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32339 2 1 0 4 | N O R T H PA R K

HERMAN AVE

OFFERING MEMORANDUM

L U X U R Y

1 EXECUTIVE SUMMARY

PRIDE OF OWNERSHIP - NOR TH PARK

SPLIT UNIT HEATING & AIR

AC TIVE CONDO MAP - OPTION FOR FUTURE CONVERSION

COMPLE TE LUXURY REMODEL IN 2018

IN UNIT HIGH EFFICIENCY LAUNDRY

PRIVATE PATIOS & BALCONIES

INVESTMENT HIGHLIGHTS.

8 SPACES - (4) OFF STREE T PARKING SPACES & (2) DOUBLE CAR GARAGES

HIGH END FINISHES

BLOCKS FROM BALBOA PARK & 30 T H ST

Marcus and Millichap is pleased to present our newest exclusive listing, El Amor, a luxury turn key asset located in the North Park Neighborhood, arguably San Diego's most desirable neighborhood for apartment

investors. Constructed in 1972 and fully remodeled in 2018, the subject property rests on a 6,251 sq ft lot with 5,435 of rentable sq ft.

El Amor is comprised of 8 units including (5) one bedroom / one bath, (2) two bedroom / one bathroom, and (1) two bedroom / two bathroom units. There is an active condo map on the property, leaving the

future option for an investor to sell the units off as condos. All units went through a complete remodel now featuring gourmet kitchens and a sleek, airy design. The luxury apartment homes debut all new split

heating and air units, stainless steel appliances, quartz counter tops, luxury vinyl plank flooring, custom accents, and in-unit front load washer and dryers. The two bedroom / two bath unit is complete with a

large master bathroom including dual sinks and a walk-in shower. Other tenant offerings include off street parking, garages, storage room, private patios and balconies.

Tucked away on a quiet block but close enough to all the action, this complex is within walking distance from the renowned Balboa Park and the bustling attractions on 30th Street. This sale lends investors the opportunity to acquire a rarely found luxury asset in one of San Diego's most coveted residential rental

markets.

ADDRESS: 3233 Herman Ave

PRICE: $3,400,000

PRICE PER UNIT: $425,000

# OF UNITS: 8

CAP RATE: 4.08%

RENTABLE SF: 5,435

LOT SIZE: 0.14 acres

YEAR BUILT: 1972 / 2018

APN: 453-562-31-00

ZONING: RM-1-7

# OF BUILDINGS: 1

# OF STORIES: 2

PARKING: (4) Off Street Spaces(2) Double Car Garages

FOUNDATION: Slab

LANDSCAPING: Minimal

ROOF: Flat

ELECTRIC: Tenant Pays

GAS: Tenant Pays

WATER: Owner Pays

2 PROPERTY DESCRIPTION

CAPITAL IMPROVEMENTS

All New Stainless Steel Appliances:Counter Depth RefrigeratorsGas Range Oven & StovetopsDishwashersOver the Range MicrowavesSinks & Moen Faucets

KITCHEN

All New:Quartz Counters Luxury Vinyl Plank FlooringRecessed LightingShaker White CabinetsCustom Wood Shelves


All New:Under the Counter Washer & Dryers

Luxury Vinyl Plank FlooringSplit Unit Heating & Air

Ceiling Fans

LIVING ROOM


BATHROOM & BEDROOMBathroom:Quartz CountersAccent Shower Wall with Designer TilePorcelain Tile FlooringExhaust Ceiling FanLow Flow Toilets

Sliding Barn Style DoorsCloset Mirror SlidersFramed Shower DoorsSinks & Moen FaucetsVanity Wall Mirror & LightsMedicine Cabinets

LIVE TOUR

Bedroom:Luxury Vinyl Plank Flooring

Ceiling Fans

Want to see more?

El Amor Live Tour: https://www.tailorandreach.com/3d-model/3233-herman-ave/skinned/

NORTH PARK.WELCOME HOME.

