THE DEL MAR AVENUE APARTMENTS...4911-4917 DEL MAR AVENUE, SAN DIEGO, CA 92107 PROPERTY DESCRIPTION | 9 OFFERING MEMORANDUM Sale Price $3,495,000 LOCATION INFORMATION Building Name

T H E D E L M A R AV E N U EA PA R T M E N T S4 9 1 1 - 4 9 1 7 D E L M A R AV E N U E / SAN DIEGO, CA 92107

D E C E M B E R 0 1 , 2 0 2 0O F F E R I N G M E M O R A N D U M

T H E D E L M A R A V E N U E A PA R T M E N T S

TA B L E O F C O N T E N T S

I. PROPERTY INFORMATION 3

II. PROPERTY DESCRIPTION 8

III. LOCATION INFORMATION 12

IV. FINANCIAL ANALYSIS 17

V. DEMOGRAPHICS 22

ContentsConfidentiality & DisclaimerAll materials and information received or derived from ACRE Investment Real Estate Services,LLC its directors, officers, agents, advisors, affiliates and/or any third party sources are providedwithout representation or warranty as to completeness , veracity, or accuracy, condition of theproperty, compliance or lack of compliance with applicable governmental requirements,developability or suitability, financial performance of the property, projected financialperformance of the property for any party’s intended use or any and all other matters.

Neither ACRE Investment Real Estate Services, LLC its directors, officers, agents, advisors, oraffiliates makes any representation or warranty, express or implied, as to accuracy orcompleteness of the any materials or information provided, derived, or received. Materials andinformation from any source, whether written or verbal, that may be furnished for review are nota substitute for a party’s active conduct of its own due diligence to determine these and othermatters of significance to such party. ACRE Investment Real Estate Services, LLC will notinvestigate or verify any such matters or conduct due diligence for a party unless otherwiseagreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify allinformation and to conduct their own inspections and investigations including throughappropriate third party independent professionals selected by such party. All financial datashould be verified by the party including by obtaining and reading applicable documents andreports and consulting appropriate independent professionals. ACRE Investment Real EstateServices, LLC makes no warranties and/or representations regarding the veracity, completeness,or relevance of any financial data or assumptions. ACRE Investment Real Estate Services, LLCdoes not serve as a financial advisor to any party regarding any proposed transaction. All dataand assumptions regarding financial performance, including that used for financial modelingpurposes, may differ from actual data or performance. Any estimates of market rents and/orprojected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual andgovernmental limitations as well as market conditions,vacancy factors and other issues in orderto determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should bediscussed by the party with a certified public accountant or tax attorney. Title questions shouldbe discussed by the party with a title officer or attorney. Questions regarding the condition ofthe property and whether the property complies with applicable governmental requirementsshould be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by ACREInvestment Real Estate Services, LLC in compliance with all applicable fair housing and equalopportunity laws.

II | PROPERTY INFORMATIONA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S

2365 NORTHSIDE DRIVE STE 120 | SAN DIEGO, CA 92108WWW.ACRECOMMERCIAL.COM

C H R I S T O P H E R S A R V E R

619.255.6572

[email protected]

4 9 1 1 - 4 9 1 7 D E L M A R A V E N U E , S A N D I E G O , C A 9 2 1 0 7 P R O P E R T Y I N F O R M A T I O N | 4O F F E R I N G M E M O R A N D U M

OFFERING SUMMARY

Sale Price: $3,495,000

Number Of Units: 8

Price / Unit: $436,875

Price / SF: $553.88

Cap Rate: 3.72%

Building Size: 6,310

Lot Size: 0.16 Acres

Year Built: 1957

Market: Ocean Beach


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


ACRE is proud to present the Del Mar Avenue Apartments. An eight unit apartment community located halfa block from the ocean in the highly desirable neighborhood of south Ocean Beach. The property iscomprised of eight large 775 SF two bed/ one bath units on a 7,008 SF lot. Select units feature newwaterproof flooring, kitchens, granite countertops, new appliances, blinds, ceiling fans and fixtures. Currentrents are strong at a 3.72% cap rate; in addition there is 14%+ upside in rental income. Amenities include acommon area courtyard, on-site laundry and on-site parking.

This offering is ideal for the astute investor looking to purchase a rare coastal asset in one of San Diego’smost gentrifying beach communities. Due to the property’s close proximity to the beach, the investor willbenefit from both long-term appreciation and ability to maximize rental income.

