O FFERING MEMORANDUM E x c e p t i o n a l R e d e v e l o p m e n t O p p o r t u n i t y 5 9 5 M A R I P O S A S T R E E T S A N F R A N C I S C O, C A
Exclusively Marketed By: David Noravian Lic. 01419471 415.772.0178 david.noravian@cbre.com Don LeBuhn Lic. 01821805 415.772.0248 don.lebuhn@cbre.com DISCLAIMER WE OBTAINED THIS INFORMATION FROM SOURCES WE BELIEVE TO BE RELIABLE. HOWEVER, WE HAVE NOT VERIFIED ITS ACCURACY AND MAKE NO GUARANTEE, WARRANTY OR REPRESENTATION ABOUT IT. IT IS SUBMITTED SUBJECT TO THE POSSIBILITY OF ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING OR WITHDRAWAL WITHOUT NOTICE. WE INCLUDE PROJECTIONS, OPINIONS, ASSUMPTIONS OR ESTIMATES FOR EXAMPLE ONLY, AND THEY MAY NOT REPRESENT CURRENT OR FUTURE PERFORMANCE OF THE PROPERTY. YOU AND YOUR TAX AND LEGAL ADVISORS SHOULD CONDUCT YOUR OWN INVESTIGATION OF THE PROPERTY AND TRANSACTION.
EXECUTIVE SUMMARY
E X E C U T I V E S U M M A R Y CBRE as exclusive advisor is pleased to offer for sale 595 Mariposa Street, a rectangular parcel totaling 3,705 sf (0.085 acres) of land located at the SEC of Mariposa Street and Tennessee Streets near San Francisco s vibrant Mission Bay and Dogpatch districts. The Property is directly across the street from the new UCSF Medical Center, which is scheduled to open in February 2015. The hospital will be a state of the art facility, creating a significant number of new jobs. 595 Mariposa Street is currently in use as a paved parking lot with level topography. There is 100 of frontage along Mariposa Street and curb cuts along the 38 of Tennessee Street frontage. 1798 BRYANT The Property offers an outstanding urban mixed-use (UMU) redevelopment opportunity immediately adjacent to Mission Bay. The Property zoning permits a Floor Area Ratio (FAR) of 4 to 1 which could allow for up to 14,820 sf of new product. INVESTMENT SUMMARY Address Price Offer Date Tenancy 595 Mariposa Street Best Offer TBD The Property will be delivered with one existing month-to-month lease in effect 595 Mariposa Street Offering Memorandum Page 4
E X E C U T I V E S U M M A R Y PROPERTY INFORMATION Building Size Potential for up to 14,820 SF Land Square Footage ±3,705 gross SF (±.085 acres) Number of Floors APN 3995-022 ZONING INFORMATION Zoning Zoning Description Height Limit Current Allowable Floor Area Ratio Maximum Buildable Square Footage Allowed at a 4 to 1 ratio UMU (Urban Mixed Use), Life Sciences Special Use District (see Sec. 249.36 of San Francisco Planning Code) Includes a wide mix of uses including production, distribution and repair uses, home & business services, arts activities, warehouse, wholesaling, retail, educational facilities, nighttime entertainment. Housing is permitted and office uses are restricted to the upper floors of multiple story buildings. 58 feet 4 to 1 14,820 SF Prime redevelopment site: Located in the Mission Bay submarket and along the border of the Dogpatch submarket, the Property benefits from favorable UMU zoning which allows for a variety of future uses in an area slated for significant growth over the next few years. It also has a 4 to 1 Floor Area Ratio which could allow for 14,820 sf of new development. Surrounding Development: The Mission Bay Redevelopment District has several high profile projects under development. The most notable of these projects is the new UCSF Medical Center, which will open directly across the street from the Property in February 2015. Development at the Property would benefit from this high profile project. Corner location: The Property has frontage along both Mariposa and Tennessee Streets, with curb cuts along Tennessee. Extremely Favorable Zoning: In addition to the very flexible UMU (Urban Mixed Use) zoning, the Property benefits from a Life Science and Medical Special Use District overlay, which is intended to support uses that benefit from proximity to the University of California (UCSF) campus at Mission Bay. These uses include Office and Life Science (biotechnology) uses. Medical Services, Life Science Offices, and Life Science Laboratories are exempted from use size limitations and vertical (floor-by-floor) zoning controls. Daytime population: In addition to the high number of patients expected at the UCSF Medical Center, there are 5,453 employees within half-mile of the Property. 595 Mariposa Street Offering Memorandum Page 5
E X E C U T I V E S U M M A R Y A e r i a l M a p Z o n i n g M a p 595 Mariposa Street Offering Memorandum Page 6
A REA OVERVIEW
A R E A O V E R V I E W 595 Mariposa Street Offering Memorandum Page 8
