ENCINITAS BLVD. ENCINITAS, CA 92024 · 2018. 12. 13. · PETER CURRY Managing Director 760.310.0882 [email protected] CA Lic. 01241186 KEVIN CUFF Associate 858.558.5677 [email protected]

ENCINITAS BLVD.ENCINITAS, CA 92024

332FOR SALE

OFFERING STATEMENT / DISCLAIMER

Cushman & Wakefield has been retained as exclusive advisor to the Owner for the sale of the the “Property” located at 332 Encinitas Blvd., Encinitas, California 92024 consisting of an approximately 4,316 square foot, two-story office building.

This Offering has been prepared by Cushman & Wakefield for use by a limited number of parties and does not purport to provide a necessarily complete summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by Cushman & Wakefield, the Owner, and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Cushman & Wakefield, therefore, are subject to variation. No representation is made by Cushman & Wakefield or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Cushman & Wakefield, Owner, and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omission from, this Investment Offering or any

other written or oral communication transmitted or made available to the recipient. This Offering does not constitute a representation that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the package. Analysis and verification of the information contained in this package is solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request to interested and qualified prospective investors.

Owner and Cushman & Wakefield each expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing this Offering or making an offer to purchase the Property unless and until a written agreement for the purchase of the Property has been fully executed, delivered, and approved by Owner and its legal counsel, and any conditions to Owner’s obligations thereunder have been satisfied or waived. Cushman & Wakefield is not authorized to make any representations or agreements on behalf of Owner.

This Offering and the contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein are called the “Contents”), are of a confidential nature.

By accepting the package, you agree (i) to hold and treat it in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the package or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or Cushman & Wakefield, (iv) not use the package or any of the contents in any fashion or manner detrimental to the interest of Owner or Cushman & Wakefield, and (v) to return it to Cushman & Wakefield immediately upon request of Cushman & Wakefield or Owner.

If you have no further interest in the Property, please return this Investment Offering forthwith.

1000 Aviara Parkway, Suite 100Carlsbad, CA 92011

T 760.431.4200 F 760.454.3869 www.cushmanwakefield.com

www.cushwakeprivateclient.com

INVESTMENT ADVISORS:

BROOKS CAMPBELLSenior Director760.431.4215 [email protected] Lic. 01380901

PETER CURRYManaging Director760.310.0882 [email protected] Lic. 01241186

KEVIN CUFFAssociate858.558.5677 [email protected] Lic. 02016970

DEBT & EQUITY ADVISOR:

GARY GOSSManaging DirectorT [email protected] Lic. # 00952570

1000 Aviara Parkway, Suite 100Carlsbad, CA 92011T 760.431.4200 F 760.454.3869 www.cushmanwakefield.com


CONTACTS

contentsTABLE OF

1 INVESTMENT OVERVIEW 3

MARKET COMPARABLES2 4PROPERTY SUMMARY

MARKET OVERVIEW 5 FINANCIAL ANALYSIS


overviewINVESTMENT

THE OFFERINGCushman & Wakefield, as exclusive advisor, is pleased to present the opportunity to acquire 332 Encinitas Boulevard (“the Property”), located in the Encinitas Corporate Center in Encinitas, California. The 4,316 rentable square foot, two-story office building represents a rare opportunity for either an investor or owner/user to acquire a boutique office building in North San Diego County’s most desirable submarket. Located amongst North County’s most affluent communities including Leucadia, Cardiff-by-the-Sea, Rancho Santa Fe and La Costa, this sought-after destination has become one of the most desirable real estate submarkets in San Diego County. The Mediterranean style construction offers direct storefront access, operable windows, outdoor patios & balconies and suites sized ranging from 1,100-2,200 SF providing flexibility to both investors or users. The location has immediate access to I-5 and is within close proximity to the area’s most popular destinations (Ecke YMCA, Moonlight Beach, Downtown Encinitas 101 corridor, Cottonwood Creek Park). The Property is currently 100% leased to three tenants with short lease terms – 332 Encinitas Blvd. provides an opportunity for a user to occupy a portion of the building while generating income from the balance of the spaces or the opportunity for an investor to realize immediate upside with below-market in-place rents. Encinitas lease rates continue to see dramatic increases and record-setting pricing on a per square foot basis.

