794-796 hayes street & 604 webster...

794-796 Hayes Street & 604 Webster Street San Francisco, CA

Offering Memorandum

OFFERING MEMORANDUM | 794-796 HAYES STREET & 604 WEBSTER STREET P.2 COLLIERS INTERNATIONAL

794-796 Hayes Street & 604 Webster Street

Table of ContentsOFFERING SUMMARY 3

FINANCIAL OVERVIEW 4-5

PROPERTY PHOTOGRAPHS 6-9

FLOOR PLANS 10-11

LOCAL & REGIONAL MAP 12

AERIAL OF SUBJECT PROPERTY 13


Colliers International is pleased to present 794-796 Hayes and 604 Webster Street for sale. The property is within easy walking distance to vibrant Hayes Valley shops and restaurants and the Civic Center. Hayes Valley is central to almost everything in San Francisco. The area has easy access to the freeway via the new Octavia Blvd on-ramp and is walking distance to both Muni and Bart Stations. Over the past decade, Hayes Valley has developed into a thriving residential and commercial district, a haven for trendy fashion boutiques, SoHo-style funky art galleries, top-notch restaurants, and hip night spots. In spite of the fast build-up Hayes Valley has managed to retain a sense of community with a quaint neighborhood feel. The combination results in a wide diversity of clientele.

This is a unique opportunity for an investor to acquire a well maintained 3 unit building consisting of three (3) four bedroom with 2 bath units (one of which is not under rent control), two unwarranted units, a bike storage area, and a 2 car garage. For the savvy investor, the unwarranted units present an immediate upside opportunity to monetize the space either by adding ADU’s or reconfiguring the space and adding it to the square footage of 604 Webster. In addition with 62% upside in rents this asset provides long term rent growth potential.

Property Information:Address:

District: Property:Sub Type:

APN:Building Square Feet:

Lot Size: Constructed:

Zoning:

Building Systems:Foundation:

Structure: Façade:

Rear of Building: Roof Composition & Age:

Electrical Service:

Gas Service: Fire Protection System:

Heat Source: Hot Water: Plumbing:

Common Areas:Door Entry System:

Front Landing/Lobby/Stairs:

Garbage: Laundry:

794-796 Hayes Street & 604 Webster Street (2 addresses on one lot)Hayes Valley3 unit building (One is non-rent controlled) 0805-0196,938 Square Feet (based on floor plans)2,700 Square Feet 1885RH-3

Concrete FoundationWoodframe Structure Victorian wood sidingWood siding Tar & gravelSeparately metered (in-unit circuit breakers)Separately metered In-unit smoke & Co2 detectorsForced air heatSeparate in-unit water heatersGalvanized

Door buzzer/intercom systemCarpet over hardwood/stained glass entry doorsRecycling/garbage in tradesman areaIn-unit washer/dryer

Offering Summary

Building Composition:Unit Mix:

Kitchens:

Bathrooms:

Bedrooms:

Note:

Three (3) 4 bedroom/2 bath apartments (one is non-rent controlled)

Tile countersTile floors Gas stoves/ovens Stainless steel sinksDishwasherStandard refrigerator Wood cabinets

Tile floorsPedestal/drop in/cabinet sinksTub/shower combinations Shower door with tile surroundsTile counter tops

Hardwood floorsBlinds

Two (2) car garage & bike storage roomThere are (2) unwarranted efficiency units in the basement of the property


