Post on 09-Aug-2020
2635 Camino del Rio S San Diego, CA 92108 www.acicommercial.com
Investment Highlights
Exclusive listing by:
For More Information The Courtney Gabhart Group619-725-3632
Royal Apartments2051-59 Bacon St, San Diego, CA 92107
Curtis Gabhart, PrincipalDRE# 01316761
Senior VP & PrincipalKeith CourtneySenior VP & Principal
Seller Financing 20% Down at5% interest only!
■
3 Parcels of Land■
Beautiful Courtyard■
Laundry Onsite■
Plenty of Parking Spaces■
Table of Contents
Real Estate Investment Details ..................................................................................... 3
Property Description .................................................................................................... 4
Property Photos ............................................................................................................. 5
Maps and Aerials ........................................................................................................... 6
Executive Summary ...................................................................................................... 7
Pro Forma Summary .................................................................................................... 8
Resale Report .................................................................................................................. 9
Internal Rate of Return Analysis .................................................................................. 10
Cumulative Analysis .................................................................................................... 11
Flyer ............................................................................................................... Attachment
Real Estate Investment Details
ANALYSIS
Analysis Date: August 2009
PROPERTY
Property: Royal Apartments
Property Address: 2051-59 Bacon StSan Diego, CA 92107
FINANCIAL INFORMATION
Down Payment: $725,000
Passive Loss Rules: No
Closing Costs: $0
LT Capital Gain: 15.00%
Federal Tax Rate: 35.0%
State Tax Rate: 10.0%
Discount Rate: 4.00%
PURCHASE INFORMATION
Property Type: Multi-Family
Purchase Price: $3,600,000
Fair Market Value: $3,600,000
Units: 22
Total Rentable Sq. Ft.: 7,000
Resale Valuation 3.0% (annual appreciation)
Resale Expenses: 5.0%
LOANS
Debt Term Rate Payment LO Costs
Interest Only $2,875,000 10 yrs 5.0% $11,979
INCOME & EXPENSES
Gross Operating Income: $261,870
Monthly GOI: $21,823
Total Annual Expenses: ($103,005)
Monthly Expenses: ($8,584)
CONTACT INFORMATION
Curtis Gabhart, Principal
DRE# 01316761
619-725-3632
curtisgabhart@aciapartments.com
Keith Courtney
DRE # 01028193
619-725-3635
DISCLAIMER: All information is believed to be accurate.
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projectionsand analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax orother professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting,tax or other professional area before making any decisions.
page 3 of 11
Property DescriptionRoyal Apartments
2051-59 Bacon StSan Diego, CA 92107
Curtis Gabhart, Principal619-725-3632
Property Description
Attractive SELLER FINANCING 80% LTV at 5%Interest only fixed for 10 years.
Beautiful multi-family apartment, rare findbecause of high density! Three buildings onthree parcels. A total of 16 parking spots,laundry on-site, bike storage, beautiful courtyard!Total square footage is 7,000 sf in 22 studiounits! Lot size is 10,348 square feet.
***All income information is based on pro formarents. The information contained herein is fromsources believed to be accurate, but ACICommercial makes no warranty(ies), expressed or implied, regarding same.
Area Description: OCEAN BEACH
Ocean Beach lies at the end of a busy highway known as Interstate 8. This little beach town hasgot a whole lot of everything for just about anyone who finds themselves in this tiny corner of SanDiego, just south of the Mission Bay channel entrance. Ocean Beach is home to rows of antiquestores, a pet shop, bookstores and surf shops, and you can enjoy handmade tamales, hamburgers,cold beer and frosty margaritas. The people of Ocean Beach are very open minded and friendly. Ifyou have a dog, it’s the perfect spot to be. Since 1972, pooches have run legally off their leasheshere on 38 acres of sand and water. It's located where the San Diego River meets the PacificOcean.
