FOURPLEX - LoopNet · 2019. 9. 6. · Laguna Potrero Boulevard Jacumba Julian San Diego Country...

ROBERT VALLERA CCIMSenior Vice President/PartnerLic. #00818308 | 858.458.3337 | [email protected]

PRIDE OF OWNERSHIP FOURPLEX IN HIGHLY DESIRABLE NORTH PACIFIC BEACH

FOURPLEXBaja La Jolla5228 Cass Street, San Diego, CA 92109

2 | Offering Memorandum

DISCLAIMER

This Offering Memorandum (this “Memorandum”) is given to you for the sole purpose of evaluating the possible acquisition of 5228 Cass Street, San Diego, CA 92109 (the “Property”), and is not to be used for any other purpose without the prior written consent of Owner or Voit Real Estate Services (“Broker”).

This Memorandum was prepared by the Broker based on information supplied by the Owner and the Broker. It contains selected information about the Property and the real estate market but does not contain all the information necessary to evaluate the acquisition of the Property. The financial projections contained herein (or in any other Evaluation Material, including any online drop boxes) are for general reference only. They are based on assumptions relating to the general economy and local competition, and other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents.

While the information contained in this Memorandum and any other Evaluation Material is believed to be reliable, neither Broker nor Owner guarantees its accuracy or completeness. Because of the foregoing, a prospective purchaser must make its own independent investigations, projections and conclusions regarding the acquisition of the Property without reliance on this Memorandum or any other Evaluation Material. Although additional Evaluation Material, which may include engineering, environmental or other reports, may be provided to qualified parties as marketing proceeds, prospective purchasers should seek advice from their own attorneys, accountants, and engineering and environmental experts.

Owner expressly reserves the right, at its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time with or without written notice. Owner shall have no legal commitment or obligations to any prospective purchaser unless and until a written sale agreement has been fully executed, delivered and approved by Owner and any conditions to Owner’s obligations therein have been satisfied or waived.

Owner has retained Broker, Voit Real Estate Services, as its exclusive broker. Purchaser will be responsible for any and all commissions, fees and other compensation to be paid to Purchasers Broker. Broker is not authorized to make any representation or agreement on behalf of Owner.

This Memorandum is the property of Owner and Broker and may be used only by parties approved by Owner and Broker.

ROBERT VALLERA CCIMSenior Vice President/PartnerLic. #00818308 | [email protected]

AGATE STREET

Offering Memorandum | 3

TABLE OF CONTENTS

THE OFFERING

EXECUTIVE SUMMARYProperty Description

PROPERTY DETAILSDesign and AmenitiesOperating Pro-Forma

SITE DETAILSParcel MapNeighborhood AmenitiesRegional Map

SALE COMPARABLES

MARKET OVERVIEWAbout Pacific BeachMid-Coast TransitDemographics

TURQUOISE STREET

CASS STREET


VALLERA APARTMENT ADVISORS is pleased

to present this opportunity to acquire a pride of

ownership fourplex located on the far northern end of

Pacific Beach, just two blocks south of La Jolla.

Constructed in 1986, the building features all two-

bedroom, two bath units with in-unit laundry hookups,

fireplaces and their own private garages. The two

second-story units offer spacious ocean and sunset

view decks.

The location enjoys a WalkScore of 81, with a

supermarket, an abundance of dining venues

and Tourmaline Beach within walking distance. In

addition, the apartments are located within the La

Jolla public school boundaries.

The property has been held by the same owner for

over twenty years. It is now being offered to the

market as their estate is being settled.

THE OFFERING


LOCATION: 5228 Cass Street, San Diego, CA 92109

ASSESSOR PARCEL: 415-172-12-00

UNIT MIX: Four 2 Bedroom: 2 Bath Units

BUILDING SIZE: ±4,110 SF (As Per Public Record)

LOT SIZE: ±5,892 Square Feet (±0.14 Acres)

PRICE: $2,650,000

PRICE/SF: $645 Per Square Foot

YEAR BUILT: 1986

CONFIGURATION: A Single Two-story Fourplex Building

PARKING: Four Single-car Garages and 1 Open Space

CONSTRUCTION: Wood Frame with Stucco and Wood Siding, on Slab with Pitched Comp Shingle Roof

