multi-building, multi-parcel industrial investment 837

Metcalf St W Mission Ave

Garrett SholerPrincipal

BRE#01172325

[email protected]

Exclusively listed by:Trent France

PrincipalBRE#00984842

[email protected]

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice. Any of the foregoing information will need to be separately verified by Buyer.

Lee & Associates , Inc. - North San Diego County1900 Wright Place • Suite 200 • Carlsbad, CA 92008P: (760) 929•9700 F: (760) 929•9977www.lee-associates.com/sandiegonorth

multi-building, multi-parcel industrial investment837 - 847 Metcalf St • Escondido, California

$2,175,000 ($136.41 per sq.ft.)

TABLE OF CONTENTS

DESCRIPTION

PRICING:• Investment Summary & Lease Structure• Actual Income CAP Rate Calculation,

Financing Estimate• Proforma Investment Analysis

BUILDING & SITE INFORMATION

SITE PLAN

AERIAL MAP/LOCATION MAP

MARKET OVERVIEW • City & County Summary • Demographics

ADDITIONAL PHOTOS

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W Mission Ave

Metcalf St


Description

The Investment: With area vacancy rates for industrial product at approximately 3% in Escondido, 837 - 847 Metcalf represents an excellent opportunity for an investor to buy a two-tenant industrial investment at a very attractive price per square foot. Not only is this property available at below replacement cost, it is comprised of two buildings on two separate parcels, opening the possibility of selling off one of the buildings to an investor or an Owner-User (at the end of the applicable lease terms). For the last few years, Industrial Investments such as this offering have rarely become available in North San Diego. We strongly encourage investors to act quickly if they have a serious interest in purchasing this North San Diego multi-tenant Industrial Investment.

The Area: Escondido is one of the best industrial markets in North San Diego County. This property is zoned M-1 which allows for a wide range of industrial uses including automotive repair. It is important to emphasize that the property’s potential use for automotive repair and several other “Heavy Industrial” uses, are increasingly difficult to accommodate anywhere in North San Diego County. Therefore, this investment will provide the new Owner some insulation from new competing space in the market. Competing product of this type is difficult and increasingly expensive to build. Additionally, there is a shrinking supply of property with equivalent zoning designations (for “Heavy Industrial” uses) coupled with very significant recent increases in construction cost and municipal resistance to heavy industrial uses.

All of the above factors help provide barriers to entry for investors or developers trying to compete within this property use category. This facility is also visible from the East bound transition between the I-15 Freeway North and Hwy-78 East, proving additional exposure from potential customers. As of the publication of this memorandum, a three-story state of-the-art Self-Storage facility has been approved for construction which is immediately across the street from the subject property. This new facility should help to enhance the neighborhood in general.

The Building and Site:These concrete block structures were originally built in approximately 1970. Both buildings have wood truss roof structure and built-up composition roofs. The larger, South structure is approx. 9,900 sq. ft. and the smaller, North structure is comprised of approx. 6,045 sq. ft.; for a total of approx. 15,945 sq. ft. The larger building has 3 grade level roll-up doors and two pedestrian doors; the smaller building has 2 grade level roll-up doors and one pedestrian door. Each building has reception/office areas and two restrooms, providing a functional work environment for the tenants. Each property is operated autonomously and has its own utility installations, enhancing the flexibility of this investment offering. The property is .8612 Acres / 37,514 sq. ft. and is secured by a chain link sliding gates and fence. The site has 21 surface parking spaces inside the fenced area and can accommodate approximately 17 cars parked perpendicular to Metcalf St., outside of the fence area along the east side of the property. Approximate parking is 38 spaces total, which equates to 2.38 per 1,000 sq. ft. of building area, for the parking ratio.

3 | 837 - 847 Metcalf St | Property Description

W Mission Ave

Metcalf St

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

The Tenants: 837 Metcalf St. (9,900 sq. ft.) is occupied by “San Diego Habitat for Humanity” which is a California Non-Profit Corporation supported by Habitat for Humanity International (HFHI), generally referred to as Habitat for Humanity or simply Habitat. This is an international, non-governmental and nonprofit organization which was founded in 1976. The international operational headquarters are located in Americus, Georgia, United States with the administrative headquarters located in Atlanta. [2] There are five area offices located around the world: United States and Canada, Africa and the Middle East (located in Pretoria, South Africa), Asia-Pacific (Manila, Philippines), Europe and Central Asia (Bratislava, Slovakia), and Latin America and the Caribbean (San Jose, Costa Rica). “Habitat was founded on the conviction that every man, woman and child should have a simple, decent and affordable home to live in dignity and safety.” Habitat programs are focused on creating homes for ownership by low-income families in need, offering a hand up, not a handout. Habitat homes are sold to Partner Families at no profit and are financed by a 0%-interest 25 to 30-year mortgage. The mortgage payments create a revolving fund that Habitat uses to construct future homes for local families in need.

