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Loma Manor Apartments
OFFERING MEMORANDUM
18-unit multifamily community in Point Loma, San Diego, CA
2 | Loma Manor
LOMA MANOR
SAN DIEGO AIRPORT
DOWNTOWN
Rosecrans Street
HARBOR ISLAND
361 acre mixed use project offering
abundant entertainment, shopping and
food.
Harbor Drive
LIBERTY STATION
Loma Manor | 3
TABLE OF CONTENTS
The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.
This information has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.
FISHERMAN’S LANDING
OverviewInvestment Summary
Investment Highlights
Property DescriptionBuilding Description
Site Plan
Financial AnalysisFinancials
Rent & Sale ComparablesSale Comparisons
Rent Comparisons
Market OverviewNeighborhood Overview
06
13
14
18
TABLE OF CONTENTS
Merrick Matricardi (Lead Broker)Senior Vice President [email protected] | LIC # 01348986
Eric ComerExecutive Vice [email protected] | LIC # 00842230
Jim Neil Executive Vice [email protected] | LIC #01352736
Kidder Mathews12230 El Camino Real, 4th FloorSan Diego, CA 92130
Exclusively Represented By
08
CORONADO
4 | Loma Manor
1518 Rosecrans St, San Diego, CA 92106
18 apartment homes in coastal San Diego location
Loma Manor Apartments
Loma Manor | 5
INVESTMENT SUMMARY
Address1518 Rosecrans StSan Diego, CA 92106
Number Of Units 18
Year Completed 1948
Price $5,700,000
Price/Unit $316,667
Price/SF $528
Cap Rate 3.34%
Market Cap Rate 4.51%
GRM 17.0
Market GRM 14.5
Kidder Mathews is pleased to present the opportunity to acquire an 18-unit apartment building located in the coastal community of Point Loma. The property consists of spacious one-bedroom and two-bedroom units, a laundry facility and beautifully landscaped grounds. Tenants benefit from the highly walkable location with a plethora of restaurants, grocers and community amenities all within walking distance.
While the property is very well maintained, in-place rents are below market. Current ownership has renovated two out of the 18 units. A future investor has the opportunity to continue the unit renovations and further increase rents.
The location of the site near the water drives the high demand for the residential apartments in the project which consistently maintains a 100% occupancy.
The project is located in the heart of the prestigious Point Loma community. Point Loma is known for its views of the San Diego Bay and benefits from yachting marinas and the U.S. Navy for a local employment base.
THE OFFERING
6 | Loma Manor
Investment HighlightsVALUE ADD OPPORTUNITY
• Only two of the 18 units have been renovated. This is an attractive opportunity for an investor looking for a property to renovate and increase rents.
WELL MAINTAINED
• The exterior building and major building systems have been exceptionally maintained.
GREAT POINT LOMA LOCATION
• Loma Manor has a walkscore of 82, which means it is walking distance to abundant eateries, shops, services and shopping
• Just one block from the Fisherman’s Landing and the harbor
• Walking distance to Starbucks, Better Buzz Coffee, Pizza Nova, Jimmy’s Famous Tavern, Mitch’s Seafood and numerous other eateries
• Walking distance to Ralph’s grocery store and a short ride to Trader Joe’s and Vons
• 1.3 miles from Liberty Station. Within in Liberty Station is The Lot movie theater, Stone Brewing Restaurant, Soda & Swine Corvette Diner and Liberty Station Market to name a few.
• Less than one mile from the San Diego Yacht Club. The San Diego Yacht Club offers tennis courts, a swimming pool, spa, full service sailing center, fitness center, library, picnic area, and more.
• San Diego Airport is one mile away, Ocean Beach is 2 miles away, Downtown San Diego is 5 miles away,
IMPLEMENT A RUBS PROGRAM
• Current ownership has not implemented a RUBs utility bill back method for water, sewer and trash. There is value-add potential for additional income by implementing a RUBs program.
STRONG DEMOGRAPHIC INFLUENCE
• Strong demographic influence in a highly desirable neighborhood
• Average household income within 1-mile from the property is $123,239 and within 3-miles is $105,338.
• Average home value within 1-mile from the property is $1,100,415 and within 3-miles is $1,006,752
POINT LOMA SEAFOODS
NORTHSIDE SHACK
HARBOR TOWN PUB
MIGUEL’S COCINA
Loma Manor | 7
FISHERMAN’S LANDING
POINT LOMA SEAFOODS
BETTER BUZZ COFFEE
PEARL HOTEL
SUSHI LOUNGE
MITCH’S SEAFOOD
PIZZA NOVA
STARBUCKS
TONY’S MEXICAN FOOD
MCDONALDS
DENNY’S
With a walkscore of 82, Loma Manor is conveniently located near eateries, coffee shops and more.
