coastal mixed use opportunity
COASTAL MIXED USE OPPORTUNITY 1918-1920 S. COAST HIGHWAY, OCEANSIDE, CA 92054
VICTORIA ROBINSON
CURT ALLEN
Vice President | Lic. # 01381460 858.458.3324 | [email protected]
Senior Associate | Lic. # 01959536 858.458.3365 | [email protected]
FOR SALE $2,500,000
1918-1920 S. Coast Hwy 1917 S. Freeman St
TABLE OF CONTENTS I. PROPERTY Property Overview................................................................................................. 4 Investment Summary............................................................................................. 5
II. MARKET Nearby Amenities.................................................................................................. 6
SITE
Market Overview................................................................................................... 7
III.
SALE/RENTAL COMPARABLES Sale Comparables................................................................................................. 8 Rental Comparables.............................................................................................. 9
VICTORIA ROBINSON
Vice President | Lic. # 01381460 858.458.3324 | [email protected]
CURT ALLEN
Senior Associate | Lic. # 01959536 858.458.3365 | [email protected]
4747 Executive Dr., Suite 800, San Diego, CA 92121 • 858.453.0505 • 858.408.3976 Fax • Lic #01333376 | www.voitco.com Licensed as Real Estate Brokers and Salesperson by the CA Bur of Real Estate. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. Any financial analysis and/or valuation is the opinion of VRES and should not be considered an appraisal, nor has VRES followed the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. The source of this valuation and/or analysis is not to be disclosed without VRES’s prior written consent. ©2015 Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions.® is a registered trademark of Voit Real Estate Services.
PROPERTY OVERVIEW PROPERTY INFORMATION We are pleased to offer a great coastal investment opportunity located at 1918-1920 South Coast Hwy and 1917 South Freeman Street. These properties are located in the heart of South Oceanside on South Coast Hwy, just blocks from Carlsbad and the Village of Carlsbad, which presents an investor with upside rental potential and coastal influence.
The ±2,400 SF commercial building located on South Coast Hwy consists of 10 retail/office executive suites, including an ADT security system along with WIFI installed. The building has been recently renovated with modern colors, textures, and finishes. The 4 apartment units with access from South Freeman Street feature 3 one bedroom one bath units, and 1 two bedroom one bath unit. All 1 bedroom / 1 bath units have recently been remodeled and show a significant upside in rental potential.
PROPERTY FEATURES ADDRESS
1918-20 S Coast Highway & 1917 S Freeman Street, Oceanside, CA 92054
SUBMARKET
Oceanside Retail
PROJECT SIZE
±4,351 SF
LAND AREA
0.28 AC / 11,996 SF
YEAR BUILT
1965
PARCEL NUMBER
153-273-27
CURRENT RENTAL INCOME FOR THE APARTMENTS »»2bed/1bath – Current $1,325 - Market Rent $1,800 »»1bed/1bath – Current $1,500 »»1bed/1bath – Current $1,375 - Rental Increase to $1,500 February 1, 2016 »»1bed/1bath – Current $1,375 - Rental Increase to $1,500 February 1, 2016
POTENTIAL COMMERCIAL BUILDING INCOME »» 10 retail/office suites – Market $1,000/suite
Apartment Garages
INVESTMENT SUMMARY # UNITS 4 Apts 10 Suites
ADDRESS 1918-1920 S Coast Hwy
PRICE
$/UNIT
$2,500,000
$178,571 INCOME DETAIL TYPE RENT
TOTAL
2Br/1Ba 1Br/1Ba
$1,325 $1,500
$1,325 $4,500
Office Suites
$0
$0
# UNITS CURRENT 1 3 10 Laundry & Misc Inc. Total Monthly Income
$0 $5,825
MARKET 1 3 10
2Br/1Ba 1Br/1Ba
$1,800 $1,575
$1,800 $4,725
Office Suites
$1,000
$10,000
Laundry & Misc Inc. TOTAL MONTHLY INCOME ESTIMATED ANNUAL OPERATING PROFORMA Gross Scheduled Income Less: Vacancy Factor Gross Operating Income Less: Expenses NET OPERATING INCOME
3% 23%
CITY Oceanside
ZIP 92054
$/SQUARE FOOT (APPROX.) $574.58
GROSS SQ. FT. (APPROX.) 4,351
NAME South Oceanside
YEAR BUILT 1965
PARCEL SIZE 11,996
MARKET GRM 12.6
MARKET CAP RATE 5.9%
ESTIMATED ANNUAL OPERATING EXPENSES
Advertising Gas & Electric Water & Sewer Landscaping Insurance Legal/Accounting Trash Removal Maintenance & Repairs
$0 $360 $4,800 $1,560 $3,500 $0 $1,176 $1,200
Management (Off Site) Management (On Site) Licenses & Fees Miscellaneous Supplies Pool Pest Control Taxes (New)
$3,495 $0 $1,000 $500 $250 $0 $720 $27,500
TOTAL ANNUAL OPERATING EXPENSES
$46,061
EXPENSES PER:
$10.48 $11,395 23%
EST. SQ. FT. UNIT % OF GSI
$50 $16,575 FINANCING SUMMARY MARKET $198,900 $5,967 $192,933 $46,061 $147,352
Less: 1st TD Payments
($99,653)
PRE-TAX CASH FLOW CASH ON CASH RETURN
$47,699 6%
PROPOSED FINANCING: DOWN PAYMENT:
$1,750,000
INTEREST RATE:
3.95%
$750,000 30%
SOUTH COAST HIGHWAY
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MARKET OVERVIEW
San Diego’s North beach community of Oceanside is a classic California beach community with its warm sandy beaches, historic wooden pier and Cape Cod-style harbor village complete with unlimited water sports and recreation. A beautiful seaside community centrally located between Los Angeles and San Diego, Oceanside offers sun, surf, and a family-friendly relaxed and leisurely pace. Oceanside boasts easy access to Disneyland, Knott’s Berry Farm and Universal Studios to the north; San Diego Zoo and Mexico to the south; and San Diego Zoo Safari Park to the east. Oceanside provides train services on Amtrack, Metrolink, Coaster, and Sprinter to easily access top destinations.