Habitat partner families qualify for our program by showing a demonstrated need for improved housing, a willingness to partner with Habitat by committing to 250-500 hours of “sweat equity” helping to build their own homes, and the ability to repay the 0%-interest, 25 to 30-year mortgage. Habitat homes are built with donations of money, materials and labor. Since 1988, SDHFH has built over 200 homes throughout San Diego County, serving 900 men, women and children, with the support of nearly 200,000 volunteers and generous corporate and government partners. Habitat for Humanity International has helped more than 4 million people construct, rehabilitate or preserve more than 800,000 homes since its founding in 1976, making Habitat the largest not-for-profit builder in the world. (Source: https://www.sandiegohabitat.org/About-Us/Our-Mission & https://en.wikipedia.org/wiki/Habitat_for_Humanity )

847 Metcalf St. (6045 sq. ft.) is occupied by Circle R Equipment Rental, a local construction and remodeling professional from Valley Center. The Owner-Operator has years of experience in the construction field. Circle R Equipment rental offers quality supplies for Contractors and Homeowners, with equipment for almost every construction project. The Tenant’s website allows customers to request an equipment rental reservation at any time–day or night. (source: https://www.circlerequipment.com/ )


Description

4 | 837 - 847 Metcalf St | Property Description


837 - 847 METCALF, ESCONDIDO, CA 92025

Price: $2,175,000.00

Cap Rate: 4.94%

Total Square Feet 15,945 SF

Building Price Per Square Foot: $136.41

Average Rent Per Square Foot: $ 0.66½ IG

NOI (As of Lease Commencement): $107,538.00

Rental Escalations: 3% per annumFixed

Percentage Leased: 100%

Lease Expiration: 837 Metcalf: 3.31.21847 Metcalf: 5.31.20

Options: NONE

Lease Type: Industrial Gross (I.G.)Landlord responsible for roof structure, walls, foundation & insurance.


PRICING: Summary & Lease Form

Both leases are on “AIR Commercial Real Estate Association Standard Industrial Commercial Single-Tenant Lease - Gross.” (Ask Brokers for additional details.)

LEASE STRUCTURE

5 | 837 - 847 Metcalf St | Pricing - Summary & Lease

W Mission Ave

Metcalf St

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein


PRICING: Actual Income CAP Rate Calculation, Financing Estimate

Rent Roll (monthly) Tax Annual ExpensesSte TENANT NAME Sq. Ft. ***Rent Mo.Rt. PSF Charges (Annual) Per Ft. (Ann.) %*

837 Habitat for Humanity 9,900 6,536$ $0.66 0.12$ NEW PROP. TAXES 25,087$ 1.57 1.1534%Lease Escalates 3% Annually Management 3,776$ 0.24 2.97%

847 M.C. Miller 6,045 4,047$ $0.67 -$ Cap Reserve 1,270$ 0.08 1.00%

Lease Escalates 3% Annually Insurance 3,877$ 0.24 N/A

Total Sq. Ft. 15,945 10,583 GOI(Mo) 1,213$ Total EXPENSES 34,010$ 2.133$

Total Vacant Sq. Ft. - ***April 2018 rental rate. * Percentage of Gross Operating Income Exp. Per Ft. % of GOI

Total Occupied Sq. Ft. 15,945Annual Income Sales AnalysisScheduled Op. Inc.(SGI) 126,998$Actual Vacancy -$ List Price 2,175,000$ Loan Info. (Assumptions)Vacancy Res. -$ Loan Balance 1,305,000 60.0%

Total Rental Income 126,998$ Capitalization Rate 4.94% Down Payment 870,000 40.0%

Property Tax Reinbursement 14,550$ Amortized (years) 30 Yrs.

Gross Operating Income(GOI) 141,548$ Price Per Sq. Ft. 136.41$ Interest Rate 4.50% APR

Annual Expenses (34,010)$ Payment (6,612.24)$ Mo.

