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FOR SALE Tuscany Hills Retreat Boutique Hotel | Value-Add Opportunity Alanis Group 29850 CIRCLE R WAY Escondido, 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

FOR SALE · 2018-08-21 · 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

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Page 1: FOR SALE · 2018-08-21 · 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

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

Page 2: FOR SALE · 2018-08-21 · 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

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

Page 3: FOR SALE · 2018-08-21 · 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

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

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ADITIONAL PHOTOS

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ADITIONAL PHOTOS

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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

Enter comments here...

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Financial Analysis

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Financial

Summary

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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

Page 12: FOR SALE · 2018-08-21 · 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

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: