Executive Summary of 314 Beach Lofts - Coastal Oceanside, CA

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Summary

  • 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

    • Vacation 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.


The Offer

  • Investors receive:

    • 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.


Unit Mix

  • 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

  • Click here for all floor plans


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


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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

STR Advantages

  • Unlike traditional Air BnB properties (who serve only one market) we serve three markets:

    • Corporate short-term housing

    • Gov’t short-term housing

    • Vacation rentals

  • 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.

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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


FAQ


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:

Jim Simcoe

760.271.7128

Jim@SimcoeCapital.com

(text for fastest response)