Grossmont Apartments 45 Units | LA MESA
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Grossmont Apartments 45 units | LA MESA OFFERING MEMORANDUM PAGE 1 INVESTMENT PROPERTIES | SAN DIEGO MULTIFAMILY Table of Contents Investment Summary ......................... 5 LEMON AVENUE Site Plan ELEMENTARY SCHOOL Investment Highlights Investment Details Build & Unit Features SUN VALLEY Financials .......................... 17 GOLF CLUB Comparables ......................... 18 Rent Comparables Sale Comparables Market Overview 24 Jackson Drive ......................... Walmart La Mesa San Diego BRIERCREST GROSSMONT Exclusive Advisors PARK SHOPPING CENTER :: Jim Neil - Lead Broker SHARP GROSSMONT Center Drive HOSPITAL Senior Vice President +1 858 646 4785 [email protected] Grossmont Center Drive :: Eric Comer Senior Vice President +1 858 546 4683 Fletcher Parkway [email protected] ALTERRA - 297 UNITS :: Merrick Matricardi $1,573 AVG. RENT (1X1) $2,170 AVG. RENT (2X2) Senior Associate +1 858 546 4661 [email protected] PRAVADA - 230 UNITS $1,509 AVG. RENT (1X1) www.cbre.com/invsdmultifamily $2,059 AVG. RENT (2X2) PAGE 2 PAGE 3 Mellmanor Drive Grossmont Apartments Grossmont Apartments Investment Summary 45 units | LA MESA 8561 MELLMANOR DRIVE | 8605 MELLMANOR DRIVE 5680 AMARILLO AVENUE | 5670 AMARILLO AVENUE Investment Opportunity CBRE is pleased to present the opportunity to acquire a 45-unit apartment home community located in the eastern portion of San Diego County in the City of La Mesa. The offering consists of four separate parcels with two-story garden style buildings and a mix of one and two-bedroom units. Grossmont Apartments enjoys very good drive-by visibility with frontage along Fletcher Parkway and Grossmont Center Drive. It is located across the street from the Grossmont Trolley Station, Sharp Grossmont Hospital and East County’s top shopping destination. Grossmont Center is the home to Target, Wal-Mart, Macy’s, Barnes & Noble, 24-hour Fitness, Petco and numerous other retailers, restaurants and entertainment venues. Grossmont Apartments offer a value-add opportunity. While the property is very well maintained, there is an opportunity for an investor to complete upgrades to unit interiors and building exterior to achieve higher rents. PRICE: $6,975,000 UNITS: 45 $/UNIT: $155,000 $/ GROSS SQ FT $250.81 POST RENOVATED CAP: 5.75% POST RENOVATED GRM: 11.3 PAGE 5 Grossmont Apartments Site Plan Nagel Ave 8605 MELLMANOR 6 UNITS Amarillo Ave Mellmanor Dr 8561 MELLMANOR 27 UNITS 5680 AMARILLO Lambda Ln 6 UNITS Fletcher Parkway 5670 AMARILLO 6 UNITS PAGE 6 | GROSSMONT APARTMENTS Investment Highlights RENOVATION UPSIDE - Grossmont Apartments provides the SDSU, Mission Valley, Old Town and Downtown to the west, El opportunity for the next owner to complete upgrades to the unit Cajon and Santee to the east and Lemon Grove all the way down interiors, common areas and building exterior to a higher level to San Ysidro to the south. The average weekday ridership is and close the gap between current rents and market leaders. approximately 122,400 people. Pravada at Grossmont is located across the street and achieves average rents of $1,803/unit or $1.98/sf. EXCELLENT FREEWAY ACCESS - Located within ½ mile of the Interstate 8/Highway 125 Interchange, which provides CLOSE TO RETAIL & SHOPPING - Grossmont Apartments is located unmatched access to all major employment centers of central San less than half a mile from the Grossmont Center shopping mall Diego County. with nearly 1-million square foot of retail and anchored by Walmart, Target, Macy’s and Sports Authority. Other convenient PROXIMITY TO EMPLOYMENT - Grossmont Apartments is in close retail services close by include, Costco, Best Buy, Baby R Us and proximity to large businesses and employment including Sharp several other neighborhood shopping centers. Hospital, Grossmont School, Grossmont Regional shopping mall, San Diego State University. Within a 5-mile radius of Grossmont EXCELLENT DRIVE-BY VISIBILITY – With frontage along Fletcher Apartments, there is an estimated employment population of over Parkway and Grossmont Center Drive, the property enjoys 139,000 with the majority of people working in white collar very good exposure to drive-by trafc. There is opportunity occupations (60%). to further improve the curb appeal and drive-by visibility by installing property signage and updating the building façade and OPERATIONAL SCALE - With a total of 45-units, the Grossmont landscaping. Apartments is sufciently large enough to justify the cost of a full-time leasing and full-time maintenance employee. Adequate TRANSIT ORIENTED - The property is located across the street stafng would enable a more responsive and cost effective from the Grossmont Transit Center, which is served by the green approach to managing the property. Additionally, an investor and orange line of the San Diego Trolley and several MTS Bus could implement a RUBS program to increase cash ow. routes. The trolley runs in 15-minute intervals, linking La Mesa to PAGE 7 Investment Details | 8561 Mellmanor Drive BUILDING DESCRIPTION UTILITIES Address 8561 Mellmanor Drive TYPE PROVIDER PAID