OFFERING MEMORANDUM

regarding

390 BARTLETT STREET,SAN FRANCISCO, CA

JAY GREENBERGSENIOR DIRECTORAlain Pinel Investment Group

415.593.8615JAYGREENBERG@APR.COMLICENSE: 01049568

TRIGG SPLENDASENIOR INVESTMENT ADVISOR

Alain Pinel Investment Group

415.593.8616TSPLENDA@APR.COM

LICENSE: 01484698

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

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TABLE OF CONTENTS

PAGE 3 Tour and Offer Process Summary

PAGE 4 Offering Summary

PAGE 5 Property Facts

PAGE 6 Property Amenities

PAGE 7 Aerial View of Property Location

PAGE 8 Rent Roll

PAGE 9 Income and Expense Information

PAGE 10 Financial Summary

PAGE 11-12 Property Photos

PAGE 13 Confidentiality and Disclaimer

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

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TOUR AND OFFER PROCESS SUMMARY

Tuesday September 4th 2:00pm-3:30pm Broker’s Open

Wednesday September 5th 11:00am-12:00 noon

Tuesday September 11th 2:30pm-3:30pm Broker’s Open

Wednesday September 12th 11:00am-12:00 noon

JAY GREENBERGSENIOR DIRECTOR

415.593.86152001 UNION STREET, SUITE 200SAN FRANCISCO, CA 94123JAYGREENBERG@APR.COMLICENSE CA: 01049568

TERMS All cash to the Seller.

PROPERTY TOURS All buyers are encouraged to tour the property.

The property will be shown on the following dates and times

OFFERS All written offers must be received by Broker no later than:

Thursday, September 13th, 2018, by 9:00am.Contact listing agent with any questions.

All offers should be addressed to:

A FULL DUE DILLIGENCE PACKAGE IS AVAILABLE UPON REQUEST. PACKAGE INCLUDES: RECENT PEST, CONTRACTORS,

SEWER LATERAL, ENERGY/WATER INSPECTIONS AND SOFT STORY PLANS (Soft Story Work has been Completed as of August 2018)

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

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OFFERING SUMMARY

A FULL DUE DILLIGENCE PACKAGE IS AVAILABLE UPON REQUEST. PACKAGE INCLUDES: RECENT PEST, CONTRACTORS,

SEWER LATERAL, ENERGY/WATER INSPECTIONS AND SOFT STORY PLANS (Soft Story Work has been Completed as of August 2018)

390 BARTLETT STREET is located at the NW corner of Bartlett and 25th Streets in the Mis-sion District and is bordered between Mission and Valencia Streets. The Inner Mission district is one of the most diverse and energetic areas in all of San Francisco. It has an eclectic mix of clothing stores, a vibrant art scene, and a plethora of multi-cultural restaurants-both new and old. The area offers convenient transportation options on Bart (24th St /Mission St.) & by Muni bus, allowing quick access to the downtown, Financial District and other parts of San Francisco. The property is also within access to Hwy 101 linking the area to the East Bay and the US 101 Peninsula corridor.

390 Bartlett St. is a classic Marina style apartment building. The property was built in 1925 and is wood frame structure (Brick Façade) with a concrete foundation. The soft story work was completed in August 2018 and the package for soft story rent pass-through is currently being processed for submittal to the San Francisco Rent Board. There is potential to add 5 or more additional dwelling units per the city’s ADU program. The property consists cur-rently of 15 residential units, 9 individual parking garages, and coin operated laundry with an attractive large lobby entrance. The unit mix is eleven studios and four 1-bdrm units. The units are spacious, with large walk in closets and all studios have the potential to be con-verted into 1-bdrm units. The electric system was upgraded in August of 2017 with new 400 amp service and the building is separately metered for gas and electric. The heat is provided by a steam boiler which is approximately 11 years old with a separate water heater. Four units have been converted from studios to 1-bdrms and have been tastefully renovated with new cabinets, granite counter tops, dishwashers, garbage disposals, stainless appliances, upgraded bathrooms, and new light and plumbing fixtures.

