NORTH PARK 3769 32nd STREET SAN DIEGO, CA 92104...Cap Rate 3.91% UNITS UNIT TYPE 6 1 Bdrm / 1 Bath 1 3 Bdrm / 2 Bath Twnhme 3969 Oregon St, San Diego, CA 92104 Sale Price $2,225,000

N O R T H P A R K

3769 32nd STREETSAN DIEGO, CA 92104

OFFERING MEMORANDUM

EXECUTIVE SUMMARY

Marcus & Millichap is pleased to present a rare 7 unit multifamily investment opportunity in North Park, one of San Diego’s highly preferred neighborhoods due to its prime location,

cultural diversity, and noticeable aggressive climb in growth.

3769 32nd Street is a 5,512 square foot complex sitting on a 6,255 square foot lot and offers an appealing unit mix of (6) spacious one bedroom / one bathrooms and (1) three bedroom

/ two bathroom townhome with an attached two car garage. In addition, the three bed-room townhome has been fully rehabbed and extensive interior/exterior renovations were also made to the property around 2012. Other attributes to attract desirable tenants in the

gated complex include granite counter tops, walk in closets, on-site parking, washer/dryer in the townhome unit, and coin operated laundry which aids in additional income.

3769 32nd Street’s irreplaceable location encapsulates the total North Park experience and Forbes has notably recognized North Park as one of the trendiest neighborhoods in San Di-ego. The subject property is located just 1 block from University Avenue and about 6 blocks away from the weekly North Park Farmer’s Market. The site is in an excellent demographic area with a 2017 daytime estimated population of 30,315 people and projected 2022 esti-

mated population of 48,585 in a one-mile radius.

In conclusion, the booming neighborhood adds to the future growth of the property’s in-come potential. The impact from these factors form a high-demand rental situation for any landlord and will undoubtedly continue to do so while potential residents value that they

are not just renting, but living exceptionally. The subject property currently sits at 100% oc-cupancy with under market rents and is an ideal value-add opportunity for an investor. With some standard enhancements to the remaining units, an investor could raise rents in one of

the highest demand rental markets in San Diego and maximize profit.

1

INVESTMENT HIGHLIGHTS

• Central North Park Location - Blocks Away From University Ave & 30th St

• Extensive Renovations Already Made To Property & 3 Bdrm / 2 Bath Twnhme Rehabbed

• Value-Add - Under Market Rents In A High Demand Area

• Off Street Parking & (1) Attached Two Car Garage

• Coin Operated Laundry & Secure Gated Access

• Low Maintenance

PROPERTY DESCRIPTION

# OF STORIES: 2

FOUNDATION: Slab

PARKING: Off Street + (1) Two Car Garage

LANDSCAPING: Minimal

TOPOGRAPHY: Flat

ROOF: Pitched

ELECTRIC: Tenant Pays

GAS: Tenant Pays

WATER: RUBS

ADDRESS: 3769 32nd St

LIST PRICE: $2,150,000

PRICE PER UNIT: $307,143

# OF UNITS: 7

BUILDING SIZE: 5,512 sq ft

LOT SIZE: 0.14 acres

APN: 446-491-05-00

ZONING: RM-2-5; RM-3-8

YEAR BUILT: 1979

# OF BUILDINGS: 1

2

$2,150,000 ASKING PRICE

$307,143PRICE PER UNIT

$390.06PRICE PER SF

INTERIOR PHOTOS: 3 BDRM / 2 BATH TWNHME3

INTERIOR PHOTOS: 1 BDRM / 1 BATH 3

1. Underbelly2. Dark Horse Coffee3. City Taco4. Belching Beaver5. Crazee Burger6. Breakfast Republic7. Urban Solace8. Waypoint Public9. North Park Beer Company10. Seven Grand

11. Encontro

12. Caffe Calabria

13. Coin Op

14. Mike Hess Brewing

15. Hammond's Gourmet Ice Cream

Restaurants, Bars, & CAfes

A Walker's ParadiseNorth Park, founded in the early 1900s, is a neighborhood in San Diego located northeast of Balboa Park. North Park is bounded by Lincoln Avenue to the north, Florida Street to the west, Switzer Canyon and South Park neighborhood to the South, and Interstate 805 and City Heights to the east.

North Park’s downtown area is marked by a large sign in the middle of University Avenue near 30th Street. Due to the bustle of this eclectic neighborhood, North Park has a high rate of pedestrian activity and hosts a mix of coffee houses, retail shops, art galleries and San Diego's up-and-coming restaurant row near University Avenue and 30th Street.

