Offering Memorandum...GRM - Pro Forma 13.64 Year Built 1927 Lot Size 2,760 1 MALORCA WAY Offering...
Transcript of Offering Memorandum...GRM - Pro Forma 13.64 Year Built 1927 Lot Size 2,760 1 MALORCA WAY Offering...
1 MALLORCA WAY Offering Memorandum - pg. 1
Mult i fami ly Investment Opportunity | Marina - San Francisco, CA
Offering Memorandum1 Mallorca Way
Table of Contents
Showing Schedule
Call for Offers
Offering Summary ................................3-4
Financial Overview ...............................5-6
Property Photographs ..........................7-10
Amenities Map .....................................11
Public Transportation ...........................12
Aerial of Subject Property ...................13
To be determined
Listing Agents:James Devincenti | lic: 00951916 +1 415 288 7848 | [email protected]
Brad Lagomarsino | lic: 01058500 +1 415 288 7847 | [email protected]
Dustin Dolby | lic: 01963487 +1 415 288 7869 | [email protected]
www.theDLTeam.com
Colliers International 101 2nd Street, 11th Floor San Francisco, CA 94105
Showing by AppointmentPlease contact Listing Agent
1 MALLORCA WAY Offering Memorandum - pg. 3
Offering Summary - Overview1 Mallorca Way is a phenomenal opportunity for investors to acquire an almost completely vacant mixed-use apartment building located in the heart of the Marina, one of San Francisco’s most affluent and chic neighborhoods. Constructed in 1927, this beautiful corner building consists of six 1-bedroom and six studio units over three commercial spaces (along Chestnut Street). The large studios present the possibility to convert the space into Junior 1 bedroom units, increasing the gross potential rent of the asset. In their current state, these charming apartments have hardwood floors, built-in cabinets and large windows overlooking the storybook streets of the Marina district. In addition to the income producing residential units, 1 Mallorca Way, features a diversified income stream with (3) three jewel box retail spaces and a northwest-facing billboard. Buyers have the ability to convert the garages to accessory dwelling units to maximize the value of the building.
Located right on Chestnut Street, residents have access to incredible dining, shopping and entertainment options. Due to the Marina District’s northern location within San Francisco, the area is a walker’s paradise (a walk score of 92). Crissy Field, Palace of Fine Arts, Fort Mason, St Francis Yacht Club and the Marina with its incredible views of iconic Golden Gate Bridge and the San Francisco Bay are all within walking distance. Major public transportation, tech shuttle stops and the use of ride-sharing services, such as Uber & Lyft allow residents in the building to get around anywhere in the City and other parts of the Bay Area.
Exceptionally well located, 1 Mallorca Way offers investors and developers the chance to acquire an “Add Value” asset with the potential to convert to TIC’s or ideal for an “Owner Occupier or Investor”.
1 MALLORCA WAY Offering Memorandum - pg. 4
Property Information
Building System
Address: 1 Mallorca Way, San Francisco (Chestnut Street)
District: Marina
Property Sub Type: Mixed-use apartment building
Apartments: 12 apartments (4-apartments per floor)
Commercial: 3 retail (on ground floor)
Stories: 3 stories above garage & lobby
Garage: 4-car enclosed parking
APN: 0486A-008
Building Square Feet: 10,777 square feet
Lot Size: 2,700 square feet
Constructed: 1927
Zoning: NC-2
Kitchens: Gas ranges with oven
Over-under refrigerator
Wood cabinetry (ample cabinets/counters/drawers plus storage)
Linoleum flooring
Eat-in Kitchens
Dome lighting
Bathrooms: Hexagon tile floors and surrounds
Vanity sinks
Storage mirror
Separate shower & tubs
Window ventilation
Bedrooms: Large room areas
Hardwood floors / Carpeting
Ample natural light
Over-sized closets (1 walk-in, 1-linen
-The property is on the Department of Building Inspection Soft Story Properties List
Foundation: Concrete foundation
Structure: Wood-frame structure
Façade: Stucco
Windows: Vinyl-frame windows
Rear of Building: Wood siding
Roof Composition & Age: Tar & Gravel
Elevator: None
Electrical Service: 200 AMP service / separately metered (trades-man alley- fuses)
Gas Service: Separately metered (tradesman alley)
