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Offering Memorandum
Class-A Prime Escondido Investment Opportunity with 56 Units over Premium Retail Built in 2018
CITY PLAZA300-328 S. Escondido Blvd., Escondido, CA92025
Exclusively Listed By: Cindy ChinMBA | Broker | CIPS | CCREA | TRCResidential | Commercial | CalBRE #01921826Dir [email protected]
Disclaimer, Confidentiality & DisclosuresThis is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire toexpress further interest in the acquisition of:
300-328 S. Escondido Blvd., Escondido, CA92025 (“Property”).This Memorandum contains selected information pertaining to the Property and does not purport to be a representation ofthe state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information thatprospective investors may require to evaluate a purchase of real property. All financial projections and information areprovided for general reference purposes only and are based on assumptions relating to the general economy, marketconditions, competition, and other factors beyond the control of the Royal Global Group. Therefore, all projections,assumptions, and other information provided and made herein are subject to material variation. All references to acreages,square footages, and other measurements are approximations. Additional information and an opportunity to inspect theProperty will be made available to interested and qualified prospective purchasers. Neither the Owner nor Royal GlobalGroup, nor any of their respective directors, officers, affiliates, or representatives make any representation or warranty,expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legalcommitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents. The Ownerexpressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase theProperty, and/or to terminate discussions with any entity at any time, with or without notice which may arise as a result ofreview of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing thisMemorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of theProperty have been fully executed, delivered, and approved by the Owner and any conditions to the Owner’s obligationstherein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contentsare of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose thisMemorandum or any of its contents to any other entity without the prior written authorization of the Owner or Royal GlobalGroup. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to theinterest of the Owner or Royal Global Group. In this Memorandum, certain documents, including leases and other materials,are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions ofthe full agreements referenced. Interested parties are expected to review all such summaries and other documents ofwhatever nature independentlyand not rely on the contents of this Memorandum in any manner.If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return thisMemorandum to Royal Global Group.
CONTENT TABLEEXECUTIVESUMMARY
Portfolio HighlightsSummaryAerial PhotosMAPSProperty PhotosParcel Map
01
02 FINANCIAL ANALYSIS
Financial AnalysisUnit Mix & Rent Rates
03 MARKET ANALYSIS
City of EscondidoDemographics
PART ONEProperty Summary
CITY PLAZA | 300-328 S. Escondido Blvd.
Escondido CA— We are pleased to announce the offering of City Plaza; a four stories mixed-use building for 56 apartments units and 9,255 gross commercial square feet. City Plaza is located on the southeast corner of West 3rd Street and South Escondido Boulevard in Escondido, CA 92025. The property is situated on 0.8 acres, the gross rentable residential area is 73,472 square feet and includes 126 parking spaces.
City Plaza is within walking distance to public transit, retail, restaurants, schools and parks. Big box retailer such as Target, TJ Maxx, Ross and Regal Cinemas are less than a mile from the complex and the Westfield North County Shopping Mall is within four-miles from the property. The Escondido Transit Center is located less than half a mile away which is served by the Sprinter. The Sprinter Rail line is an east to west mobility link between Oceanside, Vista, San Marcos and Escondido as well as connects to the Coaster & Amtrak Rail Line in Oceanside.
Executive Summary
13,000 average daily traffic count
Great corner on high traffic thoroughfare
Close to downtown Escondido, 2 blocks south of Grand Ave.
