THE LOT @ 30TH STREET

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1 2 4 , 1 4 8 E 3 0 T H S T & 1 2 1 E 3 1 S T S TN AT I O N A L C I T Y , C A 9 1 9 5 0

NON-ENDORSEMENT

& DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and

strictly confidential. It is intended to be reviewed only by the party receiving it from

Marcus & Millichap and should not be made available to any other person or entity

without the written consent of Marcus & Millichap. This Marketing Brochure has been

prepared to provide summary, unverified information to prospective purchasers, and

to establish only a preliminary level of interest in the subject property. The information

contained herein is not a substitute for a thorough due diligence investigation. Marcus

& Millichap has not made any investigation, and makes no warranty or representation,

with respect to the income or expenses for the subject property, the future projected

financial performance of the property, the size and square footage of the property

and improvements, the presence or absence of contaminating substances, PCB’s or

asbestos, the compliance with State and Federal regulations, the physical condition

of the improvements thereon, or the financial condition or business prospects of any

tenant, or any tenant’s plans or intentions to continue its occupancy of the subject

property. The information contained in this Marketing Brochure has been obtained

from sources we believe to be reliable; however, Marcus & Millichap has not verified,

and will not verify, any of the information contained herein, nor has Marcus & Millichap

conducted any investigation regarding these matters and makes no warranty or

representation whatsoever regarding the accuracy or completeness of the information

provided. All potential buyers must take appropriate measures to verify all of the

information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap

Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial

tenant or lessee identified in this marketing package. The presence of any corporation’s logo

or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement

by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent,

product, service, or commercial listing of Marcus & Millichap, and is solely included for the

purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS

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

EXECUTIVE SUMMARY 4

PROPERTY OVERVIEW 9

FINANCIAL ANALYSIS 14

MARKET ANALYSIS 17

COMPETITIVE SET 21

MARKET OVERVIEW 23

https://youtu.be/Tj1Wy17nJXE

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

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AVERAGE EFFECTIVE RENT APPROXIMATLEY

25% BELOW MARKET

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ASSET IS 91% LEASED WITH AN AVERAGE

IN-PLACE RENT OF $1.32/SF GROSS

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VALUE ADD OPPORTUNITY THROUGH

LEASE NEGOTIATION & RENTAL INCREASES

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RECENT EXTENSIVE RENOVATION &

MODERNIZATION

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18,500 CARS PER DAY ON NATIONAL CITY BLVD

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RECORD LOW SOUTH BAY SAN DIEGO

OFFICE VACANCY OF 2.2%

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Marcus & Millichap is pleased to present The Lot, located at 124, 148 E 30th St. and 121 E 31st St, National City, CA 91950. This center was built in 1976 from wood frame construction. The two-story, three (3) building Office project is comprised of 18,595 square-feet of rentable building area; situated on over 41,609 square-feet of land, with frontage on E 30th Street, situated between National City Blvd. and B Ave. Located in the heart of National City, the properties are within walking distance to the Miles of Cars, Transit Station, major retailers, & quick access to I-5, I-805 and Highway 54.

Two of three buildings were recently renovated and feature high-end finishes, with a new exterior facade, new dedicated HVAC units, roof and flashing repairs, energy efficient windows and doors. Additionally, new exterior lighting, remodeled commons areas, restrooms, signage program, drought tolerant landscaping and drip irrigation system.

The Lot is currently 91% leased and comprised of 19 diverse office tenants. The average in place rent of $1.32 per square-foot gross is approximately 25% below market. This is a rare opportunity to acquire one of the best located and highly scarce Office projects in the South Bay area of San Diego. In the first quarter of 2018, the total South San Diego Office vacancy totaled 2.2%. The average Office asking rent in National City is currently $1.75 per square-foot.

T H E H I G H L I G H T S

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

5

O F F E R I N GMEMORANDUM

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

A N C H O R T E N A N T

SOUTHBAY RESPITEwww.ARCHRespite.org

The mission of the ARCH National Respite Network and Resource Center is to assist and promote the development of quality respite and crisis care programs in the United States; to help families locate respite and crisis care services in their communities; and to serve as a strong voice for respite in all forums.

