3366 Pierce Street - LoopNet€¦ · Colliers International is pleased to present 3366 Pierce Street (between Alhambra St and Toledo Way) in the heart of the Marina, one of San Francisco’s

3366 PIERCE STREET Offering Memorandum - pg. 1

Mult i fami ly Investment Opportunity | Marina - San Francisco, CA

Offering Memorandum3366 Pierce Street

Table of Contents

Showing Schedule

Call for Offers

Offering Summary ................................3-4

Financial Overview ...............................5-6

Property Photographs ..........................7-10

Floor Plan .............................................11

Amenities Map ......................................12

Public Transportation ...........................13

Location Map ........................................14

Aerial of Subject Property ...................15

Tuesday August 7, 2018 | 10:00 AM - 11:30 AM

Thursday August 9, 2018 | 10:00 AM - 11:00 AM

Tuesday August 14, 2018 | 10:30 AM - 12:00 PM

Thursday August 16, 2018 | 10:00 AM - 11:00 AM

To Be Determined

James Devincenti | lic 00951916 +1 415 288 7848 | [email protected]

Brad Lagomarsino | lic 01058500 +1 415 288 7847 | [email protected]

Payam Nejad | lic 01372042+1 415 288 7872 | [email protected]

www.theDLTeam.com

Colliers International 101 2nd Street, 11th Floor San Francisco, CA 94105


Offering Summary - OverviewColliers International is pleased to present 3366 Pierce Street (between Alhambra St and Toledo Way) in the heart of the Marina, one of San Francisco’s most affluent and chic neighborhoods. Chestnut Street just a short walk away, allows residents incredible dining, retail and entertainment options. Public transportation to all parts of the city is very accessible and the use of ride-sharing services, such as Uber, Lyft & Chariot, allow tenants in the building to get around easily. Due to the Marina District’s northern location within San Francisco (a walk score of 92), residents can enjoy walks to Crissy Field, Palace of Fine Arts, Fort Mason and the Marina with its incredible views of iconic Golden Gate Bridge and the San Francisco Bay.

3366 Pierce Street is a 12 Unit, Marina style apartment building, comprised of 6-Studios and 6-One-Bedroom units, and 9 enclosed parking garage spaces. The present ownership completed a retrofit in 2017 that complies with the current soft story ordinance and added new garage doors and motors with key pads. In 2018 the fire escape was repaired and new exterior and interior paint was completed. New exterior stairs were built in 2015 and in 2008, 79 new vinyl windows were installed. Most of the building systems (the roof, the meters rooms, the boiler/hot water systems) appear to be in good condition. The units have large walk in closets, 9+ foot ceilings, updated dual-pane windows, crown molding and hardwood flooring. Some of the apartments have City views, Bay views, Palace of Fine Arts and Golden Gate Bridge views.

This well maintained property offers an investor the opportunity to acquire a pride of ownership apartment building, in a core San Francisco location, with the potential to increase cash flow and equity growth, via improvements & unit conversions.


Property InformationAddress: 3366 Pierce Street, San Francisco, CA

(between Alhambra Street & Toledo Way)

District: Marina

Property Type: Apartment Building

APN: 0466A-028

Building Square Feet: 14,424 (Per Appraisal Report)

Lot Size: 4,888 (Per Tax Record)

Floors: 3

Constructed: 1927

Zoning: RM-3

Property InformationUnit Mix: 6-Studios, 6-one bedrooms & 9 parking

spaces

Kitchens: Original wood cabinetry

Mostly tiled counters and preparation area

Double door refrigerators

Gas stove/oven

Bathrooms: Tiled counters

Tiled floors

Vanities/cabinet

Pedestal sinks

Tub shower combinations

Bedrooms: Hardwood floors

Ample sized bedroom areas

Large walk-in closets

Abundance of Natural light

Living Room Area: Hardwood floors

Mini blinds

Notes: Matrix completed the seismic retrofit in 2017 ($154,600)

New exterior & interior paint in 2018 ($44,700)

New exterior stairs built in 2015 ($23,500)

Fire Escape Repair in 2018 ($4,500)

New garage doors and motors with keypads installed 2017 ($6,179)

79 new vinyl windows installed in 2008 ($40,000)

Views of the the Bay, the Golden Gate Bridge and Palace of Fine Arts from some of the units

