1034 Folsom Street San Francisco, California

Offering Memorandum

RIC RUSSELL NICK RUSSELL JOHN BARSOCCHINI Executive Managing Director Director Director +1 415 677 0448 +1 415 677 0431 +1 650 401 2111 [email protected] [email protected] [email protected] Lic #00848691 Lic #01937794 Lic #00893147 1034 Folsom Street San Francisco, California

CONFIDENTIALITY & DISCLAIMER

The information contained in this marketing brochure (“Materials”) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving it from Cushman & Wakefield Real Estate (“Agent”). The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property (“Property”) for potential purchase.

The Materials have been prepared to provide unverified summary financial, physical, and market information to prospective buyers to enable them to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Property.

The information contained in the Materials has been obtained by Agent from sources believed to be reliable, however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent makes no representation or warranty regarding the Property, including but not limited to income, expenses, or financial performance (past, present, or future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating substances (PCB’s, asbestos, mold, etc.); Compliance with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant (tenant’s intentions regarding continued occupancy, payment of rent, etc). Any prospective buyer must independently investigate and verify all of the information set forth in the Materials. Any prospective buyer is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating and evaluating the Property.

By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.

All Property showings are by appointment only and must be coordinated through the Agent.

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. 1034 Folsom Street San Francisco, California

TABLE OF CONTENTS

I. Summary

II. Plot Map

III. Photos

IV. Zoning Designation

V. Plans

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. 1034 Folsom Street San Francisco, California

Summary

Cushman & Wakefield is pleased to offer for sale a multifamily development site located at 1034 Folsom Street, San Francisco. The site is 2,000 sq. ft. and is currently a 1575 sq. ft. warehouse building. The property is used for personal storage by the owners. It is anticipated that the site will be redeveloped to a 5-story building with ground floor retail and 4-floors of residential totaling 8 units.

In 2009 the City adopted the Eastern Neighborhoods Plan for the future growth and development of San Francisco’s East Side. The subject property is in an even more defined area, East SoMa. Folsom Street is envisioned as a transit corridor and an enhanced civic boulevard in this area. The property is immediately adjacent to Gene Friend Recreation Center, Victoria Manalo Park, and Carmichael Elementary School. The Recreation Center offers youth programs and facilities that include full indoor gymnasium, activity center, auditorium, and outdoor playground. Victoria Manalo is a 2-acre park featuring a community garden, softball field, batting cages, and playground.

1034 Folsom Street is perfectly located to take advantage of the both the employment and cultural opportunities that define SoMa.

Address: 1034 Folsom Street, San Francisco APN: 3731-018

Land Area 2,000 square foot site (0.05 acres)

• Flood Zone: N - The Subject is not in a flood zone. – Flood Zone Panel 060298 - None dated May 4, 2009.

• Land Zoning District: SoMa Neighborhood Commercial Transit District (SoMa NCT). The NCT Mixed Use District is designed to maintain and facilitate the growth and expansion of small scale light industrial, home and business service, wholesale distribution, arts production and performance/exhibition activities, live/work use, general commercial and neighborhood-serving retail and personal service activities while protecting existing housing and encouraging the development of housing and live/work space at a scale and density compatible with the existing neighborhood. Improvements

• Year Built, Construction Type: 1906, Poured concrete slab with wood frame construction.

• Number of Buildings: 1 per public record, the Subject Property is an industrial warehouse measuring 1,375 square feet.

• Parking Spaces: The Subject Property is not improved with off-street parking.

