HILLTOP CONDOS - LoopNet · 2020. 9. 17. · HILLTOP CONDOS OFFERING MEMORANDUM KIDDER MATHEWS 7 Kidder Mathews is pleased to present Hilltop Condos at Sienna Hills for sale in Escondido,

HILLTOP CONDOS51-UNIT CONDOMINIUM OFFERING145-225 W EL NORTE PKWY | ESCONDIDO, CA

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure 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. Kidder Mathews 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 the improvements thereon, or the 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

KIDDER.COM

CONTACTERIC COMER

[email protected] N° 00842230

JIM NEIL


MERRICK MATRICARDI


The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure 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. Kidder Mathews 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 the improvements thereon, or the 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

MERRICK MATRICARDI


JIM NEIL

[email protected] N° 0 1352736

ERIC COMER

[email protected] N° 00842230 KIDDER.COM

EXCLUSIVELY LISTED BY

01INVESTMENT SUMMARY

The OfferingInvestment HighlightsProperty Overview

02PROPERTY DESCRIPTION

Property SummaryAmenitiesFloor PlansMaps & Aerials

03FINANCIALS

Financial Summary

04COMPARABLES

Rent ComparablesSale Comparables

05MARKET OVERVIEW

Market SummaryTransportation

TABLE OF CONTENTS

5HILLTOP CONDOS OFFERING MEMORANDUM KIDDER MATHEWS

01INVESTMENT

SUMMARYTHE OFFERING

INVESTMENT HIGHLIGHTS

PROPERTY OVERVIEW

6 KIDDER MATHEWS OFFERING MEMORANDUM HILLTOP CONDOS


Kidder Mathews is pleased to present Hilltop Condos at Sienna Hills for sale in Escondido, CA.

THE OFFERING

Hilltop Condos consists of a bulk sale of 51-units in a 105-unit complex built in 1988. All units are two-bedroom, two-bath floorplans with fireplaces and in-unit washer and dryers. The property was highly renovated in 2006 and has numerous amenities including two swimming pools and spas, a fitness center, leasing office and beautifully landscaped grounds.

INVESTMENT SUMMARY

A future investor can enjoy low operating costs due to the age of construction and recent renovation. Further, the Home Owners Association is responsible for the maintenance of the exterior and common areas.

Hilltop Condos may be exempt from California's rent control law (AB1482) with proper tenant noticing and vesting.

Hilltop Condos is located in a convenient Escondido location with direct freeway access and proximity to convenient shopping and community amenities.

OFFERING OVERVIEW

Address 145-225 West El Norte ParkwayEscondido, CA 92026

No. of Units 51 Units

Price $13,950,000

Price Per Unit $273,529

Price Per Rentable SF $308

Cap Rate 4.4%

Market Cap Rate 4.7%

GRM 12.6

Market GRM 12.1

DESIRABLE UNIT MIX Hilltop Condos offers an ideal unit mix of all two-bedroom, two-bathroom units.

CONDOMINIUM EXIT STRATEGY The units are condominiums and can be sold individually. Alternatively, an investor may purchase other units that become available in the complex and increase their portfolio.

EXEMPT FROM RENT CONTROL (AB 1482) Condos are exempt from California's Tenant Protection Act and Rent Control law as long as they are not owned by a corporation or real estate investment trust. Investors are encouraged to consult with their attorney.

BUILDING AMENITIES WITH NO UPKEEP The property features two swimming pools, spa, fitness center, parking lot, landscaped grounds and a clubhouse, which are maintained by the HOA.

CONVENIENT TRANSPORTATION NETWORK The property has easy access to Interstate 15 and the 78 freeway. The Escondido Transit Center, served by the Sprinter Light Rail System, is less than two-miles from the subject. The property is walking distance to several bus lines.