RALPH’S
8 | Loma Manor
Property Description
Property Address1518 Rosecrans Street, San Diego, CA 92106
Units 18
APN 530-742-05-00
Rentable SF 10,890 SF per assessor record
Year Built 1948
Land Area 15,291 SF per assessor records (0.35 acres)
Density 51.43 units/acre
Construction Wood frame with stucco exterior
Parking14 off-street parking spaces; a ratio of 0.77 parking spaces per unit.
LaundryCommon laundry room with 2 washers and 2 dryers
CONSTRUCTION
Roof CoveringPitched composition shingle(new roof installed in 2014)
Foundation Slab on grade
Windows Double hung single pane
MECHANICAL/ELECTRIC/PLUMBING
MeteringElectricity is individually metered; Water is on a master meter; Gas is on a master meter (12 of 18 units have gas sub-meters installed, but not utilized)
Water Heater Each unit has an individual 30-gallon water heater
Cooling/Heating Gas fired wall heater; no air conditioning to the units
Cooking Energy Gas
Loma Manor | 9
Rosecrans Street
Hugo
Str
eet
Ingelow Street
Locust Street
10 | Loma Manor
PROPERTY FEATURES
Nicely Landscaped Grounds
Secured Entry
Communal Barbecue
On-site Laundry Room
Loma Manor | 11
UNIT FEATURES
Ceiling Fan
Vinyl Wood-Like flooring (renovated units)
Mirrored Closet Doors (renovated units)
Individual Hot Water Heaters
Individual Patios (renovated units)
New Cabinets with Quartz Countertops (renovated units)
12 | Loma Manor
Loma Manor | 13
PURCHASE PRICE $5,700,000 DOWN PMT $3,000,000$/UNIT $316,667 % DOWN 52.63%$/SQ. FT. $527.78 CAP RATE 3.34% Mkt Cap 4.51%
GRM 17.01 Mkt GRM 14.5INCOME SUMMARY
# Units Unit Type Sq. Ft. Total Sq.Ft. Actual Rent $/Sq.Ft. Total Rent Mkt Rent $/Sq.Ft. Total Mkt12 1BD/ 1BA 550 6,600 $1,442 $2.62 $17,300 $1,725 $3.14 $20,7006 2BD/ 1BA 700 4,200 $1,742 $2.49 $10,450 $1,995 $2.85 $11,970
18 Total/Avg 600 10,800 $1,542 $2.57 $27,750 $1,815 $3.03 $32,670
ANNUALIZED GROSS INCOME $333,000 $392,040
Vac / Collect 3.00% Mkt Vacancy 3.00% ($9,990) ($11,761)
ADJUSTED GROSS INCOME $323,010 $380,279 Parking Income $0 $0
RUBS $0 $9,000Laundry $3,300 $3,300Other Income $2,000 $2,000
EFFECTIVE GROSS INCOME $328,310 $394,579
2018 ACTUALS ANNUALIZED
ESTIMATED EXPENSES
Less Estimated Expenses: $/UNIT $/YEARProperty Taxes 1.17461% $3,720 $66,953 $66,953Fixed Assessment $5 $82 $82Insurance $133 $2,400 $4,700Trash $143 $2,568 $2,568Water & Sewer $501 $9,018 $9,018Gas & Electric $265 $4,761 $4,761Cable TV $280 $5,042 $0Landscaping & Pest Control $395 $7,109 $7,109Repairs /Maintenance/ Turnover $985 $17,733 $14,000On‐Site Manager $572 $10,303 $10,303Off‐Site Management 4.00% $907 $16,328 $13,132Administrative $112 $2,014 $1,500Reserves $440 $7,923 $3,600
$152,234 $137,726Exp./unit: $8,457 $7,651 ($137,726) ($137,726)Exp/psf: $14.10 $12.75Exp. % of AGI: 45.7% 41.4%
NET OPERATING INCOME $190,584 $256,853Amortization 30Rate 4.25%Debt Service $2,700,000 @ $159,389 $159,389CASH FLOW $31,195 $97,464
Cash on Cash Return 1.04% 3.25%Principal Loan Reduction $44,639 $44,639Total Return $75,834 $142,103Return on Equity 2.53% 4.74%DCR 1.20 1.61
INTEREST ONLYAmortization 0Rate 4.25%Debt Service $2,700,000 @ $114,750 $114,750CASH FLOW $75,834 $142,103
Cash on Cash Return 2.53% 4.74%
LOMA MANAOR APARTMENTS1518 Rosecrans Street, San Diego, CA 92106
POINT LOMA
No warranties or representations, expressed or implied, are made as to the accuracy of the information contained herein.
