579 & 587 Burnett Avenue · Located just steps from Portola Drive, 579 & 587 Burnett Avenue provides easy access to the 280-Free-way and adjacent neighborhoods: The Sunset, West Portal

579 & 587 Burnett Avenue Offering Memorandum - pg. 1

Offering Memorandum579 & 587 Burnett AvenueMult i fami ly Investment Opportunity | Twin Peaks - San Francisco, CA

Table of Contents

Showing Schedule

Offering Summary ................................3-5

Financial Overview ...............................6-7

Property Photographs ..........................8-13

Amenities Map ......................................14

Public Transportation ...........................15

Location Map ........................................16

Aerial of Subject Property ...................17

- Tuesday October 29, 2019 | 12:00 PM - 1:30 PM

- Tuesday November 5, 2019 | 12:30 PM - 2:00 PM

- Tuesday November 12, 2019 | 12:30 PM - 2:00 PM

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]

www.theDLTeam.com

Colliers International 101 2nd Street, 11th Floor San Francisco, CA 94105


Offering Summary - OverviewColliers International is pleased to present 579 & 587 Burnett Ave, a two (2) building portfolio located near the summit of Twin Peaks in San Francisco. The two properties, constructed in the 1960’s, feature open concept floor plans and private decks with panoramic views of the City. Both buildings have street facing garages and covered carports that can be accessed by a driveway on the west side of the property.

579 & 587 Burnett Avenue are comprised of one-bedroom and two-bedroom units. The units have large living rooms with skylights for additional lighting, and views looking back towards downtown San Francis-co. Some of the units have been renovated with laminate woodlike floors, wood cabinetry, granite kitchen countertops and stainless steel appliances throughout. The current ownership has completed the required seismic work and is in compliance with the San Francisco Soft Story Ordinance.

Located just steps from Portola Drive, 579 & 587 Burnett Avenue provides easy access to the 280-Free-way and adjacent neighborhoods: The Sunset, West Portal and Noe Valley. Burnett Avenue is just a short drive from incredible dining, retail and entertainment options offered at Diamond Heights Shopping Center, Stonestown Galleria, Lakeshore Plaza, the vibrant Castro district and the 24th street commercial corridor in Noe Valley. Residents can enjoy a quick walk to Twin Peak Blvd and enjoy 360-Degree views of the beau-tiful San Francisco skyline. It’s close proximity to Market Street provides a direct link to the downtown, the financial district and other parts of the City.

For the investors, this property provides the opportunity to acquire a well-maintained apartment portfolio in the Twin Peaks neighborhood of San Francisco with upside appreciation potential in rents.

Property InformationUnit Mix: 1 - one bedroom, 1 bath

3 - two bedroom, 1.5 bath

1 - two bedroom 2.5 bath

5 car parking

Kitchens: Stainless steel appliances (in remodeled units)

Wood cabinets

Tile or granite countertops

Disposals & Dishwashers (in remodeled units)

Electric Hotpoint stove/oven

Stainless steel refrigerators

Bathrooms: Tile or granite counters

Decorative tile or wood flooring

Cabinet sinks with larger mirrors

Tile surrounds on bath

Tub shower combinations

Bedrooms: Carpeted floors

Large closets

Large windows with blinds

Living Room Area: Laminate plank woodlike flooring

Fireplace (in some two – bedroom units)

Private decks with sliding glass doors

Note: Seismic retrofit complete

Office with full bath will be delivered vacant

Building SystemsFoundation: Concrete (seismically upgraded and in

compliance)

Structure: Woodframe

Façade: Wood with T1-11 (stucco around the base)

Roof Composition & Age: Rolled composite (2013)

Electrical Service: Separately metered w/ circuit breakers in units (250 AMP Service)

Gas Service: Single meter

Fire Protection System: Fire sprinklers in basement, smoke detectors in hallways and in units

Water Heater: Electric wall heat

Hot Water: 2 – 60 Gallon tanks (American Standard)

Plumbing: Mostly copper some galvanized

Elevator: None

Common AreasCommon Areas: Terrazzo flooring

Door Entry System: Nutone Door Buzzer

Front Landing: Terrazzo flooring

Lobby: Terrazzo flooring

Lobby Lighting: Decorative modern chandelier

Landing Areas: Terrazzo flooring

Garbage: Located on the west side of the property

Laundry: Coin operated washer/dryer (Maytag)

Storage: Used by current owner

Fireplace: Located in some 2 bedroom units


579 Burnett Avenue - Property InformationAddress: 579 Burnett Ave, San Francisco, CA 94131

District: Twin Peaks

Property Type: Apartment Building

APN: 2799-017

Building Square Feet: 4,994 Sq Ft

Lot Size: 2,260 square feet

Floors: 3

Constructed: 1963

Zoning: RM-1

Offering Summary - Property Details


587 Burnett Avenue - Property Information Address: 587 Burnett Ave, San Francisco, CA 94131

District: Twin Peaks

Property Type: Apartment Building

APN: 2799-043

Building Square Feet: 11,538 Sq Ft

Lot Size: 4,791 square feet

Floors: 3

Constructed: 1963

Zoning: RM-1

Property InformationUnit Mix: 6 - one bedroom, 1 bath

5 - two bedroom, 1.5 bath

1 - two bedroom 2.5 bath

11 car parking

Kitchens: Stainless steel appliances (in remodeled units)

