offering memorandum · financial overview 4-5 property photographs 6-9 floor plans 10-13 tech...

620 Eddy Street I San Francisco, CA

Offering Memorandum

OFFERING MEMORANDUM | 620 EDDY STREET P.2 COLLIERS INTERNATIONAL

Table of ContentsOFFERING SUMMARY 3

FINANCIAL OVERVIEW 4-5

PROPERTY PHOTOGRAPHS 6-9

FLOOR PLANS 10-13

TECH COMPANIES 14

PUBLIC TRANSPORTATION 15

LOCAL & REGIONAL MAP 16

AERIAL OF SUBJECT PROPERTY 17

SHOWING SCHEDULE

- Tuesday April 17, 2018 from 9:30 to 11:00 am

BRAD LAGOMARSINO1 415 288 [email protected] Lic. 01058500

JAMES DEVINCENTI1 415 288 [email protected] Lic. 00951916

www.theDLTeam.com

Colliers International


The subject property located at 620 Eddy Street is a 35-unit concrete building built on a concrete foundation. Constructed in 1910 the structure is approximately 17,546 square feet and occupies a mid-block lot between Polk Street & Larkin Street in the Tenderloin neighborhood of San Francisco.

A lot of history remains preserved in this area with many old hotels and apartment buildings. Restaurant gems, ethnic offerings unlike any other place in the city, are sprinkled throughout. Civic Center, Market Street and the busy Commercial corridor on Van Ness Ave are within a couple of blocks and walking distance. Abundant transit lines pass through the neighborhood, allowing residents to get anywhere in the city due to it’s core location. The building shows well and many of the apartments have been remodeled. The unit mix in the building consists of four (4) efficiencies, twenty six (26) studios, and five (5) one bedroom apart-ments.

For the investor, this property provides the opportunity to acquire a well maintained apartment building in the Van Ness Civic Center/Tenderloin neighborhood of San Francisco with upside appreciation potential in rents.

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:

Entrance: Lobby Lighting:

Lobby & Common Areas:Garbage: Laundry:Storage: Elevator:

620 Eddy StreetTenderloinThirty Five (35) unit apartment building0740-00917,546 Sq Ft (Floor Plans)6,2981910RC4

Concrete FoundationMasonryStucco exteriorStucco Rolled on Composite (10 years est.)Separately metered200 amp electrical service with circuit breakers in units/basementSeparately metered Hard wired smoke detectors & alarm sys-tems in hallways and in some unitsFront of buildingSteam heat radiatorsPeerless boiler, separate water heaters & two 119 gallon storage tanks)Mostly copper and some galvanized

Key systemmarble entrywayModern decorative light fixturesCarpetRear of building2 washers/dryers (leased)3 storage units (included in rents)DC cable operated

Offering Summary

Building Composition:Unit Mix:

Kitchens:

Bathrooms:

Bedrooms:

Four (4) Efficiency/1 bath units, Twenty Six (26) studio/1 bath units & five (5) one bedroom/one bath units

Granite countersGas ranges/ovens with hood ventsStainless steel sinksOver-under refrigerators Cherry cabinetry Hardwood & Pergo floors

Geometric sheet vinyl flooringCeramic countersTub/shower combination with porcelain tile surrounds Mirrored sink cabinetsVanity/pedestal sinksshower curtains

Hardwood & Pergo floorsWalk-in closetsAluminum blinds


LOCATION: 620 EDDY STREET, SAN FRANCISCO, CA 94109

Financial Overview

Sale Price $7,250,000Down Payment $2,900,000

Number of Units 35

Price/Unit $207,143

*Gross Square Feet 17,546

Price/Square Foot $413

CAP Rate-Current 4.51%

CAP Rate-Pro Forma 7.09%

GRM-Current 12.34

GRM-Pro Forma 9.28

Year Built 1910

Lot Size 6,298

ANNUAL GROSS INCOMEFINANCIAL SUMMARY

Loan Amount $4,350,000

Loan Type Proposed New

Interest Rate 4.45%

Program 3 Year Interest Only

DCR 1.69

Loan to Value 60%

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

Efficiency/1 Bath 4 $998-$1,600 $5,359 $1,600 $6,400

Studio/1 Bath 26 $604-$1,732 $35,480 $1,725 $44,850

1 Bedroom/1 Bath 5 $797-$2,141 $6,888 $2,495 $12,475

Total 35 Total Monthly Income for Units $47,726 $63,725

SCHEDULED INCOME

Current Market

Gross Potential Income $587,506 $781,291

Gross Potential Rent $572,715 $764,700

Vacancy (3.5%) $20,045 $26,765

AGI $567,461 $754,526

Expenses $240,276 $240,276

NOI $327,185 $514,250

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

Property Taxes $84,992 $2,428 35% $84,992 $2,428 35%

Insurance $12,124 $346 5% $12,124 $346 5%

Workers Comp Insurance $1,858 $53 1% $1,858 $53 1%

Building Systems $11,472 $328 5% $11,472 $328 5%

Repairs & Maintenance $26,250 $750 11% $26,250 $750 11%

Onsite Personnel $22,103 $632 9% $22,103 $632 9%

Administrative Services $15,946 $456 7% $15,946 $456 7%

Vendor Services $11,184 $320 5% $11,184 $320 5%

Telephone $653 $19 0% $653 $19 0%

Electricity $3,073 $88 1% $3,073 $88 1%

Gas $12,717 $363 5% $12,717 $363 5%

Scavenger/Refuse/Recycling $12,965 $370 5% $12,965 $370 5%

Water & Sewer $23,843 $681 10% $23,843 $681 10%

License, Fees, Tax Authority $1,098 $31 0% $1,098 $31 0%

Total Operating Expenses $240,276 $6,865 100% $240,276 $6,865 100%

Current Market

Less Debt Service $193,575 $193,575

Cash Flow $133,610 $320,675

Cash on Cash Return 4.61% 11.06%

Expenses as % of Gross 41% 31%

Expenses per Unit $6,865 $6,865

FINANCING

ANNUAL OPERATING EXPENSES

First Foundation Bank- Quote: April 2018 (loan information is time sensitive & subject to change)

CASH FLOW AFTER DEBT SERVICE


RENT ROLL

Financial Overview

NOTESMarket rents based on highest current rent achieved for the unit

Laundry projected at Current

Storage projected at $50 per space

Other Income - includes miscellaneous, rent fee, leasing fee, vacancycleaning, vacancy repair & bill back income

