MARKETING PROPOSAL PREPARED FOR: PATHFINDER PARTNERS, LLC
24 UNITS | BUILT: 1992 RENOVATED: 2018 3956-3996 SHASTA STREET SAN DIEGO, CA 92109
a Berkshire Hathaway and Jefferies Financial Group company
INVESTMENT ADVISORS ED ROSEN 858.257.4715 ED.ROSEN@BERK ADIA.COM CA BRE LICENSE #01010225
T YLER SINKS 858.257.4706 T YLER.SINKS@BERK ADIA.COM CA BRE LICENSE #01910220
JOHN CHU 858.257.4713 JOHN.CHU@BERK ADIA.COM CA BRE LICENSE #00966982
FINANCING CHAD WILLIAMS 858.260.3010 CHAD.WILLIAMS@BERK ADIA.COM
SAN DIEGO OFFICE 4275 EXECUTIVE SQUARE, SUITE 900 L A JOLL A, CA 92037 PHONE: 858.683.7930 FAX: 858.683.7931 BERK ADIA.COM
Irreplaceable Multifamily Asset Located in Pacific Beach
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THE PROPERTY
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THE LOCATION
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PROPERTY FINANCIALS
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MARKET OVERVIEW
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TEAMS AND SERVICES
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Table of Contents
THE OPPORTUNITY
The Opportunity
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Berkadia is pleased to present a rare
Located in the Crown Point neighborhood,
and unique opportunity to acquire an
residents are just a short walk or bike ride
irreplaceable multifamily asset located in
away from the beach, bay, and numerous
the premier coastal community of Crown
water activities. Residents are also in
Point in Pacific Beach. In 2018, Driftwood
close proximity to numerous dining and
underwent a $3 million renovation,
retail amenities, popular restaurants,
completely rebuilding the community to
beautiful golf courses, as well as quick
condominium specifications. Every building
access to Interstate-5, linking the property
element was redone including the roofs,
to all of San Diego County. Driftwood's
interiors, parking, landscaping, and the
in-demand and remarkable Crown Point
addition of several amenities including
location makes it a perfect opportunity for
storage lockers, pet wash station, car
an investor looking for a unique asset in a
charging stations and firepit. Driftwood
dynamic A+ location.
The Opportunity
Executive Summar y
consists of 24 two-bedroom, two-bath spacious apartment homes that average 970 square feet plus patio / balcony, and feature high-end flooring and appliances with modern details throughout. Apartment homes include stainless-steel appliances, quartz countertops, modern slab thermofoil cabinetry, gas stoves, and in-unit washer / dryer.
The Opportunity
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Investment Highlights ALL TWO-BED, TWO-BATH UNITS Driftwood is comprised of entirely two-bedroom / twobathroom apartment homes. All units are appointed with upgraded interiors including stainless-steel appliances, quartz countertops, modern slab thermofoil cabinetry, gas stoves, and in-unit washer / dryer. IN THE EXCLUSIVE CROWN POINT AREA OF PACIFIC BEACH
The Opportunity
Driftwood is located in the heart of Crown Point, Pacific Beach, a vibrant, centrally located beach community and popular rental submarket. Crown Point is located on the peninsula in the middle of Mission Bay, within biking and walking distance of Mission Beach and Pacific Beach. CLOSE TO THE BEST BEACHES IN SAN DIEGO AND BLOCKS TO THE BAY Driftwood is just a few blocks from Mission Bay, which includes 27 miles of shoreline - 19 of which are sandy beaches. Within steps from the property are 3.2 miles of beaches including Pacific Beach, one of the top beaches and surf spots on the west coast as well as Mission Beach and the beaches of La Jolla. The subject property is also within walking distance to Sail Bay, giving tenants a desirable place to live with close proximity to several water and recreational activities.
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The Opportunity
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High-End Custom Homes Built by Lennar Located directly across the street from the asset is an extraordinarily rare, fully entitled, coastal infill homebuilding opportunity in one of San Diego's most desired neighborhoods (homes averaging $1,400,000). The property is entitled for 30 single-family homes and Lennar expects to break ground in 2019. The entitled plans consist of an attractive unit mix of 18 three-bedroom / three-bathroom homes, six three-bedroom / four-bathroom homes, and six three-bedroom / three-bathroom / loft homes.
Proximity to Endless Retail and Entertainment The Opportunity
In addition to being located on the coast, Driftwood is near Grand and Garnet Avenues, Pacific Beach's main thoroughfares, providing access to an abundance of retail, grocery stores, eateries, bars and nightlife activities, as well as Interstate-5, linking the property to all major employment centers and Downtown San Diego. Major nearby retailers include Sprouts Farmers Market, Vons, Trader Joe's, Starbucks, and CVS.
Discount to Homeownership Average Home Sale Price in Pacific Beach (2019) - $1,400,000 Down Payment of 20% - $280,000 / Loan Amount of 80% - $1,120,000 Monthly Mortgage Payment at 4% - $5,347 Taxes at 1.12% (Per Month) - $1,307 Insurance (Per Month) - $83 Monthly CapEx Reserve - $200 Total Monthly Cost of Homeownership - $6,937 Current Monthly Rent at Driftwood - $3,171
The Opportunity
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The Property
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Proper t y Summar y
P R O P E RT Y N A M E ADDRESS C IT Y, S TAT E
MECHANICAL | ELECTRICAL | PLUMBING Driftwood 3956-3996 Shasta Street San Diego, CA 92109
C O U NT Y
San Diego
PA R C E L N U M B E R(S)
424-481-11
BUILDING B U I LT NUMBER OF BUILDINGS N U M B E R O F S TO R I E S D E N S IT Y AC R E AG E TOTA L R E NTA B L E S F AV E R AG E U N IT S F EXTERIOR ROOF PA R K I N G
H E AT I N G WAT E R H E AT E R
Gas Forced Air Central Heat Central Hot Water Boilers
F I R E P R OT E CT I O N
Extinguishers
The Property
L O C AT I O N
U N I T S P E C I F I C AT I O N S 1992 | Renovated in 2018 Four Two 24 Units Per Acre 1.04 23,268 SF 970 SF Wood Frame | Stucco Concrete Tile 54 Total Spaces, Two Handicap, Two Electric Car Charging Spaces
R E F R I G E R ATO R
Samsung
S TOV E / OV E N
Frigidaire
M I C R O WAV E
Frigidaire
D I S H WA S H E R
Frigidaire
WA S H E R / D RY E R
Frigidaire
DISPOSAL
Yes
C O U NT E RTO P S
Quartz
C A B I N E TS L I G HT F I X T U R E S F LO O R I N G
Slab Thermofoil Recessed Lighting Vinyl Plank Flooring
The Property
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The Property
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The Property
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Interior Amenities LED RECESSED LIGHTING IN KITCHEN I N - U N I T F R I G I D A I R E WA S H E R / D R Y E R C E I L I N G FA N S I N B E D R O O M S / D I N I N G / L I V I N G A R E A S ( F O U R T O TA L ) LUXURY VINYL PL ANK FLOORING F U L LY E Q U I P P E D K I T C H E N W I T H S TA I N L E S S - S T E E L A P P L I A N C E S
The Property
GA S S TOVES QUAR T Z COUNTE R TOPS IN KITCHE N A N D B AT H R O O M S TILE BACK SPL A SH MODERN SL AB THERMOFOIL CABINETRY IN K I T C H E N A N D B AT H R O O M S K I T C H E N PA N T R Y * DRY BAR * WA L K- I N C L O S E T S * P R I VAT E PAT I O / B A L C O N Y * S E L E C T U N I T S O N LY
The Property