In recent years, North Park has been recognized by Forbes and the Los Angeles Times as one of the trendiest neighborhoods of San Diego. Forbes magazine says "culturally diverse North Park is home to Craftsman cottag-es, cafes and diners, coffee shops, several microbreweries, boutiques, and the North Park Farmers Market. The North Park Theater and the Ray Street Arts District are also bastions of creativity in the area.” “North Park has all the ingredients for the cool school: It's culturally diverse and has art galleries, boutiques, trendy bars with hand-crafted cocktails and local brews, and foodie-approved eateries” as stated in The Los Angeles Times.

1. The Observatory 2. Aloha Sunday3. Queen Bee's Art & Cultural Center4. The Irenic5. Pigment6. Hunt & Gather7. Simply Local8. Artlexia9. North Park Beer Company10. Bar Pink

Entertainment & shopping

1. Boulevard Fitness2. CorePower Yoga3. North Park Fitness4. Last Real Gym5. KOR Strength & Conditioning6. F45 Training North Park7. Club Pilates North Park8. Pilgram of the Heart Yoga9. TITLE Boxing10. North Park Brazilian Jiu Jitsu

fitness & recreation

1. Baron's Gourmet Market2. North Park Thursday Farmer's Market3. Vons4. North Park Produce5. Smart & Final6. CVS7. Pancho Villa8. Walgreens

grocery Stores & markets

3769 32ND ST

5 mile radius

92Walk Score

Walker's Paradise

54Good Transit

Nearby many publictransportation options

59Bike Score

Flat as a pancake

A Walker's Paradise

grocery Stores & markets

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of 2017 Marcus & Millichap. All rights reserved.

