PRESENTING FOR SALE Sheldon Hotel 62 SRO Units & 3 Retail Stores Union Square West

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1 PRESENTING FOR SALE Sheldon Hotel 62 SRO Units & 3 Retail Stores Union Square West 629 Post Street, San Francisco, CA Barry Bram, Principal, CCIM Ph: / Fax: bbram@tricommercial.com / BRE:

2 PROPERTY PROFILE 629 Post Street, San Francisco, CA 629 Post Street is a 62 unit single room occupancy property with 3 commercial units - it presents an opportunity to purchase for the first time on the market in several decades, a classic mixed use property located just two blocks from Union Square, between Jones and Taylor, near shopping, theatres and restaurants as well as many art,language and other vocational schools. The property was constructed in 1925 and is brick and steel frame; It was sprinklered in The building uses radiant heating and has a master meter for PGE and a 350 gallon general use hot water storage tank. The roof received new bituthene layering in There is on-site laundry for general housekeeping,only. PROPERTY SUMMARY: Address: 629 Post Street, San Francisco, CA Including Retail Stores Post Street Price: $17,000,000 Cap Rate: 4.70% (based on pro forma) Price Per Unit: $252,000 (after deduction for value of retail spaces) APN: Total Lot Area: ±3,123 square feet, accessible from both Post Street and Isadora Duncan Lane (aka: Adelaide Place) The property includes 62 single resident occupancy units (SROs) all with full bathrooms (2/3 of which have bath tubs and showers,the other 1/3 with stall showers) and 3 retail stores along Post Street. In the rear of the property, there are two garage entrances along Isadora Duncan Lane (aka Adelaide Place) providing several car parking spaces in each. The residential units range in size from small,medium and large,with four of each sized units on each of the upper 5 floors and an additional two medium sized units a few steps above the ground floor. There is a small common kitchen and an office on the same level. On the entry level,there is a gracious lobby,reception desk, elevator and curving open stairway leading to the upper floors. Facing Post Street are three retail stores,each with their own entry; La Post-Dry Cleaning, Infinite- Clothing Boutique, and Asaka-Antiques. There are no tourist or single night rental licenses; the hotel currently offers weekly and monthly rentals with free internet,tv,mini-fridge and weekly housekeeping services. Total Existing Building Area: ±18,056 square feet Historic Status: A-Historic Resource Present (See San Francisco Preservation Bulletin No. 16) Zoning District: RC-4, Residential - Commercial High Density Special Use District: Height Limit: Year Built: North of Market, Residential 1 Fringe Financial Service R&D 80-T-130-T 1926-Brick and steel frame construction. Not on San Francisco city UMB list. Located on Post Street Between Taylor and Mason

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4 PROPERTY HIGHLIGHTS: Close to Union Square Near shopping & restaurants 62 units Single Room Occupancy Three retail stores Parking garages on Isadora Duncan Lane All units with full bathroom Vacancies allow for new owner flexibility All rooms furnished, TV, mini-fridge PROPERTY FEATURES: Building Size: ±18,056 Square Feet (S. F. Prop. Info) Lot Size: ±3,123 Square Feet Zoning: RC-4; Residential Commercial; High Density Parcel Number: Year Built: 1925 Construction: Brick and Steel Frame-not on UMB list Roof: Torch-down Bituthene (2014) Stories: 6 Stories

5 Pine St Mason St Powell St Bush St Sutter St 629 POST STREET OLYMPIC CLUB Post St Taylor St Geary St Market St Eddy St Turk St

6 INCOME & EXPENSES PROFORMA 629 Post Street, San Francisco, CA 64 Unit SRO + Retail 62 INCOME & EXPENSES PRO-FORMA MARKET Scheduled Annual Gross Income (See Proforma Rent Roll) Rental Occupancy $1,339,524 Retail Spaces $86,640 Garage Spaces $28,800 Scheduled Annual Gross Income $1,454,964 Less Vacancy (Estimated@ 12% of Scheduled Annual Gross Income) 10% -$145,496 Adjusted Scheduled Annual Gross Income $1,309,468 ESTIMATED ANNUAL EXPENSES MARKET Property Taxes (Estimated@ % of $17m Sales Price) $200,464 Special Tax Assessments $22,338 Insurance 1.5% $20,093 Gas & Electric $55,000 Water & Sewage $45,000 Garbage $24,000 Telephone $1,850 Resident Manager - Salary, Taxes, Rent Credit, & Benefits $42,000 Pest Control $3,500 Property Management 5% of Adjusted Gross Income) 5% $65,473 Repairs & Maintenance (Estimated@ $500 per unit) $500 $31,000 Estimated Annual Operating Expenses 39.00% $510,718 Estimated Net Operating Income $798,749