PROPERTY OVERVIEW


I N V E S T M E N T O V E R V I E W


PROPERTY HIGHLIGHTS

• Rare Offering Half Block from the Beach in South Ocean Beach

• Excellent Unit Mix of All 2 Bed/ 1 Bath Units Averaging 775 SF

• 3.72% Cap Rate on Actual Current Rents

• Realistic 14%+ Upside in Rental Income

• Select Units Feature New Flooring, Kitchens, Granite Countertops, Appliances,

Blinds, Fans and Fixtures

• Common Area Courtyard, On-Site Laundry and On-Site Parking

• Less than Four Miles to the San Diego International Airport and less than Seven

Miles to Downtown San Diego

• Highly Gentrifying Beach Community


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



P R O P E R T Y P H O T O S

I II I | PROPERTY DESCRIPT IONA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.6572

[email protected]

4 9 1 1 - 4 9 1 7 D E L M A R A V E N U E , S A N D I E G O , C A 9 2 1 0 7 P R O P E R T Y D E S C R I P T I O N | 9O F F E R I N G M E M O R A N D U M

Sale Price $3,495,000

LOCATION INFORMATION

Building Name The Del Mar Avenue Apartments

Street Address 4911-4917 Del Mar Avenue

City, State, Zip San Diego, CA 92107

County San Diego

Market Ocean Beach

Sub-market South Ocean Beach

Cross-Streets Cable Street & Del Mar Avenue

PROPERTY INFORMATION

Property Type Multifamily

Property Subtype Low-Rise/Garden

APN # 448-152-10-00

BUILDING INFORMATION

NOI $130,145.00

Cap Rate 3.72%

Number of Floors 2

Year Built 1957

Free Standing No

PARKING & TRANSPORTATION

Number of Parking Spaces 5

UTILITIES & AMENITIES


P R O P E R T Y D E TA I L S

4 9 1 1 - 4 9 1 7 D E L M A R A V E N U E , S A N D I E G O , C A 9 2 1 0 7 P R O P E R T Y D E S C R I P T I O N | 1 0O F F E R I N G M E M O R A N D U M



4 9 1 1 - 4 9 1 7 D E L M A R A V E N U E , S A N D I E G O , C A 9 2 1 0 7 P R O P E R T Y D E S C R I P T I O N | 1 1O F F E R I N G M E M O R A N D U M



I I II I I | LOCATION INFORMATIONA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.6572

[email protected]

4 9 1 1 - 4 9 1 7 D E L M A R A V E N U E , S A N D I E G O , C A 9 2 1 0 7 L O C A T I O N I N F O R M A T I O N | 1 3O F F E R I N G M E M O R A N D U M

Ocean Beach is a quaint beach community located in Central San Diego and offers an array ofentertainment, restaurants, beautiful beaches, and attractions. Ocean Beach lies on the Pacific Ocean atthe estuary of the San Diego River, at the western terminus of Interstate 8. Located about 7 miles (11 km)northwest of Downtown San Diego, it sits south of Mission Bay and Mission Beach and directly north ofPoint Loma. The O.B. community planning area comprises about 1 square mile (742 acres), bounded onthe north by the San Diego River, on the west by the Pacific Ocean, on the east by Froude St., Seaside St.and West Point Loma Boulevard, and on the south by Adair Street.

LOCATION OVERVIEW DEMOGRAPHICS

1 MILE 2 MILES 3 MILES

Total Households 8,308 20,625 28,672

Total Population 17,530 45,682 65,371

Average HH Income $81,970 $88,119 $86,115


L O C AT I O N O V E R V I E W



R E G I O N A L M A P



L O C AT I O N M A P S


The Del Mar AvenueApartments


A E R I A L M A P

IVIV | F INANCIAL ANALYSISA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.6572

[email protected]

4 9 1 1 - 4 9 1 7 D E L M A R A V E N U E , S A N D I E G O , C A 9 2 1 0 7 F I N A N C I A L A N A L Y S I S | 1 8O F F E R I N G M E M O R A N D U M

UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF DEPOSIT

2 br / 1 ba 8 100.0 775 $2,169 $2.80 $2,450 $3.16 $0

Totals/Averages 8 100% 6,200 $17,352 $2.80 $19,600 $3.16 $0


U N I T M I X S U M M A R Y


INVESTMENT OVERVIEW CURRENT PRO-FORMA

Price $3,495,000 $3,695,000Price per Unit $436,875 $461,875GRM 16.79 15.71CAP Rate 3.72% 4.13%Cash-on-Cash Return (yr 1) 1.69 % 2.87 %Total Return (yr 1) $63,454 $88,467Debt Coverage Ratio 1.26 1.53

OPERATING DATA CURRENT PRO-FORMA

Gross Scheduled Income $208,200 $235,200Other Income $708 $708Total Scheduled Income $208,908 $235,908Vacancy Cost $6,246 $7,056Gross Income $202,662 $228,852Operating Expenses $72,517 $76,287Net Operating Income $130,145 $152,565Pre-Tax Cash Flow $26,564 $53,012

FINANCING DATA CURRENT PRO-FORMA

Down Payment $1,572,750 $1,847,500Loan Amount $1,922,250 $1,847,500Debt Service $103,581 $99,553Debt Service Monthly $8,631 $8,296Principal Reduction (yr 1) $36,890 $35,455


