a Berkshire Hathaway and Jefferies Financial Group company
INVESTMENT ADVISORS TYLER SINKS 858.257.4706 Tyler.Sinks@berkadia.com CA BRE License #01910220 ED ROSEN 858.257.4715 Ed.Rosen@Berkadia.com CA BRE License #01010225
FINANCING CHAD WILLIAMS 858.260.3010 Chad.Williams@berkadia.com
SAN DIEGO OFFICE 4275 Executive Square | Suite 900 La Jolla, California 92037 P. 858.683.7930 | F. 858.683.7931 www.Berkadia.com
2
THE JACKSON
TABLE OF CONTENTS THE OPPORTUNITY.......................................................... 04 THE ASSET. . .......................................................................... 18 AMENITIES........................................................................... 28 UNDERWRITING................................................................ 32 COMPARABLE RENTAL PROPERTIES. . ..................... 40 COMPARABLE SALE PROPERTIES. . ........................... 54 THE LOCATION................................................................... 60
BERKADIA
3
THE OPPORTUNITY
EXECUTIVE SUMMARY
6
THE JACKSON
Berkadia is pleased to present the exclusive opportunity to acquire an urban community located in the vibrant North Park neighborhood, just north of Downtown San Diego. The Jackson is a one-of-a-kind asset comprised of 31 new apartment units, 5 refurbished cottages, and 5,450 SF of attractive commercial retail space. Completed in 2019, The Jackson consists of state-of-the-art construction and features topof-the-line condo quality interiors. The Property features unique, modern floor plans with large windows, private patios, and high-end finishes throughout. The quality of life at The Jackson is unsurpassed, as North Park is one of San Diego’s trendiest neighborhoods and a major hotspot for nightlife with cafes, breweries, tasting rooms, restaurants, and boutique shops lining University Avenue. Residents also enjoy easy access to some of San Diego’s major freeways such as Highway 163, I-5, and I-8. With over 8.3 million SF of office space under construction or in planning in nearby Downtown (3 miles from the asset) and Mission Valley (2.5 miles from the asset) as well as the ongoing development of lifestyle amenities in the Balboa Park area, The Jackson is positioned to benefit from the projected long-term growth in the market for years to come. BERKADIA
Offering Price $19,500,000 No. of Units
36 + 4 Commercial (5,446 SF)
Year Built
2019
7
98
WALK SCORE
35m
SQFT OFFICE SPACE WITHIN 5-20 MINUTES
60+
BARS & RESTAURANTS
340K
JOBS WITHIN 5-20 MINUTES
30
SPECIALTY RETAILERS
INVESTMENT HIGHLIGHTS
PRIME WALKABLE LOCATION The Jackson is located in the thriving community of North Park, San Diego. From the art lover to the music enthusiast, fashionista to the foodie, North Park truly offers a wholly authentic experience for everyone. With a Walk Score of 98, residents are an easy walk to over 60 lively bars and restaurants, 30 specialty boutiques and retailers, and a wide array of entertainment venues. Locals can also enjoy a variety of North Park festivities including the Farmer’s Market, Taste of North Park, and Festival of Arts.
98
WALK SCORE
10
60+
BARS & RESTAURANTS
30
SPECIALTY RETAILERS
THE JACKSON
340K EMPLOYEES
35m
SQFT OFFICE SPACE
PHENOMENAL ACCESS TO JOBS The Jackson has excellent proximity to four major employment centers – Downtown San Diego, Mission Valley, Kearny Mesa, and UTC. Collectively, these job centers employ over 340,000 people in more than 35 million square feet of office space. The Jackson’s ideal location near the I-805 gives residents the distinct advantage of being central to the full diversity of San Diego’s dynamic employment base. Residents working in these bustling regions are just a short 5- to 20- minute drive away from their employer, and with an evenly dispersed percentage of residents making these short commutes, it is clear that this centrality and connectivity combined with an unrivaled North Park culture provides residents with the best live-work lifestyle. BERKADIA
11
INVESTMENT HIGHLIGHTS
5,450
TOTAL COMMERCIAL SF
29,963 TOTAL RENTABLE SF
BRAND-NEW CONSTRUCTION Completed in 2019 this condominium-quality community was constructed with the utmost consideration for the resident’s comfort and convenience. The Property consists of four commercial units measuring 5,450 square feet and 36 apartment homes measuring 666 square feet each with rich interior luxuries including: brand-new energy efficient stainless-steel appliances, floor-to-ceiling windows for natural lighting, quartz countertops, custom wood cabinetry, modern backsplashes, a combination of polished concrete and vinylplank flooring, and private balconies that create an indoor-outdoor living space.