WALK SCORE: 81

SCHOOL BOUNDARIES: Bird Rock Elementary, Muirlands Middle, La Jolla High

EXECUTIVE SUMMARY


All units are 2 bedroom/2 bath

High, open beam ceilings in upstairs units

In-unit washer/dryer hookups

Air conditioning and forced air heating

Walk in closets

Built in microwave ovens

Trash compactors

Ceiling fans

Dishwasher

Wood burning fireplace

Second floor units have decks off of living room with beautiful ocean, Mission Bay and sunset views

Private entry to all units

Single car garages with an additional on-premise reserved parking spot

Located in a quiet residential neighborhood north of Turquoise Street and two blocks south of La Jolla

DESIGN & AMENITIES

INTERIOR FEATURES

EXTERIOR FEATURES


RENT ROLL

CURRENT PROJECTED

UNIT 1 $2,425 $2,750

UNIT 2 $2,275 $2,750

UNIT 3 $2,700 $2,995

UNIT 4 $2,950 $2,995

MONTHLY $10,350 $11,490

ANNUAL $124,200 $137,880


OPERATING EXPENSESCurrentMonthly

CurrentAnnual

ProjectedMonthly

ProjectedAnnual Expense Notes

Gross Scheduled Income $10,350 $124,200 $11,490 $137,880

Vacancy and Collection Loss (4%) ($414) ($4,968) ($460) ($5,515) Assumes 2 turnovers per year

Gross Operating Income $9,936 $119,232 100.0% $11,030 $132,365 100.0%

Operating Expenses - General Expenses: Property Tax (1.1%) $2,429 $29,148 24.4% $2,429 $29,148 22.0% Based on full price Property Insurance $191 $2,292 1.9% $153 $1,836 1.4% Current charges Property Management $596 $7,154 6.0% $662 $7,942 6.0% No on-site management Utility Expenses: Gas and Electric $20 $240 0.2% $20 $240 0.2% Current charges Water & Sewer $300 $3,600 3.0% $300 $3,600 2.7% Current charges Trash Pickup $0 $0 0.0% $0 $0 0.0% City trash collection Maintenance Expenses: Supplies $298 $3,577 3.0% $331 $3,971 3.0% Projection Repairs $397 $4,769 4.0% $441 $5,295 4.0% Projection Gardening & Grounds $90 $1,080 0.9% $90 $1,080 0.8% Current charges

Total Operating Expenses ($4,322) ($51,860) -43.5% ($4,426) ($53,111) -40.1%

Net Operating Income $5,614 $67,372 56.5% $6,604 $79,253 59.9% Mortgage ($1.06M, 4.25%, 30 yr.) ($5,215) ($62,580) ($5,215) ($62,580)

Spendable Income $399 $4,792 $1,389 $16,673

Loan Amortization $1,486 $17,832 $1,486 $17,832

Total Gain before Appreciation $1,885 $22,624 $2,875 $34,505


415-172-12-00PARCEL MAP


NEIGHBORHOOD AMENITIES

This property is within the boundaries of La Jolla schools including:

