381 Turk Street - LoopNet · 381 T STT Offering Memorandum - pg. 3. Offering Summary - Overview....

381 TURK STREET Offering Memorandum - pg. 1

Mult i fami ly Investment Opportunity | Tenderlo in - San Francisco, CA

Offering Memorandum381 Turk Street

Showing Schedule

James Devincenti | lic 00951916 +1 415 288 7848 | [email protected]

Brad Lagomarsino | lic 01058500 +1 415 288 7847 | [email protected]

www.theDLTeam.com

Colliers International 101 2nd Street, 11th Floor San Francisco, CA 94105

Table of ContentsOffering Summary ................................3-4

Financial Overview ...............................5-6

Property Photographs ..........................7-11

Floor Plans ............................................12-15

Technology Corridor .............................16

Public Transportation ...........................17

Location Map & Aerial ..........................18-19

• Tours by Appointment


Offering Summary - Overview381 Turk Street is situated between Leavenworth & Hyde Streets in the Mid-Market/Tenderloin neighborhood of San Francisco. Restaurant gems-ethnic offerings unlike any other place in the city-are sprinkled throughout this area. Union Square, Civic Center, Market Street, Van Ness Avenue, and the eclectic allure of Polk Street shops and restaurants are all within walking distance. Its core location provides access to abundant transit lines, including Bay Area Rapid Transit (BART) and San Francisco Muni, allowing residents to get anywhere in the city and other parts of the Bay Area. In addition, the Mid-Market corridor near 381 Turk Street has seen remarkable ongoing job growth thanks in part to a City tax break that has allowed an influx of technology companies.

381 Turk Street built in 1915 is a 3-story apartment building constructed of steel with a concrete foundation. The prop-erty has undergone significant capital improvements which include new interior paint, new carpeting, renovated lobby and refurbished mailboxes, new interior light fixtures, new front gate and intercom system, elevator cab rehab and roof repair, new security cameras and a new common area laundry room. A complete retrofit by the prior ownership complies with the current soft story ordinance. The 32-unit property consists of 29-studios and 3-one bedroom units of which 7 of these units have recently been remodeled.

381 Turk Street presents a rare opportunity to acquire a building priced at a significant discount to replacement cost (in excess of $900/Sq.Ft). Additionally, with a loss to lease of 20% further improvements and conversions provide a proven path to renovation upside and return-on-investment.


Property InformationAddress: 381 Turk Street, San Francisco (cross streets:

Leavenworth & Hyde Streets)District: Tenderloin

Property Type: Apartment building

APN: 0345-012C

Building Square Feet: 13,957 square feet

Lot Size: 6,146 square feet

Floors: 3 floors over basement

Constructed: 1915 (per tax record)

Zoning: RC-4

Property InformationUnit Mix: 29 -Studios & 3-One Bedroom units

Note: Apartment descriptions depict a renovated unit

Kitchens: Gas ranges with oven

Freezer over refrigerator

Large ceramic tile flooring

Decorative back-splashWood cabinetry (Ample Cabinets /Counters/Drawers plus Storage)Quartz countertops

Dome flush mount lighting

Bathrooms: Large ceramic tiled floors and surrounds

Cabinet sinks / modern fixtures

Storage Mirror

Tub-shower Combinations & shower only

Window ventilation

Flush mount lighting

Bedrooms: Ample size bedroom areas

Laminate / hardwood wood -floors

Large windows

Ample closet space

Flush mount lighting

Other: UMB retrofit completedCommunal barbecue and bench sitting in rear yardUnimproved basement area (south half of building)

Building SystemsFoundation: Concrete foundation

Structure: Masonry building

Façade: Brick fascia

Windows: Wood-frame windows

Roof System Rolled Composite System

Electrical Service: 200 Amp/individually metered

Gas Service: Separately metered

Circuit Breakers: Circuit breakers are located at main service and in renovated units

Water Service: Separately metered

Fire Protection System: In-unit detectors / sprinkler system in basement and common area hallways/local fire alarm system Fire-lite MS-2 (Byington Electric)

