SAN FRANCISCO $10,500,000 - LoopNet · 2018. 9. 18. · SAN FRANCISCO $10,500,000 MIXED-USE HOTEL |...

OFFERING MEMORANDUM:493 EDDY STREET

SAN FRANCISCO$10,500,000

MIXED-USE HOTEL | TENDERLOIN

EXCLUSIVELY LISTED BY:

Dimitris DrolapasVice President

415-874-5033

[email protected] No. 01883765

Davis NguyenVice President

415-874-5039


Adam FillySenior Vice President

415-516-9843


Adam Filly | Paragon Commercial Brokerage | 415.874.5031 | [email protected] | www.adamfilly.com | License: 01354775Davis Nguyen | Paragon Commercial Brokerage | 415.874.5039 | [email protected] | License: 0159978Dimitris Drolapas | Paragon Commercial Brokerage| 415.874.5033 | [email protected] | License: 01883765

The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Paragon Commercial Brokerage has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

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OFFERED At: $10, 500,000

PROPERTY SUMMARY | 493 EDDY STREET

• Prominent Corner Mixed-Use Building

• 52 Rooms – 28 Tourist Licenses & 24 SRO

plus 12 Unwarranted (Total of 64 Rooms)

• 30 Rooms Currently Vacant

• 3 Retail Spaces

• Private Baths in 10 Rooms – Potential to Add

More

• Incredible Repositioning Opportunity

• Near Civic Center, Van Ness Corridor and

Financial District

The subject property is a 55 unit mixed use SRO hotel located on the corner of Hyde and Eddy Streets. The building consists of 52 rooms (28 Tourist and 24 SRO), and 3 Retail spaces (A Liquor Store, Korean restaurant, and a Vietnamese Restaurant). Additionally there are 12 unwarranted rooms. Currently 30 of the rooms are vacant. There is also the possibility of adding private baths to approximately 15 additional rooms. This provides the owner with the potential to have private baths for nearly all of the Tourist rooms, which will command a significantly higher daily rate. The rooms are on a master-meter for gas and electricity. The three retail spaces are separately metered for utilities. 493 Eddy Street is centrally located and provides easy access to Civic Center, the Van Ness Corridor, Union Square, and the Financial District. This unique asset offers investors an opportunity to add-value through remodeling of vacant rooms, additions of baths, and a more efficient management style.



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PROPERTY OVERVIEW

Year Built 1907Parcel Number 0337/015Unit Mix 52 SRO Rooms (28 Tourist and 24 SRO),

3 Retail, plus additional 12 Unwarranted SRO Parking NoneSq.Feet 15,520 Lot Sq. Feet 3,281 Neighborhood Tenderloin

FINANCIAL OVERVIEW | 493 EDDY STREET

FINANCIAL OVERVIEW

Price: $10,500,000Price per SqFt: $677Price per Unit: $190,909GRM: 9.2Cap Rate: 6.5%Annual Income (estimate): $1,135,742,69Annual Expenses: $448,493



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FINANCIAL OVERVIEW | 493 EDDY STREET

New Property Taxes (est. @ 1.1723%) $123,092

Insurance $20,000

PGE $23,628

Water $21,087

Garbage $16,884

Cleaning Supplies $19,896

Room Supplies $23,400

Fire Safety $2,544

Pest Control $4,668

Cable and Phone $5,220

Elevator $4,500

On-Site Manager $45,000

Management 10% $113,574

Repairs & Maintenance $25,000

Total Expenses: $448,493

*These expenses are an estimate and will differ for those operating the hotel in a different manner. Buyer’s should use their own estimates when considering this investment.

ESTIMATED ANNUAL EXPENSES*

Gross Operating Income: $1,135,743

Less Expenses: 39.5% $448,493

Net Operating Income: $687,250

ESTIMATED OPERATING INCOME



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Unit Type Rent Market Rent StatusSRO Rooms

