370 Ellis Street I San Francisco, CA
Offering Memorandum
OFFERING MEMORANDUM | 370 ELLIS STREET P.2 COLLIERS INTERNATIONAL
Table of ContentsOFFERING SUMMARY 3
FINANCIAL OVERVIEW 4-5
PROPERTY PHOTOGRAPHS 6-7
SALES COMPARABLES 8-9
LOCAL & REGIONAL MAP 10
AERIAL OF SUBJECT PROPERTY 11
- SHOWINGS BY APPOINTMENT
www.theDLTeam.com
BRAD LAGOMARSINO1 415 288 [email protected] Lic. 01058500
JAMES DEVINCENTI1 415 288 [email protected] Lic. 00951916
For More Information Contact:Colliers International
OFFERING MEMORANDUM | 370 ELLIS STREET P.3 COLLIERS INTERNATIONAL
Colliers International is pleased to present 370 Ellis Street, San Francisco, CA for purchase. This apartment building islocated in the Tenderloin District. The area is becoming a popular destination for its vibrant nightlife, live music, art galleries,consignment stores, and boutiques. Abundant transit lines pass through the neighborhood, allowing residents to get anywhere inthe city due to it’s core location. The asset is also located near the rapidly changing and improving Mid-Market area of San Fran-cisco and is within walking distance to High Tech companies such as Twitter, Zinga, Yelp, Square, and many others, as well as, Union Square and the Downtown Financial District.
The building is comprised of twenty seven (27) Studio/1 bath units (7 units are currently vacant and poised to take advantage of unit turnover and keep pace with market rents). This property offers an investor immediate rental upside and substantial appreciation.
Property Information: Address: District:
Property:APN:
Building Square Feet:Lot Size:
Constructed: Zoning:
Building Systems:Foundation:
Structure: Façade:
Rear of Building: Roof Composition & Age:
Electrical Service: Circuit Breakers
Gas Service: Fire Protection System:
Fire Escapes:Heat Source:
Hot Water:
Plumbing:
Common Areas:Door Entry System:
Front Landing/Lobby: Landing Areas:
Garbage:
Laundry:Storage: Elevator:
370 Ellis StreetTenderloinTwenty Seven (27) unit apartment building0324-00911,800 Sq Ft (per tax records)3,4411915RC4
Concrete FoundationMasonry Stucco exteriorStucco Rolled on compositeSeparately metered (400 amp service)In units and at the service in tradesman’s areaSeparately metered Local fire alarm, sprinkler system and hard wired smoke detectors in common areasFront & rear of buildingBaseboard electric heatAmerican standard hot water heater-100 gallons (1/3/2018)Mix of copper and galvanized
DKS key-pad entry systemCarpet floorsCarpet floorsChute (repositories located between lobby and landing areaNoneNoneYes
Offering Summary
Building Composition:Unit Mix:
Kitchens:
Bathrooms:
Bedrooms:
Note:
Twenty Seven (27) Studio/1 bath units
Formica/Corian countersGas ranges/ovensStainless steel sinksOver-under refrigerators Wood cabinetryGeometric sheet vinyl/gray Upgraded lighting
Geometric sheet vinyl flooringCabinet/stand alone porcelain sinksStorage mirrorTub/shower combinations with porcelain tile surrounds
Large closetsGray vinyl flooringLarge windowsAluminum blinds
Seven (7) of the units are currently vacant
OFFERING MEMORANDUM | 370 ELLIS STREET P.4 COLLIERS INTERNATIONAL
LOCATION: 370 ELLIS STREET, SAN FRANCISCO, CA 94102
Financial Overview
Sale Price $3,996,000Down Payment $908,500
Number of Units 27
Price/Unit $148,000
Gross Square Feet 11,800
Price/Square Foot $339
CAP Rate-Current 5.92%
CAP Rate-Pro Forma 7.64%
GRM-Current 9.21
GRM-Pro Forma 7.83
Year Built 1915Lot Size 3,441