» Bird Rock Elementary

» Muirlands Middle School

» La Jolla High School

» Cafe Europa, Turquoise Street

» Brick & Bell, Cass Street

» Gelson’s Market, Turquoise Street

» Cass Street Bar and Grill, Cass Street

» The Fishery, Cass Street

» Latitude 32, Cass Street

» French Gourmet, Turquoise Street

LA JOLLA SCHOOLS

CAFES

SUPERMARKET

RESTAURANTS/BARS

5228 CASSSTREET


Neighborhood Amenities

TURQUOISE STREET

CASS STREET

CASS STREET

MISSION BOULEVARD

5228 CASSSTREET


Neighborhood Amenities

TURQUOISE STREET

AGATE STREET

CASS STREET

BIRD ROCK PARK &

ELEMENTARY SCHOOL

Offering Memorandum | 23U N I T E D S T A T E S O F A M E R I C A

M E X I C O

U N I T E D S T A T E S O F A M E R I C A

M E X I C O

Del Mar

805

15

163

52

8

94

125

5

15

78

805

5

56

76

76

76

8

125

125

54

5

LemonGrove

La Mesa

El Cajon

BostoniaGranite

Hills Crest

HarbisonCanyon

North IslandNaval Air Station

SpringValley

RanchoSan Diego

Casa de Oro/ Mt Helix

WinterGardens

EucalyptusHills

Santee

Miramar

Mira Mesa

TorreyPines Miramar

Marine CorpsAir Station

Jamul

DescansoAlpine

SolanaBeach

RanchoSanta Fe

Encinitas

Poway

Ramona

Vista

San MarcosEscondido

Carlsbad

Oceanside

CampPendleton

Bonsall

Rainbow

Fallbrook

ImperialBeach

ScrippsRanch

KearnyMesa

SorrentoMesa

SorrentoValley

BorregoSprings

MountLaguna

Potrero

Boulevard

Jacumba

Julian

San DiegoCountryEstates

Campo

LaPresa

Eastlake

Bonita

OceanBeach

CentralSan Diego

PtLoma

Chula Vista

San YsidroOtay Mesa

PineValley

San DiegoInternational

Airport

5228 Cass Street, San Diego, CA 92109


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SITE

SALE COMPARABLES


# Street Address # of Units

Sale Price

Sale Date

$/SF Buildings

Adjusted $/SF*

$/Unit Adjusted $/Unit*

Year(s) Built

Configuration Unit Mix

1 1676 Thomas Street San Diego, CA 92109

4 $2,255,000 10/31/2017 $413 $442 $563,750 $603,213 1992 Fourplex All 2 Bd:2.5 Ba

Notes: In-unit laundry, fireplaces. Parking: 4 - Double Garages; Plus 200 sf storage.

2 1760-62 Oliver Avenue San Diego, CA 92109

4 $2,215,000 10/16/2017 $623 $667 $553,750 $592,513 House: 1950's Triplex: 1990

House & Triplex

House - 2 Bd:1 Ba Triplex - 2 Bd:2 Ba

Notes: All units have yard or decks. Parking: 4 - One Car Garages; 5 - Open Spaces.

3 1252-56 Thomas Avenue San Diego, CA 92109

3 $1,861,000 8/14/2018 $510 $523 $620,333 $635,842 1984 Triplex 1 - 2 Br:2 Ba 2 - 3 Br: 2Ba

Notes: In-unit laundry, private patios. Parking: 5 - Open Spaces.

4 1544 Chalcedony Street San Diego, CA 92109

4 $1,800,000 4/10/2019 $570 $570 $450,000 $450,000 1947 House & Triplex

House - 3 Bd:2 Ba 1 - 2 Bd:1 Ba 2- 1 Br: 1 Ba

Notes: Major remodel prior to sale. Parking: 2 - One Car Garages; 5 - Open Spaces.

5 1226 Oliver Avenue San Diego, CA 92109

3 $1,700,000 1/19/2018 $490 $517 $566,667 $597,833 1968 House & Duplex

House - 3 Bd:2 Ba 1 - 2 Bd:1 Ba 1- 1 Br: 1 Ba

Notes: High-end remodeled house is 1,528 sf. Parking: 3 - One Car Garages; 3 - Open Spaces.

Averages $521 $544 $550,900 $575,880

* 5228 Cass Street San Diego, CA 92109

4 $2,600,000 N/A $645 N/A $650,000 N/A 1986 Fourplex All 2 Bd:2 Ba

Notes: In-unit laundry, fireplaces, views. 4 - One Car Garages.

Time Adjustment: Dated sales comps were adjusted by an appreciation factor of one-half percent per month through December, 2018. No adjustment was applied to the 2019 closing.

SALE COMPARABLES

5228 CASSSTREET

The Offering


THIS ISPacific Beach

LIVE • WORK • PLAY • EAT • SHOP

Pacific Beach is a relaxed neighborhood by the beach, popular with sunbathers and surfers. Trendy hotel bars and casual cafe’s line the boardwalk, while Mission

Boulevard and the surrounding streets are dotted with clothing boutiques, yoga studios and casual drinking spots that typically draw a young, bar-hopping crowd.