Price: $1,750,000 $/Sq. Ft.: $875

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. 1034 Folsom Street San Francisco, California

Traffic

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. 1034 Folsom Street San Francisco, California 1 2 3 4

1 2 3 4 Plans

GENERAL NOTES: 24'-8" 24'-8" GENERAL NOTES: 1. A A 1. A A

9 11 2/1 UNIT-2

2 2 6

3 7 91 sf 7 2

B B B B SHEET NOTES: SHEET NOTES: 1 1. 1. 10 9 sf up UP dn 10 63'-6"

PLAN REF: 69'-10" PLAN REF: 5 1 UNITS 1 BEDROOM 2 CAFE/ RETAIL 8 2 CLOSET 5 8 3 TRASH 3 BATHROOM 106 sf 40 sf 4 MAIN LOBBY4 4 WASHER/DRYER STACK 5 RESID.1 PRIVATE LOBBY 5 RESID. PRIVATE LOBBY 2 6 UTILITY RM 2/1 6 KITCHEN 7 STAIRS C 961 sf 7 STAIRS UNIT-1 C C 6,9 8 ELEVATOR C 8 ELEVATOR 25 sf 6 9 ELEV. MACHINE RM 9 GREAT ROOM 2 2 10 MAIL 10 EXTERIOR COURTYARD 11 BALCONY 11 BATHRM. 1 11/27/17 Programming & Feasibility 1 11/27/17 Programming & Feasibility No. Date Issue Notes No. Date Issue Notes 3 S S F E I O N R O A P L D E E S S I O xxxxxxxxxx E N O F N CIVIL R A R G P L E I N

D E T E xxxxxxxxxx E N CIVIL S E R G R I C-53879

E I N G

T EXP. 12/2017

E E

D E S R N R

I A C-53879 A E I S V 2 G L

EXP. 12/2017 T I L N E D A B. A R

D R O T F A N E I A O L E I F C A S V L T I D L N A B. A R T O E I F 4 O F C A L Design Firm 278 sf ALLEN CONSULTING GROUP Design Firm A PROFESSIONAL ARCHITECTURAL ALLEN CONSULTING GROUP AND ENGINEERING FIRM A PROFESSIONAL ARCHITECTURAL 3 1 AND ENGINEERING FIRM 65 sf 9 Consultant

Consultant

Project Title 11 1034 FOLSOM AVE

Project Title SAN FRANCISCO, CA D 1034 FOLSOM AVE D SAN FRANCISCO, CA D D Sheet Title 2nd & 5th FLOOR PLAN A 2nd - 5th FLOOR PLAN Sheet Title A2.2 1/4"=1'-0" GROUND FLOOR PLAN A GROUND FLOOR PLAN Project Manager Project ID 1/4"=1'-0" dba p17002 A2.1 Drawn By Scale Project Manager Project ID 0 10 15 20 25 30 FT dba SHOWN

dba p17002 Reviewed By Sheet No. 0 10 15 20 25 30 FT Drawn By Scale dba dba SHOWN Date A2.2 Reviewed By Sheet No. 11/27/17 of dba CAD File Name Total Sheets Filename Date A2.1 11/27/17 of 1 2 CAD File Name 3 4 Total Sheets The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. Filename 1 2 3 4 1034 Folsom Street San Francisco, California

Proposed Residential Development

Building Living Space Private Deck Stairs/Elevator Common Roof Courtyard A - Residential 5212 188 1391 800 93 B - Retail 961 - 343 - - C - Coverage 0 - - - - Summary 6173 188 1734 800 93

BUILDING A Unit Type 1 4 667 2 BD & 2 BT 2 4 636 2 BD & 2 BT

BUILDING B Retail 961

Ground 1575 2nd Floor 1676 3rd Floor 1583 4th Floor 1583 5th Floor 1583 Summary 8000

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. Mr. Yutaka Handa, Mr. Paul Handa, and Mr. John Handa – Valuation of a Fee Simple Interest in 1034 Folsom Street As of April 1, 2017

Real Estate Tax Data

The Subject Property is located within the taxing jurisdiction of San Francisco County. Real Market Value is assigned to every property in the County by the Assessor. Taxes are payable in two semi- annual installments during December and April for the prior tax fiscal year ending June 30. Re- assessments are completed each year. The following table summarizes the estimated tax data for tax year 2016.

