3-UNIT INVESTMENT PROPERTY SHERMAN HEIGHTS 2 0 0 5 - 2 0 1 7 J S T R EET | SA N D IEG O, CA 92 102
www.2005JStreet.com PRESENTED BY GLEN HENDERSON BROKER ASSOCIATE MULTI-UNIT INVESTMENT SPECIALIST
INCREDIBLE OPPORTUNITY
WELCOME TO 2005-2017 J STREET We are pleased to present 2005 - 2017 J Street, a fully rehabilitated three-unit property, just blocks from Downtown San Diego. Located in the historic Sherman Heights district, this property consists of two one-bedroom, one-bathroom units and one two-bedroom, one-bathroom unit. All three units were recently restored, which includes new electrical, plumbing, sewer lines, most windows, kitchens, baths, insulation, water heaters, roofs, interior and exterior paint, landscaping, decking, laundry, appliances, and more. This is an excellent opportunity for an investor or owner-occupant to acquire an income producing asset in the rapidly improving and in demand area of Sherman Heights. This very desirable downtown sub-market is located within an Opportunity Zone and is just blocks from the rapidly gentrifying East Village and Barrio Logan. East Village has become one of the most dynamic and popular areas of the downtown area, as East Village/Downtown continues to expand, this particular property will offer a substantial rental upside and is well suited for short-term vacation rentals/AirBNB.
PROPERTY FEATURES • Prime location in Sherman Heights
• Desirable mix of units
• Downtown San Diego views
• Flexibility of investment options: long-term leases, short-term/ vacation rentals/AirBNB
• Extremely high-demand beach rental market = little to no vacancy
• Easy downtown and freeway access • Residential 30-year financing available
• Each unit has their own fenced yard, A/C, and laundry
• Full rehabilitation to all 3 units • Located within an Opportunity Zone
GET TO KNOW SHERMAN HEIGHTS Sherman Heights is a unique neighborhood bordering three other highly desirable neighborhoods (Golden Hill, Barrio Logan and East Village Down Town). Those who live in the area enjoy the central location, as it is just east of the Ballpark District and Downtown San Diego. The property is also close to transit lines, restaurants, schools, and shopping. The Sherman Heights community is also a designated “Opportunity Zone,” offering potential tax breaks for investing within the community. This property is situated among many single-family homes, including historic Victorian homes that add to the unique charm of the neighborhood. In addition, there is strong support for historic preservation and restoration as the neighborhood was declared a historic district in 1987. The Sherman Heights neighborhood has the following roadways as boundaries: Highway 94 to the north, Imperial Avenue to the south, and Interstate 5 to the west. Sherman Heights is considered one of the oldest subdivisions in San Diego and is named after Mathew Sherman, who purchased the land in 1867 just after Alonzo Horton purchased much of the area that is now Downtown San Diego. Sherman Heights is known for the beautiful Victorian homes and is home to the historic building named the Villa Montezuma (located one block from the property), which was built in 1887 by world traveler, noted spiritualist and pianist, Jesse Shepard.
NEIGHBORHOOD FEATURES • Conveniently located by the I-5 and SR-94 • Located within walking distance to East Village, Petco Park, San Diego Public Library, and several dining and entertainment options • Close proximity and easy access to Downtown, Balboa Park, Golden Hill, South Park, and North Park via surface streets • Close proximity to public transit
DESIRABLE NEIGHBORHOOD
UNIT 2005
2 Beds | 1 Bath | 710 Sq Ft | Fenced Yard | Laundry Room | Air-Conditioning
To view a 3D tour of this unit
Visit: https://my.matterport.com/show/?m=2JkLaSjmcp3
UNIT 2015 1 Beds | 1 Bath | 572 Sq Ft | Fenced Yard | Laundry Room | Air Conditioning
To view a 3D tour of this unit
Visit: https://my.matterport.com/show/?m=C3YrGBKQ886
UNIT 2017
1 Beds | 1 Bath | 572 Sq Ft | Fenced Yard | Laundry Room | Air-Conditioning
To view a 3D tour of this unit
Visit: https://my.matterport.com/show/?m=66ASSyYjCWJ
OPPORTUNITY ZONE PROPERTY
The Tax Cuts and Jobs Act of 2017 established Opportunity Zones as a mechanism to provide tax incentives for investment in designated census tracts. Investments made by individuals through special funds in these zones would be allowed to defer or eliminate a portion of federal taxes on capital gains, based on the length of ownership. (View the IRS FAQ & CA FAQ for additional info.) 2005-17 J Street is located within an Opportunity Zone. As part of the federal tax reform bill, states had the opportunity to identify “Opportunity Zones� for local economic development. The program allows investors to utilize the incentives, which include capital gains tax breaks by investing within a designated Opportunity Zone. The Opportunity Zone Map can be viewed HERE.
AMAZING INVESTMENT OPPORTUNITY FINANCIAL ANALYSIS / CURRENT AND PROJECTED INCOME Unit
Lease Type
Beds/Baths
Size (Sq Ft)
Current Rent/Month
Projected Rent/Month
2005 J Street
Vacant
2/1
710
$1,995
$2,495
2015 J Street
April 2020
1/1
572
$1,795
$1,995
2017 J Street
Month-to-Month
1/1
572
$1,695
$1,995
TOTAL
$5,485
$6,485
ANNUALIZED EXPENSES
ACTUAL Monthly Annual
PROJECTED MARKET Annual Monthly
Property Taxes
$598
$7,179
$1,250
$15,000
Insurance
$98
$1,177
$98
$1,177
Water/Sewer
$205
$2,460
$205
$2,460
Gardener
$80
$960
$80
$960
Building Maintenance
$42
$500
$42
$500
$1,023
$12,276
$1,675
$20,097
Gross Potential Rent
$5,485
$65,820
$6,485
$77,820
Less Vacancy - 3%
($165)
($1,975)
($195)
($2,335)
Effective Gross Income
$5,320
$63,845
$6,290
$75,485
Less Expenses
($1,023)
($12,276)
($1,675)
($20,097)
NET OPERATING INCOME
$4,297
$51,569
$4,616
$55,388
Electric
TOTAL EXPENSES ANNUALIZED INCOME
Figures based on a sales price of $1,200,000. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent current or future performance of the property. © 2019 Glen Henderson / Premier Homes Team . All rights reserved.
PROPERTY SUMMARY
Price # of Units Price Per Unit
$1,200,000 3 $400,000
Cap Rate
4.30%
Market Cap Rate
4.62%
GRM
18.23
Market GRM
15.42
APN
535-434-01-00
Lot Size
4,265
Rentable Sq Ft
1,854
Visit www.2005JStreet.com or contact Glen at 619.889.7646
GLEN HENDERSON Broker Associate | REALTOR® Premier Homes Team A division of Big Block Realty, Inc DRE# 01384181
619.889.7646 glen@PHTSD.com | www.MyPremierHomes.com CONNECT WITH ME
Premier Homes Team | DRE# 01384181 & 01885775 | 2820 Camino Del Rio South, Suite 314 | San Diego, CA 92108 This brochure is not intended to solicit properties already listed for sale nor intended to cause a breach of an existing agency relationship. E&OE covered. Published by REAL Marketing (REM) | www.REALMarketing4You.com | 858.952.4280 | ©2019