INTRODUCING 2603 1071 26TH ST DUAL PROPERTY …...rents present significant upside for this dual property portfolio. Located between 25th and 30th St, the properties are centrally

OFFERING MEMORANDUM

2603 C ST & 1071 26TH ST | DUAL PROPERTY PORTFOLIOI N T R O D U C I N G

9 210 2 | G O L D E N H I L L

Marcus and Millichap is pleased to present a valuable dual property porfotlio, Marcus and Millichap is pleased to present a valuable dual property porfotlio, 2603 C St and 1071 26th St, and located in the Golden Hill neighborhood of San 2603 C St and 1071 26th St, and located in the Golden Hill neighborhood of San Diego, California. The two properties, totaling 9 units, rest on a combined lot size Diego, California. The two properties, totaling 9 units, rest on a combined lot size of 5,026 SF and boast a Walk Score of 82. Golden Hill continues to see meteoric of 5,026 SF and boast a Walk Score of 82. Golden Hill continues to see meteoric

growth as new developments expand from the Downtown Metro.growth as new developments expand from the Downtown Metro.

2603 C St is a five unit building comprised of (3) one bedroom / one-bathroom 2603 C St is a five unit building comprised of (3) one bedroom / one-bathroom units, (1) one bedroom / one-bathroom + den unit, and (1) studio unit. The building units, (1) one bedroom / one-bathroom + den unit, and (1) studio unit. The building was constructed in 1915 and has a basement containing (12) additional storage was constructed in 1915 and has a basement containing (12) additional storage

closets that generate additional income for the owner. 1071 26th St was closets that generate additional income for the owner. 1071 26th St was constructed in 1942 and is a four unit building comprised of (4) one-bedroom /constructed in 1942 and is a four unit building comprised of (4) one-bedroom /

one-bathroom units. Tenants enjoy (4) attached garages, off street parking, and on-one-bathroom units. Tenants enjoy (4) attached garages, off street parking, and on-site laundry. Six of the units have been upgraded with new finishes in thesite laundry. Six of the units have been upgraded with new finishes in the

kitchens and bathrooms as well as refurbished the cabinets/floors. Below market kitchens and bathrooms as well as refurbished the cabinets/floors. Below market rents present significant upside for this dual property portfolio. rents present significant upside for this dual property portfolio.

Located between 25th and 30th St, the properties are centrally located near the Located between 25th and 30th St, the properties are centrally located near the best thoroughfare in Golden Hill and South Park. Proximity to iconic Balboa Park best thoroughfare in Golden Hill and South Park. Proximity to iconic Balboa Park is a major attraction for prospective tenants. The 94, I-5, and I-15 freeways are is a major attraction for prospective tenants. The 94, I-5, and I-15 freeways are easily accessible from the property simplifying commutes. 26th & C St presents a easily accessible from the property simplifying commutes. 26th & C St presents a unique opportunity to acquire a property with significant potential to add value in unique opportunity to acquire a property with significant potential to add value in

one of San Diego's most up and coming locations. one of San Diego's most up and coming locations.

