MEDICAL OFFICE FOR SALE: IDEAL FOR OWNER/USER OR INVESTOR
1440 Southgate Ave. | Daly City, CA
Sale Proposal presented by: Mary Alam, MBA Derrick Reedy Senior Vice President Investment Advisor O: (415) 358-2111 O: (415) 529-6468 M: (415) 297-5586 M: (805) 215-7127 F: (415) 358-2111 F: (415) 529-6468 [email protected] [email protected] CA BRE #01927340 CA BRE #02021225
Table of Contents
5 Section 1 Property Information
10 Section 2 Financial Analysis
16 Section 3 Sales Comparables
21 Section 4 Rent Comparables
26 Section 5 Location Information
28 Section 6 Demographics Confidentiality & Disclosure Agreement
The information contained in the following Investment Summary is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from NAI Northern California Investment Real Estate Brokerage and should not be made available to any other person or entity without the written consent of Broker. This Investment Summary has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Broker has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue occupancy of the subject property.
The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable; however, Broker has not verified, and will not verify, any of the information contained herein, nor has Broker conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential purchasers must take appropriate measures to verify all of the information set forth herein.
4 Saint Francis Medical Center
PROPERTY INFORMATION 1 1 PROPERTY INFORMATION Executive Summary
Property Details Location Map Sale Price $4,005,000 Price/SF $425 Cap Rate 3.66% NOI $146,552 Lot Size 0.27 Acres Net Rentable SF 7,857 SF Building Size 9,413 SF Building Class C Year Built 1975 Demographics 0.5 Miles 1 Mile 1.5 Miles Zoning CO - Office Commercial Total Households: 2,954 9,577 19,114
Market San Francisco Total Population: 10,299 31,719 60,924 Sub Market Brisbane / Daly City Average HH Income: $87,480 $87,446 $86,354
6 1 PROPERTY INFORMATION Property Description
Property Overview
This is an approximately +/- 7,857 rentable square foot medical office building on one story with 5 office units. The property is perfect for an owner user such as a medical group, or an investor who can lease it out at market rents and achieve positive cash flow. An owner user can occupy part of the space and lease out the rest, thus enjoying rental income from the property. The building also has 25 free covered parking spaces.
Location Overview
This property is located in a quiet residential neighborhood within San Mateo County, 8 miles from downtown San Francisco. There is easy access to both Interstate 280 and Highway 1. 1/ 4 mile away is Seton Medical Center serving the health care needs of San Francisco and San Mateo County as a 357-bed Verity Health System Hospital. A mini-shopping center anchored by Pacific Supermarket is a block away. Less than a mile away is the Serramonte Shopping Center, a super-regional shopping mall anchored by Macy's, JC Penny, Dick's Sporting Goods and Target.
