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Multifamily Investment Opportunity 737 Webster Street | San Francisco, CA 94117 Confidential Offering Memorandum Hayes Valley / Alamo Square
Multifamily Investment Opportunity
737 Webster Street | San Francisco, CA 94117C o n f i d e n t i a l O f f e r i n g M e m o r a n d u m
H a y e s V a l l e y / A l a m o S q u a r e
737-741 WEBSTER STREET2 |
ContentsExecutive Summary
Valuation
Location Overview
Property Photos
RYAN [email protected]. 01760602
KALAH [email protected]. 01760602
EXCLUSIVELY OFFERED BY:
737 Webster StreetS a n F r a n c i s c o , C A 9 4 1 1 7
Executive SummaryOFFERINGColliers International is pleased to present the opportunity to acquire 737-741 Webster Street, a 3-unit building located on the border of the Hayes Valley and Alamo Square Districts of San Francisco.
This Victorian building was constructed in 1900 and it is comprised of 1-three bedroom/two bathroom unit (top unit), 1-two bedroom/two bathroom unit (middle unit), and 1-two bedroom/one bathroom unit (ground floor unit). The top floor unit renovations were completed in 2007. The middle and ground floor units have in-unit laundry as well as new kitchens and baths. This property is an excellent opportunity for owner users and investors. The middle and bottom units will be delivered vacant.
737-741 Webster Street is being offered for $2,495,000 representing a current cap rate of 4.41% on projected rents. At $805 per square foot, 737-741 Webster Street is competitively priced with other like-kind assets that have recently transacted and are on the market currently.
737-41 WEBSTER STREET
INVESTMENT HIGHLIGHTSPRICE $2,495,000
PRICE PER SQ FT $805
PRICE PER UNIT $831,667
CURRENT GRM / MARKET GRM 17.22 / 13.63
CURRENT CAP / MARKET CAP 4.41% / 5.94%
ANNUAL INCOME $144,877
ANNUAL EXPENSES (EST.) $34,743
NOI $110,134
PROPERTY DESCRIPTIONADDRESS 737-741 Webster St.
PARCEL NUMBER 0797-005
UNITS 3 - Residential Units
BUILDING SQ. FT. 3,180 (per tax records)
LOT SQ. FT. 1,894 (per tax records)
ZONING RH3
NEIGHBORHOOD Alamo Square/Hayes Valley
YEAR BUILT 1900
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RENT ROLL
CURRENT INCOME
Total Monthly Per Unit
Total Rent $141,828 $11,819 $47,276
Other Income $3,049 $254.08 $1,016
TOTALS $144,877 $12,073 $48,292
CURRENT EXPENSES
Total Monthly Per Unit
Property Tax $27,011 $2,251 $9,004
Insurance $2,250 $188 $750
Utilities $2,682 $224 $894
Repairs & Maintenance $2,800 $233 $933
Total Expenses $34,743 $2,895 $11,581
NET OPERATING INCOME $110,134
MARKET RENTS
Total Monthly Per Unit
Total Rent $179,940 $14,995 $59,980
Other Income $3,049 $254.08 $1,016
TOTALS $182,989 $15,249 $60,996
CURRENT EXPENSES
Total Monthly Per Unit
Property Tax $27,011 $2,251 $9,004
Insurance $2,250 $188 $750
Utilities $2,682 $224 $894
Repairs & Maintenance $2,800 $233 $933
Total Expenses $34,743 $2,895 $11,581
NET OPERATING INCOME $148,246
Valuation
ADDRESS LOCATION FLOORPLAN MOVE-IN DATE SQ. FT. CURRENT RENT MARKET RENT
737 Top 3BD/2BA 9/1/2011 1,065 $2,619 $5,995
739 Middle 2BD/2BA VACANT 1,045 $4,700 $4,500
741 Ground 2BD/1BA VACANT 1,015 $4,500 $4,500
Totals/AVG. 3,125 $11,819 $14,995
ANNUALIZED $141,828 $179,940
737-741 WEBSTER STREET
CITY AND COUNTY OF SAN FRANCISCO
World renowned for its scenic beauty, unparalleled
amenity base and 24 hour “live/work/play” environment,
San Francisco been a focal point for business in this
region for over a century.
Covering approximately 47.9 square miles, San Francisco
has long been recognized as one of the major business
centers worldwide, and is both a significant financial
headquarters of the Western United States and the
primary employment hub for Northern California. San
Francisco is the Bay Area’s most densely populated city,
with a 2016 census-estimated population of 870,887,
that is projected to grow to 1,000,000 residents by the
year 2033.
A popular tourist destination, San Francisco is known
for its cool summers, fog, steep rolling hills, eclectic mix
of architecture, and landmarks, including the Golden
Gate Bridge, cable cars, the former Alcatraz Federal
Penitentiary, Fisherman’s Wharf, and its Chinatown
district. San Francisco is also the headquarters of
five major banking institutions and various other
companies such as Levi Strauss & Co., Gap Inc., Fitbit,
Salesforce.com, Dropbox, Reddit, Square, Inc., Dolby,
Airbnb, Weebly, Pacific Gas and Electric Company, Yelp,
Pinterest, Twitter, Uber, Lyft, and Mozilla. It is home
to number of educational and cultural institutions, such
as the University of California, San Francisco (UCSF),
the De Young Museum, the San Francisco Museum of
Modern Art, and the California Academy of Sciences. The
city enjoys an excellent transportation infrastructure, a
myriad of cultural resources, proximity to many of the
world’s premier educational and research facilities,
internationally recognized retailers, restaurants and
hotels, and a reputation as one of America’s most livable
urban centers.
