544 bryant street - urban group real estate · 2019-06-01 · 544 bryant street, san francisco, ca....

BRE 01885834

OFFERING MEMORANDUM

544 BRYANT STREETSan Francisco, CA 94107

SOUTH OF MARKET

FOR SALE$3,570,500

SHOWING SCHEDULE

Tue 1/10/17 2:00 – 3:30pm

Tue 1/17/17 2:00 – 3:30pm

COURT CONFIRMATION DATE

Monday, 1/23/17 at 9:00am

2 3 OFFERING MEMORANDUM

TABLE OF CONTENTS

The information contained in this document has been obtained from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior to sale, lease, or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. It is your responsibility to independently confirm its accuracy and completeness. You and your tax and legal advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

EXECUTIVE SUMMARY 4

FINANCIAL OVERVIEW 6

PROPERTY PHOTOS 8

AREA OVERVIEW 10

BRE 01518102

LOUIS CORNEJOdirect: 415.786.3662 email: [email protected]

SALES AND INVESTMENT TEAM

415.863.1775

BRE 00906803

ELAINE HOMdirect: 415.518.3388 email: [email protected]

3 OFFERING MEMORANDUM

Property subject to Probate Court Confirmation. Buyer to use CAR Probate Purchase Contract, signed disclosure package and 10% cashier’s check made payable to First American Title, Escrow #5253685.

The property is to be sold on an "as is" basis. No representation or warranty, express or implied, is made as to the condition or construction of the improvements and building now situated on said property or that the improvements and building conform to existing building laws of the County of San Francisco relating to buildings, or as to age, character, condition, quality or workmanship in the construction of said improvements, or the suitability of the use now existing, or contemplated by any prospective purchaser, of said property, or the freedom from dry rot, termite infestation, asbestos or other hazardous material of said improvements, and any prospective purchaser should rely on his or her own individual investigation and inspection of said property and the improvements located thereon. This sale is subject to all tenants' rights.


EXECUTIVE SUMMARY

Urban Group Real Estate has been selected to exclusively market for sale 544 Bryant Street, San Francisco, CA. The property is ideally located in Central SOMA, an area world renowned for being the tech hub of San Francisco.

544 Bryant Street has been beautifully renovated, both, inside and out, and is fully leased to two commercial tenants, Black Hammer Brewing and JUMBOshrimp. This investment offers great upside, with current rents only 42% of market rate. In additon, it has future development potential in one of San Francisco’s most sought after areas.

Located within the Central SOMA Plan, a re-zoning plan started in 2011 by the San Francisco Planning Department to develop an integrated community in the southern portion of the Central Subway rail corridor. The Central SOMA Plan proposes up-zoning in land use, building size and heights. The draft plan was released for public review in August 2016, and will likely be adopted in 2017.

Central SOMA is home to great restaurants, breweries, bars, cafes, markets and San Francisco’s tech industry. Easy walking distance to the Financial District, South Park, Caltrain and AT&T Park.

The sale is subject to Probate Court Confirmation.

INVESTMENT HIGHLIGHTS:

Ideal Central SOMA location

Fully Leased Investment

In-Place Gross Annual Income $143,376

Future upside, currents rents 42% of market rate


EXECUTIVE SUMMARY

Address: 544 Bryant StreetSan Francisco, CA 94107

APN: 3762-018Submarket: South of Market

Building Sq. Ft: 5,200 sq. ft.Parcel Area: 4,795 sq. ft.

Units: 2Year Built: 1906

Foundation: ConcreteConstruction Type: Wood Frame

Current Use: CommercialZoning: SLI

(Soma Service- Light Industrial)Residential Density: 1:200 for dwelling units

Height & Bulk: 45-X

Proposed Central SOMA Zoning Plan increases Height Limit to 85’


Building Insurance $1,783

Property Taxes $11,976

Maintenance $0

Total Base Year Expenses $13,759

Gross Income $147,569

Additional Rent (Pass Through Allowed) $21,174

Total Gross Income $168,743

Less NEW Operating Expenses ($44,008)

Net Operating Income $124,736

FINANCIAL OVERVIEW

NEW PROPERTY TAX $42,225 Black Hammer

70.00%

Jumbo Shrimp

30.00%

Prorata NEW Property Tax Amount $29,557 None

Prorata Base Year Property Tax Amount ($8,383)

Pass Through Allowed (Additional Rent) $21,174 None

CURRENT OPERATING EXPENSES (base year 2014)

Pass Through Calculation

PRORATA SHARE

Building Insurance $1,783

New Property Taxes (purchase Price X 1.1826%) $42,225

Maintenance $0

Total Base Year Expenses $44,008

NEW OPERATING EXPENSES

PASS THROUGH ALLOWANCE FOR PROPERTY TAXES(Increases over Base Year)

