1142 Thomas Ave, San Diego, CA 92109 $ 3,200,000 4 Unit Condo Property in Pacific Beach
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For Sale 1142 Thomas Ave, San Diego, CA 92109 $ 3,200,000 4 Unit condo property in Pacific Beach Jon Busse Senior Vice President 760.930.7953 [email protected] Lic No. 00854608 Location 1142 Thomas Avenue is conveniently located in Pacific Beach, just minutes from Downtown San Diego, Mission Bay, Sea World, Balboa Park, Old Town, San Diego International Airport, Mission Valley shopping and entertainment. PACIFIC BEACH PACIFIC OCEAN MISSION BAY FIESTA ISLAND MISSION VALLEY SEA WORLD MISSION HILLS OLD TOWN HILLCREST POINT LOMA LIBERTY STATION SAN DIEGO INTERNATIONAL AIRPORT 2 1142 Thomas Ave OFFERINGMEMORANDUM 3 The Offering Executive Summary Colliers is pleased to offer for Sale this 4 Unit condo mapped apartment property in the Pacific Beach area of San Diego County. 1142 Thomas Ave is a top quality coastal San Diego property located only 3 blocks to the Pacific Ocean and Mission Bay. The property consists of 4 - 3 bedroom, 3 bath townhouse units of approximately 1,400 sf, with fireplaces, stacked full size washer/dryers in each unit, vaulted ceilings, skylights, storage, private balconies and patios. The property has pitched roofs, vinyl windows, 6 garages and 2 surface parking spaces. This highly desirable property offers a unique opportunity for the long term investor to own 4 combo mapped apartment units in one of San Diego’s top beach locations. Convenient Location approximately Short Walk to the Commercial Amenities 3 Blocks From Pacific Ocean and on Garnet and Grand Avenue Mission Bay Disclaimer Neither the Seller nor Colliers International makes any representations, declarations or warranties, express or implied, as to the accuracy or completeness of the information or statements contained in this OM or of any other information provided or statements made by Colliers International, the Seller or their agents, and such material, information, or statements should not be relied upon by prospective purchasers without independent investigation and verification. Prospective purchasers are responsible for obtaining their own independent financial, legal, accounting, engineering, technical and other expert advice. This OM does not purport to be all- inclusive or to contain all the information that a prospective purchaser may require in analyzing the Portfolio. All materials, information or statements are provided as a convenience to prospective purchasers only. 4 1142 Thomas Ave OFFERINGMEMORANDUM 5 Property Features Desirable location Unit # Size (SF) Unit Types • Convenient location approximately 3 blocks from Pacific Ocean, Mission Bay and a short 1 1,413 3 Bedrooms / 3 Bathrooms walk to the commercial amenities on Garnet and Grand Avenues. 2 1,397 3 Bedrooms / 3 Bathrooms 3 1,370 3 Bedrooms / 3 Bathrooms Exterior Features • 6 Garages + 2 open parking spaces 4 1,373 3 Bedrooms / 3 Bathrooms • Pitched Roofs • Balconies Capital Improvements • Fenced Patios • 2017 – 30 year Owens Corning Oakridge Shingle Roof Interior Features • 2015 Milgard Vinyl Dual paned windows installed. • Private balconies and patios • Full sized stacked Washer/Dryer in each unit • Vaulted ceilings • Fireplaces • Skylights • Tile and carpet flooring • Tile counter tops, • Faux wood blinds Desirable Location in Pacific Beach Lot size: 6,245 SF Zoning: R-1 30 Year Owens Corning Oakridge Shingle Roof - 2017 Milgard Vinyl Dual Paned Windows 6 1142 Thomas Ave OFFERINGMEMORANDUM 7 Investment Summary 1142 Thomas Ave, Address: San Diego, CA 92109 Price: $3,200,000 Units: 4 Price/Unit: $ 800,000 Unit Mix: 4 - 3BR/3BA CAP Rate: 2.77% Year Built: 1988 Zoning: R-1 423-151-23-01 423-151-23-02 APN: 423-151-23-03 423-151-23-04 Parking Ratio: 1.03/1,000 SF Gross Building SF: 5,553 SF Land Area SF: 6,245 SF 8 1142 Thomas Ave OFFERINGMEMORANDUM 9 Income & Expenses Assumptions Unit Type Exisiting Pro Forma 1. Existing Rents (3) $3,600 (1) $3,300 Total Income $169,200 $182,400 2. Pro-Forma Rents (4) $3,800 3% Vacancy $5,076 $5,472 3. Operating expenses projected by Cal-Prop management based on Effective Gross Income $164,124 $176.928 other similar 4 unit buildings in their Pacific Beach portfolio. Expenses 4. Property taxes based upon a sale Repairs $11,415 $12,940 price of $3,200,000 Operating Expenses $16,193 $18,356 Real Estate Taxes $39,114 $39,114 Capital Expenses $9,325 $10,571 Total $76,047 $80,981 Net Operating Income $88,077 $95,947 Cap Rate 2.77% 3% 10 1142 Thomas Ave OFFERINGMEMORANDUM 11 Pacific Beach was developed primarily between the 1940’s and 1960’s. The homes in this area were primarily smaller bungalow, cottage and ranch style homes with vintage character. In the Neighborhood Overview past several decades, many of the original dwellings have been replaced or substantially