INVESTMENT OR OWNER-USER OPPORTUNITY IN DOWNTOWN SAN DIEGO

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INVESTMENT OR OWNER-USER OPPORTUNITY IN

D O W N TO W N S A N D I E G O

1133 6TH AVENUE, SAN DIEGO, CA 92101

RYAN KING, CCIM

Senior Vice President | Lic #01885401 858.458.3322 | rking@voitco.com

KIPP GSTETTENBAUER, CCIM

Senior Vice President | Lic #01405420 858.458.3345 | kipp@voitco.com

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INVESTMENT HIGHLIGHTS

EXCELLENT OWNER-USER OPPORTUNITY OR INVESTMENT

This is a rare opportunity to purchase a well-located mixed-use project with office or retail. An owner user

can qualify for an SBA loan and occupy the 2nd floor of the property.

LOCATION! LOCATION! LOCATION!

In the heart of the Downtown Financial District near the ‘B’ Street corridor. Adjacent to the trolley and Gaslamp Quarter, the property is walking distance to

numerous amenities.

EXPENSIVE RESTAURANT IMPROVEMENTS

& INFRASTRUCTURE

The property has 2 restaurant users with a long-time tenancy. Stout Public House is a local staple for lunch

and happy hour and Pho Express does terrific lunch, dinner, and takeout business.

DESIRABLE HIGH-END CREATIVE OFFICE SPACE

With original wood floors, high-vaulted ceilings, and exposed ceilings the office space is ideal for numerous user groups. The space is built out with

numerous private offices.

SALE PRICE: $4,250,000 ($464/SF)

IN PLACE CAP RATE: 5.06%

PROFORMA CAP RATE: 6.97%

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4180 La Jolla Village Drive, Suite 100, La Jolla, CA 92037 | 858.453.0505 | 858.408.3976 F | www.voitco.com

Licensed as Real Estate Brokers & Salesperson by the DRE. 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. ©2018 Voit Real Estate Services, Inc. All Rights Reserved.

RYAN KING, CCIM

Vice President | Lic #01885401 858.458.3322 | rking@voitco.com

KIPP GSTETTENBAUER, CCIM

Senior Vice President | Lic #01405420 858.458.3345 | kipp@voitco.com

SITE PLAN

5,227 SF

Land Size

9,158 SF

Building Size

57% LEASED

% Leased

534-181-03, 04

Parcel Number

CCPD-A, SAN DIEGO

Zoning

TWONumber of Stories

TWO EXISTING RESTAURANTS

Tenants

SALE PRICE: $4,250,000 ($464/SF)

2ND FLOOR OFFICE LAYOUT

IN PLACE CAP RATE: 5.06%

PROFORMA CAP RATE: 6.97% 4,266 SF AVAILABLE - AVAILABLE FOR USER OR OWNER WILL CONSIDER LEASE BACK

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ADDRESS: 939-945 5TH AVENUE

SAN DIEGO, CA 92101 751-755 5TH AVENUE

SAN DIEGO, CA 92101 933 5TH AVENUE

SAN DIEGO, CA 92101 726-730 MARKET STREET SAN DIEGO, CA 92101

BUYER: Urban Coastal Development Karina’s Group Evan Rundle Cliff Clifford

SELLER: BRINKA, Inc. Ahern Fritz C & Susana Trust Payam Bahari Susanna Starcevic

SALE DATE: 09-03-2019 10-30-2020 10-07-2020 01-29-2021

SALE PRICE $8,200,000 $4,870,000 $1,795,000 $4,725,000

AVG. $/SF $348.94 $761.77 $359.00 $440.15

BUILDING SIZE: 23,500 6,393 5,000 10,735

LAND AREA: 0.11 Acres 0.11 Acres 0.06 Acres 0.11 Acres

BUILDING TYPE: Class B Office Retail Restaurant Retail Freestanding Retail Residential

1 2 3 4

AVERAGE PRICE/SF: $477

SALE COMPARABLES

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4 3

2 1

SITE

5TH AVENUE 5TH AVENUE 9TH AVENUE 9TH AVENUE PARK BOULEVARDPARK BOULEVARD

FRONT STREETFRONT STREET

BROADWAY BROADWAY B STREET B STREET

ASH STREET ASH STREET

MARKET STREET MARKET STREET

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Current 2021 ProForma Income

Base Rent $248,410.56 $350,794.56

Expense Reimbursements $44,176.32 $45,927.09

Gross Income $292,586.88 $396,721.65

Vacancy/Collection Allowance (43/5%) $- $(19,836.08) Effective Gross Income $292,586.88 $376,885.56

Total Expenses $(77,502.32) $(80,573.84)