North 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 cottages, 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 galler-ies, boutiques, trendy bars with handcrafted cocktails and local brews, and foodie-approved eateries” as

stated in The Los Angeles Times.

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.

Price $3,400,000

Down Payment $1,428,000 / 42%

Number of Units 8

Price Per Unit $425,000

Price Per SqFt $625.57

Gross SqFt 5,435

Lot Size 0.14 Acres

Approx. Year Built 1972 / 2018

#of Units

Unit Type Sq Ft Current Rents

Turnover Rents

5 1 Br / 1 Ba 580 $2,050 $2,111

2 2 Br / 1 Ba 818 $2,300 $2,369

1 2 Br / 2 Ba 900 $2,500 $2,575

Cap Rate 4.08% 4.25%

GRM 16.33 15.86

Debt Coverage Ratio 1.15 1.20

Income Current Year 1

Gross Scheduled Rent $208,200 $214,416

Less: Vacancy/Deductions 3.0% $6,246 3.0% $6,432

Total Effective Rental Income $201,954 $207,984

Other Income $0 $0

Effective Gross Income $201,954 $207,984

Less: Expenses 31.3% $63,145 30.5% $63,446

Net Operating Income $138,809 $144,537

Cash Flow $138,809 $144,537

Debt Service $120,606 $120,606

Net Cash Flow After Debt Service 1.27% $18,203 1.68% $23,931

Principal Reduction $31,532 $32,997

Total Return 3.48% $49,735 3.99% $56,929

Expenses Current Year 1

Real Estate Taxes $39,937 $39,937

Insurance $2,010 $2,010

Utilities $6,000 $6,000

Trash Removal $1,800 $1,800

Repairs & Maintenance $2,400 $2,400

Landscaping & Pest $900 $900

Management Fee $10,098 $10,399

Total Expenses $63,145 $63,446

Expenses/Unit $7,893 $7,931

Expenses/SF $11.62 $11.67

Loan Amount $1,972,000

Loan Type New

Interest Rate 4.55%

Amortization Period 30 Years

Year Due 2023

Summary

Current Year 1Returns

Financing 1st Loan

Unit Mix

Operating Data

3 FINANCIAL ANALYSIS : PRICING DETAIL

UNIT UNIT TYPE APPROX SQ. FT.CURRENT RENT /

MONTHCURRENT RENT /

SF / MONTHTURNOVER RENT /

MONTHTURNOVER RENT /

SF / MONTH

1 2Br / 1Ba 770 $2,300 $2.99 $2,369 $2.89

2 1Br / 1Ba 560 $2,050 $3.66 $2,111 $3.64

3 2Br / 2Ba 888 $2,500 $2.82 $2,575 $2.86

4 2Br / 1Ba 770 $2,300 $2.99 $2,369 $2.89

5 1Br / 1Ba 560 $2,050 $3.66 $2,111 $3.64

6 1Br / 1Ba 560 $2,050 $3.66 $2,111 $3.64

7 1Br / 1Ba 580 $2,050 $3.66 $2,111 $3.64

8 1 Br / 1Ba 642 $2,050 $3.19 $2,111 $3.64

Storage -- 105 -- -- -- --

Total 5,435 $17,350 $3.19 $17,868 $3.29

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.