expanded into more modern larger single family homes or small higher density condominium and apartment The neighborhood borders both Mission Bay and the Pacific Ocean and consists predominantly of complexes. The neighborhood is completely built-up and maintains good demand due to its prox- single family homes with a compatible mix of duplexes, other multi-family uses, apartments and imity to both Mission Bay and the Pacific Ocean, and the resulting lifestyle and recreational oppor- small in-fill condominium complexes. Commercial uses are centralized mostly along Garnet Ave- tunities. Property values vary significantly based on proximity to the ocean/bay and view amenities. nue and Mission Avenue and includes several restaurants, bars, shops and markets. Dwelling size, quality, age and condition can also substantially impact property values. PACIFIC BEACH Average household income within the 92109 Zip Code stood at $107,488 in 2019. Average house- hold income within 3 miles of the subject property is at $126,758, 17.2% higher than the county Just south of La Jolla along the San Diego County coastline, Pacific Beach has been a thriving coast- wide average household income of $108,186. The median age in San Diego County stands at 35.9 al community since its inception in 1940. Pacific Beach also boasts broad beaches, a relaxed atmo- years compared to 32.5 years within 3 miles of the subject property. sphere, along with daily and nightly recreation and entertainment. This is a lifestyle that brings together a great climate, relaxing at the beach, Sea World, restaurants, nightlife, ocean views, and MARKET CONDITIONS quick access to Downtown San Diego. There are also a host of activities for the whole family to en- joy including biking, beach volleyball, boogie boarding, surfing, whale watching, sport fishing and Property values for this market area have continued to increase, approximately 3% to 5% over the scuba diving. past 12 months fueled by low inventory levels and favorable interest rates. The average marketing time has been between 9 to 21 days on market and homes have been selling on average at 100% of A few blocks to the South, Mission Beach is San Diego’s lively take on the classic boardwalk beach list price. REO sales and short sales are not a factor in this market. Even with the current economic town with nearly two miles of oceanfront boardwalk, numerous rental shops and Belmont Park, a uncertainty, the real estate market has remained resilient with values maintaining stability with boardwalk amusement park, featuring the Giant Dipper Roller Coaster, originally built in 1925 but increases in some market segments. since restored, the Beach House Grill, miniature golf, bumper cars, rock climbing and an arcade. Mission Bay is also home to SeaWorld San Diego and the largest aquatic park of its kind, surround- ed by grassy parks, playgrounds, picnic tables and miles of paved sidewalks. Rent a sailboat, take a leisurely bayside bike ride, or watch the kids play in this one-of-a-kind oasis. 96 86,839 $126,758 32.5 Walk Score Population Median HH Income Median Age (3 miles) (3 miles) (3 miles) 12 1142 Thomas Ave OFFERINGMEMORANDUM 13 Neighborhood Amenities 3 2 Food and Fun 17 Shopping Plazas 15 16 18 1. Oceana Coastal Kitchen 10 2. World Famous 1. Pacific Beach Market Plaza: 12 Garnet Ave 13 14 Ralph’s, Supercuts, Starbucks, & 3. Amplified Ale Works 19 20 8 Presotea 9 11 Grand Ave 4. El Prez 7 2. Ingraham & Grant Plaza: Staples, 6 5. Baja Beach Cafe Trader Joe’s, Panda Express, 21 Petsmart, Rite Aid, & Verzion 6. Breakfast Republic 22 1 7. Fat Fish Grill 3. Pacific Plaza I: Starbucks, Vons, Einstain Bros, CVS, Jamba Juice, 5 8. Backyard Kitchen & Grill & Petco Ingraham St 9. Crushed 4 10. Cass Street & Gril 1 2 3 11. Dave’s Hot Chicken 12. Bub’s at the Beach 13. Woodstock Pizza 14. SD Taproom Mission Bay 15. Iron Pig 16. Costa Brava 23 17. Broken Yolk 24 25 18. The Patio Pacific Ocean 26 19. Board & Brew 20. Mavericks Mission Blvd 21. Firehouse American Eatery 22. Waterbar 23. Soulshine Vegan Cafe 24. The Mission 25. Saska’s 28 26. Better Buzz 27. Barefoot Bar & Grill 28. Tropics Cantina 27 29. Cannonball 30. Belmont Park 29 31. Draft 30 32. Creperie 31 33. Red Marlin 32 34. Pelican’s on the Bay Mission Bay Dr 35. The Dana on the Bay 36. Royal Rooster 35 37. Sea World 34 37 33 36 Sea World Dr 14 1142 Thomas Ave OFFERINGMEMORANDUM 15 M S O O L R E E L D N A A A J D B O M L L V Sale Comparisons L A O D B 4 U N L V T D A F I N # of Close Price/ Price/ Cap A R Property Price Built Unit Mix D Units Date Unit SF Rate N L U A 1 E M L 1142 Thomas Ave San 4 (3+3) 1400 O C 4 $3,200,000 $800,000 $571 2.77% 1988 E Diego, CA 92109 SQFT S 2 N V L T T A A I A R 3970 Crownpoint Dr, S O E 5 T B M 9 5/21 $6,313,231 $701,470 $589 3% 1969 9 (2+2), 1190 SQFT L E 1 San Diego, CA A AV O B ND 2 GRA