nob hill residential investment post... · the east, nob hill to the north, the tenderloin to the...

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Investment Property Offering

NOB HILL RESIDENTIAL INVESTMENT 875 Post Street San Francisco, CA 94109

$3,899,000 100% Master-Leased for 14 Years

Fully Entitled for Addition of 4 Condominium Units

Presented By: Brian W. Topley, CCIM Sperry Van Ness 250 Montgomery St., Suite 1200, San Francisco, CA (415) 274-2521


Description of Property

Property Overview 875 Post Street is a unique opportunity to for an investor to acquire a long-term Master Leased residential property with annual increases (min 2% - max 6%). The property consists of 44 SRO units Master-Leased to Tenderloin Housing Clinic, a development site entitled for 4 new condominium units, and 2 SRO units not included in the Master Lease. The Master Lessee pays a fixed monthly rent and is responsible for utilities, management, repairs and maintenance. The Landlord is responsible for maintaining structural elements including: roof, foundation, exterior walls and main sewer and gas lines. Development Opportunity 875 Post Street is entitled for the construction of 4 new condominium units on the courtyard level. The courtyard has a private entrance off of Post Street and is an appealing common area and amenity for the to-be-built condominium owners or tenants. The building plans are substantially complete and current owner has submitted building plans to the Department of Building Inspection. The common area development budget and HOA by-laws are also substantially complete and have been submitted to the Department of Real Estate. The proposed condominium plan creates 5 units total consisting of 4 residential condominiums and 1 unit consisting of the residential hotel.


Executive Summary NOB HILL RESIDENTIAL INVESTMEN

875 Post Street

San Francisco, CA 94109

List Price $3,899,000

GRM 13.69 Price Per Unit $84,761

Price per S.F. $247.34

CAP 5.77 %

Total Units 46

Building S.F. 15,764

No. of Buildings 1

Land Acres 0.1085

Lower Nob Hill SRO Investment Opportunity

Cross Street Hyde Street Tax Parcel Number 0303-014

Market San Francisco Sub Market Lower Nob Hill

Year Built 1911 Foundation Type Concrete

Building Class B Location Class B

Zoning Type RC4 No. of Stories 3

Occupancy 100.00 % Lot Dimensions 137.50ft by 34.37ft

Property Descriptions

Construction Poured in place concrete

Utilities Paid by Master Tenant

Area San Francisco's Lower Nob Hill neighborhood is a diverse mix of multifamily, single room occupancy and street retail buildings. It is bordered by the Financial District on the East, Nob Hill to the North, the Tenderloin to the West and Civic Center on the South. The subject property is located within walking distance of San Francisco's acclaimed Union Square shopping district and a few blocks from restaurant and retail rich Polk Street. Numerous public transportation lines run along the neighboring streets.

Property The subject property is composed of 45 single room occupancy (SRO) units that are 100% leased to the Tenderloin Housing Clinic for 14 years renewable on an annual basis. Additionally it is entitled for the addition of four (4) residential condominiums on the lower level. There are also 2 SRO units, one with a private bathroom that are not a part of the Master Lease.

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Price 3,899,000.00$ 3,899,000.00$ Construction Costs -$ 348,772.00$ Total Cost 3,899,000.00$ 4,247,772.00$ Gross Building Area (Sq. Ft.) 15,764.00 15,764.00 Price per Sq. Ft. 247.34 269.46 GRM 13.97 11.28 No. of Units 46.00 50.00 Price per unit 84,760.87$ 84,955.44$

Current ProFormaCap Rate (based on Total Cost) 5.74% 7.53%

Rental Income Current ProForma Potential Rental Income 284,800.00$ 384,400.00$

Less Vacancy (Estimated 2%) 5,696.00$ 7,688.00$

Investment Overview875 Post Street

Pro Forma Income Statement

Less Vacancy (Estimated 2%) 5,696.00$ 7,688.00$ Total Income 279,104.00$ 376,712.00$

Direct Expenses Property Tax (at assumed sale price x 1.135%) 44,253.65 44,253.65

Repairs & Maintenance (THC responsible for repairs/maintenance for main building) (1) 2,000.00 3,500.00

PGE (1) 600.00 600.00 Water (1) 300.00 300.00 Garbage (1) - - Property Insurance 8,000.00 8,000.00 Resident Manager - - Property Management (5% on units not leased to THC) 990.00 5,970.00 Capital Improvement Reserve ($100 per unit) 4,600.00 5,000.00 Legal and Professional 2,000.00 2,000.00 Total Direct Expense 55,153.65$ 56,653.65$

Net Operating Income 223,950.35$ 320,058.35$

We have obtained the above information from sources we believe to be reliable, but no representations of any kind --expressed or implied-- are being made as to the accuracy of such information. All references to square footage, lot size as to the accuracy of such information. All references to square footage, lot size, age of improvements, or income/expenses are approximate only. Buyer should conduct an independent investigation of all pertinent property information. We bear no liability for any errors, inaccuracies or omissions.

