NATIONAL AVE. DOWNTOWN, SAN DIEGO, CA Table of Contents
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1540 NATIONAL AVE. DOWNTOWN, SAN DIEGO, CA table of contents 1540 NATIONAL AVE. Executive Summary Property Overview Opportunity Zone DOWNTOWN, SAN DIEGO, CA 04 06 07 Zoning Information 10 Downtown Attractions 14 Job Market 16 Development Map 20 Comparables 22 Market Overview 28 TIM WINSLOW JASON KIMMEL KEVIN NOLEN 858.546.5436 858.546.5414 858.546.5487 [email protected] [email protected] [email protected] Lic #00891667 Lic #01328121 Lic #01840398 EXECUTIVE SUMMARY 1540 National Ave. is an approximate 18,730 SF multifamily development site in Downtown San Diego. The project is currently zoned MC Mixed Commercial where you can achieve a 4 F.A.R. The site is located in Downtown’s bustling East Village and borders Barrio Logan with great access to the best restaurants, lounges and entailment that Downtown has to offer. The site provides easy access to San Diego, a 10 minute walk to Petco Park and the Gaslamp District and a short drive to Bankers Hill, Balboa Park, the San Diego Airport and Interstate 5. 16TH ST. COMMERCIAL ST. 1540 NATIONAL NATIONAL AVE. AVE. 4 | 1540 National Ave. PROPERTY OVERVIEW ASKING PRICE: BASE MINIMUM & ZONING: Market Price MAXIMUM FAR: Mixed Commercial (MC) Tax Map: 2.0-3.0 Mixed Commercial (MC). This district accommodates a ADDRESS: MAXIMUM FAR THROUGH diverse array of uses, including 1540 National Ave. and 930 BONUS PAYMENT: N/A residential, artist studios, live/work & 924 S 16th St. spaces, hotels, offices, research San Diego, CA 92113 and development, and retail. APN: BONUS FAR FOR SPECIFIC AMENITIES AND/OR PARKS TDR: Commercial and service uses, 535-617-02, 535-617-03, 535-617-04, 535-617-05 1.0 including light industrial and repair, warehousing and distribution, TOTAL SIZE AC: MAXIMUM FAR (WITH ALL INCENTIVES/ transportation, and communication BONUSES/TDR): 0.43 Acres services that are essential for 4.0 the livelihood of businesses and residents of the downtown area are APPROX. TOTAL SIZE SF: also permitted. 18,730 SF WALK SCORE: 83 Property Documents: 6 | 1540 National Ave. CUSHMAN & WAKEFIELD RESEARCH IN THE OPPORTUNITY ZONE: Don’t Miss this OPPORTUNITY ZONE$100 Billion CRE Event Overview of Census Tract 51 Illustrative Example of Opportunity Zone Census Tract 51, San Diego County an Opportunity Zone Investment DAY 0 How it works Investor liquidates assets for $150M. The investor has The program allows for any capital a basis of $50M producing gains realized after December 22, 2017 $100 million in capital gain. to be deferred provided those gains Within 180 days of are invested in one or more “qualified sale, investor deploys all gain into a QOF, opportunity funds” (QOF) within 180 which has at least days. QOFs are required to have at 90% of its assets invested in qualified Y1 least 90% of its capital invested in opportunity zone qualifying investments in designated investments. “opportunity zones.” (See additional discussion below in this report.) Y2 DAY 0 - YEAR 5 After reaching certain holding period hurdles—at five and seven years—the If the investor sells basis for the original capital gain is the QOF investment, Y3 capital gain on the adjusted upward, thereby not only original investment deferring but also reducing tax liability becomes taxable at that time as does tax by up to 15%. The balance of the on any incremental deferred gain, unless the investment is Y4 gain on the QOF investment. disposed of earlier, will be recognized in 2026. Finally, if the opportunity zone investment is held for at least 10 years, there is no capital gains tax on the YEAR 5 - YEAR 7 opportunity zone investment itself. Taxable gain on the original investment is reduced by 10%. Y6 Sounds great… Not available if QOF investment is first made so what’s in the fine print after December 31, 2021. The critical requirement of this 12/31/2026 program is that 90% of QOF assets Hard Assessment must be invested in designated Date: Capital YEAR 7 - YEAR 10 gain tax assessed opportunity zones. Opportunity zone on the original Taxable gain on the gain, regardless funds can either hold qualifying real original investment Y8 of whether QOF About this report: Enterprise's Opportunity360 platform draws together a wide breadth of data, made