Fire Protection System: Local fire alarm system / in-unit detectors
Fire Escapes: South east & west side of building
Heat Source: Boiler system
Hot Water: 1 x 119-gallon storage tank
Plumbing: Mixture of copper and galvanized
Common Area Lights: Timing system
Circuit Breakers: Fuses at main service and in closets
Surveillance 6-camera monitoring system
Door Entry System: Coded buzzer system
Mail Boxes: Entrance to lobby
Front Landing/Lobby: Grid marble entry
Lobby Flooring: Carpeted
Lobby Lighting: Dome lighting
Landing Areas: Carpeted
Garbage: Trash cans located in the garage area
Laundry: No laundry on premises
Offering Summary - Property Details
Common Areas
Building CompositionUnit Mix: 6 - studios, 6 - 1 bedrooms, 3 -
commercial spaces
Notes
1 MALLORCA WAY Offering Memorandum - pg. 5
Financial Overview1 Mallorca Way, San Francisco, CA 94123
Annual Gross Income Current Market Post Conversion
Gross Potential Income $463,896 $480,816 $509,616
Gross Potential Rent $440,496 $453,216 $482,016
Vacancy (5%) $22,025 $22,661 $16,871
AGI $441,871 $458,155 $492,745
Expenses $181,840 $182,601 $183,945
NOI $260,032 $275,554 $308,800
Annual Operating Expenses Current Market Post Conversion
Property Taxes $82,017 $82,017 $82,017
*Special Assessments $1,230 $1,230 $1,230
*Insurance $11,250 $11,250 $11,250
*Utilities: PG&E $15,300 $15,300 $15,300
*Utilities: Garbage $10,800 $10,800 $10,800
*Utilities: Water & Sewer $13,500 $13,500 $13,500
*Repairs & Maintenance $11,250 $11,250 $11,250
*Management Fee $18,556 $19,233 $20,385
*Leasing Fees $2,937 $3,021 $3,213
*Reserves $15,000 $15,000 $15,000
Total Operating Expenses $181,840 $182,601 $183,945
Current Market Post Conversion
Expenses as % of Gross 39% 38% 36%
Expenses per Unit $12,123 $12,173 $12,263
*Expenses are estimated based on similar fully occupied mixed-use apartment buildings
Financial Summary
Price $6,950,000
Down Payment $6,950,000
Number of Units 15
Price/Unit $463,333
Gross Square Feet 10,777
Price/Square Foot $645
CAP Rate - Current 3.74%
CAP Rate - Proforma 4.44%
GRM - Current 14.98
GRM - Pro Forma 13.64
Year Built 1927
Lot Size 2,760
1 MALLORCA WAY Offering Memorandum - pg. 6
Financial Overview (cont.)1 Mallorca Way, San Francisco, CA 94123
Unit No. Unit Type Rent Parking Market Post Conversion Move In Date Sq ft Notes
101 1 bed, 1 bath $2,800 $2,800 $2,800 Vacant
102 studio, 1 bath $2,200 $2,200 $2,600 Vacant Conversion potential
103 1 bed, 1 bath $2,800 $2,800 $2,800 Vacant
104 studio, 1 bath $2,200 $2,200 $2,600 Vacant Conversion potential
201 1 bed, 1 bath $2,800 $2,800 $2,800 Vacant
202 studio, 1 bath $2,200 $2,200 $2,600 Vacant Conversion potential
203 1 bed, 1 bath $2,800 $2,800 $2,800 Vacant
204 studio, 1 bath $2,200 $2,200 $2,600 Vacant Conversion potential
*301 1 bed, 1 bath $2,800 $2,800 $2,800 Occupied Owner occupied
302 studio, 1 bath $1,000 included $2,200 $2,600 4/1/1995 Conversion potential
303 1 bed, 1 bath $2,800 $2,800 $2,800 Vacant
304 studio, 1 bath $2,200 $2,200 $2,600 Vacant Conversion potential
2050 Commercial $2,760 $2,760 $2,760 Vacant 345
2054 Deleuce Jewelers $2,900 $2,760 $2,760 Month to Month 345 Long term tenant
2056 Commercial $2,248 $2,248 $2,248 Vacant 281
Monthly Income $36,708 $37,768 $40,168
4 Parking $1,050 $1,400 $1,400 1 leased and 3 vacant
Storage $100 $100 $100 In garage area
Billboard $800 $800 $800
Total Monthly Income $38,658 $40,068 $42,468
Annual Income $463,896 $480,816 $509,616 Post Conversion Upside 10%
Rent Roll
NotesProjected rents (Rentometer rent analysis/based on 0.10 mile radius)
Projected rents for Commercial units estimated at $8 per Sq Ft
Post conversion rents from studios to 1 bedrooms projected at $2,600
Unit 301 owner occupied (rent projected at market for unit)
Parking projected at $350 per space
Storage projected at $50 per space
All vacant unit rents are projected rents at market after each unit is fully renovated by buyer. Buyer should factor this cost into their underwriting
UnitsStudio - 6
1 Bedrooms - 6
Commercial - 3
Parking - 4
Storage - 2
Billboard - 1
All rents shown above are subject to the San Francisco rent control ordinance. Buyers are advised to review the San Francisco rent control ordinance and its impact on the subject property, as well as current and projected market rents.
