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3047 44th Street, San Diego, CA, 92105
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3047 44th StreetCONTENTS
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of theproperty. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
01 Executive Summary Executive Summary 5
Unit Mix Summary 6
Location Summary 7
02 Property Description Property Features 9
Aerial Map 10
Common Amenities 11
Unit Amenities 12
Property Images 13
03 Financial Analysis Income & Expense Analysis 15
Multiyear Cash Flow Assumptions 16
Cash Flow Analysis 17
Disposition Sensitivity Analysis 19
04 Demographics Demographics 21
Demographic Charts 22
Exclusively Marketed by:
Adrian GonzalezSenior Associate 858.735-9977License # BRE# 01844618 [email protected]
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from South Coast Commercial Inc. and it should not be made available to any other personor entity without the written consent of South Coast Commercial Inc..
By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such informationin the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offeringmemorandum. If you have no interest in the subject property, please promptly return this offering memorandum to South CoastCommercial Inc.. This offering memorandum has been prepared to provide summary, unverified financial and physical informationto 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. South Coast Commercial Inc. hasnot made any investigation, and makes no warranty or representation with respect to the income or expenses for the subjectproperty, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence of absence of contaminating substances, PCBs or asbestos, the compliance with local, state andfederal regulations, the physical condition of the improvements thereon, or 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 offering memorandum has been obtained from sources we believe reliable; however, SouthCoast Commercial Inc. has not verified, and will not verify, any of the information contained herein, nor has South CoastCommercial Inc. conducted any investigation regarding these matters and makes no warranty or representation whatsoeverregarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verifyall of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating thesubject property.
3047 44th Street Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER:
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONTACT SOUTH COAST COMMERCIAL INC. FOR MORE DETAILS.
Copyright © 2018 CREOP, LLC. All Rights Reserved.
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Executive Summary
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Unit Mix Summary
Location Summary
3047 44th Street Executive Summary | 05
OFFERING SUMMARY
ADDRESS 3047 44th Street San Diego CA92105
COUNTY San Diego
MARKET San Diego
SUBMARKET City Heights
BUILDING SF
LAND SF 6,250NUMBER OF UNITS 4YEAR BUILT 1940OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARY
OFFERING PRICE $949,000
PRICE PSF
PRICE PER UNIT $237,250OCCUPANCY 100 %NOI (CURRENT) $39,508
NOI (Pro Forma) $60,348CAP RATE (CURRENT) 4.1 %CAP RATE (Pro Forma) 6.3 %
GRM (CURRENT) 14.41
GRM (Pro Forma) 11.3
PROPOSED FINANCING
LOAN TYPE Fully Amortized
DOWN PAYMENT $400,000LOAN AMOUNT $549,000
INTEREST RATE 4.750 %
ANNUAL DEBT SERVICE $41,042
LOAN TO VALUE 75 %
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE
2017 Population 43,254 292,370 670,084
2017 Median HH Income $38,650 $46,187 $53,814
2017 Average HH Income $54,229 $66,209 $76,775
We are pleased to present 44th St 4plex. The property consistsof a lovely 2Bedroom/1Bath house and triplex in back that are (2)1Bedrooms and a 3Bedroom/2Bath upstairs. All units have beencompletely renovated throughout the interiors and exterior. Thehouse features a large floor plan with new kitchen, newcabinetry, new appliances, new flooring and new bathroom. Theproperty is centrally located and sits at the end of a quiet cul-de-sac overlooking canyon views. It is close proximities to majorfreeways, recreation, transportation and schooling.This is aperfect opportunity for someone looking to invest into arenovated property and raise rents without doing much.
Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly
IncomeMarket Rent Market Rent
PSFMarket Income
1 bd / 1 ba 2 $825 $1,650 $1,295 $2,590
2 bd / 1 ba 1 $1,850 $1,850 $1,995 $1,995
3 bd / 2 ba 1 $1,550 $1,550 $2,100 $2,100
Totals/Averages 4 $1,263 $5,050 $1,671 $6,685
3047 44th Street Unit Mix Summary | 06
3047 44th Street Location Summary | 07
City Heights is large and diffuse, with many subneighborhoods. The neighborhood is divided intotwo pieces by Fairmount Avenue: City Heights Eastand City Heights West. The neighborhood isbounded by Interstate 805 to the west, El CajonBoulevard to the north, 54th Street to the east, andHome Avenue/Euclid Avenue/Chollas Parkway tothe southeast.