The ARCH National Respite Network includes the National Respite Locator, a service to help caregivers and professionals locate respite services in their community, the National Respite Coalition, a service that advocates for preserving and promoting respite in policy and programs at the national, state, and local levels, and the Lifespan Respite Technical Assistance Center which is funded by the Administration for Community Living in the US Department of Health and Human Services.

20.7% OF RBASOUTHBAY RESPITE

3,840 SF

M A J O RT E N A N C Y

FINANCIAL HIGHLIGHTS

Offering Price $3,200,000

Price/SF $172.26

Net Rentable Area (RBA) 18,577 SF

Net Operating Income - Current / ProForma $195,596 / $271,643

CAP Rate - Current / ProForma 6.11% / 8.49%

Average Rent Per SF - Office / Market $1.32 / $1.75 (Gross)

10% OF RBABILATERAL SAFTEYCORRIDOR COALITION

1,773 SF

6.48% OF RBALATIN AMERICAALLIANCE

1,203 SFThis information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of California © 2017 Marcus & Millichap. Activity ID: 6 7

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Mor

SA

N D

IEG

O B

AY

SUBJECT PROPERTY

WestfieldShopping Center

SweetwaterShopping

Center

SweetwaterHigh School

Kimball Park

National CityMile of Cars

San Diego Naval

Air Station

18,500VPD

P R O P E R T YO V E R V I E W

P R O P E R T Y O V E R V I E W

ADDRESS124, 148 E 30th St. & 121 E 31 St.

National City, CA 91950

INGRESS/EGRESS E 30th St. & National City Blvd.

NET RENTABLE AREA 18,577 SF

NUMBER OF BUILDINGS (3) Two Story Buildings

YEAR BUILT 1976/2017

PARKING Ratio of 4.0/1,000 SF

LAND SIZE 41,609 SF

ZONING Commercial

CONSTRUCTION Wood

WINDOWS/DOORS Renovated Energy Efficent

ROOF Flat

HVAC Dedicated HVAC Units

ELEVATOR None

LANDSCAPE & SITE Drought Tolerant

P R E S S P L AY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of California © 2017 Marcus & Millichap. Activity ID: 10 11

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http://thetotahgroup.com/property/the-lot-30th-st/


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F I N A N C I A LA N A L Y S I S

PROPOSED FINANCING

Loan Amount $2,080,000

Loan-To-Value 65%

Amortization 30 Years

Interest Rate 4.75%

Monthly Payment $10,850

Annual Payment $130,203

Loan quotes subject to change. Please contact your Marcus & Millichap Capital

Corporation representative for a more up to date quote.

ANNUALIZED INCOME FIGURES

CURRENT PROFORMA

Scheduled Base Rent 1 $293,260 $370,558

Expense Reimbursements $10,765 $33,743

Total Income $304,025 $404,301

Vacancy (Current 9.4% / Market 5%) - ($20,215)

Total Expenses ($108,429) ($112,443)

Net Operating Income (NOI) $195,596 $271,643

Less Loan Payments ($130,203) ($130,203)

Pre-Tax Cash Flow 5.84% / $65,393 12.63% / $141,440

Plus Principle Reduction $37,001 $37,001

Total Return Before Taxes 9.14% / $102,394 15.93% / $178,441ANNUALIZED EXPENSE FIGURES

CURRENT PRO FORMA

Taxes (adj. for Sale) $36,450 $36,450

Insurance $5,196 $5,196

Trash $2,516 $2,516

Water $2,500 $2,500

Utilities $22,426 $22,426

Maintenance $6,000 $6,000

Landscape $3,600 $3,600

Janitorial $17,580 $17,580

Management Fee (4.0%) $12,161 $16,172

Total Expenses $108,429 $112,443

Expenses Per SF $5.84 $6.05

FINANCIAL HIGHLIGHTS

CURRENT PRO FORMA

Offering Price $3,200,000 $3,200,000

Price/SF $172.26 $172.26

Net Rentable Area (RBA) 18,577 SF 18,577

Net Operating Income $195,596 $271,643

CAP Rate 6.11% 8.49%

Debt Coverage Ratio 1.50 2.09

Average Current Rent - Office $1.32 (Gross) $1.75 (Gross)