FINANCIAL ANALYSIS: PRICING DETAIL5

Price $2,150,000

Down Payment $1,075,000 / 50%

Number of Units 7

Price Per Unit $307,143

Price Per SqFt $390.06

Gross SqFt 5,512

Lot Size 0.14 Acres

Approx. Year Built 1979

#of Units

Unit Type Square Feet

Current Rents

Market Rents

6 1 Bdrm / 1 Bath 700 $1,319 $1,650

1 3 Bdrm / 2 Bath Twnhme

1,200 $2,700 $3,100

Cap Rate 3.91% 5.15%

GRM 16.88 13.78

Cash-on-Cash 1.75% 4.21%

Debt Coverage Ratio 1.29 1.69

Income Current Year 1

Gross Scheduled Rent $127,380 $156,000

Less: Vacancy/Deductions 3.0% $3,821 3.0% $4,680

Total Effective Rental Income $123,559 $151,320

Other Income $2,460 $2,460

Effective Gross Income $126,019 $153,780

Less: Expenses 33.2% $41,889 28.1% $43,138

Net Operating Income $84,130 $110,642

Cash Flow $84,130 $110,642

Debt Service $65,362 $65,362

Net Cash Flow After Debt Service 1.75% $18,767 4.21% $45,279

Principal Reduction $17,342 $18,139

Total Return 3.36% $36,110 5.90% $63,418

Expenses Current Year 1

Real Estate Taxes $25,148 $25,148

Insurance $2,880 $2,880

Utilities $4,740 $4,740

Repairs & Maintenance $3,150 $3,150

General & Administrative $300 $300

Management Fee $5,671 $6,920

Total Expenses $41,889 $43,138

Expenses/Unit $5,984 $6,163

Expenses/SF $7.60 $7.83

Loan Amount $1,075,000

Loan Type New

Interest Rate 4.50%

Amortization Period 30 Years

Year Due 2023

Summary

Current Year 1Returns

Financing 1st Loan

Unit Mix

Operating Data

FINANCIAL ANALYSIS: RENT ROLL6

UNIT UNIT TYPE SQ. FT. CURRENT RENT /MONTH

CURRENT RENT /SF / MONTH

POTENTIAL RENT /MONTH

POTENTIAL RENT / SF / MONTH

1 3 Bdrm / 2 Bath Twnhme 1,200 $2,700 $2.25 $3,100 $2.58

2 1 Bdrm / 1 Bath 700 $1,275 $1.82 $1,650 $2.36

3 1 Bdrm / 1 Bath 700 $1,350 $1.93 $1,650 $2.36

4 1 Bdrm / 1 Bath 700 $1,095 $1.56 $1,650 $2.36

5 1 Bdrm / 1 Bath 700 $1,350 $1.93 $1,650 $2.36

6 1 Bdrm / 1 Bath 700 $1,495 $2.14 $1,650 $2.36

7 1 Bdrm / 1 Bath 700 $1,350 $1.93 $1,650 $2.36

Total: 7 Approx. 5,512 $10,615 $1.93 $13,000 $2.36

SALES COMPS7

SUBJECT PROPERTY

3769 32nd St, San Diego, CA 92104

Sale Price $2,150,000

Close of Escrow 0n Market

Number of Units 7

Year Built 1979

Price/Unit $307,143

Price/SF $390.06

Cap Rate 3.91%

UNITS UNIT TYPE

6 1 Bdrm / 1 Bath

1 3 Bdrm / 2 Bath Twnhme

3969 Oregon St, San Diego, CA 92104


Close of Escrow 3/27/2018

Number of Units 7

Year Built 1981

Price/Unit $321,428

Price/SF $349.84

Cap Rate 2.44%

UNITS UNIT TYPE

6 1 Bdrm / 1 Bath

1 3 Bdrm / 2 Bath

13650 3rd Ave, San Diego, CA 92103



Number of Units 16

Year Built 1965

Price/Unit $324,218

Price/SF $301.60

Cap Rate 3.80%

UNITS UNIT TYPE

8 1 Bdrm / 1 Bath

7 2 Bdrm / 2 Bath

1 3 Bdrm / 2 Bath

2

SALES COMPS7

3650 3rd Ave, San Diego, CA 92103 3609-15 30th St, San Diego, CA 92104


Close of Escrow ON MARKET

Number of Units 5

Year Built 1960

Price/Unit $339,800

Price/SF $448.28

Cap Rate 3.41%

UNITS UNIT TYPE

3 1 Bdrm / 1 Bath

1 2 Bdrm / 1 Bath

1 3 Bdrm / 1 Bath

4147 Idaho St, San Diego, CA 92104



Number of Units 6

Year Built 1962

Price/Unit $279,166

Price/SF $366.04

Cap Rate 3.27%

UNITS UNIT TYPE

3 2 Bdrm / 1 Bath

2 1 Bdrm / 1 Bath

1 3 Bdrm / 1 Bath

44204 Campus Ave, San Diego, CA 92103



Number of Units 12

Year Built 1970

Price/Unit $300,000

Price/SF $470.96

Cap Rate 3.43%

UNITS UNIT TYPE

10 1 Bdrm / 1 Bath

2 2 Bdrm / 1 Bath

53

RENT COMPS8

SUBJECT PROPERTY

3769 32nd St, San Diego, CA 92104

Unit Type(6) 1 Bdrm / 1 Bath

(1) 3 Bdrm / 2 Bath Twnhme

Year Built 1979

Rent$1,275-1,495

$2,700

Approx. Sq. Ft.700

1,200

Comments

RehabbedSecure Gated Entry

Off Street Parking(1) Attached Two Car GarageWasher / Dryer In Townhome

Coin Operated Laundry

3106 Bancroft St, San Diego, CA 92104

Unit Type 3 Bdrm / 2 Bath

Year Built 1939

Rent $2,995

Approx. Sq. Ft. 1,125

Commments

Updated KitchenGranite Counters

Stainless Steel AppliancesW/D Hookups

Sundeck

14188 I l l inois St, San Diego, CA 92104


Year Built 1928

Rent $2,995

Approx. Sq. Ft. 1,048

Comments

Single Car GaragePrivate Back Yard

Stainless Steel AppliancesW/D In Unit

Granite Counters

2

RENT COMPS8

4188 I l l inois St, San Diego, CA 92104 3754 32nd St, #6, San Diego, CA 92104


Year Built 1987

Rent $1,575

Approx. Sq. Ft. 725

Comments

Coin Laundry On SiteOff Street Parking

Wood FlooringCustom Paint Throughout

White Cabinets

3662 32nd St, #2, San Diego, CA 92104


Year Built 1971

Rent $1,595

Approx. Sq. Ft. 650

Commments

Quartz CountersStainless Steel Appliances

Custom Cabinets(1) Assigned Parking Spot

Secured Gated Entry

42815 Howard Ave,#11 , San Diego, CA 92104


Year Built 1972

Rent $1,650

Approx. Sq. Ft. 732

Comments

Fully UpgradedShared LaundryPrivate Balcony

Off Street Parking

53

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 footage 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

Documents

NORTH PARK 3769 32nd STREET SAN DIEGO, CA 92104...Cap Rate 3.91% UNITS UNIT TYPE 6 1 Bdrm / 1 Bath 1 3 Bdrm / 2 Bath Twnhme 3969 Oregon St, San Diego, CA 92104 Sale Price $2,225,000