12
THE JACKSON
THRIVING NORTH PARK NEIGHBORHOOD North Park’s lineup of small-business retail and boutiques are just as eclectic, unique and diverse as the neighborhood itself. Within walking distance, one can find a trendy vintage clothing shop, an art gallery and a lively microbrewery. Residents can explore the wide variety of authentic shops, each with their own flavor while still retaining the cool North Park vibe.
BERKADIA
13
LACK OF MODERN SUPPLY The greater North Park’s considerably higher bodies per unit (BPU) indicates a severe lack of modern supply. To demonstrate how deeply undersupplied the neighborhood is, refer to the analysis below where we compare North Park to both a major employment center (Downtown San Diego) and to a less urban, lower density submarket (Mission Valley).
DOWNTOWN SAN DIEGO
MISSION VALLEY
NORTH PARK
Bodies
47,310
48,573
41,538
Class “A” Units
5,249
2,171
174
9
22
239
Bodies per Unit
14
THE JACKSON
POSITIONED FOR EXCEPTIONAL RENT GROWTH The undersupplied nature of the greater North Park submarket will be prominent for the foreseeable future. As of today, there are no future development deals in the pipeline in the greater North Park Area. With extreme lack of new housing being added to the supply in North Park, The Jackson is not subjected to neighboring competition, thus benefiting from an increase in rent growth.
Average annual rent growth of 5.5% since 2014 8.0% Projected average annual rent growth of 4% over the next 5 years
7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 0.0% -1.0%
2014
2015
2016
Downtown BERKADIA
2017
2018
2019
North Park
2020
2021
2022
2023
2024
Mission Valley 15
THE JACKSON IS IN A PRIME WALKABLE LOCATION IN THE HEART OF THE NORTH PARK NEIGHBORHOOD.
16
THE JACKSON
BERKADIA
17
THE ASSET
20
THE JACKSON
BERKADIA
21
PROPERTY SUMMARY ADDRESS
4126-4144 30th Street San Diego, CA 92104
NUMBER OF UNITS
36 + 4 Commercial (5,450 SF)
AVERAGE RESIDENTIAL UNIT SF 666 SF TOTAL RENTABLE SF
29,963
YEAR BUILT
2019
SITE SIZE
21,000 SF
NUMBER OF BUILDINGS
Three
NUMBER OF STORIES
Five
PARCEL NUMBER
446-303-16
ELEVATOR
One
EXTERIOR
Stucco, Wood, Metal
ROOF
TPO Membrane, Clay Tile Roof
PARKING
Covered Garage
PARKING SPACES
18 Assigned Spaces 12 Tandem, 2 Handicap, 3 Commercial 35 Total Spaces
STORAGE UNITS
7 Units ($65-$115 per month)
22
THE JACKSON
UNIT MIX AND SPECIFICS UNIT/TYPE
UNITS
AVG SF
% OF TOTAL
Studio
4
455
11%
Studio (Remodeled Cottage)
1
306
3%
1 Bed / 1 Bath
19
632
53%
1 Bed / 1 Bath*
2
662
5%
1 Bed / 1 Bath (Remodeled) Cottage)
2
607
5%
1 Bed / 1 Bath (Remodeled Cottage*)
1
592
3%
2 Bed / 2 Bath
6
972
17%
2 Bed / 1 Bath (Remodeled Cottage)
1
863
3%
Total / Average
36
666
100%
*Affordable
MECHANICAL / ELECTRICAL / PLUMBING Heating
Individual for Each Unit
Air conditioning Individual for Each Unit Water Heater
Two Boilers with Booster Pump
Fire Protection
Alarms & Fire Sprinklers in New Units
UTILITIES
PROVIDER
Electricity
SDG&E
Gas
SDG&E
Water / Sewer
City of San Diego
Trash Removal
Waste Management
Internet / Telephone
AT&T and COX Available
UNIT SPECIFICATIONS Refrigerator
Whirlpool
Stove / Oven
Whirlpool
Microwave
Whirlpool
Dishwasher
Whirlpool
Washer / Dryer
GE
Disposal
Yes
Kitchen Countertop Materials
Quartz
Bathroom Countertop Materials
Quartz
Cabinets (Kitchen)
Wood
Cabinets (Bathroom)
Wood
Light Fixtures
Recessed Can, Surface Mount
Flooring Materials
Vinyl Plank, Tile, Concrete
BERKADIA
23