I N V E S T M E N T O F F E R I N G

Assumptions:

1. Pro Forma Rents assume on average a $1.75/SF Gross lease rate for Office rents (see rent roll).

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O F F E R I N GMEMORANDUM

CURRENT PROFORMA

BLDG/SUITE TENANT NAMESQUARE

FEET % OF

PROPERTY CURRENTPRICE/SF

CURRENTMONTHLY

CURRENTANNUAL

PROFORMAPRICE/SF

PROFORMAMONTHLY

PROFORMAANNUAL

LEASEBEGIN

LEASE EXP,

LEASE

121-A Bilateral Saftey Corridor 1,773 10% $1.68 $2,987.00 $35,844.00 $1.80 $3,191.40 $38,296.80 Feb-2015 M-T-M Gross

121-B Alianza Latino Americana 1,203 6.48% $1.36 $1,633.95 $19,607.40 $1.75 $2,105.25 $25,263.00 Sep-2015 Aug-2018 Gross

121-C VACANT 1,001 5.39% - - - $1.75 $1,751.75 $21,021.00 - - Gross

124-A1 David Najera 815 4.39% $1.37 $1,120.00 $13,440.00 $1.75 $1,540.00 $18,480.00 Aug-2014 M-T-M Gross

124-A2 MC Union 429 2.31% $1.52 $650.00 $7,800.00 $1.65 $707.85 $8,494.20 Sep-2015 M-T-M Gross

124-A3 VACANT 781 4.20% - - - $1.65 $1,288.65 $15,463.80 - - Gross

124-A4 CTE Inc. 430 2.31% $1.38 $595.00 $7,140.00 $1.75 $770.00 $9,240.00 Nov-2008 M-T-M Gross

124-A5 Frandan Mex 1,100 5.92% $1.18 $1,300.00 $15,600.00 $1.65 $1,815.00 $21,780.00 Jun-2015 M-T-M Gross

124-B American Guard Services 880 4.74% $1.63 $1,435.00 $17,220.00 $1.63 $1,434.40 $17,212.80 Jun-2018 Aug-2021 Gross

124-C KWN Real Estate 704 3.79% $1.57 $1,105.00 $13,260.00 $1.75 $1,232.00 $14,784.00 Jan-2017 Dec-2019 Gross

124-D BNA 365 640 3.45% $1.53 $979.00 $11,748.00 $1.75 $1,174.25 $14,091.00 Oct-2013 M-T-M Gross

124-E Yvonne Jeannette Zuniga 235 1.27% $1.70 $400.00 $4,800.00 $1.95 $458.25 $5,499.00 Feb-2017 M-T-M Gross

124-F Solorzano Insurance1 1,162 6.26% $1.77 $2,060.00 $24,720.00 $1.63 $2060.00 $24,720.00 Dec-2014 Aug-2021 Gross

148-101/102 Aunatic Technologies 2,184 11.76% $1.66 $3,625.00 $43,500.00 $1.66 $3,625.00 $43,500.00 Apr-2017 Apr-2023 Gross

148-103 Farmers Insurance 729 3.92% $1.63 $1,155.00 $14,268.00 $1.58 $1,151.82 $15,309.00 Nov-2014 Nov-2022 Gross

148-104 Kristine Taylor2 671 3.61% $1.68 $1,127.39 $13,528.68 $1.75 $1,174.25 $14,091.00 Aug-2017 Aug-2020 Gross

148-201 South Bay Respite, Inc. 3,840 20.67% $1.10 $4,232.00 $50,784.00 $1.35 $5,400.00 $64,800.00 Sep-2011 M-T-M Gross

TOTAL SQ.FT. 18,577 100% $1.32 $24,438.34 $293,260.08 $1.75 $30,879.87 $370,558.44

R E N T R O L LAnalysis Start Date 11/01/2018

M A R K E TA N A L Y S I S

1. Suite 124-F - Current lease rate based on rental increase effective 9/1/18

2. Suite 148-104 - Current lease rate based on rental increase effective 9/1/18

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of California © 2017 Marcus & Millichap. Activity ID: 16

