Mission Hills Apartments - LoopNet · of San Diego’s Uptown community of Mission Hills. The...

3812 KEATING STREET

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

381 2 Keat i ng St reet , San Diego, CA 92110 • $3,70 5,0 0 0

Mission Hills Apartments• “Very Walkable” to Restaurants & Transit• Over-Sized 20,000+ SF Lot• San Diego Harbor Views• 13-Unit Building

2 | Offering Memorandum

DISCLAIMER

This Offering Memorandum (this “Memorandum”) is given to you for the sole purpose of evaluating the possible acquisition of 3812 Keating Street, San Diego, CA 92110 (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]

3812 KEATING STREET

Offering Memorandum | 3

TABLE OF CONTENTS

THE OFFERING

EXECUTIVE SUMMARY

PROPERTY DETAILSDesign and AmenitiesRent RollOperating Pro-Forma

SITE DETAILSParcel MapNeighborhood AmenitiesRegional Map

SALE COMPARABLES

MARKET OVERVIEWAbout Mission HillsMid-Coast TransitDemographics


VALLERA APARTMENT ADVISORS is pleased to present this rare

opportunity to acquire an apartment community on the west side

of San Diego’s Uptown community of Mission Hills. The apartments

feature a mix of one and two-bedroom units on an over-sized 20,000+

square-foot lot with an abundance of parking, and a spacious pool deck

and barbecue area with views across San Diego Harbor.

The location is deemed by WalkScore.com as “Very Walkable.” The

apartments are within ½ mile of both the Washington Street light rail

station and the Lower Mission Hills Restaurant Row.

The property is in good condition with interiors that are well-maintained,

including refinished hardwood floors and newer appliances. The

building has not yet experienced the extensive upgrading typical

of other apartments in San Diego’s desirable urban neighborhoods

including Mission Hills. This attractive Mission Hills location provides

ample opportunity for a buyer with foresight and energy to upgrade the

building and resulting income stream while retaining the best of the

properties existing features.

The LLC owning the apartments is almost two-decades old. Its manager

is interested in concluding the venture and disbursing the capital to the

investors.

THE OFFERING

3812 KEATING STREET



LOCATION: 3810-3812 Keating Street, San Diego, CA 92110

ASSESSOR PARCEL: 451-013-11-00

UNIT MIX: Nine 1 Bedroom: 1 Bath Units and Four 2 Bedroom: 1 Bath Units

BUILDING SIZE: ±7,182 SF (As Per Public Record)

LOT SIZE: ±20,003 Square Feet (±0.46 Acres)

ZONING: RM-2-5, which allows 1 DU/1,500 SF of landTransit Priority Overlay Zone

PRICE: $3,705,000

PRICE/UNIT: $285,000 per unit

PRICE/SF: $515 per square foot

YEAR BUILT: 1960

CONFIGURATION: A single, two-story building

PARKING: 15 on-site spaces and abundant street parking

CONSTRUCTION: Two-story wood frame with stucco and wood siding on a raised foundation with a pitched roof

WALK SCORE: 74 - “Very Walkable”

EXECUTIVE SUMMARY

3812 KEATING STREET

The Offering


THE VIEW TO THE EAST ALONG WASHINGTON STREET

WA

SH

ING

TON

STREET

MISSION HILLS

HILLCREST

SITE


THE VIEW WEST DOWN WASHINGTON STREET

SAN DIEGO HARBOR

SITE

WASHIN

GTON STREET


The spacious pool, deck and barbecue area serve as the defining element for the apartment residents and any of their guests as they enter the property. The pool deck, barbecue area and some of the apartments enjoy San Diego Harbor and sunset views. This is enhanced by the setting above the street level which provides an element of privacy for both the common area amenities and the apartments themselves.

Residents will also appreciate the abundant parking attributable to the over-sized lot and cul-de-sac location which provides additional, readily-available street parking in front of the building. A common laundry room provides on-site laundry for the residents.