RETAIL TENANTS JUNESHINE – “THE WORLD’S FIRST HARD KOMBUCHA BAR” JuneShine started brewing hard kombucha in June 2018 out of a garage in San Diego. Today, their organic 6.0% ABV kombucha has six flavors (Blood Orange Mint, Honey Ginger Lemon, Midnight Painkiller, Acai Berry, Rosé and the latest, Hopical Citrus) and sells in California, Oregon, Seattle, Austin, New York City, Hawaii and Chicago. The company operates a number of tasting rooms around the county and today continues to expand into new markets. UPSTAIRS CIRCUS Upstairs Circus is a DIY workshop-meets-bar concept where people can gather together to create unique leather working, woodworking, jewelry making, art & design DIY projects while enjoying craft cocktails, beer & wine. Upstairs Circus currently has locations in Austin, Dallas, Denver, and Minneapolis. DANDELION CAFÉ Dandelion Cafe specializes in health-conscious dining that includes items such as salads, bowls, wraps and other vegetarian and vegan f riendly food items (although some meats will be available). Beer and wine will also be served to accompany meals. Dine in and take out will be available.
TENANT
JUNESHINE
DANDELION
UPSTAIRS CIRCUS
Lease Start
6/1/20
6/1/20
1/1/20
SF
2,040
1,000
1,810
(1) 60-month option
(2) 60-month options
(1) 60-month option
5
10
5
Base Rent
$6,120
$3,100.00
$4,100.00
Annual Increase
3.00%
3.00%
3.00%
Pro Rata Share Expenses
35.35%
17.68%
28.26%
Pro Rata Share Property Tax
35.35%
17.68%
28.26%
Current Rent/SF
$3.00
$3.10
$2.27
Options Lease Term
*600 SF of vacant commercial space is available for rent.
24
THE JACKSON
BERKADIA
25
FLOOR PLANS
1 BEDROOM 1 BATHROOM
STUDIO
26
THE JACKSON
2 BEDROOM 2 BATHROOM LOFT
BERKADIA
27
AMENITIES
INTERIOR LUXURIES • Fully-Equipped Kitchens with Stainless-Steel Appliances • In-Unit GE Washer / Dryer** • Floor-to-Ceiling Windows • Combination of Polished Concrete and Luxury Vinyl Plank Flooring • Tile Throughout Bathroom Areas • Central Air / Heat • Custom Showers with Tile Surrounds • Recessed Can Light Fixtures • Quartz Countertops and Backsplashes • Custom Wood Cabinetry • Large Balcony * • Indoor-Outdoor Living • Downtown and Mountain Views*
In select units **Seven units have shared access to washers/dryers *
30
THE JACKSON
COMMUNITY AMENITIES • Interior Courtyard • Coworking Space with Community Tables, Individual Workspaces, and Lounge Chairs • DIY Workshop & Bar • Courtyard Barbecue • Elevator Access • Covered Parking • Pet Friendly Community • Gated Access • Proximity to Endless Retail, Eateries, and Entertainment • Easy Access to Public Transportation and Freeways
BERKADIA
31
UNDERWRITING
UNIT MIX AND RENT SCHEDULE UNITS
TYPE
UNIT SF
TOTAL SF
ACTUAL RENT
BERKADIA PRO FORMA (TRENDED 3%)
RENT/SF
4
Studio
455
1,820
$1,881
$1,938
$4.26
19
1 Bed / 1 Bath
632
12,013
$2,290
$2,359
$3.73
6
2 Bed / 2 Bath
972
5,832
$3,272
$3,371
$3.47
1
Studio (Remodeled Cottage)
306
306
$1,250
$1,288
$4.21
2
1 Bed / 1 Bath (Remodeled Cottage)
607
1,213
$1,823
$1,877
$3.10
1
2 Bed / 1 Bath (Remodeled Cottage)
863
863
$2,350
$2,421
$2.80
2
1 Bed / 1 Bath (Affordable)
662
1,324
$1,044
$1,075
$1.62
1
1 Bed / 1 Bath (Affordable Remodeled Cottage)
592
592
$1,014
$1,044
$1.76
666
23,963
$2,250
$2,318
$3.48
36
34
THE JACKSON
PRO FORMA UNIT NUMBER
BERKADIA PRO FORMA
Scheduled Market Rent
$1,001,370
Less: Loss to Lease
1.00%
($10,014)
Less: Vacancy
5.00%
($50,069)
Less: Non-Revenue Units & Bad Debt
1.23%
Net Rental Income
($12,270) $929,018
Plus: Fee Income
$368
$13,235
Plus: RUBS Income
$627
$22,572
Plus: Other Income
$433
$15,600
Retail Income Plus: Retail Income
$191,333
Less: Retail Vacancy
5.00%
Plus: NNN
