03.06.2021 Views

1541 Sacramento Offering Memorandum

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<strong>1541</strong> SACRAMENTO<br />

OFFERING MEMORANDUM<br />

Paul Warrin | Applegarth+Warrin Team<br />

415.407.8019 | paul@sir.com<br />

Lic. 01364693<br />

Christina McNair | Team McNair<br />

415.613.5563 | c.mcnair@ggsir.com<br />

Lic. 01183576


Overview<br />

<strong>1541</strong> <strong>Sacramento</strong> is a trophy Edwardian 7-unit building in a coveted<br />

Nob Hill location, steps from the many shops and restaurants along<br />

the vibrant Polk and California Street corridors. The property<br />

consists of 7 spacious 1-Bedroom apartments, a utility room/office,<br />

enclosed storage, 1 car parking, and a deep backyard. Two of the<br />

seven apartments will be delivered vacant. The four units in the back<br />

of the building have nice city-view outlooks. The building has been<br />

meticulously maintained, and the soft-story seismic upgrade has been<br />

completed. Public and private transportation are located in the<br />

immediate vicinity, with easy access to downtown. Some of the city’s<br />

most popular cafés and restaurants, like Acquerello and Swan’s<br />

Oyster Depot, are within a block or two. This is a rare opportunity to<br />

acquire a unique property with tremendous long-term upside in one<br />

of the San Francisco’s most desirable neighborhoods. With a walk<br />

score of 99 and transit score of 100, <strong>1541</strong> <strong>Sacramento</strong> is a renter’s<br />

paradise.<br />

Offered at $3,895,000


Property Details<br />

Property Information<br />

Address <strong>1541</strong> <strong>Sacramento</strong> Street, San Francisco 94109<br />

Unit Mix Seven 1-Bedroom Units + Utility Room/Office<br />

District Nob Hill<br />

Property Type Apartment building<br />

# of Units 7 Units<br />

Parking Independent one car parking<br />

Stories 4 floors<br />

APN 0249-027A<br />

Building Square Feet 7,645 Square feet (per tax records)<br />

Lot Size 3,781 Square feet<br />

Constructed 1916<br />

Zoning RM-2<br />

Seismic Compliance Yes<br />

Building Systems<br />

Foundation Concrete foundation; soft story retrofit complete<br />

Structure Wood-frame structure<br />

Façade Stucco<br />

Rear of Building Asbestos shingle siding<br />

Roof Composition Modified Bitumen<br />

Gas Service 8 separate meters – 7 units + boiler<br />

Electrical Service 7 meters<br />

Fire Protection System Fire sprinklers<br />

Fire Escapes Yes<br />

Heat Source Boiler / steam heat<br />

Plumbing Copper water lines<br />

Elevator No<br />

Stairwell Carpeted<br />

Windows Mix of wood & metal<br />

Common Areas<br />

Entrance Gated entry<br />

Mailboxes Lobby of building<br />

Lobby Wood floor<br />

Walls Wood paneled, sheetrock, plaster<br />

Lobby Lighting Center mount light and sconce lighting<br />

Landing Areas & Floors Hardwood, composite, concrete, stone, other<br />

Laundry N/A<br />

Storage On ground level<br />

Outdoor Space Rear yard<br />

<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 3


Financial Overview<br />

Financial Summary<br />

Sale Price $3,895,000<br />

Down Payment $1,558,000<br />

Loan Amount $2,337,000<br />

Number of Units 7<br />

Price/Unit $556,428.57<br />

Gross Square Feet 7645<br />

Price/Square Foot $509.48<br />

Cap Rate (Current) 2.87%<br />

Cap Rate (Pro Forma) 4.00%<br />

GRM (Current) 18.72<br />

GRM (Pro Forma) 24.98<br />

Annual Gross Income Current Proforma<br />

Gross Income $208,079 $256,200<br />

Vacancy (3.5%) ($7,283) ($8,967)<br />

Adjusted Gross Income $200,796 $247,233<br />

Expenses ($88,884) ($91,290)<br />

Net Operating Income $111,912 $155,943<br />

Cash Flow Analysis Current Proforma<br />

Net Operating Income $111,912 $155,943<br />

Debt Service (at 3.20%) ($74,784) ($74,784)<br />

Cash Flow $37,128 $81,159<br />

Cash on Cash Return 2.38% 5.21%<br />

Annual Operating<br />

Expenses Current Per Unit % Proforma Per Unit % Notes<br />

Property Taxes $46,662 $6,666 52% $46,662 $6,666 51% 1.198% of Sales Price<br />

Insurance $7,524 $1,075 8% $7,524 $1,075 8% Based on last year total<br />

Water $4,090 $584 5% $4,090 $584 4% Based on last year total<br />

Trash $5,804 $829 7% $5,804 $829 6% Based on last year total<br />

PG&E $12,300 $1,757 14% $12,300 $1,757 13% Based on last year total<br />

Repairs & Maintenance $2,100 $300 2% $2,100 $300 2% Est at $300/unit per yr<br />