Newport Avenue is the main attraction in this ocean side community of over 28,000. Inland and tothe south near Sunset Cliffs the situation becomes a bit more conservative and family-oriented.
page 4 of 11
Property PhotosRoyal Apartments
2051-59 Bacon StSan Diego, CA 92107
Curtis Gabhart, Principal619-725-3632
Property Photos
page 5 of 11
Maps and AerialsRoyal Apartments
2051-59 Bacon StSan Diego, CA 92107
Curtis Gabhart, Principal619-725-3632
Maps and Aerials
page 6 of 11
Executive SummaryRoyal Apartments
2051-59 Bacon StSan Diego, CA 92107
Curtis Gabhart, Principal619-725-3632
ACQUISITION COSTS
Purchase Price, Points and Closing Costs $3,600,000
Investment - Cash $725,000
First Loan $2,875,000
INVESTMENT INFORMATION
Purchase Price $3,600,000
Price per Unit $163,636
Price per Sq. Ft. $514.29
Income per Unit $12,518
Expenses per Unit ($4,682)
INCOME, EXPENSES & CASH FLOW
Gross Scheduled Income $275,400
Total Vacancy and Credits ($13,530)
Operating Expenses ($103,005)
Net Operating Income $158,865
Debt Service ($143,750)
Cash Flow Before Taxes $15,115
Total Interest (Debt Service) ($143,750)
Depreciation and Amortization ($100,339)
Taxable Income (Loss) ($85,224)
Tax Savings (Costs) $38,351
Cash Flow After Taxes $53,466
FINANCIAL INDICATORS
Cash on Cash Return Before Taxes 2.08%
Optimal Internal Rate of Return (yr 10) 13.38%
Debt Coverage Ratio 1.11
Capitalization Rate 4.41%
Gross Rent Multiplier 13.07
Gross Income / Square Feet $39.34
Gross Expenses / Square Feet ($14.72)
Operating Expense Ratio 39.33%
page 7 of 11
Pro Forma SummaryRoyal Apartments
2051-59 Bacon StSan Diego, CA 92107
Curtis Gabhart, Principal619-725-3632
UNIT MIX & ANNUAL SCHEDULED INCOME
Type Units Actual Total Market Total
Studio 22 $12,300 $270,600 $12,300 $270,600
TOTALS 22 $270,600 $270,600
ANNUALIZED INCOME
Actual MarketGross Potential Rent $270,600 $270,600
Less: Vacancy ($13,530) ($13,530)
Misc. Income $4,800 $4,800
Effective Gross Income $261,870 $261,870
Less: Expenses ($103,005) ($102,765)
Net Operating Income $158,865 $159,105
Debt Service ($143,750) ($143,750)
Net Cash Flow after Debt Service $15,115 $15,355
Principal Reduction $0 $0
Total Return $15,115 $15,355
ANNUALIZED EXPENSES
Description Actual MarketProperty Management Fee $13,770 $13,530
Misc $48,555 $48,555
Taxes - Real Estate $40,680 $40,680
Total Expenses $103,005 $102,765
Expenses Per RSF $14.72 $14.68
Expenses Per Unit $4,682 $4,671
INVESTMENT SUMMARY
Price: $3,600,000
Units: 22
Price/Unit: $163,636
RSF: 7,000
Price/RSF: $514.29
Cap Rate: 4.41%
Pro Forma Cap Rate: 4.42%
GRM: 13.1
Pro Forma GRM: 13.1
FINANCING SUMMARY
Loan Amount: $2,875,000
Down Payment: $725,000
Loan Type: Interest Only
Interest Rate: 5.00000%
Term: 10 years
Monthly Payment: $11,979.17
page 8 of 11
Resale ReportRoyal Apartments
2051-59 Bacon StSan Diego, CA 92107
Curtis Gabhart, Principal619-725-3632
NET PROCEEEDS FROM SALE
Adjusted Basis
Basis At Acquisition $3,600,000
-Depreciation $1,038,413
Adjusted Basis at Sale $2,561,587
Capital Gain
Sale Price $4,838,099
-Sale Expenses $241,905
-Adjusted Basis at Sale $2,561,587
Gain or (Loss) $2,034,607
-Depreciation (limited to gain) $1,038,413
Capital Gain from Appreciation $996,194
Sales Proceeds After Tax
Sales Price $4,838,099
-Sale Expenses $241,905
-Balloon Payment $2,875,000
Sale Proceeds Before Tax $1,721,194
Sale Proceeds Before Tax $1,721,194
-Tax On Depreciation $259,603
-Tax On Capital Gain $149,429
Sale Proceeds After Tax $1,312,162
page 9 of 11
Internal Rate of Return AnalysisRoyal Apartments
2051-59 Bacon StSan Diego, CA 92107
Curtis Gabhart, Principal619-725-3632
BEFORE TAX IRR
Time Future Cash Flows
Initial Investment ($725,000)