The unit interiors have been well maintained but have yet to be highly upgraded. The original hardwood flooring is in good condition and will provide a classic vintage element that can easily be incorporated into any upgrading of the unit interiors.

The exterior features a combination of stucco and wood siding that has been finished in the Japanese Shou Sugi Ban technique, which includes blackening and preserving the wood by exposing it to flames.

DESIGN & AMENITIES

3812 KEATING STREET



RENT ROLL

UNIT BR / BA CURRENT RENT MARKET RENT

A 1/1 $1,525 $1,795

B 1/1 $1,525 $1,795

C 1/1 $1,495 $1,795

D 1/1 $1,495 $1,795

E 1/1 $1,495 $1,795

F 2/1 $1,845 $2,150

G 2/1 $1,750 $2,150

H 1/1 $1,495 $1,795

I 1/1 $1,495 $1,795

J 1/1 $1,550 $1,795

K 1/1 $1,450 $1,795

L 2/1 $1,795 $2,150

M 2/1 $1,850 $2,150

LAUNDRY $128 $128

MONTHLY GSI $20,893 $24,883

ANNUAL GSI $250,716 $298,596


OPERATING PROFORMACURRENT RENTS PROJECTED RENTS

PER UNIT TOTAL PER UNIT TOTAL

Nine - 1 Bedroom Units $1,503 $13,525 $1,795 $16,155 Four - 2 Bedroom Units $1,810 $7,240 $2,150 $8,600 Laundry $128 $128

CurrentMonthly

CurrentAnnual

ProjectedMonthly

ProjectedAnnual Expense Notes

Gross Scheduled Income $20,893 $250,716 $24,883 $298,596

Vacancy and Collection Loss (3%) $(627) $(7,521) $(746) $(8,958)

Gross Operating Income $20,266 $243,195 100.0% $24,137 289,638 100.0%

Operating Expenses - General Expenses: Property Tax (1.15%) $3,977 $47,724 19.6% $3,977 $47,724 16.5% based on listing price Property Insurance $700 $8,400 3.5% $700 $8,400 2.9% current charges Property Management $1,216 $14,592 6.0% $1,448 $17,378 6.0% no on-site manager Utility Expenses: Gas and Electric $185 $2,220 0.9% $185 $2,220 0.8% current charges Water & Sewer $700 $8,400 3.5% $700 $8,400 2.9% current charges Trash Pickup $500 $6,000 2.5% $500 $6,000 2.1% current charges Pool $250 $3,000 1.2% $250 $3,000 1.0% current charges Maintenance Expenses: Supplies $203 $2,432 1.0% $241 $2,896 1.0% estimate based on 2018 Repairs $1,216 $14,592 6.0% $1,448 $17,378 6.0% estimate based on 2018 Gardening & Grounds $165 $1,980 0.8% $165 $1,980 0.7% current charges

Total Operating Expenses $(9,112) $(109,339) 45.0% $(9,615) $(115,377) 39.8%

Net Operating Income $11,155 $133,855 55.0% $14,522 $174,261 60.2% 1st TD Pmts ($2.075M, 3.85%, 30 yr.) $(9,728) $(116,736) $(9,728) $(116,736) 1st TD loan amount set at Spendable Income $1,427 $17,119 $4,794 $57,525 56% LTV based on list price Loan Amortization $3,120 $37,440 $3,120 $37,440 Total Gain Before Appreciation $4,547 $54,559 $7,914 $94,965

Equity Return Before Appreciation 0.3% 3.3% 0.5% 5.8%

This information is from sources that are believed to be reliable but are not guaranteed. Because we cannot predict the future, the actual results of operation WILL NOT conform with this analysis. Buyers are encouraged to thoroughly investigate historical data, market conditions and assumptions, some of which are not explicitly presented herein.