Net Operating Income (NOI) 107,538$ Cash Flow After Pmt. 3.24% Debt Coverage Ratio 1.355

ACTUAL INCOME - Multi-Building Industrial Investment / 837 & 847 Metcalf St., Escondido CA

This document is strictly a working document not to be construed or relied upon as factual; it is designed to illustrate estimates of investment income. It is recommended that your financial analyst/consultant/accountant proof facts, numbers, calculations and assumptions. Lee & Associates is not liable for incorrect facts, numbers, calculations and assumptions. This document is hypothetical and designed to be used for discussion purposes only.

Contact Garrett Sholer of Lee & Associates NSDC Inc. for questions of concerns: [email protected]/Cell (949) 722-7227

6 | 837 - 847 Metcalf St | Pricing - Actual Income


PRICING: Proforma Investment Analysis


7 | 837- 847 Metcalf St | Pricing - Proforma

Rent Roll (monthly) Annual ExpensesSte TENANT NAME Sq. Ft. ***Rent Mo.Rt. PSF Charges (Annual) Per Ft. (Ann.) %*

837 After 3/31/2021 (Est.) 9,900 9,900$ $1.00 -$ PROPERTY TAXES 25,087$ 1.57$ 1.1534%Management 3,776$ 0.24$ 1.97%

847 After 5/31/2020 (Est.) 6,045 6,045$ $1.00 -$ Cap Reserve 1,913$ 0.12$ 1.00%

Insurance 3,877$ 0.24$ N/A

Total Sq. Ft. 15,945 15,945 GOI(Mo) -$ Total EXPENSES 34,654$ 2.17$

Total Vacant Sq. Ft. - * Percentage of Gross Operating Income Exp. Per Ft. % of GOI

Total Occupied Sq. Ft. 15,945 Annual Income Sales AnalysisScheduled Op. Inc.(SGI) 191,340$ Actual Vacancy -$ List Price 2,175,000$ Loan Info. (Assumptions)Vacancy Res. -$ Loan Balance 1,305,000 60.0%

Gross Op. Inc. (GOI) 191,340$ Capitalization Rate 7.20% Down Payment 870,000 40.0%

Property Tax Reinbursement -$ Amortized (years) 30 Yrs.

Gross Operating Income(GOI) 191,340$ Price Per Sq. Ft. 136.41$ Interest Rate 4.50% APR

Annual Expenses (34,654)$ Payment (6,612.24)$ Mo.

Net Operating Income (NOI) 156,686$ Cash Flow After Pmt. 8.89% Debt Coverage Ratio 1.975

PRO FORMA Analysis - Estimated Future Rents / 837-47 Metcalf St., Escondido CA

This document is strictly a working document not to be construed or relied upon as factual; it is designed to illustrate estimates of investment income. It is recommended that your financial analyst/consultant/accountant proof facts, numbers, calculations and assumptions. Lee & Associates is not liable for incorrect facts, numbers, calculations and assumptions. This document is hypothetical and designed to be used for discussion purposes only.

Contact Garrett Sholer of Lee & Associates NSDC Inc. for questions of concerns: [email protected]/Cell (949) 722-7227


BUILDING & SITE INFORMATION*


8 | 837 - 847 Metcalf St | Building & Site Information

W Mission Ave

Metcalf St


Location: 837 Metcalf Street 847 Metcalf Street

Assessor’s Parcel Numbers:

228-222-71 228-220-70

Number of Structures: One (1) One (1)

Total Rentable Building Area: (Approximately)

9,900 SF 6,045 SF

Land Size:(Approximately)

23,344 SF (0.54 Acres)

14,170 SF(0.33 Acres)

Year Built:(Approximately)

1970 1970

Construction:Concrete Blocks with Wood Truss

Roof StructureConcrete Blocks with Wood Truss

Roof Structure

Zoning: M-1 M-1

Parking: Surface Spaces Surface Spaces

Ingress/Egress: Metcalf Street Metcalf Street

Power: (Not confirmedby Seller or Broker)

600 Amps, 120/240 Volts 400 Amps, 120/240 Volts

Doors: Three (3) Grade Level Service

Doors & Two (2) Pedestrian DoorsTwo (2) Grade Level Service Doors

& Two (2) Pedestrian Doors

Clear Height: 12.67’ 12.67’

Restrooms: Two (2) Two (2)

Office/Reception Areas: 767 SF 6,045 SF

Fire Sprinklers: Yes Yes

*Broker has not confirmed above building information.