Unit Unit Type Rent Market Rent Move In Date

A Studio $1,350.00 $1,725 5/1/2017

1 (Mgr) 1 Bedroom $1,250.00 $2,495 12/1/2013

2 1 Bedroom $1,277.91 $2,495 8/29/2004

3 Efficiency $1,600.00 $1,600 Vacant

4 Studio $1,060.49 $1,725 6/1/2009

5 Studio $1,595.00 $1,725 5/22/2017

6 Studio $1,595.00 $1,725 5/3/2017

7 Studio $1,595.00 $1,725 6/4/2017

8 Studio $1,595.00 $1,725 7/21/2017

9 Studio $1,656.17 $1,725 6/1/2015

20 Studio $1,195.58 $1,725 9/1/2007

21 1 Bedroom $1,421.90 $2,495 4/23/2010

22 Studio $1,595.00 $1,725 10/1/2017

23 Efficiency $1,013.53 $1,600 1/10/2011

24 Studio $635.91 $1,725 6/1/1997

25 Studio $1,725.00 $1,725 Vacant

26 Studio $1,595.00 $1,725 9/1/2017

27 Studio $1,059.01 $1,725 4/1/2009

28 Studio $1,732.29 $1,725 9/17/2016

29 Studio $1,361.20 $1,725 11/1/2012

30 Studio $1,406.05 $1,725 4/10/2013

UNITSEfficiency - 4

Studio - 26

1 Bedroom - 5

Total - 35

Unit Unit Type Rent Storage Market Rent Move In Date

31 1 Bedroom $2,141.09 $2,495 11/1/2016

32 Studio $654.97 $1,725 12/1/1994

33 Efficiency $1,370.22 $1,600 10/27/2014

34 Studio $1,595.00 $1,725 11/6/2017

35 Studio $1,661.57 $1,725 3/20/2015

36 Studio $1,732.29 $1,725 6/1/2016

37 Studio $603.70 $1,725 10/1/1993

38 Studio $948.88 included $1,725 10/1/2009

39 Studio $1,170.86 included $1,725 5/25/2010

40 Studio $1,063.93 included $1,725 8/29/2004

41 1 Bedroom $796.94 $2,495 11/18/1996

42 Studio $1,595.00 $1,725 7/10/2017

43 Efficiency $1,375.00 $1,600 11/1/2017

44 Studio $1,701.80 $1,725 4/1/2016

Monthly Rent $47,726.29 $63,725

Laundry $528 $528

3 Storage spaces $0 $150

Pet Rental Fee $62 $62

Water Passthrough $85 $85

Other Income $558 $558

Monthly Income $48,959 $65,108

Annual Income $587,506 $781,291 33% Upside


Property Photographs


Floor Plans

STUDIO

Wall Thickness Assumed


Corridor

Elev

3

12'-4"

13'-3"

FLOOR PLAN

Survey Accuracy: +/- %0.15

Note: All dimensions shown are rounded to thenearest inch, for informational purposes only.All measurements are recorded to 1/8" accuracyas documented in the final CAD drawing supplied.

(As Measured: April 2018)

FIRST FLOORSUITE 3

620 EDDY STSAN FRANCISCO, CA

TEL: (888) 393-6655FILE: 18-162

LASERTECH® is a registered US trademark of Lasertech® Floorplans Ltd.Copyright 1998 Lasertech® Floorplans Ltd., All Rights Reserved

EDDY STREET


Floor Plans

KITCHEN

BEDROOM



Corridor

25

7'-5"

12'-6"

10'-0"

FLOOR PLAN




TEL: (888) 393-6655FILE: 18-162



SECOND FLOORSUITE 25


Floor Plans

BEDROOM

BEDROOM

KITCHEN


Corridor

31


Elev

11'-5"

12'-3"

9'-1"

13'-10"

12'-5"

15'-5"

FLOOR PLAN




TEL: (888) 393-6655FILE: 18-162



THIRD FLOORSUITE 31


Floor Plans

UP UP

DN

UP

Wall ThicknessAssumed

Wall ThicknessAssumed

Elev

Lower Roof Area

50'-5"48'-8"

28'-4"

30'-4"

FLOOR PLAN




TEL: (888) 393-6655FILE: 18-162


*TOTAL ROOF AREA:4921 s.f.

*Measured Area represents the footprint of the floor, and is usedsolely for billing purposes. It is NOT to be used for leasing purposes.


FOURTH FLOORLOWER ROOF

*Upper Roof Area:2783 s.f.

*Lower Roof Area:2138 s.f.


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.

Van Ness

Franklin

Gough

Franklin

Gough

Golden Gate

McAllister

Grove

Fulton

Hayes

Fell

Oak

Page

Willow

Larkin

Ahern

Post

Geary

Powell

Sansome

Battery

Front

Davis

Drum

m

Pacific

Jackson

Washington

Clay

Washington

Clay

Sacramento

California

Pine

BushSutter

nPolk

Vallejo Broadway

Kearny

Montgom

ery

Laguna

LagunaBuchanan

Wbster

Octavia

Farrell

Ellis

Eddy

Turk

Leavenworth

Jones

Market

O’