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Community Amenities FIREPIT AND LOUNGE AREA COMMUNIT Y BARBECUE P E T- F R I E N D LY C O M M U N I T Y D O G WA S H S TAT I O N B IKE R ACK S A S S I G N E D PA R K I N G
The Property
T W O E L E C T R I C C A R C H A R G I N G S TAT I O N S E L E C T R O N I C PA C K A G E L O C K E R INDIVIDUAL S TOR AGE UNIT S W I T H I N WA L K I N G D I S TA N C E T O M I S S I O N B AY A N D T H E PA C I F I C O C E A N P R O X I M I T Y T O E N D L E S S R E TA I L , E AT E R I E S , A N D E N T E R TA I N M E N T E A S Y A C C E S S T O P U B L I C T R A N S P O R TAT I O N A N D F R E E WAY S
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The Property
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The Property The Property
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Floor Plans
The Property
URCHIN TWO BED | TWO BATH 1,045 SF
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The Property
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ABALONE TWO BED | TWO BATH 952 SF
The Property
Floor Plans
MANTA - FIRST FLOOR TWO BED | TWO BATH 940 SF
MANTA - SECOND FLOOR TWO BED | TWO BATH 940 SF
The Property
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The Location
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The Location
Location Map
Driftwood 3956-3996 Shasta Street | San Diego, CA 92109 The Location
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Pacific Beach Overview The lure of the surf and sand by day, and abundance of bars and restaurants at night, help make the seaside neighborhood of Pacific Beach, an immensely popular residential destination for college students and The Location
young professionals. Within the 92019 ZIP code where Pacific Beach is located, there are roughly 350 restaurants, bars, and coffee shops. People can walk to an average of five establishments within five minutes. Trendy hotel bars and casual cafes line the 3.2-mile-long boardwalk, while Mission Boulevard and the surrounding streets are dotted with women's clothing boutiques, yoga studios, and casual eating spots, Inland, the grassy slope of Kate Sessions Park has sweeping views of the city and San Diego Bay.
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The Location
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Garnet Avenue Garnet Ave is a San Diego attraction that boasts some of the top nightlife in the city, specifically between Ingraham St and Mission Blvd. Garnet Ave is packed with shops, entertainment venues, and a farmer's market on Tuesday's. The intersection of Ingraham and Garnet, is less than one mile from the property, and home to the Pacific Plaza Shopping Center. The Location
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C R OW N P O I N T
M I S S I O N BAY
C RYS TA L PI E R
Crown Point is located on the peninsula in the
Located just minutes from Downtown is San Diego's
Built in 1927, this historic wooden pier is a serene
middle of Mission Bay, within biking and walking
water wonderland, Mission Bay Park. The 4,600-
spot to enjoy sweeping coastal views, watch surfers
distance of Mission Beach and Pacific Beach. It is a
acre aquatic playground is the largest of its kind in
at play, whale-watch, or catch a fish at the far end
great neighborhood for active adults and children,
the world. Surrounded by 27 miles of shoreline to
of the pier. For a livelier scene, the intersecting
with access to parks, beaches, and boardwalks.
explore, Mission Bay is bordered by several beach
boardwalk offers a three-and-a-half mile stretch of
communities, each with their own distinct vibe.
eclectic shops and restaurants.
The Location
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Tourmaline Beach and Surf Park Tourmaline Beach is the neighborhood's northernmost beach and one of San Diego's most coveted surf spots. Tourmaline Beach is located off Mission Boulevard (near the area it becomes La Jolla Boulevard) at the bottom of Tourmaline Street. It is a great spot for longboarding, and families also come here to explore its tide pools at low tide.
Kate Sessions Park The Location
Named after a renowned San Diego horticulturist and landscape architect, this 139acre park is located on a hilltop between the communities of La Jolla and Pacific Beach. This amazing Pacific Beach Park boasts some of the most stunning views of Mission Bay, the Pacific Ocean, and the city below. The manicured portion of the park contains a playground, a large grassy area for picnicking, frisbee, or soccer, and barbecue pits for cookouts.
Exceptional Demographics - Median income within a three-mile radius of Driftwood ($76,400) is 31.2% higher than the nation as a whole ($58,235), and 6.8% higher than the San Diego MSA ($71,537). - Approximately 56% of residents age 25 and older within a three-mile radius, have attained a bachelor’s degree or higher, compared to 36% for Greater San Diego. 75% or residents living within a three-mile radius, work in white-collar positions. - The median home value within a three-mile radius of Driftwood, according to Tetrad is $1,018,400; up 43.9% from the metro's median home value of $707,887.
The Location
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Property Financials
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Unit Mix and Rent Schedule Avg. InPlace Rent/SF
Berkadia Mkt. Rent (Avg. InPlace Rent + 4%)
Berkadia Mkt. Rent/SF
Units
Type
Unit SF
Total SF
Avg. InPlace Rent
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2 Bed / 2 Bath
940
11,280
$3,205
$3.41
$3,333
$3.55
6
2 Bed / 2 Bath
953
5,718
$3,074
$76,440
$917,280
$1.52
6
2 Bed / 2 Bath
1,045
6,270
$3,202
$84,736
$1,016,832
$1.47
970
23,268
$3,171
$576,052
$6,912,624
$1.33
Property Financials
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IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. © 2020 Berkadia Proprietary Holding LLC Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. #00843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details visit: http://www.berkadia.com/ legal/licensing.aspx Property Financials All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.
BERKADIA
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Pro Forma Income & Expenses INCOME Gross Market Rent Gain / Loss to Lease Total Revenue Income Non-Revenue Unit Vacancy (3%) RUBS Storage Income Parking Income Pet Rent & Other Income Total Other Income EFFECTIVE GROSS INCOME
Property Financials
OPERATING EXPENSES Administrative Advertising & Promotion Payroll & Salaries Repairs & Maintenance / Turnover Management Fee (4%) Utilities Contracted Services Landscaping & Grounds Insurance Capital Reserves Total Expenses NET OPERATING INCOME BEFORE TAXES
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Berkadia Pro Forma $949,915 ($9,499) $940,416 ($13,596) ($28,212) $20,400 $5,400 $7,200 $6,427 $39,427 $938,035
Per Unit $39,580 ($396) $39,184 ($567) ($1,176) $850 $225 $300 $268 $1,643 $25,352
$3,000 $4,800 $6,240 $9,600 $37,523 $24,000 $4,200 $7,800 $7,200 $3,600 $107,963 $830,072
$125 $200 $260 $400 $1,563 $1,000 $175 $325 $300 $150 $4,498 $34,586
IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. © 2020 Berkadia Proprietary Holding LLC Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. #00843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx Property Financials All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.
