1623-1633 California Street Offering Memorandum Multifamily Investment Opportunity | Nob Hill - San Francisco, CA 1623-1633 California Street Offering Memorandum - pg. 1 Table of Contents Offering summary ................................3-4 Financial overview ...............................5-6 Property photographs ..........................7-12 Amenities map & location ....................13 Public transportation ............................14 Aerial of subject property ....................15 Showing Schedule Showings by Appointment Please Call Listing Agent Call for Offers To be determined. Colliers International 101 2nd Street, 11th Floor San Francisco, CA 94105 Brad Lagomarsino | lic 01058500 +1 415 288 7847 | [email protected] James Devincenti | lic 00951916 +1 415 288 7848 | [email protected] www.theDLTeam.com Offering Summary - Overview 1623-1633 California Street San Francisco is a 22-unit mixed-use apartment building located between Polk Street and Van Ness Avenue in the Nob Hill District of San Francisco. The unit mix consists of 9-studios, 10-1 bedrooms and 3-commercial units. The building is close to Polk Street and walking distance to the central business district. This is a tremendous opportunity for an investor to purchase a well-maintained asset in the heart of the City with tremendous income upside potential. Sights & Culture: Cable Car Museum, Grace Cathedral Episcopal Church, Huntington Park, Lumiere Theatre Public Transportation: California Cable Car Powell/Hyde Cable Car Powell/Mason Cable Car 1 California 2 Clement 3 Jackson 8 Bayshore 8AX Bayshore A Express 8BX Bayshore B Express 10 Townsend 12 Folsom/Pacific 19 Polk 27 Bryant 30 Stockton 38 Geary 38R Geary Rapid 38BX Geary B Express 39 Coit 41 Union 45 Union/Stockton 47 Van Ness 49 Van Ness/Mission 76X Marin Headlands Express 90 San Bruno Owl 91 3rd Street/19th Avenue Owl Schools: Cathedral School for Boys, Spring Valley Elementary, Redding Elementary Hospitals: St Francis Memorial Hospital, Cal Pacific Medical Center Grocery Stores: Whole Foods, Trader Joe’s, Sutter Fine Foods , You Say Tomato Restaurants: Big 4 Restaurant, Café Bean, Acquerello, Gallery Café, Grubstake, Keiko at Nob Hill, Miller’s East Coast Delicatessen, Nob Hill Café, Olea, Swan Oyster Depot, House of Prime Rib, Venticello, Harris’, House of Prime Rib, Lord Stanley Nightlife: Bigfoot Lodge, Café Royal, Hyde Out, Tonga Room and Hurricane Bar, Top of the Mark and all that Polk Street has to offer. 1623-1633 California Street Offering Memorandum - pg. 3 Offering Summary - Property Details Property Information Building Composition Address: 1623-1633 California Street, San Francisco Unit Mix: 9-studios, 10-1 bedrooms, 3-commercial (Cross streets: Polk St/ Van Ness Ave) units District: Nob Hill Property Type: Mixed-use apartment building Kitchens: Gas ranges with oven APN: 0646-015 Over-under refrigerator Building Square Feet: 15,052 square feet Wood cabinetry (ample cabinets /counters/ Lot Size: 6,873 square feet (73% improved x 3 floors) drawers plus storage) Constructed: 1923 Linoleum flooring Zoning: Polk 9-2 room, Studio apartments – 10-3 room, 1-bedroom apartments Building Systems Bathrooms: Hexagon tile floors and surrounds Foundation: Concrete Wall hung and cabinet sinks Structure: Wood-frame Storage mirror Soft Story: CFC issued Tub shower combinations Façade: Stucco, asbestos shingle on south side of Window ventilation building Windows: Wood-frame Bedrooms: Large room areas Rear of Building: Wood siding Hardwood floors / carpeting Roof Composition: Tar & gravel Ample natural light Elevator: None Over-sized closets (2 walk-in, 1-linen) Electrical Service: Separately metered (tradesman alley) Gas Service: Separately metered (tradesman alley) Retail: 1621 California, Mini Nails & Waxing; 1623 Fire Protection System: Faraday local fire alarm system / in-unit California, Sunset Pearls Gallery; 1631 detectors California, Abi’s Florist Fire Escapes: North, east, west, south side of building Heat Source: Steam heat system (modernized) Notes: This is a Trustee sale. The Trustee has no Hot Water: Laars/Bradford & White-119-gallon insulated specific knowledge of the asset and makes storage tank no warranties or representations regarding the accuracy of the information provided in Plumbing: Mix of copper & galvanized this offering memorandum Common Area Lights: Timing system The property is compliant with the Circuit Breakers: Circuit breakers at main service (fuses) Department of Building Inspection Soft Story ordinance. Surveillance 2-camera monitoring system The Buyer agrees to conduct all their own inspections of this property at their sole cost Common Areas and expense. Door Entry System: DKS Doorking telephone entry system This asset will be delivered in “as-is” Mail Boxes: In lobby condition with no credits or off-sets from the Front Landing/Lobby: Marble stairs, decorative