ANNUAL GROSS INCOMEFINANCIAL SUMMARY
Loan Amount $3,087,500
Loan Type Proposed New
Interest Rate 4.00%
DCR 1.91
Program 5 Year Interest OnlyLoan to Value 77%
Unit Type # of Units Current Rents Monthly Income Market Rents Monthly Income
Studio/1 Bath 27 $456-$1,575 $36,153 $1,575 $42,525
Total 27 Total Monthly Income for Units $36,153 $42,525
SCHEDULED INCOME
Current Market
Gross Potential Income $433,842 $510,300
Vacancy (5%) $21,692 $25,515
AGI $412,149 $484,785
Expenses $175,724 $179,547
NOI $236,425 $305,238
Expense Categories Current Exp/Unit % of Exp Market Exp/Unit % of Exp
Property Taxes $47,121 $1,745 27% $47,121 $1,745 26%
Special Tax Assessment $4,941 $183 3% $4,941 $183 3%
Insurance $4,074 $151 2% $4,074 $151 2%
Water $19,756 $732 11% $19,756 $732 11%
Scavenger $14,040 $520 8% $14,040 $520 8%
PG&E $2,572 $95 1% $2,572 $95 1%
Offsite Manager $21,692 $803 12% $25,515 $945 14%
Onsite Manager $9,000 $333 5% $9,000 $333 5%
Fire Safety $1,178 $44 1% $1,178 $44 1%
Locksmith & Security $10,749 $398 6% $10,749 $398 6%
Telephone $768 $28 0% $768 $28 0%
Legal $3,208 $119 2% $3,208 $119 2%
Cleaning $1,787 $66 1% $1,787 $66 1%
Contract Labor $1,158 $43 1% $1,158 $43 1%
Supplies $510 $19 0% $510 $19 0%
Elevator $3,000 $111 2% $3,000 $111 2%
Janitorial $5,724 $212 3% $5,724 $212 3%
Repairs & Maintenance $14,535 $538 8% $14,535 $538 8%
Hauling $6,090 $226 3% $6,090 $226 3%
Pest Control $3,822 $142 2% $3,822 $142 2%
Total Operating Expenses $175,724 $6,508 100% $179,547 $6,650 100%
Current Market
Less Debt Service $123,500 $123,500
Cash Flow $112,925 $181,738
Cash on Cash Return 12.43% 20.00%
Expenses as % of Gross 41% 35%
Expenses per Unit $6,508 $6,650
FINANCING
ANNUAL OPERATING EXPENSES
JP Morgan Chase: Quote: August 16, 2017 (Loan information is time sensitive & subject to change.Loan quote is contingent on 85% of the units being rented).
CASH FLOW AFTER DEBT SERVICE
OFFERING MEMORANDUM | 370 ELLIS STREET P.5 COLLIERS INTERNATIONAL
RENT ROLL
UNITSStudios - 27
Financial Overview
NOTESMarket rents based on highest recent rents
*Unit 3, 4, 9 & 25 - low income subsidized rents
Unit No. Unit Type Current Rents Market Rent Move In Date Notes
01 Studio/Bath $1,575.00 $1,575.00 Vacant02 Studio/Bath $1,461.50 $1,575.00 9/12/2017
*03 Studio/Bath $1,150.00 $1,575.00 2/1/2009 Section 8
*04 Studio/Bath $1,381.00 $1,575.00 1/3/2015 Section 8
05 Studio/Bath $1,350.00 $1,575.00 9/15/2017
06 Studio/Bath $1,350.00 $1,575.00 1/17/2014
07 Studio/Bath $1,461.50 $1,575.00 9/10/2017
08 Studio/Bath $1,575.00 $1,575.00 1/1/2016
*09 Studio/Bath $995.00 $1,575.00 8/8/2007 Section 8
10 Studio/Bath $1,361.50 $1,575.00 6/15/2017
11 Studio/Bath $1,453.00 $1,575.00 3/31/2014
12 Studio/Bath $1,575.00 $1,575.00 Vacant14 Studio/Bath $789.00 $1,575.00 11/1/2002
15 Studio/Bath $455.80 $1,575.00 9/1/1985
16 Studio/Bath $1,575.00 $1,575.00 Vacant17 Studio/Bath $1,575.00 $1,575.00 Vacant18 Studio/Bath $1,575.00 $1,575.00 2/1/2017
19 Studio/Bath $1,575.00 $1,575.00 Vacant20 Studio/Bath $1,404.02 $1,575.00 2/28/2014
21 Studio/Bath $1,575.00 $1,575.00 Vacant22 Studio/Bath $1,450.00 $1,575.00 10/1/2016
23 Studio/Bath $1,450.00 $1,575.00 10/7/2016
24 Studio/Bath $1,335.00 $1,575.00 6/28/2013
*25 Studio/Bath $1,180.00 $1,575.00 9/15/2009 Section 8
26 Studio/Bath $1,450.00 $1,575.00 9/15/2017
27 Studio/Bath $1,575.00 $1,575.00 Vacant
28 Studio/Bath $501.14 $1,575.00 5/15/1997
Rental Income $36,507.44 $42,525.00