CONVENIENT RETAIL Hilltop Condos are located just one block from the Del Norte Plaza Shopping Center, which is anchored by Von's, CVS, LA Fitness and Ross Dress for Less. Other convenient eateries and services are all within walking distance. CLOSE TO EMPLOYMENT CENTERS The subject has excellent proximity to Escondido's largest employers: Palomar Medical Center (3,045 employees), Escondido Union School (1,900 employees and Welk Group, Inc (1,000 employees).

NEARBY COLLEGES Palomar College & California State University San Marcos (CSUSM) are 10 minutes or less from subject.

LOCAL PARKS & RECREATION Family friendly location close to Grape Day Park, San Diego Children's Museum, library, Wild Safari Park and more.

PROPERTY STRENGTHS


ABILITY TO SELL CONDOS

There are four public reports for Hilltop Condos at Sienna Hills covering four phases. The 51 remaining units are in all four phases. To sell the units to individual buyers, all four public reports must be amended. A bulk sale will not require an amendment.

• It is not possible to do a new public report for the remaining 51 units;

• It is possible to combine the 4 existing reports into one public report but it will require a separate application for each of the 4 reports. Our recommendation is to renew each individually;

• There is a $600 filing fee for renewal of each of the four reports, total $2,400 in costs, they do not all need to be renewed at once;

• Fees for a DRE consultant are approximately $1600 for first Phase Renewal. Additional Phases can range from $200-$300 depending on when they are filed.

• Timing for obtaining amendments/renewals is 4 – 6 weeks from submission presuming no rejections.

The application must include a proposed form of purchase agreement, current HOA financials/budget & the latest reserve study.

POTENTIAL EXIT STRATEGY

HILLTOP CONDOS OFFERING MEMORANDUM KIDDER MATHEWS 9

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SUBJECT PROPERTY

LINCO

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GRAPE DAY PARK

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KW

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ESCONDIDO LIBRARY

ESCONDIDO HIGH SCHOOL

DEL DIOS MIDDLE SCHOOL

ICE-PLEX ESCONDIDO

ROCK SPRINGS ELEMENTARY

SCHOOL

LINCO

LN AV

E

PALOMAR MEDICAL CENTER

FARR ELEMTARY SCHOOL



02PROPERTY

DESCRIPTIONPROPERTY SUMMARY

AMENITIES

FLOOR PLANS

MAPS & AERIALS

PROPERTY DESCRIPTION

Property Address 145-225 West El Norte ParkwayEscondido, CA 92026

No. of Units 51 Units

APN 229-030-53 (parent parcel)

Square Feet Rentable: ± 42,254

Year BuiltBuilt in 1988 as 105 unit apartment community that was converted to condos in 2006

Building Configuration Two-story buildings with wood frame and stucco exterior

HOA HOA maintains all exteriors and pays for water, trash and sewer

MECHANICAL / ELECTRICAL / PLUMBING

HVACEach unit features an electric wall air conditioning unit. There are electric wall heaters.

Water Supply There is one commercial hot water heater for every two buildings.

Metering Separately metered for electric. Master metered for water and sewer.

Cooking Energy Electric

PROPERTY DESCRIPTION



SITE DESCRIPTION

Building Configuration: The site consists of 13 two-story garden style walk-up buildings. There are two small single story buildings with community amenities located adjacent to the swimming pool areas. The 51 units are dispersed throughout the entire site.

Construction: Garden style, wood frame with stucco exterior and a pitched, composition shingle roof

Access: Units have semi-private entry

Parking: The site consists of a combination of surface spaces, carports and detached single car garages. Parking is assigned 2 spaces per unit. There are 23 garages, 50 surface spaces and 29 carports assigned to the 51 units.

Condominium Potential:The property was converted to condominiums in 2006. The project has a Recorded Final Map, CC&Rs and Condominium Plans. There were four (4) marketing phases approved through the Department of Real Estate (DRE). The Subdivision Reports expired in 2011. However, it is our understanding that the Subdivision reports could be renewed within 60 days.