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AVAILABILITY

SURVEY 5-YEAR AVG

Gross Rent Per SF $29.90 $26.03

Vacancy Rate 6.5% 11.1%

Vacant SF 281,143 476,918

Availability Rate 8.1% 11.8%

Available SF 348,486 506,881

Sublet SF 13,044 5,352

Months on Market 7.2 17.2

SALES

PAST YEAR 5-YEAR AVG

Sale Price Per SF $208 $236

Asking Price Per SF $324 $261

Sales Volume (Mil.) $9.7 $58

Cap Rate 6.0% 6.6

M A R K E T A N A L Y S I S

VA C A N C YC H A R T

A S K I N G R E N TC H A R T

National City is located 5 miles south of downtown San Diego, on San Diego Bay in southern San Diego County, and 10 miles north of Baja California, Mexico. The City is bordered by San Diego to the north and east, Chula Vista to the south, the unincorporated areas of Lincoln Acres and Bonita to the south and southeast, and San Diego Bay to the west.

The City is centrally located, within 20 minutes travel time of over 1.4 million people. This accessibility is comparable to Downtown San Diego’s

Port facilities and adjacent industrial developments located at the City’s bayfront are important to the region’s economy. The “Mile of Cars” provides a specialized, regional use with easy access from Interstate 5 and the South Bay Freeway (Route 54). At the other end of the City is Plaza Bonita, the largest retail center in the South Bay.

www.nationalcityca.gov


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C O M P E T I T I V EO V E R V I E W


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BUILDING NAME The Lot @ 30th St. NC Social Security H Street Plaza Third Ave Office Plaza

ADDRESS 124, 148 E 30th St, & 121 E 31St.National City, CA 91950

700 E 24th St.National City, CA 91950

401 H St.Chula Vista, CA 91910

311 F St.Chula Vista, CA 91910

SQUARE FOOTAGE 18,577 12,094 9,493 11,145

SALE PRICE $3,200,000 $6,330,00 $2,062,500 $1,420,000

PRICE PER SQUARE FEET $172.26 $523.40 $217.27 $127.41

OCCUPANCY % 91% 100% 100% 100%

SALE DATE TBD 08/24/2016 03/06/2017 06/29/2017

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BUILDING NAME Euclid FHCSD Bonita Professional Bldg. Eastlake Professional Center The Archways

ADDRESS 1000 Euclid Ave. National City, CA 91950

4190 Bonita Rd.Bonita, CA 91902

2086 Otay Lakes Rd.Chula Vista, CA 91915

4535 30th St.San Diego, CA 92116

SQUARE FOOTAGE 6,416 15,367 8,191 15,386

SALE PRICE $1,900,000 $3,675,000 $1,486,771 $3,600,000

PRICE PER SQUARE FEET $296.13 $239.15 $181.51 $233.98

OCCUPANCY % 100% 100% 100% 100%

SALE DATE 10/05/2016 03/23/2017 12/22/2017 07/06/2017

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S A L E C O M PA R A B L E S

M A R K E TO V E R V I E W


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OVERVIEWDowntown San Diego will continue to be a hot spot for growing tech

tenants and co-working operators. Psyonix, a local rapidly growing video

game publisher known for their hit game Rocket League, nearly qua-

drupled their Downtown office footprint in 2016. The company relocated

from just over 9,000 SF at 707 Broadway to nearly 40,000 SF at 401 W

A St. In addition to WeWork’s new location, other co-work operators ex-

panded into Downtown including the 65,000 SF owner-user purchase of

1111 6th Ave by Level Office and 12,400 SF at 704 J St by Union Cowork.

The Downtown tech and co-work trend is partly attributed to a growing

millennial employment base that lives-works-plays in Downtown and

the immediately surrounding residential communities. These employees

are concentrated in the various tech industries, which are increasingly

utilizing flexible work environments and cooperative work spaces. While

many suburban sub-markets will continue to attract similar tenants,

the pace of demand in Downtown will continue to accelerate. Both the

Downtown and suburban sub-markets will continue to see vacancy

decrease steadily.

