Executive Summary of 314 Beach Lofts - Coastal Oceanside, CA
314 Beach Lofts is under construction and will be finished in July 2019.
It is owned by Cleveland Street Beach Lofts, LLC. Upon completion it will be purchased by Beach Vacation Properties, LLC (BVP).
BVP will operate the property as a short-term rental property (STR) serving three main markets:
Short-term corporate rentals
Short-term government contractor housing for Camp Pendleton (Oceanside, CA)
314 Beach Lofts is zoned for STR, hotel and residential.
314 Beach Lofts has a fully approved condo map in place.
There is an option to reconfigure a few of the units to create 6-8 additional units or approximately 15 additional bedrooms.
10% preferred return (compounds annually)
Pro-rata share of 75% of all operating profits
Pro-rata share of all sales profits
STR Operator Offers
We’ve received interest from several leading national master lease partners, who would rent the entire project annually and guarantee the rent.
These include: Domio, Sonder, Minthouse, Stay Alfred, Common, Outsite, etc.
To date we’ve received two LOI’s with fully guaranteed rent.
Current & Future Zoning
Zoned for commercial, hotel, residential, & mixed-use
Can be re-zoned for hotel use by obtaining Conditional Use Permit through the City of Oceanside
We’ve met with City Council members individually and have their support to operate the property as either STR or a hotel.
We are exempt from future legislative STR restrictions due to our unique zoning and location in the Coastal Zone.
Eight 2 bed/ 2 bath units
Two 3 bed/3 bath units
Washer & dryer in each unit
Secured parking garage, two spots per unit
Storage for each unit
Two retail (600 sq. ft. each, can be combined)
Ability to add 6-8 units by reconfiguring current layout
Open floor plans, a lot of windows and natural light
Projected Capital Stack
$11.3M purchase price (BVP purchases from CSBL)
$8,814,000 - 1st loan (75% LTV)
$2,938,000 - Equity and/or mezz debt
About 314 Beach Lofts
Address: 314 N. Cleveland Street, Oceanside, CA, 92054
Description: Luxury vacation rental lofts in a walkable community by the beach in Oceanside, California
Brand new construction, built using the latest in green building methods & materials
10 residential lofts, 2 retail condos
Mix of 2 & 3 bedroom lofts, 1000-2100 square feet
Open floor-plans, luxury appliances, oversized balconies
2 community decks & ocean view deck
Approx. total retail square feet = 1370
Unlike traditional Air BnB properties (who serve only one market) we serve three markets:
Corporate short-term housing
Gov’t short-term housing
Fully zoned right now for STR operations, no permits needed
Centrally located- two blocks to Amtrak, Downtown and the world famous Oceanside Pier.
30 mins to Downtown San diego, 45 minutes to Orange County, 90 minutes to Los Angeles.
Units are oversized with luxury amenities for longer stays.
Little luxury STR competition in local area.
HOA allows for three-day minimum stays.
About Jim Simcoe, Managing Member, BVP
Managing Member for Beach Vacation Properties, LLC
Sustainable home developer and author
Certified Green Building Professional
Real Estate Broker
Featured on NBC, Fox, SmartMoney.com, San Diego Insider TV
Past speaking engagements include: San Diego State University, University of California at San Diego, University of San Diego, etc.
Published in Personal Real Estate Investor Magazine, BiggerPockets.com, San Diego Business Journal, EcoHome, etc
Q - What is the minimum investment amount?
A - The minimum investment amount is $50,000.
Q - Will you be offering debt positions (mezz debt or second trust deed funding) in addition to equity positions?
A - Yes, please contact Jim Simcoe to discuss the debt positions available.
Q - How do I make money?
A - As an investor you make money in two ways.
You receive a preferred return of 10% per year.
You get your share of profits based on how much you invest relative to the total investment pool. For example, if you invest $100k and we raise $2M (investment pool), you’d have 5% of the total profit pool.
Q - How are profits split between investors and the company?
A - Investors receive 75% of all profits. Our company receives 25%. At time of sale our company does not receive any profits until all investors have been paid back 100% of their initial capital.
Q - Can I invest through my self-directed IRA or 1031 Exchange?
A - Yes. Call us to discuss how best to set this up.
Q - Where can I get a copy of the investment documents and projected proforma?
A - Call us to get a link to those documents.
Q - What is the exit plan?
A - We have three potential exit plans on this deal:
Sell the building as a whole in 3-4 years.
Refinance it in three years and cash-flow indefinitely.
Sell units individually in 3-4 years if/when market conditions are favorable
Q - What advantages do we have over other Air BnB properties?
A - We have several advantages including:
We target three distinct STR communities: Air BnB renters, corporate housing renters and gov’t contractor renters (due to proximity to Camp Pendleton).
Our building is brand new and built to luxury standards.
We control the HOA and have City cooperation to operate as an Air BnB property.
Q - When will construction be completed?
A - Construction is scheduled to be completed by July 2019.
Q - What plans do you have to increase units (and thus increase profits)?
A - We are currently working with our architect to add 6-8 units to the development. This would be done by moving a few walls and reconfiguring a few entranceways. Once the plans are complete we’ll present to the city. With their approval we would take one unit offline at a time while we complete the work. Luckily none of the work is structural so it should be completed relatively easily/quickly.
For more information contact:
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