BERKADIA
Property Financials
WITH A UNIT MIX COMPRISED OF ALL TWOB E D , T W O - B AT H UNITS , DRIFTWOOD I S C U R R E N T LY 9 7 % OCCUPIED, WITH AN AV E R A G E I N - P L A C E RENT OF $3,171 PER MONTH.
Property Financials
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Market Overview
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SAN DIEGO, CALIFORNIA | MSA San Diego Market Over view
Millennial Destination The San Diego MSA had one of the highest percentages of millennials in the nation at 27% in 2017, above the national average - National Association of Realtors
Best Big City to Live In Market Overview
San Diego ranked No. 5 among the "Best Big Cities to Live In" - WalletHub
INTRODUCTION The San Diego-Carlsbad, CA, Metropolitan Statistical Area (MSA) is located entirely within San Diego County, spanning 70 miles of the California coastline from the border of Mexico to the shores of Orange County. Home to more than 3.3 million residents, the San Diego MSA is the fourth most populated metro in the state. The dynamic and positive business environment of the San Diego metro area makes it one of the world’s leading business locations, in addition to being a center for hightech innovation fostered by world-class universities and colleges. With an active labor force of nearly 1.6 million workers, the highly educated, diverse, and growing San Diego metro area is one of the major population centers of Southern California. Dozens of new developments are underway, and hundreds of new jobs are being added to the market, driving population growth metrowide. Today Greater San Diego is a vital national defense asset and home to the largest concentration of military resources in the world.
BERKADIA
Job Opportunities San Diego was named one of the "Best Cities for Jobs in 2019" - WalletHub
Best City for Tech Jobs San Diego ranked No. 2 among the "Best Cities for Tech Jobs" in the United States, behind only Seattle - PCMag Market Overview BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW
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Demographics DEMOGRAPHICS
25%
36.9
66% OF WORKERS ARE IN
KEY RENTER AGE GROUP
WHITE-COLLAR
(18-35 YEARS OLD)
MEDIAN AGE OF RESIDENTS METROWIDE
POSITIONS METROWIDE
Market Overview
3.4m
798.7k
Greater San Diego’s population is forecast % over to grow
36% of residents age
3.0
the next five years, surpassing 3.4 million residents
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BERKADIA
Market Overview
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25 years and older hold a bachelor's degree or higher, compared to 30% nationally
398.0k 34
% of Metro Nearly San Diego households earn $100,000 or more annually, compared to 25% nationally
533.4k
$
43% of the region's
The metro area’s median household income is projected to reach $80,592 by 2024, up
housing units are renter occupied, compared to 31% nationally
80.6k
12.7% from 2019
ECONOMIC AND DEMOGRAPHIC OVERVIEW
Metro Industr y Breakdown METRO EMPLOYMENT TRENDS AVERAGE ANNUAL WAGE BY OCCUPATION
Health Care Practitioners & Technicians Business & Financial Operations
Education
Office & Administrative Support
Sales
Production
Transportation & Material Moving Personal Care & Services Food Preparation & Services
129.1k $96.0 k $
79.0k
$
Metro San Diego added approximately 20,400 jobs during the 12-month period ending in April 2019, of which 7,600 were in the Education and Health Services sector.
Industry Breakdown
Construction
15%
65.2k
42.2k $42.2 k $41.6 k $37.1 k $30.6 k $29.3 k
6%
Trade, Transportation, & Utilities
$
Education & Health Services
14%
$
Source: BLS Occupational Employment Statistics Survey
BERKADIA
With breakthrough technology companies and research organizations, the largest military concentration in the world, and a strong tourism industry, the San Diego region has one of the most diverse and dynamic economies in the country.
SAN DIEGO, CA, MSA EMPLOYMENT BY SECTOR
Professional & Business Services
17%
Other Services
Financial Activities
5%
Government
4%
17%
Manufacturing
8%
Leisure & Hospitality
13%
Information
2%
Source: BLS Current Employment Statistics Survey
ECONOMIC AND DEMOGRAPHIC OVERVIEW 29 Market Overview BERKADIA
Market Overview
Management
Metro Employment Trends METRO EMPLOYMENT TRENDS APRIL 2019
3.0%
the metro's monthly unemployment rate was down
10 bps annually Employment Trends
12%
80,000
9%
40,000
Market Overview
6%
0
3%
0%
(40,000)
2009
2010
*Projected
2011
2012
2013
2014
Unemployment Rate
APRIL 2019
2015
2016
2017
2018 2019*
(80,000)
SAN DIEGO, CA, MSA
LARGEST EMPLOYERS University of California, San Diego
34,640
Naval Base San Diego
34,190
Sharp HealthCare
18,360
County of San Diego
17,410
Scripps Health
14,940
San Diego Unified School District
13,820
Qualcomm, Inc.
11,800
City of San Diego
11,540
Kaiser Permanente San Diego
9,610
UC San Diego Health
9,100
Sources: UC San Diego; UC San Diego Health; San Diego County CAFR, June 2018; City of San Diego CAFR, June 2018
Jobs Added / Lost
20,400 jobs
were created metrowide, a
1.4%
Y-o-Y increase
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BERKADIA
Market Overview
BERKADIA
ECONOMIC AND DEMOGRAPHIC OVERVIEW
SAN DIEGO, CALIFORNIA | MSA
Demand Drivers LIFE SCIENCES PFIZER
1,200+
$
Life Sciences Firms
Economic Impact
133,000+
$
Jobs Supported
33.6 billion 118 million+
Average Annual Wage
Market Overview
San Diego is home to one of the fastest-growing and premier life science clusters in the world, generating a $33.6 billion economic impact while supporting over 133,000 jobs directly and indirectly metrowide. The region boasts over 1,200 life sciences companies and 80 research institutions, drawing employees from a pool of more than 7,000 annual STEM graduates. University of California, San Diego receives the state's third-largest amount of National Institutes of Health (NIH) funding at $438 million in FY2018.
