THREE UNIT, RETAIL/OFFICE OPPORTUNITY 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 Anthony Acosta, BRE# 01900150 Advisor 619.658.1103 anthony.acosta@svn.com CalBRE #01900150 Jorge Jimenez, BRE# 01413353 Senior Vice President- Director 619.658.1110 jjimenez@svn.com CalBRE #01413353 SVN VANGUARD 610 W. ASH STE. 901, SAN DIEGO, CA 92101 OFFERING MEMORANDUM
PROPERTY INFORMATION 3 Property Summary Additional Photos Floor Plan Possible Build Out Parcel Plan FINANCIAL ANALYSIS 9 Financial Summary Income & Expenses Rent Roll Pro Forma Financial Summary Pro forma Income & Expenses Owner-user Loan Scenario Tenant Profiles 16 Siempre Tax+ Daniel's Barber Shop LOCATION INFORMATION 19 Regional Map Location Maps Retailer Map Aerial Map City Information DEMOGRAPHICS 25 Demographics Report Demographics Map Contact Info THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD, SAN YSIDRO, CA 92173 OFFERING MEMORANDUM
1 PROPERTY INFORMATION 161 W. San Ysidro Blvd San Ysidro, CA 92173 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 3
Property Summary OFFERING SUMMARY Sale Price: $965,000 Cap Rate: 3.92% Pro Forma Cap Rate: 6.90% NOI: $37,822 Lot Size: 7,222 SF Building Size: 3,818 SF Zoning: Commercial Market: San Diego Submarket: San Ysidro Price / SF: $252.75 PROPERTY HIGHLIGHTS 3,818-square-foot Freestanding Building located in the Heart of San Ysidro, CA Two Existing Quality Tenants In-place Serving the Daily Needs of the Local Community New Construction - Recently built in 2015 Great Opportunity for Owner-user to Purchase with SBA Financing - +/-1.926 SF Suite B is currently vacant which is over 51% of building enough for SBA owner-occupied financing Blocks from the San Ysidro International Port of Entry, World's busiest Land Border Crossing into Tijuana, Mexico - approximately 100 Million People and over 26 Million vehicles cross the border annually Busy Trade Area with Heavy Pedestrian Border Traffic - Over 50,000 border crossings per day Great Accessibility - Easy access to Interstate 5 and Interstate 805 and close proximity to Trolley Station Located less than 1 mile from Las Americas Premium Outlets, San Diego's Largest Outlet Mall Close proximity to New San Ysidro Land Port of Entry Expansion Project - a $625 million bi-national effort between United States and Mexico which will renovate, expand, and modernize the current port of entry. Cross Border Trade - Estimated $5 billion spent per year on shopping from cross-border consumers THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 4
Additional Photos THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 5
Floor Plan THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 6
Possible Build Out For Suite Suite B - 1,926 SF THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 7
Parcel Plan THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 8
2 FINANCIAL ANALYSIS 161 W. San Ysidro Blvd San Ysidro, CA 92173 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 9
Financial Summary INVESTMENT OVERVIEW 161 W SAN YSIDRO BLVD Price $965,000 Price per SF $252.75 CAP Rate 3.9% Cash-on-Cash Return (yr 1) 0.96 % Total Return (yr 1) $15,548 Debt Coverage Ratio 1.13 OPERATING DATA 161 W SAN YSIDRO BLVD Gross Scheduled Income $39,717 Other Income $23,437 Total Scheduled Income $63,154 Vacancy Cost $1,894 Gross Income $61,259 Operating Expenses $23,437 Net Operating Income $37,822 Pre-Tax Cash Flow $4,472 FINANCING DATA 161 W SAN YSIDRO BLVD Down Payment $465,000 Loan Amount $500,000 Debt Service $33,350 Debt Service Monthly $2,779 Principal Reduction (yr 1) $11,076 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 10
Income & Expenses INCOME SUMMARY 161 W SAN YSIDRO BLVD PER SF Siempre Tax $20,853 $5.46 Barber Shop $18,864 $4.94 Vacant Space - - Gross Income $39,717 $10.40 EXPENSE SUMMARY 161 W SAN YSIDRO BLVD PER SF Property taxes $11,538 $3.02 Insurance $2,500 $0.65 Repair/Maintenance $3,000 $0.79 Utilities: Water, Sewer $1,800 $0.47 Utilities: Trash $720 $0.19 Landscaping $1,200 $0.31 Management $1,786 $0.47 Reserves $893 $0.23 Gross Expenses $23,437 $6.14 Net Operating Income $37,822 $9.91 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 11
Rent Roll TENANT NAME UNIT NUMBER UNIT SIZE (SF) LEASE START LEASE END LEASE START MONTHLY RENT % OF GLA PRICE PER SF/MO RECOVERY TYPE COMMENTS Siempre Tax 840 01/15/2016 04/30/2019 Current $1,737.75 22.0 $2.06 Vacant 1,926 Current $0 50.45 $0.00 Barber Shop 1,014 8/1/2017 7/31/2018 Current $1,572 26.56 $1.55 Totals/Averages 3,780 $39,717 $10.51 $0 $0 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 12
