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PARK STATION
LA MESA, CALIFORNIA
Predevelopment Investment Memorandum: Oct. 2015
DISCLOSURE:
The following Information has been assembled for the purpose of informing and providing
assistance to a prospe...
Dear Friend:
Urban Housing Partners Inc. and the Kitzman Family have come together to present the opportunity to invest wi...
Park Station, La Mesa
REGIONAL MAP:
Park Station, La Mesa
PROJECT LOCATION:
Park Station, La Mesa
EXECUTIVE SUMMARY:
RESIDENTIAL/RETAIL SENIOR HOUSING HOTEL
SITE SUMMARY:
Land Area (SF) 108,900 50,0...
INVESTMENT STRUCTURE:
Park Station, La Mesa
DEVELOPMENT TEAM:
Developer: Urban Housing Partners, Inc.
• Land Owner: Kitzman Family
• Development Manager: Urban Housin...
Combined Experience: 50+ Years of urban development
Professional Team: Sherm Harmer, Michael Dunham,
Jake Schwartz, Lenett...
MARKET SUMMARY:
La Mesa:
• Population: 58,150
• Housing Units: 25,614
• Located directly east of San Diego with El Cajon b...
COMPARABLES MAP:
Park Station, La Mesa
APARTMENT COMPARABLE:
1) Alterra at Grossmont Trolley
• # Units: 297
• % Occupied: 99%
• Unit Sizes: 616-1,275 s.f.
• Rent...
2) Pravada at Grossmont Trolley
• # Units: 230
• % Occupied: 99%
• Unit Sizes: 646-1,265 s.f.
• Rents: $1,655-3,315
• Ave....
3) The Quarry Apartments
• # Units: 60
• % Occupied: 98%
• Unit Sizes: 629-1,276 s.f.
• Rents: $1,411-2,494
• Ave. Unit Si...
4) Seta Apartments
• # Units: 198
• % Occupied: 15% - Currently U.C.
• Unit Sizes: 756-1,369 s.f.
• Rents: $1,821-2,795
• ...
PROJECT BUDGET SUMMARY:
Park Station, La Mesa
RESIDENTIAL/
RETAIL
SENIOR
HOUSING
HOTEL TOTAL
LAND COST $8,000,000 11.9% $7...
PREDEVELOPMENT / DESIGN COST:
Thisbudgetamountisrequiredpriortostartofconstruction.
PREDEVELOPMENT / DESIGN COST:
Park Sta...
PROJECT SCHEDULE:
PREDEVELOPMENT / DESIGN: 17 Months (1.4 years)
CONSTRUCTION: 18 Months (1.5 years)
FULLY RENTED: 12 Mont...
PROJECTED FINANCIAL PERFORMANCE:
Residential/
Retail
Senior Housing Hotel
IRR% (Project Level) 19.71% 25.95% 20.81 %
Inves...
Park Station, La Mesa
Park Station, La Mesa
Park Station, La Mesa
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Park Station, La Mesa Hotel, Senior Living and Residential/Retail

Ground up project with experienced developer team. There are three separate projects: Hotel, Senior Housing and Residential with a Retail component. Seeking JV Equity partners!! Please contact us for more information.

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Park Station, La Mesa Hotel, Senior Living and Residential/Retail

  1. 1. PARK STATION LA MESA, CALIFORNIA Predevelopment Investment Memorandum: Oct. 2015
  2. 2. DISCLOSURE: The following Information has been assembled for the purpose of informing and providing assistance to a prospective Investor of the Park Station La Mesa real estate development project. The information contained in herein is believed to be reliable, but no representation or warranty, express or implied, is being made by the Owner/Developer or any of their representatives or affiliates, as to the accuracy or completeness of the information contained herein. This information is subject to omissions, corrections of errors, change of terms, prior sale or withdrawal from the market without notice. The prospective Investor is fully and solely responsible for any due diligence or investigation that needs to be done in order to make a fully informed decision to invest in this project. Prospective Investors are expected to establish their own opinion as to the feasibility of this development opportunity and the risks associated with it. The Owner/Developer reserves the right, at its sole discretion, to reject any and all offers to invest in the Project and/or to terminate discussions with any party at any time with or without notice. Owner/Developer shall have no legal commitment or obligation to any entity reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the joint venture in the Property has been fully executed, delivered, and approved by Owner/Developer, and any conditions to Owner/Developer’s obligations there under have been satisfied or waived. Park Station, La Mesa