* Notes from Owner

Building SystemsFoundation: Concrete foundation

Structure: Woodframe

Façade: Etched Stucco Exterior

Roof System Tar & gravel (rubber roof off unit 101)

Electrical Service: Separately metered - 200 Amps

Gas Service: Separately metered

Fire Protection System: Fire sprinklers in storage units, local fire alarm system / smoke detectors in hallways and in units

Heat Source: Steam heat radiators

Hot Water: A.O. Smith 119 gallons

Plumbing: Mix of copper and galvanized

Circuit Breakers: Yes

Common AreasDoor Entry System: DKS Intercom System

Portico: Tiled entry

Lobby Flooring: Spanish Tile

Landing Areas: Carpet

Garbage: Chute system

Laundry: Space for one washer and dryer (hookups available and have washer and dryer plumbing installation estimate for $3,500 from September of 2017)

Storage: 2 storage spacesBig Garage Storage: 9’8” x 8’3”Storage Off “Laundry Room”: 10’ x 7’10”*Rough-Measurements from Owner

Offering Summary - Property Details


Annual Operating Expenses Current Pre Conversion Post ConversionProperty Taxes $91,439 $91,439 $91,439

Special Assessment Tax $1,372 $1,372 $1,372

Insurance $9,093 $9,093 $9,093

*Repairs & Maintenance $9,000 $9,000 $9,000

Phone Service $424 $424 $424

*Property Management $17,198 $18,749 $23,083

Janitorial $3,334 $3,334 $3,334

PG&E $10,717 $10,717 $10,717

Trash $5,163 $5,163 $5,163

Water $9,454 $9,454 $9,454

Total Operating Expenses $157,195 $158,746 $163,080 *Expenses are estimated: Off site mgmt at 4% of gross / Repairs & Maintenance-$750 per unit

Financial Overview3366 Pierce Street, San Francisco, CA 94123

Financial SummarySale Price $7,800,000

Down Payment $4,400,000

Number of Units 12

Price/Unit $650,000

Gross Square Feet 14,424

Price/Square Foot $541

CAP Rate-Current 3.32%

CAP Rate-Pro Forma 5.07%

GRM-Current 18.14

GRM-Pro Forma 13.52

Year Built 1927

Lot Size 4,888

Annual Gross Income Current Pre Conversion Post ConversionGross Potential Income $429,961 $468,720 $577,080

Gross Rental Income $389,881 $424,440 $532,800

Vacancy (3.5%) $13,646 $14,855 $18,648

AGI $416,315 $453,865 $558,432

Expenses $157,195 $158,746 $163,080

NOI $259,120 $295,119 $395,352

FinancingLoan Amount $3,400,000

Loan Type Proposed New

Interest Rate 4.59%

Program 3 Year Interest Only

Loan to Value 44%Loan Quote: First Foundation Bank - July 2018 (Loan rates are time sensitive and subject to change)

Cash Flow After Debt Service Current Pre Conversion Post ConversionLess Debt Service $156,060 $156,060 $156,060

Cash Flow $103,060 $139,059 $239,292Cash on Cash Return 2.34% 3.16% 5.44%

Expenses as % of Gross 37% 34% 28%Expenses per Unit $13,100 $13,229 $13,590


Financial Overview (cont.)3366 Pierce Street, San Francisco, CA 94123

Unit No. Unit Type Rents Total Rooms Sq Ft Market Pre Market Post Move In NotesConversion Conversion Date