Real Estate Assessment and Taxes Tax ID Land Improvements Assessed Value Tax Rate Taxes 3731-018 $27,656 $10,682 $38,338 1.179% $452.08

According to tax rolls, the total Assessed Value for the Subject Property is $38,338 . Total taxes of $452 were due. The effective tax rate for the 2016 tax years was 1.179%; ($452 ÷ $38,338 = 1.179%). Special assessment charges for SFUSD facility district, SFCCD parcel tax, and SF-Teacher Support are excluded from our analysis.

Our value conclusion is predicated on a hypothetical sale to a new owner; the new owner would pay real estate taxes based on the new transaction price. For our income approach, we have estimated the re-assessment of property taxes that would occur as a result of a material change of ownership of the Subject Property. Once property taxes have been calculated based on our value conclusion, 1034 Folsom Streetthe San annual Francisco, growth Californiaof property tax expense is capped at 2% according to California Proposition 13. A plat map of the Subject parcel is displayed below.

Plot Map PLAT MAP

*Yellow border line is approximate and was included to help visualize site boundaries

22 The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. 1034 Folsom Street San Francisco, California

Photos . Page 1 of 1

74 feet

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

http://apps.spatialstream.com/production/dashboard/8/10/10/CurrentBuild/html/Reporting.html 8/13/2018 1034 Folsom St - Google Maps Page1040 1 Folsomof 1 St - Google Maps Page 1 of 2 1034 Folsom Street San Francisco, California

1034 Folsom St 1040 Folsom St

1034 Folsom St - Google Maps 1040 Folsom St - Google Maps Page 1 of 1 Page 1 of 2

1034 Folsom St 1040 Folsom St

Google, Inc.

Street View - Jan 2018

https://www.google.com/maps/place/1034+Folsom+St,+San+Francisco,+CA+94103/@37.7768856,-122.4054795,160a,35y,313... 8https://www.google.com/maps/p/13/2018 lace/1034+Folsom+St,+San+Francisco,+CA+94103/@37.77783,-122.4064813,3a,89.9y,334.14... 8/13/2018

The information set forth herein has been received by us from sources we believe toImagery be reliable. ©2018 Google, We Mapdo notdata ©2018warrant Google its accuracy 20 ft or completeness. Image capture: Jan 2018 © 2018 Google San Francisco, California

Google, Inc.

Street View - Jan 2018

https://www.google.com/maps/place/1034+Folsom+St,+San+Francisco,+CA+94103/@37.7775961,-122.4061977,63a,35y,313....https://www.google.com/maps/place/1034+Folsom+St,+San+F8/13rancisco,+CA+94103/@37.77783,-122.4064813,3a,89.9y,334.1/2018 4... 8/13/2018 1034 Folsom Street San Francisco, California

Zoning Designation

The SoMa Neighborhood Commercial Transit District (SoMa NCT) is located along the 6th Street and Folsom Street corridors in the South of Market. The district permits moderate-scale buildings and uses, protecting rear yards above the ground story and at residential levels. Active, neighborhood- serving commercial development is required at the ground story, curb cuts are prohibited and ground floor transparency and fenestration adds to the activation of the ground story. While general office and retail uses may locate on the second story or above of new buildings, most commercial uses are prohibited above the second story. In order to protect the balance and variety of retail use, bars and liquor stores are allowed with a conditional use. Continuous retail frontage is promoted by prohibiting drive-up facilities, some automobile uses, and new non-retail commercial uses. Above- ground parking is required to be setback. Active, pedestrian-oriented ground floor uses are required. Housing development in new buildings is encouraged above the ground story. Housing density is not controlled by the size of the lot or by density controls, but by bedroom counts. Given the area's central location and accessibility to the City's transit network, parking for residential and commercial uses is not required.