Jones

Taylor

Mason

Stockton

Kearny

Mason

Howard

Howard

SteuartSpearMain

Beale

Fremont

Delancey

Hawthorne1st

2nd

3rd

4th

4th

Emb

arcadero

Folsom

Folsom

Harrison

Harrison

BryantBrannan

Brannan

Townsend

Townsend

King

Berry

drihT

Channel

Mi ssion Rock

Hyde

Mission

5th

6th

7th

8th

8th

9th

McCoppin

Gough

12th St

12th St

Polk

Van Ness

Division

10th

11th

15th

6th

Owens

AFr

anc o

is B

lvd

Duboce

14th

Lausatt

Haight

Birch

Bluxome

Baysi

de V

illage

Commercial

Hllis

a

Troy

(Broadway Tunnel)

rk

UnionSquare

MosconeCenter

Metreon

Museum ofModern Art

Centerfor the Arts

LafayettePark

Muni MetroChurch St

MuniMetroVanNess

BART/Muni MetroCivic Center

CaltrainDepot

PacificBellPark

BART/Muni MetroPowell St

BART/Muni MetroMontgomery St

BART/Muni MetroEmbarcadero

TransbayTransitTerminal

JustinHermanPlaza

FerryBuilding

ChinaBasin

CityHall

DaviesSymphonyHall

OperaHouse

CivicCenter

UNPlaza

St Mary ’sCathedral

JeffersonSquare

SouthPark

San FranciscoOaklandBayBridge

32

40

Zeum

US

101

US

101

280INTERSTATE

80INTERSTATE

620 Eddy St


Public Transportation

v

WITH IMMEDIATE ACCESS TO ONE OF THE NATION’S BEST PUBLIC TRANSIT SYSTEMSThe area around 620 Eddy 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. 620 Eddy 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.

O’Farrell @ Van Ness AvenueMcAllister @ Hyde Street MCAllister @ Polk StreetGolden Gate Ave @ Polk Street

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

Van Ness

Franklin

Gough

Franklin

Gough

Golden Gate

McAllister

Grove

Fulton

Hayes

Fell

Oak

Page

Willow

Larkin

Ahern

Post

Geary

Powell

Sansome

Battery

Front

Davis

Drum

m

Pacific

Jackson

Washington

Clay

Washington

Clay

Sacramento

California

Pine

BushSutter

nPolk

Vallejo Broadway

Kearny

Montgom

ery

Laguna

LagunaBuchanan

Wbster

Octavia

Farrell

Ellis

Eddy

Turk

Leavenworth

Jones

Market

O’

Jones

Taylor

Mason

Stockton

Kearny

Mason

Howard

Howard

SteuartSpearMain

Beale

Fremont

Delancey

Hawthorne1st

2nd

3rd

4th

4th

Emb

arcadero

Folsom

Folsom

Harrison

Harrison

BryantBrannan

Brannan

Townsend

Townsend

King

Berry

drihT

Channel

Mi ssion Rock

Hyde

Mission

5th

6th

7th

8th

8th

9th

McCoppin

Gough

12th St

12th St

Polk

Van Ness

Division

10th

11th

15th

6th

Owens

AFr

anc o

is B

lvd

Duboce

14th

Lausatt

Haight

Birch

Bluxome

Baysi

de V

illage

Commercial

Hllis

a

Troy

(Broadway Tunnel)

rk

UnionSquare

MosconeCenter

Metreon

Museum ofModern Art

Centerfor the Arts

LafayettePark

Muni MetroChurch St

MuniMetroVanNess


CaltrainDepot

PacificBellPark


BART/Muni MetroMontgomery St

BART/Muni MetroEmbarcadero

TransbayTransitTerminal

JustinHermanPlaza

FerryBuilding

ChinaBasin

CityHall

DaviesSymphonyHall

OperaHouse

CivicCenter

UNPlaza

St Mary ’sCathedral

JeffersonSquare

SouthPark

San FranciscoOaklandBayBridge

32

40

Zeum

US

101

US

101

280INTERSTATE

80INTERSTATE

v

v

v

v

v

v

620 Eddy St


Franklin

Gough

Golden Gate

McAllister

Grove

FultonGrove

Hayes

Fell

Oak

Page

Turk

Willow

Larkin

Opal

Tulip

Decker

Heron

Gordon

Homer

Brush

AhernCleveland

Post Geary

Powell

Sansome

Battery

Was

Clay

Sacramento

California

Pine

BushSutter

Montgom

ery

Laguna

Webster

Fillmore

Fillmore

Steiner

Steiner

Pierc

Scot

Steiner

Pierce

Farrell

Ellis

Eddy

Turk

Leavenworth

Jones

Market

O’

