Lender Information

Site Information:

• Site Area: Gross - 2 Acres (87,181 SF) | Net - 1.96 Acres (85,455 SF)
• Land Use Zone: M - Manufacturing
• Land Use Designation: Mixed-Use
• Neighborhood: The Company’s proposed “CONNECT” mixed-use multi-family development project site is located at 950 Orcutt Road, which is a short distance from the downtown core of San Luis Obispo, CA. The name was inspired by the property's geographical location along the bike path, which serves as a connection between the downtown hub and industrial/commercial corridor. The neighborhood immediately surrounding the property is changing from principally industrial and manufacturing uses, to a broader mix of uses, now including homes, condominiums, apartments, commercial office, and retail.
• Existing Site Conditions: Currently the site has three operating businesses occupying three separate buildings on the site that will be closed prior to the commencement of construction: Bang the Drum Brewery, Godfrey Enterprises, and Boxkite Barnyard.
• Site Environmental Assessment: Site is clean with no further action required. For reference, the property was previously operated as bulk fuel storage yard for carbon based fuels and lubricants and then as a commercial fueling depot; those operations ceased in late 2009

Project Information:

• Total Structures: 7 (1 residential, 1 amenity space for residential, 2 commercial, and 3 Automated Parking Lift Garages)
  • Residential Unit Mix: 78 Total Apartment Units | 45 Studios, 26 one-Bedroom, 7 two-Bedroom
• Building 1:
  • Intended Use: Residential (78 apartment units)
  • Total Sq. Footage: 58,660 (44,613 Rentable SF + 14,047 Lobby/Circulation/Fitness Room/Etc)
  • Occupancy Group: B / R-2
• Building 2:
  • Intended Use: Restaurant/Brewery
  • Total Sq. Footage: 2,446
  • Occupancy Group: A-2
• Building 3:
  • Intended Use: Commercial / Office space for lease
  • Total Sq. Footage: 3,215 (2,770 rentable + 445 shared bathrooms with building 4)
  • Occupancy Group: B
• Building 4:
  • Intended Use: Resident Amenity / Co-working Space
  • Total Sq. Footage: 3,000
  • Occupancy Group: A-2
• 3 Parking Garages
  • Total Sq. Footage: 5,856 sq. ft. (1,952 per garage)
• Total Buildings Sq. Ft.: 73,177
• Total Rentable Sq. Ft.: 44,613 sq. ft. residential + 2,770 sq. ft. commercial
• Projected Total Rent Collections/Month: $152,400 residential
• Projected Total Rent Collections/Year: $1,828,800 residential + $140,832 commercial
• Projected Average Residential Rent/Sq. Ft.: $3.42
• Projected Annual Expense/Residential Unit: $7,502.77
• Projected Project Annual NOI: $1,347,108
• Project Project Monthly NOI: $112,259
• Estimated Total Project Cost: $24,500,000
• Estimated Cost per Square Foot: $364
• Target Cap Rate: 5.5%
• Lease Terms (Residential): Standard Residential Lease (min. 6 month term)
• Lease Terms (Commercial): Standard NNN Leases
• Project Ownership: CONNECT SLO Partners LLC (a single purpose entity)
• Property Management Fee: 4%

San Luis Obispo Highlights:

• Downtown SLO is a humming, pedestrian friendly zone of shops, restaurants and galleries in turn-of-the-20th century buildings.
• Thursday Night Farmers’ Market brings a fiesta of produce, crafts, barbecue, street food and live entertainment to
• downtown.
• There are approximately 760 non-profits in San Luis Obispo that generate nearly $800 million in economic output each year.
• San Luis Obispo wine country lies five minutes south of downtown, putting two dozen premier wineries within easy reach.
• There are more than 25 miles of easily accessible trails in the city of San Luis Obispo.
• Mission San Luis Obispo de Tolosa, the fifth of California’s 21 Spanish missions, was founded in 1772.
• San Luis Obispo County has more than 80 miles of Pacific coastline.
• Hearst Castle, William Randolph Hearst’s elaborate Central Coast summer home, stands in solitary splendor 45 minutes to the north.
• In a typical year, San Luis Obispo sees 315 sunny days.
• Fourth lowest commute time in the state.
• Listed as one of the top 10 places to retire in the US

Housing:

• Operating Expenses for comparable properties:
• Median Gross Rent: $1,313 (2016) | $1,375 California (2016)
• Vacancy Rate: 2.58% (2016) | 3.31% California (2016)
• Median Home Value: $750,000

Local Economy/Employment:

• Unemployment Rate (County): 2.6% (Q2 2018)
• 97,500 Private Sector Jobs (Q2 2018)
• 14.3 Billion GRP (2016)
• Average Annual Wage: $44,700
• 377 New Business Registrations (Q1 2017)
• Top Employers:
  • California Polytechnic State University,Education • 3,000 employees
  • County of San Luis Obispo, Government • 2,920 employees
  • Department of State Hospitals- Atascadero, Healthcare • 2,000 employees
  • Pacific Gas & Electric, Public Utility • 1,866 employees
  • California Men’s Colony, Correctional Facility • 1,517 employees
  • Cal Poly Corp., Services • 1,400 employees
  • Tenet Healthcare, Healthcare • 1,305 employees
  • Compass Health Inc., Healthcare • 1,200 employees
  • Lucia Mar Unified School District, Education • 1,000 employees
  • Paso Robles Public Schools, Education • 935 employees
  • MINDBODY, Software • 929 employees
  • San Luis Coastal Unified School District, Education • 760 employees
  • Atascadero Unified School District, Education • 600 employees
  • French Hospital Medical Center, Healthcare • 600 employees
  • California Department of Transportation, Government • 550 employees
  • Community Action Partnership of San Luis Obispo, County • Non-Profit • 541 employees
  • California State Parks, Parks and Recreation • 450 employees
  • Cuesta College, Education • 440 employees
  • Arroyo Grande Community Hospital, Healthcare • 415 employees
  • City of San Luis Obispo, Government • 400 employees
  • Community Health Centers of the Central Coast, Healthcare • 390 employees
  • U.S. Postal Service, Postal Service • 285 employees
• Notable Tech & Engineering Companies:
  • Rosetta & LEVEL Studios
  • Amazon
  • MindBody Online
  • SRI
  • Etna Interactive
  • Hathway
  • GoDaddy
  • iFixit
  • Kibo
  • Leftlane Sports
  • CygNet
  • Rosen
  • Hortau
  • WhiteFox Defense
  • Welkio

• Debt to Equity (at total debt to actual total hard cost): 65%
• Debt to Equity (at anticipated appraised value at stabilization): 65%+
• Coverage Ratio: 1.43x