Offering Memorandum - LoopNet€¦ · Separately metered (400 amp service) In units and at the service in tradesman’s area. Separately metered Local fire alarm, sprinkler system

370 Ellis Street I San Francisco, CA

Offering Memorandum

OFFERING MEMORANDUM | 370 ELLIS STREET P.2 COLLIERS INTERNATIONAL

Table of ContentsOFFERING SUMMARY 3

FINANCIAL OVERVIEW 4-5

PROPERTY PHOTOGRAPHS 6-7

SALES COMPARABLES 8-9

LOCAL & REGIONAL MAP 10

AERIAL OF SUBJECT PROPERTY 11

- SHOWINGS BY APPOINTMENT

www.theDLTeam.com

BRAD LAGOMARSINO1 415 288 [email protected] Lic. 01058500

JAMES DEVINCENTI1 415 288 [email protected] Lic. 00951916

For More Information Contact:Colliers International


Colliers International is pleased to present 370 Ellis Street, San Francisco, CA for purchase. This apartment building islocated in the Tenderloin District. The area is becoming a popular destination for its vibrant nightlife, live music, art galleries,consignment stores, and boutiques. Abundant transit lines pass through the neighborhood, allowing residents to get anywhere inthe city due to it’s core location. The asset is also located near the rapidly changing and improving Mid-Market area of San Fran-cisco and is within walking distance to High Tech companies such as Twitter, Zinga, Yelp, Square, and many others, as well as, Union Square and the Downtown Financial District.

The building is comprised of twenty seven (27) Studio/1 bath units (7 units are currently vacant and poised to take advantage of unit turnover and keep pace with market rents). This property offers an investor immediate rental upside and substantial appreciation.

Property Information: Address: District:

Property:APN:

Building Square Feet:Lot Size:

Constructed: Zoning:

Building Systems:Foundation:

Structure: Façade:

Rear of Building: Roof Composition & Age:

Electrical Service: Circuit Breakers

Gas Service: Fire Protection System:

Fire Escapes:Heat Source:

Hot Water:

Plumbing:

Common Areas:Door Entry System:

Front Landing/Lobby: Landing Areas:

Garbage:

Laundry:Storage: Elevator:

370 Ellis StreetTenderloinTwenty Seven (27) unit apartment building0324-00911,800 Sq Ft (per tax records)3,4411915RC4

Concrete FoundationMasonry Stucco exteriorStucco Rolled on compositeSeparately metered (400 amp service)In units and at the service in tradesman’s areaSeparately metered Local fire alarm, sprinkler system and hard wired smoke detectors in common areasFront & rear of buildingBaseboard electric heatAmerican standard hot water heater-100 gallons (1/3/2018)Mix of copper and galvanized

DKS key-pad entry systemCarpet floorsCarpet floorsChute (repositories located between lobby and landing areaNoneNoneYes

Offering Summary

Building Composition:Unit Mix:

Kitchens:

Bathrooms:

Bedrooms:

Note:

Twenty Seven (27) Studio/1 bath units

Formica/Corian countersGas ranges/ovensStainless steel sinksOver-under refrigerators Wood cabinetryGeometric sheet vinyl/gray Upgraded lighting

Geometric sheet vinyl flooringCabinet/stand alone porcelain sinksStorage mirrorTub/shower combinations with porcelain tile surrounds

Large closetsGray vinyl flooringLarge windowsAluminum blinds

Seven (7) of the units are currently vacant


LOCATION: 370 ELLIS STREET, SAN FRANCISCO, CA 94102

Financial Overview

Sale Price $3,996,000Down Payment $908,500

Number of Units 27

Price/Unit $148,000

Gross Square Feet 11,800

Price/Square Foot $339

CAP Rate-Current 5.92%

CAP Rate-Pro Forma 7.64%

GRM-Current 9.21

GRM-Pro Forma 7.83

Year Built 1915Lot Size 3,441

ANNUAL GROSS INCOMEFINANCIAL SUMMARY

Loan Amount $3,087,500

Loan Type Proposed New

Interest Rate 4.00%

DCR 1.91

Program 5 Year Interest OnlyLoan to Value 77%

Unit Type # of Units Current Rents Monthly Income Market Rents Monthly Income

Studio/1 Bath 27 $456-$1,575 $36,153 $1,575 $42,525

Total 27 Total Monthly Income for Units $36,153 $42,525

SCHEDULED INCOME

Current Market

Gross Potential Income $433,842 $510,300

Vacancy (5%) $21,692 $25,515

AGI $412,149 $484,785

Expenses $175,724 $179,547

NOI $236,425 $305,238

Expense Categories Current Exp/Unit % of Exp Market Exp/Unit % of Exp

Property Taxes $47,121 $1,745 27% $47,121 $1,745 26%

Special Tax Assessment $4,941 $183 3% $4,941 $183 3%

Insurance $4,074 $151 2% $4,074 $151 2%

Water $19,756 $732 11% $19,756 $732 11%

Scavenger $14,040 $520 8% $14,040 $520 8%

PG&E $2,572 $95 1% $2,572 $95 1%

Offsite Manager $21,692 $803 12% $25,515 $945 14%

Onsite Manager $9,000 $333 5% $9,000 $333 5%

Fire Safety $1,178 $44 1% $1,178 $44 1%

Locksmith & Security $10,749 $398 6% $10,749 $398 6%

Telephone $768 $28 0% $768 $28 0%

Legal $3,208 $119 2% $3,208 $119 2%

Cleaning $1,787 $66 1% $1,787 $66 1%

Contract Labor $1,158 $43 1% $1,158 $43 1%

Supplies $510 $19 0% $510 $19 0%

Elevator $3,000 $111 2% $3,000 $111 2%

Janitorial $5,724 $212 3% $5,724 $212 3%

Repairs & Maintenance $14,535 $538 8% $14,535 $538 8%

Hauling $6,090 $226 3% $6,090 $226 3%

Pest Control $3,822 $142 2% $3,822 $142 2%

Total Operating Expenses $175,724 $6,508 100% $179,547 $6,650 100%

Current Market

Less Debt Service $123,500 $123,500

Cash Flow $112,925 $181,738

Cash on Cash Return 12.43% 20.00%

Expenses as % of Gross 41% 35%

Expenses per Unit $6,508 $6,650

FINANCING

ANNUAL OPERATING EXPENSES

JP Morgan Chase: Quote: August 16, 2017 (Loan information is time sensitive & subject to change.Loan quote is contingent on 85% of the units being rented).

CASH FLOW AFTER DEBT SERVICE


RENT ROLL

UNITSStudios - 27

Financial Overview

NOTESMarket rents based on highest recent rents

*Unit 3, 4, 9 & 25 - low income subsidized rents

Unit No. Unit Type Current Rents Market Rent Move In Date Notes

01 Studio/Bath $1,575.00 $1,575.00 Vacant02 Studio/Bath $1,461.50 $1,575.00 9/12/2017

*03 Studio/Bath $1,150.00 $1,575.00 2/1/2009 Section 8


05 Studio/Bath $1,350.00 $1,575.00 9/15/2017

06 Studio/Bath $1,350.00 $1,575.00 1/17/2014

07 Studio/Bath $1,461.50 $1,575.00 9/10/2017

08 Studio/Bath $1,575.00 $1,575.00 1/1/2016

*09 Studio/Bath $995.00 $1,575.00 8/8/2007 Section 8

10 Studio/Bath $1,361.50 $1,575.00 6/15/2017

11 Studio/Bath $1,453.00 $1,575.00 3/31/2014

12 Studio/Bath $1,575.00 $1,575.00 Vacant14 Studio/Bath $789.00 $1,575.00 11/1/2002

15 Studio/Bath $455.80 $1,575.00 9/1/1985

16 Studio/Bath $1,575.00 $1,575.00 Vacant17 Studio/Bath $1,575.00 $1,575.00 Vacant18 Studio/Bath $1,575.00 $1,575.00 2/1/2017



23 Studio/Bath $1,450.00 $1,575.00 10/7/2016

24 Studio/Bath $1,335.00 $1,575.00 6/28/2013


26 Studio/Bath $1,450.00 $1,575.00 9/15/2017

27 Studio/Bath $1,575.00 $1,575.00 Vacant

28 Studio/Bath $501.14 $1,575.00 5/15/1997

Rental Income $36,507.44 $42,525.00

Total Monthly Income $36,153.46 $42,525.00Total Annual Income $433,841.52 $510,300.00 Upside 18%


Property Photographs


Property Photographs


Tech Companies

STRATEGIC LOCATION TO SAN FRANCISCO’S NEW TECHNOLOGY ECONOMY AT THE HEART OF THE MILLENNIAL CULTURELeaders in the technology economy paved the way for the urban renaissance of San Francisco’s Mid-Market dis-trict. Driven by a new wave of entrepreneurial spirit and an incredible appetite for large blocks of creative office space, Twitter, Uber, Square, and others are remaking the Mid-Market district by combining the tech campus tradition with the irreplaceable live energy of a true gateway city. Consequently, the submarket has experienced strong rental demand from the growing labor base of young technology workers, artists, and other single pro-fessionals who desire to live within walking distance to their offices.

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Public Transportation

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WITH IMMEDIATE ACCESS TO ONE OF THE NATION’S BEST PUBLIC TRANSIT SYSTEMSThe area around 370 Ellis Street offers an extensive transportation network which ensures superior regional access throughout San Francisco and the surrounding Bay Area. Atlantic Cities’ “Access Across America, Transit 2014” ranked San Francisco second only to Manhattan 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. 370 Ellis Street is within walking distance of a variety of public transit systems, including the Civic Center/UN Plaza Bay Area Rapid Transit System (BART) station, the underground MUNI, and street-level rail—all in addition to a va-riety 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.

O’Farrell @ Van Ness AvenueMcAllister @ Hyde Street MCAllister @ Polk StreetGolden Gate Ave @ Polk Street

Bart/Muni Metro Civic CenterBart/Muni Metro Powell Street

BART & MUNI METRO

Civic Center @ Golden Gate AvenueMarket @ Civic CenterMarket @ 7th StreetMarket @ 6th Street

Market @ Hyde Street

BUS & MUNI LIGHT RAIL

Bart/Muni Metro Montgomery StreetBart/Muni Metro Embarcadero Station

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Golden Gate

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Grove

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Page

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Powell

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Battery

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7th

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PacificBellPark



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TransbayTransitTerminal

JustinHermanPlaza

FerryBuilding

ChinaBasin

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OperaHouse

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St Mary ’sCathedral

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101

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Regional Map

Location Map

370 Ellis St

370 Ellis St


CONFIDENTIALITY & DISCLAIMER STATEMENTThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 370 Ellis Street San Francisco, CA 94102. 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 370 Ellis 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 370 Ellis 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 370 Ellis 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 Prop-erty 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 Map

370 Ellis St

BRAD LAGOMARSINO1 415 288 [email protected] Lic. 01058500

101 Second Street, 11th Floor San Francisco, CA 94105 1 415 788 3100 www.colliers.com

JAMES DEVINCENTI1 415 288 [email protected] Lic. 00951916

www.theDLTeam.com

Documents

Offering Memorandum - LoopNet€¦ · Separately metered (400 amp service) In units and at the service in tradesman’s area. Separately metered Local fire alarm, sprinkler system