INVESTMENT OVERVIEW

4,316 SF 100% 1997 OFFICE / owner userYEAR BUILTLEASEDRENTABLE

BUILDING AREA

PROPERTY HIGHLIGHTS

Boutique office building with flexible suite sizes - Excellent owner/user opportunity

Outstanding North County location in the heart of Encinitas with immediate access to Interstate

5 (one block), Encinitas’ 101 Corridor, Cardiff-by-the-Sea, Rancho Santa Fe and Leucadia

Walking distance to multiple restaurants, shopping, parks, Moonlight Beach & Ecke YMCA

Below market rents with flexible layouts and direct exterior access

Low maintenance property built in Mediterranean architectural style with

modern finishes, operable windows, outdoor patios & balconies, and well-lit parking lot

Multiple building sign locations

summaryPROPERTY

PROPERTY SUMMARY

ADDRESS: 332 Encinitas, Encinitas CA

TOTAL SF: 4,316 Rentable Square Feet

NO. OF FLOORS: Two

ZONING: Office / Medical

YEAR BUILT: 1997

PARCEL NUMBER: 258-111-33-00

LAND ACRES: 0.33

CONSTRUCTION: Wood Frame & Stucco

PARKING: 20 Spaces (4.5 per 1,000 SF)

HVAC: Roof-top Package Units

APN 258-111-33-00

FIRST FLOOR SECOND FLOOR

100

101

200

PROPERTY SUMMARY - AERIAL

MOONLIGHT BEACH

VU

LCA

N A

VE

.

S. C

OA

ST

HW

Y 101

N. CO

AST HW

Y 101

COTTONWOOD CREEK PARK

DOWNTOWN ENCINITAS

ENCINITAS BLVD.

ENCINITAS TOWN & COUNTRY SHOPPING CENTER

SA

XO

NY

RD

.

MAGDALENA ECKE YMCA

SAN DIEGO BOTANIC GARDEN

SIT

E

comparablesMARKET

RECENT LEASE COMPARABLES

Property NameAddressCity State ZipSubmarket

Square FeetLease ExecLease StartLease Exp.

LesseeLessor

Start RateEff. RateTotal ConsidDirect/Sub

Lease TypeLoad FactorEscalationsPremises

Term MosFree MosFloorExpenses

Landlord TITenant TINew/Rnw/XpsnMoved FromIndustry Type

Cardiff Professional Building2187 Newcastle Ave., Ste 200Encinitas, CA 92007SD:Encinitas

1,250 SF8/30/20189/1/20188/31/2020

SeaStar Medical, Inc.

Las Lomitas LLC

$4.20$4.30$129,000Direct

+U+J04.75%Second

2402BY 2018

$0.00$0.00NewNewTechnology

Mammoth East Professional169 Saxony Rd., Ste 107Encinitas, CA 92024SD:Encinitas

757 SF7/15/20187/15/20187/14/2019

Mako Labs LLC

Saxony Equities LP

$3.40$3.40$30,886Direct

+U+J150%Second

1201BY 2018

$0.00$0.00DownsizedDownsizedTechnology

Pacific Station687 S. Coast Hwy. 101, Ste 310Encinitas, CA 92024SD:Encinitas

2,124 SF7/1/20188/1/20187/31/2021

Health Savings Associates Insurance Services

M3 Management II, LLC

$2.95$2.88$219,872Direct

NNN153%Second

3623$1.13/SF

$0.00$0.00RenewalRenewalFinancial Activities

Encinitas West171 Saxony Rd., Ste 202Encinitas, CA 92024SD:Encinitas

1,532 SF5/4/20187/1/20188/31/2021

Tracker RMS

Commercial Equity Partners, LLC

$3.45$3.38$197,010Direct

+U+J183%Second

3822BY 2018

$41.50$0.00ExpansionExpansionTechnology

Quail Garden Corporate Center662 Encinitas Blvd., Ste 208Encinitas, CA 92024SD:Encinitas

1,355 SF12/22/20171/15/20181/14/2023

Coyne & Associates Education Corp.