451-013-11-00PARCEL MAP


3812 KEATING STREETSAN DIEGO, CA 92110

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

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


3

5

7

6 1

42

FRIARS ROAD

EL CAJON BOULEVARD

WASHINGTON STREET

UNIVERSITY AVENUE

MISSIO

N AVENUE

PE

RS

HIN

G A

VE

NU

E

PA

RK

BO

UL

EV

AR

D

1ST

AV

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UE

SALE COMPARABLES

SITE


# Street Address # of Units Year(s) Built Unit Mix Sale

DateSale Price G.R.M. $/SF

Buildings $/Unit

1 4204 Campus Avenue San Diego, CA 92103 12 1970 10 - 1 Br, 1 Ba

2 - 2 Br, 1 Ba 9/25/2019 $3,600,000 17.3x $471 $300,000

Notes: In original condition, new owner plans major remodel, parking; 15 open spaces

2 3620-34 Keating Street San Diego, CA 92110 8 1952

5 - studios 2 - 1 Br, 1 Ba 1 - 2 Br, 1 Ba

9/20/2019 $1,550,000 14.5x $500 $193,750

Notes: Marketed as development site, sale equates to $155/sf of land, same zoning as subject property

3 1035-47 Robinson Ave. San Diego, CA 92103 8 1933 6 - 1 Br, 1 Ba

2 - 2 Br, 1 Ba 9/10/2019 $3,050,000 13.7x $656 $381,250

Notes: Spanish style courtyard complex, parking; 8 - 1 car garages

4 1767 Torrance Street San Diego, CA 92103 18 1969

12 - 1 Br, 1 Ba 2 - 2 Br, 1 Ba

2 - 2 Br, 1.5 Ba 2 - 2 Br, 2 Ba

8/30/2019 $5,200,000 uk $465 $288,889

Notes: Buyer plans to renovate, includes pool and common laundry, parking; 8 covered and 9 open spaces

5 3102-3108 1st Avenue San Diego, CA 92103 16 1954

10 - Studios 4 - 1 Br, 1 Ba 1 - 2 Br, 1 Ba 1 - 3Br, 2 Ba

8/28/2019 $4,000,000 13.5x $456 $250,000

Notes: Common laundry room, parking; 1 - 1 car garage, no other off-street parking

6 4178 5th Avenue San Diego, CA 92103 15 1989 14 - 1 Br, 1 Ba

1 - 2 Br, 2 Ba 7/8/2019 $4,500,000 17.7x $411 $300,000

Notes: In original condition, new owner plans major remodel, parking; 19 underground spaces

7 3831-35 3rd Avenue San Diego, CA 92103 12 1928 uk 6/19/2019 $3,550,000 uk $514 $295,833

Notes: Units average 575 sf, bedroom mix and income information not publicly available, parking; 12 open spaces

Averages 15.3x $496 $287,103

* 3810-12 Keating Street San Diego, CA 92110 13 1960 9 - 1 Br, 1 Ba

4 - 2 Br, 1 Ba n/a $3,705,000 14.7x $515 $285,000

Notes: The property has substantial upside potential

SALE COMPARABLES

3812 KEATING STREET

The Offering


THIS ISMission Hills

LIVE • WORK • PLAY • EAT • SHOP

Mission Hills is a neighborhood in San Diego located on the hills overlooking Old Town and the San Diego Bay, just north of Downtown, west of Hillcrest and south of the San Diego River valley. It is one of San Diego’s oldest and most desirable neighborhoods. The area is primarily residential with some small shops and restaurants. It is one of the most architecturally impressive neighborhoods with many of the houses from the early 1900s, which have been carefully preserved and restored. Modern homes were built as infill along canyon rims in the 1950s and 1960s. Mission Hills is highly sought after with its stately homes, quaint Craftsman bungalows and large mansions pristinely manicured on quiet streets. What defines Mission Hills, first and foremost, is the homes. Mission Hills is a far cry from new cookie-cutter subdivisions and the older, but well-appointed homes each have their own unique characteristics and charm.