End of Year 1 $15,115
End of Year 2 $20,288
End of Year 3 $25,624
End of Year 4 $31,128
End of Year 5 $36,806
End of Year 6 $42,663
End of Year 7 $48,705
End of Year 8 $54,937
End of Year 9 $61,365
End of Year 10* $1,789,189
IRR = 12.47% * ($67,995 + $1,721,194)
AFTER TAX IRR
Time Future Cash Flows
Initial Investment ($725,000)
End of Year 1 $53,466
End of Year 2 $58,281
End of Year 3 $61,216
End of Year 4 $64,243
End of Year 5 $67,366
End of Year 6 $70,587
End of Year 7 $73,910
End of Year 8 $77,338
End of Year 9 $80,873
End of Year 10* $1,394,711
IRR = 13.38% * ($82,550 + $1,312,162)
page 10 of 11
Cumulative AnalysisRoyal Apartments
2051-59 Bacon StSan Diego, CA 92107
Curtis Gabhart, Principal619-725-3632
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Equity (appreciation) $108,000 $219,240 $333,817 $451,832 $573,387 $698,588 $827,546 $960,372 $1,097,183 $1,238,099
Equity (loan reduction) $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,875,000
CASH FLOW (a/t) $53,466 $111,747 $172,962 $237,205 $304,572 $375,159 $449,069 $526,407 $607,280 $689,830
Totals - To Date $161,466 $330,987 $506,780 $689,037 $877,958 $1,073,747 $1,276,615 $1,486,779 $1,704,463 $4,802,929
Invested Capital ($725,000) ($725,000) ($725,000) ($725,000) ($725,000) ($725,000) ($725,000) ($725,000) ($725,000) ($725,000)
ROIC - To Date 22.27% 45.65% 69.90% 95.04% 121.10% 148.10% 176.08% 205.07% 235.10% 662.47%
Footnotes: a/t = after taxes; ROIC = Return On Invested Capital
page 11 of 11
FlyerRoyal Apartments2051-59 Bacon StSan Diego, CA 92107
2051-59 Bacon St, San Diego, CA 92107
Investment Highlights
SELLER FINANCING 20% Down at 5%Interest Only!
■
Beautiful Courtyard■
Laundry Facilities■
22 Studio Units■
Plenty of Parking Spaces■
3 Buildings on 3 Parcels of Land■
Storage■
Curtis Gabhart, Principal
DRE# 01316761Senior VP & Principal619-725-3632(619) 299-8536 (fax)curtisgabhart@aciapartments.com
Keith Courtney
DRE # 01028193Senior VP & Principal619-725-3635(619) 299-8536 (fax)
Price $3,600,000
Units 22
Price per Unit $163,636
Year Built 1963
Lot Size 10,048
Current Cap Rate 4.56%
Market Cap Rate 4.56%
Current GRM 13.1
Market GRM 13.1
Current Total Return 2.8%
Market Total Return 2.8%
2051-59 Bacon St, San Diego, CA 92107
Curtis Gabhart, Principal
DRE# 01316761Senior VP & Principal619-725-3632(619) 299-8536 (fax)curtisgabhart@aciapartments.com
Keith Courtney
DRE # 01028193Senior VP & Principal619-725-3635(619) 299-8536 (fax)
UNIT MIX AND RENT SCHEDULE
Mix No. Units Current Rents Current Total Market Rents Market TotalStudio 22 $1,025 $22,550 $1,025 $22,55022 $22,550 $22,550
INCOME, EXPENSE AND CASHFLOW
Current Market Gross Potential Rent $270,600 $270,600 Less: Vacancy $8,118 $8,118 Plus: Misc. Income $4,800 $4,800 Effective Gross Income $267,282 $267,282 Less: Expenses $103,005 $103,005
Net Operating Income $164,277 $164,277 Debt Service ($143,750) ($143,750)
NCF After Debt Service $20,527 $20,527 Principal Reduction $0 $0 Total Return $20,527 $20,527
FINANCIAL SUMMARYDown Payment: $725,000Loan Amount: $2,875,000Loan to Value: 80%Interest Rate: 5.0Amortization: 10 YearsDebt Coverage Ratio: 1.143
EXPENSESProperty Management Fee $13,770Misc $48,555Taxes - Real Estate $40,680
Total Expenses $103,005Expenses Per RSF $14.72Expenses Per Unit $4,682
INVESTMENT OVERVIEWSELLER FINANCING 80% LTV AT 5% Interest Only fixed for 10 years. Three buildings on three parcels beautiful multi-family apartment. A total of 16 parking spots, laundry on-site, bike storage, beautiful courtyard! **The informationcontained is from sources believed to be accurate, ACI makes no warranty(ies), expressed or implied, regarding same.