offering memorandum - loopnet...surveillance 6-camera monitoring system door entry system: coded...

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

Accepting offers as they come

Offering Summary ................................3-4

Financial Overview ...............................5-7

Property Photographs ..........................8-12

Amenities Map .....................................13

Public Transportation ...........................14

Aerial of Subject Property ...................15

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


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”.


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


Financial Overview1 Mallorca Way, San Francisco, CA 94123

Annual Gross Income Current Market Post Conversion

Gross Potential Income $495,600 $505,200 $505,200

Gross Potential Rent $469,200 $475,200 $475,200

Vacancy (5%) $14,076 $14,256 $14,256

AGI $481,524 $490,944 $490,944

Expenses $159,921 $160,305 $160,305

NOI $321,603 $330,639 $330,639

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 $6,000 $6,000 $6,000

*Management Fee $19,824 $20,208 $20,208

Total Operating Expenses $159,921 $160,305 $160,305

Current Market Post Conversion

Expenses as % of Gross 32% 32% 32%

Expenses per Unit $10,661 $10,687 $10,687

*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 4.63%

CAP Rate - Proforma 4.76%

GRM - Current 14.02

GRM - Pro Forma 13.76

Year Built 1927

Lot Size 2,760


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 $3,200 $3,200 $3,200 Vacant

102 studio, 1 bath $2,400 $2,400 $2,400 Vacant Conversion potential

103 1 bed, 1 bath $3,200 $3,200 $3,200 Vacant


201 1 bed, 1 bath $3,200 $3,200 $3,200 Vacant


203 1 bed, 1 bath $3,200 $3,200 $3,200 Vacant


*301 1 bed, 1 bath $3,200 $3,200 $3,200 Occupied Owner occupied

302 studio, 1 bath $1,000 $2,400 $2,400 4/1/1995 Conversion potential

303 1 bed, 1 bath $3,200 $3,200 $3,200 Vacant


2050 Commercial $2,000 $2,000 $2,000 Vacant 345

2054 Deleuce Jewelers $2,900 $2,000 $2,000 Month to Month 345 Long term tenant

2056 Commercial $2,000 $2,000 $2,000 Vacant 281

Monthly Income $39,100 $39,600 $39,600

4 Parking $900 $1,200 $1,200 1 leased and 3 vacant

Storage $100 $100 $100 In garage area

Bill Board $800 $800 $800

Laundry $400 $400 $400

Total Monthly Income $41,300 $42,100 $42,100

Annual Income $495,600 $505,200 $505,200

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

Laundry projected at $400

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 (see page 7 for construction estimate).

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.


Financial Overview (cont.)1 Mallorca Way, San Francisco, CA 94123

CONSTRUCTION BUDGET

Existing Conditions:• 11 of the 12 apartment units will be delivered vacant• 2 of the 3 retail spaces are vacant and 1 is on a month to month lease. They are small retail

spaces under 350 square feet. Potential to merge them into one larger space.• 3 of the 4 garage spaces are vacant (ADU Potential)• 1 Billboard sign is paying rent

Estimate of Construction Cost:• 12 apartment renovations @ $35,000 each = $420,000......................... $420,000• Electrical Upgrade @ $75,000............................................................. $75,000• Common Area Paint @ $7,500............................................................. $7,500• Common Area Carpets @ $6,000......................................................... $6,000• Common Area Lighting $ $2,500......................................................... $2,500• Exterior Painting @ $35,000............................................................... $35,000• Roof is in good condition, but budget $10,000 for maintenance............... $10,000• Boiler & Water Heater are in good condition. $10,000 for maintenance.... $10,000• Converting 3 Retail to Vanilla Shell Condition @ $18,000........................ $18,000• Soft Story/Seismic Upgrade @ $250,000 (Estimate)............................. $250,000• ADU Upgrades – Optional• 15% for Overhead, Plans, Permits and Fees @ $125,000.........................$125,000

TOTAL......... $950,000


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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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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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


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