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FOR SALE Tuscany Hills Retreat Boutique Hotel | Value-Add Opportunity
Alanis Group
29850 CIRCLE R WAYEscondido, CA 92026
Confidential Offering Memorandum
Tony Alanis Managing Director - NNN Sales O: 415.7048794 M: 760.670.9472 [email protected] BRE #01854611
John Alanis Investment Advisor O: 510.206.6511 M: 408.607.7724 [email protected] BRE# 02025307
Table of Contents
CONFIDENTIALITY AGREEMENT & DISCLOSURE
The information contained in the following Investment Summary is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from NAI Northern California Investment Real Estate Brokerage and
should not be made available to any other person or entity without the written consent of Broker. This Investment Summary 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. Broker 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 improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or
intentions to continue occupancy of the subject property. The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable; however, Broker has not verified, and will not verify, any of the
information contained herein, nor has Broker conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential
purchasers must take appropriate measures to verify all of the information set forth herein.
Executive Summary 1
Location Overview 2
Aerial Photos 3
Property Photos 5
Financial Analysis 7
Demographics 9
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Alanis Group
SALE PRICE: $7,995,000
PRICE/UNIT: $257,903
PRICE/SF: $377
CAP RATE: 7.54%
NOI: $602,725
LOT SIZE: 3.69 Acres
BUILDING SIZE: 21,171 SF
YEAR BUILT: 1985
ZONING: C42
The investment is a boutique hotel with upside potential situated in the beautiful hills of North San Diego County. Tuscany Hills
Retreat is located in Escondido, CA right off of Interstate 15, just minutes from Temecula Valley Wine Country and the beaches in
Oceanside. The hotel consists of 6 rooms, 24 suites plus a 3 bed / 3 bathroom private owner’s villa with full kitchen and dining room.
Amenities include a restaurant, bar, conference/banquet facilities, a large pool and 4 cascading lounge pools. An ideal location for
weddings, corporate or church retreats, golf tournaments, a wellness center, or health spa retreat. Entitlements for 32 additional
units are included. The property is adjacent to an 18-hole Championship Golf Course with spectacular mountain views and in close
proximity to Golden Door - The #1 Destination Spa In The World. This property offers signiJcant upside available in untapped
opportunities to add value.
Property Overview
Demographics
1 Mile 5 Miles 10 Miles
Total Households 328 9,261 120,768
Total Population 883 25,598 368,284
Average HH Income $103,890 $97,426 $77,407
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Executive Summary
Tuscany Hills Retreat29850 Circle R Way, Escondido, CA , CA 92026
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bout the area
Tuscany Hills Retreat is located in North San Diego County off Interstate 15, minutes away from Temecula Valley Wine Country and the beaches in Oceanside. Interstate 15 is the principal arterial route connecting the Inland Empire with San Diego in California, and facilitating tourism access to Las Vegas. The City of Escondido lies about 18 miles inland, 30 miles northeast of Downtown San Diego, and 100 miles south of Los Angeles. Escondido is located 30 miles away from San Diego International Airport (SAN).
Escondido, CA has a vibrant and diverse community with a population of more than 144,831 people. Inland North San Diego County, of which Escondido is at the core, is emerging as a regional economic leader in the forefront of job development and new industries. The City of Escondido is home to major attractions, beautiful wineries, craft breweries, unique arts and culture, and a historic downtown. The San Diego Zoo Safari Park is one of the largest tourist attractions in San Diego County bringing in approximately 2 million visitors annually. The City's economic base is made up largely of successful small businesses, many of which are family-owned.
Escondido has received two 1st place (Award of Excellence) awards from the San Diego Chapter of the American Planning Association (SDAPA). The centerpiece of the City's redevelopment efforts is the California Center for the Arts, Escondido which attracts more than 270,000 visitors from San Diego and surrounding regions each year and provides a significant boost to an already healthy economy.
LOCATION OVERVIEW
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AERIAL VIEW
Circle R Dr.