7 SHELDON HOTEL - RENT ROLL / PROFORMA LOCATION TYPE UNIT (ALL WITH FULL BATHROOMS) DESCRIPTION NO. OF UNITS PROFORMA MONTHLY PER UNIT PROFORMA MONTHLY TOTAL PROFORMA ANNUAL Ground 1BR manager / MEDIUM 1 $2,000 $2,000 $24,000 Ground 1BR storage $2,000 $2,000 $24,000 Ground 1BR Office $2,000 $2,000 $24,000 Ground 1BR VACANT / MEDIUM 1 $2,000 $2,000 $24,000 FL 2 1BR SMALL UNIT Perm* 2 $500 $1,000 $12,000 FL 2 1BR MEDIUM UNIT Perm* 2 $600 $1,200 $14,400 FL 2 1BR LARGE UNIT Perm* 2 $700 $1,400 $16,800 FL 2 1BR SMALL UNIT 2 $1,800 $3,600 $43,200 FL 2 1BR MEDIUM UNIT 2 $2,000 $4,000 $48,000 FL 2 1BR LARGE UNIT 2 $2,200 $4,400 $52,800 FL2 1BR SMALL UNIT/ L. GAMACHE 1 $587 $587 $7,044 FL 3 1BR SMALL UNIT/ P. GARRARD 1 $588 $588 $7,056 FL 3 1BR SMALL UNIT 2 $1,800 $3,600 $43,200 FL 3 1BR MEDIUM UNIT 4 $2,000 $8,000 $96,000 FL 3 1BR LARGE UNIT 4 $2,200 $8,800 $105,600 FL 4 1BR SMALL UNIT 4 $1,800 $7,200 $86,400 FL4 1BR MEDIUM/ D. MCGEE 1 $675 $675 $8,100 FL 4 1BR MEDIUM UNIT 3 $2,000 $6,000 $72,000 FL4 1BR LARGE/ B. STAFFORD 1 $972 $972 $11,664 FL 4 1BR LARGE UNIT 3 $2,200 $6,600 $79,200 FL 5 1BR SMALL UNIT 4 $1,800 $7,200 $86,400 FL 5 1BR MEDIUM UNIT 4 $2,000 $8,000 $96,000 FL5 1BR LARGE/ R. WALKER 1 $648 $648 $7,776 FL 5 1BR LARGE UNIT 3 $2,200 $6,600 $79,200 FL 6 1BR SMALL/ H.M. LIU 1 $1,650 $1,650 $19,800 FL 6 1BR SMALL UNIT 3 $1,800 $5,400 $64,800 FL6 1BR MEDIUM/ R. MORENO 1 $2,032 $2,032 $24,384 FL6 1BR MEDIUM/ S. KRUGER 1 $675 $675 $8,100 FL6 2BR MEDIUM/ C. WU 1 $2,000 $2,000 $24,000 FL 6 2BR MEDIUM UNIT 1 $2,000 $2,000 $24,000 FL 6 1BR LARGE UNIT 4 $2,200 $8,800 $105,600 SUBTOTAL 62 $111,627 $1,339,524 Ground kitchen shared kitchen 1 $0 $0 $0 625 Post Retail La Post Cleaners (exp 06/30/20) 1 $4,000 $4,000 $48, Post Retail Inifinite SF (exp 09/31/17) 1 $1,800 $1,800 $21, Post Retail Asaka Fine Arts (mo/mo) 1 $1,420 $1,420 $17,040 GARAGE SUBTOTAL COMM'L TOTAL 4 STALLS EACH $300 ea. 8 $2,400 $2,400 $28,800 $9,620 $115,440 $121,247 $1,454,964 Proforma rental amounts reflect asking rents from the website

8 RETAIL STORE 1 Asaka Fine Arts 633 Post St San Francisco, CA Asaka Fine Arts is a privately held company in San Francisco and is a single location business. Categorized under Art Galleries and Dealers, Asaka was established in 1990 and incorporated in California.

9 RETAIL STORE 2 La Post Cleaners 625 Post Street San Francisco, California (No dry cleaning on site)

10 RETAIL STORE 3 Infinite SF 627 Post Street San Francisco, California Infinite SF opened in downtown San Francisco in As a lifestyle boutique, Infinite SF has a focus on quality menswear with selection of graphic t-shirts, cut & sew pieces, fleece, outerwear and more. A one of a kind store, our brands and exclusive gear is available online. Infinite SF represents the street culture and works with a community of artists and creatives. Collaborations happen year-round, with art shows and pop-up events, creating exclusive product.

11 Neighborhood...Could be re-named Union Square West 629 Post Street, San Francisco, CA According to an article by Tomikka Anderson in the San Francisco Chronicle in October of 2016, The Tenderloin may soon be the shopping destination for San Franciscans and tourists alike under the new name: Union Square West. According to KPIX, a commercial real estate firm which studies the changing market, has reported that major retailers such as West Elm, Ralph Lauren, Topshop and The Container Store have all expressed interest in leaving their current Union Square location for cheaper rent. The prime area of choice for moving their business is the Tenderloin. Although this may appear to be good news for an area that has long been neglected, it is troubling for some business owners and residents who currently live there. I think there s been a long history of the Tenderloin being a welcome area for people that don t fit into society s main stream, Katie Conry of the Tenderloin Museum told KPIX. With plans in the works for Union Square West, many fear they will be forced out due to rent increases and the neighborhood will eventually lose its identity. The new 16 square-block shopping district would be located between Mason, Sutter, Jones, and Market Street. (Map of this area to follow). A new area is taking shape, bridging the gap between the newest trade area in San Francisco, Mid-Market, with the gritty, up-and-coming Tenderloin, and it has potential to be one of the hottest retail locations in San Francisco, according to the commercial real estate report.