($9,567) $45,132
Total Operating Income (EGI)
$1,207,323
EXPENSES
PER UNIT
Administrative
BERKADIA PRO FORMA
$200
$7,200
Advertising & Promotion
$150
$5,400
Payroll
$426
$15,338
Repairs & Maintenance/Turnover
$550
$19,800
$1,174
$42,256
$1,000
$36,000
$425
$15,300
$6,663
$239,850
$12
$414
$300
$10,800
Management Fee
3.50%
Utilities Contracted Services Real Estate Taxes Special Assessments Insurance Replacement Reserves Total Expenses
Net Operating Income
1.23%
$150
$5,400 $397,758
$809,565
IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced f rom this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this f ile is privileged and conf idential; it is intended only for use by Berkadia® and their clients. This f ile may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this f ile and unauthorized use may render this f ile useless. Berkadia® employees, aff iliates, 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 All Rights Reserved. DRAFT REPORT: Privileged & Conf idential, For Discussion Purposes Only.
NOTES TO PRO FORMA Below is a pro forma operating statement reflecting Berkadia’s projections for the first year of buyers’ operations. Projected pro forma expenses are based on Berkadia’s knowledge of operations at similar properties in the submarket. Detailed footnotes explaining our assumptions can be found on the following pages.
INCOME Scheduled Market Rents – The table below displays The Jackson’s current actual rents on an untrended and trended (3%) basis. The 3% trending reflects market rents at the property once fully-stabilized, and forms the basis for Berkadia’s pro forma. UNITS
TYPE
UNIT SF
ACTUAL RENT
BERKADIA PRO FORMA (TRENDED 3%)
RENT/SF
4 19 6 2 1 2 1 1 36
Studio 1 Bed / 1 Bath 2 Bed / 2 Bath Studio (Remodeled Cottage) 1 Bed / 1 Bath (Remodeled Cottage) 2 Bed / 1 Bath (Remodeled Cottage) 1 Bed / 1 Bath (Affordable) 1 Bed / 1 Bath (Affordable Remodeled Cottage)
455 632 972 662 306 607 592 863 666
$1,881 $2,290 $3,272 $1,250 $1,823 $2,350 $1,044 $1,014 $2,250
$1,938 $2,359 $3,371 $1,288 $1,877 $2,421 $1,075 $1,044 $2,318
$4.26 $3.73 $3.47 $4.21 $3.10 $2.80 $1.62 $1.76 $3.48
Loss to Lease - The pro forma assumes loss-to-lease equivalent to 1% of gross potential rents. Vacancy – The pro forma assumes 5% Vacancy, which is in-line with conventional underwriting standards. Non-Revenue Units & Bad Debt – Non-Revenue Units & Bad Debt are estimated at 1.23% of Scheduled Market Rents and includes one manager unit receiving half off market rent of $1,022.50 per month in f ree rent. Fee Income – Fee Income includes the following assumptions: FEE
AMOUNT
NOTES
Application Fees
$1,485
55% turnover x $50 application fee x 1.5 app/unit.
Damage/Forfeited Deposits
$3,960
Total apartment homes x 55% turnover x $200 forfeited deposit.
Termination Fees
$5,000
2 lease terminations x 1 month’s rent.
NSF /Late Fees
$90
Miscellaneous Income
$2,700
TOTAL
$13,235
5% of apartments x $50 late fee. $75 per unit annually.
RUBS Income - The pro forma assumes RUBS collections of $55 per month per unit @ 95% occupancy. Other Income – Other Income includes the following assumptions: LINE ITEM
AMOUNT
NOTES
Storage
$7,200
7 units at 100% occupancy leased for an average of $85.71/month.
Pet Rent
$8,400
40% of the units x $50/month.
TOTAL
$15,600
Retail Income - Pro forma assumes all 4 commercial spaces are leased at the time of sale and trended by 3% per the commercial leases. Please consult the online website for more detail. UNIT
SF
CURRENT MONTHLY RENT
NNN/MO.