A R E A O V E R V I E W M i s s i o n B a y MISSION BAY DISTRICT HISTORY San Francisco s new Mission Bay development covers 303 acres of land between the San Francisco Bay and Interstate- 280. The Board of Supervisors established the Mission Bay North and South Redevelopment Project Areas in November 1998. Development is controlled through the Redevelopment Plans and Designs for Development, Owner Participation Agreements between the Redevelopment Agency and original master developer, Catellus Development Corporation (now held by FOCIL-MB LLC), and Interagency Cooperation Agreements, which commit all City departments to the Mission Bay Infrastructure Plans. Mission Bay is a mixed-use, transitoriented development.* MISSION BAY TODAY! The Mission Bay District in San Francisco continues to attract high end residential development and health science facilities. It is now home to over 55 biotech companies, digital health start ups, and headquarters for Old Navy and Peet s Coffee & Tea. In 2015, UCSF s Children s Hospital will open and be a major draw to the area. Development is expected to continue, including the planned influx of 1,700 designated affordable housing units. Retail will continue to grow to meet new residential demands.** *Source: www.sfredevelopment.org **Source: Various. Xconomy, San Francisco Business Journal, sfgate.com 595 Mariposa Street Offering Memorandum Page 9
A R E A O V E R V I E W The maximum development program for Mission Bay includes: 6,000 housing units, with 1,700 (28%) affordable to moderate, low, and very low-income households. Redevelopment Agency sponsored non-profit developers will build 1,445 of the affordable units on 16 acres of land contributed by the master developer. The remaining 255 affordable units will be included in privately developed projects, 4.4 million sq. ft. of office/life science/biotechnology commercial space, A new UCSF research campus containing 2.65 million sq. ft. of building space on 43 acres of land donated by the master developer and the City, A state-of-the art UCSF hospital complex serving children, women, and cancer patients, 500,000 sq. ft. of city and neighborhood-serving retail space, A 500-room hotel, 41 acres of new public open space, including parks along Mission Creek and along the bay, plus 8 acres of open space within the UCSF campus, A new 500-student public school, a new public library and new fire and police stations and other community facilities. The master developer will construct more than $700 million in public infrastructure in Mission Bay, to be financed through special assessments and increased property taxes generated by the development. Upon completion, the right-of-way and utility improvements will be accepted for operation and maintenance by the City. The Redevelopment Agency will operate the park system, funded by annual assessments against private property in the redevelopment areas. Mission Bay is expected to create more than 30,000 new permanent jobs, in addition to hundreds of ongoing construction jobs. Development began in 2000 and will take place over 20 to 30 years. Total development cost for Mission Bay is expected to exceed $4 billion. Mission Bay is served by transit by Muni s new 3rd Street Light Rail system, bus lines and the regional-serving Caltrain.* *Source: sfredevelopment.org 595 Mariposa Street Offering Memorandum Page 10
A R E A O V E R V I E W 595 Mariposa Street Offering Memorandum Page 11
A R E A O V E R V I E W M i s s i o n B a y : A P r e m i e r e B i o t e c h M a g n e t The Mission Bay Redevelopment has brought significant changes to the submarket during the last ten years. Potential for large developments have attracted several large companies to the area. The rise of biotech companies is poised to continue over the next few years and establish Mission Bay as a leading industry hub. UCSF s Mission Bay facilities are a major draw for companies hoping to partner with their renowned research department. The addition of UCSF s Medical Center will only increase this draw. C o m p a n i e s m a k i n g M i s s i o n B a y t h e i r h o m e : Mission Bay has increasingly become a destination for professionals seeking convenient, high end living. Many luxury housing projects provide water front views, convenient freeway and public transportation access, and nearby public amenities and parks. Retail opportunities in Mission Bay are a mix of older, smaller businesses and newer businesses attracted by the redevelopment. The continued growth and zoning will allow for additional retailers to expand in to the submarket in the coming years. 595 Mariposa Street Offering Memorandum Page 12
