Adams Package.2

MULTIFAMILY OFFERING

Each Office is Independently Owned and Operated. The information herein has been obtained from sources believed to be reliab le. While we do not doubt its accuracy, we have not verifiedit and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. You and your advisors should conduct acareful independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Matthew UdewitzSenior Elite Agent, Apartment SpecialistEmail: [email protected]: (619) 800-6256 Fax: (858)764-9744License #01385456

Keller Williams Commercial3695 Fifth Avenue Suite 300San Diego, CA 92103

FOR SALE

For More Information:

Matthew UdewitzSenior Elite Agent, Apartment Specialist

Office: (619) 800-6256Fax: (858) 764-9744Email: [email protected]

PRICE: $4,623,000 - 28 UNITS

Charming Adams AvenueAntique Row Gem

2405 Adams Avenue, San Diego, CA 92116 Spectacular Location in West Normal Heights along Adams

Avenue’s historic Antique Row adjacent to high end area ofPanorama Drive only a short walk to Trolley Park and ParkBlvd business district

Turn Key Asset built 1968 by Ray Watt’s Hedrick Co. Unit Mix of 6 X 2/2 Townhomes & 22 X spacious 1/1 All units feature walk in closets, built in bar, & parking All townhomes feature views, balcony, & rear patio 6 of the 1/1 units have large enclosed yards UPSIDE: 11 GRM, 7% Cap, 12%Cash on Cash Return Units have undergone significant rehabilitation Exterior upgrades include new black top parking lot,

exterior fixtures, awnings, paint, landscaping, + many extras New roof with 10 year warranty




FOR SALE28 Units - 2405 Adams AvenueNormal Heights, CA 92116

Keller Williams Commercial have obtained the information used in this package from sources we deem reliable. We have noreason to doubt the accuracy of the information, but neither we nor the owner represent that the economic benefits projected here-in are fact. All offers to purchase should be based upon independent investigation, analysis, appraisal, and evaluation of all facts,circumstances, and material deemed to be relevant by the purchaser.

The information in this package may contain date material. The information is being supplied without warranty.

An investor should not base a decision to purchase in whole or in part upon this analysis. He should rely on his own investigationand the advice of his own environmental, engineering, construction, and experts, in addition to legal counsel and tax consultants.

HAZARDOUS WASTE. Various materials utilized in the construction of improvements of the property may contain materialsthat have been or may, in the future, be determined to be hazardous or undesirable and may need to be specially treated, speciallyhandled, and/or removed from the property. Such items may be in above and below-ground containers on the property or may bepresent on or in soils, water, building components, and other portions of the property in areas that may or may not be accessible ornoticeable. The brokers in this transaction have no expertise with respect to the detection or identification of undesirablesubstances, hazardous materials, or toxic wastes. Proper inspections of the property by qualified experts are an absolute necessityto determine whether or not there are any current or potential undesirable substances, hazardous materials or toxic waste problemsrelated to the property. The brokers in this transaction have not made, nor will make, any representation either express of implied,regarding the existence or non-existence of toxic waste, hazardous materials, or undesirable substances in or on the property.

ZONING AND ORDINANCES. Buyer will conduct his own investigation whether or not city, county, state, historic site boardsand federal laws and ordinances allow development of the Property and what Zoning and other governmental regulations andrestrictions control the use of the Property and is not relying upon the representations of the Seller or Broker in this regard.

PHYSICAL ENVIRONMENTAL AND GEOLOGICAL INSPECTION. Buyer will inspect the subject Property prior to removingcontingencies, including but not limited to, structural, plumbing, sewer-septic system, heating, electrical, built-in appliances, roof,soils, foundation, mechanical systems, air conditioners, (if any), possible environmental hazards such as asbestos, formaldehyde,PCB’s, lead paint, radon gas, earthquake faults, the pooling of petro-chemical substances underground or other substances ofproducts, and geologic conditions.