TOURISM MISSION BAY
35.8 million
$
Visitors in 2018
Visitor Spending
199,100
$
Jobs Supported
11.3 billion 940 million
Tax Revenues
Known as a vacationer's paradise, San Diego is one of the world's top visitor and convention destinations featuring over 70 miles of coastline, ample hotel and convention space, and numerous entertainment options. Revenue-wise, leisure and hospitality is the region’s secondlargest industry and supports approximately 199,100 jobs, over 13% of all county jobs. A record 35.8 million people visited San Diego in 2018, up 2.3% annually, who spent $11.3 billion and generated $940 million in taxes. The region has a total of 62,590 hotel rooms with 17.8 million room nights sold in 2018. Conventions generate $1.1 billion annually to the regional economy. Market Overview
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BERKADIA
ECONOMIC AND DEMOGRAPHIC OVERVIEW
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SAN DIEGO, CALIFORNIA | MSA
Demand Drivers DEFENSE
NAVAL AIR STATION - NORTH ISLAND
337,000
Military-Related Jobs
15,000
More Navy Sailors by 2025
$
50 billion
Gross Regional Product
20
More Ships by 2025
Market Overview
The San Diego region is home to the largest military concentration in the world. Serving as the principal home port to the Pacific Fleet with five active-duty military bases and two reserve bases, the Department of Defense plays a massive role in the San Diego economy. The military generates $50 billion of Gross Regional Product (GRP) for the county, representing 22% of the region’s total GRP. The sector supports 337,000 direct and indirect jobs, accounting for one out of every five jobs in the area. In 2018, direct spending related to defense totaled $26 billion.
HEALTH CARE UC SAN DIEGO MEDICAL CENTER
25
$
6.9 billion
Hospitals
Wages Generated Annually
183,300
18,360
Health Services Jobs Supported
Sharp Health System Jobs
Metro San Diego offers some of the most sophisticated health care facilities in the country. With 25 hospitals, one in every 10 jobs in the metro area is health service related. Leading health care companies Kaiser Permanente San Diego, Scripps Health, and Sharp HealthCare all have facilities in Greater San Diego. UC San Diego Health is one of the most highly regarded medical schools in the country, producing over 100 medical doctors (MDs) and MD / Ph.D. graduates annually. The industry generates over $6.9 billion in wages annually.
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Market Overview
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BERKADIA
ECONOMIC AND DEMOGRAPHIC OVERVIEW
Construction and Development CONSTRUCTION AND DEVELOPMENT
1.5 million SF Facility
$
3 billion
Improvements
San Diego County Regional Airport Authority approved a multiphase proposal to renovate and expand the San Diego International Airport. Under the $3 billion plan, the project will replace Terminal 1 with a 1.5 million-square-foot, 30-gate facility that will increase the number of gates at the airport from 51 to 61. Additional plans include improvements to support facilities at Terminal 2 and a new parking structure, which is still in the design phase. The Airport Authority is projecting the addition of 100,000 more departing and arriving flights by 2050. Construction is expected to start in 2021, with the first 19 gates completed by 2024. An additional 11 gates would take two more years to build.
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MANCHESTER PACIFIC GATEWAY
$
1.5 billion
Project
3 million
SF of Total Space Construction began in June 2018 on Manchester Pacific Gateway, the $1.5 billion redevelopment of the U.S Navy’s downtown property and the largest private real estate project in San Diego. The 13.5-acre project will include six buildings totaling 3 million square feet within eight city blocks. The development will include two Manchester hotels, 1.1 million square feet of office space, 391,000 square feet of restaurants and shops, 4.5 acres of public open space, and 2,400 underground parking spaces. The development will also be home to the U.S. Navy Regional Headquarters and the Seaport office and retail building. The project is scheduled to be completed in 2021. The overall economic benefit to the San Diego region is projected to be $15 billion.
ECONOMIC AND DEMOGRAPHIC OVERVIEW 33 Market Overview BERKADIA
Market Overview
SAN DIEGO INTERNATIONAL AIRPORT
Construction and Development CONSTRUCTION AND DEVELOPMENT SYCUAN CASINO
CHULA VISTA BAYFRONT PARKS
Market Overview
$
226 million
Annual Economic Impact Once Complete
700
20,000
On March 27, 2019, the new 12-story Sycuan Casino expansion opened. The $226 million project added 500,000 square feet and including 300 guest rooms, 60,000 square feet of additional gaming space, meeting and event spaces, pool and garden area, a lazy river, and seven new restaurants. In September 2018, Sycuan Casino began hiring to fill 700 new casino and resort positions, making it one of the largest employers in the El Cajon area.
BERKADIA
Market Overview
2.1 billion
Investment
Jobs Created
34
$
BERKADIA
Permanent Jobs Generated A 535-acre Chula Vista Bayfront Master Plan, a world-class, waterfront resort development, has been approved and will include 220 acres of parks and green space, 2,850 hotel rooms, and 600,000 square feet of restaurant, retail, and marina-support uses. The development is expected to spur additional retail and amenities in the area. Combined, the future Harbor and Sweetwater Parks will account for over half of the new park space. The project is projected to generate a countywide impact of $2.8 billion during the construction phases starting in 2020, resulting in the creation of 10,000 construction jobs and 20,000 permanent jobs. Once complete, the project will generate an annual economic impact of $2.1 billion.
ECONOMIC AND DEMOGRAPHIC OVERVIEW
Construction and Development CONSTRUCTION AND DEVELOPMENT 7TH & MARKET
$
2.2 billion
400 million
Investment
Development
14,000+
763,000
Construction Jobs Construction is halfway finished on the $2.2 billion Mid-Coast Trolley extension, adding 10.9 miles and nine new stations including a terminus at Westfield UTC mall. The expansion will extend services from Downtown San Diego to the University City community in late 2021. In the process, services will pass through major activity hubs, such as Old Town, UCSD, and Westfield UTC. In addition to mitigating the congestion from the projected 19% increase in population and 12% increase in employment predicted by the year 2030, the extension will also generate over 14,000 jobs during construction. In August 2018, the agency received the first of the 36 new trolley cars. The new trolley service is expected to attract an additional 20,000 transit riders per day.
BERKADIA
$
SF of Mixed-Use Space San Diego-based Cisterra Development received approval for a $400 million mixed-use development in the East Village. 7th & Market will include a 763,000-square-foot, 39-story, mixed-use building. Plans include 159 residential units, 160,000 square feet of Class "A" office space, and a signature rooftop restaurant. A connected 17-story building will house the city’s first five-star Ritz-Carlton hotel, which will include 153 rooms and 59 Ritz-Carltonbranded condominiums averaging 2,000 square feet in size, in addition to a ground-floor, 30,000-square-foot, gourmet grocer and market. The project has an estimated completion date of 2022.
ECONOMIC AND DEMOGRAPHIC OVERVIEW 35 Market Overview BERKADIA
Market Overview
MID-COAST TROLLEY
Construction and Development CONSTRUCTION AND DEVELOPMENT SDSU WEST
LEGACY INTERNATIONAL CENTER
Market Overview
$
3 billion
Development
1.6 million+
127-room
In August 2018, the city of San Diego approved a two-year lease for San Diego State University (SDSU) to use San Diego County Credit Union Stadium in Mission Valley, while residents approved Measure G in November 2018, enabling SDSU to negotiate a purchase for the 166-acre site from the City of San Diego. SDSU is planning to develop a world-class satellite campus, including an innovation district on the site dubbed SDSU West. The estimated $3 billion development would also include a new 35,000-seat Aztecs football stadium, two hotels, 95,000 square feet of retail space, 4,500 residential units, a river park, and 1.6 million square feet of office space. The $250 million new stadium is slated to begin in early 2020 and complete for the 2022 NCAA football season.
