C ONDITIONAL E XECUTION & B RANCHING Instructor Nash Readings: “Cat” Book, Section 3.1.
WITH RARE ONDITIONAL USE PERMIT IN PLAE 2456 E Street — … · 2017-10-11 · Tenant Information...
5
COLLIERS INTERNATIONAL 4660 La Jolla Village Drive, Suite 100 San Diego, CA 92122 www.colliers.com/sandiego SHANE HARMON 858 677 5337 [email protected] Lic. No. 01274934 Property Informaon CUP: Non-expiring transferable 36-bed residenal care (broadly defined) facility (very difficult to get approved today). Bus access: Broadway & 25th—0.25 miles Trolley access: From the 24th Street Trolley Staon at 0.1 mile NE from bus route Bldg. Status: Built in 1940 (upgraded in 2007) Lot Area: 0.32 Acres Zoning: GH—3000 with max coverage of 1 unit per 3,000 SF of land. APN: 534-391-10 FOR SALE > RESIDENTIAL CARE & BEHAVIORAL CARE FACILITY WITH RARE CONDITIONAL USE PERMIT IN PLACE Investment Informaon Single tenant lease. Two tenants have been there over the last 10-year period with no down me between tenants. Tenant handles all maintenance and repair. Specialized use—Ask lisng agent for industry informaon. Tenant is publicly traded for-profit behavioral care company with approximately $400M market capitalizaon (October 2016). Potenally assumable $700,000 debt with $6,500 monthly payment (30-year amorzaon) Sales price: $2,500,000 Cap Rate: 7.7% (approximate) SAN DIEGO, CA 92102 With Publically Traded Company 2456 E Street — Single Tenant Investment
Transcript of WITH RARE ONDITIONAL USE PERMIT IN PLAE 2456 E Street — … · 2017-10-11 · Tenant Information...
COLLIERS INTERNATIONAL 4660 La Jolla Village Drive, Suite 100
San Diego, CA 92122 www.colliers.com/sandiego
SHANE HARMON 858 677 5337 [email protected] Lic. No. 01274934
Property Information
CUP: Non-expiring transferable 36-bed residential care (broadly defined) facility (very difficult to get approved today).
Bus access: Broadway & 25th—0.25 miles
Trolley access: From the 24th Street Trolley Station at 0.1 mile NE from bus route
Bldg. Status: Built in 1940 (upgraded in 2007)
Lot Area: 0.32 Acres
Zoning: GH—3000 with max coverage of 1 unit per 3,000 SF of land.
APN: 534-391-10
FOR SALE > RESIDENTIAL CARE & BEHAVIORAL CARE FACILITY WITH RARE CONDITIONAL USE PERMIT IN PLACE
Investment Information Single tenant lease. Two tenants have been there over
the last 10-year period with no down time between tenants. Tenant handles all maintenance and repair.
Specialized use—Ask listing agent for industry information.
Tenant is publicly traded for-profit behavioral care company with approximately $400M market capitalization (October 2016).
Potentially assumable $700,000 debt with $6,500 monthly payment (30-year amortization)
Sales price: $2,500,000
Cap Rate: 7.7% (approximate)
SAN DIEGO, CA 92102 With Publically Traded Company
2456 E Street — Single Tenant Investment
2456 E Street
SAN DIEGO, CA 92102
2456 E Street
FOR SALE > RESIDENTIAL CARE FACILITY WITH RARE CONDITIONAL USE PERMIT IN PLACE
COLLIERS INTERNATIONAL 4660 La Jolla Village Drive, Suite 100
San Diego, CA 92122 www.colliers.com/sandiego
SHANE HARMON 858 677 5337 [email protected] Lic. No. 01274934
Population 1 Mile 3 Mile 5 Mile
2015Total Population: 42,188 243,853 523,763
Pop Growth 2015-2020: 7.20% 6.00% 5.60%
PopCapita Income: $26,256 $29,242 $25,548
Average Age: 32.2 32.7 32.5
Households
2015 Total Households: 16,231 90,757 182,706
HH Growth 2015-2020: 3.1% 1.6% 1.5%
Median Household Income $39,112 $48,412 $47,862
Avg Household Size: 2.40 2.40 2.70
Housing
Median Home Value: $385,146 $396,647 $354,703
Average Home Value: $461,612 $563,792 $500,816
Downtown San Diego
Golden Hill District
Golden Hill is a neighborhood of San Diego, California. It is located south of Balboa Park, north of Sherman Heights/Highway 94 (M. L. King, Jr. Freeway), and east of Downtown. Golden Hill is one of San Diego's most historic and architecturally eclectic zones, with many pre-1900 homes and apartments. This neighborhood is also in walking distance of Downtown, City College and much of Balboa Park. Auto access is direct from freeways 5 and 94. The major through streets and bus routes are Broadway (East and West), and 25th Street and 30th Street (North and South). The Zip code is a portion of 92102. Pedestrianism, like in other urban mesa neighborhoods surrounding Balboa Park, is high relative to the rest of San Diego. Golden Hill is home to Black Box Recording Studios, The Habitat Recording Studios, Los Reyes Mexican Food, Influx Cafe, Turf Supper Club, Krakatoa & Pizzeria Luigi (which was featured on the Food Network show Diners, Drive-Ins and Dives). Golden Hill is also host to two outdoor concerts a year, the Golden Hill Block Party and Kate Sessions Fest. The Golden Hill Block Party happens the last Saturday prior to Halloween. Golden Hill is also home to the Women's History Museum and Educational Center, which recently celebrated its 25th year as one of the only comprehensive women's history museums in the country.