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. 1034 Folsom Street San Francisco, California

Zoning Designation

East SoMa 1st ST

Generalized Zoning Districts 2nd Street Corridor South Beach ADOPTED - August 2008 Reinforce the role of this corridor as a secondary Update underlying zoning for this redevelopment office reservoir for downtown by permitting small area to acknowledge medium to high density and larger office, as well as residential and PDR. development that has already occurred there.

2nd ST

HAW

THORN

6th Street Corridor Folsom Street Corridor E ST EMBARCADERO WAY EMBARCADERO

Encourage small scale Strengthen Folsom as the key neighborhood-serving 3rd ST neighborhood serving uses here boulevard for SoMa by emphasizing housing here, DELANCEY ST requiring a housing component in any new develop- RINCON ST ment. Permit limited office and retail as long as they are part of a mixed use project with housing.

MISSION ST MARKET ST 4th ST

HARRISON ST

COLIN KE

JESSIE ST L

HOWARD ST ER P LLY JR ST TAB 5th ST BRYANT ST

STANFORD ST 2nd ST 6th ST MINNA ST ST ST SOM

FOL PERRY

TEHAMA ST BRANNAN ST STILLMAN ST ZOE

CLEMENTINA ST 3rd ST ST HARRIET ST RITCH ST

NSEND

RUSS ST SHIPLEY ST TOW

CLARA ST MOSS ST

COLUMBIA SQUARE ST

4th ST SHER MORR LAN 5th ST South Park MAN GTON ST IS ST ST Protect the historic character of this district by encouraging small scale residential and S commercialBERRY STdevelopment. BAS Alleys Mixed Use 3rd and 4thBLUXOME Street ST Corridor 6th ST Maintain the intimate Maintain the mixed character Retain existing SLI zoning in this area, pending 7th ST scale and generally of this area, by encouraging further study of appropriate land use controls for CHINA BASIN residential8th ST character of PDR, small offices and the 4th Street Corridor. these small alleys. residential development. KING ST I

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. 1034 Folsom Street San Francisco, California

Zoning Designation

Embarcadero Plaza Eastern Neighborhoods Justin Herman Plaza

KEARN STOCKTON Streets and Open Space Concept Bay Bridge

Y SY

T SPEAR ST Adopted December 2008 ST CALIFORNIA ST 80

BEALE ST Downtown Transbay Plaza 1ST ST (planned)

Union Square 2ND ST

GEARY BLVD

3RD ST Rincon Yerba Buena Hill Gardens Rincon Hill MARKET ST Brannan Street Wharf 4TH ST Park 5TH ST HOWARD ST (planned) MISSION ST VANNESS AVE East Courtesy of Port of San Francisco LIVING STREETS 6TH SoMa ST FOLSOM ST South Park United HARRISON ST Townsend As shown above, alleyways could be converted to “living streets,” Nations MINNA ST Circle Plaza NATOMA ST Civic South where traffic is calmed and paving and landscaping are designed to Center BRYANT ST Beach Plaza RUSS ST Marina

reflect what is envisioned as the pedestrian primacy of these streets. TOWNSEND ST The Planning Department is currently working with the 8TH Redevelopment Agency and the Department of Public Works on ST Victoria Manolo FELL ST Draves Park three streets in the East SoMa: Minna, Natoma, and Russ Streets. 9TH ST McCovey West Cove Park These streets will set the standard for additional living streets to be SoMa BRANNAN ST KING ST designed throughout all the Plan areas. 11 TH ST 10TH

ST 7TH ST Brady Park BERRY ST (planned) Mission Bay* * Mission Bay street grid under construction. Estimated completion date is 2013. Rendering by Courtney Pash 101 DIVISIONDIVISIOVISIONV SIOOONN STST SST Mariposa St and SShowplace Terry Francois Blvd 14TH ST ALAMEDA ST Square Open Space (Mission Bay) (planned) 15TH ST