Harrison Properties

$3.60$3.76$305,898Direct

+U+J14.73%Second

6012BY 2018

$0.00$0.00NewEncinitasEdu Serv.

Klawiter Executive Plaza1953 San Elijo Ave., Ste 203Cardiff by the Sea, CA 92007SD:Encinitas

2,519 SF8/23/201710/1/201710/31/2022

Key Acquisition LLC

Torrey Pacific Corp.

$4.70$4.92$755,763Direct

+U+J13.43%Second

6112BY 2017

$13.70$0.00NewDel Mar HeightsFinancial Activities

1010 S. Coast Hwy. 101, Ste 105Encinitas, CA 92024SD:Encinitas

4,527 SF7/19/20177/24/201712/6/2024

Winds Enterprises

1010 PCH LLC

$3.20$3.32$1,331,976Direct

NNN153%Second

88.501$0.53/SF

$15.46$6.63NewSame BuildingRetail Trade

Garden View Court700 Garden View Ct., Ste 204Encinitas, CA 92024SD:Encinitas

1,206 SF7/12/20179/1/20178/31/2022

TMS Centers of America (Medical)

Grace Partners

$3.00$3.09$223,265Direct

NNN103%Second

6022$0.70/SF

$18.00$0.00NewNew OfficeHealth Care

MARKET COMPARABLES

RECENT SALE COMPARABLES

Encinitas Corporate Center320 Encinitas Blvd., Encinitas

Size/Type: 3,675 SF Class B Offi ce

Year Built: 1997

Sale Date: 1/11/2016

Sale Price: $1,837,500 ($500/SF)

Sale Type: Owner/User

CAP Rate: n/a

Buyer: Michael Padilla

Seller: Toni FulcinitiComments: The buyer will occupy approximately

1,975 SF doing business as a law fi rm.

Encinitas Corporate Center326 Encinitas Blvd., Encinitas

Size/Type: 4,000 SF Class B Offi ce

Year Built: 1996

Sale Date: 11/16/2015

Sale Price: $2,072,000 ($518/SF)


CAP Rate: n/a

Buyer: Dr. Adam Dustin

Seller: Encinitas Corporate CenterComments: The buyer operates on the

fi rst fl oor as Alvera Podiatry Group.

Downtown Encinitas655 2nd Street, Encinitas

Size/Type: 3,400 SF Offi ce

Year Built: 1987 / Ren. 2017


Sale Price: $2,050,000 ($603/SF)

Sale Type: Investment

CAP Rate: n/a

Buyer: Stos Partners

Seller: Nicole GasperoniComments: Buyer fully renovated

property to creative offi ce.

Cardiff Post Offi ce2027 Newcastle Ave., Cardiff By The Sea

Size/Type: 4,240 SF Retail

Year Built: 1968

Sale Date: 1/4/2018

Sale Price: $4,250,000 ($1,002/SF)


CAP Rate: 3.0%

Buyer: Cardiff Towne Center LLC

Seller: Charles R. Brockett

Comments: All cash; Plan to redevelop property

Cruzan HQ263 S. Sierra Ave., Solana Beach

Size/Type: 9,180 SF Offi ce

Year Built: 2001


Sale Price: $5,729,500 ($624/SF)

Sale Type: Owner/user

CAP Rate: n/a

Buyer: Cruzan

Seller: Karl Kruetzer

Comments: Buyer will be putting in $100/SF of improvements.