UTILITY SUMMARY

TYPE PROVIDER BILLING

Sewer City of Escondido Included in HOA Dues; Tenant Pays through RUBS

Water City of Escondido Included in HOA Dues; Tenant Pays through RUBS

Trash Escondido Disposal Included in HOA Dues; Tenant Pays through RUBS

Electric San Diego Gas & Electric Direct Bill; Tenant Pays

Gas San Diego Gas & Electric Included in HOA Dues

PROPERTY FEATURESTwo swimming pools and spas

Fitness center

Clubhouse

Courtyard setting

Covered parking with select units

Garages available with select units


SUBJECT PROPERTY

CENTRE CITY PK

WY

CENTRE CITY PKW

Y

W EL N

ORTE P

KWY

W EL NORTE PKWY



UNIT AMENITIESAir conditioning

Washer & dryer in unit

Wood burning fireplace

Private patio or balcony with extra storage

Ceiling fans

Walk-in closets*

Vaulted ceilings *

* In Select Units


FLOOR PLANS

SOLEIL

Unit TypeNo. of Units SF

Average Rent Rent/ SF

2 BD/2 BA 11 864 SF $1,780 $2.06/SF

CORTONA


Average Rent Rent/ SF

2 BD/2 BA 31 878 $1,805 $2.06/SF

BELLAMONTE


Average Rent

Rent/ SF

2 BD/2 BA 9 948 SF $1,895 $2.00/SF

KITCHEN

BATH

BATH

BEDROOM

WALK-INCLOSE T

DINING ROOM

LIVING ROOM

BEDROOM

CLOSE T

BALCONY/PATIO

LINEN

CLO

SET

BEDROOM

WALK-INCLOSE T

BATH

BATH

KITCHEN

DINING ROOM

LIVING ROOM BALCONY/PATIO

BEDROOMLINEN

CLOSE T

CLO

SE

T

BEDROOM

WALK-INCLOSE T

BATH

BATH

KITCHEN

DINING ROOM

LIVING ROOM BALCONY/PATIO

BEDROOMLINEN

CLOSE T

CLO

SE

TW/D

W/D

W/D

W EL NORTE PKWY

N E

SC

ON

DID

O B

LVD

N C

EN

TR

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ITY

PK

WY

N B

RO

AD

WA

Y



SITE PLAN

PHASE 1

PHASE 2

PHASE 3 PHASE 4

230

130

232132

231131

234134

235135

236136

237137

238

138

239139

240140

241

141

223123

222

122225125

226126

224124

227

127

229129

228

128

219119

217117

215115216

116

214114

212112

211111

210110

208108

209109

207107

205105

204104

202102

101

206106

203103

213113

220

120

218

118

221

121

242142

243

143

244144

245145

246146

248148

249149

250

150

251151

252152

253153

247147

Pool

Pool

Club House/ Sales

Entra

nce

Spa

Spa

WES

T EL

NO

RTE

PARK

WAY

233

133

UNITS BEING SOLD IN BULK UNAVAILABLE UNITS


03FINANCIALS

FINANCIAL SUMMARY

FINANCIAL SUMMARY FINANCIAL SUMMARYPrice $13,950,000

Price / Unit $273,529

Price / SF $308

Cap Rate 4.4%

Market Cap Rate 4.7%

GRM 12.6

Market GRM 12.1

INCOME SUMMARY Proforma

# Units Unit Type Sq. Ft. Total Sq.Ft. $ Rent $/Sq.Ft. Total Rent $ Mkt Rent Mkt Rent11 2bd/2ba 864 9,504 $1,780 $2.06 $19,580 $1,875 $20,62531 2bd/2ba 878 27,218 $1,805 $2.06 $55,955 $1,855 $57,5059 2bd/2ba 948 8,532 $1,895 $2.00 $17,055 $2,000 $18,00051 Total/Avg 887 45,254 $1,815 $2.05 $92,590 $1,885 $96,130