01E X E C U T I V E S U M M A R Y

a d u a l p r o p e r t y p o r t f o l i o

C E N T R A L LY LO C AT E D

N E A R S C H O O L S

B LO C K S F R O MB A L B O A PA R K

1 . 1 M I L E F R O M E A S T V I L L A G E

E A S Y A CC ES STO I - 5

02I N V E S T M E N T H I G H L I G H TS

Prime Golden Hill Location:Ideally located in the heart of

San Diego in one of the fastest gentrifying neighborhoods

Significant Rental Upside & Additional Stream of Other

Income

6 of 9 Units Upgraded: Refinished wood flooring and

upgraded kitchens and bathrooms

(4) Attached Garages, Off Street Parking, (12) Storage Spaces, & On Site Laundry

(4) Attached Garages & (12) Storage Spaces

03P R O P E R T Y D E S C R I P T I O N

Property Address 1071 26th St, San Diego, CA 921022603 C St, San Diego, CA 92102

Parcel ID 534-301-01-00534-302-29-00

Zoning RM-2-5

Number of Units 4 Units5 Units

Number of Buildings 2

Number of Stories 2 Stories Each Building

Year Built 1942 / 1915

Lot Size 0.07 acres / 3,015 sq ft 0.05 acres / 2,011 sq ft

Type of Ownership Fee Simple

Parking 4 Attached Garages

Laundry Shared On Site

CO N STR U CT IO N

Foundation Concrete Slab

Exterior Wood Frame

Parking Surface Concrete

Roof FlatPitched

UT I L I T I ES

UT I L I T Y PA ID BY

Water Landlord Pays

Electric/ Gas Tenant Pays

Trash City

10712 6 t h S T R E E T

2603C S T R E E T

04P R I C I N G D E T A I L

INCOME CURRENT PROFORMA

Gross Scheduled Rent $128,580 $167,400

Less: Vacancy/Deductions 3.0% $3,857 3.0% $5,022

Total Effective Rental Income $124,723 $162,378

Other Income $10,7401 $20,4002

Effective Gross Income $135,463 $182,778

Less: Expenses 39.5% $53,540 30.6% $55,906

Net Operating Income $81,922 $126,872

Cash Flow $81,922 $126,872

Debt Service $68,411 $68,411

Net Cash Flow After Debt Service

1.08% $13,511 4.68% $58,461

Principal Reduction $19,252 $20,096

Total Return 2.63% $32,763 6.29% $78,557

EXPENSES

Real Estate Taxes $28,080 $28,080

Insurance $2,680 $2,680

Utilities $7,367 $7,367

Repairs & Maintenance $5,400 $5,400

Contracted Services $1,440 $1,440

Operating Reserves $1,800 $1,800

Management Fee $6,773 $9,139

Total Expenses $53,540 $55,906

Expenses/Unit $5,949 $6,212

Expenses/SF $11.77 $12.29

RETURNS CURRENT PROFORMA

Cap Rate 3.41% 5.29%

GRM 18.67 14.34

Cash-on-Cash 1.08% 4.68%

Debt Coverage Ratio 1.20 1.85

PRICING SUMMARY

Price $2,400,000

Down Payment $1,272,000 / 52%

Number of Units 9

Price Per Unit $266,667

Price Per SqFt $527.47

Gross SqFt 4,550

Lot Size 0.12 Acres

Approx. Year Built 1915/1942

UNIT MIX

#of Units

Unit Type Sq Ft Current Rents

Market Rents

1 Studio 350 $995 $1,200

7 1 Br / 1 Ba 521 $1,220 $1,586

1 1 Br / 1 Ba = Den

550 $1,180 $1,650

FINANCING 1st LOAN

Loan Amount $1,152,000

Loan Type New

Interest Rate 4.30%

Amortization 30 Years

Year Due 2029

Notes :[1] Per Seller : Other income inlcudes laundry , garage, and s torage income[2] Storage at $50/mo for 12 uni ts Garages at $200/mo for 4 uni ts Workshop at $200/mo Laundry at $100/mo