Wood cabinets

Tile or granite countertops

Disposals & Dishwashers (in remodeled units)

Electric Hotpoint stove/oven

Stainless steel refrigerators

Bathrooms: Tile or granite counters

Decorative tile or wood flooring

Cabinet sinks with larger mirrors

Tile surrounds on bath

Tub shower combinations

Bedrooms: Carpeted floors

Large closets

Large windows with blinds

Living Room Area: Hardwood floors

Fireplace (in some two – bedroom units)

Private decks with sliding glass doors

Notes: Seismic retrofit complete

Office with full bath will be delivered vacant

Building SystemsFoundation: Concrete (seismically upgraded and in compli-

ance)

Structure: Wood frame

Façade: Wood with T1-11 (stucco at around the base)

Roof Composition & Age: Rolled composite (2013)

Electrical Service: Separately metered w/ circuit breakers in units (800 AMP Service)

Gas Service: Single meter

Fire Protection System: Fire sprinklers in basement, smoke detectors in hallways and in units

Water Heater: Electric wall heat

Hot Water: Two – 109 Gallon Tanks (Bradford & White)

Plumbing: Mostly copper some galvanized

Elevator: Single cylinder (serviced by Paramount)

Offering Summary - Property Details

Common AreasCommon Areas: Terrazzo flooring

Door Entry System: Warman Buzzer System

Front Landing: Terrazzo flooring

Lobby: Terrazzo flooring

Lobby Lighting: Pendant lighting

Landing Areas: Terrazzo flooring

Garbage: Located on the west side of the property

Laundry: Coin operated (2) washers / (2) dryers (Speed Queen) – rented through Wash

Storage: Individual storage for each unit

Fireplace: Located in some 2 bedroom units


Financial Overview579 & 587 Burnett Avenue, San Francisco, CA 94131Financial Summary

Total Sale Price $8,000,000

Down Payment $4,000,000

Number of Units 17

Price/Unit $470,588

Combined Gross Square Feet 16,532

Price/Square Foot $484

CAP Rate-Current 4.28%

CAP Rate-Pro Forma 7.98%

GRM-Current 14.96

GRM-Pro Forma 9.53

Year Built 1962/1963

Combined Lot Size 7,052

Combined FinancingLoan Amount $4,000,000

Loan Type Proposed New

Interest Rate 3.41%

Program 5 Year Fixed

Loan to Value 50%

579 Burnett Ave 587 Burnett AveGross Income & NOI Current Proforma Current Proforma

Annual Gross Income $169,452 $265,582 $365,215 $574,099

Gross Potential Rent $162,769 $242,400 $349,116 $521,400

Vacancy (3.5%) $5,697 $8,484 $12,219 $18,249

AGI $163,755 $257,098 $352,996 $555,850

Expenses $54,074 $54,074 $120,586 $120,586

NOI $109,681 $203,024 $232,409 $435,264

Operating Expenses Current Proforma Current Proforma

Property Taxes $29,075 $29,075 $63,965 $63,965

Special Assessment Tax $436 $436 $959 $959

Insurance $2,247 $2,247 $3,216 $3,216

Elevator Maintenance $- $- $6,348 $6,348

Repairs & Maintenance $2,500 $2,500 $6,000 $6,000

Utilities- PG&E $2,829 $2,829 $4,342 $4,342

Water & Sewer $4,775 $4,775 $5,797 $5,797

Scavenger/Recycling $2,616 $2,616 $8,343 $8,343

Fire Safety Compliance $650 $650 $796 $796

Management Fees $6,550 $6,550 $14,120 $14,120

Landscaping $542 $542 $948 $948

Janitorial $1,854 $1,854 $5,752 $5,752

Operating Expenses $54,074 $54,074 $120,586 $120,586

Loan Quote 10/15/2019: Chase Commercial Banking - 5 Year Fixed at 3.41% at 1 point (Loan is time sensitive & subject to change)

Combined Cash Flow After Debt Service Current Proforma

Less Debt Service $213,137 $213,137

Cash Flow $128,953 $425,150

Cash on Cash Return 3.22% 10.63%

Expenses as % of Gross 33% 21%

Expenses per Unit $10,274 $10,274


Financial Overview (cont.)579 & 587 Burnett Avenue, San Francisco, CA 94131

579 Burnett Avenue - Rent Roll Unit No. Unit Type Sqft Rent CI Pass Through Market Rent Move In Date Note

1 1 Bedroom, 1 Bath 800 $1,706.00 $160.65 $2,950 9/6/2011 Financial Hardship/application pending2 2 Bedroom, 2.5 Bath 1,000 $1,837.41 $160.65 $4,500 5/1/20103 2 Bedroom, 1.5 Bath 1,000 $3,500.00 $4,250 10/9/20164 2 Bedroom, 1.5 Bath 1,000 $2,287.31 $160.65 $4,250 2/1/20105 2 Bedroom, 1.5 Bath 1,000 $4,233.33 $4,250 1/16/2016