LOCATION: 794-796 HAYES STREET & 604 WEBSTER STREET, SAN FRANCISCO, CA 94102

Financial Overview

Sale Price $3,295,000Down Payment $1,482,750

Number of Units 3

Price/Unit $1,098,333

Gross Square Feet 6,938

Price/Square Foot $475

CAP Rate-Current 3.09%

CAP Rate-Pro Forma 6.48%

GRM-Current 17.81

GRM-Pro Forma 10.96

Year Built 1885

Lot Size 2,700

ANNUAL GROSS INCOMEFINANCIAL SUMMARY

Loan Amount $1,812,250

Loan Type Proposed New

Interest Rate 3.60%

DCR 1.56

Program 5 Year Interest Only

Loan to Value 55%

Unit Type # of Units Current Rents Monthly Income Market Rents Monthly Income

4 Bedroom/2 Bath 3 $3,599-$7,450 $15,020 $7,450 $24,350

Total 3 Total Monthly Income for Units $15,020 $24,350

SCHEDULED INCOME

Current Market

Gross Potential Income $185,036 $300,600

Gross Potential Rent $180,236 $292,200

Vacancy (3.5%) $6,308 $10,227

AGI $178,728 $290,373

Expenses $76,798 $76,798

NOI $101,930 $213,575

Expense Categories Current Exp/Unit % of Exp Market Exp/Unit % of Exp

Property Taxes $38,855 $12,952 51% $38,855 $12,952 51%

Special Assessment Tax $816 $272 1% $816 $272 1%

Insurance $4,446 $1,482 6% $4,446 $1,482 6%

*Direct Expenses $18,134 $6,045 24% $18,134 $6,045 24%

Repairs & Maintenance $3,637 $1,212 5% $3,637 $1,212 5%

Inspections $310 $103 0% $310 $103 0%

PG&E/Water/Garbage $7,925 $2,642 10% $7,925 $2,642 10%

Permits & Fees $561 $187 1% $561 $187 1%

General & Administrative $613 $204 1% $613 $204 1%

Reserves $1,500 $500 2% $1,500 $500 2%

Total Operating Expenses $76,798 $25,599 100% $76,798 $25,599 100%

*Direct Expenses include: hauling, janitorial,leasing commissions, management fee, pest control, supplies, alarm monitoring & locksmith

Current Market

Less Debt Service $65,241 $65,241

Cash Flow $36,689 $148,334

Cash on Cash Return 2.47% 10.00%

Expenses as % of Gross 42% 26%

Expenses per Unit $25,599 $25,599

FINANCING

ANNUAL OPERATING EXPENSES

First Republic Bank - 5 Year Interest Only at 3.60% June 29, 2017 (loan information is time sensitive & subject to change)

CASH FLOW


RENT ROLL

UNITS(Unwarranted) Studio - 1

(Unwarranted) 1 Bedroom - 1

4 Bedroom - 3

Parking - 2

Storage - 1

Financial Overview

NOTES*Units 606 Webster & 606A Webster are unwarranted spaces with development potential

contiguous to the unit above - Currently deriving $950/Month for unit 606

Projected rents based on Current rents & Craigs List asking rents

Projected parking @ $300 per space

Projected storage @ $200

** Unit 604 Webster had been rented for $10,000 from November of 2014 to October 2015

Unit No. Unit Type Base Rent Parking Market Rents

Gross Sq Ft

Move In Date Status

**604 Webster 4 Bedroom/2 Bath $7,450 $7,450 1,429 7/1/2016 Non rent controlled

794 4 Bedroom/2 Bath $3,599 $7,450 1,509 2/1/2002 Rent controlled

796 4 Bedroom/2 Bath $3,971 $7,450 1,468 6/15/2009 Rent controlled

Monthly Rent $15,020 $24,350 6,938

Parking $300 $600 non tenant parking

Storage $100 $100 Vacant

Total Monthly Income $15,420 $25,050

Annual Income $185,036 $300,600 Upside 62%

Unit No. Unit Type Base Rent Parking Market Rents

Move In Date Status

*606 Webster Efficiency/Bath Included $1,000 2/1/2015 Basement unit

*606A Webster Efficiency/Bath $1,000 Vacant Basement unit

Unwarranted Units


Property Photographs

CLICK HERE FOR INTERACTIVE VIEW OF UNITS

http://www.colliers-international.com/SanFrancisco/Multifamily/Giovara/Hayes_796/index.html


Floor Plans

DN

NEIGHBORING BUILDING

GA

RA

GE

851 SQFT

PRO

PERTY LINE

95'-0"

20'-3"

51'-0"

17'-9"

38'-0"

6'-6 1/2"4'-2 1/2"

23'-1 3/4"

UP

DN

UP

UP

17'-0 1/4"

PROPERTY LINE

NEIG

HBO

RIN

G BU

ILDIN

G

STOR

AG

E740 SQ

FT

BATH

43 SQFT

PRO

PERTY LINE

STOR

AG

E163 SQ

FT

HA

LL210 SQ

FT

BATH

38 SQFT

STOR

AG

E161 SQ

FT

BATH

26 SQFT

36'-7 1/4"

43'-0 3/4"11'-6 1/8"

14'-2"

11'-6 1/8"7'-1 5/8"

4'-2 3/4" 14'-1 7/8"

7'-9"

5'-6"

18'-3 5/8"

6'-0 1/2"

REA

R YA

RD

4'-9"13'-2"

2FIR

ST FLOO

R PLAN

- 604 WEBSTER

STREET

1BASEM

ENT AN

D G

ARAG

E FLOO

R PLAN

01.20.14

1/4"=1'-0"

BASEMEN

T AND

A1

FIRST FLO

OR

PLANS

TITLE

SCALE

DATE

446 PAGE STR

EETSAN

FRAN

CISC

O, C

A 94102P 510.289.4973

timm

[email protected]

SUBM

ISSION

#D

ATER

EV

794 - 796 Hayes Street & 604 Webster StreetSan Francisco, CA

HAYES AND WEBSTER

jeff timm

insD

ESIGN

02

4 FT

SCALE: 1/4"=1'-0"

02

4 FT

SCALE: 1/4"=1'-0"

DN

NEIGHBORING BUILDING

SIDEW

ALK

WEBSTER STREET

DN

DN

NEIG

HBO

RIN

G BU

ILDIN

G

BED

RO

OM

1181 SQ

FT

BED

RO

OM

2128 SQ

FT

SITTING

RO

OM

141 SQFT

BATH

131 SQ

FT

LIVING

RO

OM

267 SQFT

BED

RO

OM

3101 SQ

FTB

EDR

OO

M 4

98 SQFT

KITC

HEN

116 SQFT

BATH

250 SQ

FT

UP

CLO

SET

CLO

SETC

LOSET

CLO

SET

CLO

SET

CLO

SET

DN

SIDEW

ALK

HAYES STR

EET

UP

UP

UP

10'-3 1/2"2'-3"

10'-4"5'-1"

11'-5 3/4"3'-1"

2'-0"8'-4"

7'-2"5'-11"

6'-11 1/4"11'-8"

9'-2 1/2"9'-4"

7'-11 1/4"2'-3 1/4"

25'-11 3/4"13'-6 3/8"

14'-11" 6'-1"

10'-11 3/8"

7'-11 3/4"

7'-7 3/4"

14'-5 3/4"

W/D

REF

DW

PROPERTY LINE

PRO

PERTY LINE

PRO

PERTY LINE


Floor Plans

01.20.14

1/4"=1'-0"

SECO

ND

AND

THIR

D

A2

FL PLANS & SQ

FT TOTALS

TITLE

SCALE

DATE

446 PAGE STR

EETSAN

FRAN

CISC

O, C

A 94102P 510.289.4973

timm

[email protected]

SUBM

ISSION

#D

ATER

EV

794 - 796 Hayes Street & 604 Webster StreetSan Francisco, CA

HAYES AND WEBSTER

jeff timm

insD

ESIGN

2TH

IRD

FLOO

R PLAN

- 794 HAYES STR

EET

BATH

35 SQFT

DN

LIVING

133 SQFT

UP

DN

NEIG

HBO

RIN

G BU

ILDIN

G

BED

RO

OM

1186 SQ

FT

UP

STOR

AG

E71 SQ

FT

BED

RO

OM

2165 SQ

FTB

EDR

OO

M 3

110 SQFT

BED

RO

OM

4154 SQ

FT

7'-2 1/4" 11'-6"

14'-2"11'-5 3/8"

2'-3"2'-5"

8'-8"2'-0"

12'-0 1/2"7'-3"

BATH

48 SQFT

HA

LL132 SQ

FT

9'-2 3/4"9'-5 1/4"

13'-7 1/2"12'-11 1/4"

11'-6"

7'-0"

11'-6"

9'-10"C

LOSET

CLO

SET

CLOSET CLO

SETC

LOSET

CLO

CLO

SET

KITC

HEN

123 SQFT

12'-3" 6'-6"

WH

W/D

REF

DW

4'-11 3/8"PROPERTY LINE

PRO

PERTY LINE

PRO

PERTY LINE

1SEC

ON

D FLO

OR

PLAN - 796 H

AYES STREET

02

4 FT

SCALE: 1/4"=1'-0"

02

4 FT

SCALE: 1/4"=1'-0"

BATH

35 SQFT

DN

LIVING

138 SQFT

DN

NEIG

HBO

RIN

G BU

ILDIN

G

BED

RO

OM

1184 SQ

FT

STOR

AG

E68 SQ

FT

BED

RO

OM

2167 SQ

FTB

EDR

OO

M 3

122 SQFT

BED

RO

OM

4144 SQ

FT

7'-0 3/4" 11'-5 1/2"

14'-0 1/4"11'-7 7/8"

2'-3"1'-11"

10'-7 1/2"12'-9"

7'-2"

BATH

43 SQFT

HA

LL157 SQ

FT

9'-1 1/2"9'-6 1/2"

13'-8 1/4"14'-3 1/2"

11'-5 1/2"

7'-0"

11'-5 1/2"

9'-7 3/8"

CLO

SETC

LOSET

CLO

SET

CLO

SET

KITC

HEN

123 SQFT

12'-2 1/4" 6'-7"

W/D

REF

DW

4'-10 5/8"

CLO

SET

PROPERTY LINE

PRO

PERTY LINE

PRO

PERTY LINE

FLOO

R PLAN

TOTALS

FULL FLO

OR

2,5322,243

604 WEBSTER

STC

OM

MO

N SPAC

EFU

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1,266163

1,429

1,113134

1,247

AR

EAG

RO

SS SFN

ET SFFLB1

796 HAYES ST

CO

MM

ON

SPACE

FULL FLO

OR

1,313155

1,468

1,157130

1,2872

794 HAYES ST

CO

MM

ON

SPACE

FULL FLO

OR

1,345163

1,509

1,181135

1,3163

TOTA

L B

UILD

ING

SF6,938

6,093


Franklin

Gough

Golden Gate

Golden Gate

McAllister

McAllister

Fulton

Grove

Grove

Hayes

FultonGrove

Hayes

Fell

Fell

Oak

Oak

Page

Page

Lyon

Baker

Broderick

Divisadero

Turk

Willow

LagunaBuchanan

Webster

Fillmore

Steiner

Pierce

Scott

Steiner

Pierce

Scott

Terra Vista

Market

McCoppin

Gough

12th St

12th St

Van Ness

Hickory

Lily

Rose

Lausatt

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Haight

Waller

H mann

Potoma

Carme

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Encanto

St Joseph’s

Fortuna B

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Ivy

Ivy

Birch

Linden

Larch

Beideman

Bannecker

Cran

Seymour

Pinar

D

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Natoma

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LafayetteStevenso

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P

Pink

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Redwood Redwood

Ash

Elm

Chase

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AlamoSquare Muni

MetroVanNess

CityHall

DaviesSymphonyHall

OperaHouse

CivicCenter

UP

JeffersonSquare

DMV

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Regional Map

Location Map

794-796 Hayes St

794-796 Hayes St


CONFIDENTIALITY & DISCLAIMER STATEMENTThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 794-796 Hayes Street & 604 Webster Street San Francisco, CA 94114. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by 794-796 Hayes Street & 604 Webster Street from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from 794-796 Hayes Street & 604 Webster Street you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence; and

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of 794-796 Hayes Street & 604 Webster Street or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Prop-erty shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date of this Offering Memorandum.

Aerial Map

794-796 Hayes St

BRAD LAGOMARSINO1 415 288 [email protected] Lic. 01058500

101 Second Street, 11th Floor San Francisco, CA 94105 1 415 788 3100 www.colliers.com

JAMES DEVINCENTI1 415 288 [email protected] Lic. 00951916

JOSEPH GIOVARA1 415 288 [email protected] Lic. 01449059

www.theDLTeam.com

794-796 hayes street & 604 webster...

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