Buyer acknowledges that, except as other wise expressly stated herein, Agent, Agents and Seller, nor any other 3rd party, has notmade any investigation, determination warranty or representation with respect to any of the following: (a) the legality of thepresent or and possible future use of the Property under and Federal State or local law; (b) pending or possible future action by anygovernmental entity or agency which may affect the Property; (c) the physical condition of the Property, including, but not limitedto, soil conditions, exiting the structural integrity of the Improvements, and the presence or absence of fungi or wood destroyingorganisms; (d) the accuracy of completeness of income and expense information and projections, of square footage figures, and ofthe texts of Leases, Options, and other Agreements affecting the Property; (e) the possibility that Leases, Options, or otherdocument exists which affect or encumber the Property and which have not been provided or disclosed by Seller, or (f) thepresence or location of any hazardous materials on or about the Property, including, but not limited to, asbestos, lead paint, PCBs,other toxic, hazardous or contaminated substance, and underground storage tanks and earthquake faults; (g) income taxinformation; (h) past or future uses of the property.

DISCLAIMER





COMMUNITY DESCRIPTION

HIGHLIGHTS Historic Antique Row section of Adams Avenue is a

beautiful place to live & always attracts a great tenant base High End Location Rents Quickly & Easily Walk to Trolley Park great for pets and kids Walk to Park Blvd & Adams Ave business districts North West, North Park Location Central Location, Close to 8, 805, & 163 FWY Normal Heights, University Heights, North Park Neighbor to rare architecture of historic properties

This is one of the most sought after locations in San Diego’s North Park District. The property sitsat the heart of the community at the intersection of Texas Street and Adams Avenue overlookingMission Valley. What makes this property “special” is it’s location on Antique Row, surrounded bygorgeous buildings of vintage architecture. There is wonderful building frontage on Texas Street,that can be used for signage to attract tenants. However, the property sits above Texas Street and isonly accessible via Adams Avenue. The location on Adams Avenue is across the street from vintageapartment buildings, pictured above, and neighbors with the historical Norville, pictured below. TheAdams Avenue bridge over Texas Street that links Antique Row to the entrance of UniversityHeights at Panorama Street, a street featuring high end single family homes, is erected adjacent to theproperty. A short walk across this bridge and tenants can access the Historic Trolley Park and ParkBoulevard business district of University Heights. The location is very central with easy access tothe major San Diego Freeways 8, 163, & 805. Tenants are also central to the business districts alongPark Blvd, Adams, 30th Street, Texas, University Avenue, and El Cajon Boulevard.

ANTIQUE ROW

NORVILLE




FOR SALE28 Units - 2405Adams AvenueNormal Heights, CA 92116

RANKED #14 HIPPEST CITY IN US BY FORBES 2012

IntroductionNextdoor.com helped us dig through data on more than 250 neighborhoods in the biggest U.S. cities. We assessedeach area’s walkability according to Walkscore.com; the number of neighborhood coffee shops per capita (with a lit-tle help from NPD Group’s report); the assortment of local food trucks (and their ranking according to Zagat’s); thenumber and frequency of farmers markets; the number of locally owned bars and restaurants; and the percentage ofresidents who work in artistic occupations. We also factored in Nextdoor's Neighborhood “Hipness” Index, which isbased on how often words associated with hipness appeared on each Nextdoor neighborhood’s site pages, andNextdoor conducted a survey in which members sounded off on their communities.

1. Silverlake, Los Angeles, CA2. Mission District, San Francisco, CA3. Williamsburg, Brooklyn, NY4. Wicker Park, Chicago, IL5. Pearl District, Portland, OR

INTERNET REFERANCE:http://www.forbes.com/pictures/mhj45jmeh/13-north-park-san-diego-ca-2/http://www.forbes.com/pictures/mhj45jmeh/introduction-28/

13. North Park,San Diego, CACulturally diverse NorthPark is home to Craftsmancottages, cafes and diners,coffee shops, severalmicrobreweries,boutiques, and the NorthPark Farmers Market. TheNorth Park Theater andthe Ray Street Arts Districtare also bastions ofcreativity in the area.

