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975 BURNETT AVENUE Offering Memorandum - pg. 1 Offering Memorandum 975 Burnett Avenue Multifamily Investment Opportunity | Twin Peaks - San Francisco, CA
975 BURNETT AVENUE Offering Memorandum - pg. 1
Offering Memorandum975 Burnett AvenueMult i fami ly Investment Opportunity | Twin Peaks - San Francisco, CA
Table of Contents
Showing Schedule
Offering Summary ................................3-4
Financial Overview ...............................5-6
Property Photographs ..........................7-9
Amenities Map ......................................10
Public Transportation ...........................11
Location Map ........................................12
Aerial of Subject Property ...................13
Tuesday October9, 2018 | 12:00 PM - 1:30 PM
Thursday October 11, 2018 | 12:30 PM - 1:30 PM
Tuesday October 16, 2018 | 12:30 PM - 2:00 PM
Thursday October 18, 2018 | 12:30 PM - 1:30 PM
James Devincenti | lic 00951916 +1 415 288 7848 | [email protected]
Brad Lagomarsino | lic 01058500 +1 415 288 7848 | [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
975 BURNETT AVENUE Offering Memorandum - pg. 3
Offering Summary - OverviewColliers International is pleased to present 975 Burnett Ave (between Dawnview Way and Portola Drive) in the heart of Twin Peaks in San Francisco. The current ownership is a 3rd generation in San Francisco that built the building in 1963. 975 Burnett Ave is an eighteen unit, 60s-style apartment building, compromised of studios, one-bedroom units, and 2-bedroom units. The property also contains gated parking for the tenants, additional storage in the garage area and on-site laundry.
The units feature large living rooms, views looking back at downtown San Francisco and skylights for additional lighting. Many of the units have been renovated with hardwood floors, wood cabinetry, tile kitchen countertops and stainless steel appliances throughout. The soft story retrofit work was completed by the current owners back in 2016 and a certification of completion has been issued by the City of San Francisco. The roof has been well maintained and there are two rows of solar panels facing the right side of the property.
Located just steps from Portola Drive, 975 Burnett Ave provides easy access to the 280-Freeway and adjacent neighborhoods: The Sunset, West Portal and Noe Valley. Burnett Ave is just a short drive from the incredible dinning, retail and entertainment options offered at Diamond Heights Shopping Center, Stonestown Galleria and Lakeshore Plaza. Tenants can enjoy a quick walk to Twin Peak Blvd to enjoy 360-Degree views of the beautiful San Francisco skyline.
For the investors, this property provides the opportunity to acquire an exceptionally well-maintained apartment building in the Twin Peaks neighborhood of San Francisco with upside appreciate potential in rents.
975 BURNETT AVENUE Offering Memorandum - pg. 4
Property InformationAddress: 975 Burnett Ave, San Francisco, CA
(at Portola Drive)
District: Twin Peaks
Property Type: Apartment building
APN: 2847-045
Building Square Feet: 16,967 square feet
Lot Size: 8,581 square feet
Floors: 4 floors
Constructed: 1963 (per tax record)
Zoning: RM-1
Building CompositionUnit Mix: 3-studios, 9-one bedrooms, 3-two bedroom/1
bath & 3- two bedroom 1.5 bath units
Parking: 18 spaces
Kitchens: Stainless steel appliances (in renovated units)
Wood or Formica countertops
Disposals and dishwashers (in renovated 2 bedroom units)
Electric stove/oven
Freezer over refrigerator