Built-in clientele with adjoining 56 high-end apartments
Lower level parking garage
Affordable rents, strong identity
Property Highlights
CINDY CHIN Dir 949.698.0117 [email protected]
Demographics for Escondido:
Pop (2010) Pop (2016) AHH Income1 mile $ 25,989 $ 28,384 $ 53,503 2 mile $ 136,966 $ 145,481 $ 68,097
3 mile $ 193,685 $ 206,158 $ 76,729
Summary
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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
Purchase Price
Year Built
Gross Rentable Residential Area
Assessor’s Parcel Number
Number of Units
Unit Mix
Parking
Walk Score
Gross Rentable Commercial Area
Implied Market Cap Rate
Market Value
$21,980,000
$24,523,000
5.00%
2018
73,472 SF
9,255 SF
34,848 SF
233-142-14-00
56 Units
(8) 1B1B +(3) 2B1B +(45) 2B2B
126 Spaces
91 out of 100
53 out of 100
Lot Size
Transit Score
CITY PLAZA | 300-328 S. Escondido Blvd.CINDY CHIN Dir 949.698.0117 [email protected]
Local Map
CITY PLAZA
CITY PLAZA | 300-328 S. Escondido Blvd.CINDY CHIN Dir 949.698.0117 [email protected]
Property Photos
CITY PLAZA | 300-328 S. Escondido Blvd.CINDY CHIN Dir 949.698.0117 [email protected]
CITY PLAZA | 300-328 S. Escondido Blvd.
Property Photos
CINDY CHIN Dir 949.698.0117 [email protected]
CITY PLAZA | 300-328 S. Escondido Blvd.
Property Photos
CINDY CHIN Dir 949.698.0117 [email protected]
CITY PLAZA | 300-328 S. Escondido Blvd.
Property Photos
CINDY CHIN Dir 949.698.0117 [email protected]
CITY PLAZA | 300-328 S. Escondido Blvd.
Property Photos
CINDY CHIN Dir 949.698.0117 [email protected]
CITY PLAZA | 300-328 S. Escondido Blvd.
Property Photos
CINDY CHIN Dir 949.698.0117 [email protected]
CITY PLAZA | 300-328 S. Escondido Blvd.
Property Photos
CINDY CHIN Dir 949.698.0117 [email protected]
CITY PLAZA | 300-328 S. Escondido Blvd.
Property Photos
CINDY CHIN Dir 949.698.0117 [email protected]
PART TWOFinancial Analysis
Financial Analysis - Summary
CITY PLAZA | 300-328 S. Escondido Blvd.CINDY CHIN Dir 949.698.0117 [email protected]
Unit Type # of Units Avg Unit Size Avg Rent Rate Rent/SF Total SF Monthly RentMultifamily 56 1,312 1,872$ 1.86$ 73,472 136,506$
Retail 6 1,543 1,925$ 1.55$ 9,255 14,345$ 82,727 150,851$
Other / Misc. 50.00$ 2,800$ Gross Monthly Revenue 153,651$
Annual Revenue 1,843,812$ Vacancy 5% (92,191)$ Effective Annual Income 1,751,621$
Operating Expense 30% (525,486)$
Annual NOI 1,226,135$
Total Value @ Stabilization 5.00% 24,522,700$
Operating Proforma
Cash on Cash (Post Perm Loan)NOI (year 5) 1,406,989$ Debt Service (P&I) (1,062,659)$ Net Cash Flow 344,329$ Cash on Cash Return (P&I loan @ mo. 60) 7.36%Yield on Cost 4.97%
PART THREEMarket Overview
Market Overview
Settled in a long valley in the coastal mountains of Southern California, Escondido, which means "hidden" in Spanish, lies about 18 miles inland, 100 miles south of Los Angeles, and 30 miles northeast of San Diego. Surrounded by avocado and citrus groves, Escondido is a diverse, vibrant community with just the right mix of small town friendliness and big-city buzz.
More and more people are making Escondido their "City of Choice." As the heart of San Diego North, it is one of the few remaining communities where people of all income levels can enjoy the Southern California lifestyle. There are attractive homes in a wide range of prices, two lakes, several parks, a sports center, golf courses, restaurants, wineries, shopping centers, comprehensive healthcare and the nearby San Diego Zoo Safari Park. In addition, the California Center for the Arts, Escondido, brings world class entertainment to the area along with Queen Califia's Magical Circle, a sculpture garden in Kit Carson Park donated by late internationally renowned artist Niki de Saint Phalle. In recent years Escondido was named by Money Magazine as the Best Place in the West in which to retire and, at the other end of the spectrum, was named a Kid-Friendly City for our broad range of youth programs. Ladies Home Journal also ranked Escondido number eight among the Top Ten Cities for Government.