SOUTH COAST HIGHWAY
LEASE COMPARABLES ADDRESS
SF LEASED TYPE 100 SF New Direct
START DATE TERM July 2014 3 Years
STARTING RENT EFFECTIVE RENT $60.00/NNN
1930 S Coast Highway 101
462 SF New Direct
April 2011 1 Year
$18.00/NNN
606 Cassidy Street
400 SF New Direct
April 2010 5 Years
$24.00 + Util $25.44 + Util
1922 S Coast Highway
450 SF New Direct
July 2007 1 Year
$18.84/NNN
514 Oceanside Blvd
RENTAL COMPARABLES ADDRESS
RENT/MONTH
UNIT
212 Oceanside Boulevard Oceanside
$1795
2/1
1910 Broadway Oceanside
$1725
2/1
1910 Broadway Oceanside
$1450
1/1
450 Morse Street Oceanside
$1300
1/1
SOUTH COAST HIGHWAY
OCEANSIDE DEMOGRAPHICS DEMOGRAPHICS 1 Mile
3 Miles
5 Miles
Population (2015)
10,234
78,577
139,342
Projected Population (2020)
18,773
69,919
144,557
Families
3,726
15,197
33,466
Average Household Size
2.58
2.57
2.54
Median Age
32.9
29.9
33.2
Average Household Income
$54,303
$67,172
$75,159
Median Household Income
$57,577
$54,617
$54,797
TRAFFIC COUNTS
QUICK STATS / 5 MILE RADIUS (2015) 350,135 Residents
72%
are over the age of
25
ADT
S. Hill St
Kelly St
21,022
Coast Hwy
S. Hill St
21,820
S. Hill St
Eaton St
22,028
Cassidy St
Broadway St
7,278
$ 60,164
$436,600
$76,816
21.3%
Households
Median Home Value
Avg. Household Income
College Educated
SITE PLAN Office 8
Office 9
Office 10
Rest Room
Desk
Office 7
Utility
Courtyard
Office 6
Office 3
Open Area
Rest Room
Hall Office 2
Office 1
Hall
Office 5
Office 4
Hall
SOUTH COAST HIGHWAY
DISCLAIMER Voit Real Estate Services (“Voit”) has been retained as exclusive advisor and broker to the (“Seller”) regarding the sale of 1918-1920 South Coast Highway and 1917 South Freeman Street (“the Property”). This memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Seller or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Seller and Voit. 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 the Property will be made available to interested and qualified prospective purchasers. Neither the Seller nor Voit, nor any of their respective directors, officers, affiliates or representatives make any representation of warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents. The Seller expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Seller shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Seller and any conditions to the Seller’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without prior written authorization of the Seller or Voit. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Seller or Voit. 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 of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. The Seller reserves the right to sell or withdraw the Property at any time without prior notice. It is the Seller’s preference to close this transaction as soon as possible. All investors should base their offers and pricing on the “as-is”, “where-is” condition of the Property. Qualified prospective investors will have the opportunity to inspect the Property. Each prospective investor is to rely upon its own investigation, evaluation, and judgment as to the condition of the Property. In order to expedite underwriting and upon request, the prospective investors will be given access to due diligence information, and any information provided by Seller to Voit.
