CORONADO ISLAND

SAN DIEGO BAY

SAN DIEGO INTERNATIONAL AIRPORT

BALBOA PARK

DOWNTOWN SAN DIEGO

FOR SALE

5 APARTMENT HOMES3767 THIRD AVENUESAN DIEGO, CA 92103

1 E X E C U T I V E S U M M A R Y

2 P R O P E R T Y D E S C R I P T I O N

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

4 F I N A N C I A L S

5 M A R K E T O V E R V I E W

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CBRE is pleased to offer for sale a fully renovated 5-unit residential community located at 3767 to 3773 Third Avenue in the heart of Hillcrest, the premier infill urban community of central San Diego. Along with new modern finishes, all units feature private laundry and garage parking. The property consists of 3 separate buildings featuring a spacious three-bedroom craftsman home in front and two duplexes behind, with four one-bedroom units.

With a walk score of 87, Hillcrest is one of San Diego’s most sought-after housing markets. The property is steps away from some of the county’s best restaurants, entertainment, shopping, employment, and transportation. The community features numerous convenient thoroughfares, allowing easy access to neighboring Downtown, Mission Valley, and Balboa Park, along with Interstate 5 and Highway 163.

O F F E R I N G O V E R V I E W

OFFERING PRICE: $1,945,000

PRICE PER UNIT: $389,000

PRICE PER SF: $559

CURRENT CAP RATE: 4.2%

MARKET CAP RATE: 4.5%

CURRENT GRM: 15.5

MARKET GRM: 14.7

HASH HOUSE

PAPPALECCO

FIG TREE CAFESNOOZE CAFE

LEMONADE

SALT & CLOVER

BABYCAKES

PARMA CUCINAEMPIRE HOUSE

MESS ROYALE

HILLCREST SANDWICH

FRESH CATCH

• Ideal location in the heart of Hillcrest

• All units completely renovated with high end modern finishes

• Units feature private laundry and garage parking

• Proximity to restaurants, entertainment, shopping, and employment

• Surrounded by Downtown, Balboa Park, and Mission Valley

• Convenient access to Highway 163 and Interstate 5

• Excellent mix of spacious floor plans

I N V E S T M E N T H I G H L I G H T S

LOCATED NEAR HIGHLY RATED RESTAURANTSOver 140 restaurants in Hillcrest and walkable from 3767 Third Avenue.

Residents are just blocks from some of the highest rated restaurants in the city.

STARBUCKS

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ADDRESS:3767-3773 Third Avenue San Diego, CA 92103

UNITS: 5 Apartment Homes

PARKING: 8 Spaces (5 garages & 3 Open)

BUILT: N/A – Multiple Years

APN: 452-063-18-00

RENTABLE AREA: 3,478 SF

LOT AREA: 6,874 SF

BUILDING: Three

ROOFS: Flat and Pitched

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

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ADDRESS YEAR BUILT UNITS BUILDINGS BUILDING SF LOT SF 1

BEDROOM2

BEDROOM3

BEDROOM SALE PRICE PRICE/UNIT PRICE/SF SALE DATE

3548 GEORGIA STREETSAN DIEGO N/A 10 1 7012 7405 7 3 0 $3,550,000 $355,000 $506 2/1/18

1650 MYRTLE AVENUESAN DIEGO 1960 8 1 6320 7421 4 4 0 $3,000,000 $375,000 $475 1/22/18

3558 5TH AVENUESAN DIEGO 1930 12 1 5959 10123 12 0 0 $4,000,000 $333,333 $671 12/14/16

1026 W SPRUCE STREETSAN DIEGO 1956 6 1 4218 143660 4 1 1 $2,400,000 $400,000 $569 11/17/17

3657 7th AVENUESAN DIEGO N/A 5 2 4600 6996 2 2 1 $2,194,000 $438,800 $477 1/4/17

AVERAGE 1943 29 10 2 $3,028,800 $380,427 $540

3767 THIRD AVENUESAN DIEGO (SUBJECT) N/A 5 3 3478 6874 4 0 1 $1,945,000 $389,000 $561

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

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© 2018 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified byeither CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such stepsas the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID: L09 MapId: 5351280

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3548 GEORGIA STREETSAN DIEGO

1650 MYRTLE AVENUESAN DIEGO

3558 5TH AVENUESAN DIEGO

1026 W SPRUCE STREETSAN DIEGO

3657 7TH AVENUESAN DIEGO

3767 THIRD AVENUESAN DIEGO (SUBJECT)

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3 7 6 7 T H I R D A V E N U E F I N A N C I A L S

I N V E S T M E N T S U M M A RYPRICE: $1,945,000

NUMBER OF UNITS: 5

PRICE PER UNIT: $389,000

PRICE PER SF: $559

CURRENT GRM: 15.5

MARKET GRM: 14.7

CURRENT CAP RATE: 4.2%

MARKET CAP RATE: 4.5%

YEAR BUILT: N/A - Multiple Years

LOT SIZE: 6,874

BUILDING SIZE: 3,478

S C H E D U L E D I N C O M E AC T UA L M A R K E TNUMBER OF UNITS BD/BA SF CURRENT RENTS MONTHLY INCOME MARKET RENT MONTHLY INCOME

3769 1/1 460 $1,750 $1,750 $1,850 $1,850

3771 1/1 460 $1,895 $1,895 $1,850 $1,850

3773 1/1 572 $1,795 $1,795 $1,950 $1,950

3773 1/2 1/1 572 $1,945 $1,945 $1,950 $1,950

3767 3/1 1340 $3,100 $3,100 $3,400 $3,400

MONTHLY GROSS INCOME: $10,485 $11,000

F I N A N C I A L S U M M A RY AC T UA L M A R K E TANNUAL GROSS INCOME: $125,820 $132,000

VACANCY: 3% ($3,775) 3% ($3,960)

