OCEAN VIEW TERRACE APARTMENTS · 2020. 9. 11. · SEPTEMBER 10, 2020 OFFERING MEMORANDUM OCEAN VIEW...

O C E A N V I E W T E R R A C EA PA R T M E N T S3 9 6 9 O C E A N V I E W B LV D. / SAN DIEGO, CA 92113

S E P T E M B E R 1 0 , 2 0 2 0O F F E R I N G M E M O R A N D U M

O C E A N V I E W T E R R A C E A PA R T M E N T S

TA B L E O F C O N T E N T S

I. PROPERTY INFORMATION 3

II. PROPERTY DESCRIPTION 9

III. LOCATION INFORMATION 12

IV. FINANCIAL ANALYSIS 16

V. DEMOGRAPHICS 21

ContentsConfidentiality & DisclaimerAll materials and information received or derived from ACRE Investment Real Estate Services,LLC its directors, officers, agents, advisors, affiliates and/or any third party sources are providedwithout representation or warranty as to completeness , veracity, or accuracy, condition of theproperty, compliance or lack of compliance with applicable governmental requirements,developability or suitability, financial performance of the property, projected financialperformance of the property for any party’s intended use or any and all other matters.

Neither ACRE Investment Real Estate Services, LLC its directors, officers, agents, advisors, oraffiliates makes any representation or warranty, express or implied, as to accuracy orcompleteness of the any materials or information provided, derived, or received. Materials andinformation from any source, whether written or verbal, that may be furnished for review are nota substitute for a party’s active conduct of its own due diligence to determine these and othermatters of significance to such party. ACRE Investment Real Estate Services, LLC will notinvestigate or verify any such matters or conduct due diligence for a party unless otherwiseagreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify allinformation and to conduct their own inspections and investigations including throughappropriate third party independent professionals selected by such party. All financial datashould be verified by the party including by obtaining and reading applicable documents andreports and consulting appropriate independent professionals. ACRE Investment Real EstateServices, LLC makes no warranties and/or representations regarding the veracity, completeness,or relevance of any financial data or assumptions. ACRE Investment Real Estate Services, LLCdoes not serve as a financial advisor to any party regarding any proposed transaction. All dataand assumptions regarding financial performance, including that used for financial modelingpurposes, may differ from actual data or performance. Any estimates of market rents and/orprojected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual andgovernmental limitations as well as market conditions,vacancy factors and other issues in orderto determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should bediscussed by the party with a certified public accountant or tax attorney. Title questions shouldbe discussed by the party with a title officer or attorney. Questions regarding the condition ofthe property and whether the property complies with applicable governmental requirementsshould be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by ACREInvestment Real Estate Services, LLC in compliance with all applicable fair housing and equalopportunity laws.

II | PROPERTY INFORMATIONA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S

2365 NORTHSIDE DRIVE STE 120 | SAN DIEGO, CA 92108WWW.ACRECOMMERCIAL.COM

C H R I S R O B I N S O N C H R I S T O P H E R S A R V E R

619.255.3222 619.255.6572

[email protected] [email protected]

3 9 6 9 O C E A N V I E W B L V D . , S A N D I E G O , C A 9 2 1 1 3 P R O P E R T Y I N F O R M A T I O N | 4O F F E R I N G M E M O R A N D U M

OFFERING SUMMARY

Sale Price: $1,550,000

Number Of Units: 8

Price / Unit: $193,750

Price / SF: $318.28

Cap Rate: 5.52%

Building Size: 4,870

Lot Size: 6,464 Sq. Ft.

Year Built: 1960


E X E C U T I V E S U M M A R Y


ACRE is proud to present the Ocean View Terrace Apartments; a fundamentally solid 8 unit communityconveniently located in the Mountain View sub-market just minutes to downtown San Diego. The asset hasbeen under current ownership for nearly a decade with several of the units being remodeled over theyears in addition to other upgrades made. Recent upgrades include a completely new roof (this year -2020)and a complete new exterior paint and landscaping remodel (2019). The owner has made other repairsand replacements as necessary. There is on-site laundry for tenant convenience and rear alley access.This asset has historic 100% occupancy and provides convenient housing for tenants with close proximityto Downtown San Diego, Chula Vista and is located in between the 15 & 805 freeways.

The astute investor focused on fundamentally grounded cashflow will see value in this offering as a reliableand consistent performed.

PROPERTY OVERVIEW


I N V E S T M E N T O V E R V I E W


PROPERTY HIGHLIGHTS

• Central Location with Close Proximity to Downtown & Major Freeways

• Near Great Parks & Schools

• Several Interiors have been Remodeled with a Complete New Roof in 2020

• Complete New Exterior Paint and Landscaping in 2019

INVESTMENT HIGHLIGHTS

• 5.52% Cap Rate on sustainable current #'s with Real Upside

• 6.08% Cap Rate with 7.2% rent increases to existing rent roll

• $193,750 / Unit for 75% 2Bed/1Bath Units

ECONOMIC HIGHLIGHTS

• Excellent Location Fundamentals (Convenient & Central Location)

• Historic 100% Occupancy

• Near Great Parks & Schools


I N V E S T M E N T H I G H L I G H T S



P R O P E R T Y P H O T O S


• Complete New Roof this Year (2020)

• On-Site Laundry Facility

• Modernized Landscaping & Exterior Paint Styling

• Common Area Courtyard

PROPERTY AMENITIES

• Several Units have been Upgraded / Remodeled

• Modernized flooring & finishes

• Select Units have updated Appliances & Cabinets

UNIT AMENITIES


A M E N I T I E S

I II I | PROPERTY DESCRIPT IONA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.3222 619.255.6572


3 9 6 9 O C E A N V I E W B L V D . , S A N D I E G O , C A 9 2 1 1 3 P R O P E R T Y D E S C R I P T I O N | 1 0O F F E R I N G M E M O R A N D U M

Sale Price $1,550,000

LOCATION INFORMATION

Building Name Ocean View Terrace Apartments

Street Address 3969 Ocean View Blvd.

City, State, Zip San Diego, CA 92113

County San Diego

PROPERTY INFORMATION

Property Type Multifamily

Property Subtype Low-Rise/Garden

APN # 546-330-17-00

BUILDING INFORMATION

NOI $85,486.00

Cap Rate 5.52

Number of Floors 2

Year Built 1960

Free Standing No

PARKING & TRANSPORTATION

Number of Parking Spaces 0

UTILITIES & AMENITIES


P R O P E R T Y D E TA I L S

3 9 6 9 O C E A N V I E W B L V D . , S A N D I E G O , C A 9 2 1 1 3 P R O P E R T Y D E S C R I P T I O N | 1 1O F F E R I N G M E M O R A N D U M


P R O P E R T Y P H O T O S

I I II I I | LOCATION INFORMATIONA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.3222 619.255.6572


3 9 6 9 O C E A N V I E W B L V D . , S A N D I E G O , C A 9 2 1 1 3 L O C A T I O N I N F O R M A T I O N | 1 3O F F E R I N G M E M O R A N D U M

Mountain View is a community in the southeastern section of the city of San Diego. It is borderedby Mount Hope and Greenwood Memorial Park on the north, Interstate 15 and the neighborhoodsof Stockton and Logan Heights on the west, Interstate 805 and Lincoln Park on the east,and Southcrest and National City on the south. Major thoroughfares include Imperial Avenue and OceanView Boulevard.

LOCATION OVERVIEW DEMOGRAPHICS

0.5 MILES 1 MILE 1.5 MILES

Total Households 2,041 8,061 18,795

Total Population 8,004 31,698 74,415

Average HH Income $38,754 $39,596 $43,404


L O C AT I O N O V E R V I E W



R E G I O N A L M A P



L O C AT I O N M A P S

IVIV | F INANCIAL ANALYSISA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.3222 619.255.6572


3 9 6 9 O C E A N V I E W B L V D . , S A N D I E G O , C A 9 2 1 1 3 F I N A N C I A L A N A L Y S I S | 1 7O F F E R I N G M E M O R A N D U M

UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF

2Bed/1Bath 6 75.0 650 $1,420 $2.18 $1,504 $2.31

1Bed/1Bath 2 25.0 500 $1,248 $2.50 $1,337 $2.67

Totals/Averages 8 100% 4,900 $11,016 $2.25 $11,698 $2.39


U N I T M I X S U M M A R Y


INVESTMENT OVERVIEW CURRENT MARKET

Price $1,550,000 $1,550,000Price per Unit $193,750 $193,750GRM 11.73 10.94CAP Rate 5.52% 6.08%Cash-on-Cash Return (yr 1) 5.39 % 7.65 %Total Return (yr 1) $42,257 $51,027Debt Coverage Ratio 1.32 1.46

OPERATING DATA CURRENT MARKET

Gross Scheduled Income $132,180 $141,697Other Income $1,241 $1,241Total Scheduled Income $133,421 $142,938Vacancy Cost $3,965 $4,250Gross Income $129,455 $138,687Operating Expenses $43,969 $44,431Net Operating Income $85,486 $94,256Pre-Tax Cash Flow $20,881 $29,651

FINANCING DATA CURRENT MARKET

Down Payment $387,500 $387,500Loan Amount $1,162,500 $1,162,500Debt Service $64,605 $64,605Debt Service Monthly $5,383 $5,383Principal Reduction (yr 1) $21,376 $21,376