  3. 3. Dear Friend: Urban Housing Partners Inc. and the Kitzman Family have come together to present the opportunity to invest with us as an “early investor” in the newly revised Park Station project in La Mesa, CA. The 4.6 site location is in the very heart of the City of La Mesa at the intersection of Baltimore Dr. and University Ave. This location is arguably the most desirable urban, mixed-use site in the entire zip code! The newest design will be designed “by right”. In other words, we will be designing within what the existing mixed-use zone already allows. There will be no environmental review process. Your investment capital will be used to advance the project through the entire design process, which will take an estimated 12-16 months. At that point, construction will begin which will take 16-18 months. Therefore, the total estimated time from today to project completion is: 28-34 months. The investment strategy of Urban Housing Partners and the Kitzman Family is to hold the newly developed property for the long run and hand it down to future generations. Therefore, we are seeking investors that have the same philosophical investment strategy. Your investment capital will be used to pay for pre-development related costs such as: architects, engineers, third party consultants, market studies, marketing and public relations. We will be the Development Manager keeping you the investor apprised on the progress of the project on a monthly basis. All accounting and financial reporting will be provided on a monthly basis as well. Our total predevelopment funding request is $3.0M. We hope that you will consider this investment with us so we can advance the project and built another great mixed-use community in San Diego County! In Highest Regards, Urban Housing Partners, Inc. Sherm, Mike, Jake Lenette, and Stephan. Park Station, La Mesa
  4. 4. Park Station, La Mesa REGIONAL MAP:
  5. 5. Park Station, La Mesa PROJECT LOCATION:
  6. 6. Park Station, La Mesa EXECUTIVE SUMMARY: RESIDENTIAL/RETAIL SENIOR HOUSING HOTEL SITE SUMMARY: Land Area (SF) 108,900 50,000 50,000 Maximum SF Allowed No Max – Dependent on density (40 du/acre) No Max No Max Zone / Use Type Mixed-Use Mixed-Use Mixed-Use Height Limit 46’ 46’ 46’ PROJECT SUMMARY: # Units (Rooms) 180 120 150 Retail Space (SF) 29,084 - 600 Parking Spaces 476 - Subterranean 40 - Subterranean 188 - Subterranean Project Size (SF) 214,084 90,000 84,023 Avg. Unit Size (SF) 874 514 350 Avg. Rent /Unit (ADR) $2,603 $6,917 $170 (ADR) Stabilized Occupancy 95% 90% 72% FINANCIAL SUMMARY: Total Project Cost $67,300,000 $42,000,000 $37,600,000 Value Yr. 2 Stabilized $86,600,000 $47,800,000 $43,900,000 Project Profit $34,300,000 $29,000,000 $23,200,000
  7. 7. INVESTMENT STRUCTURE: Park Station, La Mesa
  8. 8. DEVELOPMENT TEAM: Developer: Urban Housing Partners, Inc. • Land Owner: Kitzman Family • Development Manager: Urban Housing Partners, Inc. • Length of Partnership: 10 Years Designer/Builder: • Project Architect: AVRP / Skyport; or Competitive Bidding Process • Project Civil Engineer: Fuscoe Engineering; or Competitive Bidding Process • Structural Engineer: Patterson; or Competitive Bidding Process • Soil Engineering: Leighton; or Competitive Bidding Process • General Contractor: TB Pennick; or Competitive Bidding Process Marketing/Public Communications: • Marketing Management: Hewitt Marketing Park Station, La Mesa
  9. 9. Combined Experience: 50+ Years of urban development Professional Team: Sherm Harmer, Michael Dunham, Jake Schwartz, Lenette Hewitt Past Projects: VILLAGE WALK (Olson Co.) Little Italy 72 Unit Mid-Rise CITY WALK (Olson Co.) Downtown 109 Unit Mid-Rise UNION SQUARE East Village 263 Unit Mid-Rise PARK BOULEVARD EAST/WEST East Village 221 Units Mid-Rise NORTH PARK CONDOMINIUMS North Park 224 Units Mid-Rise SANTALUZ Carmel Valley 120 Affordable for Sale BRESSI RANCH Carlsbad 100 Affordable for Sale LAFAYETTE RESIDENCES North Park 255 Unit Mid-Rise SAPPHIRE TOWER Downtown 96 Unit High Rise SMART CORNER East Village 299 Unit High-Rise Current Projects: PALATINE (McMillin) Little Italy 99 Unit Mid-Rise Rental URBAN HOUSING PARTNERS, Inc.: Park Station, La Mesa