Juneshine
2,040
$6,120
$1,249
Dandelion
1,000
$3,100
$1,408
Upstairs Circus
1,810
$4,100
$690
Vacant
600
$2,160
$414
TOTAL
5,450
$15,480
$3,761
Retail Vacancy – The pro forma assumes a 5% vacancy factor on Retail Income. NNN – Pro forma NNN is based on Owner’s estimated budget. See Retail Income table for more detail.
EXPENSES Administrative – The pro forma assumes an administrative expense of $200 per unit, which is in-line with comparable properties in the market. Advertising & Promotion – The pro forma assumes an Advertising & Promotion expense of $150 per unit, which is in-line with comparable properties in the market. Payroll – The pro forma assumes the following Payroll expenses: LINE ITEM
AMOUNT
NOTES
Payroll
$12,270
Onsite manager paid $1,022.50 per month
Burden
$3,068
25% burden.
TOTAL
$15,338
Repairs & Maintenance/Turnover - The pro forma assumes a Repairs & Maintenance/Turnover expense of $550 per unit, which is in-line with comparable properties in the market. Management Fee - The pro forma assumes a Management Fee of 3.5% of Total Operating Income. Utilities - The pro forma assumes a utilities expense of $1,000 per unit, which is in-line with comparable properties in the market. Contracted Services - The pro forma assumes a Contracted Services expense of $425 per unit and includes contracts for landscaping, janitorial, and pest. Real Estate Taxes – Real Estate Taxes are calculated by applying 1.23% to the listing price. We recommend consulting a tax professional regarding this line item. Special Assessments – Special Assessments are based on a review of the 2019/2020 property tax bill. Insurance - The pro forma assumes an insurance expense of $300 per unit, in-line with comparable properties of this size and vintage. Replacement Reserves - The pro forma assumes Replacement Reserves are set at $150 per unit based on conventional underwriting standards.
INDICATIVE LOAN QUOTES PROGRAM
TERM (YRS)
AMORT TREASURY/ I/O (YRS) (YRS) LIBOR
SPREAD TOTAL
DCR
LOAN AMOUNT
Agency Fixed
7
30
1-3
1.62%
2.10%
3.72%
1.25
$11,622,000
Agency Fixed
10
30
3-5
1.71%
2.05%
3.76%
1.25
$11,560,000
Agency Fixed Term I/O
10
30
10
1.71%
2.00%
3.71%
1.35
$10,770,000
Agency Floating
7
30
1-3
1.66%
2.25%
3.91%
1.22
$11,622,000
Life Company Low Leverage
10
30
5-10
1.71%
1.75%
3.46%
1.44
$10,450,000
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THE JACKSON
BERKADIA
39
COMPARABLE RENTAL PROPERTIES
COMPARABLE RENT COMPS SUMMARY UNITS
BUILT
OCCUPANCY
AVG SF
MARKET AVG RENT
AVG RENT / SF
36
2019
95%
666
$2,250
$3.38
0.9 Mile
165
2019
25% (In initial lease up.*)
761
$3,211
$4.22
San Diego
2.7 Miles
102
2015
91%
922
$3,176
$3.44
VIDA North Park
San Diego
0.6 Mile
115
2018
95%
813
$2,989
$3.68
4
Park & Polk
San Diego
1.4 Miles
54
2018
94%
876
$2,960
$3.38
5
Mr. Robinson
San Diego
1.4 Miles
34
2016
91%
1,080
$2,861
$2.65
890
$3,095
$3.47
PROPERTY
CITY
S
The Jackson
San Diego
1
BLVD North Park
San Diego
2
Broadstone Balboa Park
3
DISTANCE
Averages *Averages do not include Subject Property
S
42
1
2
4
5
3
THE JACKSON
RENT COMPS MAP
8
805
15 163
KENSINGTON
8 NORMAL HEIGHTS Adams Ave.
8
UNIVERSITY HEIGHTS
163
805
1 PASEO DE MISSION HILLS
El Cajon Blvd.
3
4 163
Texas St.
2
Park Blvd.
5
HILLCREST
University Ave.
15
NORTH PARK 805
163
30th St.