(1) THC pays all utilities, repairs and related expenses on 44 units. Expenses shown are expenses allocated to non THC units.

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Rent Roll - 875 Post StreetPreparation Date: November 15, 2008

RENTAL INFORMATION

Unit # TypeUnit Area (sq ft) (2)

Current Monthly Rent

Proforma Monthly Rent Notes

Main Building Master Lease - Tenderloin Housing Clinic, Inc. 12,899 22,083.33$ 22,083.33$

Leased Commenced May 2002. The lease encumbers the property for 20 years with annual increases. Tenant pays most expenses except for real estate taxes and property insurance.

Unit 45 Studio - private bathroom 275 900.00$ 1,150.00$ Unit 46 Studio - shared bathroom 275 750.00$ 750.00$ 101 (1) 2 bd/ 1 ba 950 -$ 2,650.00$ 102 (1) 1 bd/1 ba 500 -$ 2,050.00$ 103 (1) 1 bd/1 ba 500 -$ 2,050.00$ 104 (1)

Studio 365 $ 1 300 00$104 Studio 365 -$ 1,300.00$ Total 15,764 23,733.33$ 32,033.33$ Annual Total 284,800.00$ 384,400.00$

(1) Units 101-104 are entitled and approved by the Planning Department but not yet constructed.(2) Unit areas are estimated from architectural plans for construction of new units and Building Title Record.

The information contained herein has been obtained from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. Reference to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

PROPERTY OVERVIEW - 875 Post Street

Evaluation of Sale of 4 units as individual condos

UNIT SUMMARYUnit Description Unit Size Completed Value Price PSF Monthly RentUnit 1 2 Bd/ 1 Ba 950 550,000$ 579$ 2,650$ Unit 2 1 Bd/ 1 Ba 500 385,000$ 770$ 2,150$ Unit 3 1 Bd/ 1 Ba 500 385,000$ 770$ 2,150$ Unit 4 Studio 365 300,000$ 822$ 1,300$ Total Completed Value 2,315 1,620,000$ 700$ 8,250$

COST SUMMARYItem Amount NoteAcquistion Price -$ Construction Estimate - Build Warm Shell 213,772$ Warm ShellConstruction Estimate - FFE 100,000$ Finish WorkCommon Area 25,000$ Soft Costs (Architectural, Design, Permits, etc) 10,000$ Costs of Sale 81,000$ (5% of Completed Value)Total 429,772$

Captial Requirement (Un-Leveraged)Site Cost -$ Construction Costs 313,772$ Common Area 25,000$ Soft Costs (Architectural, Design, Permits, etc) 10,000$ Total 348,772$

Potential Profit 1,190,228$ Capital Requirement 348,772$ Total Return on Invested Capital 341%

Notes(1) Construction Estimate provided by Michael Behan does not include bathroom and kitchens

The information contained herein has been obtained from sources we believe to be reliable, but we make no representations or warranties, expressed or implied as to the accuracy of the information. Reference to square footage or age are approximate. Buye


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Aerial Photograph


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Rendition of Facade Improvement


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Rendering of Proposed Addition


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Render of Proposed Addition (Alternative)


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Rendition of Facade Improvement