Monthly Rent $13,564.05 $481.95 $20,200 Laundry $75.00 $75Parking $0.00 $1,250Storage $0.00 $125

Capital Improvement Pass Through $481.95 $482Monthly Total $14,121.00 $22,132Annual Total $169,452 $265,582 Upside 57%

NotesProjected rents - Rentometer.com

Laundry projected at $15 per unit

Parking projected at $250 per space

Storage projected at $25 per space

Units1 Bedroom, 1 bath 1

2 Bedroom, 1.5 Bath - 3


Total - 5

587 Burnett Avenue - Rent Roll Unit No. Unit Type Sqft Rent CI Pass Through Market Rent Move In Date Note

1 1 Bedroom, 1 Bath 800 $2,909.79 $2,950 9/1/20162 1 Bedroom, 1 Bath 800 $1,685.20 $154.60 $2,950 11/13/20093 1 Bedroom, 1 Bath 800 $1,284.48 $125.19 $2,950 6/1/1994 Financial hardship/application pending4 1 Bedroom, 1 Bath 800 $1,116.19 $108.79 $2,950 4/1/1997 Financial hardship/application pending5 1 Bedroom, 1 Bath 800 $2,595.00 $2,950 1/5/20196 1 Bedroom, 1 Bath 800 $3,193.90 $154.60 $2,950 7/1/2015 Notice to vacate 10/31/20197 2 Bedroom, 2.5 Bath 1,000 $3,577.00 $4,500 12/2/20178 2 Bedroom, 1.5 Bath 1,000 $1,825.97 $154.60 $4,250 6/1/19969 2 Bedroom, 1.5 Bath 1,000 $2,230.94 $154.60 $4,250 1/1/199610 2 Bedroom, 1.5 Bath 1,000 $4,250.00 $4,250 Vacant11 2 Bedroom, 1.5 Bath 1,000 $2,232.39 $154.60 $4,250 6/1/200412 2 Bedroom, 1.5 Bath 1,000 $2,192.13 $154.60 $4,250 8/28/2009

Monthly Rent $29,092.99 $1,161.58 $43,450Laundry $180.00 $180Parking $0.00 $2,750Storage $0.00 $300

Capital Improvement Pass Through $1,161.58 $1,162Monthly Total $30,434.57 $47,842Annual Total $365,215 $574,099 Upside 57% Upside 57%

NotesProjected rents - Rentometer.com

Laundry projected at $15 per unit

Parking projected at $250 per space

Storage projected at $25 per space

5 of the 12 Units have been remodeled

Units1 Bedroom, 1 Bath - 6



Parking - 11







Firefly Restaurant Casa Mexicana Restaurant 1001 Castro Street Bank of America

Rin’s Thai La Boulangerie Whole Foods Market ATM Bank of America

Bacco Neighbor’s Corner Reliance Market Chase Bank

Holy Kitchen Anchor Oyster Bar Noe Hill Market Sterling Bank & Trust

Barney’s Gourmet Burgers Fable Buffalo Whole Food & Grain Co Wells Fargo

Lupa Trattoria Hamburger Mary’s Mollie Stone’s Citi Bank ATM

Noe Valley Bakery Harvey’s Safeway US Bank Branch

Valley Tavern Mama Ji’s

Novy Restaurant Poesia

Fresca Kasa Indian Eatery


Restaurants & Bars Convenience & Grocery Stores Banks & ATM’sX X X

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Neighborhood Amenities

+Sutter Pacific

medicalCenter

579 & 587 Burnett Avenue, San Francisco, CA 94131

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Bart / Muni

WITH IMMEDIATE ACCESS TO ONE OF THE NATION’S BEST PUBLIC TRANSIT SYSTEMSThe area around 579 & 587 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. 579 & 587 Burnett Avenue is within walking distance of a variety of public transit systems, 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.

Muni Rapid Bus Service

Public Transportation579 & 587 Burnett Avenue, San Francisco, CA 94131

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Subject Property579 & 587 Burnett Ave

Forest Hill

West Portal

Castro

16th St & Mission

24th St & Mission


Location579 & 587 Burnett Avenue, San Francisco, CA 94131

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Confidentiality & Disclaimer StatementThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 579 & 587 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 579 & 587 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 579 & 587 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 579 & 587 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 Map579 & 587 Burnett Avenue, San Francisco, CA 94131


www.theDLTeam.com

Offering Memorandum579 & 587 Burnett Avenue

Mult i fami ly Investment Opportunity | Twin Peaks - San Francisco, CA

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]

Documents

579 & 587 Burnett Avenue · Located just steps from Portola Drive, 579 & 587 Burnett Avenue provides easy access to the 280-Free-way and adjacent neighborhoods: The Sunset, West Portal