EFFECTIVE GROSS INCOME: $122,045 $128,040

OPERATING EXPENSES:

REPAIRS & MAINTENANCE $4,250 $4,250

UTILITIES $3,035 $3,035

PROPERTY MANAGEMENT @ 6% $7,323 $7,682

LANDSCAPE $1,800 $1,800

PROPERTY INSURANCE $1,545 $1,545

PROPERTY TAXES $22,841 $22,841

OPERATING EXPENSES PER UNIT: ($8,159) ($8,231)

OPERATING EXPENSES AS % OF EGI: 33% 32%

TOTAL OPERATING EXPENSES: ($40,793) ($41,153)

NET OPERATING INCOME: $81,252 $86,887

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Located only a few miles north of San Diego’s bustling downtown, the vibrant uptown neighborhood of Hillcrest is on of San Diego’s central hubs, offering an array of bars, restaurants, coffee houses, boutiques and unique shops.

Lauded for its welcoming vibe and pedestrian-friendly streets and sidewalk patios, the area’s east end is marked by a colorful mix of ethnically diverse restaurants, nightclubs and acclaimed wine bars. You’ll also discover home decor shops, distinctive boutiques, the Uptown District shopping plaza and the Hillcrest Brewing Company. This lively stretch also hosts one of the largest farmers markets in San Diego from 9AM – 2PM on Sunday. A great place to shop for local produce, arts and crafts, the market also offers a wide range of gourmet stalls with hot and cold cuisine.

University Avenue leads into the neighborhood’s “village” area designated by the historic, neon “Hillcrest” sign. On intersecting Fifth Avenue, you’ll find a concentration of new and established restaurants, as well as a few dessert-centric eateries. Thrown into the mix are vintage clothing shops, book outlets and the multiplex Landmark Cinemas for taking in independent and foreign films.

Just south of Hillcrest sits Balboa Park, the largest urban cultural park in North America and a hub for recreation, arts and culture, and community gatherings. The park is home to 16 museums and performing arts venues, ornate Spanish-Renaissance architecture, 1,200 acres of beautiful gardens and the world-famous San Diego Zoo.

M A R K E T O V E R V I E WH I L L C R E S T – S A N D I E G O

R E G I O N A L M A P

Hillcrest is a small and affluent

neighborhood in central San Diego north

of Downtown, northwest of Balboa Park

and south of Mission Valley.

Hillcrest is known for its numerous

locally owned businesses, including

restaurants, cafés, bars, clubs, trendy

thrift-stores, and other independent

specialty stores. Hillcrest has a high

population density compared to many

other neighborhoods in San Diego.

Hillcrest is an older neighborhood which

has gone through gentrification. Many

streets are lined with trees. There are

Craftsman homes and Mid-Century

modern apartment buildings.

The neighborhood is bound by Mission

Hills to the northwest, Bankers Hill and

Balboa Park to the south, University

Heights to the north, and North Park

to the east. A large ridge overlooking

San Diego Bay borders the

neighborhood to the west.

Hillcrest is part of the Uptown

community planning area, which consists

of the neighborhoods of Mission Hills,

Hillcrest, Bankers Hill, Park West,

and University Heights.

Q U I C K FAC T S

H I L L C R E S T

H I L L C R E S T D E M O G R A P H I C S

Total Population 31,792

Male Population 16,521

Female Population 15,271

Percent Change Since 2000 6.6 %

Percent Change Since 2010 3.1 %

Median Age 39.28

White Collar 20,120

Blue Collar 7,634

Male Population

52%

Female Population

48%

White Collar

72.5%

Blue Collar

27.5%

Total Households 18,090

Family Households 5,342

Non-family Households 12,748

Households With Children 1,811

Households Without Children 16,279

Average People Per Household 1.72

No High School 599

Some High School 858

Some College 5,264

Associate Degree 1,920

Bachelors Degree 8,316

Graduate Degree 6,484

Family Households

29.5%

Non-family Households

70.5%

Some High School

3.7%Some College

22.5%Associate Degree

8.2%Bachelors Degree

35.5%

Graduate Degree

27.7%

P O P U L AT I O N D E M O G R A P H I C S N U M B E R O F H O U S E H O L D S

O C C U PAT I O N A L E M P LOY M E N T E D U C AT I O N S TAT I S T I C S

U C S D M E D I C A L C E N T E R - H I L L C R E S T

UC San Diego Health, located less than a mile from the property is

the only academic health system serving San Diego and one of two

Level 1 trauma centers in the region. The hospital in Hillcrest is the

primary hospital for the University of California and San Diego School

of Medicine. This hospital offers both primary and specialized services.

Currently there are approximately 2,000 employees at this hospital.

S C R I P P S M E R C Y H O S P I T A L

As the County’s longest established medical center, Scripps Mercy

Hospital is also less than a mile from Third Ave Apartments. This

hospital is the county’s largest, oldest and busiest hospital. Recently

renovated and expanded, Scripps Mercy Hospital in Hillcrest has 700-

beds and over 1,650 employees. All levels of care is provided including

a Level I trauma center.

H I L L C R E S T ’ S L A R G E S T E M P LOY E R S

E M P L O Y M E N T

AFFILIATED BUSINESS DISCLOSURE

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

DISCLAIMER

Copyright Notice © 2018 CBRE, Inc. All Rights Reserved.

INVESTMENT CONTACT

PHILIP BUCKLEY

Vice PresidentLic. 01209801+1 858 646 4706philip.buckley@cbre.com

CBRE, Inc Broker Lic. 00409987