1541 Sacramento Offering Memorandum
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<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.