Mission Hills also has its own business district. Most of the local businesses are located along West Washington Street from Hillcrest and on to the east. The business hub of Mission Hills is along Goldfinch Street between Fort Stockton and West Washington. Restaurants, shops, pubs, and services give residents just about everything they might need. The main business streets are University Avenue and Washington Street. Other major streets are Ft. Stockton Drive and Sunset Boulevard. Cross streets are named for birds, in alphabetical order from Albatross to Lark. Streetcar rail tracks were built along the main thoroughfares of the neighborhood, such as Fort Stockton Drive.


Pioneer Park and Mission Hills Park serve as two recreational parks within the neighborhood. Two of the neighborhood’s many canyons are open to the public for hiking: Robyn’s Egg Trail and the Allen Road Canyon Trail.

In January 2019, the San Diego Public Library opened the new 14,000-square-foot, Craftsman-style Mission Hills-Hillcrest/Harley & Bessie Knox Library at Washington and Front streets in Hillcrest. This replaced the former Mission Hills/Hillcrest Branch at Washington and Hawk Streets.

Mission Hills is located just north of downtown San Diego and is easily accessed from State Route 163, which cuts through the area. From I-8, take SR 163 south and take the West Washington Street exit. Drive through Hillcrest and within a few blocks you will be in Mission Hills.

The primary east-west thoroughfares are Washington Street and University Avenue. Fort Stockton Drive, off of Goldfinch Street takes you through the main residential area of the neighborhood. If you take Fort Stockton all the way west, then take a left on Arista, you pass some of the mansion-like homes as the road descends into Presidio Park.

74 WALK SCORE

1/2 MILE TROLLEY STATION

3 MILES TO AIRPORT

2 HISTORICAL DISTRICTS


Mission Hills, represents the best of two worlds. It’s one of the most prestigious neighborhoods in the city, and it’s a wonderful destination for casual

dining at its best. It’s located on the northern side of the San Diego International Airport, on a hill overlooking the airport. It’s just off the Interstate

5 Freeway at Washington Street, which is one exit south of Historic Old Town. At the foot of the hill along Washington Street is lower Mission Hills

restaurant row. Without a doubt, it’s one of San Diego’s most popular casual dining spots.

Lower Mission Hills restaurant row begins at the corner of Washington and India Streets. Expect to find lots of little cafés and casual restaurants

serving global cuisine. The selection includes Mediterranean, East Indian, Mexican, British, Japanese, Continental, Italian as well as live theater.

THE INTERNATIONAL RESTAURANT ROW


NEIGHBORHOOD AMENITIES

Restaurants and Bars located in International Restaurant Row including:

» Blue Water Seafood Market & Grill

» El Indio

» Fort Oak

» Gelato Vera Café (Named The Best Ice Cream In San Diego)

» Karina’s Ceviche

» Lefty’s Chicago Pizza

» National Comedy Theatre

» Rubicon Deli

» Saffron Thai (Locals Say The Best Chicken In Town)

» Shakespeare’s Pub (Voted San Diego’s Best English Pub Year After Year)

» Wine Vault & Bistro

» Yoshinos Japanese

RESTAURANTS/BARS

3812 KEATING STREET


Neighborhood Amenities

SAN DIEGO TROLLEYThe San Diego Trolley is the light rail

system that serves the metropolitan

area of San Diego. The operator of the

Trolley, San Diego Trolley, Inc. (SDTI), is a

subsidiary of the San Diego Metropolitan

Transit System (MTS). The San Diego

Trolley opened for service on July 26, 1981,

Today it operates three main lines named

the Blue Line, the Orange Line, and the

Green Line, as well as a supplementary

heritage streetcar downtown circulator

known as the Silver Line that operates

mid-days on Tuesdays & Thursdays, and

on weekends and holidays.