ANNUALIZED GROSS INCOME Proforma $1,111,080 $1,153,560Vacancy/Concessions 5.00% ($55,554) ($57,678)

ADJUSTED GROSS INCOME $1,055,526 $1,095,882 MTM Premium $200 $200 $200

Pet Fee $4,711 $4,711 $4,711NSF, Application, Late, Lease Break, Damages $20,000 $10,000 $10,000RUBS $55,495 $55,495 $55,495

T‐12 AugEFFECTIVE GROSS INCOME $1,100,666 $1,125,932 $1,166,288

Less Estimated Expenses: $/Unit T‐12 ProformaProperty Taxes 1.15011% $3,146 $160,440 $160,440Fixed Assessment $30 $1,512 $1,512HOA Dues $4,140 $211,140 $211,140Insurance $259 $13,200 $13,200

Controllable ExpensesAdministrative & Professional Fee $108 $5,527 $3,000Advertising $108 $5,522 $3,500Personnel $615 $31,390 $35,000Repairs & Maintenance $696 $35,519 $20,000Turnover $178 $9,088 $6,000Capital Improvements $1,577 $80,422 $10,000Pro Mgmt 3.5% $591 $30,127 $40,820Utilities $50 $2,575 $2,575

$586,462 $507,187Exp./unit: $11,499 $9,945 ($507,187) ($507,187)Exp/psf: $12.96 $11.21Exp. % of SGI: 53% 44%

NET OPERATING INCOME $618,745 $659,101

Amortized Debt CostsAmortization 30Rate 4.00%Debt Service $8,370,000 @ $479,516 $479,516CASH FLOW $139,229 $179,585

Return on Equity 2.50% 3.22%

No warranties or representations, expressed or implied, are made as to the accuracy of the information contained herein.

Expense notes

1. Property Taxes are reassessed at time of sale and are based on a millage rate of 1.15011% with a fixed assessment of $30/unit.

2. The HOA Dues include utility expenses of sewer, water and trash. Owner bills back utility expenses in monthly RUBS.

3. Actual income for NSF, Application, Late and Lease Break Fees and Tenant Damages was $20,000 trailing-12 August. This was reduced to $10,000 to reflect normalized operations.

4. Capital Improvements were reduced by $70,422 to account for higher than normal turnover with 34 units

5. Quotes for new property insurance from Falcon West

• CRC with United States Liability for annual premium $5783.00

• Liberty Mutual – Annual premium $5223.00

• RT Specialty with Maxum Indemnity Company - $4,376.71



04COMPARABLES

RENT COMPARABLES

SALE COMPARABLES


01 01

Subject HILLTOP CONDOS

01 ELAN RIVER VILLAGE

02 HIDDEN VALLEY VILLAS

03 SUMMER CREEK

04 REIDY CREEK

05 ALTA VISTA

Address 145-225 W. El Norte Pkwy 1845 N. Broadway 1141 N. Escondido 640 West Lincoln Avenue 1350 Morning View 1245 Morning View

City Escondido, CA 92026 Escondido, CA 92026 Escondido, CA 92026 Escondido, CA 92026 Escondido, CA 92026 Escondido, CA 92026

# of Units 51 123 27 156 344 102

Built 1986 Renov 2006 1988 1985 1987 1989 1999

1bd/1ba 59 76 162 24

Rent $1,550 $1,500 $1,615 $1,894

Avg SF 692 653 647 795

Rent/SF $2.24 $2.30 $2.50 $2.38

2bd/1ba 7

Rent $1,725

Avg SF 780

Rent/SF $2.21

2bd/2ba 51 64 20 (2bd/2.5ba TH) 80 162 76

Rent $1,780 - $1,898 $1,745 $1,875 $1,850 $1,670 $2,278

Avg SF 887 901 1,050 944 961 1006

Rent/SF $2.00 - $2.06 $1.94 $1.79 $1.96 $1.74 $2.26

Amenities

Swimming pool, spa, clubhouse, fitness center, landscaped grounds

Swimming pool, spa, basketball court, tennis court, playground, fitness center, picnic area, BBQ, fitness center