  10. 10. MARKET SUMMARY: La Mesa: • Population: 58,150 • Housing Units: 25,614 • Located directly east of San Diego with El Cajon bordering the west • 12 miles to the Pacific Ocean • 9 miles to Downtown San Diego • 55% Rental Housing • Apartment Vacancy: 6-7% • Median Household Income: $53,000 • 4 Competing Projects Neighborhood: • La Mesa Blvd. – Downtown La Mesa’s “Main Street” • La Mesa Springs Shopping Center • City Hall, Fire Station, Police Station, Library, Post Office • Traffic on: I-8: 188,000/day; Baltimore Dr.: 24,000/day; Spring St.: 23,000/day Park Station, La Mesa
  11. 11. COMPARABLES MAP: Park Station, La Mesa
  12. 12. APARTMENT COMPARABLE: 1) Alterra at Grossmont Trolley • # Units: 297 • % Occupied: 99% • Unit Sizes: 616-1,275 s.f. • Rents: $1,691-3,279 • Ave. Unit Size: 914 s.f. • Proximity: 1.6 miles • Design: Type 5; 4 over 2 partially subterranean parking • Amenities: Pool, Spa, Fitness, Clubhouse, A/C, W/D in Unit • Comments: Built in 2010 Class A Apartments 79 Du/Acre Located directly adjacent to the Grossmont Transit Center Park Station, La Mesa
  13. 13. 2) Pravada at Grossmont Trolley • # Units: 230 • % Occupied: 99% • Unit Sizes: 646-1,265 s.f. • Rents: $1,655-3,315 • Ave. Unit Size: 926 s.f. • Proximity: 1.6 miles • Design: Type 5; 4 over 2 partially subterranean parking • Amenities: Pool, Spa, Fitness, Clubhouse, Theatre Room, A/C, W/D in Unit • Comments: Built in 2009 Class A Apartments 75 Du/Acre Located directly adjacent to the Grossmont Transit Center Park Station, La Mesa APARTMENT COMPARABLE:
  14. 14. 3) The Quarry Apartments • # Units: 60 • % Occupied: 98% • Unit Sizes: 629-1,276 s.f. • Rents: $1,411-2,494 • Ave. Unit Size: 879 s.f. • Proximity: 1.0 miles • Design: Type 5; 3 over tuck under and surface parking • Amenities: Courtyard, BBQ Grill Area, A/C, W/D in unit • Comments: Built in 2015 Class B Apartments 38 Du/Acre Located close to the Spring Street Trolley Station Park Station, La Mesa APARTMENT COMPARABLE:
  15. 15. 4) Seta Apartments • # Units: 198 • % Occupied: 15% - Currently U.C. • Unit Sizes: 756-1,369 s.f. • Rents: $1,821-2,795 • Ave. Unit Size: 992 s.f. • Proximity: 1.2 miles • Design: Type 5; 3 story garden style w/ covered surface parking • Amenities: Pool, Spa, Cabanas, Fitness, Grill, A/C, W/D in unit • Comments: Built in 2015 (Roughly 25% complete as of 10/28/15) Class A Apartments 22 Du/Acre In the process of leasing up; some of the site is still under construction Park Station, La Mesa APARTMENT COMPARABLE:
  16. 16. PROJECT BUDGET SUMMARY: Park Station, La Mesa RESIDENTIAL/ RETAIL SENIOR HOUSING HOTEL TOTAL LAND COST $8,000,000 11.9% $7,000,000 16.7% $5,000,000 13.3% $20,000,000 SOFT COST $13,000,000 19.3% $13,000,000 31.0% $12,800,000 34.0% $38,800,000 HARD COST $46,300,000 68.8% $22,000,000 52.3% $19,800,000 52.7% $88,100,000 TOTAL COST $67,300,000 $42,000,000 $37,600,000 $146,900,000 TOTAL COST (/unit) $373,900 $350,000 $250,700 - STABALIZED VALUE (Year 2) $86,600,000 $47,800,000 $43,900,000 $178,300,000 STABALIZED VALUE (/unit) $481,100 $398,300 $292,700 - PROJECT PROFIT $34,300,000 $29,000,000 $23,200,000 $86,500,000 PROJECT PROFIT (/unit) $190,500 $241,600 $154,700 -
  17. 17. PREDEVELOPMENT / DESIGN COST: Thisbudgetamountisrequiredpriortostartofconstruction. PREDEVELOPMENT / DESIGN COST: Park Station, La Mesa Land Contract / Legal $ 110,000 Indirect / Design Costs $ 2,467,500 Marketing / Public Relations $ 53,500 Market Reports / Economist $ 40,000 Financing Fees / Deposits $ 175,000 Fees & Permits Deposits $ 105,000 General & Administrative $ 267,500 Total Predevelopment / Design Costs $ 3,218,500
  18. 18. PROJECT SCHEDULE: PREDEVELOPMENT / DESIGN: 17 Months (1.4 years) CONSTRUCTION: 18 Months (1.5 years) FULLY RENTED: 12 Months (1.0 years) TOTAL SCHEDULE: 47 Months (3.9 Years) Park Station, La Mesa
  19. 19. PROJECTED FINANCIAL PERFORMANCE: Residential/ Retail Senior Housing Hotel IRR% (Project Level) 19.71% 25.95% 20.81 % Investor IRR% 17.91% - 19.45% Developer IRR% 24.33% 28.00% 25.59% Land Owner IRR% 19.92% 23.70% 20.86% Multiple (Project Level) 2.72 2.97 2.35 Return on Cost (ROC) 6.05% 8.76% 8.97% Profit (Project Level) $34,300,000 $29,000,000 $23,200,000 Park Station, La Mesa
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Ground up project with experienced developer team. There are three separate projects: Hotel, Senior Housing and Residential with a Retail component. Seeking JV Equity partners!! Please contact us for more information.

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