Project Category: Original Use Property
10 year lease on 4 year vacant Residential Care Facility in urban San Diego close to downtown
Project Qualification: Original Use PropertyNon-Real Estate: Commercial Real Estate - Re-purposed Residential Care FacilityTotal Capital Required: $5,000,000Equity Required: $2,000,000Debt Required: $3,000,000Project Control: We own all the key propertyTimeline: 90-180 daysAddress: 1119 28th St San Diego California 92102 United States
Would not qualify as "substantially improved", but will qualify as "New Use" under Enterpise Zone definitions (see attachment below) Sales price of $5,000,000 would be 5.5% going in cap rate before leverage, with 3% annual escalations. This gives an investor the stability of a long term investment and market pricing, plus getting all deferred taxes abated in 2029 when initial term of lease is up. $1.3M of brand new interior improvements for an updated 2016 building code with a very broad and unique type of use that can go here that has a high barrier to entry without hard to get discretionary use permits.