Hilltop Mobile Home Park | Steps from Ocean · 2019. 10. 14. · 3 Hil | E Property Overview 05...

Bid Due Date: Wednesday, September 18, 2019

Ciara Trujillo Senior Vice President Dir +1 858 677 5387 Lic No. 01800279 [email protected]

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North County Coastal Location | West of Highway 101 155 West Jason Street | Encinitas, CA

Hilltop Mobile Home Park | Steps from Ocean 22 Space Value-Add Opportunity


Bid Due Date: October 29, 2019

• Not Subject to Mobile Home Rent Control

• Space rent within Mobile Home Parks are not

subject to new state-wide rent control

2 Hilltop Mobile Home Park | Encinitas

SITE

Hilltop Mobile Home Park is a premiere value-add opportunity located in coveted coastal Leucadia.


Property Overview 05

Financial Overview 09

Market Overview 14

Schools 18

Offering Guidelines 19

Entry on the Property If you and Seller (or Seller’s Broker) agree in writing (by email or oth-erwise) to an appointment for entry on the Property, you may enter the Property only at such appointed time.DO NOT DISTURB TENANTS.

Governmental Contact In no event may you inquire with or otherwise contact any agent or em-ployee of any governmental or quasi-governmental agency regarding the Property or any Owner Party without the prior written consent and participation of Seller.

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Property Overview

PROJECT OVERVIEW Just a short walk to the ocean, the Hilltop Trailer Park is reminiscent of an easier time of surf, sand and sun filled days. Ideally located in the up and coming Leucadia area of Encinitas and west of the Old Coast Highway 101, this neighborhood is the embodiment of the casual and highly desirable beach lifestyle with popular eateries, specialty shops, art galleries, walk/bike friendly streets and nearby transit.

Hilltop is a mobile home trailer park community with 22 spaces, restrooms, shower and laundry facilities, two-car garage, and some storage. This beach property is 1.14 acres on one parcel. Current owner was awarded the SDG&E gas and electric upgrade and the park has been fully upgraded. Each space is 100 amp.

Don’t miss this opportunity to own a unique value add property with a steady income stream in this premiere coastal location.

NUMBER OF SPACES 22

CURRENT AVERAGE RENT $1,006.36 | Significantly Under Market Rents

ANNUAL GROSS INCOME $268,080

ANNUAL NOIExisting | $149,5581st Year Below Market | $322,958Market Rent | $361,478

RENT Encinitas is not subject to rent stabilization. Renters are primarily month-to-month.

APN’S 254-230-33-00 (1.14 acres / 49,462 SF)

UNDERLYING ZONING Residential R11 - 11 Units Per Acre

UTILITIES Gas & Electric Separately Metered | Gas & Electric Systems were Upgraded by SDG&E in 2017

SCHOOL DISTRICT Encinitas Unified School District

PRICE $8,750,000 SUBMIT ALL OFFERS


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Drying YardShowers/Restrooms/

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Laundry Common laundry room

Walking distanceWalking distance to beach (1 block from ocean) |

Walking distance to shops & restaurants


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FINANCIAL OVERVIEW

Existing Rent

1st Year at Below Market Rents Market Rent

GROSS INCOME $268,790 $442,190 $480,710

OPERATING INCOME $119,232 $119,232 $119,232

TOTAL NET INCOME $149,558 $322,958 $361,478

Asking Price: $8,750,000Spaces: 22Price/Unit: $397,727Unit Mix: 22 Mobile HomesPrice Per Acre: $7,608,696Capitalization Rate (Current): 1.71%Capitalzation Rate (1st Year) 3.69%Capitalization Rate (Market): 4.13%GIM (Current): 32.55GIM (Market): 18.20Year Built: 1976Type of Asset: Mobile Home Park APN: 254-230-33Surface Parking Spaces: NALand Area: 1.15Land Area SF: 50,094


Rent Roll

Space Occupancy Occupied Spaces

Current Rent Effective 12/31/19

1st Year at Below Market Rents Market Rate Rent

1 Mobile Home Occupied 1 $1,045 $1,660 $1,800

2 Mobile Home Occupied 1 $980 $1,660 $1,800





















Storage Storage Occupied N/A $100 $120 $200

Garage Garage Occupied N/A $100 $150 $200

Average Space Rent 22 $1,006.36 $1,660.00 $1,800 Monthly Total (GSI) $22,340 $36,790 $40,000

