Daly City, CA
Total Page:16
File Type:pdf, Size:1020Kb
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.