7 1 PROPERTY INFORMATION Property Details
PROPERTY NAME: Saint Francis Medical Center
PROPERTY ADDRESS: 1440 Southgate Ave Daly City, CA 94015 PROPERTY TYPE: Office
APN: 008-481-450
LOT SIZE: 0.27 Acres
BUILDING CLASS: C
ZONING: CO - Office Commercial
PARKING SPACES: 25
PARKING RATIO: 3.23
YEAR BUILT: 1975
NUMBER OF STORIES: 1
8 1 PROPERTY INFORMATION Site Plan
9 Saint Francis Medical Center
FINANCIAL ANALYSIS 2 2 FINANCIAL ANALYSIS Financial Summary
Investment Overview CURRENT PROFORMA
Price $4,005,000 $4,005,000 Number of Units 5 5 Approximate Square Footage 9,413 9,413 Price per Square Foot $425 $425 CAP Rate 3.66% 4.18%
Operating Data CURRENT PROFORMA
Gross Scheduled Income $199,552 $220,581 Vacancy Cost (0.0%) - $0 - $0 Gross Operating Income $199,552 $220,581 Operating Expenses - $53,000 - $53,000 Net Operating Income $146,552 $167,581 Debt Service - - - -
Pre-Tax Cash Flow $146,552 $167,581
Cash-on-Cash Return % (yr 1) 3.66% 4.18%
Principal Reduction (yr 1) + - + -
Total Return (yr 1) $146,552 $167,581
Return on Investment % 3.66% 4.18%
11 2 FINANCIAL ANALYSIS Rent Roll Proforma Tenant Suite Suite Current Monthly Current Monthly Proforma Monthly Monthly Annual Rent Lease Name Number Size (SF) Rent Rent/SF Rents Rent/SF Increases End
SFOG 1 and 3 4,947 $9,400 $1.90 $11,131 $2.25 CPI M-T-M
LabCorp* 2 1,126 $3,238 $2.88 $3,238 $2.88 5% 12/31/2020
Kunde Institute 4 960 $2,160 $2.25 $2,160 $2.25 3% 12/2022
Homeassist Solutions, Inc 5 824 $1,832 $2.22 $1,832 $2.22 3% 1/2022
Totals/Averages 7,857 $16,630 $2.12 $19,598 $2.48
* Tenant has the option to renew lease for additional five year term.
12 2 FINANCIAL ANALYSIS Income & Expenses
Income Summary CURRENT Per SF PROFORMA Per SF Lease Terms
Suite 1 & 3: S.F. Ophthalmologist Group $112,800 $22.80 $133,569 $27.00 M-T-M Suite 2: LabCorp $38,854 $34.51 $38,854 $34.51 1/1/16 - 12/31/20 Suite 4: Kunde Institute $25,920 $27.00 $25,920 $27.00 12/1/17 - 12/31/22 Suite 5: Homeassist Solutions, Inc. $21,978 $26.67 $22,248 $27.00 1/1/18 - 1/31/22
GROSS ANNUAL INCOME $199,952.08 $25.40 $220,581 $28.07
Expense Summary CURRENT Per SF PROFORMA Per SF
Projected New Taxes $44,000 $4.67 $44,000 $4.67 Insurance $7,000 $0.74 $7,000 $0.74 Misc (Estimated) $2,000 $0.21 $2,000 $0.21
GROSS ANNUAL EXPENSES $53,000 $5.63 $53,000 $5.63
NET OPERATING INCOME $145,338 $15.44 $180,948 $19.22
13 2 FINANCIAL ANALYSIS Property Photos
14 2 FINANCIAL ANALYSIS Nearby Photos
15 Saint Francis Medical Center
SALES COMPARABLES 3 3 SALES COMPARABLES Sales Comparables Comps
SUBJECT PROPERTY
1440 Southgate Ave | Daly City, CA 94015 Sale Price: $4,005,000 Lot Size: 0.27 AC Year Built: 1975 Price PSF: $425.48 Building SF: 9,413 SF Cap: 3.66% NOI: $146,552
1 SERRAMONTE MEDICAL DENTAL BUILDING 1500 Southgate Ave | Daly City, CA 94015
Sale Price: $8,500,000 Lot Size: 1.75 AC 1 Year Built: 1974 Building SF: 32,156 SF Price PSF: $264.34 Occupancy: 68%
This well-located property is a multi-tenant medical office building in Daly City, California. SMC Foundation Wound Care occupies 25% of the building on a long-term lease. Sale is PENDING
2 SERRAMONTE PLAZA 343 Gellert Blvd | Daly City, CA 94015