Yearly Total (GSI) $268,080 $441,480 $480,000


Current Rent Roll 1st Year Increase toBelow Market Rents Market Rent

Per Unit / % Per Unit / % Per Unit / %

TOTAL RENTS 268,080 12,185 441,480 20,067 480,000 21,818

Laundry Income 710 32 710 32 710 32

GROSS SCHEDULED INCOME 268,790 12,218 442,190 20,100 480,710 21,850

- Vacancy (None) - - - - - -

Adjusted Gross Income (AGI) 268,790 12,218 442,190 20,100 480,710 21,850

Operating Expenses Pro-Forma Expenses Pro-Forma Expenses Pro-Forma Expenses

Water 2,810 128 2,810 128 2,810 128

SDG&E House Meter 1,073 49 1,073 49 1,073 49

Trash 2,331 106 2,331 106 2,331 106

Property Management 12,000 545 12,000 545 12,000 545

Business License 504 23 504 23 504 23

Janitorial/Maintenance 2,794 127 2,794 127 2,794 127

Landscape 1,500 68 1,500 68 1,500 68

Legal 257 12 257 12 257 12

Insurance 2,026 92 2,026 92 2,026 92

Workman’s Comp 1,346 61 1,346 61 1,346 61

Property Taxes (1.05817%) 92,590 4,209 92,590 4,209 92,590 4,209

Total Expenses 119,232 5,420 119,232 5,420 119,232 5,420 Expenses as % of AGI 44.4% 27.0% 24.8%

Net Operating Income $149,558 $6,798 $322,958 $14,680 $361,478 16,431

Income & Expenses

NOTE: *Electric and gas systems were fully upgraded through SDG&E in 2017. All spaces 100 AMP. **Owner has given Space #3 a $335 per month credit for 1 year for a senior discount. Any remaining credit for the year will be credited to Buyer at the Close of Escrow. ***There have been no actual vacancies since new ownership in 2015.

Income & Expenses


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Encinitas/Carlsbad Coastal Mobile Home Market (All Parks are West of I-5)

Park Name Address Own/Rent Space Rent/Mo.

Parks WEST of Highway 101Hilltop Mobile Home Park 155 W Jason St Encinitas, CA 92024 Rental $962

The Sands 1624 Hwy 101 Encinitas, CA 92024 Rental $1,800

Valley of Dreams 123 Jasper Encinitas, CA 92024 Rental $1,660

Beacons Beach Village 170 Diana St Encinitas, CA 92024 Rental $1,600

Parks EAST of Highway 101Riviera MHP 699 N Vulcan Ave Encinitas, CA 92024 Rental/Lease $1,410-1,900

Trailer Rancho 1549 N Vulcan Ave Encinitas, CA 92024 Rental $900-1,250

Shamrock Trailer Park 152 Hwy 101 N Encinitas, CA 92024 Rental $1,595

Sea Aire Mobile Home Park 523 N Vulcan Ave Encinitas, CA 92024 Rental $600+

Evergreen MHP 170 Diana St Encinitas, CA 92024 Rental $1,800

Lanikai Lane MHP 6550 Ponto Dr Carlsbad, CA 92011 Rental $1,800-2,195

Lakeshore Gardens MHC 7201 Avenida Encinas Carlsbad, CA 92011 Rental $1,850

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Recently named among the 20 best surf towns

in the world by National Geographic, Encinitas

wears its surf history proudly. Located along

six miles of Pacific Ocean coastline, Encinitas is

an unspoiled reminder of the historic Highway

101 beach culture that thrived in the mid-1900s.

Encinitas is home to an array of fun activities

and events including Moonlight State Beach,

Encinitas Street Fair, the Encinitas Fall Festival,

and San Diego Botanic Gardens. Home to a

significant flower-growing industry, the Botanic

Gardens is the only one of its kind in the county

and features over 35 acres of exhibits, including

rare bamboo groves, desert gardens, a tropical

rainforest, California native plants, a subtropical

fruit garden and the West Coast’s first interactive

children’s garden, the Seeds of Wonder.