The San Diego Trolley system currently has 53 stations serving its four Trolley lines. Fourteen of these stations operate as transfer stations, which allow

passengers to transfer between lines. There are two “universal” transfer points (i.e. allowing transfers among all four lines): the 12th & Imperial Transit Center

station, and the adjacent America Plaza/Santa Fe Depot stations. Six of the Trolley stations are termini—stations at the end of lines. Of the 53 stations, 37 of

them are within the city limits of San Diego, serving various neighborhoods in San Diego; the other 16 stations are located in surrounding communities, such as

El Cajon and National City. Most stations in the San Diego Trolley system are ‘at-grade’ stations. There are 8 aerial stations in the system, mostly on the newer

Green Line. Currently, there is just one station in the Trolley system that is underground (the SDSU Transit Center station), also on the Green Line.


WASHINGTON STREET

MISSION HILLSSERVICED BY THE GREEN LINE TROLLEY AT

Washington Street is a station of the Green Line

trolley. It is located in an industrial corridor along

the edge of San Diego International Airport. The

stop also serves a crowded residential area in the

Mission Hills neighborhood, which includes a variety

of medium-density housing within blocks of the

station. This station opened in June 1996 as part

of the Blue Line (then called the North/South Line)

extension to the Old Town Transit Center.

On September 2, 2012, service to this station was

replaced by the Green Line, when the Blue Line’s

northern terminus was truncated to the America

Plaza station as part of a system redesign. Blue Line

service at this station will resume when the Mid-

Coast Trolley extension is completed by 2021.

At the Washington Street Trolley Station, the Green

Line now runs 4 trains an hour in each direction. The

Green Line runs from Santee, past El Cajon through

Mission Valley to downtown San Diego. By 2021 it

is expected that the Blue Line will be extended to

Washington Street past Old Town north to UCSD

and University Towne Centre. Currently the Blue Line

run up to 8 trains an hour in both directions most

of the day. In the near future that could mean up

to 12 trains an hour stopping at Washington Street

Station with connections to the airport.

WASHINGTON STREET


THE MISSION HILLS NEIGHBORHOOD IS WEALTHIER THAN 96.6% OF THE

NEIGHBORHOODS IN THE US.

Activities and amenities abound in Mission Hills, from countless independent shops and fun-filled parks. Most of the boutiques, restaurants and pubs are located along Washington, West Lewis and India streets, featuring such gems as hand-crafted products, British treats and gifts, meats smoked on-site and craft beers. Delightful local parks provide plenty of community entertainment and recreation, including:

» 10-acre Pioneer Park, featuring a junior boot camp, numerous community festivals and events, a playground and tennis courts

» Mission Hills Park

» West Lewis Street Pocket Park

» Many Mission Hills neighborhoods are also next to the magnificent 40-acre Presidio Park, Heritage Park Victorian Village and all of the and historic sites of Old Town.

Mission Hills is an ideal community for families, retirees and professionals looking for the consummate San Diego lifestyle. Historic homes and extraordinary estates fill the closely knit neighborhoods with a captivating charm that exudes a small-town ambiance, while keeping residents near all of San Diego’s best features.

Source: Neighborhoodscout.com


IMPRESSIVE DEMOGRAPHICSWhile Mission Hills is primarily a residential community, it enjoys

a location that is in close proximity to Downtown San Diego.

5 MILE RADIUS

488,137

Densely Populated LocationThe five-year projection for the population in the area is 510,768 representing a change of 0.91% annually from2019 to 2024.

$67,272

Strong Household IncomeMedian household income is projected to be $80,848 in five years.

30,093

Concentration of BusinessesOver 30,000 businesses are located within a 5-mile radius of Mission Hills.

209,358

Number of HouseholdsThe five year projection of households is 220,420, a change of 1.04% annually from the current year total.

47%

Highly Educated Workforce47% of the population in the area hold a bachelor or graduate degree.

Approximately 16.6% of the population within a one

mile radius and 20.1% within five miles hold an annual

income of over $200,000.

16.6%1 MILE

20.1%5 MILE

REMARKABLE HOUSEHOLD INCOME

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]

Mission Hills Apartments - LoopNet · of San Diego’s Uptown community of Mission Hills. The...

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Transcript of Mission Hills Apartments - LoopNet · of San Diego’s Uptown community of Mission Hills. The...