tile entry purchase price. Lobby Flooring: Carpeted Landing Areas/Hallways: Carpeted Garbage: Chute System, cans located in in tradesman area Yard: Large elevated yard on the south side of building 1623-1633 California Street Offering Memorandum - pg. 4 Financial Overview 1623-1633 California Street, San Francisco, CA 94109 Financial Summary Gross Annual Income Current Proforma Sale Price $7,100,000 Gross Income $484,539 $656,448 Down Payment $3,600,000 Vacancy (3.5%) $16,959 $22,976 Number of Units 22 AGI $467,580 $633,472 Price/Unit $322,727 Expenses $208,205 $215,081 Gross Square Feet 15,052 NOI $259,375 $418,391 Price/Square Foot $472 CAP Rate - Current 3.65% Annual Operating Expenses Current Proforma CAP Rate - Pro Forma 5.89% Property Taxes $83,787 $83,787 GRM - Current 14.65 *Special Assessment Tax $2,287 $2,287 GRM - Pro Forma 10.82 *Insurance $13,868 $13,868 Year Built 1923 *Off Site Management $19,382 $26,258 Lot Size 6,873 **On Site Manager Salary $6,000 $6,000 PG&E $26,071 $26,071 Water/Sewer $16,930 $16,930 Refuse Removal $7,797 $7,797 Telephone $2,495 $2,495 *Janitorial, cleaning, Tree Trimming $7,200 $7,200 Fire Safety Equipment Maintenance $2,268 $2,268 Pest Control/Spraying $1,811 $1,811 Supplies $791 $791 Taxes, Licenses & Permits $1,018 $1,018 *Repairs, Maintenance & Reserves $16,500 $16,500 Total Expenses $208,205 $215,081 *Expenses are estimated ** Unit 112 was hired by Hanford Freund as the on-site manager of the building (not initially a tenant). His current package consists of free monthly rent plus $300 per month. A new owner will be able to negotiate more favorable terms and conditions for this service (our package suggests $500 per month for monthly service and market rent for the apartment - $2,750 per month) Financing Cash Flow After Debt Service Current Proforma Loan Amount $3,500,000 Less Debt Service $113,750 $113,750 Loan Type Proposed New Cash Flow $145,625 $304,641 Interest Rate 3.25% Cash on Cash Return 4.05% 8.46% Program 3 year Interest Only Expenses as % of Gross 43% 33% Loan to Value 49% Expenses per Unit $9,464 $9,776 Quote: 7/16/2020 First Republic Bank (Borrower to have banking relations with First Republic Bank) - Loan information is time sensitive and subject to change. 1623-1633 California Street Offering Memorandum - pg. 5 Financial Overview (cont.) 1623-1633 California Street, San Francisco, CA 94109 Rent Roll Unit No. Unit Type Rents Market Rents Move In Date Note 106 Studio $2,425.00 2,425.00 Vacant 108 Studio $923.33 2,425.00 11/15/2003 110 Studio $1,079.47 2,425.00 2/15/2007 112 (Mgr) One bedroom $2,750.00 2,750.00 5/15/2010 114 One Bedroom $2,710.28 2,750.00 5/5/2017 202 One Bedroom $1,059.78 2,750.00 12/1/1995 204 One bedroom $2,750.00 2,750.00 Vacant 206 Studio $1,989.71 2,425.00 2/4/2017 208 Studio $1,893.78 2,425.00 10/26/2013 210 Studio $1,958.38 2,425.00 3/23/2018 212 One Bedroom $1,530.92 2,750.00 2/11/2004 214 One Bedroom $2,750.00 2,750.00 Vacating 8/13/2020 302 One Bedroom $1,727.14 2,750.00 2/15/2007 304 One Bedroom $1,164.63 2,750.00 12/1/1995 306 Studio $1,107.01 2,425.00 12/1/2006 308 Studio $849.20 2,425.00 12/1/1995 310 Studio $1,995.00 2,425.00 3/1/2017 312 One Bedroom $1,685.64 2,750.00 7/10/2009 314 One Bedroom $2,650.00 2,750.00 12/1/1995 1621 Commercial $2,634.00 2,634.00 6/1/2002 1623 Commercial $1,150.00 1,150.00 4/1/2008 1631 Commercial $1,595.00 1,595.00 7/14/2014 Rental Total $40,378.27 $54,704.00 Monthly Total $40,378 $54,704 Annual Total $484,539.24 $656,448 Upside 35% Units Notes Studio - 9 Projected rents based on Rentometer - 0.20 Mile radius One Bedroom - 10 One bedrooms are 3 room units Commercial - 3 Manager's unit #112 projected at market 1623-1633 California Street Offering Memorandum - pg. 6 1623-1633 California Street Offering Memorandum - pg. 7 1623-1633 California Street Offering Memorandum - pg. 8 1623-1633 California Street Offering Memorandum - pg. 9 1623-1633 California Street Offering Memorandum - pg. 10 1623-1633 California Street Offering Memorandum - pg. 11 1623-1633 California Street Offering Memorandum - pg. 12 Amenities 1623-1633 California Street, San Francisco, CA 94109 19 16 Subject Property 15 1623 California St 14 13 12 17 11 2 1 10 3 4 5 6 California Pacific 9 Medical 21 Center 24 23 7 8 + 20 22 18 St Francis Subject Property + Memorial Hospital 1623 California St X Restaurants & Bars X Convenience & Grocery Stores X Banks & ATM’s Neighborhood Amenities 1 Harris 9 Common Sage 17 Real Food Company 2 New Country Sky 10 Bell Tower 18 Whole Foods 3 House of Prime Rib 11 Escape From New York Pizza 19 Searchlight Market 4 Thai Spice Restaurant 12 AhiPoki 20 Trader Joes 5 Hahn’s Hibachi 13 Bullitt 21 Chase Bank 6 Co Nam 14 Blue Barn Polk Street 22 Wells Fargo 7 Swan Oyster Depot 15 Helmand Palace 23 Bank of America 8 Cordon Bleu 16 La Folie 24 First Republic Bank 1623-1633 California Street Offering Memorandum - pg.