Description

PROPERTY HIGHLIGHTS Rare unit mix of (13) large 3-Bed/3-Bath units (1,170 SF), (1) detached Studio ADU Completely remodeled apartment homes and major exterior property improvements completed in 2019 Open concept living spaces feature high end finishes Dual master floor plan New windows, upgraded plumbing & electrical On-site parking with 17 carports spaces and 14 open spaces Modernized and drought resistant landscaping 1991 construction and newer roofs Outdoor spaces, ranging from patios and balconies to large yards Near public transportation, dining, shopping, and freeways 8, 67, 52, 125, 94 Quiet street south of the Bostonia neighborhood Residents enjoy a large common area with BBQs INVESTMENT HIGHLIGHTS 2.91% assumable loan fixed through 9/1/2026 In place 5.77% Cap Rate / 12.54 GRM and Proforma 6.03% Cap Rate / 12.09 GRM 6.78% cash-on-cash return and market 7.4% cash-on-cash return before principal paydown $421.26/SF, zero to little deferred maintenance for many years to come ECONOMIC HIGHLIGHTS Wealth preservation and a hedge against inflation Average occupancy rates in this sub-market are 97%-100% We are proud to present the Penny Lane apartments, a completely renovated 14-unit community located in a desirable pocket of the El Cajon submarket within San Diego County. Situated on a 38,768 square foot parcel, the property consists of thirteen spacious 3-Bed/3-Bath units (1,170 SF / $3,325 highest rent) and one detached Studio ADU completed in 2019. 6.78% cash-on-cash return and market 7.4% cash-on-cash return before principal paydown. In place 5.77% Cap Rate and 12.54 GRM. Proforma 6.03% Cap Rate, 12.09 GRM, and $421.26 Price/SF. There is an assumable loan at 2.91%, which is fixed through September 1, 2026. Additional rental upside is near with future rental increases expected later in 2023. The property also has 31 on-site parking spaces, 17 of which are covered carport spaces, in unit laundry equipment, and RUBS have been implemented to reduce expenses and increase cash flow. The interiors include high end finishes ranging from Samsung black stainless steel appliances including dishwashers and microwaves, quartz countertops, oversized stainless kitchen sinks, and laminate woodstyle flooring throughout. All units have custom cabinets with soft-close drawers, custom paint, washers and dryers, central A/C and heating, ceiling fans, and gas fireplaces. Two off street parking spaces are included, with additional spaces available for rent. There are patios and balconies and select units have private yards. This beautifully remodeled property has been well maintained over the years and an opportunity exists to further increase rents by approximately 5% or higher with proper management techniques put into place. Penny Lane is located 17 miles from Downtown San Diego and is in close proximity to the 8, 67, 52, 125, 94, 15, 805 freeways, providing residents with easy access to employment centers, shopping, dining, and entertainment. Additionally, the property is 10 miles from San Diego State University. The subject property is a fantastic opportunity for an investor looking for long-term wealth preservation and growth in one of east county San Diego's strongest rental neighborhoods.