Bathrooms: Tile floors
Tile surrounds
Vanity lighting
Cabinet sink
Tub shower combinations
Bedrooms: Hardwood floors or carpeted
Sliding door closets
Living Area: Hardwood floors or carpeted
Large windows with views
Window blinds
Miscellaneous: Seismic retrofit was completed in 2018
Building SystemsFoundation: Concrete foundation
Structure: Woodframe
Façade: Brick wainscot and stucco façade
Roof System Rolled composite
Electrical Service: Separately Metered, Circuit Breakers, 400 Amps of service, 120/240 volt 3-Phase power for elevator
Gas Service: Separately metered
Fire Protection System: ESL 1500 Series, Five Alarm System, smoke detectors/carbons in units
Heat Source: Gas wall heat and forced air in 2-bedroom units
Hot Water: Rheem 97 gallon tank with four 119 gallon solar storage tanks in bullpen garage
Plumbing: Predominantly copper
Common Area Lights: Timer system
Circuit Breakers: In closets and at main service
Common AreasDoor Entry System: Sentec keypad system
Lobby: Terrazzo lobby and stairs
Elevator: Hydraulic elevator system
Lobby Lighting: Fluorescent/period lighting
Common Areas: Carpeted hallways
Garbage: Chutes
Laundry: 2 washers / 2 dryers and a 3rd washer for bulk loads
Storage: 11 storage units - sprinklered
Mailboxes: In lobby area
Skylight: In seven units
Offering Summary - Property Details
975 BURNETT AVENUE Offering Memorandum - pg. 5
Annual Operating Expenses Current Proforma Property Taxes $83,723 $83,723
Special Assessment Tax $1,256 $1,256
Insurance $17,167 $17,167
Repairs & Maintenance $9,000 $9,000
*Off-Site Management $17,273 $17,273
On-Site Management $12,000 $12,000
PG&E $8,497 $8,497
Water & Sewer $15,163 $15,163
Reserves $9,000 $9,000
Total Operating Expenses $173,079 $173,079
*Estimated expenses: Off-Site Mgmt at 4% of Gross / On-Site Mgmt at $1000 per Month / Reserves at $500 per unit
Financial Overview975 Burnett Avenue, San Francisco, CA 94131
Financial SummarySale Price $7,100,000
Down Payment $3,850,000
Number of Units 18
Price/Unit $394,444
Gross Square Feet 16,976
Price/Square Foot $418
CAP Rate-Current 3.43%
CAP Rate-Pro Forma 6.07%
GRM-Current 16.44
GRM-Pro Forma 11.34
Year Built 1963
Lot Size 8,581
Annual Gross Income Current Proforma Gross Potential Income $431,831 $626,262
Vacancy (3.5%) $15,114 $21,919
AGI $416,717 $604,343
Expenses $173,079 $173,079
NOI $243,637 $431,264
FinancingLoan Amount $3,250,000
Loan Type Proposed New
Interest Rate 4.63%
Program 3 year Interest Only
Loan to Value 46%
Quote: First Foundation Bank 10/5/2018 (Loan is time sensitive and subject to change)
Cash Flow After Debt Service Current ProformaLess Debt Service $150,475 $150,475
Cash Flow $93,162 $280,789
Cash on Cash Return 2.42% 7.29%
Expenses as % of Gross 40% 28%
Expenses per Unit $9,616 $9,616
975 BURNETT AVENUE Offering Memorandum - pg. 6
Financial Overview (cont.)975 Burnett Avenue, San Francisco, CA 94131
Unit No. Unit Type Rents Parking Cap Ex Storage Market Rents Move In Date
1 (mgr) 2 Bedroom /1Bath $3,395.00 $3,395 5/1/2008
2 1 Bedroom /1Bath $1,352.00 incl $50.21 $2,450 3/13/2004
3 Studio $1,241.87 $1,750 8/28/2009
4 2 Bedroom/1.5 Bath $2,423.91 incl $50.21 $3,550 4/15/2011
5 2 Bedroom/1Bath $3,095.00 $150.00 $3,395 5/1/2015
6 1 Bedroom /1Bath $787.34 incl $2,450 10/4/1975
7 Studio $810.24 $50.21 incl $1,750 2/11/1984
8 2 Bedroom/1.5 Bath $1,257.41 incl $50.21 incl $3,550 3/13/1980
9 1 Bedroom /1Bath $1,580.42 incl $50.21 $2,450 6/1/2005
10 1 Bedroom /1Bath $2,141.09 $2,450 1/1/2017
11 2 Bedroom/1Bath $2,136.40 incl $50.21 $50.00 $3,395 5/1/2011