Swimming pool, landscaped courtyards

Swimming pool, spa, landscaped courtyards

Swimming pool, spa, clubhouse, tennis & volleyball court, fitness center, landscaped grounds

Swimming pool, spa, fitness center, landscaped grounds

Unit Amenities

Balcony or patio, fireplace, extra storage, granite countertops, stainless steel appliances, vaulted ceilings*

Fireplace, extra storage, balcony or patio, walk-in closets*

Fireplace, extra storage, balcony or patio, vaulted ceilings*

Recently renovated interiors. Balcony or patio, stainless steel appliances, walk-in closets & vaulted ceilings*

Balcony or patio, fireplace, extra storage, granite countertops, stainless steel appliances, walk in closest, vaulted ceilings*

Balcony or patio, extra storage, granite countertops, stainless steel appliances

LaundryWasher/Dryer In-Unit Common Laundry Washer/Dryer Hookups Common Laundry Washer/Dryer In-Unit Washer/Dryer In-Unit

Parking

Single car garages, carports and surface spaces

Carports and surface29 single car garages and surface spaces

Carports and surfaceSingle car garages, carports and surface spaces

Single car garages, carports and surface spaces

RubsYes - W/S/T Yes - W/S/T Yes - W/S/T Yes - $50 RUBS None Yes - W/S/T

* Select Units

Survey Date: 9/9/2020

RENT COMPARABLES


LEGEND

1. Elan River Village 2. HIdden Valley Villas3. Summer Creek4. Reidy Creek5. Alta Vista

RENT COMP MAP

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01

03

04

05

SUBJECT PROPERTY

EL NORTE PKWY

CO

UN

TR

Y C

LUB

DR

ROCK SPRINGS RD

VALL

EY P

KWY

AUTO PKWY

CENTR

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N A

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NT

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KW

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EL N

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PKWY


SALE COMPARABLES

Subject HILLTOP CONDOS

01 AVENUE SAN MARCOS

02 CARLSBAD VIEW

03 VISTA TERRACE

04 1010 CLEARBROOK

05SAGE VIEW

ADDRESS145-225 W El Norte Pkwy Escondido, CA 92026

506 E Barham Dr San Marcos, CA 92078

3675 Barnard Drive Oceanside, CA 92056

415 Plymouth Dr Vista, CA 92083

1010 Clearbrook Lane Vista, CA 92084

1920 E. Grand Ave Escondido

# OF UNITS 51 84 136 34 40 96

YEAR BUILT 1986 Renov 2006 1988 1975 1979 1977 1977

SALE DATE FOR SALE IN ESCROW 11/26/2019 8/23/2019 11/18/2019 4/17/2020

SALES PRICE $13,750,000 $26,000,000 (whisper price) $41,000,000 $10,500,000 $10,980,000 $24,315,328

PRICE/UNIT $264,423 $309,524 $301,471 $308,824 $274,500 $253,285

PRICE/SF $298 $386 $327 $325 $267 $461

NOI/Unit $12,132 $10,061 $11,848 $12,847 $12,517 not known

IN PLACE CAP 4.4% 3.25% 3.93% 4.20% 4.56% not known

IN PLACE GRM 12.6 13.71 14.2 not known 14.10 not known

UNIT MIX 51 - 2bd/2ba32 - 1bd/1ba 52 - 2bd/2ba

64 - 1bd/1ba 72 - 2bd/2ba

2 - 2bd/2ba 1 - 3bd/1ba 31 - 3bd/2ba

1 - Studio bootleg 1 - 2br/1ba bootleg 21 - 2br/1ba 17 - 2br/2ba

48 - 1bd/1ba 48 - 2bd/1ba

LAUNDRYWasher/Dryer In-Unit

Stacked (1Bd); Full-Size, Side by Side (2Bd) Common laundry facility Common laundry facility Common laundry facility Common laundry facility