Total Monthly Income $36,153.46 $42,525.00Total Annual Income $433,841.52 $510,300.00 Upside 18%
OFFERING MEMORANDUM | 370 ELLIS STREET P.6 COLLIERS INTERNATIONAL
Property Photographs
OFFERING MEMORANDUM | 370 ELLIS STREET P.7 COLLIERS INTERNATIONAL
Property Photographs
OFFERING MEMORANDUM | 370 ELLIS STREET P.8 COLLIERS INTERNATIONAL
Tech Companies
STRATEGIC LOCATION TO SAN FRANCISCO’S NEW TECHNOLOGY ECONOMY AT THE HEART OF THE MILLENNIAL CULTURELeaders in the technology economy paved the way for the urban renaissance of San Francisco’s Mid-Market dis-trict. Driven by a new wave of entrepreneurial spirit and an incredible appetite for large blocks of creative office space, Twitter, Uber, Square, and others are remaking the Mid-Market district by combining the tech campus tradition with the irreplaceable live energy of a true gateway city. Consequently, the submarket has experienced strong rental demand from the growing labor base of young technology workers, artists, and other single pro-fessionals who desire to live within walking distance to their offices.
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370 Ellis St
OFFERING MEMORANDUM | 370 ELLIS STREET P.9 COLLIERS INTERNATIONAL
Public Transportation
v
WITH IMMEDIATE ACCESS TO ONE OF THE NATION’S BEST PUBLIC TRANSIT SYSTEMSThe area around 370 Ellis Street offers an extensive transportation network which ensures superior regional access throughout San Francisco and the surrounding Bay Area. Atlantic Cities’ “Access Across America, Transit 2014” ranked San Francisco second only to Manhattan for public transit efficiency, based on how many jobs a resident can access within a 10 to 30 minute commute during the morning rush hours of 7am to 9am. 370 Ellis Street is within walking distance of a variety of public transit systems, including the Civic Center/UN Plaza Bay Area Rapid Transit System (BART) station, the underground MUNI, and street-level rail—all in addition to a va-riety of San Francisco’s caravan of ‘Tech Shuttles’ moving busloads of Google, Genentech, Facebook, and Apple employees from their homes in San Francisco to their job centers in Silicon Valley.
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Bart/Muni Metro Civic CenterBart/Muni Metro Powell Street
BART & MUNI METRO
Civic Center @ Golden Gate AvenueMarket @ Civic CenterMarket @ 7th StreetMarket @ 6th Street
Market @ Hyde Street
BUS & MUNI LIGHT RAIL
Bart/Muni Metro Montgomery StreetBart/Muni Metro Embarcadero Station
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BART/Muni MetroPowell St
BART/Muni MetroMontgomery St
BART/Muni MetroEmbarcadero
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FerryBuilding
ChinaBasin
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370 Ellis St
OFFERING MEMORANDUM | 370 ELLIS STREET P.10 COLLIERS INTERNATIONAL
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Regional Map
Location Map
370 Ellis St
370 Ellis St
OFFERING MEMORANDUM | 370 ELLIS STREET P.11 COLLIERS INTERNATIONAL
CONFIDENTIALITY & DISCLAIMER STATEMENTThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 370 Ellis Street San Francisco, CA 94102. 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 370 Ellis 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 370 Ellis 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 370 Ellis 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
370 Ellis 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
www.theDLTeam.com