1855 BAYVIEW HEIGHTS DRIVE SAN DIEGO, CA 92105

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1855 BAYVIEW HEIGHTS DRIVE

as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risks for any inaccuracies.

Turn-Key Investment

SAN DIEGO, CA 92105

Extensive Recent Renovations

On-Site Parking & Laundry

Great Central Location

Property Highlights:

Multi-Family Offering Close Proximity to Highway 94


Property Description:


SAN DIEGO, CA 92105


1855 Bayview Heights Drive is a fourteen (14) unit multi-family

dwelling located in the Oak Park neighborhood of City Heights in San

Diego, California. Built in 1977, the property consists of eight (8) two-

bedroom/one-bath units and six (6) one-bedroom/one-bath units

totaling a massive 11,040 rentable square feet. The two-story

building sits on a half-acre lot and is comprised of a wood-frame,

stucco exterior on a concrete slab foundation featuring a flat roof. The

property features seventeen (17) on-site parking spaces (1.21:1

ratio), a modern laundry facility, and plenty of off-street parking.

An investor will benefit from an extensive list of recent renovations.

The exterior boasts new painting, windows, handrails, a state-of-the-

art laundry room with coin-operated machines, and a resurfaced

parking lot. The units’ interiors have all been redone with new paint and

laminate flooring throughout; carpeting in the bedrooms, new closet

doors and blinds. The kitchens feature new cabinetry, counter-tops,

refrigerators, electric stoves, stainless steel double bowl sinks and

faucets. The bathrooms were upgraded with new vanities, tubs,

toilets, and mirrors.

Its location is a hub for San Diego’s rental market. It is tucked away

within a tranquil residential neighborhood, while remaining close to

shopping, restaurants, financial institutions, elementary and

secondary schools, gyms, parks and much more. The building’s

overall site on a hilltop offers a very unique, private setting, yet

remains walking distance to local bus routes and less than a quarter-

mile from highway 94, minutes away from Downtown San Diego and a

stone throw’s away from San Diego State University. The offering is

ideal for a seasoned investor looking to add to their portfolio or

someone looking to exchange into a stable asset that they can

manage on their own without the need of an on-site manager.

Assessor's Parcel Number 542-690-01-00

Zoning

Number of Units

Number of Buildings

Number of Stories

Year Built

Rentable Square Feet

R-4 (Multiple Res.)

Fourteen (14)

One (1)

Two-Story

1977

11,040

Construction:

Foundation

Framing

Exterior

Parking Surface

Concrete Slab

Wood

Stucco

Asphalt

Roof Flat

Utilities:

Gas

Water

Electric

City of San Diego (Owner)

SDG&E (Tenant)

SDG&E (Tenant)

John Ronis Jose Magadan Jr. (619) 565-5616 (619) 894-2931 [email protected] [email protected]


Market Description:


SAN DIEGO, CA 92105



City Heights is the beating heart of San Diego, centrally located in the San Diego

metropolitan area, south of Mission Valley, north of the Martin Luther King Freeway

(State Route 94), between Interstates 15 and 805 on the west and 54th Street on the

east. Its density, immigrant communities, and location in the middle of the city make

it a lively and convenient neighborhood to explore, especially for visitors looking to

discover arts and culture. It is rich in murals and public art, while gardens and farm-

ers’ markets are a mainstay. There are also plenty of canyons in City Heights to ex-

plore, including the Fox, Swan and Olivia Canyons.

The mix of food options in City Heights is endless. Home to San Diego's Little Saigon,

City Heights features some of the best Vietnamese cuisine in town, but there's Mexi-

can cuisine and cooking ingredients at the Pancho Villa Farmers Market, excellent Eri-

trean/Ethiopian food at Asmara on University Avenue, and tasty Somali cuisine

at Fatuma's Restaurant, where you can get traditional sambusas and spicy Somali

tea.

City Heights is such a unique community in the San Diego landscape and well worth

revisiting time and again to experience its diverse options. Source: SanDiego.org


Aerial & Map Views:


SAN DIEGO, CA 92105




Exterior Photos:


SAN DIEGO, CA 92105



Parking lot was resurfaced and

restriped.

Laundry room was completely

renovated.

New, coin-operated machines

installed.


Interior Photos:


SAN DIEGO, CA 92105



New paint, laminate flooring

throughout.

Kitchens were upgraded with new

appliances, cabinetry, range hoods,

stainless steel double bowl sinks

and faucets.

Bathrooms have new vanities, tubs,

toilets, and mirrors.


Investment Summary:


SAN DIEGO, CA 92105



Unit Mix: # of Units Unit Type SF (Approx) Current Monthly Gross Pro Forma Monthly Pro Forma

8 2BR/1BTH 870 $1400-$1500 $11,475 $1,550 $12,400

6 1BR/1BTH 680 $1195-$1200 $7,190 $1,250 $7,500

14 (T) 11,040 $18,665 $19,900

Financial Analytics:

List Price $2,800,000

Down Payment (38%) $1,064,000

Units 14

Price Per Unit $200,000

Building Square Feet 11,040

Price Per Square Feet $253.62

Year Built 1977

Lot Size (Square Feet) 23,522

Current Cap Rate 4.81%

Pro Forma Cap Rate 5.32%

Current GRM 12.50

Pro Forma GRM 11.73

Cash Flow After DS (Current) 2.14%

Cash Flow After DS (Pro Forma) 3.49%

Total Return (Current) 4.55%

Total Return (Pro Forma) 5.90%

Loan Terms:

First Trust Deed

Loan Type New

Loan Amount $1,736,000

LTV 62%

Interest Rate 5.00%

Amortization (Yrs) 30


Investment Summary:


SAN DIEGO, CA 92105



Operating Summary:

Income Current Pro Forma

Gross Potential Rent $223,980 $238,800

(+) Laundry & Parking $4,540 $4,540

(=) Gross Potential Income $228,520 $243,340

(-) Vacancy (3%) $6,719 $7,164

(=) Effective Gross Income $221,801 $236,176

(-) Expenses $87,213 $87,213

(=) Net Operating Income $134,588 DCR $148,963 DCR

(-) Annual Debt Service $111,831 1.20 $111,831 1.33

(=) CF After Debt Service $22,757 2.14% $37,132 3.49%

(+) Principal Reduction $25,612 $25,612

(=) Total Return $48,369 4.55% $62,745 5.90%

Expenses

Real Estate Taxes $32,889 1.17% $32,889

Insurance $3,230 $3,230

Water & Sewer $7,365 $7,365

SDG&E $2,458 $2,458

Rubbish $2,983 $2,983

Pest Control $1,800 $1,800

Management $10,430 $10,430

Landscaping $4,473 $4,473

Repairs & Maintenance $18,085 $18,085

Reserves/Replacements $3,500 $3,500

Total $87,213 $87,213

% of EGI 39.32% 36.93%


On-Market Comparables: 1855 BAYVIEW HEIGHTS DRIVE

SAN DIEGO, CA 92105


1) 3855 38th Street San Diego, Ca 92105

San Diego, Ca 92105 4061 Van Dyke Avenue

2605 Highland Avenue San Diego, Ca 92105

Sales Price: $4,275,000



Number of Units: 18

Number of Units: 16

Number of Units: 10 Year Built: 1973

Year Built: 1970

Year Built: 1986

Cap Rate: 3.5%

Cap Rate: 3.65%

Cap Rate: 4.41%

GRM: 15.01

GRM: 14.88

GRM: 14.99

Price/Unit: $237,500



Price/SF: $365.70

Price/SF: $284.47

Price/SF: $316.55

Close of Escrow: On-Market



Days on Market: 72

Days on Market: 269

Days on Market: 92

Unit Mix:

Unit Mix:

Unit Mix:

Eight (8) 2BR/1BTH Nine (9) 1BR/1BTH One (1) Studio/1BTH

Four (4) 2BR/2BTH Four (4) 2BR/1BTH Eight (8) 1BR/1BTH

One (1) 2BR/2BTH Two (2) 2BR/1.5BTH Seven (7) 1BR/1BTH

Annual expenses at $134,984. Amenities at

the property include on-site laundry, garag-

es, pool and private balconies/patios.

Annual expenses at $98,180. Property

amenities include on-site parking and

garages.

Annual expenses at $46,355. New roof

installed. Most units boast tile. On-site

amenities include parking and laundry.

2)

3)



On-Market Comparables:


Cap Rate & GRM


Average

3.85%

Average

14.96


On-Market Comparables:


Price per Unit & Price per SF


Average

$218,333

Average

$355.57


Sold Comparables: 1855 BAYVIEW HEIGHTS DRIVE

SAN DIEGO, CA 92105


1) 2644 Fairmount Avenue San Diego, Ca 92105

San Diego, Ca 92105 4122 39th Street

4169 38th Street San Diego, Ca 92105




Number of Units: 10

Number of Units: 16

Number of Units: 13 Year Built: 1969

Year Built: 1985

Year Built: 1985

Cap Rate: 4.13%

Cap Rate: 4.76%

Cap Rate: 4.61%

GRM: 12.87

GRM: 14.88

GRM: 13.22




Price/SF: $315.48

Price/SF: $321.05

Price/SF: $313.00

Close of Escrow: 10/15/2018



Days on Market: 61

Days on Market: 14

Days on Market: 15

Unit Mix:

Unit Mix:

Unit Mix:

Four (4) 2BR/1BTH Six (6) 1BR/1BTH

Sixteen (16) 1BR/1BTH

Seven (7) 2BR/1BTH Six (6) 1BR/1BTH

Annual expenses projected at $42,000. Sold

for $50K less than original list price.

Amenities included on-site parking, laundry

and common area BBQ. Upgraded kitchens.

Annual expenses projected at $64,000. The

property sold for $100,000 less than original

list price.

Annual expenses projected at $55,500.

Amenities include on-site parking spaces and

garages (5), as well as laundry. Low-

maintenance landscaping.

2)

3)



Sold Comparables: 1855 BAYVIEW HEIGHTS DRIVE

SAN DIEGO, CA 92105


4) 3666 43rd Street San Diego, Ca 92105


Number of Units: 18

Year Built: 1970

Cap Rate: N/A

GRM: 14.78


Price/SF: $309.55

Close of Escrow: Sold

Days on Market: 18

Unit Mix:

Six (6) 2BR/1BTH Twelve (12) 1BR/1BTH


Amenities include on-site parking and

laundry, pedestrian gate-access, and balco-

nies in select units.


Sold Comparables:


Cap Rate & GRM


Average

4.50%

Average

13.94


Sold Comparables:


Price per Unit & Price per SF


Average

$193,577

Average

$292.18




Exclusively Listed By:

SAN DIEGO, CA 92105

List Price:

Multi-Family Offering

John Ronis Jose Magadan Jr. Berkshire Hathaway Ca Properties 2060 Otay Lakes Road #150 Chula Vista, Ca 91915 Telephone: (619) 946-1900 Fax: (619) 421-5606 [email protected] [email protected] Ca BRE# 01846535 Ca BRE# 01876187

$2,800,000

Documents

1855 BAYVIEW HEIGHTS DRIVE SAN DIEGO, CA 92105