F I N A N C I A L S U M M A R Y


INCOME SUMMARY CURRENT PER SF MARKET PER SF

Gross Income $129,455 $26.58 $138,687 $28.48

EXPENSE SUMMARY CURRENT PER SF MARKET PER SF

Property Taxes $19,162 $3.93 $19,162 $3.93Insurance - Fire & Liability $2,400 $0.49 $2,400 $0.49Repairs, Main & Reserves $7,200 $1.48 $7,200 $1.48Water & Sewer $6,000 $1.23 $6,000 $1.23SDGE - House Meter $858 $0.18 $858 $0.18MGMT - Professional $6,473 $1.33 $6,934 $1.42Grounds Maintenance $1,200 $0.25 $1,200 $0.25Pest Control $677 $0.14 $677 $0.14

Gross Expenses $43,970 $9.03 $44,431 $9.12

Net Operating Income $85,486 $17.55 $94,256 $19.35


I N C O M E & E X P E N S E S


UNITNUMBER

UNITBED

UNITBATH

UNITSIZE (SF)

CURRENTRENT

CURRENTRENT (PER SF)

MARKETRENT

MARKETRENT/SF

A 2 1 650 $1,395 $2.15 $1,495 $2.30

B 2 1 650 $1,345 $2.07 $1,442 $2.22

C 2 1 650 $1,395 $2.15 $1,495 $2.30

D 1 1 500 $1,250 $2.50 $1,340 $2.68

E 2 1 650 $1,495 $2.30 $1,603 $2.47

F 2 1 650 $1,495 $2.30 $1,603 $2.47

G 2 1 650 $1,395 $2.15 $1,495 $2.30

H 1 1 500 $1,245 $2.49 $1,335 $2.67

Totals/Averages 4,900 $11,015 $2.25 $11,808 $2.43


R E N T R O L L

VV | DEMOGRAPHICSA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.3222 619.255.6572


3 9 6 9 O C E A N V I E W B L V D . , S A N D I E G O , C A 9 2 1 1 3 D E M O G R A P H I C S | 2 2O F F E R I N G M E M O R A N D U M

0.5 MILES 1 MILE 1.5 MILES

Total population 8,004 31,698 74,415

Median age 26.4 26.4 27.1

Median age (male) 24.4 24.5 25.8

Median age (female) 29.1 28.9 28.8

Total households 2,041 8,061 18,795

Total persons per HH 3.9 3.9 4.0

Average HH income $38,754 $39,596 $43,404

Average house value $444,903 $396,182 $369,585

Total Population - White 4,704 19,215 44,363

% White 58.8% 60.6% 59.6%

Total Population - Black 1,494 4,833 10,426

% Black 18.7% 15.2% 14.0%

Total Population - Asian 108 718 4,198

% Asian 1.3% 2.3% 5.6%

Total Population - Hawaiian 1 58 317

% Hawaiian 0.0% 0.2% 0.4%

Total Population - American Indian 37 347 712

% American Indian 0.5% 1.1% 1.0%

Total Population - Other 1,456 5,745 12,390

% Other 18.2% 18.1% 16.6%

Total Population - Hispanic 6,152 24,891 53,486

% Hispanic 76.9% 78.5% 71.9%

* Demographic data derived from 2010 US Census


D E M O G R A P H I C S R E P O R T

3 9 6 9 O C E A N V I E W B L V D . , S A N D I E G O , C A 9 2 1 1 3 D E M O G R A P H I C S | 2 3O F F E R I N G M E M O R A N D U M

POPULATION 0.5 MILES 1 MILE 1.5 MILESTotal population 8,004 31,698 74,415

Median age 26.4 26.4 27.1

Median age (male) 24.4 24.5 25.8

Median age (Female) 29.1 28.9 28.8

HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES

Total households 2,041 8,061 18,795

# of persons per HH 3.9 3.9 4.0

Average HH income $38,754 $39,596 $43,404

Average house value $444,903 $396,182 $369,585

ETHNICITY (%) 0.5 MILES 1 MILE 1.5 MILESHispanic 76.9% 78.5% 71.9%

RACE (%)White 58.8% 60.6% 59.6%

Black 18.7% 15.2% 14.0%

Asian 1.3% 2.3% 5.6%

Hawaiian 0.0% 0.2% 0.4%

American Indian 0.5% 1.1% 1.0%

Other 18.2% 18.1% 16.6%

* Demographic data derived from 2010 US Census


D E M O G R A P H I C S M A P

O C E A N V I E W T E R R A C E A PA R T M E N T SC H R I S R O B I N S O NCALDRE #01346887

619.255.3222

[email protected]

C H R I S T O P H E R S A R V E R619.255.6572

[email protected]

OCEAN VIEW TERRACE APARTMENTS · 2020. 9. 11. · SEPTEMBER 10, 2020 OFFERING MEMORANDUM OCEAN VIEW...

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