$5,700,000
$316,667
$528
3.34%
4.51%
17.0
14.5
$3,000,000
53%
Price
Price Per SF
Proforma Cap Rate
In-Place GRM
Market GRM
Investment Summary
Price Per Unit
In-Place Cap Rate
Down Payment
% Down
FinancialsINCOME SUMMARY
14 | Loma Manor
Sale Comparables & MapSUBJECTLoma Manor
1Villa Marina
2Evergreen Villas
35101 Narragansett Ave
4Muir Place
Average
ADDRESS 1518 RosecransPoint Loma
1502 Scott StreetPoint Loma
1770 Evergreen StreetPoint Loma
5101 Narragansett AveOcean Beach
4850 Muir Avenue, Ocean Beach
# OF UNITS 18 15 24 16 13 17
YEAR BUILT 1948 1950 NA 1975 1969 1960
SALE DATE For Sale 10/23/2018 5/9/2018 5/22/2018 8/2/2018
SALE PRICE $5,700,000 $4,625,000 $7,696,000 $6,750,000 $4,532,000
PRICE PER UNIT $316,667 $308,333 $320,667 $421,875 $348,615 $349,898
PRICE PER RENTABLE SF
$528 $490 $395 $556 $472 $499
CAP RATE 3.34% 2.45% 2.74% 2.90% 4.55% 3.00%
CAP RATE (Market) 4.51% 4.20% 4.48% NA 5.08% 4.00%
GRM (in place) 17.0 20.42 19.50 18.79 16.58 18.88
GRM (Market) 14.5 15.20 13.70 N/A 14.90 14.95
UNIT MIX 12: 1BD/ 1BA: 550 SF 6: 2BD/1BA: 700 SF
15: 1BD/ 1BA: 600-624 SF 8: 1BD/ 1BA: 640 SF 6: 1BD/ 1BA VIEW: 692 SF 8: 2BD/1BA: 894 SF 2: 2BD/ 2BA: 1,537SF
5:Studios: 484 SF4: 1BD/1BA: 616 SF6: 2BD/1BA:792 SF1:3BD/2BA: 1,527 SF
8: 1BD/ 1BA: 675 SF 2: 2BD/1BA: 825 SF 2: 2BD/ 2BA: 875SF
Loma Manor | 15
4
2
1
Rose
cran
s St
Macaulay St
Narragansett Ave
Coronado AvePoint Loma Ave
Cat
alin
a B
lvdSanta B
arbara StHill St
Nim
itz Blvd
Voltaire StSu
nset
Clif
fs
Baco
n St
Sports Arena Blvd
Lytton St
Harbor Island Dr
Lee
Rd
Harbor Dr
Chatsworth Blvd
Chats
wor
th B
lvd
4 LEGEND
1
3
2
4
Villa Marina
Evergreen Villas
5101 Narragansett
Muir Place
2
1
LOMA MANOR
3
16 | Loma Manor
Rent Comparables & MapProperty SUBJECT
Loma Manor1Villa Marina
21619 Scott Street
3Bay Park
4Harbor View Apts
51357 Rosecrans
Photo
Address 1518 Rosecrans St 1502 Scott Street 1619 Scott Street1418 Rosecrans Street
1575 Scott Street1357 Rosecrans Street
CITY San Diego San Diego San Diego San Diego San Diego San Diego
# of Units 18 15 9 18 15 19
Built 1948 1950 not known 1418 1969 1963
1 Bedroom 1 bed/1 bath
No. of Each 12 15 9 12 12
Rent $1,442 $1,610 $1,595 $1,350 $1,500 - $1,700
SF 550 600 600 533-742
Rent/SF $2.62 $2.68 $2.25 $2.29 - $2.91
2 Bedroom 2 bed/1 bath 2 bed/1 bath 2 bed/2 bath 2 bed/1 bath
No. of Each 6 6 1
Rent $1,742 $1,750 $2,250 $1,950
Avg SF 700 850 725 784
Rent/SF $2.49 $2.06 $3.10 $2.49
Community Amenities
Secured site, barbecue
Secured siteOversized private patio
Security screen door Secured site
Laundry Common laundry facility
Common laundry facility
Common laundry facility
Common laundry facility
Common laundry facility
Loma Manor | 17
Ingelow St
Nimitz Blvd
Mc Donough Rd
Decat
ur R
d
Emerson St
Rosec
rans
St
Willo
w S
tPl
um S
tLo
cust
St Sc
ott S
t
Hugo St
Garrison St
N Harbor Dr
1
2
3
4
5
6
LEGEND
1
3
2
4
Villa Marina
1619 Scott St
Bay Park
1
LOMA MANOR
5
5
Harbor View Apts
1357 Rosecrans
Centre C
ity Pkw
y
2
5
3
4
18 | Loma Manor
Point Loma is a seaside community of San Diego, California. It is bordered on the west and south by the Pacific Ocean, the east by San Diego Bay and Old Town and the north by the San Diego River. Point Loma is home to two major military bases, a national cemetery, a national monument, and a university, in addition to commercial and residential areas.