Circ
le R
Way
Castle Creek Country Club 18-hole Golf Course
Wine Country
To Temecula
Castle Creek Country Club 18-hole Golf Course
To San Diego
To Beaches
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AERIAL VIEW
Circle R Dr.
Entitlements for 32 additional units
to be built here
Circ
le R
Way
10th Tee Castle Creek Country Club Castle Creek
Country Club
FINANCIAL ANALYSIS
Investment Overview PROFORMA
Price $7,995,000Number of Units 31Price per Room $257,903Approximate Square Footage 21,171Price per Square Footage $377CAP Rate 7.54%
Operating Data PROFORMA
Gross Operating Income $2,809,000Operating Expenses - $2,206,275Net Operating Income $602,725Debt Service - $336,513Pre-Tax Cash Flow $266,212Cash-on-Cash Return % (yr 1) 8.32%Principal Reduction (yr 1) + $98,909Total Return (yr 1) $365,121Return on Investment % 11.42%
Financing Data PROFORMA
Loan Amount $4,797,000LTV 60.00%Interest Rate 5.000%Debt Service $336,513Debt Service Monthly $28,042Amortization 25
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Financial Analysis
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Financial
Summary
FINANCIAL ANALYSIS
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Income & Expense
SummaryIncome Summary PROFORMA Per SF
Total Gross Rental Revenue Potential (Est. avg. $220/Night) $2,409,000 $113.79
Events (25 events @ $10K/Event) $250,000 $11.81
Other Income (Bar, Spa, Food, etc.) $150,000 $7.09
Total Rental Income Potential (Est. $220/Night) - -
Events ($10K/Event) - -
Gross Income $2,809,000 $132.68
Expense Summary PROFORMA Per SF
Vacancy (Estimated 25% of Rent) $602,250 $28.45
Property Taxes (1.14471% of Price) $96,155 $4.54
Insurance (Est. 4% of Gross) $112,360 $5.31
PIP (Product Improvement Plan: Est. 10K/Room) $300,000 $14.17
SDGE (Est. 7% of Gross) $196,630 $9.29
On-site Staff (Est. 25% of Gross) $702,250 $33.17
Maintenance & Reserves (Est. 4% of Gross) $112,360 $5.31
Marketing (Booking Est. 3% of Gross) $84,270 $3.98
Commissions (Booking Est. 3% of Gross) - -
Gross Expenses $2,206,275 $104.21
Net Operating Income $602,725 $28.47
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Income & Expenses
Tuscany Hills Retreat
29850 Circle R Way, Escondido, CA , CA 92026
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* Demographic data derived from 2010 US Census
Population 1 Mile 5 Miles 10 Miles
Total Population 883 25,598 368,284
Median Age 47.0 43.7 35.8
Median Age (Male) 46.2 42.6 34.7
Median Age (Female) 47.7 44.6 36.8
Households & Income 1 Mile 5 Miles 10 Miles
Total Households 328 9,261 120,768
# of Persons Per HH 2.7 2.8 3.0
Average HH Income $103,890 $97,426 $77,407
Average House Value $620,227 $606,535 $509,969
Race 1 Mile 5 Miles 10 Miles
% White 81.7% 80.0% 75.6%
% Black 0.7% 1.5% 2.0%
% Asian 6.3% 6.3% 5.5%
% Hawaiian 0.0% 0.0% 0.5%
% Indian 0.9% 1.2% 0.9%
% Other 5.1% 7.3% 12.1%
Ethnicity 1 Mile 5 Miles 10 Miles
% Hispanic 20.4% 22.8% 38.7%
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Financial AnalysisDEMOGRAPHICS
Tony Alanis Managing Director NNN Sales O: 415.7048794 M: 760.670.9472 [email protected] BRE #01854611
John Alanis Investment Advisor O: 510.206.6511 M: 408.607.7724 [email protected] BRE #02025307
Alanis Group
Tuscany Hills Retreat29850 CIRCLE R WAYEscondido, CA 92026
For more informationcontact:
