Premier Pacific Heights District Mixed-Use Property

CBRE Capital Markets, as exclusive advisor, is pleased to present the opportunity to acquire 2208 Fillmore Street

(the “Property”), a premier, 7,375 square foot high-street retail and residential jewel box strategically located in

San Francisco’s renowned Pacific Heights neighborhood. Positioned along the Fillmore Street Corridor – one of

the most desirable retail destinations in the City – the Property benefits from its location within a neighborhood

which boasts the highest per capita income in all of San Francisco.

2208 Fillmore Street’s unique location amid high-end retailers, world-class restaurants, trendy lounges & cafes,

and direct access to public transit, ensures consistently high foot traffic to the Property. Consisting of three

separate retail frontages across two floors including two residential units located on the upper level, 2208

Fillmore Street boasts expansive ceiling heights, plentiful natural light, and a classic San Francisco façade that

blends seamlessly into the fabric of the neighborhood. The ground floor retail consists of three separate tenant

spaces which are leased to Eileen Fisher, Illesteva, and La Mediterranee – all of which have been become staples

of the neighborhood.

With a weighted average retail lease term of 6.35 years, the Property provides investors a durable contractual

income stream. Although rent controlled, the residential units provide a mark-to-market opportunity during the

new owner’s hold period. 2208 Fillmore Street’s unique location in the heart of the Pacific Heights District, along

with its stable in-place cash flow, makes the purchase of the Property a highly attractive investment opportunity.

The Offering

FI L L MO R E ST

HIGH-STREET RETAIL AND RESIDENTIAL JEWEL BOX: 7,375 square foot property located in the world-

renowned Pacific Heights District along one of the

most desirable and top performing retail corridors in

San Francisco.

FULLY LEASED WITH IN-PLACE LEASE TERM: Fully leased asset to a diverse tenant base offering

stable cash-flow and downside protection.

HIGH-PROFILE RETAIL TENANCY: Eileen Fisher, La Mediterranee, and Illesteva are

all staples along the Fillmore Corridor and form

a cohesive destination of shopping and dining

experience

OUTSTANDING RESIDENTIAL FUNDAMENTALS: Investors are granted the ability to own two

premier residential units the nation’s top performing

residential market.

PACIFIC HEIGHTSCOW HOLLOW

PRESIDIOMARINA

FILLMORE

ADDRESS 2208 Fillmore Street, San Francisco

RENTABLE AREA 7,375 Square Feet

% LEASED 100%

STORIES Two Stories, Retail & Condo

SITE AREA 4,522 Square Feet

ZONING NCD (Neighborhood Commercial District)

SUBMARKET West of Van Ness

C A L I F O R NI A ST

Property Description

COMMANDING RETAIL PRESENCE: Consisting of approximately 4,500 square feet of premium retail space

along Fillmore Street, 2208 Fillmore Street boasts an outstanding retail

presence along one of San Francisco’s most desirable retail corridors.

PREMIER ANCHOR RETAILER: Eileen Fisher has been located at the Property since 2005 and has been a

staple to Fillmore Street’s retail corridor ever since. With an expiration date

of January 2026, Eileen Fisher offers investors captive tenancy allowing for

limited capital exposure. The company sells items in more than 60 stores

in 15 states for an estimated revenue of $350 million. La Mediterranee

is an award-winning Mediterranean restaurant that has been located

at the Property since 2008 and has been consistently voted “Best Middle

Eastern” and “Best Mediterranean” in the San Francisco Bay Area. Illesteva

is an independently owned eyewear brand with roots in Downtown New

York with production in Italy and France and is committed to the Property

through 2024.

RESIDENTIAL SECURITY AND UPSIDE: The two modernized classic residential units on the upper level of the

property offer an incredibly secure cash flow. The units are both below

market rate which provides upside upon rollover.

Irreplaceable Retail/Residential Asset

FULLY LEASED WITH IN-PLACE LEASE TERM OFFERING DOWNSIDE PROTECTION: Fully leased with a Weighted Average Lease Term (WALT) of 5.62 years, 2208

Fillmore Street offers investors a strong and immediate cash flow while also offering

downside protection with a variety of tenants and no retail rollover until 2024.

LIMITED CAPITAL OUTLAY: With no rollover until 2022 and fully leased to a stable tenant roster, investors

are able to benefit from limited out of pocket capital expenditures. Further, due to

the competitive nature of the Fillmore Street corridor, tenants are offered limited

relocation options making existing space highly desirable.

