1845 Franklin Street San Francisco, California. Offering Memorandum.

Transcription

1 Offering Memorandum 1845 Franklin Street San Francisco, California BRAD LAGOMARSINO lic Senior Vice President direct brad.lago@colliers.com JAMES DEVINCENTI lic Senior Vice President direct j.d@colliers.com

2 1845 Franklin Street

3 TABLE OF CONTENTS Table of Contents I. Investment Highlights... 1 II. Financial Overview - Rent Roll III. Parking Diagram... 4 III. Financial Overview - Expenses and Cash Flow Analysis... 5 IV. Property Photographs V. Floor Plans VI. Maps & Aerial of Subject Property

4 INVESTMENT SUMMARY Investment Highlights PROPERTY DESCRIPTION Prestigious Pacific Heights Trophy Apartment Building Impeccably Maintained 1920 s Reinforced Concrete Building with Beautiful Architectural Detail Throughout. Attractive Variety of Large Floor Plans Consisting of Nine (9) Studios, Twenty (20) One Bedrooms & One (1) Four Bedroom Penthouse. Twenty Parking Spaces Centrally Located to Many Shops, Restaurants & Parks. Excellent Upside Potential in Rents. ABOUT 1845 FRANKLIN STREET Pacific Heights is one of the premier residential neighborhoods in the City. The area is defined by impeccably maintained apartment buildings, multi-million dollar mansions and gorgeous views. The subject property is a short walk to the shops and restaurants of Polk, Fillmore, and Union Streets. Located one block from Lafayette Park, the location provides superb access to the freeways, the Financial District, the Marina, Nob Hill, Russian Hill, Presidio, and Cow Hollow. These are but a few of the attributes that makes Pacific Heights a most desirable place to live Franklin Street resides on the southwest corner of Franklin and Clay Street in the heart of Pacific Heights. This iconic, trophy, apartment building was designed by famed San Francisco architect Herman C Baumann and was constructed in The Spanish influenced building contains thirty (30) apartment units comprising approximately 34,741 square feet (per city records). The reinforced concrete structure is distinguished by slightly projecting bays and ornate exterior detail at its entrance and cornice of the building. The lobby is extravagant in its elaborate wood, stucco and tile décor. The Franklin was constructed as a six-story over lobby level apartment building. The units are accessed by either modernized elevator or common area staircase Franklin incorporates 9-Studios, 20-one bedroom units and 1-four bedroom, penthouse apartment. There is interior and exterior parking which accommodates twenty automobiles. The apartments feature abundant natural light and handsome detail consistent with the era of construction. The units boast hardwood floors, barreled ceilings, eat-in kitchens, gas stoves, granite counters, dishwashers and cherry (and oak) cabinetry and ample closet areas. The Franklin is separately metered for both gas and electricity (smart metered). The Peerless boiler system provides steam heat to the apartments. Lochinvar heating system dispenses hot water to a Teledyne Laars 119 gallon storage tank. There is a well maintained tar & gravel roof-system in place. A basement laundry room contains two Coinmach washers and dryers for the tenant s convenience. For the investor or owner occupier, this property provides the opportunity to acquire a true pride of ownership property in Pacific Heights with spacious view units, beautiful architectural detail and tremendous income upside potential. P. 1 COLLIERS INTERNATIONAL OFFERING MEMORANDUM 1845 FRANKLIN STREET

