ffering memorandum - loopnet€¦ · sf moma moscone center west ... at 7,333 sf and with on-site...

OFFERING MEMORANDUM

A n E x c e p t i o n a l S o u t h o f M a r k e t R e d e v e l o p m e n t O p p o r t u n i t y o r O w n e r / U s e r B u i l d i n g

3 4 H A R R I E T S T R E E T S A N F R A N C I S C O, C A

DISCLAIMER WE OBTAINED THIS INFORMATION FROM SOURCES WE BELIEVE TO BE RELIABLE. HOWEVER, WE HAVE NOT VERIFIED ITS ACCURACY AND MAKE NO GUARANTEE, WARRANTY OR REPRESENTATION ABOUT IT. IT IS SUBMITTED SUBJECT TO THE POSSIBILITY OF ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING OR WITHDRAWAL WITHOUT NOTICE. WE INCLUDE PROJECTIONS, OPINIONS, ASSUMPTIONS OR ESTIMATES FOR EXAMPLE ONLY, AND THEY MAY NOT REPRESENT CURRENT OR FUTURE PERFORMANCE OF THE PROPERTY. YOU AND YOUR TAX AND LEGAL ADVISORS SHOULD

CONDUCT YOUR OWN INVESTIGATION OF THE PROPERTY AND TRANSACTION.

Exclusively Marketed By: Dave Noravian Lic. 01419471 415.772.0178 [email protected] Sherman Chan Lic. 01046769 408.453.7488 [email protected]

Capital Markets | Investment Properties

34 Harriet Street | Offering Memorandum |

AREA OVERV IEW Capital Markets | Investment Properties

San Francisco Bay

North Beach Russian Hill

Financial District

SOMA

The Marina Pacific Heights

Union Square

Civic Center

Mid-Market

34 Harriet St

Victoria Manolo Draves Park

Westfield Centre Metreon

Yerba Buena Gardens

Moscone Center South

SF MOMA

Moscone Center West

Mint Plaza

Intercontinental

5M Project

Mosso

City Mews

Yerba Buena Lofts

Avalon Yerba Buena

Museum Parc

St. Regis Hotel

Bay Bridge

Whole Foods Peet’s Coffee

Market Street

Mission Street

Folsom Street

Harrison Street 5

th S

treet

Howard Street

EXECUTIVE SUMMARY


EXECUT IVE SUMMARY

34 HARRIET STREET CBRE as exclusive advisor is pleased to offer for sale 34 Harriet Street, a 7,333 sf commercial building located in the heart of San Francisco’s vibrant SOMA district. Built in 1925, the building is a two-story structure with ground floor commercial and parking. The second floor has one residential unit, which is approximately 1,300 SF. The Property offers an outstanding opportunity for developers, owner/users or investors. The Property is zoned Mixed Use (MUG) which allows for housing over ground floor commercial. The property zoning permits a Floor Area Ratio (FAR) of 3 to 1 which could allow for 11,067 sf of new product.


INVESTMENT SUMARY

Address 34 Harriet Street, San Francisco, CA (between Howard and Folsom)

Price Best Offer

Entitlement Status Unentitled

Tenancy One residential tenant paying $3,000 per month Harriet Street


EXECUT IVE SUMMARY

INVESTMENT HIGHLIGHTS Prime Urban Infill Redevelopment Site: Located on a quiet

street in the heart of SOMA, the Property benefits from favorable zoning which would allow for residential or mixed-use development.

Central Location: The property has immediate access to both I-280 and US-101. In addition, it is located just blocks from the proposed Central Subway underground stop at Fourth and Folsom which will allow immediate access to the North Financial District as well as Mission Bay to the south.

Strong Residential Demand: The San Francisco residential market is perennially supply-constrained. New units are currently selling in excess of $1,100 per square foot.

Numerous Nearby Amenities: The property is within walking distance of several nearby amenities including Westfield Shopping Center, world-renowned Union Square, the Metreon, and museums such as SFMOMA, the Contemporary Jewish Museum, and the future Mexican Museum.

Potential Owner/User Building: At 7,333 sf and with on-site parking, the Property could be ideal for an owner/user seeking full-building identity.


