THE GATEWAY APARTMENTS DOWNTOWN

For Sale $8,000,000 Limited Partnership Interest Opportunity 7.199% Average Cash Yield Previous 5 Years at Asking Price www.GallelliRE.com 460 Davis Street | San Francisco, CA 94111 1,254 Units | 4 High-Rise Towers & 58 Townhomes GALLELLI REAL ESTATE THE GATEWAY APARTMENTS OFFERING MEMORANDUM SAN FRANCISCO, CA

INVESTMENT HIGHLIGHTS • Upward trending cash yields.

• Unheard of San Francisco cash yields of ±6.46%, backed by one of the most secure real estate assets anywhere in the United States or the world.

• Average cash yield of 6.24% in previous 4 years (this excludes the one-time distribution in 2013 due to refinance of the asset).

• Estimated cash yield increasing to ±8.96% over the 10 year hold period.

• Reliable and predictable cash flow investment. Since 2014, the distribution to the limited partnership interest being offered has averaged over $500,000 per year and is expected to significantly increase over the hold period.

• Irreplaceable location in the City of San Francisco’s Financial District with direct access via elevated walkways to the ±4.8 million square foot Embarcadero Center, one of the largest mixed-use complexes in the United States and to the landmark office complex with over ±534,000 square feet of office space.

PROPERTY HIGHLIGHTS • 1,254 luxury units spread throughout four high-rise towers and 58 townhomes, all located over office, retail, and garage space. • The Gateway represents 71% of the apartment market in the Financial District. • Competing properties in the Financial District are nearly 30 years older on average. • Includes approximately ±74,210 square feet of office and retail space that includes Safeway, Bank of America, Starbucks, and other restaurants/services. • Includes subterranean parking with an estimated +200 total spaces for guest and tenants. • Bay Club at the Gateway is adjacent to the property on land owned by Gateway, providing 9 fully lit tennis courts, an outdoor aquatic center with two heated pools and fitness facilities. • Well capitalized General Partners with 40+ years of proven experience developing and managing this asset. • Adjacent condominium sales are over $1,340 per square foot. PROPERTY VALUE AND INTEREST Appraised Value $750,000,000 Current Debt $325,000,000 Appraised Value Less Debt $425,000,000 Limited Partnership Interest % For Sale 2.35074% Estimated Value of Limited Partnership Interest $9,990,645 Offering Price of Limited Partner Interest $8,000,000

THE EMBARCADERO

LOCATION HIGHLIGHTS • Irreplaceable location in the City of San Francisco’s Financial District with direct access via elevated walkways to Embarcadero Center, which is one of the largest mixed-use complexes in the United States. The Embarcadero Center contains office, hotel, retail, restaurants, services, and a state-of-the-art, multi-plex cinema.

• Just over a block from the Embarcadero, San Francisco Bay, the Ferry Building and .

• The Ferry Building, located across the street, is widely acclaimed for both the quality and diversity of its fresh farm products, and artisan and prepared foods. It is renowned throughout the country as one of the top farmers markets to visit. On any day, especially Saturdays, some of San Francisco’s best known chefs, and most famous farmers, can be seen at the market. The market provides a forum for people to learn about food and agriculture. Each week nearly 40,000 shoppers visit the farmers market.

• Walk score of 98 – located close to employment, entertainment and retail – all daily errands can be accomplished without the need for a car or public transportation.

• Located at a nexus of transportation options and attractions (all distances approximate). • ±0.2 miles to the Embarcadero BART Station • Less than 5 miles to the Golden Gate Bridge and Highway 101 • ±1 mile to the on-ramp of Interstate 80 and the Bay Bridge • Under 1 mile to Coit Tower • ±1.25 miles to the Famous Pier 39 and Fisherman’s Wharf • ±1.3 miles to AT&T Park, home of the San Francisco Giants

BAY BRIDGE

FERRY BUILDING

EMBARCADERO CENTER

TRANS AMERICA PYRAMID ONE MARITIME PLAZA

THE EMBARCADERO

GARY GALLELLI GARY GALLELLI, SR. GALLELLI REAL ESTATE President Chairman 3005 Douglas Blvd #200 Managing Director Founder Roseville, CA 95661 CA BRE #01099383 CA BRE #00811881 P 916 784 2700 [email protected] [email protected] www.GallelliRE.com