Sale Price: $3,180,000 Lot Size: 0.29 AC 2 Year Built: 1976 Building SF: 6,873 SF Price PSF: $462.68 CAP: 4% Closed: 04/03/2017 NOI: $127,200
A well-maintained dental and medical building located in the Serramonte Shopping center. New roof was added in 2016
17 3 SALES COMPARABLES Sales Comparables Comps
3 225 SPRUCE AVE 225 Spruce Ave | South San Francisco, CA 94080
Sale Price: $2,075,000 Lot Size: 0.16 AC 3 Year Built: 1960 Building SF: 4,263 SF Price PSF: $486.75 Closed: 01/09/2017
A two story medical office building with 3 tenants
4 160 COUNTRY CLUB DR. 160 Country Club Dr. | South San Francisco, CA 94080
Sale Price: $2,600,000 Lot Size: 0.47 AC 4 Building SF: 7,878 SF Price PSF: $330.03 Closed: 11/10/2016
A class B Office Bldg
18 3 SALES COMPARABLES Sales Comparables Summary
Subject Property Price Bldg. SF Price/SF CAP
Saint Francis Medical Center 1440 Southgate Ave $4,005,000 9,413 SF $425.48 3.66% Daly City, CA 94015
Sale Comps Price Bldg. SF Price/SF CAP Close
Serramonte Medical Dental Building 1 1500 Southgate Ave $8,500,000 32,156 SF $264.34 - On Market Daly City, CA 94015
Serramonte Plaza 2 343 Gellert Blvd $3,180,000 6,873 SF $462.68 4% 04/03/2017 Daly City, CA 94015
3 225 Spruce Ave $2,075,000 4,263 SF $486.75 - 01/09/2017 South San Francisco, CA 94080
4 160 Country Club Dr. $2,600,000 7,878 SF $330.03 - 11/10/2016 South San Francisco, CA 94080
Totals/Averages Price Bldg SF Price/SF CAP $4,088,750 12,793 SF $319.61 4%
19 3 SALES COMPARABLES Sales Comparables Map
SUBJECT PROPERTY 1440 Southgate Ave | Daly City, CA 94015
SERRAMONTE MEDICAL DENTAL BUILDING SERRAMONTE PLAZA 225 Spruce Ave 1500 Southgate Ave 343 Gellert Blvd South San Francisco, CA 94080 Daly City, CA 94015 Daly City, CA 94015 1 2 3
160 Country Club Dr. South San Francisco, CA 94080 4
20 Saint Francis Medical Center
RENT COMPARABLES 4 4 RENT COMPARABLES Rent Comps
SUBJECT PROPERTY
1440 Southgate Ave | Daly City, CA 94015 Lease Rate: N/A Space Size: 0 SF Year Built: 1975 Lot Size: 0.27 AC No. Units: 5
1 1500 SOUTHGATE AVE 1500 Southgate Ave | Daly City, CA 94015
Lease Rate: $33.60 SF/YR Lease Type: Full Service 1 Space Size: 1,171 SF Year Built: 1974 Bldg Size: 32,000 SF Lease Term: 1 months
2 1800 SULLIVAN 1800 Sullivan | Daly City, CA 94015
Lease Rate: $33.00 SF/YR Lease Type: Full Service 2 Space Size: 1,006 SF Bldg Size: 56,745 SF Lease Term: 1 months
22 4 RENT COMPARABLES Rent Comps
3 333 GELLERT 333 Gellert | Daly City, CA 94015
Lease Rate: $29.40 SF/YR Lease Type: MG 3 Space Size: 450 SF Year Built: 1977 Bldg Size: 61,557 SF Lease Term: 3 months
23 4 RENT COMPARABLES Rent Comps Summary Subject Property Price/SF/Year Available SF Bldg SF Occupancy %
Saint Francis Medical Center 1440 Southgate Ave N/A 7,856 SF 9,413 SF 100.0% Daly City, CA 94015
Rent Comps Price/SF/Year Available SF Bldg SF Occupancy %
1500 Southgate Ave 1 Daly City, CA $33.60 1,171 SF 32,000 SF - 94015
1800 Sullivan 2 Daly City, CA $33.00 1,006 SF 56,745 SF - 94015
333 Gellert 3 Daly City, CA $29.40 450 SF 61,557 SF - 94015
Totals/ Averages Price/SF/Year Available SF Bldg SF Occupancy % $32.00 876 SF 50,101 SF 0%
24 4 RENT COMPARABLES Rent Comps Map