BERKADIA
Market Overview
160 million
Proposed Development
SF Office Space Proposed
36
$
BERKADIA
Hotel
Construction is underway on the $160 million Legacy International Center on 18 acres in Mission Valley. The five-building center will serve as the headquarters for televangelist Morris Cerullo's operation. The Christian-themed resort and conference center will include over 15 two-story structures with a 127-room hotel, event and meeting space for corporate functions, a combined welcome center and museum space with Christian-themed exhibits, 500-seat theater, at least two restaurants, an outdoor old-world-style international market, replicas of Roman catacombs, and Jerusalem’s Wailing Wall. The center is expected to average 2,873 daily vehicle trips when it opens to the public in January 2020.
ECONOMIC AND DEMOGRAPHIC OVERVIEW
Construction and Development CONSTRUCTION AND DEVELOPMENT CIVITA
$
65 million
2 billion
Redevelopment
Development
340,000
900,000
SF of Office Space The former home of The San Diego Union-Tribune in Mission Valley was redeveloped to a modern and highly amenitized work campus named Amp&rsand, which opened its main phase in October of 2018. The $65 million redevelopment included two interconnected buildings with 340,000 square feet of office space on the 13-acre site. The campus features nine patios and 64,000 square feet of outdoor collaborative space, an amphitheater for multifunction gatherings, a fitness studio, concierge services, cafĂŠ, and an onsite bike center. The next phase will begin construction on 130 apartments in 2019. In September 2018, the campus secured its first tenant, financial services company Encore Capital Group, who leased the entire third floor of one building.
BERKADIA
$
SF of Commercial Space Construction began in 2010 on the 230-acre Civita master-planned community, Mission Valley's largest development. The $2 billion plan calls for more than 4,700 homes and apartments, 480,000 square feet for a retail center, 420,000 square feet for offices, and several dozen acres in parkland and open space. With several residential developments, the Civita Recreation Center, and the Civita Park already opened, Civita launched a 20-passenger, clean-energy shuttle service in December 2017 to provide community residents easy access to the Metropolitan Transit System trolley stations. Build-out is expected to continue until 2025.
ECONOMIC AND DEMOGRAPHIC OVERVIEW 37 Market Overview BERKADIA
Market Overview
AMP&RSAND
Construction and Development CONSTRUCTION AND DEVELOPMENT RIVERWALK GOLF COURSE REDEVELOPMENT
Market Overview
200-acre
Mixed-Use Development
$
2 billion
Master-Planned Community Developer Hines is working with the city of San Diego to redevelop the 200acre Riverwalk Golf Course in Mission Valley to a $2 billion master-planned community. The redevelopment project will take several years to complete and includes up to 4,300 housing units, up to 1 million square feet of office space, a new Green Line trolley stop, and an 80-acre park. If approved by the city council in 2019, the master-planned community construction could begin in 2020, with the first residences available for occupancy by year-end 2022.
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BERKADIA
Market Overview
BERKADIA
GENERAL DYNAMICS NASSCO
$
3 billion
Six-Vessel Program
1,000
New Jobs Generated In September 2018, General Dynamics NASSCO began construction on the first 742-foot-long ship for the U.S. Navy’s John Lewis fleet oiler program, slated for completion in late 2020. A total of six vessels will be built at a cost of about $3 billion. The shipyard also could eventually win the right to build an additional 11 oil vessels, bringing another $5 billion and providing work well into the next decade. In addition, NASSCO was awarded a $218.7 million contract to fix and modernize the Bonhomme Richard (BR), an 843-foot-long amphibious assault ship. NASSCO is expected to hire an additional 800 to 1,000 workers for the oiler program.
ECONOMIC AND DEMOGRAPHIC OVERVIEW
Construction and Development CONSTRUCTION AND DEVELOPMENT METROPOLITAN AIRPARK
70-acre
Mixed-Use Development
$
1.2 billion
Investment
The Port of San Diego approved a $1.2 billion plan to redevelop Seaport Village, replacing the 36-year-old Seaport Village retail center with a mixed-use development, dubbed Seaport San Diego. The 70-acre redevelopment project on the downtown waterfront will include three hotels (a 500-room Virgin Hotel, a 350-room Yotel hotel, and a 475-bed hostel), a 480-foot observation tower (SkySpire), a 151,000-square-foot OdySea San Diego Aquarium, a 600-student charter high school, 19,000 square feet of office space, 390,000 square feet of retail and restaurant space, and an enlarged and upgraded commercial fishing industry. The project is expected to complete in the next five to seven years. In early 2019, the Port approved $2.2 million in improvements for Seaport Village.
BERKADIA
$
1 billion+
Investment
4,000
Permanent Jobs Generated More than $1 billion in aviation and commercial amenities are planned for Brown Field Municipal Airport in the Otay Mesa neighborhood of San Diego. The development known as Metropolitan Airpark will be constructed in four phases to include aviation facilities with up to 200 hangars, over 1.3 million square feet of industrial and commercial space, a solar field, as well as hotels and restaurants. Among the first elements on the 331-acre site will be a new fixed-base operations facility. The entire project is expected to create 4,000 permanent jobs, 8,000 long-term construction jobs, and generate over $500 million annually for the local economy. The Metropolitan Airpark is positioned to become a major commercial hub between U.S. and Mexico.
ECONOMIC AND DEMOGRAPHIC OVERVIEW 39 Market Overview BERKADIA
Market Overview
SEAPORT SAN DIEGO
Rent | Occupancy RENT / OCCUPANCY
1,895
$
2.0% Y-o-Y
BERKADIA 40 Market Overview
BERKADIA
NORTHWEST SAN DIEGO APARTMENT SUBMARKET
$2,000
El Cajon - Occupancy & Ask Rent
$1,400
91%
$1,100
88%
$800
85% *PROJECTED
2013
2014
2015 Rent
2016
2017 2018 Occupancy
$1,992
94%
$1,893
$1,700
$1,848
97%
$1,753
Annual rent growth has held steady in the face of continued new supply, growing 2.0% annually in March 2019 to $1,895 per month. The metro's flood of development has helped effective rent increase 26.5% since 2013. Concessions for new units in the submarket are typically lower in Northwest San Diego than they are for new inventory Downtown. By year-end 2019, effective rent is expected to grow an additional 5.1% reaching $1,992 per month.