2211 Newcastle Avenue2211 Newcastle Avenue, Cardiff By The Sea

Size/Type: 1,050 SF Retail/Offi ce

Year Built: 1960

Sale Date: 9/8/2017

Sale Price: $1,350,000 ($1,286/SF)


CAP Rate: Unknown

Buyer: Jigar & Dev Patel

Seller: Kari A. Johnson

Comments: None

foundation on cedros107 S. Cedros Ave., Solana Beach

Size/Type: 4,050 SF Retail/Offi ce

Year Built: 1965


Sale Price: $3,140,000 ($775/SF)


CAP Rate: 5.0%

Buyer: BLOC

Seller: Ira Cohen

Comments: None

Downtown Encinitas131 West D Street, Encinitas

Size/Type: 5,500 SF Retail

Year Built: 1987

Sale Date: 11/15/2016

Sale Price: $3,500,000 ($636/SF)


CAP Rate: n/a

Buyer: 2nd & D LLC

Seller: Grice Living TrustComments: No details provided.

overviewMARKET

ENCINITAS MARKET STATISTICS3rd Quarter 2018

SD:Encinitas Office Summary

EXISTING

Printed: 9/28/2018

Bldgs.# of All

SF Inventory

SF % SF % SF % SF % SF % Net YTD Net Occupied Direct Vacant Direct Available Sublease

Direct Vacant + Sublease Available AbsorptionClass

Class A 13 319,873 293,073 91.6% 26,800 8.4% 38,614 12.1% 1,633 0.5% 28,433 8.9% )(1,811 )(2,233

Class B 21 462,974 442,160 95.5% 20,814 4.5% 27,769 6.0% 720 0.2% 21,534 4.7% 4,454 )(2,183

Class C 3 60,500 56,478 93.4% 4,022 6.6% 4,022 6.6% 0 0.0% 4,022 6.6% 6,174 )(776

Totals: 37 843,347 791,711 51,636 70,405 2,353 53,989 8,817 )(5,192 93.9% 6.1% 8.3% 0.3% 6.4%

ASKING RENTS

Class Average to FSWeighted

$ 3.61Class A

$ 2.95Class B

$ 2.30Class C

Total: $ 3.27

Total Inventory: The total SF of gross rentable area (GRA) in a specific market. It includes the GRA in buildings that have received a certificate of occupancy.

Occupied Space: Space that is physically occupied by a tenant or owner and has a current lease obligation. The total amount of occupied space is calculated by subtracting the amount of direct vacant space from the amount of inventory.

Direct Vacant: The total amount of space that is physically vacant, allowing immediate occupancy, and the landlord is not receiving rent on this space.

Direct Available: The total amount of space that is currently being marketed as available for direct lease or user sale in a given time period. It includes space that is available, regardless ofwhether the space is vacant, occupied or available at a future date.

Sublease: Space that is available for sublease from a tenant to another lessee for a term equal to or shorter than that held by the tenant under its original lease with the landlord, regardless of whether the space is vacant, occupied or available at a future date.

Total Available: The total amount of space that is currently being marketed as available for lease or sublease in a given time period. It includes space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date.

Under Construction: Buildings where actual ground breaking has occurred and construction is ongoing but for which a certificate of occupancy has not yet been issued.

Net Absorption: The net change in occupied space in a given market between the current measurement period and the last measurement period. Net absorption can be either positive ornegative and excludes sublease activity.

Asking Rental Rate:

DEFINITIONS

The average asking rent for all buildings in a submarket with direct available space that is weighted by the total amount of direct available square footage in the building.

Corporate HDQ: A 1-3 story concrete tilt-up office or R&D (75% build-out) building over 20,000 SF designed for 1 or 2 tenants at most. Average parking 3.5+/1000.

