122 HILTON WAY
AN 8-UNIT INVESTMENT OPPORTUNITY
IN PACIFICA, CA
CONTACT INFORMATION
MICHAEL COLHOUN
License CA: 01464496
mcolhoun@aranewmark.com
(415) 273-2177
RYAN DENMAN
License CA: 01995983
rdenman@aranewmark.com
(415) 430-1031
CAMERON CORWIN
License CA: 02049950
ccorwin@aranewmark.com
(415) 430-1037
ARA OFFICE LOCATION
655 Montgomery Street, Suite 1705
San Francisco, CA 94111
CONFIDENTIALITY AGREEMENT AND DISCLAIMER
The information contained herein is strictly confidential, furnished solely for the purpose of considering the acquisition
of the property described herein and is not to be used for any other purpose or made available to any other person
without the expressed written consent of ARA Newmark.
It has been obtained from the Seller and may include other sources believed to be reliable, but no representation is
being made with regard to its accuracy or completeness.
Prospective investors should undertake their own investigations and reach their own conclusions without reliance
upon the material contained herein. Neither the Seller nor the Agent nor any of their respective officers, agents or
principals has made or will make any representations or warranties, expressed or implied, as to the accuracy or
completeness of the Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise
by reason of the Offering Memorandum or its contents.
Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the
prospective purchaser.
The Seller and Agent expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or
offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice.
The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making
an offer to purchase the Property unless and until such offer for the Property is approved by the Seller, and any
conditions to the Buyer’s obligations there under have been satisfied or waived.
MICHAEL COLHOUN
SENIOR MANAGING DIRECTOR
License CA: 01464496
mcolhoun@aranewmark.com
(415) 273-2177
RYAN DENMAN
DIRECTOR
License CA: 01995983
rdenman@aranewmark.com
(415) 430-1031
CAMERON CORWIN
ASSOCIATE
License CA: 02049950
ccorwin@aranewmark.com
(415) 430-1037
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122 Hilton Way, Pacifica
OFFERING MEMORANDUM
OFFERING MEMORANDUM
OFFERING SUMMARY
List Price
$4,000,000
Price Per Unit
$500,000
Price Per SqFt
$401
Current CAP | GRM
4.4% | 15.3
Market CAP | GRM
4.6% | 14.7
INVESTMENT HIGHLIGHTS
NO RENT CONTROL
Two Penthouse Units & Ocean View from 7 Units
Five Minute Walk to the Beach
Twenty Minute Drive to 1.1M jobs in San Francisco & Silicon
Corridor
Close Proximity to Daly City (4.7 mi), South San Francisco (5.8 mi),
& San Bruno (6.2 mi) BART
BUILDING FEATURES
Recently Painted and Replaced Water Heaters with Tankless
Water Heater System in 2016
8 Off-Street Parking Spaces | Laundry On-Site
(2) 1BRx1BA & (6) 2BRx1BA | Avg Unit Size of 917 SF
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122 Hilton Way, Pacifica
OFFERING MEMORANDUM
OFFERING MEMORANDUM
SITE INFORMATION
Property Address
122 Hilton Way
Pacifica, CA 94044
County
San Mateo
Parcel #
016-216-200
Year Built
1964
Total # of Units
8 Units
Unit Mix
2 - 1BRx1BA | Avg Rent $2,000 (10/18)
6 - 2BRx1BA | Avg Rent $2,967 (10/18)
Property Size (tax records)
+/- 9,476 SF
Square Footage (tax record)
+/- 9,987 SF
Parking
8 Off-Street Parking Spaces
Foundation
Concrete & Post/Pier
Framing Construction
Wood Frame
Exterior Siding
Stucco & Wood
Roof
Flat Modified Bitumen
Plumbing
Unknown
Electrical
Breakers
Heating
Gas Wall Furnaces
Water Heater
Tankless Water Heaters
Laundry
Coin Laundry
Utilities
Individually Metered for Gas & Electric
Master Metered for Water & Garbage
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122 Hilton Way, Pacifica
OFFERING MEMORANDUM
OFFERING MEMORANDUM
LIST OF CAPITAL IMPROVEMENTS
Re-plastered back of building and rebuilt fire escape with full enclosure and windows for safety
Added all new outside storage units with fiberglass doors and shelving
Re-trimmed and sealed all back and side windows & removed and replaced all outside 2X 12 boards around the building