This property offers an investor a well maintained property with add value and rental upside coupled with an immediate return and cash flow in a premier neighborhood without large capital expenditures in the near future.

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

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YEAR COMPLETED 1925

SITE SQUARE FOOTAGE 4,356

PARCEL NUMEBER 6515-013

BUILDING SQUARE FOOTAGE 9,186

TOTAL UNITS 15

PARKING 9

LAUNDRY Coin Operated

ELECTRICAL Separately Metered

GAS Separately Metered

HEATING Steam

CONSTRUCTION Woodframe/Stucco with Concrete Foundation

SEISMIC RETROFIT Soft Story Compliant

ASSUMPTIONS Unit 8 will be delivered vacant at the Close of Escrow

PROPERTY FACTS

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

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PROPERTY AMENITIES

• Soft Story Compliant

• Premier Corner Location

• Walking Distance to Shopping, Nightlife and Public Transportation

• Large Bright Units

• Abundant Closet Space

• Potential to add 5 Large Units (ADUs)

• 9 Individual Garages

• Coin Operated Laundry

• Hardwood Floors

• Well Maintained with Pride of Ownership

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

AERIAL VIEW OF PROPERTY LOCATION

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

RENT ROLL

UNIT NO.

UNIT TYPE

CURRENT RENT

PARKING SPACE #

PARKING RENTS

BOND PASS

THROUGH

WATER PASS

THROUGH

7-YEAR CIP 6/1/18 thru 5/31/2025

10-YEAR CIP 6/1/18 thru 5/31/2028

SEISMIC PASS

THROUGH **

TOTAL RENT

MOVE-IN DATE

1 Studio $1,010.56 1 Included $17.08 $2.32 $13.02 $23.42 $70.46 $1,136.86 1/25/13

2 Studio $1,715.46 $14.82 $2.13 $13.02 $23.42 $70.46 $1,839.31 6/13/10

3 Studio $1,421.38 $17.08 $2.32 $13.02 $70.46 $1,547.68 1/21/07

4 1-Bedroom $2,856.49 4 $209.51 $3,066.00 1/16/17

5 1-Bedroom $2,794.00 $17.08 $2,811.08 8/26/17

6 Studio $1,657.63 $14.82 $2.13 $13.02 $23.42 $70.46 $1,781.48 5/1/10

7 Studio $1,115.72 7 Included $17.08 $2.32 $13.02 $23.42 $70.46 $1,242.02 6/22/86

8 1-Bedroom $3,350.00 $3,350.00 Vacant Projected

9 1-Bedroom $3,125.84 3 Included $14.82 $2.13 $13.02 $23.42 $70.46 $3,249.69 11/20/13

10 Studio $1,514.33 8 $200.00 $14.82 $2.13 $13.02 $23.42 $70.46 $1,838.18 1/1/10

11 Studio $1,516.14 2 $316.49 $17.08 $2.32 $13.02 $35.07 $70.46 $1,970.58 7/1/07

12 Studio $1,243.47 9 Included $17.08 $2.32 $13.02 $23.42 $70.46 $1,369.77 3/1/103

14 Studio $1,010.76 $17.08 $2.32 $13.02 $23.42 $70.46 $1,137.06 2/19/03

15 Studio $971.51 $17.08 $2.32 $13.02 $23.42 $70.46 $1,097.81 11/1/93

16 Studio $1,733.25 6 $219.08 $14.82 $2.13 $13.02 $23.42 $70.46 $2,076.18 6/13/10

TOTAL MONTHLY RENTAL INCOME $27,036.54 $945.08 $210.74 $26.89 $156.24 $292.69 $845.52 $29,513.70

OTHER INCOMELaundry* (estimated) $225.00* Projected

Parking #5 (estimated) $300.00 Vacant/Projected

Storage A Included for Unit 14

TOTAL MONTHLY INCOME $30,038.70 TOTAL ANNUAL INCOME $360,464.40

FOOTNOTES: * Projected- 15 units @ $15.00 per month per unit | ** Soft Story Retrofit complete/Rent Board package being assembled.