BALBOA PARK
BANKERS HILL 163
15 5
BERKADIA
805
43
COMPARABLE RENT COMPS THE JACKSON 4126-4144 30th Street San Diego CA 92104
S
Units:
36
Built:
2019
Occupancy:
95%
Concessions: Offering one month free. RUBS: Resident pays water, sewer, trash, and electric based on usage.
Notes:
Pet Policy: $250 deposit and $50 per month for dog, $25 per month for cat. Parking Policy: Tandem parking for two bedrooms. Remaining spaces are assigned. Qualifications: 2.5 times the rent. Lease Terms: 12 months. Washers / Dryers: Yes, included in all units. Seven units have shared access to washers / dryers. The rest of the units have in-unit washers / dryers.
UNITS
TYPE
UNIT SF
MARKET RENT
RENT / SF
5
0/1
425
$1,755
$4.13
21
1/1
630
$2,245
$3.56
Studio
3
1/1
639
$1,004
$1.57
2 Bed / 1 Bath
1
2/1
863
$2,350
$2.72
6
2/2
972
$3,272
$3.37
666
$2,259
$3.39
36
44
16%
14%
1 Bed / 1 Bath 2 Bed / 2 Bath
67%
THE JACKSON
BLVD NORTH PARK 2020 El Cajon Boulevard San Diego CA 92104
1
Distance:
0.9 Mile
Units:
165
Built:
2019
Occupancy:
25% (In initial lease up.*)
Concessions: None RUBS: Resident pays water, sewer, trash, and electric based on usage.
Notes:
Pet Policy: $400 deposit and $50 per month. Parking Policy: One space per unit is included in the rent. Qualifications: 2.5 times the rent. Lease Terms: 6-14 months. Washers / Dryers: Yes, included in all units.
UNITS
TYPE
UNIT SF
MARKET RENT
RENT / SF
1
0/1
506
$1,950
$3.85
151
1/1
739
$3,200
$4.33
Studio
9
2/2
1,003
$3,400
$3.39
1 Bed / 1 Bath
4
2/2.5
1,115
$3,525
$3.16
2 Bed / 2.5 Bath
761
$3,211
$4.22
165
BERKADIA
5%
2 Bed / 2 Bath
92%
45
COMPARABLE RENT COMPS BROADSTONE BALBOA PARK 3288 5th Avenue San Diego CA 92103
2
Distance:
2.7 Miles
Units:
102
Built:
2015
Occupancy:
91%
Concessions:
One month free and one free parking space.
Notes:
RUBS: Resident pays water, sewer, trash, electric and gas based on usage. Pet Policy: $500 deposit and $50 per month. Parking Policy: Tandem parking for two bedrooms. One parking space for one bedrooms. Qualifications: 3 times the rent. Lease Terms: 9-16 months. Washers / Dryers: Yes, included in all units.
UNITS
TYPE
UNIT SF
MARKET RENT
RENT / SF
25
0/1
743
$2,280
$3.07
50
2/1
867
$3,595
$4.15
27
2/2
1,190
$3,230
$2.71
2 Bed / 1 Bath
922
$3,176
$3.44
2 Bed / 2 Bath
102
25%
26%
Studio
49%
46
THE JACKSON
VIDA NORTH PARK 4223 Texas St San Diego CA 92104
3
Distance:
0.6 Mile
Units:
115
Built:
2018
Occupancy:
95%
Concessions:
Up to six weeks free on select units.
Notes:
RUBS: Resident pays water, sewer, trash, gas and electric based on usage. Pet Policy: $500 deposit and $50 per month. Parking Policy: One space is included in the rent per unit. $75 per month for a second space. Qualifications: 3 times the rent. Lease Terms: 3-16 months. Washers / Dryers: Yes, included in all units.
UNITS
TYPE
UNIT SF
MARKET RENT
RENT / SF
59
0/1
578
$2,320
$4.01
14
1/1
766
$3,150
$4.11
42
2/2
1,158
$3,875
$3.35
813
$2,989
$3.68
115
37%
Studio 51%
1 Bed / 1 Bath 2 Bed / 2 Bath
12%
BERKADIA
47
COMPARABLE RENT COMPS PARK & POLK 4075 Park Boulevard San Diego CA 92103
4
Distance:
1.4 Miles
Units:
54
Built:
2018
Occupancy:
94%
Concessions: None. Notes:
RUBS: Resident pays water, sewer, gas, and electric. Owner pays trash. Pet Policy: $500 deposit and $25 per month. Parking: Two spaces for most units. Qualifications: 2.5 times the rent. Washers / Dryers: Yes, included in all units.