F I N A N C I A L S U M M A R Y


INCOME SUMMARY CURRENT PER SF PRO-FORMA PER SF

Gross Income $202,662 $32.12 $228,852 $36.27

EXPENSE SUMMARY CURRENT PER SF PRO-FORMA PER SF

Property Taxes $43,048 $6.82 $45,508 $7.21MGMT @ 5% $10,133 $1.61 $11,443 $1.81Repairs, Maint. & Reserves $6,800 $1.08 $6,800 $1.08Water and Sewer $5,820 $0.92 $5,820 $0.92Trash $2,916 $0.46 $2,916 $0.46Insurance $2,000 $0.32 $2,000 $0.32SDGE $1,800 $0.29 $1,800 $0.29

Gross Expenses $72,517 $11.49 $76,287 $12.09

Net Operating Income $130,145 $20.63 $152,565 $24.18


I N C O M E & E X P E N S E S


UNITNUMBER

UNITBED

UNITBATH

UNITSIZE (SF)

CURRENTRENT

MARKETRENT

MARKETRENT/SF

4911 2 1 775 $2,150 $2,450 $3.16

4911 1/2 2 1 775 $2,100 $2,450 $3.16

4913 2 1 775 $2,150 $2,450 $3.16

4913 1/2 2 1 775 $2,150 $2,450 $3.16

4915 2 1 775 $2,250 $2,450 $3.16

4915 1/2 2 1 775 $2,150 $2,450 $3.16

4917 2 1 775 $2,150 $2,450 $3.16

4917 1/2 2 1 775 $2,250 $2,450 $3.16

Totals/Averages 6,200 $17,350 $19,600 $3.16


R E N T R O L L

VV | DEMOGRAPHICSA C R E I N V E S T M E N T R E A L E S T A T E S E R V I C E S



619.255.6572

[email protected]

4 9 1 1 - 4 9 1 7 D E L M A R A V E N U E , S A N D I E G O , C A 9 2 1 0 7 D E M O G R A P H I C S | 2 3O F F E R I N G M E M O R A N D U M

1 MILE 2 MILES 3 MILES

Total population 17,530 45,682 65,371

Median age 33.8 35.2 34.6

Median age (male) 34.3 35.1 34.3

Median age (female) 33.3 35.5 35.2

Total households 8,308 20,625 28,672

Total persons per HH 2.1 2.2 2.3

Average HH income $81,970 $88,119 $86,115

Average house value $752,970 $723,116 $699,232

Total Population - White 16,038 41,297 58,081

% White 91.5% 90.4% 88.8%

Total Population - Black 360 924 1,587

% Black 2.1% 2.0% 2.4%

Total Population - Asian 462 1,147 1,897

% Asian 2.6% 2.5% 2.9%

Total Population - Hawaiian 27 152 295

% Hawaiian 0.2% 0.3% 0.5%

Total Population - American Indian 39 192 383

% American Indian 0.2% 0.4% 0.6%

Total Population - Other 157 539 990

% Other 0.9% 1.2% 1.5%

Total Population - Hispanic 1,573 4,808 8,468

% Hispanic 9.0% 10.5% 13.0%

* Demographic data derived from 2010 US Census


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

4 9 1 1 - 4 9 1 7 D E L M A R A V E N U E , S A N D I E G O , C A 9 2 1 0 7 D E M O G R A P H I C S | 2 4O F F E R I N G M E M O R A N D U M

POPULATION 1 MILE 2 MILES 3 MILESTotal population 17,530 45,682 65,371

Median age 33.8 35.2 34.6

Median age (male) 34.3 35.1 34.3

Median age (Female) 33.3 35.5 35.2

HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES

Total households 8,308 20,625 28,672

# of persons per HH 2.1 2.2 2.3

Average HH income $81,970 $88,119 $86,115

Average house value $752,970 $723,116 $699,232

ETHNICITY (%) 1 MILE 2 MILES 3 MILESHispanic 9.0% 10.5% 13.0%

RACE (%)White 91.5% 90.4% 88.8%

Black 2.1% 2.0% 2.4%

Asian 2.6% 2.5% 2.9%

Hawaiian 0.2% 0.3% 0.5%

American Indian 0.2% 0.4% 0.6%

Other 0.9% 1.2% 1.5%

* Demographic data derived from 2010 US Census


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

T H E D E L M A R AV E N U E A PA R T M E N T SC H R I S T O P H E R S A R V E R619.255.6572

[email protected]

Documents

THE DEL MAR AVENUE APARTMENTS...4911-4917 DEL MAR AVENUE, SAN DIEGO, CA 92107 PROPERTY DESCRIPTION | 9 OFFERING MEMORANDUM Sale Price $3,495,000 LOCATION INFORMATION Building Name