* Information contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Carlsbad, CA 92011p | 760.431.4200

San Diego, CA 92101p | 619.238.0000

San Diego, CA 92154p | 619.661.0657

San Diego - Carlsbad San Diego - Downtown San Diego - Otay Mesa1000 Aviara Parkway 110 West A St. 8780 Sherwood TerraceSuite 100 Suite 1000

f | 760.454.3869 f | 619.525.0020 f | 619.661.1869f | 858.452.3206p | 858.452.6500San Diego, CA 92121Suite 9004747 Executive Dr.San Diego - UTC

3.10%3.60%

4.60%6.10%

6.80%7.40%7.80%

8.30%8.50%

9.40%9.40%

11.00%11.10%

11.90%12.00%12.00%

13.90%13.90%14.30%14.70%14.80%

16.00%18.00%

18.50%

0.00% 5.00% 10.00% 15.00% 20.00%

PowayTorrey Pines

EastgateEncinitasGovernor

UTCKearny Mesa

EscondidoPoint Loma / Sport Arena

La JollaSan Marcos

VistaDowntown

Mission ValleyDel Mar / Solana Beach

Rancho BernardoOceanside

Campus PointDel Mar Heights

ScrippsSorrento Valley

MiramarSorrento Mesa

Carlsbad

Office % Direct Vacant Comparison ‐ 3Q18

Q3 2018

Annual Net Absorption by ClassSan Diego County Encinitas Office

Note: Due to adjustments made to the inventory, current figures may not match to what was published previously. As our market and requirements evolve, our research and methodologies must remain dynamic to be accurate and timely.

16 18

13

(3)

(10)

(2)

4

(2)

9

7

(10)

(2)

(20)

(10)

0

10

20

2013 2014 2015 2016 2017 2018YTD

Thou

sand

s of

SF

Class A Class B

Q3 2018

Annual Direct Vacancy by ClassSan Diego County Encinitas Office


2.7%

7.4%

3.5%

4.5%

7.7%

8.4%

5.2%5.5%

3.5%

2.0%

4.0%4.5%

0%

3%

6%

9%

2013 2014 2015 2016 2017 2018YTD

Class A Class B

Q3 2018

Weighted Average Monthly Asking Rent (FS)San Diego County Encinitas Office

$3.23 $3.27

$3.44 $3.54

$3.40

$3.61

$2.49 $2.55

$2.73 $2.80

$2.98 $2.95

$2.00

$2.50

$3.00

$3.50

$4.00

2013 2014 2015 2016 2017 2018YTD

Class A Class B

Rental Rate Adjustments to Full Service (FS): If +U or + E (+$0.20), or +U+J (+$0.30), if NNN (+$0.50 estimate or actual NNN expense per building.)

Q3 2018

Annual Building CompletionSan Diego County Encinitas Office

0 34 0 0 0 00

10

20

30

40

2013 2014 2015 2016 2017 2018YTD

Thou

sand

s of

SF

Q3 2018

Annual Net Absorption vs. Direct Vacancy


San Diego County Encinitas Office

17 15 29 5 (18) (5)

5.3%

7.4%

4.0%3.4%

5.5%6.1%

-5%

0%

5%

10%

(20)

(10)

0

10

20

30

40

2013 2014 2015 2016 2017 2018YTD

Thou

sand

s of

SF

Net Absorption Direct Vacancy

Vacancy - Encinitas vs. Other Submarkets

LACK OF LANDTO DEVELOP

3rd QUARTER 2018

Recently named among the 20 best surf towns in the world by National Geographic, Encinitas offers some of the world’s most desirable beaches along its six miles coastline. A local favorite is Swami’s beach, which was immortalized in the song “Surfin’ USA” by the Beach Boys. Additionally, Moonlight State Beach offers recreation and fire rings for post-sunset bonfires and barbecues.

The city is host to nearly 300 retail stores and includes more than 10 shopping centers. Popular shopping centers include Camino Village Plaza, Camino Encinitas Plaza, El Camino Promenade and El Camino Commons.

Downtown Encinitas is over 100 years old and features historic architecture, boutiques, sidewalk cafes, and restaurants, together creating the Downtown 101 coastal shopping district. Downtown 101 also features several cultural offerings including a theatre and art galleries.

The city is celebrated for its San Diego Botanic Garden, which includes nearly 4,000 types of plants and over 37 acres of exhibits, desert gardens, a tropical rainforest, Mediterranean climate landscapes, an undersea succulent garden, a subtropical fruit garden and the largest interactive children’s garden on the West Coast.