05R E N T R O L L

CURRENT POTENTIAL

UNIT UNIT TYPE SQUARE FEET RENT/MONTH RENT/SF/MONTH RENT/MONTH RENT/SF/MONTH

1071 1 Bed / 1 Bath 575 $1,140 $1.98 $1,650 $2.87

1073 1 Bed / 1 Bath 575 $1,140 $1.98 $1,650 $2.87

1075 1 Bed / 1 Bath 575 $1,175 $2.04 $1,650 $2.87

1077 1 Bed / 1 Bath 575 $1,350 $2.35 $1,650 $2.87

Total 2,300 SF $4,805 $2.09 $6,600 $2.87

CURRENT POTENTIAL

UNIT UNIT TYPE SQUARE FEET RENT/MONTH RENT/SF/MONTH RENT/MONTH RENT/SF/MONTH

2603 1 Bed / 1 Bath 450 $1,285 $2.86 $1,500 $3.33

2605 1 Bed / 1 Bath + Den 550 $1,180 $2.15 $1,650 $3.00

2607 1 Bed / 1 Bath 450 $1,250 $2.78 $1,500 $3.33

2609 1 Bed / 1 Bath 450 $1,200 $2.67 $1,500 $3.33

2611 Studio 350 $995 $2.84 $1,200 $3.43

Total 2,250 $5,910 $2.66 $7,350 $3.28

2603C S T R E E T

10712 6 t h S T R E E T

10712 6 t h S T R E E T

2603C S T R E E T

Despite the views of San Diego Bay, downtown high

rises and, on a clear day, a mountain-framed Tijuana,

Golden Hill has sidestepped the lightning-speed

gentrification many other areas have undergone.

Outlined by the I-5, Highway 94 and Interstate

15, talk has circulated for nearly a decade that this

centralized locale is on the up-and-up. In the '90s, a

surge of graffiti-coated storefronts, gang violence and

ambling drug dealers branded Golden Hill as a no-

fly zone for many families. This rough patch opened

the door for real estate markets to create and sell

the idea of South Park as an affluent and safe option,

even though it's technically a subdivision of Golden

Hill. With a seamy reputation, Golden Hill's rent hung

lower than in other boroughs, attracting a working

class community of Latinos, musicians and artists. As

the neighborhood's grit continues to dissipate, more

businesses are committing to the area and squeezing

contemporary architecture in between iconic

Victorian, Colonial Revival and Craftsman originals.

With amicable neighbors and luge-worthy hills, the

neighborhood now sharply contrasts its prior self.

- SD City Beat

"GOLDEN HILL has sidestepped the lightning-speed gentrification

many other areas have undergone."

