Mixed-Use

Lincoln Hotel

536 Fifth Ave, San Diego, CA 92101

Listing Price: $3,200,000

Cap Rate
7.05%
Number of Units
41
Occupancy
100.00%
Price/Unit
$78,049
Price/Gross SF
$278.99
Gross SF
11,470

Investment Overview

The Totah Group of Marcus & Millichap is pleased to present for sale the leasehold interest (Ground Lease) in the Historic Lincoln Hotel, located at 536 5th Avenue San Diego, CA, 92101. This fourstory, 11,470 square foot urban mixed-use property is situated on a 3,223 square-foot lot in the middle of 5th Avenue in Gaslamp Quarter of Downtown San Diego. The original fifty-five-year leasehold interest with the Redevelopment Agency of The City of San Diego, commenced on December 1, 1996, expiring on December 1, 2051. With approximately 31 years remaining, this presents an opportunity for an investor to acquire an asset in an irreplaceable location with significant cash flow. The Lincoln Hotel consists of 2,200 sf of ground floor retail, currently occupied by local favorite bar Double Black, which is operated by a very strong restaurant operator. The remaining (3) floors are operated exclusively as forty-one low-income SRO units. These units operate under an agreement with the Tax Credit Allocation Committee and must continue to operate as such throughout the remainder of the leasehold interest. The Tax Credit Allocation Committee agreement runs coterminous with the existing ground lease. The three floors above the ground floor retail are comprised of 41 SRO units, currently operating within the guidelines set forth Tax Credit Allocation Committee (TCAC) Agreement, designated for low income tenants meeting the income requirement. Additionally, there is a 2,200 SF basement currently occupied by Filipino American Foundation. Two blocks North of the property is the upcoming Campus at Horton by Stockdale Capital Partners. The redevelopment of Horton Plaza will transform the site into an employment and entertainment complex and will bring Downtown San Diego over 4,000 high paying tech jobs. The San Diego Convention Center Expansion a few blocks south will further activate the neighborhood with an estimated $700,000,000 in total economic impact, $13,000,000 in additional hotel revenue, and 7,000 permanent new jobs.

Investment Highlights

  • Strong in place Cap Rate of 7.05% with rental rate upside
  • Ownership – Leasehold Interest (Ground Lease)
  • Significant tax benefits to Buyer via the TCAC tax credits
  • Four Story Mixed-Use Building (Retail and SRO) 11,470 SF
  • Ground floor Retail (2,200 SF) on NNN Lease (Double Black)
  • Total of 41 SRO Units on 2nd, 3rd, 4th floors

Exclusively Listed By

Listing Price: $3,200,000

Cap Rate
7.05%
Number of Units
41
Occupancy
100.00%
Price/Unit
$78,049
Price/Gross SF
$278.99
Gross SF
11,470

Investment Highlights

  • Strong in place Cap Rate of 7.05% with rental rate upside
  • Ownership – Leasehold Interest (Ground Lease)
  • Significant tax benefits to Buyer via the TCAC tax credits
  • Four Story Mixed-Use Building (Retail and SRO) 11,470 SF
  • Ground floor Retail (2,200 SF) on NNN Lease (Double Black)
  • Total of 41 SRO Units on 2nd, 3rd, 4th floors

Investment Overview

The Totah Group of Marcus & Millichap is pleased to present for sale the leasehold interest (Ground Lease) in the Historic Lincoln Hotel, located at 536 5th Avenue San Diego, CA, 92101. This fourstory, 11,470 square foot urban mixed-use property is situated on a 3,223 square-foot lot in the middle of 5th Avenue in Gaslamp Quarter of Downtown San Diego. The original fifty-five-year leasehold interest with the Redevelopment Agency of The City of San Diego, commenced on December 1, 1996, expiring on December 1, 2051. With approximately 31 years remaining, this presents an opportunity for an investor to acquire an asset in an irreplaceable location with significant cash flow. The Lincoln Hotel consists of 2,200 sf of ground floor retail, currently occupied by local favorite bar Double Black, which is operated by a very strong restaurant operator. The remaining (3) floors are operated exclusively as forty-one low-income SRO units. These units operate under an agreement with the Tax Credit Allocation Committee and must continue to operate as such throughout the remainder of the leasehold interest. The Tax Credit Allocation Committee agreement runs coterminous with the existing ground lease. The three floors above the ground floor retail are comprised of 41 SRO units, currently operating within the guidelines set forth Tax Credit Allocation Committee (TCAC) Agreement, designated for low income tenants meeting the income requirement. Additionally, there is a 2,200 SF basement currently occupied by Filipino American Foundation. Two blocks North of the property is the upcoming Campus at Horton by Stockdale Capital Partners. The redevelopment of Horton Plaza will transform the site into an employment and entertainment complex and will bring Downtown San Diego over 4,000 high paying tech jobs. The San Diego Convention Center Expansion a few blocks south will further activate the neighborhood with an estimated $700,000,000 in total economic impact, $13,000,000 in additional hotel revenue, and 7,000 permanent new jobs.

Exclusively Listed By

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