RESIDENTIAL CASH FLOW OFFERS DIVERSITY: Two 1,427 square foot residential units are located above the ground floor retail

with a separate entrance located at the rear of the property. The residential

portion of the property allows investors to hedge their investment with the most

desirable products in one of the tightest residential markets in the world.

Strong Protected Cash Flow

STRONG RETAIL CORRIDOR: Fillmore Street is one of the most important shopping districts on the West Coast and very high on the

expansion lists of top main-stay brands in addition to the elite emerging crowd. The wait for many of

these tenants to break in can be long, and limited vacancy often pushes the market toward key money.

For many brands, this is their only location in the market. New entrants to the street include the Frame

Denim flagship, Rag & Bone, Frye Boots, Space.NK, Aesop, Reformation, Freda Salvador, Paige Denim,

Equipment, Saje, James Perse, Paper Source and so many more. Digitally native brands, which spend

significant marketing dollars, do drive traffic and have been flocking to Fillmore as well. These tenants

include Minted, Ministry of Supply, Modern Citizen, the first Rothy’s flagship and ModCloth.

ADJACENT TO ONE OF THE NATION’S TOP HOUSING NEIGHBORHOODS: Pacific Heights is home to some of the most expensive houses in the world, specifically along Broadway

between Broderick and Lyon which has been dubbed “Billionaires Row.” The residential market is on the

rise, with listing prices increasing 16.6 percent year-over-year. The average listing price was $2.7 million

in 2017 and has reached $3.1 million in 2018.

PUBLIC TRANSIT & PARKING OPTIONS: Well-served by public transit, 2208 Fillmore Street is just a few steps away several MUNI stops offering

riders access to all of San Francisco. Less than a block away from the Property is 2485 Clay Street, a 400

stall parking garage, which serves as a starting point for many visitors to Fillmore Street and ensures

consistent foot traffic to the property.

Unparalleled Fillmore Street Location

STRONGEST OFFICE MARKET IN THE UNITED STATES: San Francisco continues to be the top performing tenant and investment market in the United

States. Average Class A office asking rates now hover at $86.00 per square foot while vacancy

remains steady at 3.2 percent. With over 5.0 million square feet of active tenant demand, the

outlook is positive for sustained growth.

TOP RESIDENTIAL MARKET IN THE UNITED STATES: Year-end data for 2018 shows another year-over-year appreciation in apartment prices, with

San Francisco now solidified as the country’s most expensive place to rent. As of November

the median rental rate for a one-bedroom apartment is $3,560/month which is up five

percent year-over-year. Located directly behind 2208 Fillmore is The Pacific, a 76-unit condo

project that opened in 2016. The project has been one of the most lucrative condo buildings

in San Francisco history with $300 million in sales and units selling as high as $4,000 per

square foot.

TIGHT PACIFIC HEIGHTS RETAIL MARKET: As of Q4 2018, vacancy in Pacific Heights stands at just 1.7 percent. In the last 5 years,

vacancy has remained sub 3 percent, reflective of high demand for prime retail space. Rental

rates for premier ground-floor retail space located on Fillmore Street and in some of the blocks

surrounding it can range between $100 to $165 per square foot.

MOLLY STONE’S

THE GROVEKEIHL’S

TROYA

RALPH LAUREN

RAG & BONE

ATHLETICA

WOODHOUSE FISH

FRYE COMPANY

MAC COSMETICS

CHOUQUET’S

POSH SALON

BLUE BOTTLE

FI L L MO R E ST

S AC R A M E NT O STC A L I F O R NI A ST RESTAURANTS

RETAIL

Excellent Market Fundamentals

FREDA SALVADOR

LA MEDITERRANEE

FRESCA FILLMORE

L’OCCITANE

CURBSIDE

K Y L E K O VA C Executive Vice Pres ident 415 .407 .7122 kyle .kovac@cbre .com CA License #01731229

M I C H A E L T A Q U I N O Executive Vice Pres ident 415 .378 .0460 mike . taquino@cbre .com CA License #01431337

Investment Advisors

Debt & Equity Advisors

M I K E WA L K E R Senior Vice Pres ident 415 .772 .0278 michael . l .walker@cbre .com CA License #01843658

B R A D Z A M PA Executive Vice Pres ident 415 .772 .0225 brad.zampa@cbre .com CA License #011743866

G I A N C A R L O S A N G I A C O M O Senior Associate 415 .772 .0347 giancarlo . sangiacomo@cbre .com CA License #00409987

L A U R A S A G U E S Senior Vice Pres ident 415 .772 .0122 laura . sagues@cbre .com CA License #01888298

Retail Investment Advisor

© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. PM_STUDIO. JAN.2019