Exclusively Offered By:
Oceanside
VICTORIA ROBINSON
CURT ALLEN
Vice President | Lic. # 01381460 858.458.3324 | [email protected]
Senior Associate | Lic. # 01959536 858.458.3365 | [email protected]
VICTORIA ROBINSON
CURT ALLEN
Vice President | Lic. # 01381460 858.458.3324 | [email protected]
Senior Associate | Lic. # 01959536 858.458.3365 | [email protected]
FOR SALE $2,500,000
1918-1920 S. Coast Hwy 1917 S. Freeman St
TABLE OF CONTENTS I. PROPERTY Property Overview................................................................................................. 4 Investment Summary............................................................................................. 5
II. MARKET Nearby Amenities.................................................................................................. 6
SITE
Market Overview................................................................................................... 7
III.
SALE/RENTAL COMPARABLES Sale Comparables................................................................................................. 8 Rental Comparables.............................................................................................. 9
VICTORIA ROBINSON
Vice President | Lic. # 01381460 858.458.3324 | [email protected]
CURT ALLEN
Senior Associate | Lic. # 01959536 858.458.3365 | [email protected]
4747 Executive Dr., Suite 800, San Diego, CA 92121 • 858.453.0505 • 858.408.3976 Fax • Lic #01333376 | www.voitco.com Licensed as Real Estate Brokers and Salesperson by the CA Bur of Real Estate. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. Any financial analysis and/or valuation is the opinion of VRES and should not be considered an appraisal, nor has VRES followed the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. The source of this valuation and/or analysis is not to be disclosed without VRES’s prior written consent. ©2015 Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions.® is a registered trademark of Voit Real Estate Services.
PROPERTY OVERVIEW PROPERTY INFORMATION We are pleased to offer a great coastal investment opportunity located at 1918-1920 South Coast Hwy and 1917 South Freeman Street. These properties are located in the heart of South Oceanside on South Coast Hwy, just blocks from Carlsbad and the Village of Carlsbad, which presents an investor with upside rental potential and coastal influence.
The ±2,400 SF commercial building located on South Coast Hwy consists of 10 retail/office executive suites, including an ADT security system along with WIFI installed. The building has been recently renovated with modern colors, textures, and finishes. The 4 apartment units with access from South Freeman Street feature 3 one bedroom one bath units, and 1 two bedroom one bath unit. All 1 bedroom / 1 bath units have recently been remodeled and show a significant upside in rental potential.
PROPERTY FEATURES ADDRESS
1918-20 S Coast Highway & 1917 S Freeman Street, Oceanside, CA 92054
SUBMARKET
Oceanside Retail
PROJECT SIZE
±4,351 SF
LAND AREA
0.28 AC / 11,996 SF
YEAR BUILT
1965
PARCEL NUMBER
153-273-27
CURRENT RENTAL INCOME FOR THE APARTMENTS »»2bed/1bath – Current $1,325 - Market Rent $1,800 »»1bed/1bath – Current $1,500 »»1bed/1bath – Current $1,375 - Rental Increase to $1,500 February 1, 2016 »»1bed/1bath – Current $1,375 - Rental Increase to $1,500 February 1, 2016
POTENTIAL COMMERCIAL BUILDING INCOME »» 10 retail/office suites – Market $1,000/suite
Apartment Garages
INVESTMENT SUMMARY # UNITS 4 Apts 10 Suites
ADDRESS 1918-1920 S Coast Hwy
PRICE
$/UNIT
$2,500,000
$178,571 INCOME DETAIL TYPE RENT
TOTAL
2Br/1Ba 1Br/1Ba
$1,325 $1,500
$1,325 $4,500
Office Suites
$0
$0
# UNITS CURRENT 1 3 10 Laundry & Misc Inc. Total Monthly Income
$0 $5,825
MARKET 1 3 10
2Br/1Ba 1Br/1Ba
$1,800 $1,575
$1,800 $4,725
Office Suites
$1,000
$10,000
Laundry & Misc Inc. TOTAL MONTHLY INCOME ESTIMATED ANNUAL OPERATING PROFORMA Gross Scheduled Income Less: Vacancy Factor Gross Operating Income Less: Expenses NET OPERATING INCOME
3% 23%
CITY Oceanside
ZIP 92054
$/SQUARE FOOT (APPROX.) $574.58
GROSS SQ. FT. (APPROX.) 4,351
NAME South Oceanside
YEAR BUILT 1965
PARCEL SIZE 11,996
MARKET GRM 12.6
MARKET CAP RATE 5.9%
ESTIMATED ANNUAL OPERATING EXPENSES
Advertising Gas & Electric Water & Sewer Landscaping Insurance Legal/Accounting Trash Removal Maintenance & Repairs
$0 $360 $4,800 $1,560 $3,500 $0 $1,176 $1,200
Management (Off Site) Management (On Site) Licenses & Fees Miscellaneous Supplies Pool Pest Control Taxes (New)
$3,495 $0 $1,000 $500 $250 $0 $720 $27,500
TOTAL ANNUAL OPERATING EXPENSES
$46,061
EXPENSES PER:
$10.48 $11,395 23%
EST. SQ. FT. UNIT % OF GSI
$50 $16,575 FINANCING SUMMARY MARKET $198,900 $5,967 $192,933 $46,061 $147,352
Less: 1st TD Payments
($99,653)
PRE-TAX CASH FLOW CASH ON CASH RETURN
$47,699 6%
PROPOSED FINANCING: DOWN PAYMENT:
$1,750,000
INTEREST RATE:
3.95%
$750,000 30%
SOUTH COAST HIGHWAY
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MARKET OVERVIEW
San Diego’s North beach community of Oceanside is a classic California beach community with its warm sandy beaches, historic wooden pier and Cape Cod-style harbor village complete with unlimited water sports and recreation. A beautiful seaside community centrally located between Los Angeles and San Diego, Oceanside offers sun, surf, and a family-friendly relaxed and leisurely pace. Oceanside boasts easy access to Disneyland, Knott’s Berry Farm and Universal Studios to the north; San Diego Zoo and Mexico to the south; and San Diego Zoo Safari Park to the east. Oceanside provides train services on Amtrack, Metrolink, Coaster, and Sprinter to easily access top destinations.