BY BILLING METHOD La Mesa, CA 91942 Water Helix Water District Owner Billed every other month Units 27 Sewer: City of La Mesa Owner Billed every other month APN 490-564-14-00 Trash: EDCO Owner Billed every month Year Built 1964 Gas/Electric: San Diego Gas & Electric Tenant Direct Bill Rentable SF 16,620 SF Land Area 0.83 acres or 36,155 SF 2 (two), 2-story buildings with access from Building Conguration Mellmanor Drive and Amarillo Avenue UNIT MIX Wood frame buildings with stucco exterior, # OF UNITS TYPE SIZE (SF) TOTAL SF Construction covered catwalk exterior entry 23 1bd/1ba 600 13,800 Roof Low pitched roof with composite asphalt shingle 4 2bd/1ba 705 2,820 27 Total/Avg 616 16,620 Windows Single pane aluminum frame windows 8’ ceiling height. Most units have popcorn Ceiling ceilings Parking 30 parking spaces MECHANICAL/ELECTRICAL/PLUMBING Heating Gas wall heaters in living room Cooling Electric wall air conditioning units Cooking Energy Gas Meters Separately metered for gas and electric Water Heating 125-gallon gas red, hot water heater 3 washers and 3 dryers. The laundry equipment Laundry Equipment is owned. JURISDICTION OF TAXES Tax ID Number 490-564-14-00 Millage Rate 1.17869% Fixed Assessments $4,185.36 Tax Year Fiscal Year 2014-2015 PAGE 8 | GROSSMONT APARTMENTS Investment Details | 8605 Mellmanor Drive BUILDING DESCRIPTION UTILITIES 8605 Mellmanor Drive TYPE PROVIDER PAID BY BILLING METHOD Address La Mesa, CA 91942 Water Helix Water District Owner Billed every other month Units 6 Sewer: City of La Mesa Owner Billed every other month APN 490-564-13-00 Year Built 1978 Trash: EDCO Owner Billed every month Rentable SF 3,600 SF Gas/Electric: San Diego Gas & Electric Tenant Direct Bill Land Area 0.25 acres or 10,890 SF 1 (one), 2-story building with access from Building Conguration Mellmanor Drive Wood frame buildings with stucco exterior, UNIT MIX Construction covered catwalk exterior entry # OF UNITS TYPE SIZE (SF) TOTAL SF Roof Low slung pitched roof with composite asphalt shingle 6 1bd/1ba 600 3,600 8’ ceiling height. Most units have popcorn Ceiling ceilings Windows Single pane aluminum frame windows Parking 8 parking spaces MECHANICAL/ELECTRICAL/PLUMBING Heating Gas wall heaters in living room Electric wall air conditioning units in living Cooling room Cooking Energy Gas Meters Separately metered for gas and electric 100-gallon gas red commercial hot water Water Heating heater 2 washers and 2 dryers. The laundry equipment Laundry Equipment is leased. JURISDICTION OF TAXES Tax ID Number 490-564-13-00 Millage Rate 1.17869% Fixed Assessments $1,304.74 Tax Year Fiscal Year 2014-2015 PAGE 9 Investment Details | 5670 Amarillo Avenue BUILDING DESCRIPTION UTILITIES Address 5670 Amarillo Avenue TYPE PROVIDER PAID BY BILLING METHOD La Mesa, CA 91942 Water Helix Water District Owner Billed every other month Units 6 Sewer: City of La Mesa Owner Billed every other month APN 490-561-06-00 Trash: EDCO Owner Billed every month Year Built 1978 Gas/Electric: San Diego Gas & Electric Tenant Direct Bill Rentable SF 3,810 SF Land Area 0.29 acres or 12,632 SF 1 (one), 2-story building with access from Building Conguration Amarillo Drive UNIT MIX Wood frame building with stucco and T-11 # OF UNITS TYPE SIZE (SF) TOTAL SF Construction wood sliding exterior, covered catwalk exterior entry, 4 1bd/1ba 600 2,400 2 2bd/1ba 705 1,410 Roof Low slung pitched roof with composite asphalt shingle 6 Total/Avg 616 3,810 8’ ceiling height in select units. High vaulted Ceiling ceilings in 3 units, popcorn ceiling in 2 units Windows Single pane aluminum frame windows Parking 8 parking spaces MECHANICAL/ELECTRICAL/PLUMBING Heating Gas wall heaters in living room Electric wall air conditioning units in living Cooling room Cooking Energy Gas Meters Separately metered for gas and electric 100-gallon gas red commercial hot water Water Heating heater 1 washer and 1 dryers. The laundry equipment Laundry Equipment is leased. JURISDICTION OF TAXES Tax ID Number 490-564-13-00 Millage Rate 1.17869% Fixed Assessments $1,304.74 Tax Year Fiscal Year 2014-2015 PAGE 10| GROSSMONT APARTMENTS Investment Details - 5680 Amarillo Avenue BUILDING DESCRIPTION UTILITIES Address 5680 Amarillo Avenue TYPE PROVIDER PAID BY BILLING METHODS La Mesa, CA 91942 Water Helix Water District Owner Billed every other month Units 6 Sewer: City of La Mesa Owner Billed every other month APN 490-561-06-00 Trash: EDCO Owner Billed every month Year Built 1978 Gas/Electric: San Diego Gas & Electric Tenant Direct Bill Rentable SF 3,505 SF Land Area 0.26 acres or 11,326 SF 1 (one), 2-story building with access from UNIT MIX Building Conguration Amarillo Drive Wood frame building with stucco and T-11 # OF UNITS TYPE SIZE (SF) TOTAL SF Construction wood sliding exterior, covered catwalk exterior entry, 6 1bd/1ba 600 3,505 Low slung pitched roof with composite asphalt Roof shingle Windows Single pane aluminum frame windows Parking 8 parking spaces MECHANICAL/ELECTRICAL/PLUMBING HVAC Wall heaters in each units and wall A/C unit Meters Separately metered for gas and electric 100-gallon gas red commercial hot water Water Heating heater Laundry Equipment 1 washer and 1 dryer.