nes

Taylor

Mason

Stockton

arny

Mason

Howard

4th

Folsom

Harrison

Bryant

Brannan

Hyde

Mission

5th

6th

7th8th

9thG

12th St

Polk

Van Ness

Hickory

Lily

Rose

Haight

Ivy

Ivy

Birch

Linden

Hemlock

Cleary Ct

Willow

Larch

Cedar

Myrtle

Olive

Fern

Austin

L

Tandang

Mabini

Riz

Bonifaci

New Montgomery

Campton

Maiden Lane

Hangah

Burritt

Chelsea

Chatham

Quincy

Belden

Treasury

PetrarchCentury

TrinityLick

Vermehr

Mark

Elwood

Sec Pacific

Spring

Leidesdorff

Annie

E

Ant

Minna

Jessie

Aldrich

Masse

t

K

Stevenson

oda

JoicePratt

Sabin

Brooklyn

Sproule

Vine

Kimball

Torrens

d tG

oldenLeroy

Lysette

Helen

Touchard

llerM

les

Freeman

Dawso

Nob H

ill

Nob Hill

Malvina

Ewer

MulfordEmma

Vinton

Tillman

FellaHooker

AnsonDelta

D.H

amm

ett

Avery

CottageRow

Hollis

Buchanan

BanneckerInca

Cran

BertieM

inor

LottieBennet

QuickstepGalilee

O'Farrell

Byington

Zampa

Orben

Wilmot

erine

Yorke

S tarr K ing

Stevenson

Cosmo

Hobart

Colin AdelaideI. Duncan Derby

SteveloeShannon

Ophir

Agate

Harlem

Meacham

Ada

Amity

Dale

Wagner

Cohen

Breen

Dodge

Cyril Magnin

Jessie

Tehama

Clementina

Minna

Natoma

Mary

Mint

Tehama

Sumner

JuliaLaskie

Falmouth

Gallagher

Rausch

Langton Sherman

Berwick

Chesley

Hallam

Rodgers

Col Square

RussMoss

Morris

MerlinOak Grove

Lucerne

Hulbert

Holland

FargoBoardm

anGilbert

Gilbert

Clementina

Ringold

ClaraShipley

Minna

Stevenson

Jessie

dan

Natoma

Washburn

Grace

Dore

Brad

Lafayettetevenso

nColto

n Conve

Eva

Butte

DecaturKate

Pleasant

Troy

Acorn

Eureka

Panton

Lech Walesa

Redwood Redwood

Ash

Elm

DanielBurnham

(Stockton Tunnel)

Chase

HarlanHardie

ClaudeRobertKirk

Colusa

StGeorge

Elm

UnionSquare

MosconeCenter

Metreon

Museum ofModern Art

Centerfor the Arts

LafayettePark

KimbellPlayground

HamiltonRecreationCenter

AltaPlazaPark

AlamoSquare Muni

MetroVanNess



BART/Muni MetroMontgomery

JapanCenter

CityHall

DaviesSymphonyHall

OperaHouse

CivicCenter

UNPlaza

St Mary’sCathedral

JeffersonSquare

Zeum

US

101

k

b

p

t

Regional Map

Location Map

620 Eddy St

620 Eddy St


CONFIDENTIALITY & DISCLAIMER STATEMENTThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 620 Eddy Street San Francisco, CA 94109. 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 620 Eddy 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 620 Eddy 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 620 Eddy 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

620 Eddy 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

offering memorandum · financial overview 4-5 property photographs 6-9 floor plans 10-13 tech...

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