT/SF
2 Bedroom /2 Bathroom 1 1084 $2,550 $2.35
TOTAL/WTD. AVG. 1 1084 $2,550 $2.35
4 0 5 4 F L O R D I A S T R E E TSan Diego, CA 92104
4TotalUnits09 Year
Built 1978
UNIT TYPE UNITS SQUARE FEET RENT RENT/SF
1 Bedroom / 1 Bathroom 1 653 $2,295 $3.51
2 Bedroom / 1 Bathroom 1 945 $2,921 $3.09
TOTAL/WTD. AVG. 2 799 $2,608 $3.30
4 3 1 9 M I S S I S S I P P I S T R E E TSan Diego, CA 92104
3TotalUnits21 Year
Built 2017
UNIT TYPE UNITS SQUARE FEET RENT RENT/SF
2 Bedroom / 2 Bathroom 1 854 $2,500 $2.93
TOTAL/WTD. AVG. 1 854 $2,500 $2.93
3 7 7 0 G R I M A V E N U E San Diego, CA, 92103
5TotalUnits07 Year
Built 1981
28 R E N T C O M P A R A B L E S
UNIT TYPE UNITS SQUARE FEET RENT RENT/SF
1 Bedroom / 1 Bathroom 2 650 $1,950 $3.00
2 Bedroom / 1 Bathroom 6 850 $2,295 $2.70
TOTAL/WTD. AVG. 8 750 $2,123 $2.85
4 6 7 4 O H I O S T R E E TSan Diego, CA 92116
7TotalUnits08 Year
Built 1964
UNIT TYPE UNITS SQUARE FEET RENT RENT/SF
2 Bedroom / 2 Bathroom 1 822 $2,600 $3.16
1 Bedroom / 1 Bathroom 1 680 $2,100 $3.09
TOTAL/WTD. AVG. 2 751 $2,350 $3.13
3 6 8 4 A L A B A M A S T R E E TSan Diego, CA 92104
6TotalUnits12 Year
Built 2013
UNIT TYPE UNITS SQUARE FEET RENT RENT/SF
2 Bedroom / 2 Bathroom 1 920 $2,500 $2.72
TOTAL/WTD. AVG. 1 920 $2,500 $2.72
3 7 4 4 A R N O L D A V E N U ESan Diego, CA 92104
8TotalUnits15 Year
Built 1986
29R E N T C O M P A R A B L E S
America’s Finest CityAmerica’s Finest City''
30 M A R K E T O V E R V I E W
C i t y O fS A N D I E G O
The San Diego-Carlsbad metro is located in the southwestern portion of the state of California. Comprising San Diego County, it sits adjacent to the Mexican border, extending north to the southern edge of Orange County and Riverside County. From west to east, it is situated between the Pacific Ocean and Imperial County.
San Diego is the most populous city in the county with 1.4 million residents, followed by Chula Vista with 270,000 and Oceanside with 181,000 people. A diverse economic base includes military, finance, tourism and real estate. Employment in these industries coupled with a strong retail base draw many job seekers to the region.
ECONOMY
• The San Diego metro is maintaining economic growth. Gross Metro Product (GMP) grew 3.4 percent last year versus 2.5 percent for the nation.
• The U.S. Department of Defense has a significant impact on the local economy. The largest employer in the county is the U.S. Navy at the Naval Base Coronado, which includes the North Island Naval Air Station. Camp Pendleton is also a significant employer.
• Tech firms are proliferating. Major technology and research companies include Leidos, General Dynamics NASSCO, Qualcomm and BAE Systems.
METRO HIGHLIGHTS
WHITE-COLLAR JOBSThe professional and business services sector accounts for a larger share of total employment than the U.S. average.
POPULATION GROWTHA gain of approximately 100,000 residents in the metro over the next five years will increase the need for basic health and education services.
HIGHLY AFFLUENT POPULATIONSan Diego’s median household income of $70,800 per year is well above the national median.