Property Management $10,404 $1,486 12% $12,810 $1,830 14% Based on 5% of Gross<br />

Total Operating<br />

Expenses $88,884 $12,698 100% $91,290 $13,041 100%<br />

<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 4


Rent Roll<br />

Unit Unit Type Rents Parking Market Rents Move-In Date Notes<br />

1 1 bed/1 bath $905.03 $3,000.00 10/7/1981<br />

2 1 bed/1 bath $1,652.88 $3,000.00 12/1/2009<br />

3 1 bed/1 bath $2,900.00 $3,000.00 2/23/2019<br />

4 1 bed/1 bath $2,432.00 $3,000.00 7/1/2012<br />

5 1 bed/1 bath $3,100.00 $3,000.00 10/19/2019<br />

6 1 bed/1 bath $3,000.00 $3,000.00 vacant<br />

7 1 bed/1 bath $3,000.00 $3,000.00 vacant<br />

Monthly Income $16,989.91 $21,000.00<br />

Garage $350.00 $350.00 Vacant, small car only<br />

Total Monthly<br />

Income<br />

$17,339.91 $21,350.00<br />

Annual Income $208,078.92 $256,200.00 23% Upside<br />

<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 5


Location<br />

Subject Property<br />

1633-39 Washington St<br />

<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 6


Neighborhood<br />

Restaurants<br />

1. Acquerello<br />

2. Aicha<br />

3. House of Prime Rib<br />

4. Nourish<br />

5. Mymy<br />

6. Gusto Pinsa Romana<br />

7. Maison Danel<br />

8. 1760<br />

9. Miller’s Rest<br />

Cafes/Shops<br />

1. Starbuck’s<br />

2. Peet’s Coffee<br />

3. Moka Coffee<br />

4. Staples<br />

5. Picnic<br />

6. California Cowboy<br />

7. Enoteca Vino Nostro<br />

8. Argonaut Book Shop<br />

9. High Trails Cycles<br />

Essentials<br />

1. Trader Joe’s<br />

2. Whole Food’s<br />

3. Le Beau Market<br />

4. Village Pets & Supplies<br />

5. Chase Bank<br />

6. Ace Hardware<br />

7. CVS Pharmacy<br />

8. Marvel Cleaners<br />

9. EV Charging Station<br />

Recreation<br />

1. Public Tennis Courts<br />

2. CorePower Yoga<br />

3. Huntington Park<br />

4. Social Hall SF<br />

5. BodyRok Polk<br />

6. Community Garden<br />

7. Core40 Fitness<br />

8. The Regency Ballroom<br />

9. CA Marital Athletics<br />

<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 7


Transportation<br />

<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 8


Aerial<br />

<strong>1541</strong> SACRAMENTO<br />

<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 9


Property Photos<br />

<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 10


<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 11


<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 12


<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 13


<strong>1541</strong> <strong>Sacramento</strong> Street <strong>Offering</strong> <strong>Memorandum</strong> | 14


<strong>1541</strong> <strong>Sacramento</strong><br />

Paul Warrin | Applegarth+Warrin Team<br />

415.407.8019 | paul@sir.com<br />

Lic. 01364693<br />

Christina McNair | Team McNair<br />

415.613.5563 | c.mcnair@ggsir.com<br />

Lic. 01183576<br />

The information contained herein has been provided by sources deemed reliable, but no representation or warranty is made as to its accuracy or completeness. Any projections are an<br />

estimate based on assumptions believed to be reasonable, but no assurance can be given that the projections will be achieved. All information is subject to errors, omissions, changes,<br />

and can be withdrawn without notice, and seller expressly disclaims any obligation to supplement or update any information. Sotheby’s International Realty and the Sotheby’s<br />

International Realty logo are registered service marks used with permission. Each Office Is Independently Owned And Operated.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!