837

847

SITE PLAN


9 | 837- 847 Metcalf St | Site Plan

MET

CA

LF S

T

847 METCALF ST(±6,045 SF)

837 METCAL ST(±9,900 SF)

Kauana Loa Dr

EscondidoWorld Market

W Mission Ave

E Mission Ave

Center City Pkwy

E 15th Ave

N Quince St

Escondido Creek

Auto Park Way

S And

reas

en St

Citr

acad

o Pa

rkw

ay

W Washington Ave

N Juniper St

US Post Office E Grand Ave

Ches

tnut

St

S Date St

E 5th Ave

Harmony Grove

Coun

try

Club

Dr

S Ha

le A

ve

W V

alle

y Pk

wy

W Valley Pkwy

Escondido Transit Center

Center City Pkwy

N BroadwayW 9th Ave

E 2nd Ave

San Marcos / Escondido

AERIAL MAP

W Mission Ave

E Mission Ave

Nord

ahl R

d

SUBJECTPROPERTY


10 | 837- 847 Metcalf St | Location Map / Tenant Map

LOCATION MAP

SUBJECTPROPERTY

SUBJECTPROPERTY


11 | 837- 847 Metcalf St | Location Map

DEMOGRAPHICS

EXECUTIVE SUMMARY 1 MILE 3 MILES 5 MILES

Total Population: 6,992 128,096 230,183

Average HH Income: $65,545 $66,278 $73,455

Median HH Income: $56,628 $56,578 $63,388

Tourism: Escondido is a city located in San Diego County’s North County region,

30 miles northeast of Downtown San Diego, and 20 minutes from the coast.

Escondido is the heart of northern San Diego County. Rich in history and

culture, home to major attractions, beautiful wineries, craft breweries, unique

arts and theatre, delicious culinary experiences and a historic downtown

Population: As of the 2015 census, Escondido had a total population of 147,294. The population density is 3,435.1 people per square mile. In the city the population is spread out with 22.6% under the age of 15, 29.6% from 15 to 34, 36.1% from 35 to 64, 11.7% who are 65 years of age or older.

TOP EMPLOYERS - Escondido NUMBER OF EMPLOYEES

Palomar Medical Center 3,045

Escondido Union School District 1,900

City of Escondido 1,101

Welk Group, Inc. 1,000

San Diego Safari Park 967

Escondido Union High School District 851

Vons Grocery Stores 364

Palomar Community College District 322

Home Depot 300

History: The location of Escondido was first identified a nd discovered by Juan Bautista de Anza, a Spanish explorer, in 1776. Later, the area became part of the Rancho Rincon del Diablo (the devil’s corner) land grant bestowed to Juan Bautista Alvarado in 1843 by Mexican Governor Manuel Micheltoren. In 1886, the Escondido Land and Town Company acquired the land grant, laid out the town site, and divided the valley into small farms suitable for grapes

or citrus Established in 1888, it is one of the oldest cities in San Diego County.

MARKET OVERVIEW


12 | 837- 847 Metcalf St | Market Overview

DISCLAIMER

Lee & Associates (“Broker”) has been retained as the exclusive broker to About Service, Inc. (“the Seller”) regarding the sale of 837 - 847 Metcalf St., Escondido, California (“the Property”). This marketing brochure contains certain information pertaining to the subject Property and does not warrant 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 Broker. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. Any and all references to square footages and other measurements are strictly approximations. Additional information and an opportunity to inspect the Property will be made available to qualified prospective purchasers. Neither the Seller nor Broker, officers, affiliates or representatives make any representation of warranty, ex-pressed 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 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 Memo-randum 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 Brokers. 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 Brokers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These sum-maries 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. All investors should base their offers and pricing on the “as-is”, “where-is” condition of the Property. Each prospective purchaser is to rely upon its own investigation, evaluation, and con-clusions as to the condition of the Property. In order to expedite underwriting and upon request, the prospective investors will be given access to certain due diligence information and any information provided by Seller to Broker.

ABSOLUTE NNN LEASED-AUTO CENTERA B O U T S E R V I C E , I N C .

854 Metcalf St • Escondido, California

multi-building, multi-parcel industrial investment837- 847 Metcalf St • Escondido, California

multi-building, multi-parcel industrial investment 837

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