SOUTH COAST HIGHWAY
LEASE COMPARABLES ADDRESS
SF LEASED TYPE 100 SF New Direct
START DATE TERM July 2014 3 Years
STARTING RENT EFFECTIVE RENT $60.00/NNN
1930 S Coast Highway 101
462 SF New Direct
April 2011 1 Year
$18.00/NNN
606 Cassidy Street
400 SF New Direct
April 2010 5 Years
$24.00 + Util $25.44 + Util
1922 S Coast Highway
450 SF New Direct
July 2007 1 Year
$18.84/NNN
514 Oceanside Blvd
RENTAL COMPARABLES ADDRESS
RENT/MONTH
UNIT
212 Oceanside Boulevard Oceanside
$1795
2/1
1910 Broadway Oceanside
$1725
2/1
1910 Broadway Oceanside
$1450
1/1
450 Morse Street Oceanside
$1300
1/1
SOUTH COAST HIGHWAY
OCEANSIDE DEMOGRAPHICS DEMOGRAPHICS 1 Mile
3 Miles
5 Miles
Population (2015)
10,234
78,577
139,342
Projected Population (2020)
18,773
69,919
144,557
Families
3,726
15,197
33,466
Average Household Size
2.58
2.57
2.54
Median Age
32.9
29.9
33.2
Average Household Income
$54,303
$67,172
$75,159
Median Household Income
$57,577
$54,617
$54,797
TRAFFIC COUNTS
QUICK STATS / 5 MILE RADIUS (2015) 350,135 Residents
72%
are over the age of
25
ADT
S. Hill St
Kelly St
21,022
Coast Hwy
S. Hill St
21,820
S. Hill St
Eaton St
22,028
Cassidy St
Broadway St
7,278
$ 60,164
$436,600
$76,816
21.3%
Households
Median Home Value
Avg. Household Income
College Educated
SITE PLAN Office 8
Office 9
Office 10
Rest Room
Desk
Office 7
Utility
Courtyard
Office 6
Office 3
Open Area
Rest Room
Hall Office 2
Office 1
Hall
Office 5
Office 4
Hall
SOUTH COAST HIGHWAY
DISCLAIMER Voit Real Estate Services (“Voit”) has been retained as exclusive advisor and broker to the (“Seller”) regarding the sale of 1918-1920 South Coast Highway and 1917 South Freeman Street (“the Property”). This memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Seller or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Seller and Voit. 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 the Property will be made available to interested and qualified prospective purchasers. Neither the Seller nor Voit, nor any of their respective directors, officers, affiliates or representatives make any representation of warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents. The Seller expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Seller shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Seller and any conditions to the Seller’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without prior written authorization of the Seller or Voit. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Seller or Voit. 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 of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. The Seller reserves the right to sell or withdraw the Property at any time without prior notice. It is the Seller’s preference to close this transaction as soon as possible. All investors should base their offers and pricing on the “as-is”, “where-is” condition of the Property. Qualified prospective investors will have the opportunity to inspect the Property. Each prospective investor is to rely upon its own investigation, evaluation, and judgment as to the condition of the Property. In order to expedite underwriting and upon request, the prospective investors will be given access to due diligence information, and any information provided by Seller to Voit.
Exclusively Offered By:
Oceanside
VICTORIA ROBINSON
CURT ALLEN
Vice President | Lic. # 01381460 858.458.3324 | [email protected]
Senior Associate | Lic. # 01959536 858.458.3365 | [email protected]