The California coastal city of Encinitas is located in northern San Diego County, about 26 miles north of San Diego and about 95 miles south of Los Angeles. Interstate I-5 services the city and connects it to all points north and south. Coastal Highway 101, which goes through the city, is an older and more interesting north-south route. Encinitas is situated along six miles of Pacific coastline characterized by cliffs, coastal beaches, flat-topped coastal areas, rolling hills and steep mesa bluffs. It is embraced by two lagoons: the Batiquitos Lagoon to the north and the San Elijo Lagoon to the south.

Founded over 100 years ago, Encinitas originally consisted of five separate communities which were joined together at the time of the city’s incorporation in 1986. Although now one city, Encinitas retains the personalities of these communities, which are now five distinct city districts: “Historic Encinitas” is a small beach side area with a variety of businesses and housing styles; “New Encinitas” is a more recently developed district

City of Encinitas

MEDIAN AGE

42

POPULATION

62,1600.77% GROWTH

MEDIAN HOUSEHOLD INCOME

$100,6985.83% GROWTH

MEDIAN PROPERTY VALUE

$820,4008.6% GROWTH

NUMBER OF EMPLOYEES

31,5901.55% GROWTH

which features upscale homes, a golf course and a shopping center; “Cardiff-by-the-Sea” is an oceanfront community made up of quaint single-family homes dotting the hillsides; “Leucadia” has an older downtown area and is famous for its giant eucalyptus trees; and “Olivenhain” (translated as “olive grove” in German) is a semi-rural region in eastern Encinitas with acres of open horse country and pastures. The largest single industry in Encinitas today is the growing of ornamental flowers, in particular poinsettias.

There is tremendous diversity in the Encinitas real estate market, from funky to estate homes, waterfront gems to upscale tract homes on the golf course. Being coastal, Encinitas is not inexpensive; prices for attached homes (condos, town homes, twin homes) range from $250,000 to $4.5 million, as of June 2008. Detached homes, including ocean front properties, range from $510,000 up to $7.3 million for an ocean front property. Olivenhain, Encinitas Ranch and Leucadia area communities in Encinitas offering vastly different lifestyles, property types, and pricing.


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School Information Encinitas Union School District http://ww2.eusd.net/Pages/Home.aspx and San Dieguito High School District http://www.sduhsd.net/

The Encinitas Union School District is a top ranked elementary school district with an API ranking of 914; The San Dieguito High School District has an overall API of 897

* The State Rank is determined by the school’s API Score in comparison to all other schools in California. (1 is the worst, 10 is the best). An equal number of schools occupy each rank. * The API Score is a number between 200 and 1000 that reflects a school’s or school district’s performance on statewide student assessments.

Elementary Olivenhain Pioneer Elementary

Middle School Diegueno Middle School

High School San Dieguito Academy & La Costa Canyon

API: 938 State Rank: 10 API: 927 State Rank: 10 API: 851 State Rank: 9 API: 834 State Rank: 9 Our mission is to provide a positive, nurturing, and collaborative educational environment where we ensure the intellectual, social and physical development of every student. We offer students educational, technological, and interactive experiences to make them:

o LIFE-LONG LEARNERS o RESPONSIBLE CITIZENS/LEADERS o COLLABORATIVE INDIVIDUALS o CRITICAL THINKERS/PROBLEM SOLVERS o EFFECTIVE COMMUNICATORS

To ensure that all students reach their potential as ethical, involved citizens and life-long learners guided by a professional, compassionate staff who provide a challenging, creative, and meaningful education.

o All students are unique and, given equal opportunity, can ultimately achieve their potential as learners and ethical adults.

o All members of the Diegueño community are essential and should be treated with mutual respect and compassion in order to provide a successful learning environment.

o Meaningful education provides the information, social and academic skills, and resources for successful life-long learning.

o A professional staff maintains open communication, free exchange of ideas, and a willingness to meet challenges and work toward positive solutions.

Students would attend San Dieguito Academy or La Costa Canyon. The schools create a learning community which nurtures the individual, promotes academic rigor, provides varied opportunities for success, and celebrates creative expression, we cultivate compassion, optimism, and love for learning, while building on core values, so all students may lead rewarding lives and contribute to their communities.

School District


Offering Guidelines

DEPOSIT: An initial deposit of $100,000 shall be placed into escrow at the execution of the purchase and sale agreement and shall be refundable during the Due Diligence Period. Upon Buyer’s election to proceed with acquisition of the Property at the close of the Due Diligence Period, the deposit shall be increased to $500,000 and the entire deposit shall be non-refundable except in the case of a default or breach by Seller prior to closing. The balance of the purchase price shall be paid at Closing.