While formerly largely populated by young people, surfers, and college students, more recently, because of rising property and rental costs the population is gradually

becoming older and more affluent. “P.B.,” as it is known as by local residents, is home to one of San Diego’s more developed nightlife scenes, with a great variety of

bars, eateries, shops, hotels and entertainment, located along Garnet Avenue and Mission Boulevard.

Pacific Beach is bounded by La Jolla to the north, Mission Beach and Mission Bay to the south, Interstate 5 to the east and the Pacific Ocean to the west. Pacific

Beach’s namesake stretches for miles from the Mission Bay jetty to the cliffs of La Jolla. The boardwalk, or Ocean Front Walk/Ocean Boulevard, is a pedestrian

walkway that runs approximately 3.2 miles along the beach from the end of Law Street in the north down into Mission Beach, ending at the mouth of Mission Bay in

the south.


The boardwalk is generally crowded with pedestrians, cyclists, roller-bladers, and shoppers.

Adjacent to the boardwalk is the Crystal Pier, a public pier and hotel at the west end of Garnet

Avenue.

In addition to bordering the Pacific Ocean and Mission Bay Park, inland of Pacific Beach is the

grassy slope of Kate Sessions Park, which has sweeping views of the city and San Diego Bay.

Fanuel Street Park is a popular bay-front park with playground equipment suitable for toddler

and school-age children. Rose Creek, which flows through Pacific Beach before emptying into

Mission Bay, provides open space and a rich wetland area.

1/2 MILE TO BEACH

81 WALK SCORE

57 BIKE SCORE

1/4 MILE SUPERMARKET


BALBOA AVENUE STATION

7

TECOLOTE ROAD STATION

5

PROPOSED BALBOA STATION

PROPOSED CLAIREMONT STATION

MID-COAST TRANSIT PROJECT

BALBOA

CLAIREMONT


MID-COAST TRANSIT PROJECT, OPENING IN 2021

THE PROJECTThe Mid-Coast Corridor Transit Project will extend the Trolley Blue Line service from the Santa Fe Depot in Downtown San Diego north to the University City community, serving major activity centers such as Old Town, the University of California, San Diego (UCSD), and Westfield UTC.

The proposed project would be funded in partnership by SANDAG and the Federal Transit Administration (FTA).

The Trolley extension route – known as the Locally Preferred Alternative (LPA) – was approved by the SANDAG Board in July 2010. It begins just north of the Old Town Transit Center and travels in existing railroad right-of-way and alongside Interstate 5 to serve UCSD and University City. The extension will serve nine new stations: Tecolote Road, Clairemont Drive, Balboa Avenue, Nobel Drive, VA Medical Center, Pepper Canyon (serving UCSD west campus), Voigt Drive (serving UCSD east campus), Executive Drive, and the terminus station at the Westfield UTC transit center.

THE NEEDFreeways and arterials in the Mid-Coast corridor are generally congested, and traffic congestion is projected to increase as the region grows. By 2030, population in the corridor is forecast to increase 19 percent and employment is expected to increase by 12 percent. The University City area has developed as a major employment and high-density residential area, similar to Downtown San Diego. University City is San Diego’s second downtown, and UCSD is one of the region’s largest trip generators; however, neither is served directly by regional transit services.

The Mid-Coast Trolley extension will provide an effective alternative to congested freeways and roadways for travelers, improve public transit services, and enhance travel options by connecting the corridor with areas served by the existing Trolley system.

PROJECT COSTSThe current project budget is $1.7 billion, exclusive of financing costs. The project budget will be updated for inclusion in the project’s environmental document, called the Supplemental Environmental Impact Statement/Subsequent Environmental Impact Report (SEIS/SEIR). It will be updated again during preliminary engineering, prior to entering final design in the FTA New Starts program.

FUNDING STATUSThe Mid-Coast Trolley extension has been identified as a high-priority project by SANDAG and is part of the TransNet Early Action Program. TransNet will provide a 50 percent local match to federal funding, which SANDAG is seeking through the New Starts program. TransNet also will provide operating funds for the Mid-Coast Trolley extension through the year 2048.

SUMMARYThe Mid-Coast Corridor Transit Project is the agency’s highest-priority transit project. It will improve access to growing employment, education, and residential areas. A Trolley extension is particularly well-suited to the corridor because:

It connects with the existing regional rail system at the Old Town Transit Center and Downtown San Diego at Santa Fe Depot, providing a vast improvement to mobility within the region.