An abundance of outdoor recreation is offered at the city’s local beaches and the 900-acre San Elijo Lagoon Reserve, including surfing, hiking, boating, tennis, fishing, hang gliding, bicycling, and camping. Home to nearly 300 different bird species throughout the year, the San Elijo Lagoon Reserve also offers some of the world’s best bird watching.

Other key destinations in and near Encinitas include the 18-hole championship Encinitas Ranch Golf Course, the Park Hyatt Aviara Resort Golf Club & Spa, Torrey Pines Golf Course, Legoland, Del Mar Thoroughbred Club race track, and the Omni La Costa Resort & Spa.

LOCAL AMENITIES

128,866Population

50,561# of Households

$113,484Median Household

Income

LOCAL AREA AT A GLANCE - 5 MILE RADIUS

$835,138Median Home Value

82,431Daytime Population

41Average Age

263Sunny Days / Year

PACIFICOCEAN

BR

JAMACHA BLVD

MARKET

LAJO

LLABLVD

ARDATH

EL CAJON BLVD

MIRAMAR RD

DEL MAR HEIGHTSRD

MAIN ST

.

POWAY RD

SCRIPPS POWAY PARKWAY

PALOMAR AIRPORT RD SAN MARCOS BLVD

ELCA

MIN

OR

EAL

RANC

HOSA

NTA

FERD

ENCINITAS BLVD

MANCHES

TER

AVE

EL CAMINO DEL NORTE

DEL DIOS HIGHWAY

VIA DE LA VA

LLE

POMERADO RD

POM

ERAD

ORD

SORRENTO VALLEY BLVD

BLACKM

OU

NTAIN

RD

N

TORREYPIN

ESRD

GEN

ESSEE

MIS

SION GORGERD

FRIARS RD

ROSE

CRAN

S

CARMELMOUNTAIN RD

BER NARDO CEN

TER

DR

ENCINITAS

CARLSBAD

NATIONAL CITY

ESCONDIDO

SAN MARCOS

POWAY

RANCHOBERNARDO

LEMONGROVE

CORONADO

POINT LOMA

OCEAN BEACH

MISSION BEACH

PACIFIC BEACH

LA JOLLA

DEL MAR

RANCHO SANTA FE

UTC

SORRENTOMESA

SCRIPPS RANCH

TORREY PINES

KEARNYMESA

MISSION VALLEY

DOWNTOWN

SOLANA BEACH

SANTEE

EL CAJON

LEUCADIA

GARNET AVEBALBOA AVE

LUSK

BLVD

LOCATION

Spanning approximately 20 miles along the coast in San Diego’s North County, the city of Encinitas is an upscale community and is considered “One of the 20 Best Surf Towns in the World.” Located along six miles of Pacific Ocean coastline, Encinitas is bordered by Carlsbad to the north, the Elfin Forest Recreational Reserve and Escondido to the east, and Solana Beach to the south. The city has an estimated resident population of 60,000 who are attracted to the casual oceanfront community for its magnificent beaches, executive residential communities, regional access and numerous amenities and recreational options.

ENCINITAS, CALIFORNIA

AREA

HIGHLIGHTS

LOCATION

& ACCESS

Incorporated in 1986, the city of Encinitas is a picturesque community characterized by beautiful beaches, seaside cliffs, flat-topped coastal areas, steep mesa bluffs and rolling hills.

Encinitas encompasses the communities of New Encinitas, Old Encinitas, Cardiff-by-the-Sea, Olivenhain and Leucadia. These communities offer a unique blend of businesses, residences and amenities, and together create an eclectic, multifaceted city.

Encinitas is known as the “Flower Capital of the World,” due to its extensive collection of unique nurseries and gardens, highlighted by the San Diego Botanic Garden, which includes nearly 4,000 plant types from all over the world and over 37 acres of exhibits.