UNITS
TYPE
UNIT SF
MARKET RENT
RENT / SF
6
0/1
465
$2,075
$4.46
6
1/1
710
$3,173
$4.47
42
2/2
959
$3,056
$3.19
876
$2,960
$3.38
54
11% 11% Studio 1 Bed / 1 Bath 2 Bed / 2 Bath 78%
48
THE JACKSON
MR. ROBINSON 3752 Park Boulevard San Diego CA 92103
5
Distance:
1.4 Miles
Units:
34
Built:
2016
Occupancy:
91%
Concessions: None RUBS: Resident pays water, sewer, gas, and electric. Owner pays trash.
Notes:
Pet Policy: $500 deposit and $25 per month. Parking Policy: Included in the rent. Some units get a single space or tandem. Qualifications: 2.5 times the rent. Lease Terms: 12 month leases. Washers / Dryers: Yes, included in all units.
UNITS
TYPE
UNIT SF
MARKET RENT
RENT / SF
5
0/1
801
$2,373
$2.96
26
2/2
1,147
$3,151
$2.75
3
3/1
959
$1,158
$1.21
1,080
$2,861
$2.65
34
9%
15%
Studio 2 Bed / 2 Bath 3 Bed / 1 Bath
76%
BERKADIA
49
COMPARABLE RENT ANALYSIS
The Jackson
$1,755
BLVD North Park
$1,950 | 0.9 miles
Park & Polk
$2,075 | 1.4 miles
Broadstone Balboa Park
$2,280 | 2.7 miles
VIDA North Park
$2,320 | 0.6 miles
Mr. Robinson
$2,373 | 1.4 miles
00
0
$2
,5
,0 0
00 $1 ,5
00 $1 ,0
$2
Average $2,200
50
$5
$0
00
STUDIO
THE JACKSON
$2,137
VIDA North Park
$3,150 | 0.6 miles
Park & Polk
$3,173 | 1.4 miles
BLVD North Park
$3,200 | 0.9 miles
0 50 $3 ,
0 $3 ,0 0
00 ,5 $2
0 ,0 0 $2
00 $1 ,5
00 $1 ,0
00
The Jackson
Average $2,915
BERKADIA
$5
$0
1 BEDROOM
51
COMPARABLE RENT ANALYSIS
$3,056 | 1.4 miles
The Jackson
$3,147
Mr. Robinson
$3,151 | 1.4 miles
BLVD North Park
$3,438 | 0.9 miles
Broadstone Balboa Park
$3,467 | 2.7 miles
VIDA North Park
$3,875 | 0.6 miles
00 ,5 $4
0 ,0 0 $4
$3 ,
50
0
0 $3 ,0 0
00 ,5 $2
0 ,0 0 $2
00 $1 ,5
00 $1 ,0
00
Park & Polk
Average $3,397
52
$5
$0
2 BEDROOM
THE JACKSON
BERKADIA
53
COMPARABLE SALE PROPERTIES
COMPARABLE SALES COMPS 1
THE JACKSON
2
KENSINGTON COMMONS
4126-4144 30TH STREET SAN DIEGO, CA 92104
4142 ADAMS AVENUE SAN DIEGO, CA 92116
STRUCTURE LOFTS 440 UPAS STREET SAN DIEGO, CA 92103
BUILT:
2019
BUILT:
2014
BUILT:
2014
UNITS:
36
UNITS:
34
UNITS:
25
AVG SF:
666
PRICE / UNIT:
$666,176
PRICE / UNIT:
$590,000
PRICE / SF:
$484
PRICE / SF:
$338
AVG SF:
1,083
AVG SF:
1,033
SOLD FOR:
$22,650,000
SOLD FOR:
$14,750,000
CLOSED:
2/11/19
CLOSED:
2/8/17
UNIT MIX
UNIT MIX
UNIT MIX
STUDIO
24%
1 BED
70%
1 BED
50%
2 BED
30%
2 BED
26%
3
4
CHARLEE LOFTS
100%
5
VIDA NORTH PARK
4045 30TH STREET SAN DIEGO, CA 92104
STUDIO
4223 TEXAS STREET SAN DIEGO, CA 92104
EXOTIC GARDENS 4319 MISSISSIPPI STREET SAN DIEGO, CA 92104
BUILT:
2017
BUILT:
2018
BUILT:
2017
UNITS:
10
UNITS:
118
UNITS:
21
PRICE / UNIT:
$570,000
PRICE / UNIT:
$521,610
PRICE / UNIT:
$509,524
PRICE / SF:
$424
PRICE / SF:
$334
PRICE / SF:
$353
AVG SF:
850
AVG SF:
871
AVG SF:
723
SOLD FOR:
$5,700,000
SOLD FOR:
$61,550,000
SOLD FOR:
$10,700,000
CLOSED:
2/8/19
CLOSED:
2/22/18
UNIT MIX 2 BED
UNIT MIX 100%
UNIT MIX 16%
1 BED
77%
1 BED
50%
2 BED
23%
2 BED
34%
STUDIO
SALES COMPS MAP
8
805
15 163
KENSINGTON
8 NORMAL HEIGHTS
1
Adams Ave.