5 PRICING & FINANCIAL ANALYSIS Financial Overview RENT ROLL Unit No. Unit Type Rent CIP Pet Rent Market Rent Move-In Date Bedroom $3, $3, Vacant Bedroom $1, $36.25 $3, /15/ Bedroom $2, $3, /1/ Studio $2, $2, /15/ Bedroom $ $3, /17/ Bedroom/Large $ $36.25 $3, /1/ Studio $1, $2, /29/ Bedroom $2, $3, /18/ Bedroom $2, $50.00 $3, /15/ Studio $1, $2, /1/ Bedroom $2, $3, /8/2011 *404 1 Bedroom/Large- Mgr $3, $3, Vacant 405 Studio $2, $75.00 $2, /22/ Bedroom $ $36.25 $3, /20/ Bedroom $ $3, /1/ Studio $ $2, /1/ Bedroom $2, $3, /1/ Bedroom/Large $ $36.25 $3, /1/ Studio $2, $2, /1/ Bedroom $3, $3, Vacant Bedroom $2, $3, /10/ Studio $1, $75.00 $2, /6/ Bedroom $2, $3, /8/ Bedroom/Large $ $3, /1/ Studio $1, $75.00 $2, /2/2011 **606 1 Bedroom $ $3, /1/ Bedroom/3Bath $6, $7, /1/ Bedroom/Large $ $36.25 $3, /1/ Studio $1, $2, /15/ Bedroom $2, $3, /21/2012 Residential Sub Total $60, $ $ $92, Capital Improvement Plan $ Pet Rent $ CoinMach Washer/Dryer $ $ /1/2008 Other Sub Total $ $ * Managers Unit to be delivered vacant at Close of Escrow **Tenant at Unit 606 has been served with a 1.21 notice raising rent from $ to $3, Rent Roll Continued on next page COLLIERS INTERNATIONAL P. 2

6 PRICING & FINANCIAL ANALYSIS Financial Overview RENT ROLL -CONTD. Parking Current Market Vacant Parking 1 $ $ Unit 503 Parking 2 (Tandem) $ $ Unit 503 Parking 2A (Tandem) $ $ Vacant Parking 3 (Tandem) $ $ Vacant Parking 4 (Tandem) $ $ Unit 702 Parking 5 (Tandem) $0.00 $ Unit 702 Parking 6 (Tandem) $0.00 $ Vacant Parking 7 (Tandem) $ $ Vacant Parking 8 (Tandem) $ $ Vacant Parking 9 (Tandem) $ $ Unit 704 Parking 10 $0.00 $ Vacant Parking 11 $ $ Vacant Parking 12 $ $ Unit 405 Parking 13 $ $ Vacant Parking 14 $ $ Unit 601 Parking 15 $ $ Unit 703 Parking 16 $ $ Unit 603 Parking 17(Outdoor) $ $ Unit 505 Parking 18 (Outdoor) $ $ Unit 202 Parking 19 (Outdoor) $0.00 $ Parking Sub Total $3, $5, Monthly Total $64, $98, Annual Total $776, $1,185, UNITS Studio 9 1 Bedroom 15 1 Bedroom/Large 5 4 Bedroom 1 Parking 20 NOTES Parking Projected at $300 for 8 Full spaces Parking Projected at $250 for 9 Tandem Spaces Parking Projected at $250 for 3 Outdoor spaces Laundry Projected at $15 per Unit Total of 9 Spaces to be delivered vacant COLLIERS INTERNATIONAL P. 3

7 SALES PARKING COMPARABLES DIAGRAM 1845 Franklin Street Garage Layout 2nd Floor Garage Outside Spaces 19 Unit Unit Unit Unit 703 Unit 601 Unit 506 Unit 405 Unit 201 *Delivered Vacant *Spaces delivered Vacant in June, 2013 * Garage Codes * *Delivered Vacant *2032 2A Unit 503 Unit *Delivered Vacant Front Door *Delivered Vacant *Delivered Vacant 5 6 Mail Room 10 Unit 704 Unit 702 Unit 702 Door to Building *Delivered Vacant *Delivered Vacant * *Delivered Vacant *Delivered Vacant 3 Clay Street Franklin Street COLLIERS INTERNATIONAL P. 4