Pro Forma Financial Summary INVESTMENT OVERVIEW 161 W SAN YSIDRO BLVD Price $965,000 Price per SF $252.75 Pro Forma CAP Rate 6.9% Cash-on-Cash Return (yr 1) 7.34 % Total Return (yr 1) $41,173 Debt Coverage Ratio 1.73 OPERATING DATA 161 W SAN YSIDRO BLVD Gross Scheduled Income $69,762 Other Income $23,437 Total Scheduled Income $93,199 Vacancy Cost $2,795 Gross Income $90,403 Operating Expenses $23,437 Net Operating Income $66,966 Pre-Tax Cash Flow $28,347 FINANCING DATA 161 W SAN YSIDRO BLVD Down Payment $386,000 Loan Amount $579,000 Debt Service $38,619 Debt Service Monthly $3,218 Principal Reduction (yr 1) $12,826 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 13
Pro Forma Income & Expenses INCOME SUMMARY 161 W SAN YSIDRO BLVD PER SF Siempre Tax $20,853 $5.46 Barber Shop $18,864 $4.94 Vacant Space $30,045 $7.87 Gross Income $69,762 $18.27 EXPENSE SUMMARY 161 W SAN YSIDRO BLVD PER SF Property taxes $11,538 $3.02 Insurance $2,500 $0.65 Repair/Maintenance $3,000 $0.79 Utilities: Water, Sewer $1,800 $0.47 Utilities: Trash $720 $0.19 Landscaping $1,200 $0.31 Management $1,786 $0.47 Reserves $893 $0.23 Gross Expenses $23,437 $6.14 Net Operating Income $66,966 $17.54 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 14
Loan And Net Debt Projections For Owner-user SBA LOAN SCENARIO Net Rent Month Loan Payment $5,077 Rent from Siempre Tax -$1,662 Rent from Barber Shop -$1,572 Net Debt Payment $1,844 Down 10% $96,500 Loan $868,500 Interest 5% Amort 25 Monthly Debt Payment $5,077 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 15
3 TENANT PROFILES 161 W. San Ysidro Blvd San Ysidro, CA 92173 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 16
Siempre Tax+ SIEMPRE TAX+ SiempreTax+ was designed with the needs of the Hispanic and Latino community in mind. All of our tax offices are bilingual to serve our customers in their own language and make them feel right at home. In addition to our accurate and friendly tax preparation, we also offer many "Plus," or additional services such as notary services, driver s license assistance, and advice on the Affordable Care Act. THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 17
Daniel's Barber Shop DANIEL'S TRADITION BARBER SHOP Daniel's Traditional Barber Shop with a strong social media presence and a strong local following offers the local community with exceptional high quality haircuts. THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 18
4 LOCATION INFORMATION 161 W. San Ysidro Blvd San Ysidro, CA 92173 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 19
Regional Map THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 20
Location Maps THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 21
Retailer Map THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 22
Aerial Map THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 23
City Information SAN YSIDRO, CA San Ysidro, a district of the City of San Diego, located just north of the U.S. Mexico Border, Otay Mesa to the east, and Tijuana River Valley to the west, together forming south San Diego. ECONOMY & TOURISM Home to the World s Busiest Land Port of Entry, San Ysidro International Port of Entry, where approximately over 100 Million people enter US annually with that numberexpected to increase to 130 million people in the next 10 years, San Ysidro attracts more tourists from many countries every year. Quality centers like The Plaza at the Border, Las Americas Premium Outlets, and Outlets at The Border have all become popular shopping destinations for the region, bringing in over $5.5 billion in consumer spending from Mexican shoppers. In addition, Tijuana s population of approximately 1,750,000 is expected to double by 2025 with an 87% projected increase in traffic for San Ysidro. THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 24
4 DEMOGRAPHICS 161 W. San Ysidro Blvd San Ysidro, CA 92173 THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 25
Demographics Report 1 MILE 3 MILES 5 MILES Total population 19,537 87,904 211,262 Median age 29.0 31.6 31.7 Median age (male) 24.8 29.0 29.7 Median age (female) 32.6 33.6 33.3 Total households 5,375 23,477 60,887 Total persons per HH 3.6 3.7 3.5 Average HH income $45,472 $55,978 $59,440 Average house value $343,114 $379,309 $377,069 * Demographic data derived from 2010 US Census THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 26
Demographics Map POPULATION 1 MILE 3 MILES 5 MILES Total population 19,537 87,904 211,262 Median age 29.0 31.6 31.7 Median age (male) 24.8 29.0 29.7 Median age (Female) 32.6 33.6 33.3 HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 5,375 23,477 60,887 # of persons per HH 3.6 3.7 3.5 Average HH income $45,472 $55,978 $59,440 Average house value $343,114 $379,309 $377,069 * Demographic data derived from 2010 US Census THREE UNIT, 3,818 SF RETAIL/OFFICE OPPORTUNITY - SAN YSIDRO (SAN DIEGO MSA), CA 161 W. SAN YSIDRO BLVD SAN YSIDRO, CA 92173 SVN Vanguard Page 27
Anthony Acosta, BRE# 01900150 Advisor 619.658.1103 anthony.acosta@svn.com CalBRE #01900150 Jorge Jimenez, BRE# 01413353 Senior Vice President- Director 619.658.1110 jjimenez@svn.com CalBRE #01413353 SVN VANGUARD 610 W. ASH STE. 901, SAN DIEGO, CA 92101 OFFERING MEMORANDUM