Price $3,570,500

Rentable Square Footage 5,200

$PSF $686.63

CAP Rate 3.49%

GRM 21.16

FINANCIAL SUMMARY


FINANCIAL OVERVIEW

TENANT TYPERENTABLE

SQ. FT.ProrataShare

CurrentRate $PSF

Term Ends Utilities Comments

Black Hammer Brewing LLC

Commercial 3,200 70.00% $7,523.39 $2.35 8/31/19 Paid by Tenant

Option through 8/31/2024

Allows pass through Property

Taxes in event of sale

Jumbo Shrimp Inc Commercial 2,000 30.00% $4,774.05 $2.39 5/31/19 Paid by Tenant

Option through 5/31/22

Does Not Allow Pass Through

Property Taxes in event of sale

TOTALS 5,200 100% $12,297.44

TENANT INFORMATION

Black Hammer Brewing brews, evolved traditional styles of beer in small batches. They specialize in German lagers and English and Belgian ales. The tasting room has a hand-colored copper bar, reclaimed wood, skylights, comfortable seating, and surrealist local paintings.

JUMBOshrimp is full service advertising and marketing agency that drive business for some of the world’s best-known consumer and B2B brands, such as Sunpower, Ericsson, Dolby, Eharmony, Sony, Dell, CBS Sports and CBS Interactive.


PROPERTY PHOTOS

BLACK HAMMER BREWING


PROPERTY PHOTOS

JUMBO SHRIMP


AREA OVERVIEW

544 BRYANT STREET SAN FRANCISCO, CA 94107

PARCEL MAP

AREA MAP


544 BRYANT STREET SAN FRANCISCO, CA 94107

AREA OVERVIEW

SOUTH OF MARKETSouth of Market (SOMA) is world renowned as the birthplace of start-up culture, industrial arts and technology innovation. Previously an industrial district, SOMA has been redeveloped with stylish lofts, high rise towers and renovated warehouse spaces becoming creative work space for entrepreneurs. SOMA has become a “hotspot” for young professionals due to its proximity to the Financial District. The area offers a wide range of amenities from parks, the waterfront, cafés, restaurants, breweries and bars, to Whole Foods Market, and one of the world’s finest dining establishment, Saison, with a Michelin 3-Star rating.

544 Bryant Street is ideally located in Central SOMA, an area bounded by Market, Second, Townsend and Sixth Streets and nestled between the Financial District and South Beach. Central SOMA is one of San Francisco’s most accessible regions, served by Caltrain, extensive Muni services including the new Central Subway, and Interstates 80 and 101, with easy access to the Bay Bridge. The immediate area is famous for a number of sites including South Park, AT&T Park, SFMOMA, Moscone Convention Center and Yerba Buena gardens.

SoMa

RETAIL LEASE

1/2 mile radius

within last 6 months

Average Rent

$4.64 / Sq. Ft.

per Month

OFFICE LEASE

1/2 mile radius

within last 6 months

Average Rent

$5.23 / Sq. Ft.

per Month


August 11, 2016

The 260 acres of land bounded by Market, Second, Townsend and Sixth Streets, which will soon be bisected by the Central Subway and is collectively known as Central SoMa, is currently zoned to support the building of 8,225 new residential units and office space for another 19,140 workers.

By selectively increasing height limits on certain sites, primarily south of Harrison Street, up to 400 feet in height; removing land use restrictions to emphasize office uses in the central portion of the area; and modifying the system of area streets and circulation to meet the needs of a dense transit-oriented district, the first iteration of the City’s Central Corridor (now SoMa) Plan, which was drafted three years ago, added the potential for building an additional 3,490 housing units and office space for another 27,820 jobs within the area.

But as we wrote at the time:“It’s a great start, but with San Francisco projected to add 190,000 new jobs by 2040, filled in part by a projected 150,000 new residents by 2035, and for which 92,000 housing units will need to be built, are the plans for San Francisco’s Central Corridor with excellent regional transit accessibility adjacent to existing job centers and urban amenities big enough?”

This afternoon, a revised Central SoMa Plan will be unveiled and presented to San Francisco’s Planning Commission.

The draft Environmental Impact Report (EIR) for the revised neighborhood Plan is then expected to be released next month. And if all goes as currently envisioned, the City’s Central SoMa Plan could be adopted and in place by mid-2017.

AREA OVERVIEW

The Grand Plan for Building Up Central Soma is about to be Revealed


This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains brief, selected information pertaining to the Property. However, neither the Owner nor Urban Group Real Estate Inc. purport this Package to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Any information contained herein is obtained from sources considered reliable. However, neither the Owner, nor Urban Group Real Estate Inc., make any representation or warranty, expressed or implied, as to the accuracy or completeness of this confidential Memorandum or its contents, nor no legal liability is assumed or implied with respect thereto.

In addition, neither the Owner nor Urban Group Real Estate Inc. is responsible for any misstatement of facts, errors, omissions, withdrawal from market, or change in terms, conditions or price without notice. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Urban Group Real Estate Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to:

Urban Group Real Estate, Inc.

2601 Mission Street Suite 502

San Francisco, CA 94110

Phone: 415-863-1775

Fax: 415-863-4713

CONFIDENTIALITY STATEMENT

544 bryant street - urban group real estate · 2019-06-01 · 544 bryant street, san francisco, ca....

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