"Downtown" City Heights is generally regarded asaround Fairmount and University Avenues.
The neighborhood is further divided into sixteensub-neighborhoods: Teralta East, Teralta West,Corridor, Cherokee Point, Colina Park, Castle,Fairmount Park, Fairmount Village, Fox Canyon,Islenair (a city-designated historic district), ChollasCreek, Swan Canyon, Azalea Park, Hollywood Park,Ridgeview, and Bayridge.
Regional Map
Locator Map
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Property Description
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Aerial Map
Parcel Map
Additional Maps
Amenities
Property Images
3047 44th Street Property Features | 09
Site Description
NUMBER OF UNITS 4BUILDING SF
LAND SF 6,250YEAR BUILT 1940# OF PARCELS 1
NUMBER OF STORIES 2
NUMBER OF BUILDINGS 1
3047 44th Street Aerial Map | 10
3047 44th Street Property Images | 11
centrally located storage units for additional income
separate 3bed/1bath house common area
3047 44th Street Property Images | 12
Renovated Interiors
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Financial Analysis
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Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
Disposition Sensitivity Analysis
3047 44th St Cash Flow Analysis
3047 44th Street Income & Expense Analysis | 15
INCOME CURRENT PRO FORMA
Gross Potential Rent $60,600 $80,220
Storage $1,920
Laundry $1,800 $1,800
Gross Potential Income $62,400 $83,940
Less: General Vacancy $1,818 $2,407
Effective Gross Income $60,582 $81,533
Less: Expenses $21,074 $37,374
Net Operating Income $39,508 $44,159
Annual Debt Service $41,042 $41,042
Debt Coverage Ratio 0.96 1.08
Cash Flow After Debt Service ($1,534) $3,118
Principal Reduction $10,667 $10,667
Total Return 4.1 % $9,133 6.1 % $13,784
EXPENSES CURRENT PROFORMA
Water & Sewer $312 $3,120 $312 $3,120
Landscaping $77 $768 $77 $768
Trash Removal $50 $500 $1,680 $16,800
Pest Control, Maintenance $34 $336 $34 $336
Management (Off Site) $312 $3,120 $312 $3,120
Licenses & Fees $6 $60 $6 $60
Maintenance $200 $2,000 $200 $2,000
Insurance $100 $1,000 $100 $1,000
Taxes $1,017 $10,170 $1,017 $10,170
Total Operating Expense $2,107 $21,074 $3,737 $37,374
Expense / SF $1.96 $3.48
% of EGI 34.79 % 45.84 %
Per Unit Per Unit
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
3047 44th Street Multiyear Cash Flow Assumptions | 16
GLOBAL
Sale Price $900,000
INCOME
Gross Potential Rent 3.00 %
3.00 %
PROPOSED FINANCING
Loan Type Fully Amortized
Down Payment $400,000Loan Amount $549,000
Interest Rate 4.75 %Annual Debt Service $41,042
Loan to Value 58 %
3047 44th Street Cash Flow Analysis | 17
CASH FLOW
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $60,600 $80,220 $82,627 $85,105 $87,659 $90,288 $92,997 $95,787 $98,660 $101,620
Storage $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920
Laundry $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800
Gross Potential Income $62,400 $83,940 $86,347 $88,825 $91,379 $94,008 $96,717 $99,507 $102,380 $105,340
General Vacancy $1,818 $2,407 $2,479 $2,553 $2,630 $2,709 $2,790 $2,874 $2,960 $3,049
Effective Gross Income $60,582 $81,533 $83,868 $86,272 $88,749 $91,300 $93,927 $96,633 $99,421 $102,292
Operating ExpensesWater & Sewer $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120
Landscaping $768 $768 $768 $768 $768 $768 $768 $768 $768 $768
Trash Removal $500 $16,800 $16,800 $16,800 $16,800 $16,800 $16,800 $16,800 $16,800 $16,800
Pest Control, Maintenance $336 $336 $336 $336 $336 $336 $336 $336 $336 $336
Management (Off Site) $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120 $3,120