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

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INCOME AND EXPENSE INFORMATION

ESTIMATED ANNUAL REVENUE

Sceduled Annual Gross Income $360,464

Less: Vacancy / Deductions (2%) $7,209

Effective Gross Income $353,255

Estimated Annual Expenses ($121,188)

NET OPERATING INCOME $233,067

ESTIMATED ANNUAL EXPENSES

Real Estate Taxes $65,054

Insurance $6,003

PG&E $11,948

Water $6,811

Garbage $5,336

Janitorial (estimated)* $2,202

Phone/Internet $1,534

Miscellaneous (estimated)* $2,500

Management (estimated)* $4,800

Repairs & Maintenance (estimated)* $11,250

Reserves & Replacements (estimated)* $3,750

TOTAL EXPENSES $121,188 EXPENSES/UNIT $8,079

EXPENSES/SF $13.19

% OF EGI 34.31%

*Estimates

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

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FINANCIAL SUMMARY

PRICINGPrice $5,500,000

Number of Units 15

Price per Unit $366,667

Square Footage 9,186

Price per Square Foot $599

GRM 15.26

CAP Rate 4.22%

FINANCINGDown Payment $2,500,000

Loan Amount $3,000,000

Net Operating Income $232.067

Debt Service $185,629*

Cash on Cash Return $46,438

Principle Reduction $47,125

Total Return $93,563

*5 Year Fixed at 4.15%

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

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The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. APR Investment Group has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

W W W. A P R I N V E S T M E N T G R O U P . C O M

390 BARTLETT STREET, SAN FRANCISCO, CALIFORNIA

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Alain Pinel Realtors

Investment Group

2001 Union Street, Suite 200

San Francisco, CA 94123

Phone: (415) 814-6690

Fax: (415) 409-1125

The information contained in this Offering is confidential, furnished solely for the purpose of review by a prospective purchaser of the subject property. The material is based in part upon information supplied and in part upon information obtained by Alain Pinel Realtors Investment Group from sources it deems reason-ably reliable. No warranty or representation, expressed or implied, is made by the owner, Alain Pinel Realtors Investment Group, or any of their respective affiliates, as to the accuracy or completeness of the information contained herein or any other written or oral communication transmitted to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communications. Without limiting the generality of the foregoing, the information shall not be deemed a representation of the state of affairs of the subject property or constitute an indication that there has been no change in the business or affairs of the subject property since the date of preparation of the information. Prospective purchasers should make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the site.

The Offering was prepared by Alain Pinel Realtors Investment Group. It contains select information pertaining to the subject property and does not purport to be all inclusive or to contain all of the information which a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond control and, therefore, are subject to material change or variation. An opportunity to inspect the subject property will be made available to qualified prospective purchasers.

In the Offering certain documents and other materials are described in summary form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents. The Offering is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by Alain Pinel Realtors Investment Group or the Owner. Each prospective purchase is to rely upon its own inves-tigation, evaluation and judgment as to the advisability of purchasing the subject property described herein.

The owner and Alain Pinel Realtors Investment Group expressly reserve the right, at their sole discretion, to re-ject any or all expressions of interest or offer to purchase the subject property and/or to terminate discussions with any party at any time with or without notice. The owner shall have no legal commitment or obligation to any interested party reviewing the Offering or making an offer to purchase the subject property unless a writ-ten agreement for the purchase of the subject property has been fully executed and delivered by the owner and such party and any conditions to the owner’s obligations there under have been satisfied or waived and then only to the extent expressly provided for therein. Alain Pinel Realtors Investment Group is not authorized to make any representations or agreements on behalf of the Owner.

The Offering is the property of Alain Pinel Realtors Investment Group and may be used only by parties ap-proved by Alain Pinel Realtors Investment Group.

CONFIDENTIALITY AND DISCLAIMER