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Existing Courtyard Photo


Hallway Photo


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Lobby Photo


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Location Map


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Parcel Map


Demographics Report 875 Post Street San Francisco, CA 94109

1.00 Mile Ring

3.00 Mile Ring

5.00 Mile Ring

POPULATION 1990 Population 119,989 373,463 620,298

2000 Population 131,736 398,481 661,800 % Population Change 1990-2000 9.79 % 6.70 % 6.69 %

2007 Total Population 126,608 381,121 636,268 2012 Total Population 124,593 370,165 619,190 % Population Change 2000-2007 -3.89 % -4.36 % -3.86 % % Population Change 2007-2012 -1.59 % -2.87 % -2.68 % 2007 Total Households 78,884 213,344 309,896 2012 Total Households 81,845 219,471 317,280 % Households Change 2000-2007 7.74 % 6.58 % 5.67 % % Households Change 2007-2012 3.75 % 2.87 % 2.38 % 2007 White Population 59,319 227,472 332,707 2007 Black Population 8,320 22,334 43,383 2007 American Indian/Alaska Native 459 1,510 2,071 2007 Asian/Hawaiian/Pacific Islander 49,451 91,833 196,373 2007 Other Population (Incl 2+ Races) 9,058 37,972 61,734 2007 Hispanic Population 11,268 55,970 91,337 2007 Non-Hispanic Population 115,340 325,151 544,932 2007 Per Capita Income $71,995 $75,561 $62,361 2007 Median Household Income $52,510 $73,007 $73,298 2007 Average Household Income $115,551 $134,984 $128,037 2007 Household Income < $10,000 8,220 14,091 18,732 2007 Household Income $10,000-$14,999 4,532 8,228 11,713 2007 Household Income $15,000-$19,999 3,844 7,384 10,116 2007 Household Income $20,000-$24,999 3,677 6,961 10,042 2007 Household Income $25,000-$29,999 3,359 6,971 9,595 2007 Household Income $30,000-$34,999 3,718 7,631 10,990 2007 Household Income $35,000-$39,999 3,404 7,443 10,342 2007 Household Income $40,000-$44,999 3,719 8,150 11,577 2007 Household Income $45,000-$49,999 3,522 7,736 11,355 2007 Household Income $50,000-$59,999 5,763 14,480 21,220 2007 Household Income $60,000-$74,999 6,840 20,290 33,007 2007 Household Income $75,000-$99,999 8,205 29,572 46,980 2007 Household Income $100,000-$124,999 4,566 17,015 25,755 2007 Household Income $125,000-$149,999 4,377 16,615 25,033


2007 Household Income $150,000-$199,999 4,856 18,736 25,875 2007 Household Income $200,000-$249,999 3,026 11,231 13,874 2007 Household Income $250,000-$499,999 2,742 9,834 12,547 2007 Household Income $500,000+ 514 974 1,141 2007 Average Household Size 1.53 1.72 2.00 2007 Total Owner Occupied Housing Units 10,435 50,739 108,195 2007 Total Renter Occupied Housing Units 68,511 162,567 201,650 2007 Total Daytime Population 195,034 467,594 672,806 2007 Total Daytime Work Population 142,009 330,749 416,656 2007 Total Establishments 17,630 42,470 54,244

HOUSEHOLDS 1990 Households 63,200 180,857 270,238

2000 Households 73,220 200,180 293,270 % Households Change 1990-2000 15.85 % 10.68 % 8.52 %

PROFESSIONAL BIOGRAPHY

Brian W. Topley, CCIM Senior Investment Advisor Brian’s career in commercial real estate began in the San Francisco Bay Area in 2001. During this term, he has brokered over $150 million in real estate value representing more than 125 transactions. He worked at prestigious firms including Sperry Van Ness and Arroyo & Coates and specializes in the acquisition and disposition of commercial and multifamily properties in the San Francisco Bay Area. His clients include a number of successful real estate development and management firms including Metrovation Development, Kennedy Wilson, Union Property Capital, JBL Enterprises, Conner-McLaughlin Properties, Montgomery Realty Inc. and Taylor-Lombardo Architects. Brian has an undergraduate degree in Mechanical Engineering from the University of Michigan, Ann Arbor and a Masters Degree with a concentration in Finance from Stanford University. His extracurricular activities include serving on the Board of Directors of Boys & Girls Clubs of Oakland (Marketing Committee Chairman) and participating as a member of San Francisco Planning and Urban Research (SPUR). Brian is also a CCIM Designee, which is a regarded distinction in the field of commercial real estate investment. Experience 2005 – Present: Sperry Van Ness Commercial Real Estate, Senior Investment Advisor 2003 – 2005: Arroyo & Coates, Inc., Commercial Investment Advisor 2001 – 2003: Starboard TCN Worldwide Commercial Real Estate Services, Commercial Investment Advisor 1999 – 2001: Mvion, Inc., Director of Business Development Education 2003: CCIM Institute, Designation Awarded 1999: MS, Stanford University, Management, Science and Engineering (concentration in Finance) 1998: BS, University of Michigan, Mechanical Engineering Licenses Series 22 – Direct Participation Program (DPP) Registered Representative Series 39 – Direct Participation Program (DPP) Principal Series 63 – Uniform Securities Agent Licensed Real Estate Broker – State of California

nob hill residential investment post... · the east, nob hill to the north, the tenderloin to the...

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