06T H E A R E A

SUBJECT PROPERTY26th & C St , San Diego , CA 92102

Sale Price $2,400,000

Close of Escrow 0n Market

Number of Units 9


Price/Unit $266,667

Price/SF $527.47

Cap Rate 3.41%

UNITS UNIT TYPE

1 Studio

7 1 Bdrm / 1 Bath

1 1 Bdrm / 1 Bath + Den

1301 28th St , San Diego , CA 92102


Close of Escrow 8/10/2018

Number of Units 7

Year Built 1929

Price/Unit $271,429

Price/SF $448.96

Cap Rate 2.80%

UNITS UNIT TYPE

6 1 Bdrm / 1 Bath

1 2 Bdrm / 1 Bath

12104-18 30th St, San Diego, CA 92104



Number of Units 7

Year Built 1950

Price/Unit $281,429

Price/SF $562.86

Cap Rate 3.66%

UNITS UNIT TYPE

7 1 Bdrm / 1 Bath

2

07s a l e c o m p s

06s a l e c o m p s

835-47 27th St , San Diego , CA 92102



Number of Units 8

Year Built 1959

Price/Unit $280,000

Price/SF $436.31

Cap Rate 4.96%

UNITS UNIT TYPE

1 1 Bdrm / 1 Bath

7 2 Bdrm / 1 Bath

2208-24 30th St , San Diego , CA 92104



Number of Units 9

Year Built 1922

Price/Unit $282,778

Price/SF $520.56

Cap Rate --

UNITS UNIT TYPE

8 1 Bdrm / 1 Bath

1 2 Bdrm / 1.5 Bath House

42470 B St , San Diego , CA 92102

Market Price $3,999,000

Close of Escrow UNDER CONTRACT

Number of Units 14

Year Built 1900

Price/Unit $285,643

Price/SF $409.69

Cap Rate 2.77%

UNITS UNIT TYPE

7 1 Bdrm / 1 Bath

3 Studio

4 2 Bdrm / 1 Bath

53

07s a l e c o m p s

06s a l e c o m p s

865 21st St , San Diego , CA 92102


Close of Escrow ON MARKET

Number of Units 8

Year Built 1926

Price/Unit $275,000

Price/SF $422.43

Cap Rate 2.42%

UNITS UNIT TYPE

8 1 Bdrm / 1 Bath

2566-78 B St , San Diego , CA 92102


Close of Escrow ON MARKET

Number of Units 5

Year Built 1941

Price/Unit $279,800

Price/SF $455.11

Cap Rate 4.43%

UNITS UNIT TYPE

1 Studio

2 1 Bdrm / 1 Bath

2 2 Bdrm / 1.5 Bath House

76

07s a l e c o m p s

06s a l e c o m p s

SUBJECT PROPERTY26th & C St , San Diego , CA 92102

Unit Type(1) Studio / 1 Bath

(1) 1 Bdrm / 1 Bath(1) 1 Bdrm / 1 Bath + Den


Rent$995

$1,220$1,180

Approx. Sq. Ft.350521

550

GOLDEN PACIFIC

1015 19th St , CA 92102

Unit Type 1 Bdrm / 1 Bath

Year Built 1989

Rent $1,865

Approx. Sq. Ft. 624

12840 C St , San Diego , CA 92102


Year Built 1984

Rent $1,650

Approx. Sq. Ft. 525

2

08r e n t c o m p s

GOLDEN VIEW APARTMENTS2331 E St , San Diego , CA 92102


Year Built 1925

Rent $1,650

Approx. Sq. Ft. 500

2776 B St , San Diego , CA 92102


Year Built 1985

Rent $1,700

Approx. Sq. Ft. 560

4 30TH ST COTAGES2990 B St , San Diego , CA 92102


Year Built 1941

Rent $1,795

Approx. Sq. Ft. 550

53

08r e n t c o m p s

1246 28th St , San Diego , CA 92102


Year Built 1936

Rent $1,550

Approx. Sq. Ft. 700

2875 A St , San Diego , CA 92102

Unit Type Studio

Year Built 1975

Rent $1,245

Approx. Sq. Ft. 400

71412 31st St , San Diego , CA 92102

Unit Type Studio

Year Built 1916

Rent $1,295

Approx. Sq. Ft. 450

86

08r e n t c o m p s

32nd Street32nd Street3232323232ndndndndnd Street Street Street Street Street

CONFIDENTIALITY AGREEMENT

ABSOLUTELY NO PROPERTY TOURS OR DISCUSSIONS WITH TENANTS WITHOUT WRITTEN CONSENT

The information contained in the following offering memorandum is proprietary and strictly

confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

it should not be made available to any other person or entity without the written consent of Marcus

& Millichap. By taking possession of and reviewing the information contained herein the recipient

agrees to hold and treat all such information in the strictest confidence. The recipient further agrees

that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no

interest in the subject property at this time, please return this offering memorandum to Marcus &

Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and

physical 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. Marcus & Millichap 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 foot- age of the property and

improvements, the presence or absence of contaminating substances, PCBs or asbestos, the

compliance with local, 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

offering memorandum has been obtained from sources we believe to be reliable; however, Marcus &

Millichap has not verified, and will not verify, any of the information contained herein, nor has

Marcus & Millichap 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.

Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

RAYMOND CHOISENIOR VICE PRESIDENT INVESTMENTS

DIRECTOR, NATIONAL MULTI HOUSING GROUP4660 LA JOLLA VILLAGE DR, STE 900, SAN DIEGO, CA 92122

858-373-3136 DIRECT | 858-735-6632 [email protected]

LICENSE: CA: 01297138

BENJAMIN SIERPINAASSOCIATE

4660 LA JOLLA VILLAGE DR, STE 900, SAN DIEGO, CA 92122858-373-3215 DIRECT | 480-440-3270 MOBILE

[email protected]: CA: 02062416

E X C L U S I V E LY L I S T E D B Y

Documents

INTRODUCING 2603 1071 26TH ST DUAL PROPERTY …...rents present significant upside for this dual property portfolio. Located between 25th and 30th St, the properties are centrally