As an extension of the existing Trolley Blue Line, it will offer a one-seat (no transfer) ride from the international border and communities south of Downtown San Diego all the way to University City.

It will connect residents of the corridor with major activity centers such as UCSD, UTC, Old Town, and Downtown San Diego.


PACIFIC BEACH RANKED #20 ON THE “TOP 25 BEACHES IN THE

UNITED STATES” BY TRIPADVISOR

Pacific Beach’s namesake gives

residents miles of coastline to take in

and enjoy, stretching all the way from

the Mission Bay jetty to the world-

famous cliffs of La Jolla. The area is

also known for its historic architecture

that takes residents back to the

founding of San Diego. With a single

trip down the boardwalk, it becomes

apparent that Pacific Beach holds

enough local restaurants, shops, and

scenery to make it a special place.

Many residents enjoy regular trips

to the famous Crystal Pier to fall in

love with the charm of Pacific Beach

again and again.


IMPRESSIVE DEMOGRAPHICSThe north end of Pacific Beach attracts residents who seek to live in a

coastal community with an abundance of outdoor recreation, restaurants,

bars, nightlife, cultural attractions and retail shopping.

1 MILE RADIUS

19,842

Densely Populated LocationThe five-year projection for the population in the area is 20,324 representing a change of 0.77% annually from 2019 to 2024.

$112,122

Strong Household IncomeCurrent median household income is $112,122, compared to $60,548 for all U.S. households. It is projected to be $125,076 in five years, compared to $69,180 for all U.S. households.

1,239

Established Retail HubOver 1,000 businesses call Pacific Beach home and the number keeps growing.

9,379

Number of HouseholdsThe five year projection of households is 9,560, a change of 0.38% annually from the current year total.

73%

Highly Educated Workforce73% of the population in the area hold a bachelor or graduate degree.

Source: Esri; U.S. Census Bureau

The community of Pacific Beach is truly one

of the gems of San Diego. For those looking to

take in some of the most scenic beach views

California has to offer with close proximity to

arts and entertainment, Pacific Beach is tough

to beat.

Pacific Beach is surrounded by pristine beaches,

shopping, dining, and abundant entertainment

options. When people from around the world

come to see what San Diego has to offer they

often fall in love with Pacific Beach because of

its world-renowned climate, beach views, and

endless opportunities for adventure.


Approximately 22.8% of the population within a

one mile radius and 13.4% within five miles hold an

annual income of over $200,000.

$1,216,680 $1,032,703

ONE MILE THREE MILE

13.4%5 MILE

22.8%1 MILE

REMARKABLE HOUSEHOLD INCOME

MEDIAN HOME VALUE

Custom Map

Source: ©2019 Esri

August 28, 2019

©2019 Esri Page 1 of 1


Total daytime population

249,230Workers

139,572Residents

109,658

$1,216,680 $1,032,703

ONE MILE THREE MILE

DAYTIME POPULATION

WITHIN 5 MILES

THE UNEMPLOYMENT RATE IS 4.3%

TOURISM INDUSTRYTourism is San Diego’s second largest traded industry (behind Research/Technology/Innovation), employing approximately 194,000 people - 13% of the jobs in the county. Travelers to the county annually spend $11.5 billion at San Diego businesses and generate $940 million in total taxes, of which $306 million are transient occupancy tax revenues that directly support San Diegan’s quality of life - from paying police officers and firefighters to maintaining parks and recreation.

Source: www.sandiego.org/research

4180 La Jolla Village Drive, Suite 100, La Jolla, CA 92037 • 858.453.0505 • 858.408.3976 Fax • Lic #01991785 | www.voitco.com

Licensed as a Real Estate Broker by the DRE. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2019 Voit Real Estate Services, Inc. All Rights Reserved.

ROBERT VALLERA CCIMSenior Vice President/PartnerLic. #00818308 | 858.458.3337 | [email protected]

CASS STREET

AGATE STREET

FOURPLEX - LoopNet · 2019. 9. 6. · Laguna Potrero Boulevard Jacumba Julian San Diego Country...

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