MANUFACTURING
PROFESSIONAL ANDBUSINESS SERVICES
GOVERNMENT
LEISURE AND HOSPITALITY
FINANCIAL ACTIVITIES
TRADE, TRANSPORTATION AND UTILITIES
CONSTRUCTION
EDUCATION AND HEALTH SERVICES
INFORMATION
OTHER SERVICES
7%
16%
17%
13%
5%
15%
6%
14%
2%
4%
SHARE OF 2018 TOTAL EMPLOYMENT
31M A R K E T O V E R V I E W
QUALITY OF LIFESan Diego is California’s oldest community. A large harbor, miles of beaches and exceptional weather attract businesses, residents and tourists. San Diego still houses a number of buildings and facilities from its past, including two missions, Old Town San Diego, Balboa Park and the Hotel del Coronado. San Diego County has grown into a sophisticated, urban region. Its downtown area has undergone a renaissance in the past decade or so. Petco Park, home of the San Diego Padres, spurred redevelopment that spread to the mid-city communities and attracted residents to the urban core. San Diego’s major tourist attractions are the San Diego Zoo, San Diego Wild Animal Park, SeaWorld San Diego and Legoland.
2018 POPULATION BY AGE
SPORTS: San Diego Padres, Zest San Diego F.C., San Diego Gulls
EDUCATION: UC San Diego, San Diego State University, San Diego Mesa College, University of San Diego
ARTS & ENTERTAINMENT: San Diego Zoo, The San Diego Museum of Art, Balboa Park, Sea World, Legoland
• The metro population consists of almost 3.3 million people and will expand to 3.5 million residents through 2022. During this time, 59,000 households will be added.
• A median home price of $609,000 is more than double the U.S. median, resulting in a homeownership rate of 53 percent, which is below the national rate of 64 percent.
• Residents are more educated than the nation. Roughly 35 percent of the people age 25 and older have a bachelor’s degree, compared with 29 percent for the U.S.
DEMOGRAPHICS// 4078 HAMILTON STREET
6%0-4 Years
18%5-19 Years
8%20-24 Years
29%25-44 Years
24%45-64 Years
13%65+ Years
32 M A R K E T O V E R V I E W
DEMAND MATCHES DEVELOPMENT; STRONG RENT GROWTH FOLLOWS
Rising home values force more residents into apartments. San Diego County entered the fourth quarter of 2018 with unemployment at a cycle-low level, suggesting employers will recruit from outside the metro with greater frequency when filling higher-paying openings moving forward. For most households and individuals that relocate to the area, housing options will be limited, as the difference between a monthly mortgage payment and average effective rent widened by more than $500 over the past 12 months to a difference of $1,724 per month. This broadening bodes well for future apartment demand and rent growth at a time when vacancy rests below 3 percent in more than half of the metro’s sub-markets.
Tight vacancy warrants robust construction pipeline. Developers are building nearly 7,900 rentals, yet units are concentrated in pockets. Downtown San Diego is home to more than 40 percent of the pipeline including six high-rises that total 2,700 units. The bulk of other rentals being constructed are in Northeast San Diego, Chula Vista and Carmel Valley. Another group of submarkets with sub-3 percent unit availability lack construction pipelines, suggesting their inventories of vacant units should further constrict in the coming quarters.
SAN DIEGO// METRO AREA
Construction:Driven by the completion of nearly 3,600 units in the city of San Diego, overall delivery volume in the metro dips nominally during 2019. Projects finalized this year comprise an average of 190 units
Vacancy:San Diego’s average vacancy rate rises slightly to 3.8 percent as more than 3,000 units are absorbed for a seventh consecutive year.
Rents:Strong absorption supports another year of steady rent growth, lifting the average effective rate to $2,045 per month. In 2018, rents expanded 5.3 percent.
4,400 unitswill be completed
20 basis pointdecrease in
vacancy
4.3% increase in effective rents
MULTIFAMILY 2019 OUTLOOK
33M A R K E T O V E R V I E W
DEMOGRAPHICS // 4078 HAMILTON STREET
276,871To t a l P o p u l a t i o n W i t h i n 3 M i l e R a d i u s
GENDER
51.3%
48.7%
$81,716Average Household Income within
3 M i l e Radius
125,075To t a l H o u s e h o l d s i n 3 M i l e R a d i u s
34 M A R K E T O V E R V I E W
University Heights1.0 Miles
Downtown4.6 Miles
Hillcrest2.0 Miles
58Good transit
Many nearby public transportation options.
70Bikeable
Mostly flat, minimal bike lanes.
87Very WalkableMost errands can be
accomplished on foot.
35M A R K E T O V E R V I E W
CARSON TRUJILLOSenior Associate
San DiegoDirect: (858)373-3285
[email protected]: CA 01974818
E X C L U S I V E L Y L I S T E D B Y
4078H A M I L T O N S
TR
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