Located approximately 25 miles north of downtown San Diego, Encinitas is served by Interstate 5 and Highway 101, both of which provide north/south access throughout the region.

Interstate 5 also provides connections to State Routes 78 and 56, located within 10 miles to the north and south, respectively. These freeways provide direct access to Interstate 15 and North County’s inland communities.

Encinitas offers a mass transit station with service by North County Transit’s Coaster commuter rail and Amtrak’s Pacific Surfliner passenger train. Together, these services provide an ideal alternative for visitors and commuters with convenient access to Orange County, Los Angeles and Downtown San Diego.

In addition to the executive residences offered within Encinitas, several prestigious communities are also located nearby, including Carlsbad, Rancho Santa Fe, Fairbanks Ranch, Del Mar, 4S Ranch, and Solana Beach.

analysisFINANCIAL

FINANCIAL ANALYSIS

IN-PLACE PROFORMA

Suite TenantLease Start

Lease Expiration Lease Option

Approx. RSF* % Bldg $/SF Monthly Annual $/SF Monthly Annual

100 Okogen Inc. 2/1/2018 7/31/2019 1 (18 mos.) at $3,150/mo 1,100 25.0% $2.73 $3,000 $36,000 $3.50 $3,850 $46,200

101 Kelly Financial 1/1/2018 12/31/2020 One three (3) year option at fair market rent. Lessor has option to terminate

1,100 25.0% $2.59 $2,850 $34,200 $3.50 $3,850 $46,200

200 Oceanhouse Media

7/1/2018 1/31/2020 1 (18 mos.) at fair market rent 2,200 50.0% $2.50 $5,500 $66,000 $3.50 $7,700 $92,400

4,400 $11,350 $136,200 $15,400 $184,800

w/ 5% vacancy $129,390 $175,560

RENT ROLL

OPERATING EXPENSES

Annual $/SF

Association - Covers the following:

$6,960 $0.13

Trash $- $-

Landscaping $- $-

Parking $- $-

Common Area Maint. $- $-

Water *paid by tenants* $- $-

HVAC Maint. $400 $0.01

Insurance $1,400 $0.03

Property Taxes To be determined based on Purchase Price

Proforma at Market RentsPrice/SF $600 $625 $650 $675 $700

Bldg SF 4,400 4,400 4,400 4,400 4,400

Total Price $2,640,000 $2,750,000 $2,860,000 $2,970,000 $3,080,000

Stabilization costs

Leasing costs $5.00 $22,000 $22,000 $22,000 $22,000 $22,000

T.I.s $10.00 $44,000 $44,000 $44,000 $44,000 $44,000

Total Cost $2,706,000 $2,816,000 $2,926,000 $3,036,000 $3,146,000

Taxes $0.01 $29,040 $30,250 $31,460 $32,670 $33,880

Total OpEx $37,800 $39,010 $40,220 $41,430 $42,640

Gross Revenue $175,560 $175,560 $175,560 $175,560 $175,560

NOI $137,760 $136,550 $135,340 $134,130 $132,920

Cap Rate 5.09% 4.85% 4.63% 4.42% 4.23%

*Rent roll based on leases provided by Seller. Buyer to verify all information prior to purchase.

CONTACTS

INVESTMENT ADVISORS:

BROOKS CAMPBELLSenior Director760.431.4215 [email protected] Lic. 01380901

PETER CURRYManaging Director760.310.0882 [email protected] Lic. 01241186

KEVIN CUFFAssociate858.558.5677 [email protected] Lic. 02016970

DEBT & EQUITY ADVISOR:

GARY GOSSManaging DirectorT [email protected] Lic. # 00952570

1000 Aviara Parkway, Suite 100Carlsbad, CA 92011T 760.431.4200 F 760.454.3869 www.cushmanwakefield.com


Documents

ENCINITAS BLVD. ENCINITAS, CA 92024 · 2018. 12. 13. · PETER CURRY Managing Director 760.310.0882 [email protected] CA Lic. 01241186 KEVIN CUFF Associate 858.558.5677 [email protected]