100%
30 bps annually
$1,662
Market Overview
The Northwest San Diego apartment submarket is located near one of the fastest-growing employment centers in San Diego and in close proximity to the coast, offering countless outdoor activities. As a result, the submarket has become a prime target area for renters, particularly among Millennials, Generation X, and approximately 34,830 students attending San Diego State University. In the first quarter of 2019, the submarket's occupancy rate reached 96.6%, increasing 30 basis points from one year prior. With new deliveries continuing to outpace absorption in this submarket, occupancy is slated to settle at 96.4% by year-end 2019, on par with the submarket's five-year average.
in 1Q19, up
96.6%
$1,537
in March 2019, up
OCCUPANCY RATE
$1,497
EFFECTIVE RENT
2019*
$500
ECONOMIC AND DEMOGRAPHIC REPORT
Education EDUCATION HIGHER EDUCATION
215.1k
students metrowide
UC SAN DIEGO
No. 10
among the top public schools in the nation
The largest university in Metro San Diego, the University of California-San Diego (UCSD) in La Jolla, offers more than 200 degree programs across six colleges. UCSD is ranked among the top 15 research universities worldwide. San Diego State University (SDSU) generates over $5.6 billion in economic activity for the San Diego Region and $457 million in tax revenue streams for state and local governments annually. Over 60% of SDSU graduates remain in the metro. With approximately 9,070 students, the University of San Diego (USD) is the largest private university in San Diego and offers 42 undergraduate and 38 graduate degrees from seven academic colleges.
SAN DIEGO, CA MSA
LARGEST HIGHER EDUCATION University of California - San Diego
38,770
San Diego State University
34,830
Palomar College
24,500
San Diego Mesa College
20,960
Southwestern College
19,750
Grossmont College
17,310
MiraCosta College
15,440
San Diego Miramar College
14,950
California State University - San Marcos
14,510
San Diego City College
14,110
Sources: college websites; California Community Colleges Chancellor's Office; College Navigator
BERKADIA
ECONOMIC AND DEMOGRAPHIC REPORT 41 Market Overview BERKADIA
Market Overview
San Diego is home to a highly educated population, with 36% of residents age 25 and older holding a bachelor's degree or higher, compared to 30% nationally. With more than 215,130 students, Greater San Diego boasts one of the highest student populations in the West.
Lifest yle and Enter tainment LIFESTYLE AND ENTERTAINMENT PETCO PARK
42,440+
GASLAMP QUARTER
total stadium capacity
Market Overview
Home to more than 70 miles of coastline, state-of-the-art hotel and convention spaces, and a diverse mix of entertainment options, Greater San Diego is one of the top destinations in the world. Whether it is hundreds of beachgoer gatherings at the waterfront or hundreds of thousands of people attending Comic-Con, the metro is constantly bustling with activity.
180+
bars and restaurants
GASLAMP QUARTER
Located in Downtown San Diego, the Gaslamp Quarter is San Diego's premier entertainment district where residents can indulge in history, world-renowned restaurants, trendy shops, or explore nationally recognized nightlife venues. In addition to its energetic nightlife, the area is rich with theaters, art galleries, concert venues, and museums. At the edge of Downtown, Petco Park is home to Major League Baseball's San Diego Padres, where more than 42,440 fans can gather for each game throughout the summer and fall. By 2035, Downtown San Diego is anticipated to grow to 90,000 residents, attracting an influx of businesses and developments to the area. Just minutes from Downtown, Balboa Park spans over 1,200 acres. The cultural park serves as an oasis, featuring 17 museums, tranquil gardens, and the world-famous San Diego Zoo. Both the San Diego Zoo and its Safari Park in Escondido generate an economic impact of approximately $1.5 billion in San Diego County.
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BERKADIA
Market Overview
BERKADIA
ECONOMIC AND DEMOGRAPHIC REPORT
Transpor tation TRANSPORTATION
86m
served in FY18
San Diego residents have access to an extensive transportation network linking major employment centers, entertainment, and recreation facilities. Key interstates serving the county include 5, 8, 15, and 805, with numerous state routes available. In addition, three border crossings provide a direct link to Mexico.
SAN AIRPORT
24m
passengers served in 2018
SAN DIEGO INTERNATIONAL AIRPORT
Market Overview
MTS RIDERS
Mass transit options include Amtrak, MetroLink, SPRINTER and COASTER commuter rail services. The Metropolitan Transit System (MTS) Bus and Trolley network operates 95 bus routes and three Trolley lines on 53 miles of double-tracked railway. In FY 2018, MTS served over 86 million riders and is in the midst of a $2.2 billion Mid-Coast Trolley expansion. San Diego International Airport (SAN) contributes nearly $12 billion annually to the region’s economy, while supporting 118,000 direct and indirect jobs. SAN served a record 24 million passengers in 2018, up nearly 10% annually.
Sources: Berkadia; Tetrad; CoStar; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Fortune/Money.CNN.com; CoStar; Forbes; Moody’s; Wikipedia; Axiometrics; San Diego Reader; San Diego Business Journal; Times of San Diego; Balfour Beatty Construction; California Department of Transportation; San Diego Union-Tribune; Port of San Diego; San Diego Regional Chamber of Commerce; Southwestern College; SANDAG; General Growth Properties; Rouse Properties; Greater San Diego Association of Realtors; University Communications and Public Affairs; Academy Ranking of World Universities; Metropolitan Transit System; Price Waterhouse Cooper; Bisnow; University of California, San Diego; San Diego State University; Palomar College; Grossmont College; San Diego City College; MiraCosta College; California State University, San Marcos; San Diego Miramar College; Cuyamaca College; San Diego Military Advisory Council; San Diego Tourism Authority; San Diego International Airport Authority; San Diego Regional EDC; San Diego Community News Group; NewGeography.com; Bloomberg; IHS Global Insight; CoreLogic; California Community College Chancellors Office; Naval Base San Diego; USA Today; Western Regional Partnership; San Diego Military Advisory Council; San Diego Unified School District; Sharp HealthCare; Scripps; Kaiser Permanente; San Diego County, City of San Diego; NBC San Diego; 10News San Diego; Construction Dive; Manchester Pacific Gateway; Visit San Diego; California Life Sciences Association; Otay Mesa Chamber of Commerce; Riverwalk San Diego; FOX 5 San Diego; Coast and Valley Homes; Legacy San Diego; SanDiegoVille; The Daily Aztec; Times of San Diego; Cisterra Development.