A R E A O V E R V I E W U C S F M e d i c a l C e n t e r A t M i s s i o n B a y $1.5 BILLION DEVELOPMENT UNDER CONSTRUCTION In February 2015, the UCSF Medical Center will open immediately across the street from the Property. This 878,000 sf complex will include three major buildings providing ambulatory services, as well as special facilities for children, women, and cancer inpatient treatment.* UCSF s programs are ranked among the best in the nation (13 th for adults, 7 th for cancer, and 9 th for pediatric specialties, respectively).** The Benioff Children s Hospital will be the closest building to the subject Property. It will house 183 beds and offer a range of pediatric primary and specialty outpatient services. UCSF s existing facilities currently admit an average of 130 patients per day.*** Their new concept focused on patient-and-family centered health care and the facilities are designed to accommodate patients parents and siblings. Their pediatric programs are globally recognized for their innovation, having performed the first in-womb surgery and developed treatments for premature infants. *Source: www.missionbayhospitals.ucsf.edu **Source: www.health.usnews.com ***Source: www.heartwaves.org The Center is designed to be a new standard in hospital care and to bolster UCSF s reputation for quality care and medical advancements. Biotech, life science, and health industries will continue to consider Mission Bay locations for their close proximity to the Center. The existing UCSF research facilities helped establish Mission Bay s draw for these industries and these new facilities will help strengthen this draw. 595 Mariposa Street Offering Memorandum Page 13
A R E A O V E R V I E W 595 Mariposa Street Offering Memorandum Page 14
A R E A O V E R V I E W D o g p a t c h DOGPATCH DISTRICT HISTORY The Dogpatch neighborhood is bordered by Mariposa Street, I-280, and the waterfront. As one of the areas that survived the 1906 earthquake and fire, some of the oldest houses in San Francisco can be found in Dogpatch. Its proximity to the Bay allowed for strong industrial development, including shipbuilding, warehouses, and steel mills during World War II. The area has seen rapid growth since the 1990s, transforming from a primarily industrial district to having equal parts residential and light industrial. Many former warehouses have recently been converted to lofts and condos. Dogpatch became a designated historic district in 2002. DOGPATCH TODAY! The Dogpatch is developing in to a working upper middleclass neighborhood. Its proximity to Mission Bay allows many professionals accessible housing. The 22 nd Caltrain station makes the area ideal for commuters who work south of San Francisco. Many of the converted warehouse lofts have attracted artists and graphic designers with their live-work designation. Dogpatch restaurants are known for their farm-tofork concepts. The neighborhood is often considered one of the areas to watch in San Francisco. 595 Mariposa Street Offering Memorandum Page 15
A R E A A M E N I T I E S Site Under Construction 595 Mariposa Street (Site) UCSF Medical Center (Feb. 2015) Restaurants Grocery 1 Hard Knox Café 17 Un Po Pazzo 2 Just For Your Café Fitness 3 Moshi Moshi 18 Bay Area Professionals Fitness 4 Piccino Café 19 Cross Fit 415 5 Poquito 20 El Nino Training Center 6 Serpentine 21 Heart of San Francisco Aikido 7 The Ramp 22 I Luv My Body Fitness Bakery/Coffee 23 My Gym 8 California Smart Foods 24 Third Street Boxing Gym 9 Creative International Pastries, Inc. Health/Beauty 10 Jolt N Bolt 25 Acupuncture Kitchen 11 Leadbetter s Bake Shop 26 Dekko Salon 12 Tell Tale Preserve Co. 27 Dogpatch Massage and Bodywork Banks 28 Modern Nail Bar 13 Drayage Bank 29 Nomi Day Spa Bars 30 The Glamourist 14 Café Cocomo 15 Dogpatch Saloon 16 Yield Wine Bar 595 Mariposa Street Offering Memorandum Page 16
HOUSING INCOME HOUSEHOLDS POPULATION A R E A O V E R V I E W DEMOGRAPHICS (1 MILE RADIUS) 2018 Projected Population 25,570 2010 Census Population 21,028 2000 Census Population 11,155 Growth 2010-2013 8.87% Growth 2013-2018 11.69% 2013 Estimated Median Age 36.08 2013 Estimated Average Age 37.71 2013 Estimated Households 10,728 2018 Projected Households 11,951 2010 Census Households 9,954 2000 Census Households 5,242 Growth 2010-2013 7.77% Growth 2013-2018 11.40% 2013 Est. Average Household Size 2.00 2013 Est. Median Household Income $110,084 2018 Prj. Median Household Income $120,394 2000 Cen. Median Household Income $71,380 2013 Est. Average Household Income $146,203 2013 Estimated Per Capita Income $68,511 2013 Estimated Housing Units 11,601 2013 Estimated Occupied Units 10,728 2013 Estimated Vacant Units 873 2013 Est. Owner Occupied Units 4,348 2013 Est. Renter Occupied Units 6,380 2013 Est. Median Housing Value $637,086 2013 Est. Average Housing Value $756,478 595 Mariposa Street Offering Memorandum Page 17
David Noravian Lic. 01419471 415.772.0178 david.noravian@cbre.com Don LeBuhn Lic. 01821805 415.772. 0248 don.lebuhn@cbre.com 2014 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.