Waterproofed the decks and added new balcony railings
New skylight and all new LED lighting in all common areas
Recently painted the exterior of the building
New common area flooring in the basement laundry room
Added sliding glass shower doors in all units
Replaced wall heaters in two apartments
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122 Hilton Way, Pacifica
OFFERING MEMORANDUM
SUBJECT PROPERTY LOCATION
122 Hilton Way
DEMOGRAPHICS
1 MILE
3 MILES
5 MILES
Population
5,612
87,234
221,853
Households
2,427
29,318
74,999
2.30
2.94
2.93
Owner Occupied Housing Units
1,380
19,964
45,297
Renter Occupied Housing Units
1,137
9,354
29,702
$118,099
$126,988
$113,707
Average Household Size
Average Household Income
*Source, ESRI 2017
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122 Hilton Way, Pacifica
OFFERING MEMORANDUM
PROPERTY OVERVIEW - AERIAL PHOTOS
122 Hilton Way
122 Hilton Way
7
122 Hilton Way, Pacifica
OFFERING MEMORANDUM
PROPERTY OVERVIEW - EXTERIOR PHOTOS
8
122 Hilton Way, Pacifica
OFFERING MEMORANDUM
PROPERTY OVERVIEW - INTERIOR PHOTOS
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122 Hilton Way, Pacifica
OFFERING MEMORANDUM
RENT ROLL
RENT ROLL
122 Hilton Way
122 Hilton Way, Pacifica, CA
8 Units
Unit
Unit Type
View
Actual Rent
10/1/18 Rent
Market Rent
Increase Date
1
2 BR x 1 BA
Partial Ocean
$2,300
$2,800
$2,800
10/1/2018
2
2 BR x 1 BA
Partial Ocean
$2,800
$3,000
$3,000
8/1/2018
3
2 BR x 1 BA
Ocean
$2,500
$3,000
$3,000
10/1/2018
4
2 BR x 1 BA
Ocean & Golf Course
$2,400
$3,000
$3,000
10/1/2018
5
1 BR x 1 BA
Partial Ocean
$2,000
$2,000
$2,200
8/1/2018
6
1 BR x 1 BA
Limited
$1,800
$2,000
$2,200
10/1/2018
7
2 BR x 1 BA
PH - Ocean & Golf Course
$2,700
$3,000
$3,200
10/1/2018
8
2 BR x 1 BA
PH - Ocean & Golf Course
$2,700
$3,000
$3,200
10/1/2018
AVERAGE
$2,400
$2,725
$2,825
TOTAL
$19,200
$21,800
$22,600
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122 Hilton Way, Pacifica
OFFERING MEMORANDUM
122 Hilton Way
UNDERWRITING
122 Hilton Way, Pacifica, CA
8 Units
UNDERWRITING
VALUATION
PRO FORMA -10/1/2018 RENTS
ACTUAL
INCOME
GROSS POTENTIAL RENT
Less: VACANCY LOSS
NET RENTAL INCOME
Plus: OTHER INCOME
TOTAL INCOME
EXPENSES
ADMINISTRATIVE
TURNOVER
REPAIRS & MAINTENANCE
UTILITIES
LANDSCAPING / GROUNDS
TOTAL CONTROLLABLE EXPENSES
INSURANCE
REAL ESTATE TAXES
SPECIAL ASSESSMENTS
TOTAL OPERATING EXPENSES
CAPEX / RESERVES
TOTAL EXPENSES
NOI AFTER RESERVES
VALUATION SUMMARY
LIST PRICE
PRICE PER UNIT
PRICE PER S.F.
CAP. RATE
GROSS RENT MULTIPLIER
$261,600
($13,080)
$248,520
$1,440
$249,960
$2,000
$2,400
$2,400
$11,162
$600
$18,562
$2,913
$45,328
$5,148
$71,951
$1,600
$73,551
$176,409
% GPR
-5.0%
1.13%
PRO FORMA -MARKET RENTS
PER UNIT
PER MONTH
ACTUAL
$32,700
($1,635)
$31,065
$180
$31,245
$21,800
($1,090)
$20,710
$120
$20,830
$271,200
($13,560)
$257,640
$1,440
$259,080
$250
$300
$300
$1,395
$75
$2,320
$364
$5,666
$644
$8,994
$200
$9,194
$167
$200
$200
$930
$50
$1,547
$243
$3,777
$429
$5,996
$133
$6,129
$2,000
$2,400
$2,400
$11,162
$600
$18,562
$2,913
$45,328
$5,148
$71,951
$1,600
$73,551
$22,051
$14,701
$185,529
% GPR
-5.0%
1.13%
PER UNIT
PER MONTH
$33,900
($1,695)
$32,205
$180
$32,385
$22,600
($1,130)
$21,470
$120
$21,590
$250
$300
$300
$1,395
$75
$2,320
$364
$5,666
$644
$8,994
$200
$9,194
$167
$200
$200
$930
$50
$1,547
$243
$3,777
$429
$5,996
$133
$6,129
$23,191
$15,461
PRO FORMA -10/1/2018 RENTS
PRO FORMA -MARKET RENTS
$4,000,000
$500,000
$401
4.4%
15.3
$4,000,000
$500,000
$401
4.6%
14.7
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122 Hilton Way, Pacifica
OFFERING MEMORANDUM
122 Hilton Way
More information is available on our website at:
http://arausa.listinglab.com/122HiltonWay
SAN FRANCISCO OFFICE
655 Montgomery Street, Suite 1705
San Francisco, CA 94111
MICHAEL COLHOUN I SENIOR MANAGING DIRECTOR
License CA: 01464496
mcolhoun@aranewmark.com
(415) 273-2177
RYAN DENMAN I DIRECTOR
License CA: 01995983
rdenman@aranewmark.com
(415) 430-1031
CAMERON CORWIN I ASSOCIATE
License CA: 02049950
ccorwin@aranewmark.com
(415) 430-1037
RELATIONSHIPS
THAT DELIVER RESULTS.