201 Office $1,150.00 $1,150 Formerly lounge

202 Office $0.00 $1,150 Mngr Office

203 Office $0.00 $1,150 Conference room

214 Laundry $0.00 $1,150 Laundry

215* Kitchen $0.00 $1,150 Kitchen

216* Kitchen $0.00 $1,150 Kitchen

302 SRO $1,195.00 $1,150

303 SRO $700.00 $1,150

305 SRO with Private Bath $1,250.00 $1,300

306 SRO $1,000.00 $1,150

308 SRO $1,395.00 $1,150

309 SRO $453.00 $1,150

310 SRO $550.00 $1,150

312 SRO $995.00 $1,150

316 SRO $650.00 $1,150

317 SRO $1,150.00 $1,150

401 SRO $578.36 $1,150

402 SRO $1,500.00 $1,150

403 SRO $600.00 $1,150

407 SRO $800.00 $1,150

408 SRO $1,195.00 $1,150

409 SRO $800.00 $1,150

410 SRO $400.00 $1,150

411 SRO $640.00 $1,150

412 SRO $600.00 $1,150

415 SRO $995.00 $1,150

417 SRO $740.00 $1,150

501 SRO $600.00 $1,150

503 SRO $600.00 $1,150

505 SRO with Private Bath $1,295.00 $1,300

509 SRO $650.00 $1,150

510 SRO $600.00 $1,150

512 SRO $995.00 $1,150

515 SRO $550.00 $1,150

516 SRO $995.00 $1,150

517 SRO $640.00 $1,150

Monthly SRO Income Gross $26,261.36 $41,700

Minus Vacancy Factor 10% $2,626.14 $4,170

Monthly SRO Total $23,635.22 $37,530

*Rooms 215 and 216 currently combined and used as kitchen.

RENT ROLL | 493 EDDY STREET



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Unit Type Rent Market RentTourist Rooms Total of 28 Rooms* Daily Rate Monthly Total (30-days)

6 Tourist with Private Bath $100.00 $18,000.00 $18,000.00

22 Tourist without Private Bath $80.00 $52,800.00 $52,800.00

Monthly Tourist Total Gross $70,800.00 $70,800.00

Minus Vacancy Rate 20% $14,160.00 $14,160.00

Monthly Tourist Total $56,640.00 $56,640.00

Annual SRO $283,622.69 $450,360.00

Annual Tourist $679,680.00 $679,680.00

Total Residential Income $963,302.69 $1,130,040.00

Retail

499 Eddy Cadilac Liquor $7,280.00 $7,280.00

250 Hyde Izakaya Hon $5,040.00 $5,040.00

248 Hyde Mong Thu $2,050.00 $2,050000

Monthly Retail $14,370.00 $14,370.00

Annual Retail (three commercial) $172,440.00 $172,440.00

Total Rental Income $1,135,742.69 $1,302,480.00

* These rents are estimates and will differ for those operating the hotel in a different manner. Buyer’s should use their own estimates when considering this investment.

RENT ROLL | 493 EDDY STREET



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The information contained in the offering is confidential, furnished solely for the purpose of review by a prospective purchaser of the subject property. The material is based in part upon information supplied and in part upon information obtained by Paragon Commercial Brokerage from sources it deems reasonably reliable. No warranty or representation, expressed or implied, is made by the owner, Paragon Commercial Brokerage, or any of their respective affiliates, as to the accuracy or completeness of the information contained herein or any other written or oral communication transmitted to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communications. Without limiting the generality of the foregoing, the information shall not be deemed a representation of the state of affairs of the subject property or constitute an indication that there has been no change in the business or affairs of the subject property since the date of preparation of the information. Prospective purchasers should make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the site.

The Offering Memorandum was prepared Paragon Commercial Brokerage. It contains select information pertaining to the subject property and does not purport to be all inclusive or to contain all of the information which a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond control and, therefore, are subject to material change or variation. An opportunity to inspect the subject property will be made available to qualified prospective purchasers.

In the Offering certain documents and other materials are described in summary form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents.

The Offering is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by Paragon Commercial Brokerage or the owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the subject property described herein.

The owner and Paragon Commercial Brokerage expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offer to purchase the subject property and/or to terminate discussions with any party at any time with or without notice. The owner shall have no legal commitment or obligation to any interested party reviewing the Offering or making an offer to purchase the subject property unless a written agreement for the purchase of the subject property has been fully executed and delivered by the owner and such party and any conditions to the owner’s obligations there under have been satisfied or waived and then only to the extent expressly provided for therein. Paragon Commercial Brokerage is not authorized to make any representations or agreements on behalf of the owner.

CONFIDENTIALITY & DISCLAIMER

CONFIDENTIALITY & DISCLAIMER | 493 EDDY STREET

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SAN FRANCISCO $10,500,000 - LoopNet · 2018. 9. 18. · SAN FRANCISCO $10,500,000 MIXED-USE HOTEL |...

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