AMENITIESSwimming pool, spa, clubhouse, fitness center

Swimming pool, spa, fitness center, tennis court

Swimming pool, spa, fitness center, clubhouse, business center, tennis Swimming pool, sundeck

Gated property, private garages, BBQ area, playground, hilltop location with views

Swimming pool, spa, clubhouse, tennis court

PARKING Single car garages, car-ports and surface spaces Surface and carport parking

Surface and carport parking


Single car garages and surface spaces


COMMENTS 51 condos in a 105 con-do development that was converted in 2006

Kidder Mathews Listing. Recent renovations to unit interiors and exterior.

Kidder Mathews Sale. Marketed and received 12 offers on the deal. Net price to seller was $39,400,000. Fully renovated in 2015.

2 non-conforming units. 28 units rehabbed at $30,000/unit. The seller also rehabilitated the exterior at a cost of approx $1 million.

Portfolio of two property portfolio sale. Total Sale price was $34,700,000 for 137 units. Sale Price is allocated on a per unit basis.


2

1

3

4

5

SUBJECT PROPERTY

SAN MARCOS

ESCONDIDO

VISTA

CARLSBAD

Lake San Marcos

Elfin Forest Recreational Reserve

Daley Ranch

San Pasqual Valley

N

LEGEND

1. Avenue at San Marcos2. Carlsbad View3. Vista Terrace4. 1010 Clearbrook5. Sage View

SALE COMP MAP

03

SUBJECT PROPERTY

PACIFIC OCEAN

02

04

0105


CONDO COMPSRECENT CONDO SALES IN SUBJECT PROPERTY

Addresss Bedroom Bathroom Sale Date SF Sale Price Sale Price/SF Days on Market List Price

145 W El Norte Parkway #116 2 2 8/31/2020 864 $309,000 $358 86 $300,000

225 W El Norte Parkway #241 2 2 6/10/2020 878 $315,000 $359 25 $329,900

145 W El Norte Parkway 204 2 2 FOR SALE 878 - - 5 $310,000

Average of Sold Units 2 2 871 $312,000 $359 55 $314,950


05MARKET

OVERVIEWESCONDIDO MARKET OVERVIEW

SAN DIEGO MARKET OVERVIEW


APARTMENT PERFORMANCE

Effective rent increased 0.4% from $1,660 in 1Q20 to $1,688 in 2Q20. The submarket's annual rent growth rate of 4.0% was above the market average of -0.3%. Out of the 13 submarkets in the market, the Escondido submarket ranked 2nd for quarterly effective rent growth and 1st for annual effective rent growth for 2Q20. Annual effective rent growth is forecast to be 4.8% in 2020, and average 4.4% through 2021 to 2023. The annual effective rent growth has averaged 4.5% per year since 2Q96.

The submarket's occupancy rate decreased from 96.6% in 1Q20 to 96.5% in 2Q20, and was down from 97.7% a year ago. The submarket's occupancy rate was above the market average of 95.8% in 2Q20. For the forecast period, the submarket's occupancy rate is expected to decrease to 96.4% in 2020 and average 97.5% from 2021 to 2023. The submarket's occupancy rate has averaged 96.3% since 2Q96.

CONSTRUCTION

Based on RealPage's identified supply of properties under construction, the submarket is expected to deliver 126 units in 2020 of which 94 have been delivered. Overall market deliveries increased from 3,479 units in 2019 to 3,822 in 2020, and the total is expected to rise to 5,099 units in 2021.

During the last 12 months, 2,134 units were absorbed in lease-up properties across the market with 48 of them in this submarket. The average absorption rate for lease-up properties in the market was 9 units per property, per month. The submarket's average absorption was slower at 8 units per property, per month. The submarket's average asking rent for new lease-up properties was $2,176 per unit, or $2.12 per square foot. When factoring in concessions, new lease-up properties in this submarket on average achieved an effective rent of $1,973 per unit, or $1.93 per square foot.