In addition, if the moves of Amazon and Google into the market are

any indication of the future of San Diego’s employment base, then we

should expect to see a substantial up tick in the tech start-up migration

from higher cost of living locales such as; Silicon Valley in the Bay Area

and Silicon Beach in Los Angeles. These top technology companies

compliment San Diego’s robust biotechnology sector well, and their

widely admired creative company cultures fit San Diego’s live-work-play

ethos that is so desired by young top-talent seeking not only meaningful

work but, a premium quality of life

AVERAGE HOUSEHOLD INCOME

POPULATION GROWTH

AVERAGE HOME VALUE

MEDIAN AGE

EMPLOYMENT RATE

MPOPULATION

BGROSS REGIONAL PRODUCT

SAN DIEGO BY THE NUMBERS


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LARGEST EMPLOYERS

EMPLOYER EMPLOYEES

University of California, San Diego 26,000

County of San Diego 20,500

United States Navy, San Diego 20,000

City of San Diego 19,500

San Diego Unified School District 15,881

Sharp Health Care 14,390

Scripps Health 12,700

Qualcomm, Inc. 9,444

Kaiser Foundation Hospital 7,608

San Diego State University 6,939

With its warm, year-round climate, 50 miles of sun-soaked coastline and

world-famous attractions, San Diego is a top tourist destination. But this

Southern California metropolis with a laid-back vibe is also home to cutting-

edge businesses for telecommunications, biotechnology, software, electronics

and other major innovative industries.

The San Diego County unemployment rate decreased by 0.6% through

October 2017 to 4.1%. This is the lowest rate of unemployment in nearly nine

years – since May 2007. The state rate decreased 0.8% to stand at 4.8%. The San

Diego-Carlsbad-San Marcos Metropolitan Statistical Area (MSA) encompasses

the entire county of San Diego with its cities and unincorporated areas. The

total civilian labor force stands at 1.57 million people. Of that, 1.42 million

people are employed in non-farm industries.

The various national, state, and local government agencies are the largest

employers in the county. For example, the University of California and the

United States Navy each employ over 20,000 people each. However, San Diego

has several prominent companies that employ thousands of employees each.

The biggest companies tend to be hospitals, communications, and defense

companies. San Diego continues its economic recovery that began in 2010

with increased growth over the last five years.

Key Facts and Figures:

• 14 advanced industries produce $42.1 billion and pay $116,600/year on

average (Brookings Institute)

• Rated No. 1 in concentration of military/defense assets in the world (San

Diego Military Advisory Council)

• Rated No. 2 as the Most Inventive City in the World (Forbes 2013)

• 7.9% Year-over-year growth in real estate, rental, leasing and construction

sectors

• 3,746 New business establishments (October 2017)

Source: SanDiegoBusiness.Org

More than 60% of people who migrate herehold a college degree

Over 63,000 professionals in science andengineering jobs

39.6% of degree holders have their firstdegree in a STEM field

22.3% of the population are Multi-LingualEnglish-Speaking.

23.4% growth in millennial degree holdersfrom 2010 - 2014

(Source: San Diego Regional













TOURISM INNOVATION MILITARY


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T H E L O T @ 3 0 T H S T R E E T1 2 4 , 1 4 8 E 3 0 T H S T. & 1 2 1 E 3 1 S T S T.

N AT I O N A L C I T Y , C A 9 1 9 5 0

EXCLUSIVELY LISTED BY

NICK TOTAHFirst Vice President InvestmentsPrivate Client Group(858) 373-3159 [email protected]: CA 01922255

GREG FARRISInvestment AssociatePrivate Client Group(858) 373-3189 [email protected]: CA 02063774

RICARDO PARTIDALicensed Managing PartnerPrivate Client Group(858) [email protected]: CA 02027870

WWW.THETOTAHGROUP.COM

DEBT + EQUITY BY

CHAD O’CONNORMMCCSenior Vice President Capital Corporation(858) 373-3231 [email protected]

THE LOT @ 30TH STREET

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