BERKADIA
ECONOMIC AND DEMOGRAPHIC REPORT 43 Market Overview BERKADIA
ByBYThe Numbers THE NUMBERS TOTAL POPULATION
MEDIAN AGE
2010
3,095,313
2010
35.3
2019*
3,340,619
2019*
36.9
2024*
3,442,217
2024*
38.2
Growth Rate (2019 - 2024)
3.0%
TOTAL HOUSEHOLDS
MEDIAN HOME PRICE*
Market Overview
2010
1,086,865
April - 2018
$1,150,000
2019*
1,178,317
April - 2019
$1,401,000
2024*
1,216,115
Growth Rate Y-o-Y
Growth Rate (2019 - 2024)
3.2%
MEDIAN INCOME
21.8%
*Pacific Beach - ZIP code 92109
EMPLOYMENT GROWTH
2010
$59,845
April - 2018
1,480,000
2019*
$71,537
April - 2019
1,500,400
2024*
$80,592
Growth Rate Y-o-Y
Growth Rate (2019 - 2024)
1.4%
12.7%
RENT SHARE OF WALLET
RENT VS. OWN
National - 2019
27.2%
Average Mortgage Payment**
$7,091
Northwest San Diego - 2019
31.8%
Effective Rent***
$1,895
National - 2024*
27.6%
Difference
$5,196
Northwest San Diego - 2024*
36.0%
*Projected Annual Rent / Median Household Income
BERKADIA 44 Market Overview
BERKADIA
*Projected **30-yr fixed; 20% down; 5.10% interest rate; 0.79% CA property taxes; $1,000 annual homeowners insurance; median price in 92109 ***Northwest San Diego Submarket
ECONOMIC AND DEMOGRAPHIC REPORT
Teams and Services
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PROFESSIONAL EXPERIENCE
As Southern California’s leading Multifamily Advisor, Ed Rosen brings over 27 years of commercial real estate experience to Berkadia. Along with his partner, John Chu, and talented Multifamily Team, Mr. Rosen specializes in all types of multifamily properties throughout San Diego, Orange County, the Inland Empire, and Las Vegas. Mr. Rosen and his team have closed nearly 400 transactions with total consideration in excess of $12 billion over the last 27 years. Previously with Cushman & Wakefield and Burnham Real Estate, Mr. Rosen has been recognized with various honors
CA BRE License #01010225
the Top 5 producers for the past six years. Mr. Rosen received his Bachelor of Science Degree in Business Administration from San Diego State University in 1987 and is still an active alumnus and is especially involved in funding SDSU athletics. He is a member of the San Diego Apartment Association, active member of and contributor to the National Multi-Housing Council (NMHC), and is involved in several civic organizations which include the Children’s Hospital and Health Center, the United Jewish Community Center as well as an avid donor to the La Jolla Playhouse, Conrad Prebys Hospital, and The University of San Diego Burnham-Moores Center for Real Estate.
Teams and Services
ED ROSEN Managing Director 858.257.4715 Ed.Rosen@berkadia.com
including Cushman & Wakefield’s Top Producers in the Southern California Region for the past six years. While with Burnahm Real Estate, Mr. Rosen completed over $6.2 billion in transactions from 1998 – 2007. He was ranked amongst
PROFESSIONAL EXPERIENCE
Tyler Sinks is the Associate Director of Multifamily Investment Sales for Berkadia’s San Diego office covering the Southern California markets. Prior to joining Berkadia in 2015, Mr. Sinks worked at Cushman & Wakefield where he led Private Capital Multifamily transactions throughout Southern California. Mr. Sinks began his real estate career working with institutional office clients as a landlord advisor at Cushman & Wakefield. In January 2013, Mr. Sinks joined the Rosen / Chu team to focus exclusively on private capital, multifamily transactions across Southern California. Since joining the Multifamily Investment Sales Team in 2013, he has been involved in over $1.3 billion in total consideration. TYLER SINKS Associate Director 858.257.4706 Tyler.Sinks@berkadia.com CA BRE License #01910220
Mr. Sinks received his Bachelor’s degree in Economics from Boston College where he as a Three-Time AllAmerican on the Varsity Sailing Team and he is currently pursuing his Masters in Real Estate degree from The University of San Diego. Mr. Sinks holds a California Real Estate Broker License and a CCIM 101, Financial Analyst for Commercial Investments designation. Teams and Services
BERKADIA
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PROFESSIONAL EXPERIENCE
John Chu, a Managing Director with Berkadia Real Estate Advisors, has over 27 years of experience in commercial real estate, specializing in multifamily communities with a focus on the Southern California and Las Vegas marketplaces. Prior to joining Berkadia in October of 2015, Mr. Chu was with Cushman & Wakefield and Burnham Real Estate. Mr. Chu has completed over $12.2 billion in transactions. While at Cushman & Wakefield, he was in the Top 10 brokers in the San Diego office from 2008 – 2015 and amongst the Southern California Region’s Top Producers. He was ranked amongst the Top 5 while at Burnham Real Estate and was also the Top Producer for 2002 – 2005. Mr. Chu is also one of the founding members of the Burnham-Moores Center for Real Estate4 at the University of San Diego.
Teams and Services
JOHN CHU Managing Director 858.257.4713 John.Chu@berkadia.com
Mr. Chu received both his Bachelor of Science in Business Administration and Masters from San Diego State University. He is a member of the San Diego Apartment Association San Diego Board of Realtors and the Building Owners and Managers Association (BOMA).
CA BRE License #00966982
PROFESSIONAL EXPERIENCE
Chad Williams is a Director of the Berkadia San Diego office as well as the Berkadia Manufactured Housing Group. In this role, he is primarily responsible for providing fixed and floating rate loans above $1 million for a variety of loan terms and purposes including permanent, mini-perm, structured bridge, and mezzanine for all asset types, with a specialization in manufactured housing communities and RV communities nationwide. Prior to joining Berkadia, Chad was a mortgage banker with Keystone Commercial Capital, where he and his team were long term correspondents for over 30 life insurance companies.
CHAD WILLIAMS Director 858.260.3010 Chad.Williams@berkadia.com
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Teams and Services
BERKADIA
Mr. Chu received both his Bachelor of Science in Business Administration and Masters from San Diego State University. He is a member of the San Diego Apartment Association San Diego Board of Realtors and the Building Owners and Managers Association (BOMA).
Teams and Services
The Berkadia Network From coast-to-coast, our national
YOUR PROPERTY, OUR PROMISE:
advisor network guarantees that you receive the personal attention, the most timely updates and wide-scale exposure across domestic markets. We cover 50 major U.S. markets and hundreds of submarkets
Local Expertise. Regional Dominance. National Power.
Advisors are alerted in real-time of
Berkadia offers an unmatched comprehensive marketing strategy to meet the
every new listing across our network
evolving needs of our clients and partners. Our national sales and investment platform focuses solely on the multifamily industry and delivers the refined and timely insights to target active, private and institutional buyers across all geographic markets.
Our culture of teamwork and constant interoffice communications provide maximum exposure across all markets
Teams and Services
BERKADIA
49
STRATEGY Local Expertise, National Reach
Teams and Services
Dedicated & Experienced Advisors
Powerful National Database
High-Probability Buyers List
Access To Capital
Berkadia’s advisors have decades of
Our team leverages our
Our proven strategy retargets new
Berkadia is a leading principal and
experience and a vast understanding
fully-integrated OmniView system
property opportunities to buys
intermediary in providing debt and
of their local multifamily markets. This
to track all assets and the realtime
who have not been selected on
equity solutions for multifamily and
industry-leading expertise generates
flow of capital, locating active and
previous deals. This integrated,
commercial real estate nationwide.
value for apartment owners, investors,
emerging buyers across all markets.
longview marketing effort sets
lenders and servicers.