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1 MALLORCA WAY Offering Memorandum - pg. 11
Restaurants & Bars Convenience & Grocery Stores Banks & ATM’sX X X
Subject Property1 Mallorca Way
Amenities1 Mallorca Way, San Francisco, CA 94123
La Marais Bakery The Tipsy Pig The Greenwich Walgreen’s
Peet’s Coffee Bonita Taqueria Mixt Marina Supermarket
Horseshoe Tavern Squat & Gobble Cafe Rooster & Rice Valentino’s
Blackwood Tacolicious Gamine Urban Remedy
Suzie’s Cakes Ristobar Italian West Coast Wine & Cheese Epicurean Trader
Delarosa Maybeck’s The Brixton Green Stret Market
The Plant Cafe Organic The Dorian Le Marcel Bakery Wells Fargo
Karaweik Burmese Cuisine Asian Box Flores Bank of America
Isa Restaurant Mel’s Driv-in La Canasta Tri Counties Bank
Amici’s East Coast Pizzeria Nabe Japanese Patxi’s Pizza Comerica Bank
Ace Wasabi Rock-N-Roll Sushi Rockwell Alegrias
Super Duper Burgers Balboa Cafe Rose’s Cafe
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1 MALLORCA WAY Offering Memorandum - pg. 12
Public Transportation1 Mallorca Way, San Francisco, CA 94123
With Immediate Access to One of the Nation’s Best Public Transit Systems
The area around 1 Mallorca Way offers an extensive transportation network which ensures superior regional access
throughout San Francisco and the surrounding Bay Area. Atlantic Cities’ “Access Across America, Transit 2019” ranked San
Francisco second only to Manhattan 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. 1 Mallorca Way is within walking distance of a variety
of public transit, 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’ moving busloads of Google,
Genentech, Facebook, and Apple employees from their homes in San Francisco to their job centers in Silicon Valley.
(to Hwy 101 &
Marin County)
LafayettePark
LOMBARD STREET
VAN NESS AVENUE
CHESTNUT STREET
4 UNION STREET
FILLMORE STREET
POWELL ST STATION
MONTGOMERY ST STATION
EMBARCADERO ST STATION
CIVIC CENTER STATION
POWELL/MASON CABLE CAR (to Market St / Union Square /Bart & Muni)
HIGH WAY ACCESS VIA VAN NESS AVE
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Bart & Muni Metro
30X
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Subject Property1 Mallorca Way
1 MALLORCA WAY Offering Memorandum - pg. 13
Confidentiality & Disclaimer StatementThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 1 Mallorca Way San Francisco, CA 94123. 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 1 Mallorca Way 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 1 Mallorca Way 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 1 Mallorca Way 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 Map1 Mallorca Way, San Francisco, CA 94123
Subject Property1 Mallorca Way
www.theDLTeam.com
Offering Memorandum1 Mallorca Way
Mult i fami ly Investment Opportunity | Marina - San Francisco, CA
Brad Lagomarsino | lic: 01058500 +1 415 288 7847 | [email protected]
James Devincenti | lic: 00951916 +1 415 288 7848 | [email protected]
Dustin Dolby | lic: 01963487 +1 415 288 7869 | [email protected]