633-639 HOWARD STREET SAN FRANCISCO, CALIFORNIA SAN FRANCISCO CREATIVE OFFICE OPPORTUNITY
The Offering NKF Capital Markets, as exclusive advisor, is pleased to extend to qualified investors the opportunity to acquire a 100% fee-simple interest in 633-639 HOWARD STREET (the Property ), located at 633-639 Howard in San Francisco, California. 633-639 Howard consists of a 3-story office building totaling 16,846 rentable square feet. The Property is situated one block from the future Transbay Transit Center within San Francisco s thriving South Financial District and two blocks from the Montgomery Street BART station on Market Street. Offering Summary Address 633-639 Howard Street, San Francisco, California Total Rentable Sq. Ft. 16,846 sq. ft. Year Built 1910 Year Renovated 2001 and 2014 Number of Stories Three Percent Leased 100% Number of Tenants Two Zoning C-3-O(SD) Lot Area 5,637 sq. ft. Height Limit 150-foot height limit
Property Highlights Vibrant Location Where New Montgomery Meets Howard Street Significantly Below Market Rents Long-Term Redevelopment Opportunity to Build to a 150-Foot Height Limit Two Blocks From BART / MUNI Montgomery Station High-End Brick + Timber Build-Out Abundant Natural Light with Skylights Throughout Exterior Signage / Branding Potential
75 HAWTHORNE EPA AthenaHealth ONE HAWTHORNE CONDOS 222 2ND LinkedIn 55 HAWTHORNE Yelp Optimizely Academy of Art University HOWARD STREET Wikimedia NEW MONTGOMERY
San Francisco Market Overview San Francisco Office Market Remains Robust CLASS A SOMA VACANCY SFMOMA Absorption in 2018 could be record-setting, as pre-leased buildings currently under construction are delivered and occupied. Continuing the 2017 trend, several leases greater than 100,000 square feet were signed in the fourth quarter of 2017, most notably the largest lease ever signed in San Francisco: Dropbox s 736,000-square-foot lease at the Exchange at 1800 Owens Street. A total of 20 leases over 100,000 square feet were signed in 2017, more than twice the annual average between 2007 and 2016. Demand Remains High South of Market Street 140 NEW MONTGOMERY Yelp Bloomberg Alibaba TrueCar SoMa and the South Financial District remain the most desirable submarkets, and overall vacancy in both of these markets dropped below 4.5% during the quarter, to 3.2% in SoMa and 4.4% in South Financial District, with Class A SoMa vacancy dropping to just 1.1%. Nearly 4.9 million square feet is expected to deliver in 2018, and 84.7% of these deliveries are already either pre-leased or are rumored to have leases pending. With Proposition M requirements continuing to restrict future development, San Francisco should continue to have relatively low vacancy compared with the rest of the nation for the next few years. $80.00 $70.00 $60.00 $50.00 ASKING RENT VS. VACANCY RATE 16.0% 14.0% 12.0% 10.0% $40.00 $30.00 $20.00 $10.00 8.0% 6.0% 4.0% 2.0% $0.00 0.0% 3Q04 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 Average Asking Rent (Price/SF) Vacancy (%)
2ND STREET NEW MONTGOMERY San Francisco Bay AT&T PARK SOMA EAST 181 FREMONT Facebook SALESFORCE TOWER Salesforce TRANSBAY BLOCK 8 (548 UNITS) 33 TEHAMA (403 UNITS) EPA Macys.c LinkedIn Yelp TRANSBAY TRANSIT CENTER Yelp Deloitte Salesforce JP Morgan Uber
Transbay Transit Center The Transbay Transit Center will centralize the region s transportation network by conveniently connecting all points in the San Francisco Bay Area for more than 100,000 passengers per day. The Transbay Joint Powers Authority (TJPA) is building a state-of-the-art bus and rail station the Grand Central Station of the West that will accommodate eleven transit systems from the Bay Area and Southern California. The project is expected to cost approximately $6 billion and is expected to be completed in 2018. om City Park A 1,400 foot long public 5.4-acre rooftop park. The elevated park will feature a wide range of activities and amenities, including an outdoor amphitheater, garden, trails, open grass areas, and children s play space, as well as a restaurant and café. MOSCONE CENTER Bus Deck The deck is designed as a loop that surrounds a central passenger waiting area. It will be the primary bus transit facility for AC Transit to operate service from the East Bay, with direct connection across the Bay Bridge and dedicated aerial bus ramp. SFMOMA YERBA BUENA CENTER FOR THE ARTS Ground Level The ground level will serve as the primary circulation hub of the Transit Center. The ground level will feature a Grand Hall with prominent Light column allowing natural daylight into the building. MISSION STREET Lower Concourse The lower concourse level will serve as the passenger connection between the public ground floor and train station platform. Space will be provided along the public concourse for retail, ticketing, and bike storage. 3RD STREET Train Platform The lower concourse level will serve as the passenger connection between the public ground floor and train station platform. Space will be provided along the public concourse for retail, ticketing, and bike storage.
SAN FRANCISCO, CALIFORNIA Investment Contacts Leasing Contact TIM WALLING Director 415.445.5154 timothy.walling@ngkf.com CA Lic. 01974712 STEVEN GOLUBCHIK Vice Chairman 415.445.5130 steven.golubchik@ngkf.com CA Lic. 01712816 GRANT LAMMERSEN Vice Chairman 415.445.5171 grant.lammersen@ngkf.com CA Lic. 01257410 EDMUND NAJERA Executive Managing Director 415.445.5151 enajera@ngkf.com CA Lic. 01299764 CHARLIE WITHERS Executive Managing Director 415.445.5191 cwithers@ngkf.com CA Lic. 01414522 This flyer does not constitute an offer to sell the Property. Neither any Potential Purchaser nor Seller will be bound to a contract of sale unless and until both parties sign and deliver it. Seller reserves the right at any time, in its sole discretion and without notice to any person, to: (a) change any of the terms of the potential sale of the Property; (b) withdraw the Property from the market; (c) accept or reject any offers; (d) terminate discussions with any Potential Purchaser; or (e) sell all or any portion of the Property to any other person. No liability will attach to the undersigned, Seller or any other party for failure to receive, review or respond to any offer or for any other matter in connection therewith. While any information contained in this flyer is derived from sources that are believed to be reliable, neither the undersigned nor Seller can or does guarantee that that such information is accurate, and that information is provided without representation or warranty. Prospective Purchasers should consult legal counsel with respect to the zoning and development potential of the Property, and with other consultants of Potential Purchaser s choice with regard to all aspects of the Property, including without limitation its physical and legal condition, the presence or absence of hazardous materials, its compliance with the Americans With Disabilities Act, and other matters that may affect its value, desirability and/or utility. Unless otherwise agreed in writing by Seller and its broker, (a) Prospective Purchaser s broker shall look solely to its client for the payment of any real estate commission, fee or other compensation for that broker s services, and (b) Seller and its broker shall not be liable for the payment of any such real estate commission, fee or other compensation. ONE BUSH STREET, SUITE 1500 SAN FRANCISCO, CALIFORNIA 94104 WWW.NGKF.COM