SOURCE: AXIOMETRICS

ESCONDIDO APARTMENT SURVEY

ESCONDIDO APARTMENT MARKET

3Q19 4Q19 1Q20 2Q20 2020F 2021F

Effective Rent Per Unit $1,651 $1,657 $1,681 $1,688 $1,701 $1,729

Per Sq. Ft $1.98 $1.98 $2.01 $2.02 $2.03 $2.07

Effective Rent Growth - Annually 3.4% 3.9% 4.4% 4.0% 4.8% 2.2%

Effective Rent Growth - Quarterly 1.8% 0.4% 1.4% 0.4%

Occupancy Rate 96.5% 96.2% 96.6% 96.5% 96.6% 96.7%

Occupancy Change - Annually -0.7% 0.0% 0.5% -0.6% 0.1% 0.7%

Occupancy Change - Quarterly -0.2% -0.3% 0.4% 0.0%

SOURCE: AXIOMETRICS 2Q2020

154,533

TOTAL ESCONDIDO POPULATION

25%

OF THE POPULATION HAS A BACHELOR'S DEGREE OR HIGHER

3.16

AVERAGE HOUSEHOLD SIZE

34

MEDIAN AGE

$86,137

AVERAGE HOUSEHOLD INCOME

46%W

RENTER -OCCUPIED UNITS

2 miN

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LARGEST EMPLOYMERS

No. Employer # of Employees

1 Palomar Hospital 2,659

2 Escondido Union School District 1,960

3 City of Escondido 842

4 Escondido Union High School District 842

5 Home Depot 350

6 Nordstrom 320

7 Toyota of Escondido 312

8 Vons 249

9 California Center for Arts 220

1

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3

4

5

6

7

8

9SUBJECT

PROPERTY

ESCONDIDO CITY HALL

DEMOGRAPHICS


NEARBY ACADEMIC INSTITUTIONCSU SAN MARCOS

More than 17,000 students currently attend the 304-acre campus. The university employs approximately 284 tenured faculty members. With only 1,500 undergraduates living on campus (less than 1% of total enrollment), there is a great demand for additional student housing surrounding the campus.CSU San Marcos campus master plan calls for an eventual enrollment of 30,000 by 2030.

PALOMAR COLLEGE

The main 200-acre campus of Palomar College is located in northern San Marcos. It is a public two-year community college and is a member of California Community Colleges. Palomar College enrolls approximately 30,000 full-time and part-time students. There is no student housing.

MIRA COSTA COLLEGE

The 121- acre facility offers associate degrees equivalent to the first two years of a bachelor's degree. Mira Costa also offers over 50 different certificates for students interested in short-term training in a specific career area. There is no student housing.

15

OCEANSIDE

VISTA

SAN MARCOS

ESCONDIDO

CARLSBAD

Lake Blvd

S Melrose D

r

E Mission Rd

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College/University Location # Employees # Students Driving Distance from Subject

CSU San Marcos San Marcos 2,780 17,000 4.9 mi

Palomar College San Marcos 1,545 30,000 6.7 mi

Mira Costa College Oceanside 1,274 14,773 15.5 mi

SUBJECT PROPERTY

CSU San Marcos

35HILLTOP CONDOS OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM APARTMENT BUILDING

ESCONDIDO MARKET OVERVIEW

Escondido has a unique feeling of authentic Old California because of its history, heritage and hometown appeal, while still possessing a feel of casual sophistication.

Located just 30 miles northeast of Downtown San Diego and 20 minutes from the coast, Escondido is home to major attractions, beautiful wineries, unique arts and culture, delicious culinary experiences and a charming historic downtown area.