Neighborhood Information & Demographics
Tenant Information
TENANT: American Addiction Centers, Inc., a publicly traded $400M behavioral health company with over $200M in gross review in 2015.
LEASE EXPIRATION DATE March 31, 2020 (Tenant has been occupying since 2007 and renewed lease once already)
CURRENT LEASE RATE: 18,548 per month.
LEASE TYPE: Modified net, Tenant responsible for all expenses except for property taxes. CPI increases annually, minimum 3%, maximum 5%
SALES PRICE: $2,500,000
GOING IN CAP RATE: 7.7% (approximate)
FOR SALE > RESIDENTIAL CARE FACILITY WITH RARE CONDITIONAL USE PERMIT IN PLACE
COLLIERS INTERNATIONAL 4660 La Jolla Village Drive, Suite 100
San Diego, CA 92122 www.colliers.com/sandiego
SHANE HARMON 858 677 5337 [email protected] Lic. No. 01274934
SAN DIEGO, CA 92102
2456 E Street
American Addiction Centers (NYSE: AAC) is a leading for-profit provider of evidence and research based inpatient substance abuse treatment and counseling. Their mission is to provide quality, compassionate, and innovative care to adults struggling with addiction and co-occurring mental health disorders. Through comprehensive and customized treatment plans, our research-based, empathetic care they instill hope that long-term recovery is possible. They currently have 10 residential facilities, 1 clinical, and 1 hospital facility spread throughout the country, and are in the process of opening many more (growth mode). All their facilities are CARF accredited.
Behavioral Health Industry Information
HHS ESTIMATES 62 MILLION WILL GAIN COVERAGE. REASONS WHY:
The US Mental Health and Substance Abuse Services industry includes over 17,000 facilities with combined annual revenue of approximately $50 billion. Including ancillary services, broader industry revenues represent over $300 billion combined.
The Affordable Care Act (ACA) and the Mental Health Rarity Regulations promote mental health as part of an “Essential Health Benefits” and eliminate the fiscal and psychological barriers.
Due to the insurance and parity regulation changes, over 62 million persons could be afforded new or increased coverage that was not available in the past.
Demand for mental health services has reached an all-time high and continues to grow, while the supply of hospital beds dedi-cated to mental health patients has steadily declined (i.e. - 13.6% decrease in number of public psychiatric beds from 2000 to 2011 nationwide and over 30% decrease in California over a 16 year period from 1995 to 2011)
Supply / demand disconnect has resulted in shorter stays, growth in outpatient / residential treatment, and an increased prev-alence of mental illness among prison and homeless populations
CONCLUSION: US mental health industry remains highly fragmented, continues to incorporate ACA and parity changes, and is expected to remain in high growth mode over the next decade as hospitals refer out many of the detoxification and residential treatment beds to a lower level of care that is more affordable under ACA and Medicaid.
FOR SALE > RESIDENTIAL CARE FACILITY WITH RARE CONDITIONAL USE PERMIT IN PLACE
COLLIERS INTERNATIONAL 4660 La Jolla Village Drive, Suite 100
San Diego, CA 92122 www.colliers.com/sandiego
SHANE HARMON 858 677 5337 [email protected] Lic. No. 01274934
1st FLOOR LAYOUT
SAN DIEGO, CA 92102
2456 E Street
FOR SALE > RESIDENTIAL CARE FACILITY WITH RARE CONDITIONAL USE PERMIT IN PLACE
COLLIERS INTERNATIONAL 4660 La Jolla Village Drive, Suite 100
San Diego, CA 92122 www.colliers.com/sandiego
SHANE HARMON 858 677 5337 [email protected] Lic. No. 01274934
2nd FLOOR LAYOUT
SAN DIEGO, CA 92102
2456 E Street