4 FINANCIAL ANALYSIS : RENT ROLL

SUBJECT PROPERTY

3233 Herman St, San Diego, CA 92104

Sale Price $3,400,000

Close of Escrow 0n Market

Number of Units 8

Year Built 1972 / 2018

Price/Unit $425,000

Price/SF $625.57

Cap Rate 4.08%

UNITS UNIT TYPE

5 1 Bdrm / 1 Bath

2 2 Bdrm / 1 Bath

1 2 Bdrm / 2 Bath

4157 Utah St, San Diego, CA 92104


Close of Escrow 12/28/2017

Number of Units 8

Year Built 1987

Price/Unit $431,250

Price/SF $624.32

Cap Rate 4.08%

UNITS UNIT TYPE

5 2 Bdrm / 2 Bath

3 1 Bdrm / 1 Bath

13783 1st Ave, San Diego, CA 92103



Number of Units 5

Year Built 1953

Price/Unit $458,000

Price/SF $381.67

Cap Rate 2.35%

UNITS UNIT TYPE

5 2 Bdrm / 1.5 Bath

2

5 SALES COMPARABLES

3918 Idaho St, San Diego, CA 92104



Number of Units 7

Year Built 1993

Price/Unit $406,577

Price/SF $500.89

Cap Rate 4.75%

UNITS UNIT TYPE

5 2 Bdrm / 2 Bath

1 2 Bdrm / 2.5 Bath

1 1 Bdrm / 1 Bath

4050 32nd St, San Diego, CA 92104



Number of Units 6

Year Built 2008

Price/Unit $408,333

Price/SF $426.46

Cap Rate 3.59%

UNITS UNIT TYPE

4 2 Bdrm / 2 Bath

2 1 Bdrm / 1.5 Bath

44647 Alabama St, San Diego, CA 92116



Number of Units 8

Year Built 1969

Price/Unit $393,125

Price/SF $471.37

Cap Rate 4%

UNITS UNIT TYPE

5 2 Bdrm / 1.5 Bath

533783 1st Ave, San Diego, CA 92103

5 SALES COMPARABLES

4525 Felton St, San Diego, CA 92116


Close of Escrow ON MARKET

Number of Units 8

Year Built 1922

Price/Unit $400,000

Price/SF $641.54

Cap Rate 4.32%

UNITS UNIT TYPE

8 2 Bdrm / 1 Bath

6

5 SALES COMPARABLES

6RENT COMPARABLES

SUBJECT PROPERTY

3233 Herman Ave, San Diego, CA 92104

Unit Type(5) 1 Bdrm / 1 Bath(2) 2 Bdrm / 1 Bath(1) 2 Bdrm / 2 Bath

Year Built 1972 / 2018

Rent$2,050$2,300$2,500

1237 Pennsylvania Ave, San Diego, CA 92103

Unit Type 1 Bdrm / 1 Bath

Year Built 1911

Rent $2,195

Approx. Sq. Ft. 580

11041 Robinson Ave, San Diego, CA 92103


Year Built 1933

Rent $2,250

Approx. Sq. Ft. 550

2

6RENT COMPARABLES

1041 Robinson Ave, San Diego, CA 92103 3744 Grim Ave, San Diego, CA 92104


Year Built 1981

Rent $2,540

Approx. Sq. Ft. 723

1756 Essex St, San Diego, CA 92103


Year Built 1989

Rent $2,500

Approx. Sq. Ft. 859

44054 Florida St, San Diego, CA 92104


Year Built 1978

Rent $2,350

Approx. Sq. Ft. 805

53

6RENT COMPARABLES

3640 Indiana St, San Diego, CA 92103


Year Built 1922

Rent $2,395

Approx. Sq. Ft. 909

4657 Felton St, San Diego, CA 92104

Unit Type1 Bdrm / 1 Bath

2 Bdrm / 2 Bath

Year Built 1969

Rent$1,950$2,250

Approx. Sq. Ft.650850

74473 34th St, San Diego, CA 92103


Year Built 1980

Rent $2,250

Approx. Sq. Ft. 850

86

4473 34th St, San Diego, CA 92103

6RENT COMPARABLES

3640 32nd St, San Diego, CA 92104


Year Built 1967

Rent $2,399

Approx. Sq. Ft. 906

1740 Upas St, San Diego, CA 92103


Year Built 1980

Rent $1,995

Approx. Sq. Ft. 576

109

3066 HAWTHORN STCONFIDENTIALITY 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

CARSON TRUJILLOSENIOR ASSOCIATE

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

858-373-3285 DIRECT | 859-433-8741 [email protected]

LICENSE: CA: 01974818

luxury - loopnet · complete luxury remodel in 2018 in unit high efficiency laundry private patios...

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