Project Overview

Address 34 Harriet Street

Land Square Footage 3,689 sf (0.89 acres)

Building Square Footage (Per Public Records)

7,333 sf

Number of Floors Two

Parcel Number 3731-099

Development Overview

Zoning MUG

Zoning Description Mixed Use – General: Allows for housing over ground floor commercial

Height Limit 45 feet

Current Floor Area Ratio 3 to 1

Potential Developable Square Footage

11,067 sf


EXECUT IVE SUMMARY

PARCEL 3731-099



EXECUT IVE SUMMARY


ZONING MAP MUG – MIXED USE – GENERAL DISTRICT* The Mixed Use-General (MUG) District is largely comprised of the low-scale, production, distribution, and repair uses mixed with housing and small-scale retail. The MUG is designed to maintain and facilitate the growth and expansion of small-scale light industrial, wholesale distribution, arts production and performance/exhibition activities, general commercial and neighborhood-serving retail and personal service activities while protecting existing housing and encouraging the development of housing at a scale and density compatible with the existing neighborhood. Housing is encouraged over ground floor commercial and production, distribution, and repair uses. New residential or mixed use developments are encouraged to provide as much mixed-income family housing as possible. Existing group housing and dwelling units would be protected from demolition or conversion to nonresidential use by requiring conditional use review. Hotels, nighttime entertainment, movie theaters, adult entertainment and heavy industrial uses are not permitted. Office is restricted to the upper floors of multiple story buildings.

* Source: Section 840 of the San Francisco Planning Code

MARKET OVERVIEW


MARKET OVERV IEW - RES IDENT IAL Capital Markets | Investment Properties

San Francisco Monthly Effective Rent As of Q1 2014, average monthly effective rent for the San Francisco MSA was $2,631. This represents a 6.9% increase over the trailing 12 months, among the best rent growth rates in the U.S. San Francisco apartment rents continue as expansion that began with the post-recession recovery in Q1 2010 and have posted positive gains the vast majority of the trailing 18 quarters, leading all markets nationally over that period. During the expansion nominal rents eclipsed the prior cycle peak in 2011. Rent growth during this period has significantly outpaced inflation, leading to valuable gains in real rent levels. Asking rents and effective rents for the latest period were indistinguishable, reflecting the negligible level of concessions in the market currently.



San Francisco Occupancy As of Q1 2014, occupancy was 95.8% which was 10 bps higher than a year earlier. This occupancy is in line with the 15 year historical average. During that last downturn the lowest mark for San Francisco occupancy was 94.95% in Q3 2009. Overall, San Francisco is an exceptionally tight and stable apartment market that fluctuates very slightly around the full occupancy level.


RES IDENT IAL LEASE COMPARABLES Capital Markets | Investment Properties

SoMa Submarket In the SoMa submarket, rents have grown 45% since Q4 2009 and current market vacancy registers only 2.5% (Source: Axiometrics). As a result, all new development delivered in SoMa this cycle has been absorbed immediately.


RES IDENT IAL LEASE COMPARABLES Capital Markets | Investment Properties

AVA 55 Apartments


MARKET OVERV IEW - OFF ICE Capital Markets | Investment Properties

SAN FRANCISCO’S BOOMING OFFICE MARKET

COMPANY DEMAND TOPS SPACE SUPPLY FUELING SIZABLE OFFICE RENT GROWTH Tenant demand exceeds vacant office space supply for the first time since 2000. The shortage is acute for large blocks of 100,000+ sq. ft., which have dropped from 22 to 8 in the past three years. Eleven tenants are currently seeking large blocks.


MARKET OVERV IEW - OFF ICE Capital Markets | Investment Properties

SOMA

+87% Rent Growth Since

Q4 2009

YERBA BUENA


Q4 2009

SOMA WEST


Q4 2009

AREA OVERVIEW


AREA OVERV IEW


38 HARRIET Located immediately adjacent to the Property, 38 Harriet is a SMARTPSACE® residential building developed by Panoramic Interests and manufactured by Zeta. The development contains twenty-three energy and space efficient studio apartments, each measuring 295 sf. The project has also added decorative pavement and exterior landscaping along Harriet Street. The units have several innovative design features and high quality finishes, including transforming furniture, bay windows, Plyboo sustainable hardwood floors, and 300+ cubic feet of storage. For transportation, the building offers secure bike storage an on-site City Carshare. 38 Harriet has several green features, including LEED Platinum certification, solar-thermal water heating, EcoBatt insulation, Energy Star appliances, low-flow plumbing, and rain water harvesting. Source: www.panoramic.com, www.lifeedited.com, and www.curbedsf.com


AREA AMENIT IES


CBRE Broker Lic. 00409987

101 California St, 44th Flr

San Francisco CA 94111

Dave Noravian

Lic. 01419471

415.772.0178

[email protected]

Sherman Chan

Lic. 01046769

408.453.7488

[email protected]

© 2014 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.


ffering memorandum - loopnet€¦ · sf moma moscone center west ... at 7,333 sf and with on-site...

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