Berkadia apart and assists in
Greater flexibility of customized
Provides access to real-time market
maximizing price and value for
finance options from Berkadia,
Advisors’ vast relationships allow
tracking to support underwriting
seller while building relationships
a non- bank regulated,
them to make recommendations and
and financial analysis
across the pool of buyers.
closely held corporation
In-depth current and historical
Each offer received by the brokers is
Highly rated customer-focused
information on each property
stored in OmniView
loan originator and servicer
draw investors to specific properties Our deep bench of support divisions
with more than $205 billion
focus on a number of critical tasks, allowing our advisors to focus
Dedicated research division harnesses
Buyers that made an offer not
solely on meeting your goals
industry and third-party data to create
selected by the sellers are retargeted
actionable marketing insights
for relevant current opportunities
Extensive experience with similar transactions in the respective local markets, our advisors can effectively navigate the changing marketplace to ensure a successful closing
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Teams and Services
BERKADIA
under management in 2017
Berkadia’s commitment to the thoughtful and strategic development of the latest
Online Buyer Registration
Round-the-Clock Seller Access
Instant access to documents
Seller can view all prospects, buyer feedback, offer activity and marketing status updates on a
Interested buyer tracker and reporting available
real-time basis
Teams and Services
Technology Solutions For Today’s Challenging Markets
to seller Delivers effective team communication and Ability to prioritize and follow on all inquiries immediately
coordination throughout the marketing process
technologies and multi-channel marketing capabilities are at the center of our pro-active and innovative approach. Our mission is to advance and deploy the right technologies, at the right time, in order to achieve targeted exposure for your property to
Real-Time Market Database
Secure delivery of deal-sensitive documents to potential buyers and outside brokers
Nationwide buyer and sale information instantaneously accessible Access to current and historical market information to support underwriting and financial analysis
ready buyers across every market, and to deliver a seamless and
Tracking of assets and loans across all U.S. markets
timely sales process and closing.
Teams and Services
BERKADIA
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SERVICES
Providing the Targeted Exposure That Gets Results Teams and Services
The multi-channel marketing interface of Berkadia’s OmniView
Dedicated Property Website
Email / Online Campaign
Each individual property receives an exclusive,
Email launched within hours of approval to drive
customized and mobilefriendly, responsive website
traffic to property website
Provides rapid speed-to-market with the capability
Reach thousands of qualified buyers
to make instant changes
system sets the industry standard
Automatically notifies buyers of new listings
in buyer targeting. It provides
Online document center with integrated activity
the speed, focus and versatility
tracking systems
to meet the demands of today’s sellers. Your property will not only catch the attention of buyers, but connect to the right buyers quickly and efficiently.
Print and Outsourced Media High-quality marketing materials and packages built in-house Local, regional and national assignment exposure Reach more potential buyers, including those not currently active
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Teams and Services
BERKADIA
TIMELINE
Teams and Services
Comprehensive Marketing Process Berkadia’s marketing process is focused on the successful timely closing of each client’s property assignment. We pride ourselves on creating the industry standard with our exhaustive due diligence and innovative and hard-won efficiencies. We take no shortcuts to deliver the very best for our clients and we believe the difference shows.
Weeks 1-3
Weeks 3-5
Weeks 5-6
Weeks 7-8
Weeks 9-12
Weeks 13-16
National Marketing
Showcasing Property
Review of Offers
Negotiate Contract
Escrow
Closing
Teams and Services
BERKADIA
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Teams and Services
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Teams and Services
BERKADIA
In addition to our multifamily advisory and investments sales services, Berkadia is a leading principal and
As a nonbank-regulated, closely held
Berkadia has helped clients achieve their
corporation, Berkadia has the flexibility to
goals through any market condition and
quickly respond to ever-changing market
is aggressively positioned to serve all your
intermediary, providing debt and
dynamics and the ability to customize finance
future multifamily finance needs.
equity solutions for multifamily and
solutions to meet our customers’ needs.
commercial real estate nationwide. Berkadia Commercial Mortgage LLC is a Freddie Mac Program Plus lender, Fannie Mae DUS® Multifamily Seller/Servicer and HUD, MAP and LEAN originator and servicer. We are a correspondent for 45+ insurance companies for which we originate and service loans, providing non-recourse fixed rate, short, intermediate and long term debt. We have origination and servicing agreements with the major CMBS conduits. Berkadia is a
In December 2009, Berkadia was formed when Berkadia is also a highly rated master, primary,
Berkshire Hathaway and Jefferies Financial
and special servicer managing a portfolio of $236
Group acquired Capmark’s (formerly GMAC
billion in 2018, consisting of over 18,000 loans.
Commercial Mortgage) North American loan origination and servicing business. In 2013,
A full suite of financing programs is available from acquisition and construction, to rehabilitation and refinance of multifamily and commercial
debt with this diverse base of capital providers.
we acquired an investment sales platform to create one of the market’s most robust commercial real estate companies.
real estate properties - all with Berkadia’s proven access to capital and depth of service.
Headquartered in New York, Berkadia has more than 55 offices in the United States,
proprietary bridge lender, leveraging our balancesheet capabilities. In 2018, we placed $26 billion of
Teams and Services
ACCESS TO CAPITAL
This full range of services – from acquisition to disposition – is a complete life-cycle
a wholly owned operation in India, and over 1,800 team members worldwide.
solution spanning all commercial property types, and is delivered with quality, flexibility, customer focus and satisfaction.
Teams and Services
BERKADIA
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INVESTMENT ADVISORS ED ROSEN 858.257.4715 ED.ROSEN@BERK ADIA.COM CA BRE LICENSE #01010225
T YLER SINKS 858.257.4706 T YLER.SINKS@BERK ADIA.COM CA BRE LICENSE #01910220
JOHN CHU 858.257.4713 JOHN.CHU@BERK ADIA.COM CA BRE LICENSE #00966982
FINANCING CHAD WILLIAMS 858.260.3010 CHAD.WILLIAMS@BERK ADIA.COM
SAN DIEGO OFFICE 4275 EXECUTIVE SQUARE, SUITE 900 L A JOLL A, CA 92037 PHONE: 858.683.7930 FAX: 858.683.7931 BERK ADIA.COM
Disclaimer and Conf identialit y Agreement The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential. This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership. All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional. The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale. For more information on these and other Berkadia® exclusive listings, please visit our website at www.Berkadia.com Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. © 2020 Berkadia Proprietary Holding LLC Berkadia® is a trademark of Berkadia Proprietary Holding LLC Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. This proposal is not intended to solicit commercial mortgage loan brokerage business in Nevada. For state licensing details, visit: http://www.berkadia.com/legal/licensing.aspx
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San Diego Office 4275 Executive Square, Suite 900 La Jolla, CA 92037 Phone: 858.683.7930 Fax: 858.683.7931 Berkadia.com
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