15TH ST 16TH ST

Franklin Square 16TH ST 17TH ST Jackson Playground MARIPOSA ST ST INDIANA

18TH ST 18TH ST I.M. Scott 101 ST ILLINOIS 19TH ST School Park Esprit Mission Park 16th and Irwin Public Plaza (planned) Dolores McKinley 20TH ST

Park ST MISSOURI

Square ARKA 3RD ST 3RD

DE HARO ST HARO DE POTRERO AVE POTRERO ST KANSAS Irish Hill BRYAN

HAR

I AVE NESS VAN SOUTH (planned) NSAS ST NSAS 280

MISSION ST MISSION

20TH ST RISON

T ST T

VALENCIA ST VALENCIA

ST GUERRERO ST GUERRERO

DOLORES DOLORES CHURCH ST CHURCH Pier 70 Acquire and develop sites for 22ND ST Muni Tubbs Crane Cove Park open space or neighborhood ST PENNSYLVANIA Park Pedestrian ST Potrero Hill Path parks in the general vicinity. Potrero Recreation (planned) Center Hill 23RD ST Existing Open Space expand Warm Water Cove 23RD ST Warm Water Cove north and south (planned) Planned Open Space 24TH ST 25TH ST Central Civic Boulevard 26TH ST Potrero Waterfront 25TH ST Del Sol Garfield Park Square Rolph Green Connector Streets CESAR CHAVEZ ST 26TH ST Playground Courtesy of SMWM Architechts

Potential Living Streets CESAR CHAVEZ ST expand Islais Creek Islais Creek Access Precita Park Access (planned)

to Bernal Heights Park

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. 1034 Folsom Street San Francisco, California

Traffic

Eastern Neighborhoods

KEARN STOCKTON BART & Muni Station Pedestrian / Bicycle / Traffic Calming Improvements (Embarcadero) Bay Bridge

Y SY

T SPEAR ST Adopted December 2008 ST CALIFORNIA ST 80

BEALE ST Downtown

1ST ST BART & Muni Station SHOWPLACE SQUARE/POTRERO HILL (Montgomery) Improved pedestrian EAST SOMA connections 2ND ST MISSING SIDEWALKS: Missing segments of sidewalks along streets 2ND/3RD/4TH STREETS: Pedestrian GEARY BLVD Rincon (Utah, Henry Adams, Rhode Island, De Haro and Berry Streets) should Areas for improved amenities and safety improvements such as Hill be constructed as new development occurs and funding allows. pedestrian connections

curb bulbs, streetscape plans and landscaping 3RD ST MARKET ST EMBARCADERO should be explored for these major 16TH STREET: Pedestrian connections between Showplace Square Planned bicycle pedestrian and transit corridors. BART & Muni Station (Powell) 4TH ST and Potrero Hill should be established with appropriate treatments such improvements as high-visibility crosswalks, curb bulbouts and countdown signals at 5TH ST VANVAVNESS AVE MISSION ST MID-BLOCK CROSSINGS:ANA Prominent signalized intersections. Proposed Mission Creek NN

GOUGHST Bikeway mid-block crossings should be consideredNEN for LAGUNAST ESSE

WEBSTE 6TH SoMa’s long blocks. A SA East SHOWPLACE SQUARE & MISSION BAY CONNECTIONS: ST AVA VEV Pedestrian connections should be established between the two Proposed Street or Area RST SoMa MISSING SIDEWALKS: Missing segments for Traffic Calming RITC neighborhoods with appropriate treatments such as pedestrian of sidewalks along streets such as Townsend H ST countdown signals, high visibility crosswalks, and/or curb bulbouts. and Ritch should be constructed as new BART & Muni Station GROVE STS (Civic Center) development occursOCTAVIABLVD and funding allows. BICYCLE NETWORK: Planned bicycle improvements on Townsend 8TH ST Street and Potrero Avenue should be implemented contingent on KING ST FELL STST BICYCLE NETWORK: Planned bicycle 9TH environmental clearance of the San Francisco Bicycle Plan. improvements on 2nd, 5th and Townsend ST West TOWNSEND ST Streets should be implemented contingent on HOWARD ST FOLSOM ST SoMa BRANNAN ST Caltrain TRAFFIC CALMING: The SFMTA’s Livable Streets program should 11 Station environmental clearance of the San FranciscoTH implement recommendations from the neighborhood traffic calming ST (4th & King) BicycleMarket Plan. 10TH 7TH ST project in Potrero Hill (2007/8). Octavia ST HARRISON ST BERRY ST BIKEWAY PROJECT: Proposals for the Mission Creek Bikeway