OFFER DUE DATE: All offers shall be submitted by Tuesday, October 29, 2019 to:

Ciara Trujillo c/o Colliers International 4350 La Jolla Village Drive, Suite 500 San Diego, CA 92122 Email: [email protected]

DUE DILIGENCE:Buyer shall have twenty-one (21) days from the Effective Date of the Purchase & Sale Agreement to perform whatever studies it may desire on the Property. Seller will deliver to Buyer all studies, plans, and reports in its possession.

CLOSING:Buyer shall close fifteen (15) days after the approval of the Due Diligence Period.

DISCLAIMER:This document has been prepared by Colliers International for advertising and general information only. Neither Colliers International nor the Seller makes any guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising therefrom. Colliers International is a worldwide affiliation of independently owned and operated companies.

BROKERAGE: A commission to Colliers International will be paid by Owner pursuant to a separate listing agreement. Any other commissions must be paid by the prospective purchaser. All communications and inquiries regarding the Property should be directed to Ciara Trujillo.



No Governmental Contact. In no event may you inquire with or otherwise contact any agent or employee of any governmental or quasi-governmental agency regarding the Property or any Owner Party without the prior written consent and participation of Seller.

Confidentiality. You may not disclose to any person or entity (or to any person within your company not having a need to know for the purposes of consummating a transaction with Owner Parties), other than your attorneys with a need to know, any information or material submitted or disclosed by Owner Parties relative to the Property or to an Owner Party or learned by you regarding any of the foregoing after the date of this Agreement or the fact that you are in anyway investigating the Property or considering acquiring any interest in the Property; however, portions of such information will not be deemed Confidential Information to the extent that such portions were already known to you as of the date of this Offering Memorandum or generally known to the public without the need for significant research. You shall take all appropriate and necessary actions to provide for the safe-keeping of the Confidential Information and shall prevent disclosure of the Confidential Information, in whole or in part, to any third party without Seller’s prior written consent. You may not otherwise permit Confidential Information to be available, stored electronically or otherwise, published, distributed, transmitted or delivered in any form whatsoever, including electronically. Further, before conveying any Confidential Information to another person in accordance with this paragraph, you first must obtain from the Recipient and provide Seller, a written agreement in favor of Owner Parties substantially in the form of this Agreement.

Entry on the Property. If you and Seller agree in writing (by email or otherwise) to an appointment for entry on the Property, you may enter the Property only at such appointed time. You shall defend, indemnify and hold harmless each of the Owner Parties and the Property from all claims, costs, liens, actions and judgments, including the Owner Parties’ attorneys’ fees and defense costs caused by you or any of your employees, agents or independent contractors or resulting from your or any of their entry on or investigation of the Property and you shall immediately repair any damage to the Property caused by you or any of them.

“AS IS, WHERE IS”. The Property is being sold in its “AS IS, WHERE IS” condition, without any representations, warranties, or promises of any kind by Seller, whether oral or written, expressed or implied. Seller’s consideration of any offer on the subject property is expressly contingent on Buyer accepting this condition of the sale of the property by Seller.

Buyer will be afforded the opportunity to make any and all inspections of the subject Property and such related matters as buyer may reasonably desire and Buyer acknowledges that buyer will be purchasing the Property in reliance on such inspections and not in reliance on any representations or warranties by Seller. Buyer also acknowledges that (i) all documents, reports, studies, and other information that may be delivered or disclosed to Buyer by Seller (collectively, “Evaluation Material”) will be provided to Buyer for informational purposes only and only as an accommodation to Buyer, (ii) unless expressly stated otherwise, all of the Evaluation material will relate to the period from and after Seller’s acquisition of title to the Property and Seller will not be providing to Buyer any documents, reports, studies, or other information regarding any aspect of Seller’s relationship with Seller’s predecessor (s) in title, and (iii) Seller will not make any representation, warranty, promise of any kind, whether oral or written, expressed or implied, concerning the accuracy or completeness of all or any part of the Evaluation Material.

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Hilltop Mobile Home ParkEncinitas, California


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Hilltop Mobile Home Park | Steps from Ocean · 2019. 10. 14. · 3 Hil | E Property Overview 05...

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