SUBJECT PROPERTY 1440 Southgate Ave | Daly City, CA 94015
1500 Southgate Ave 1800 Sullivan 333 Gellert Daly City, CA 94015 Daly City, CA 94015 Daly City, CA 94015 1 2 3
25 Saint Francis Medical Center
LOCATION INFORMATION 5 5 LOCATION INFORMATION Location Maps
27 Saint Francis Medical Center
DEMOGRAPHICS 6 6 DEMOGRAPHICS Demographics Map
Population 0.5 Miles 1 Mile 1.5 Miles
TOTAL POPULATION 10,299 31,719 60,924 MEDIAN AGE 36.7 37.6 37.8 MEDIAN AGE (MALE) 33.7 34.7 35.1 MEDIAN AGE (FEMALE) 39.3 40.3 40.2
Households & Income 0.5 Miles 1 Mile 1.5 Miles
TOTAL HOUSEHOLDS 2,954 9,577 19,114 # OF PERSONS PER HH 3.5 3.3 3.2 AVERAGE HH INCOME $87,480 $87,446 $86,354 AVERAGE HOUSE VALUE $581,389 $572,894 $583,332
Race 0.5 Miles 1 Mile 1.5 Miles
% WHITE 24.1% 27.0% 29.9% % BLACK 2.2% 2.2% 2.2% % ASIAN 64.3% 61.8% 57.9% % HAWAIIAN 3.1% 2.2% 1.6% % INDIAN 0.2% 0.3% 0.4% % OTHER 9.1% 8.7% 9.6%
Ethnicity 0.5 Miles 1 Mile 1.5 Miles
% HISPANIC 19.4% 19.6% 21.3%
29
* Demographic data derived from 2010 US Census 6 DEMOGRAPHICS Agent Profile
Professional Background Mary has worked in real estate and related fields for over ten years. Prior to becoming a broker, she was a VP in a San Francisco Commercial Bank with a focus on real estate finance. With her expert local market knowledge of the San Francisco Bay Area and Northern California and her financial background, Mary brings value to her clients with an acute attention to detail and her ability to sell their properties for the best price possible. In the past few years, she has closed multiple multi-million transactions and has a consistent pipeline of on and off market properties for sale. Mary is an ally to each client, and her persistence and hands-on approach to deal management help clients reach their goal in every transaction.
Mary has called the San Francisco Bay Area home since her teenage years and resides in Marin County. She takes pride in her two kids and her involvement in various fundraising and board roles related to her community and the commercial real estate industry. Mary is multilingual, speaking fluent English, French, and Arabic, and communicates in Spanish and Italian.
Mary Alam, MBA Memberships & Affiliations
Senior Vice President - Retail NNN Member ICSC: International Council of Shopping Centers NAI Northern California Crew SF | Commercial Real Estate Women’s Organization CalBRE #01927340 SF Chamber of Commerce o +1 415 358 2111 c +1 415 297 5586 Beta Gamma Sigma, a Business Honors Society [email protected] Recipient of SF State University Graduate School of Business Distinguished Achievement Award
Education
Real Estate Broker’s License MBA, San Francisco State University, SF BA, Economics, Columbia University, NY
30 Sale Proposal presented by: Mary Alam, MBA Derrick Reedy Senior Vice President - Retail NNN Investment Advisor O: (415) 358-2111 O: (415) 529-6468 M: (415) 297-5586 M: (805) 215-7127 F: (415) 226-0360 F: (415) 226-0360 [email protected] [email protected] CA CalBRE #01927340 CA CalBRE #02021225
NAI Northern California | 101 California Street, San Francisco, CA 94111 | O: (415) 481-0984 nainorcal.com