UNIVERSITY HEIGHTS
163
805
5 El Cajon Blvd.
4
PASEO DE MISSION HILLS
163
2
Texas St.
Park Blvd.
HILLCREST
3
University Ave.
15
NORTH PARK 805
163
30th St.
BALBOA PARK
BANKERS HILL 163
15 5
BERKADIA
805
57
$509,524 | 0.9 miles
Vida North Park
$521,610 | 0.6 miles
Charlee Lofts
$570,000 | 0.1 miles
Structure Lofts
$590,000 | 2.6 miles
Kensington Commons
$666,176 | 2.1 miles
0 $7 00 ,0 0
0 00 ,0 0 $6
$5
00 ,0 0
0
0 $4 00 ,0 0
0 $3 00 ,0 0
0 $2 00 ,0 0
Exotic Gardens
Average $571,462
58
$1 00 ,0 0
$0
0
ANALYSIS | PPU
THE JACKSON
$410.00 | 0.6 miles
Structure Lofts
$453.00 | 2.6 miles
Kensington Commons
$483.87 | 2.1 miles
Charlee Lofts
$552.00 | 0.1 miles
Exotic Gardens
$704.00 | 0.9 miles
00 .0 0 $8
$7 00 .0 0
00 .0 0 $6
00 .0 0 $5
$4 00 .0 0
$3 00 .0 0
$2 00 .0 0
Vida North Park
Average $521
BERKADIA
$1 00 .0 0
$0
ANALYSIS | PPSF
59
THE LOCATION
NORTH PARK North Park is one of San Diego’s trendiest neighborhoods and a major hotspot for nightlife with cafes, breweries, tasting rooms, restaurants, and boutique shops lining University Avenue.
“
NO. 7 AMONG
THE BEST NEIGHBORHOODS
FOR YOUNG PROFESSIONALS IN SAN DIEGO Niche
“
”
14 COOLEST
HIPSTER NEIGHBORHOODS
IN THE USA TripAdvisor
62
”
THE JACKSON
NORTH PARK MAIN STREET From world-class restaurants and renowned breweries to unique boutiques and the iconic Observatory North Park Theatre, North Park Main Street is bustling with excitement at every corner.
North Park at a glance:
40+ restaurants 15+ bars, breweries and cafes and tasting rooms
BERKADIA
50+ shops and boutiques
5 art galleries
63
OBSERVATORY NORTH PARK THEATRE Originally opened in 1929, historic Observatory North Park has been transformed into San Diego’s newest concert / music / nightlife venue.
1,100 seating capacity
64
32,000 square feet
200 performances in 2018
THE JACKSON
BALBOA PARK Adjacent to North Park is the largest urban cultural park in North America. Balboa Park is home to the worldfamous San Diego Zoo and was named one of 15 Great Places in America.
1,200 acres
15+ museums and cultural institutions
19 gardens
$356.4m annual economic impact
3,700 animals in 4m annual visitors the San Diego Zoo in 2018 (record) BERKADIA
65
INVESTMENT ADVISORS TYLER SINKS 858.257.4706 Tyler.Sinks@berkadia.com CA BRE License #01910220 ED ROSEN 858.257.4715 Ed.Rosen@Berkadia.com CA BRE License #01010225
FINANCING CHAD WILLIAMS 858.260.3010 Chad.Williams@berkadia.com
SAN DIEGO OFFICE 4275 Executive Square | Suite 900 La Jolla, California 92037 P. 858.683.7930 | F. 858.683.7931 www.Berkadia.com
DISCLAIMER 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. © 2019 Berkadia Real Estate Advisors Inc. 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. 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. For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx
BERKADIA
67
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