Heat Source: Steam heat

Hot Water Heater: Raypak Hi/Delta system

Hot Water Tank: 200 gallon AO smith holding tank

Steam Heat: Peerless boiler

Plumbing: Mixture of copper & galvanized

Common Area Lights: Timer system

Fire Escapes: North and south side of building

Common AreasDoor Entry System: Linear Intercom system

Security: Gated entry Front Landing: Hexagon tiles/marble walls & wood flooring in

lobby and main stairsLobby Lighting: Decorative modern lighting

Mailboxes: Lobby (east wall/south wall)

Unit Access: Walk-up building / elevator access

Elevator: DC elevator system

Landing Areas/Hallways: Carpeted flooring system

Garbage: In basement area (active chute system)

Laundry: 2-washers/2-dryers (laundry room in basement)

Offering Summary - Property Details


Annual Operating Expenses Current Proforma Real Estate Taxes $83,155 $83,155

Special Taxes & Assessments $1,247 $1,247

Insurance $8,322 $8,322

*Off-Site Management $25,616 $30,707

*On-Site Management $12,000 $12,000

Repairs & Maintenance $9,120 $9,120

Pest Control $2,982 $2,982

Elevator $1,233 $1,233

Cleaning Contract $11,125 $11,125

Safety & Security $6,603 $6,603

Fire Requirements $880 $880

PG&E $20,598 $20,598

Water & Sewer $22,170 $22,170

Telephone $4,629 $4,629

Scavenger/Recycling/Trash $21,732 $21,732

Total Operating Expenses $231,412 $236,502 *Expenses are estimated: Off site management at 4% of gross / On-site Mgmt rent credit at $1000 per month. Other Expenses based on trailing April 2017 - March 2018.

Financial Overview381 Turk Street, San Francisco, CA 94102

Financial SummarySale Price $7,150,000

Down Payment $2,860,000

Number of Units 32

Price/Unit $223,438

Gross Square Feet 13,957

Price/Square Foot $512

CAP Rate-Current 5.42%

CAP Rate-Pro Forma 7.07%

GRM-Current 11.16

GRM-Pro Forma 9.31

Year Built 1915

Lot Size 6,146

Annual Gross Income Current Proforma Gross Potential Income $640,407 $767,667

Gross Rental Income $614,820 $742,080

Vacancy (3.5%) $21,519 $25,973

AGI $618,888 $741,694

Expenses $231,412 $236,502

NOI $387,476 $505,192

FinancingLoan Amount $4,290,000

Loan Type Proposed New

Interest Rate 3.85%

Program 5 Year Interest Only

Loan to Value 60%

Loan Quote: First Republic Bank (buyer to have banking relations with First Republic Bank)