The city occupies a shallow valley ringed by rocky hills. Incorporated in 1888, it is one of San Diego's oldest cities. The city has a total area of 37 square miles of land and a rapid growth rate with new communities popping up everywhere.

PALOMAR HOSPITAL

Located in Escondido, Palomar Medical Center is a 740,000 foot, 11-story hospital facility which opened in 2012. Considered as one of the country's largest hospital construction projects and first new North County hospital in 30 years, this hospital brought 3,000 jobs to the submarket in 2012. The facility has captured the attention of

healthcare professionals worldwide for its use of nature, light and space. Among the natural features is the 1.5-acre green roof that sits atop the second floor with vegetation for visitors to enjoy.

ATTRACTIONS

CALIFORNIA CENTER FOR ARTS

Situated on a 12-acre campus in Downtown Escondido, the California Center for Arts is a 12-acre campus comprised of 1,523-seat concert hall, a 406-seat center theater, a visual arts museum, art and dance studios and a conference center with meeting and banquet facilities. The center attracts more than one-million visitors through its visual arts presentations, conferences and educational programs. The center is known as the cultural center of North San Diego County.

SAFARI PARK

The San Diego Zoo Safari Park is an 1,800 acre wild animal park in Escondido. Considered as the largest attraction in San Diego, the park houses a large array of wild and endangered animals including species from continents of Asia, Europe, North and South America and Australia. The park is visited by 2-million people annually, houses over 2,600 animals representing more than 300 species, as well as 3,500 plant species.

LOCAL BREWERIES

In recent years, North County has seen an explosion of local craft breweries and tasting rooms. Escondido offers an array of breweries such as Plan 9 Alehouse, Little Miss Brewing, Stone Brewing & Gardens, and Escondido Brewing Company, just to name a few.

CALIFORNIA CENTER FOR ARTS THEATER

PALOMAR MEDICAL CENTER

COMPANIES HEADQUARTERED IN

SAN DIEGO

SAN DIEGO MARKET OVERVIEWSTRONG REGIONAL FUNDAMENTALS

Adding to the quality of life, San Diego has the third lowest average commute time in the U.S.

San Diego gained 72,000 degree holders in 2014 alone - more than any other major metro area in the country

Year-over-year, the region’s median home price continued to climb, growing by 2.6%

There are more than 25 incubators and accelerators in San Diego, lending themselves to the region’s small business ecosystem

San Diego is home to the fifth-best rated business community in the country, according to Forbes

The region’s unemployment rate was 3.5% in February, down from a revised 3.8% in January, and unchanged from the year-ago estimate of 3.5%

San Diego ranks second nationally in best return on investment in local public companies with the opportunity to compete for funding to enhance business development growth.

The largest employment gain over the year occurred in educational and healthcare services, which added 6,900 jobs

Tech footprint: Approximately 40 percent of all 2016 leasing transactions were made by tech firms

Per National Climatic Data Center, San Diego is ranked number 4 with number of sunshine hours per year

San Diego is the #1 most patent intense region in U.S., ranking third worldwide

San Diego has the highest concentration of life sciences lab space in the U.S. - more than San Francisco and Boston combined

Show me the money: In 2017, more than one-third of San Diego’s total VC investment - or $420 million - went to tech firms

Rated #1 in concentration of military/defense assets in the world

The only North American - city named among National Geographic’s “World Smart Cities” (2015)

80-plus educational and research institutes in the region

Ranked second, as America’s most playful cities according to Sperling’s

The backbone of San Diego’s economy: international trade, manufacturing, military and tourism


KIDDER.COM

EXCLUSIVELY REPRESENTED BY

ERIC COMER


JIM NEIL


MERRICK MATRICARDI


Documents

HILLTOP CONDOS - LoopNet · 2020. 9. 17. · HILLTOP CONDOS OFFERING MEMORANDUM KIDDER MATHEWS 7 Kidder Mathews is pleased to present Hilltop Condos at Sienna Hills for sale in Escondido,