12 BUSH STREET 629 POST STREET OLYMPIC CLUB POST STREET POWELL STREET TAYLOR STREET MASON STREET MARKET STREET TURK STREET

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18 PARCEL MAP

19 DEMOGRAPHICS REPORT 1 MILE 3 MILE 5 MILE Population Estimated Population (2016) 154, , ,622 Estimated Households (2016) 86, , ,484 Income Estimated Average Household Income (2016) $162,601 $163,003 $141,475 Estimated Median Household Income (2016) $127,750 $125,492 $106,384 Estimated Per capita Income (2016) $95,670 $93,255 $77,636 Age Median Age 19 Years or Less 9.7% 10% 10.2% Median Age 20 to 64 Years 75.8% 74% 70.6% Median Age 65 Years or Older 18.21% 13.93% 14.92% Marital Status (2016) Marital Status (2016) Married 17,381 52,723 95,207 Marital Status (2016) Married No Children 12,927 35,739 60,692 Marital Status (2016) Married w/children 4,454 16,984 34,515 Educational Attainment (2016) College Degree or Higher 15.22% 22.44% 20.71% Household Income Distribution (2016) HH Income $200,000 or More 10.60% 17.73% 17.25% HH Income $150,000 to $199, % 9.42% 9.66% HH Income $125,000 to $149, % 8.01% 8.13% HH Income $100,000 to $124, % 10.03% 10.36% Daytime Demographics (2016) Professionals 180, , ,154

20 DISCLAIMER AND CONFIDENTIALITY The Confidential Material and Information in this Offering Memorandum (collectively Information ) have been obtained from sources deemed reliable. This Information is for your use only in determining your interest in pursuing negotiations to potentially acquire 629 Post Street, San Francisco, CA ( Property ) and owned by Seller ( Seller ). It contains selected summary information pertaining to the Property, and has been prepared by the Seller and Seller s authorized consultant. TRI Commercial Real Estate Services, Inc. ( Exclusive Listing Broker ) has not made any investigation and does not warrant or represent the accuracy of such information. Although the information contained herein has been carefully compiled, the Seller makes no guarantee, representation or warranty of the accuracy or completeness of any information. Buyer shall only rely on its own independent estimates of construction costs and proforma income and expenses before any decision is made to invest in the Property. This Confidential Material is for informational use only and under no circumstances whatsoever is deemed to be a contract, memorandum, or any other form of binding commitment. The Seller is selling the Property in AS IS and WHERE IS condition with All FAULTS in the broadest sense of that term, without any representations or warranties. Buyer, or Buyer s agent, shall be given a reasonable opportunity to inspect and investigate the Property and its improvements. Receipt of this Information by Buyer does not entitle Buyer to rely on the Seller or its employees, contractors or agents, for any purpose, including, without limitations (1) The adequacy and physical condition of the Property; (2) the suitability of the Property for any particular purpose; (3) the condition of soils, geology and hydrology; (4) the existence or adequacy of utilities serving the Property; (5) the zoning or legal status of the Property; (6) the compliance of the Property with any environmental protection, pollution or land-use laws, rules, regulations, orders or requirements; and (7) the condition of title and the nature and status of any condition, covenant, encumbrance, license, lease, lien, restriction, reservation, right of redemption, right-of-way and any other matter affecting title. The Seller reserves the right to withdraw the offering of the Property without notice, to reject all offers, and to accept any offer without regard to the relative price and terms of any other offer. Neither the prospective Buyer nor Seller shall be bound until full execution of the contract of purchase and sale, which contract shall supersede prior discussions and constitute the sole agreement of the parties. Prospective Buyers shall be responsible for their costs and expenses of investigating the Property without reimbursement. Buyer shall submit any expressions of interest and/or offers to purchase the Property to the Seller, only through Seller s exclusive listing broker, TRI Commercial Real Estate Services, Inc. By acknowledgment of your receipt of this Information, you agree that the information and its contents are confidential; that you will hold and treat it in the strictest of confidence; that you will not directly disclose or permit anyone to disclose this presentation or its contents to any other person, firm or entity without prior written authorization of the Seller; and that you will not use or permit to be used this Information or its contents in any manner detrimental to the interest of Seller. Photocopying or duplication is strictly prohibited. If you do not wish to pursue negotiations leading to this acquisition, kindly return this Information to Seller s exclusive listing broker, TRI Commercial Real Estate Services, Inc.

21 94109 Contact: Barry Bram Principal, CCIM Ph: Fax: BRE: TRI Commercial Real Estate Services 100 Pine Street, Suite 1000 San Francisco, CA 94111