Cash Flow After Debt Service Current ProformaLess Debt Service $165,165 $165,165

Cash Flow $222,311 $340,027

Cash on Cash Return 7.77% 11.89%

Expenses as % of Gross 36% 31%

Expenses per Unit $7,232 $7,391

6


Financial Overview381 Turk Street, San Francisco, CA 94102Rent Roll

Unit No. Unit Type Current Rent Pet Rent Market Rent Move In Date100 1 Bedroom (Mgr) $0.00 $2,295 7/16/2018101 Studio $1,529.27 $1,895 11/01/2013102 Studio $1,895.00 $1,895 Vacant103 Studio $1,895.00 $1,895 Vacant104 Studio $1,895.00 $1,895 Vacant105 Studio $1,895.00 $1,895 05/26/2018106 Studio $1,154.67 $1,895 07/01/2006107 Studio $1,553.00 $1,895 08/05/1999108 Studio $1,895.00 $1,895 Vacant109 Studio $1,051.48 $1,895 06/07/2011200 1 Bedroom $2,295.00 $2,295 Vacant201 Studio $1,029.50 $1,895 05/01/2011202 Studio $1,895.00 $1,895 Vacant203 Studio $1,089.01 $1,895 09/01/2010204 Studio $1,895.00 $1,895 8/26/2018205 Studio $1,480.15 $1,895 08/29/2013206 Studio $1,895.00 $1,895 Vacant207 Studio $1,553.00 $1,895 09/03/1997208 Studio $1,795.00 $1,895 06/01/2018209 Studio $1,795.00 $1,895 12/3/2018210 Studio $1,936.50 $1,895 08/09/2017300 1 Bedroom $2,370.00 75.00 $2,295 05/05/2018301 Studio $1,970.00 75.00 $1,895 04/24/2018302 Studio $1,151.74 $1,895 06/01/2006303 Studio $1,850.00 $1,895 8/10/2018304 Studio $1,895.00 $1,895 06/27/2018305 Studio $1,061.95 $1,895 11/18/2010306 Studio $1,771.19 $1,895 09/01/2016307 Studio $1,025.61 $1,895 12/31/2010308 Studio $1,553.00 $1,895 12/01/2006309 Studio $1,369.93 $1,895 07/26/2012310 Studio $1,795.00 $1,895 06/19/2018

$51,235.00 $150.00 $61,840.00Pet rent $150.00 $150.00

Bond Pass Through $236.67 $236.67Utility Reimbursement $1,324.17 $1,324.17

Laundry $421.42 $421.42Monthly Income $53,367.25 $63,972.25

Annual Income $640,407 $767,667 Upside 20%

NotesProjected rent based on recent rents

Laundry projected at current income

UnitsStudio - 29

1 Bedroom - 3

Total - 32


Floor Plans381 Turk Street, San Francisco, CA 94102

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Tech Corridor381 Turk Street, San Francisco, CA 94102

UBERSQUARE

TWITTER

DOLBY

YOTEL

YELP

SALES FORCE

BENCHMARK

SPOTIFY

WE WORKZENDESK

REDDIT

UNION SQUARE

RUNWAY

381 TURK STREET Located near San Francisco’s New Technology Economy.Leaders in the technology economy paved the way for the urban renaissance of San Francisco’s Mid-Market district. 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. Consequently, the submarket has experienced strong rental demand from the growing labor base of young professionals and students who desire to live within walking distance to their offices.

381 TURK


Public Transportation381 Turk Street, San Francisco, CA 94102

With Immediate Access to One of the Nation’s Best Public Transit Systems

The area around 381 Turk Street offers an extensive transportation network which ensures superior regional access throughout San Francisco and the surrounding Bay Area. Access Across America -Transit 2017 ranked San Francisco second only to New York 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. 381 Turk 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 variety of San Francisco’s caravan of ‘Tech Shuttles’ transporting employees to companies such as Google, Genentech, Facebook, and Apple employees from their homes in San Francisco to their job centers in Silicon Valley.

4328 91

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Subject Property381 Turk St

Bart & Muni Metro

VAN NESS AVE

MACALLISTER STREET

LARKIN STREET

MARKET STREET

GOLDEN GATE TRANSIT (to Marin - North Bay)

GEARY RAPID (to the Peninsula and

South Bay)

CORPORATE BUS LINE (to the Peninsula and South Bay)

38R

31 19

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Location381 Turk Street, San Francisco, CA 94102

N




Confidentiality & Disclaimer StatementThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 381 Turk 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 381 Turk 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 381 Turk 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 381 Turk 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 Property 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 Map381 Turk Street, San Francisco, CA 94102


www.theDLTeam.com

Offering Memorandum381 Turk Street

Mult i fami ly Investment Opportunity | Tenderlo in - San Francisco, CA

James Devincenti | lic 00951916+1 415 288 7848 | [email protected]

Brad Lagomarsino | lic 01058500+1 415 288 7847 | [email protected]

381 Turk Street - LoopNet · 381 T STT Offering Memorandum - pg. 3. Offering Summary - Overview....

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Transcript of 381 Turk Street - LoopNet · 381 T STT Offering Memorandum - pg. 3. Offering Summary - Overview....