12 1 Bedroom /1Bath $2,395.00 $2,450 12/16/2017
14 Studio $1,296.49 incl $50.21 $1,750 5/1/2011
15 2 Bedroom/1.5 Bath $2,895.00 $150.00 $50.00 $3,550 10/23/2017
16 1 Bedroom /1Bath $1,840.35 incl $2,450 7/19/2013
17 1 Bedroom /1Bath $1,552.49 incl $51.82 $2,450 3/1/2003
18 1 Bedroom /1Bath $2,433.32 $2,450 3/1/2017
19 1 Bedroom /1Bath $1,599.07 incl $50.21 incl $2,450 9/1/2004
$34,232 $300 $504 $50 $48,135
Parking $300 $3,000
Vacant Parking (3 Spaces) $600
Cap Ex $504 $504
Vacant Storage (6 spaces) $300
Storage $50 $550
Total Monthly Income $35,986 $52,189
Annual Income $431,831 $626,262 45% Upside
Rent Roll
Notes14 Parking estimated at $200 per space
11 Storage spaces projected at $50 per space
UnitsStudios - 3
1 Bedrooms - 9
2 Bedrooms - 3
2 Bedrooms / 1.5 Bath - 3
975 BURNETT AVENUE Offering Memorandum - pg. 7
975 BURNETT AVENUE Offering Memorandum - pg. 8
975 BURNETT AVENUE Offering Memorandum - pg. 9
975 BURNETT AVENUE Offering Memorandum - pg. 10
Firefly Casa Mexicana Restaurant Mollie Stone’s Market
Rins Thai La Boulangerie Safeway
Barneys Gourmet Burgers Saru Sushi Bar Whole Foods Market
Contigo Anchor Oyster Bar CVS
Noe Valley Bakery Fable Walgreens
Noe Tavern Mama Ji’s Bank of America
Griddle Fresh Poesia Italian Osteria Wells Fargo
Fresca Eureka Umpqua Bank
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Restaurants & Bars Convenience & Grocery Stores Banks & ATM’sX X X
Neighborhood Amenities
Amenities975 Burnett Avenue, San Francisco, CA 94131
1 103
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67 8 94 5
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+Sutter PacificMedical Foundation
Subject Property975 Burnett Ave
2
1720
+UCSFMedical Center
975 BURNETT AVENUE Offering Memorandum - pg. 11
With Immediate Access to One of the Nation’s Best Public Transit Systems
The area around 975 Burnett Avenue offers an extensive transportation network which ensures superior regional access
throughout San Francisco and the surrounding Bay Area. Atlantic Cities’ “Access Across America, Transit 2014” 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. 975 Burnett Avenue is within walking
distance of a variety of public transit, including the underground MUNI, Rapid Transit System (BART) station, 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.
Public Transportation975 Burnett Avenue, San Francisco, CA 94131
Subject Property975 Burnett Ave
24TH STREET
CASTRO STREET / 30TH STREET
18TH STREET
DIAMOND HEIGHTS
EUREKA STREET
O’SHAUGHNESSY
48
24
33
52
35
44 36
L KTM
J
CASTRO @ MARKET STREET
CHURCH @ MARKET STREET
24TH STREET BART
CORPORATE BUS LINE (to the Peninsula and South Bay)
v
J
975 BURNETT AVENUE Offering Memorandum - pg. 12
Location975 Burnett Avenue, San Francisco, CA 94131
Subject Property975 Burnett Ave
Subject Property975 Burnett Ave
N
975 BURNETT AVENUE Offering Memorandum - pg. 13
Confidentiality & Disclaimer StatementThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 975 Burnett Avenue San Francisco, CA 94131. 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 975 Burnett Avenue 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 975 Burnett Avenue 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 975 Burnett Avenue 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 Map975 Burnett Avenue, San Francisco, CA 94131
Subject Property975 Burnett Ave
www.theDLTeam.com
Offering Memorandum975 Burnett Avenue
Mult i fami ly Investment Opportunity | Twin Peaks - 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]
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