available for every census tract in estate directly or in equity investments is reduced by an investment has been incremental 5% the country. This report is a tool to help practitioners, policymakers and the public understand the complex place-based factors that shape in qualifying businesses. To qualify, a sold, potentially (15% total). Not creating a cash flow opportunity pathways and outcomes at a local level. OPPORTUNITY ZONE PROGRAM BENEFITS business must: available if QOF planning issue. Y9 investment is NO CAPITAL • Derive at least 50% of its gross first made after The data in this report come from a wide array of third-party providers, and links to data sources are available throughout. The information December 31, 2019. ORIGINAL GAIN 10% ORIGINAL 15% ORIGINAL presented herein has not been independentlyQOF INVESTMENT verified by Enterprise, DATE and Enterprise disclaims responsibility from any instances of inaccurate GAINS TAX ON QOF income from an active trade or DEFERRAL TO 12/31/2026 GAIN REDUCTION GAIN REDUCTION business located in one opportunity information. Detailed methods for index calculations are available at http://www.enterprisecommunity.org/resources/enterprise- INVESTMENT opportunity-index-methodology-18932. zone YEAR 10 -> • Have at least 70% of its tangible Before 12/31/19 X X X X assets be qualifying opportunity Investor can sell zone property QOF interest without incurring any tax Before 12/31/21 X X X • Have been established after liability on capital gain generated by the December 31, 2017 QOF investment. Before 12/31/26 X 8 | 1540 National Ave. cushmanwakefield.com 3 3 zoning information ST ST KALMIA Figure 3-9 KALMIA Figure 3-10 LAUREL ST LAUREL ST Base Minimum Maximum FAR 3.0 JUNIPER ST & Maximum FAR JUNIPER ST Through (2.0) 5.5 IVY ST PACIFIC HWY IVY ST (3.5) Bonus Payment 163 HAWTHORN ST 163 HAWTHORN ST GRAPE ST GRAPE ST6.0 C C A (3.5)FIR ST A FIR ST L L K BASE MINIMUM PACIFIC HWY MAXIMUM FAR I I E F F I T N O O HARBOR DR T 5 D R 5 R ELM ST N ELM ST N N I HARBOR DR A E I I KETTNER KETTNER ST R A ST A ST & MAXIMUM FAR THROUGH S DATE ST INDIA INDIA ST DATE ST ST 6.5 T (4.0) 6.5 CEDAR ST BONUS PAYMENT +1.0 CEDAR ST 3.0 4.0 (4.0) +2.0 +1.0 (2.0) (2.5) 8.0 BEECH ST (5.0) PARK BLVD BEECH ST PARK BLVD 3.0 ASH ST (2.0) ASH ST +2.0 +1.0 +3.0 +1.0 +1.0 4.5 5.5 A ST A ST (3.0) (3.5) B ST B ST 2.0 6.5 +5.0 6TH AVE 6TH (4.0) AVE 4TH COLUMBIA ST ST STATE UNION ST FRONT ST AVE 1ST AVE 4TH AVE 6TH ST STATE UNION ST FRONT ST AVE 1ST C ST COLUMBIA ST C ST 7.0 10.0 +2.0 +5.0 +2.0 +2.0 (4.0) (6.0) BROADWAY BROADWAY +1.0 9.0 See Gaslamp PDO (5.5) +2.5 E ST E ST +3.0 6.5 5.0 8.0 +1.0 CENTRE CITY COMMUMITY PLAN CENTRE CITY COMMUNITY PLAN (4.0) (3.0) (5.0) +2.0 +4.0 6.0 F ST F ST 94 (3.5) 94 PARK BLVD PARK See Gaslamp PDO PARK BLVD PARK 5.5 AVE 10TH 16TH ST AVE 10TH 2.0 (3.5) G ST G ST See Marina PDO 6.0 See Marina PDO +7.0 14TH ST (3.5) 6.0 14TH ST MARKET ST (3.5) M MARKET ST MEAN HIG E A H TIDE N HIGH TIDE LINE LINE 8TH AVE 8TH +2.0 +1.0 ISLAND ST ISLAND ST HARBOR DR HARBOR DR 8TH AVE 8TH +1.0 J ST J ST 3.0 16TH ST (2.0) 2.0 K ST K ST 3.0 (2.0) 6.5 (4.0) L ST 3.0 L ST +4.0 +3.0 4.0 (2.5) (2.0) 4.5 (3.0) IMPERIAL AVE IMPERIAL AVE 1540 +2.0 1540 5.0 (3.0) +1.0 COMMERCIAL ST NATIONAL COMMERCIAL ST NATIONAL 5.5 (3.5) +2.0 3.0 AVE. +1.0 AVE. 6.0 (3.5) LOGAN AVE5 +2.5 5 (2.0) 16TH ST 16TH ST LOGAN AVE 6.5 (4.0) +3.0 NATIONAL AVE 7.0 (4.0) +4.0 Maximum FAR shown may not be NATIONAL AVE Maximum FAR shown may not be achievable after including other SIGSBEE 8.0 (5.0) achievable after including other 3.0 NEWTON AVE +5.0 height and bulk restrictions contained NEWTON AVE height and bulk restrictions contained 9.0 (5.5) (2.0) +7.0 in other sections of the Centre City in other sections of the Centre City SIGSBEE Planned District Ordinance. Planned District Ordinance. 10.0 (6.0) Park/Open Space Overlay San Diego San Diego BEARDLEY Park/Open Space Overlay Trolley Bay BEARDSLEY Bay Trolley Note: Information shown outside the Centre City Planned Note: Information shown outside the Centre City District Boundary is for planning purposes only. Planned District Boundary is for planning purposes only. The Downtown Community Plan does not apply to 10 10 lands within the jurisdiction of the San Diego The Downtown Community Plan does not Unified Port District.