6. H Street Corridor, Washington, DC7. East Austin, Austin, TX8. Capitol Hill, Seattle, WA9. The Uptown, Oakland, CA10. Warehouse District, New Orleans, LA

11. Downtown Portland, Portland, ME12. North Loop, Minneapolis, MN13. North Park, San Diego, CA14. Northern Liberties, Philadelphia, PA15. Hampden, Baltimore, MD




FOR SALE28 Units - 2405Adams AvenueNormal Heights, CA 92116

LOCATION

PRIEMERE ADAMS AVENUE’S HISTORIC ANTIQUE ROW LOCATION OVERLOOKING MISSION VALLEY GREAT FWY ACCESS TO 8, 805, 5, 15, & 163 ADAMS AVENUE AT THE GATEWAY TO UNIVERISTY HEIGHTS

2405 ADAMS AVENUE, SAN DIEGO, CA 921116

MISSION VALLEY

BRIDGE

SUBJECT





LOCATION

Walking distance to business on Adams Avenue, Park Blvd, & 30th Street with restaurants, coffee shops, & retail Walking distance to Trolley Barn Neighborhood Park, great for pets & kids Adjacent to the entrance to University Heights and a short walk to the business center on Park Blvd Neighbors with the historic Spanish architecture property at the corner of Arizona and Adams, The Norville This pride of ownership location is surrounded by high end single family homes on Panorama Drive Central location at intersection of Texas Street & Adams Avenue Entry on Adams only, property adjacent to bridge over Texas Street

2405 ADAMS AVENUE, SAN DIEGO, CA 921116

THE NORVILLE

ANTIQUE ROWUNIVERSITY HEIGHTS





LOCATION

Central Location Close to all the best San Diego has to offer: Mission Valley, UC San Diego MedicalCenter, Qualcomm Stadium, Fashion Valley Mall, Down Town San Diego, Balboa Park, San DiegoMission, San Diego State University, University of San Diego, Miramar Air Force Base, San Diego Zoo,and Mission Bay.

World class shopping centers featuring all major stores in Mission Valley Quaint neighborhood charm of Antique Row, walking to business districts along Park Boulevard, 30th

Street, and Adams Avenue. Walking distance to great restaurants like Park House Eatery, Kensington Grill, and Antique Row Café Walking distance to a variety of coffee shops, eclectic eateries, bars, health food stores, and yoga studios Small town atmosphere of Historic University Heights/Antique Row combined with the big city feel of

Mission Valley, Fashion Valley, and Down Town San Diego

2411ADAMS AVENUE, SAN DIEGO, CA 921116

Trolley Barn Park





PROPERTY PHOTOS

TEXAS STREET





PROPERTY PHOTOS

VIEW FROM UNITS





PROPERTY PHOTOS—1/1 INTERIOR & LAUNDRY





PROPERTY DESCRIPTION

HIGHLIGHTS Units are rehabbed with condo quality upgrades Very Well Maintained with No Differed Maintenance Turn Key Asset: new roof, paint, & black top Landlord owns new laundry machines 6 Townhomes views & balconies & 6 1/1 with yards All units feature walk in closets & breakfast bar New roof last year with 10 yr warranty

The subject property is located on Adams Avenue along Historic Antique Row. The entrance to the propertyfeatures oasis landscaping and enters onto a newly paved black top with assigned off street parking for alltenants. Consisting of three buildings the property sits on a slope above Texas Street. The building at thecenter is 3 stories, it consists of 6 two bedroom townhomes the majority of which have undergone extensiverehabilitation including new cabinets, flooring, granite counters, accent moldings, and high end fixturesthroughout. The townhomes include a balcony and a private deck in addition to walk in closets and a greatlayout that includes a breakfast bar. The central building also includes 6 large one bedrooms that featurefenced in private yards for tenants. The remainder of the 16 units are one bed with one bath, located in 2 , twostory, eight unit buildings on either side of the central building. All units feature walk in closets, a breakfastbar between the kitchen and living room, condominium quality upgrades throughout, and assigned off streetparking. The building has been very well maintained and there is no deferred maintenance at this turn keyproperty. The majority of the units have been rehabbed with condominium quality fixtures and accents. Theproperty has recently received a new black top, roof, landscaping, laundry machines, and interior & exteriorpaint.