HAYES VALLEY & ALAMO SQUARE
Located in the heart of San Francisco on the border of
Hayes Valley and Alamo Square, the property is minutes
away from trendy shops, vibrant restaurants, Alamo
Square, and Golden Gate Park. Hayes Valley is one of
San Francisco’s hottest neighborhoods and central to
almost everything in San Francisco.
The area has easy access to the freeway via the new
Octavia Blvd on-ramp and is walking distance to
both Muni and BART Stations. Over the past decade,
Hayes Valley has developed into a thriving residential
and commercial district, a haven for trendy fashion
boutiques, SoHo-style funky art galleries, top-notch
restaurants, and hip nightlife.
In spite of the rapid revival of Hayes Valley, the district
has managed to retain a sense of community with a
quaint neighborhood feel. The combination results in a
wide diversity of clientele.
The Alamo Square neighborhood is characterized by
Victorian architecture that was left largely untouched by
the urban renewal projects in other parts of the Western
Addition. The Alamo Square area contains the second
largest concentration of homes over 10,000 square feet
in San Francisco, after the Pacific Heights neighborhood.
A row of Victorian houses facing the park on Steiner
Street, known as the “Painted Ladies”, are often shown
in the foreground of panoramic pictures of the city’s
downtown area. A number of movies, television shows
and commercials have been filmed in or around Alamo
Square.
Location Overview
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LOCATION OVERVIEW |
Photos: Unit 737
737-741 WEBSTER STREET
Photos: Unit 739
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Photos: Unit 741
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CONFIDENTIALITY & DISCLAIMERThis Confidential Offering Memorandum (the “Memorandum”) has been prepared and presented to the recipient (the “Recipient”) by Colliers International (“Colliers”) as part of Colliers’ efforts to market for sale the real property located at 737-741 Webster Street, San Francisco, California 94117 (the “Property”). Colliers is the exclusive agent and broker for the owner(s) of the Property (the “Owner”).
Colliers is providing this Memorandum and the material contained in it to the Recipient solely to assist the Recipient in determining whether the Recipient is interested in potentially purchasing all or part of the Property. Colliers is also providing this Memorandum and the material in it to the Recipient with the understanding that the Recipient will independently investigate those matters that it deems necessary and appropriate to evaluate the Property and that the Recipient will rely only on its own investigation, and not on Colliers, the Owner, or this Memorandum, in determining whether to purchase the Property. The Recipient’s use of this Memorandum and the material in it is strictly governed by the terms and conditions of the Registration and Confidentiality Agreement that the Recipient previously executed and delivered to Colliers.
PLEASE NOTE THE FOLLOWING:
Colliers, the Owner, and their respective agents, employees, representatives, property managers, officers, directors, shareholders, members, managers, partners, joint venturers, corporate parents or controlling entities, subsidiaries, affiliates, assigns and predecessors and successors-in-interest make no representations or warranties about the accuracy, correctness or completeness of the information contained in this Memorandum. The Recipient is urged not to rely on the information contained in this Memorandum and
to make an independent investigation of all matters relating to the Property.
This Memorandum includes statements and estimates provided by or to Colliers and/or the Owner regarding the Property. Those statements and estimates may or may not be accurate, correct or complete. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements and estimates. Further, nothing contained in this Memorandum should be construed as representation or warranty about any aspect of the Property, including, without limitation, the Property’s (1) past, current or future performance, income, uses or occupancy, (2) past, current or prospective tenants, (3) physical condition, (4) compliance or non-compliance with any permit, license, law, regulation, rule, guideline or ordinance, or (5) appropriateness for any particular purpose, investment, use or occupancy. Again, the Recipient is urged not to rely on this Memorandum and the statements and estimates in it and to make an independent investigation regarding the Property and the statements and estimates contained herein.
This Memorandum may include statements regarding, references to, or summaries of, the nature, scope or content of contracts and/or other documents relating to the Property. Those statements, references or summaries may or may not be accurate, correct or complete. Additionally, Colliers may not have referenced or included summaries of each and every contract and/or other document that the Recipient might determine is relevant to its evaluation of the Property. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements, representations or summaries. On request and as available,
and subject to the Owner’s consent, Colliers will provide the Recipient with copies of all referenced contracts and other documents. Colliers assumes no obligation to supplement or modify the information contained in this Memorandum to reflect events or conditions occurring on or after the date of its preparation of this Memorandum.
This Memorandum does not constitute an offer to sell, or a solicitation of an offer to buy, an interest in the Property. Nothing contained in this Memorandum may be construed to constitute legal or tax advice to a Recipient concerning the Property.
More detailed information regarding the anticipated terms, conditions and timing of any offering by the Owner relating to the Property will be provided in due course by separate communication. Colliers and/or the Owner reserve the right to engage at any time in discussions or negotiations with one or more recipients of this Memorandum and/or other prospective purchasers of the Property without notice or other obligation to the Recipient.
The Owner reserves the right to change the terms of any offering relating to the Property or to terminate without notice that offering. The Owner also reserves the right to operate the Property in its sole and absolute discretion prior to the completion of any sale of the Property. Colliers reserves the right to require the return of this Memorandum and the material in it and any other material provided by Colliers to the Recipient at any time. Acceptance of this Memorandum by the Recipient constitutes acceptance of the terms and conditions outlined above.