Licenses & Fees $60 $60 $60 $60 $60 $60 $60 $60 $60 $60
Maintenance $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Taxes $10,170 $10,170 $10,170 $10,170 $10,170 $10,170 $10,170 $10,170 $10,170 $10,170
Total Operating Expense $21,074 $37,374 $37,374 $37,374 $37,374 $37,374 $37,374 $37,374 $37,374 $37,374
Net Operating Income $39,508 $44,159 $46,494 $48,898 $51,375 $53,926 $56,553 $59,259 $62,047 $64,918Annual Debt Service $41,042 $41,042 $41,042 $41,042 $41,042 $41,042 $41,042 $41,042 $41,042 $41,042
Cash Flow ($1,534) $3,118 $5,452 $7,856 $10,333 $12,884 $15,511 $18,218 $21,005 $23,876
Effective Gross Income vs Operating Expenses Cash Flow
3047 44th Street Cash Flow Analysis | 18
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCAP Rate 4.1 % 4.91 % 5.17 % 5.43 % 5.71 % 5.99 % 6.28 % 6.58 % 6.89 % 7.21 %
Debt Coverage Ratio 0.96 1.08 1.13 1.19 1.25 1.31 1.38 1.44 1.51 1.58
Operating Expense Ratio 34.78 % 45.83 % 44.56 % 43.32 % 42.11 % 40.93 % 39.79 % 38.67 % 37.59 % 36.53 %
Gross Multiplier (GRM) 14.42 10.72 10.42 10.13 9.85 9.57 9.31 9.04 8.79 8.54
Loan to Value 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 %
Breakeven Ratio 102.53 % 96.18 % 93.50 % 90.89 % 88.36 % 85.89 % 83.49 % 81.15 % 78.87 % 76.66 %
Price / SF
Price / Unit $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000
Expense / SF
Income / SF $6 $8 $8 $8 $8 $9 $9 $9 $9 $10
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Demographic Charts
3047 44th Street Demographics | 21
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 41,952 286,754 606,762
2010 Population 41,343 278,135 625,084
2017 Population 43,254 292,370 670,084
2022 Population 44,633 302,590 702,861
2017 African American 5,057 37,359 72,190
2017 American Indian 360 2,329 5,211
2017 Asian 7,503 32,070 84,373
2017 Hispanic 25,916 141,985 282,361
2017 White 13,558 129,657 331,057
2017 Other Race 14,518 73,685 135,278
2017 Multiracial 2,102 15,886 38,073
2017-2022: Population: Growth Rate 3.15 % 3.45 % 4.80 %
2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 2,061 15,588 33,227
$15,000-$24,999 1,857 13,266 25,972
$25,000-$34,999 1,568 11,332 23,005
$35,000-$49,999 2,104 15,522 32,598
$50,000-$74,999 1,892 18,105 42,187
$75,000-$99,999 1,155 11,778 29,808
$100,000-$149,999 1,052 11,445 33,767
$150,000-$199,999 357 4,023 13,091
$200,000 or greater 256 4,165 13,737
Median HH Income $38,650 $46,187 $53,814
Average HH Income $54,229 $66,209 $76,775
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 12,341 105,080 225,596
2010 Total Households 11,786 100,289 229,171
2017 Total Households 12,300 105,224 247,393
2022 Total Households 12,661 108,813 261,305
2017 Average Household Size 3.50 2.74 2.60
2000 Owner Occupied Housing 3,827 33,449 84,149
2000 Renter Occupied Housing 8,043 67,998 132,815
2017 Owner Occupied Housing 3,697 33,480 90,082
2017 Renter Occupied Housing 8,604 71,745 157,311
2017 Vacant Housing 624 6,196 17,180
2017 Total Housing 12,924 111,420 264,573
2022 Owner Occupied Housing 4,222 37,671 100,683
2022 Renter Occupied Housing 8,439 71,142 160,622
2022 Vacant Housing 643 6,378 17,032
2022 Total Housing 13,304 115,191 278,337
2017-2022: Households: Growth Rate 2.90 % 3.35 % 5.50 %
Source: esri
3047 44th Street Demographic Charts | 22
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Population by Race
3047 44th Street Demographic Charts | 23
2017 Household Occupancy - 1 Mile Radius
Average Income Median Income
2017 Household Income Average and Median
3047 44th Street
powered by CREOP
Exclusively Marketed by:
Adrian GonzalezSenior Associate 858.735-9977License # BRE# 01844618 [email protected]