NET OPERATING INCOME $215,084.56 $296,311.73

Expenses

Real Estate Taxes (Reassesed) $46,750.00 $46,750.00

Insurance $8,300.00 $8,300.00

Utilities $15,000.00 $15,000.00

Management (3%) $7,452.32 $10,523.84

TOTAL EXPENSES $77,502.32 $80,573.84

EXPENSES/SF $0.71 $0.73

SF 9,158 SF

Price $4,250,000 $464/SF

Cap Rate 5.06% 6.97%

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SUITE TENANT

SQ FT BLDG %

START EXPIRE

$/SF DEPOSIT

MONTHLY RENT ANNUAL

PRO $/SF PRO ANNUAL

OPTIONS INCREASES

1125

Stout Public House

3,622 36%

06/01/07 05/31/27

$4.37 NNN

$17,810.00

$15,568.80

$186,825.60

$4.37

$186,825.60

(1) 5-year at no less than 4%

4%

1131 Pho Express

1,270 21%

07/09/09 07/31/29

$2.44 NNN

$4,435.00

$5,132.08

$61,584.96

$2.44

$61,584.96

None 3%

1133

Vacant / Potential 1-Year Lease Back/

Available For User

4,266

43% - $- $- $2.00

$102,384.00

TOTAL 9,158 SF

100%

- $20,700.88

$248,410.56 $350,794.56

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OWN VS. LEASE ANALYSIS

Purchase Assumptions Lease Assumptions

Size (Square feet) 4,266 Size (Square feet) 4,266

Purchase Price plus improvements $4,250,000 Lease rate per sq ft/month FSG $1.50

Monthly lease $6,399

Start-up Costs Start-up Costs

10% Down Payment $425,000 Prepaid Rent/Security Deposit $0

Improvements $0 Improvements $0

Total out of pocket costs $425,000 Total out of pocket costs $0

Monthly Costs Per sq ft Monthly Costs Per sq ft

Mortgage payment $18,356 Lease Payment $ 1.50 $6,399

Operating Exp/Prop Taxes $ 0.71 $36,346 Operating Exp/Prop Taxes $ - $0

Total Monthly Costs $54,703 Total Monthly Costs $6,399

Monthly Ownership Benefits (Estimated) Monthly Lease Benefits (Estimated)

Tax Benefits Tax Benefits

Mortgage int. deduction (5yr avg) $3,553 Depreciation Benefit $0

Operating Exp/Prop Tax deduction $14,539 Operating Exp/Prop Tax deduction $0

Depreciation deduction $2,179 Lease deduction $2,560

Other Benefits Other Benefits

Rental Income from Ground Floor Tenants $20,701 Rental Income $0

Avg. Appreciation 3.0% $10,625 Avg. Appreciation $0

Total Ownership Benefits $51,597 Total Lease Benefits $2,560

Effective Monthy Cost To Occupy 2nd Floo $3,106 Effective Monthly Cost: $3,839

Annual Effective Cost Difference $8,801 Average Annual Principal Paydown $113,697

Annual Wealth Creation $122,499 15 Year Wealth Creation $1,837,479

*Analysis shows an Owner-User occupying the 23,843 SF on 2nd Floor with the purchase of the building and the income in place versus leasing at current lease terms.

It is cheaper from a net occupancy standpoint to OWN versus lease.

LEASE OWN

ADDITIONAL BENEFITS OF OWNERSHIP

*Terms subject to change. Do not rely on the assumptions used in this analysis; please consult your financial advisor;

approval subject to credit qualification/not a commitment to lend.

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TENANT PROFILES

STOUT PUBLIC HOUSE

Stout Public House is downtown San Diego's neighborhood Irish pub. We feature a quick and satisfying lunch including daily specials.

Stop by after work or before a ball game for one of the best happy hours in town. Stout offers a large selection of fresh starters, soups, salads, and entrées. Stylish décor, great food, excellent service and a wide selection of beers, wines, and spirits make Stout Public House San Diego's premier place for dining and socializing.

PHO XPRESS

Family recipes for pho, rice dishes & other Vietnamese classics at this simple, no-frills eatery.

With almost 600 reviews on Yelp, Pho Xpress maintains a 4 star rating.

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10,033

6th Avenue & B Street

7,535

7th Avenue & B Street

10,592

5th Avenue & B Street

7,607

6th Avenue & C Street

TRAFFIC COUNTS

POPULATION 1 MILE 3 MILE 5 MILE

2021 Total Population: 51,564 199,234 495,802 2026 Population: 53,564 202,390 501,502

Pop Growth 2021-2026: 0.8% 0.3% 0.2%

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2021 Total Households: 27,946 87,139 188,887

HH Growth 2021-2026: 0.8% 0.3% 0.2%

Median Household Inc: $73,322 $75,736 $67,910 Median Home Value: $733,444 $773,398 $668,051

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RYAN KING, CCIM

Senior Vice President | Lic #01885401 858.458.3322 | rking@voitco.com

KIPP GSTETTENBAUER, CCIM

Senior Vice President | Lic #01405420 858.458.3345 | kipp@voitco.com

4180 La Jolla Village Drive, Suite 100, La Jolla, CA 92037 | 858.453.0505 | 858.408.3976 F | www.voitco.com

Licensed as Real Estate Brokers by the DRE. 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. ©2021 Voit Real Estate Services, Inc. All Rights Reserved.

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