8 PRICING & FINANCIAL ANALYSIS Financial Overview LOCATION 1845 Franklin Street San Francisco, CA ANNUAL OPERATING EXPENSES Expense Current Market Property Taxes $157, $157, Special Assessments $2, $2, Insurance $9, $9, Contract Services $3, $3, *Property Management Fee $23, $35, On-Site Management Fee $20, $20, Telephone $ $ Repairs & Maintenance $13, $13, Water & Sewer $15, $15, Garbage $18, $18, Gas & Electric $38, $38, Total Operating Expenses $302, $314, Gross Income $776, $1,185, Vacancy (1.5% of gross income) $11, $17, AGI $764, $1,167, Expenses $302, $314, Net Operating Income $462, $852, Debt Service $226,125 $226,125 Cash Flow $236,629 $626,684 Cash on Cash Return 3.51% 9.28% Expenses as % of Gross Income 39% 27% Expenses per Unit $10,074 $10,482 *Property Managment fee based on 3% of gross income. FINANCIAL SUMMARY Price $13,500,000 Down Payment $6,750,000 Number of Units 30 Price/Unit $450,000 Gross Square Feet 34,741 Price/Square Foot $389 CAP Rate - Current 3.43% CAP Rate - Pro Forma 6.32% GRM - Current GRM - Pro Forma Year Built 1926 Lot Size 8,190 FINANCING Loan Amount $6,750,000 Loan Type Proposed New Interest Rate 3.35% Program 3 Year IO Loan to Value 50% Debt Coverage Ratio 3.49% SCHEDULED INCOME Loan information is time sensitive and subject to change. Loan quote: JP Morgan Chase - May 2013 Unit Type # of Units Current Rents Monthly Income Market Rents Monthly Income Studio 9 $856-$2,295 $14,997 $2,295 $20,655 1 Bedroom 15 $722-$3,200 $31,511 $3,200 $48,000 1 Bedroom (Large) 5 $811-$3,350 $6,782 $3,350 $16,750 4 Bedroom 1 $6, $6,995 $7,500 $7,500 Total 30 $60,285 $92,905 COLLIERS INTERNATIONAL P. 5

9 PHOTOS & MAPS Property Photographs COLLIERS INTERNATIONAL P. 6

10 PRICING PHOTOS & FINANCIAL & MAPS ANALYSIS Property Photographs COLLIERS INTERNATIONAL P. 7

11 PHOTOS & MAPS Property Photographs COLLIERS INTERNATIONAL P. 8

12 INVESTMENT PHOTOS & SUMMARY MAPS Property Photographs P. 9 COLLIERS INTERNATIONAL OFFERING MEMORANDUM 1845 FRANKLIN STREET

13 PRICING & FINANCIAL ANALYSIS FLOOR PLAN Seller & Colliers make no representations to the accuracy of these floor plans. COLLIERS INTERNATIONAL P. 10

14 PRICING & FINANCIAL ANALYSIS FLOOR PLAN Seller & Colliers make no representations to the accuracy of these floor plans. COLLIERS INTERNATIONAL P. 11

15 PRICING & FINANCIAL ANALYSIS FLOOR PLAN Seller & Colliers make no representations to the accuracy of these floor plans. COLLIERS INTERNATIONAL P. 12

16 PRICING & FINANCIAL ANALYSIS FLOOR PLAN Seller & Colliers make no representations to the accuracy of these floor plans. COLLIERS INTERNATIONAL P. 13

17 SALES PHOTOS COMPARABLES & MAPS Location Local Map 1845 Franklin Street Regional Map 1845 Franklin Street COLLIERS INTERNATIONAL P. 14

18 SALES COMPARABLES AERIAL 1845 Franklin Street P. 15 COLLIERS INTERNATIONAL OFFERING MEMORANDUM 1845 FRANKLIN STREET

19 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 1845 Franklin Street, San Francisco, CA 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 1845 Franklin 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 1845 Franklin 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 1845 Franklin 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 this Offering Memorandum.

20 COLLIERS INTERNATIONAL 101 2nd Street, 11th Flr. San Francisco, CA tel fax BRAD LAGOMARSINO lic Senior Vice President/Investments direct brad.lago@colliers.com JAMES DEVINCENTI lic Senior Vice President/Investments direct j.d@colliers.com