The Point Loma location includes all the demographics a retailer needs to succeed. It has a mix of families, college students, active military personnel, tourists and locals, which all look for great experiences in food, shopping and daily needs services. Point Loma is home to Shelter Island, which is actually not an island but a former sandbank in San Diego Bay. Shelter Island was developed in the 1950s and contains hotels, restaurants, marinas, and public parkland. Liberty Station is the newest commercial and retail area in Point Loma. Site of the former Naval Training Center San Diego, it includes numerous recreation, dining, shopping, hotel, residential and educational sections.
The Midway district, neighboring to the San Diego River and the I-5 and I-8 freeways, is mainly commercial and industrial with a small number of residential developments. The majority of the neighborhoods in Point Loma consist primarily of single family homes. Rosecrans Street is the path of the historic La Playa Trail, recognized as the oldest commercial trail in the western United States. Recreational boating activities are mostly located on the Bay side of the peninsula, where there are three yacht clubs, including the San Diego Yacht Club. There are quite a few small-boat marinas and a commercial sport fishing dock as well.
The southern one-third of Point Loma is entirely federal land, including Naval Base Point Loma, Fort Rosecrans National Cemetery, and Cabrillo National Monument. Point Loma is home to several major military installations including the US Navy’s SPAWAR program, the US Marine Corp’s Recruit Training Depot (MCRD San Diego), Naval Base Point Loma, and the former US Navy Recruit Training Command /Naval Training Center, or RTC/NTC San Diego.
Market Overview
Loma Manor | 19
DEMOGRAPHICS
Type 1-mile 3- mile 5-mile
Population 15,096 74,737 222,510
2023 Project Population 15,506 76,768 237,403
Average Household Size 2.33 2.14 1.89
Housing Units 6.394 30.419 116.293
Owner Occupied Units 53% 38% 31%
Renter Occupied Units 40% 56% 59%
Median Household Income $85,568 $70,837 $69,450
2023 Project Median Household Income $103,544 $83,550 $84,097
Average Household Income $123,239 $105,338 $102,443
Average Home Value $1,100,415 $1,006,752 $921,273
POINT LOMA RENTAL TRENDS
Type Rents
Studios $1,040
1-bedroom $1,488
2-bedroom $2,161
Vacancy Rate 2.8%
Source: Costar
QUALITY OF LIFE
LIBERTY STATION
Liberty Station is a mixed-use development on the site of the former Naval Training Center. The site is divided up into districts: a retail and commercial district, a promenade focused on non-profit activities, an educational district, residential district, a hotel district an office district and park/open space district. Numerous eateries, retail stores and entertainment centers are located within Liberty Station. Anchor tenants include Vons, Trader Joes and Ace Hardware. Stone Brewing and World Bistro, Breakfast Republic, Corvette Diner, El Jardin and several other restaurants reside at Liberty Station.
CABRILLO NATIONAL MONUMENT
The Cabrillo National Monument commemorates the landing of Juan Rodriguez Cabrillo. This marked the first time a European expedition had set foot on what later became the West Coast of the United States. Designated as a historical landmark, Cabrillo National Monument offers views of San Diego’s harbor and skyline. The highest point is the Old Point Loma Lighthouse. Additionally visitors enjoy the trails and tide pools.
POINT LOMA FISHING & BOATING
Marine activities are mostly located on the Bay (eastern) side of the peninsula, where there are three yacht clubs, including the San Diego Yacht Club, which was home to the America’s Cup from 1988 to 1995. There are half a dozen small-boat marinas on the Bay side of Point Loma. There is also a commercial dock which services sport fishing cruises as well as seasonal whale watching expeditions. Point Loma hosts the biggest sport fishing fleet in Southern California. The Bay side hosts numerous other businesses related to yachting and fishing, such as marine supply stores, yacht brokerages, boat repair yards, and hotels and motels catering to fishing enthusiasts. Some restaurants and hotels have docks for customers who arrive by boat.
ACADEMICS
There are three academic institutions within 10 miles of the project. Between the three nearby campuses, there are 46,781 of students. Given that these institutions provide limited to no student housing, the project is situated in a location easily accessible for students and employees to live. Nearby Universities include Point Loma Nazarene, San Diego Community College and University of San Diego.
Merrick MatricardiSenior Vice President, [email protected] | LIC #01348986
Eric ComerExecutive Vice President, [email protected] | LIC #00842230
Jim NeilExecutive Vice President, [email protected] | LIC # 01352736
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