CITY PLAZA | 300-328 S. Escondido Blvd.CINDY CHIN Dir 949.698.0117 [email protected]
With a beautiful year-round climate, Escondido is the heart of northern San Diego. Rich in history and culture, there are many attractions and experiences to explore. We’re home to the California Center for the Arts, Escondido, a unique visual and performing arts complex and museum; the San Diego Zoo Safari Park, an expansive wildlife sanctuary; the amazing sculpture garden, Queen Califia’s Magical Circle, created by the late world-acclaimed artist Niki de Saint Phalle; the San Diego Children’s Discovery Museum; and Daley Ranch, a wilderness preserve with extensive hiking, biking and equestrian trails… as well as equestrian trail riding at The Ranch at Bandy Canyon and exploring 10,000 years of San Diego history at the San Diego Archaeological Center.This wonderfully unique area also presents many other activities… enjoying a round of golf at one of six golf courses, fishing or picnicking at three lakes, cycling on Palomar Mountain, browsing through downtown art galleries or shopping at world-class retail stores and the largest Auto Park in Southern California. Enjoy a stroll or bike around our beautiful Old Historic District. You can also play at one of several nearby casino resorts!
Attractions
CITY PLAZA | 300-328 S. Escondido Blvd.
Market Overview
CINDY CHIN Dir 949.698.0117 [email protected]
There are two highways serve Escondido: Route 78 and Interstate 15. Route 78 enters from the west as a freeway which ends at Broadway. The highway follows surface streets and leaves the city heading east into the San Pasqual Valley.
The Sprinter light rail line links the transit center to Oceanside using the existing 22-mile (35 km)-long Escondido Branch trackage of the San Diego Northern Railroad. The rail line opened in 2008, making Escondido one of the first cities in the United States to operate Desiro-class diesel multiple units manufactured by Siemens in Germany. At the Oceanside Transit Center, the Sprinter connects to threecommuter rail lines (the Coaster, the Metrolink Orange County Line, and the Metrolink Inland Empire-Orange County Line) and Amtrak's Pacific Surfliner regional rail line.
The California High Speed Rail Authority listed Escondido as a stop along the proposed high-speed rail system running from Southern to Northern California.
Convenient Transportation
CITY PLAZA | 300-328 S. Escondido Blvd.
Market Overview
CINDY CHIN Dir 949.698.0117 [email protected]
Escondido Demographics and Housing Trends
CITY PLAZA | 300-328 S. Escondido Blvd.
Market Overview
CINDY CHIN Dir 949.698.0117 [email protected]
Escondido Demographics and Housing Trends
CITY PLAZA | 300-328 S. Escondido Blvd.
Market Overview
CINDY CHIN Dir 949.698.0117 [email protected]
Purchase Price
$ 21.98 M
Market Value
$ 24.5 MUnits
5.00%
Built in2018
Gross Rentable Residential
Area
73,472 SF
Gross Rentable Commercial
Area
9,255 SF
Lot Size34,848 SF
Implied Market Cap
Rate
56
126Parking Spaces
Parcel #233-142-
14-00
Summary
CITY PLAZA | 300-328 S. Escondido Blvd.CINDY CHIN Dir 949.698.0117 [email protected]
Contact For More Information
Class-A Prime Escondido Investment Opportunity with 56 Units over Premium Retail Built in 2018
CITY PLAZA300-328 S. Escondido Blvd., Escondido, CA92025
Exclusively Listed By: Cindy ChinMBA | Broker | CIPS | CCREA | TRCResidential | Commercial | CalBRE #01921826Dir [email protected]