101 1 Bedroom $3,394.04 4 929 $3,400.00 $4,000.00 9/6/2014

102 Studio $2,495.00 3 690 $2,495.00 $3,400.00 6/22/2018

103 Studio $1,142.60 3 676 $2,495.00 $3,400.00 9/1/1985

104 1 Bedroom $3,300.00 4 915 $3,400.00 $4,000.00 10/1/2017

201 1 Bedroom $2,907.39 4 929 $3,400.00 $4,000.00 5/10/2013

202 Studio $2,300.00 3 690 $2,495.00 $3,400.00 10/1/2017

203 Studio $2,540.00 3 676 $2,495.00 $3,400.00 5/1/2017

204 1 Bedroom $2,907.39 4 915 $3,400.00 $4,000.00 5/15/2013

301 1 Bedroom $2,849.24 4 929 $3,400.00 $4,000.00 5/1/2008 Parking Included

302 Studio $2,759.40 3 690 $2,495.00 $3,400.00 9/1/2016

303 Studio $2,495.00 3 676 $2,495.00 $3,400.00 12/21/2015 Vacating Sep. 5th

304 1 Bedroom $3,400.00 4 915 $3,400.00 $4,000.00 12/4/2017

Monthly Rent $32,490 42 9,630 $35,370 $44,400

Parking $2,600.00 $2,950 $2,950 8 vacant spots

Storage $500.00 $500.00 $500.00 2 Vacant storage spaces

*Laundry $240.00 $240.00 $240.00 Needs to be built

Monthly Total $35,830 $39,060 $48,090

Annual Total $429,961 $468,720 $577,080 Upside 34%

Rent Roll

NotesProjected rents based on Berendt Properties5 full parking spaces projected at $350 per space2 tandem parking spaces projected at $250 per space

*Laundry to be built out - being projected @ $20 per Unit

Storage projected at $250 per space

Studio to 1-Bedroom, and 1-Bedroom to 2-Bedroom Conversions

UnitsStudio - 6

1 Bedroom - 6

Parking - 9

Storage - 2






Floor Plan3366 Pierce Street, San Francisco, CA 94123


Delarosa The Dorian Marina Supermarket Bank of America

Blackwood Pacific Catch Safeway Citi Bank

Super Duper Burgers Stock in Trade Walgreens First National Bank

The Tipsy Pig Alegrias United Liquor & Deli Wells Fargo Bank

Tacolicious Amici’s East Coast Pizzeria Valentino Market

Squat & Gobble Cafe Mels Drive-In

Maybeck’s Balboa Cafe

Chestnut St Coffee Roastery Mina Test Kitchen

The Plant Organic Cafe Sabrosa

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Restaurants & Bars Convenience & Grocery Stores Banks & ATM’sX X X

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Amenities

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Subject Property3366 Pierce St

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3366 Pierce Street, San Francisco, CA 94123


With Immediate Access to One of the Nation’s Best Public Transit Systems

The area around 3366 Pierce Street offers an extensive transportation network which ensures superior regional access

throughout San Francisco and the surrounding Bay Area. Access Across America -Transit 2017 ranked San Francisco second

only to New York for public transit efficiency, based on how many jobs a resident can access within a 10 to 30 minute

commute during the morning rush hours of 7am to 9am. 3366 Pierce Street is within walking distance of a variety of public

transit, including local & regional bus lines all in addition to a variety of San Francisco’s caravan of ‘Tech Shuttles’ moving

busloads of Google, Genentech, Facebook, and Apple employees from their homes in San Francisco to their job centers in

Silicon Valley.

Muni Bus Lines

Public Transportation3366 Pierce Street, San Francisco, CA 94123


v

CALIFORNIA 1

VAN NESS AVE

FILLMORE STREET

UNION STREET

CHESTNUT STREET

GOLDEN GATE TRANSIT (to Marin - North Bay)

38BX GEARY RAPID (to the Peninsula and South Bay)

CORPORATE BUS LINE (to the Peninsula and South Bay)

38R

41

28

30X

30X

22

47

30X

1BX

1BX


Location3366 Pierce Street, San Francisco, CA 94123

N




Confidentiality & Disclaimer StatementThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 3366 Pierce Street San Francisco, CA 94123. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by 3366 Pierce Street from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from 3366 Pierce Street you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence; and

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of 3366 Pierce Street or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date of this Offering Memorandum.

Aerial Map3366 Pierce Street, San Francisco, CA 94123


www.theDLTeam.com

Offering Memorandum3366 Pierce Street

Mult i fami ly Investment Opportunity | Marina - San Francisco, CA

James Devincenti | lic 00951916+1 415 288 7848 | [email protected]

Brad Lagomarsino | lic 01058500+1 415 288 7847 | [email protected]

Payam Nejad | lic 1372042+1 415 288 7872 | [email protected]

Documents

3366 Pierce Street - LoopNet€¦ · Colliers International is pleased to present 3366 Pierce Street (between Alhambra St and Toledo Way) in the heart of the Marina, one of San Francisco’s