INCOME ANALYSIS

INCOME SUMMARY

Units Unit TypeMark

-to-Market

Current GrossMark-to-Market

Pro-formaMarket

ProformaMarket Gross

16 1 & 1 $1,025 $16,400 $1,150 $18,400

6 1 & 1 + PATIO $1,195 $7,170 $1,250 $7,500

6 2 & 2TOWNHOUSE $1,495 $8,970 $1,875 $11,250

28 MONTHLYGROSS INCOME $32,540 $37,150

$390,480 $445,800ANNUALIZED GROSSRENTAL INCOMELAUNDRYINCOME $4,780 $4,780

VACANCY RATE 2% ($7,810) ($8,916)

EFFECTIVE GROSSINCOME (EGI) $387,450 $441,664

Estimated

Expenses

Estimated

Expenses

LESS EXPENSES $116,000 $116,000

EXPENSES ASPERCENTAGE OF EGI 30% 26%

$271,450 $325,664NET OPERATINGINCOME (NOI)





EXPENSES

EXPENSES ACTUAL2011

NEW PROPERTY TAXES 47,150 1.025% OF PURCHASE PRICE

PROPERTY INSURANCE 4,200 150 PER UNIT

OFFSITE MANAGEMENT 12,225 4% GROSS RENTAL INCOME

ONSITE MANAGEMENT 7,200 $600 PR MONTH RENTAL CREDIT

MAINTENANCE 18,320 7% GROSS RENTAL INCOME

LANDSCAPING 1,500

PEST CONTROL 1,023

GAS & ELECTRICAL 6,877

TRASH 4,500

WATER/SEWER 13,000

TOTAL EXPENSES $115,995

TOTAL EXPENSES PER UNIT $4,143

TOTAL EXPENSES PER SQ FT $6.88

TOTAL BUILDING SQ FT 16,864





PRICING SUMMARY

Rates on 5 yr fixed are in the mid 3% range currently and10 yr fixed is as low as 4% on quotes mid October 2012.

SALE PRICE ANALYSIS

Current Market ProForma MarketPurchase Price $4,623,000 $4,623,000Down Payment @ 25% $1,155,750 $1,155,750Loan Amount $3,467,250 $3,467,250

Amortization 30 Years 30 YearsInterest Rate 3.5% 3.5%Annual Debt Service $186,834 $186,834

NOI $271,450 $325,664(Debt Service) ($186,834) ($186,834)

DCR 1.45 1.74

INVESTMENT ANALYSIS

Cash-on-Cash Return $84,616 $138,830Cash-on-Cash % 7.32% 12.01%CAP Rate 5.87% 7.04%GRM 11.93 10.47





SUBMARKET RESEARCH REPORT

SUBMARKETVACANCY

RATEY-O-Y bpsCHANGE

EFFECTIVERENTS

Y-O-Y %CHANGE

EL CAJON/SANTEE/LAKESIDE 1.3% -80 $1,041 3.6%BALBOA PARK/WEST OF 1-15 1.5% -90 $1,037 3.1%MISSION BAY/PACIFIC BEACH 1.9% -30 $1,534 3.5%OCEAN BEACH/POINT LOMA BLVD 1.9% -130 $1,308 3.6%NATIONAL CITY/CHULA VISTA 2.0% -80 $1,188 3.9%NORTH BEACHES 2.3% -110 $1,526 2.2%ESCONDIDO/SAN MARCOS 2.6% -110 $1,117 3.4%VISTA 2.6% -70 $1,203 4.0%LA MESA/SPRING VALLEY/LEMON GROVE 2.7% -130 $1,250 2.3%OCEANSIDE 2.8% -40 $1,210 2.4%LA JOLLA/UNIVERSITY CITY 3.4% -80 $1,726 3.1%SAN DIEGO/EAST OF I-15 3.4% -110 $1,034 1.9%CLAIRMONT/LINDA VISTA MISSION 4.0% -30 $1,425 3.5%MIRA MESA/RANCHO BERNARDO 4.1% -30 $1,544 3.9%DOWNTOWN SAN DIEGO 5.5% -310 $1,644 2.4%

SUBMARKET MAP SUBMARKET FACTS

SUBMARKET VACANCY

Adams Package.2

Documents

Transcript of Adams Package.2