BRYANT ST should be evaluated for feasibility, specifically issues surrounding cost and MISSION CREEK CHANNEL

* Mission Bay street grid under construction. implementation. Mission Estimated completion date is 2013. 101 DIVISION ST Bay* MISSION Showplace 14TH ST ALAMED A ST TRANSIT STATION ACCESS: Care Square CENTRAL WATERFRONT

RHODE ISLAND ST ISLAND RHODE should be taken to improve the pedestrian 15TH ST environment around the 16th and 24th 15TH ST STREET GRID: New rights-of-way and extensions to the street grid

Upper ST 3RD should be explored as part of planning processes for Port and private Streets BART Stations. 16TH ST ST UTAH Market 16TH ST properties to allow greater access to the waterfront and increased BART Station 17TH ST BICYCLE NETWORK: Planned bicycle (16th & Mission) connectivity for pedestrians and bicyclists.

MISSOURI ST MISSOURI

ARKANSAS ST ARKANSAS

DE HARO ST HARO DE improvements on Cesar Chavez and 26th ST KANSAS Streets should be implemented contingent MARIPOSA ST TRANSIT STATION ACCESS: Care should be taken to improve on environmental clearance of the San ST PENNSYLVANIA the pedestrian environment around the 22nd Street Caltrain and Third 18TH STT 18TH ST Street Light Rail stations. Francisco Bicycle Plan. 101 Mission 19TH ST TRAFFIC CALMING: Traffic calming 20TH ST BICYCLE NETWORK: Planned bicycle improvements on Indiana and

ILLINOIS ST ILLINOIS

INDIANA ST INDIANA

POTRERO AVE POTRERO Illinois Streets Street and Potrero Avenue should be implemented opportunities should be explored for BRYAN HAR

FOL SOUTH VAN NESS AVE NESS VAN SOUTH SOUT 280

MISSION ST MISSION OUT

UTH VAN UTH T RISON contingent on environmental clearance of the San Francisco Bicycle Plan. streets like Guerrero Street and South Van 20TH ST SOM

T ST T

ST VALENCIA ST VALENCIA AN NESS AN

ST Ness Avenue. ST GUERRERO GUER G

DOLORES DOLORES

CHURCH ST CHURCH SANCHEZ ST SANCHEZ 22ND ST ERRERO ERR NESS BAY TRAIL & BLUE-GREENWAY: Opportunities for Bay Trail

SS AVE SS Caltrain Station

RO S RO (22nd) ST O signage and waterfront trail alignment should be explored. The proposal

VE CESAR CHAVEZ: Pedestrian ST E Potrero improvements should be explored as part Hill for the Blue-Greenway should be further examined, specifically issues of an upcoming planning process for the 23RD ST surrounding feasibility and implementation. redesign of Cesar Chavez Street led by the 23RD STT Planning Department. BART Station (24th & Mission) 24TH ST BIKEWAY PROJECT: The Mission 25TH ST Central Creek Bikeway proposal should be Waterfront 26TH ST evaluated for feasibility, specifically issues 25TH STT

surrounding cost and implementation. CESAR CHAVEZ ST 26TH ST CESAR CHAVEZEZZ ST

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.