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Premier Pacific Heights District Mixed-Use Property
CBRE Capital Markets, as exclusive advisor, is pleased to present the opportunity to acquire 2208 Fillmore Street
(the “Property”), a premier, 7,375 square foot high-street retail and residential jewel box strategically located in
San Francisco’s renowned Pacific Heights neighborhood. Positioned along the Fillmore Street Corridor – one of
the most desirable retail destinations in the City – the Property benefits from its location within a neighborhood
which boasts the highest per capita income in all of San Francisco.
2208 Fillmore Street’s unique location amid high-end retailers, world-class restaurants, trendy lounges & cafes,
and direct access to public transit, ensures consistently high foot traffic to the Property. Consisting of three
separate retail frontages across two floors including two residential units located on the upper level, 2208
Fillmore Street boasts expansive ceiling heights, plentiful natural light, and a classic San Francisco façade that
blends seamlessly into the fabric of the neighborhood. The ground floor retail consists of three separate tenant
spaces which are leased to Eileen Fisher, Illesteva, and La Mediterranee – all of which have been become staples
of the neighborhood.
With a weighted average retail lease term of 6.35 years, the Property provides investors a durable contractual
income stream. Although rent controlled, the residential units provide a mark-to-market opportunity during the
new owner’s hold period. 2208 Fillmore Street’s unique location in the heart of the Pacific Heights District, along
with its stable in-place cash flow, makes the purchase of the Property a highly attractive investment opportunity.
The Offering
FI L L MO R E ST
HIGH-STREET RETAIL AND RESIDENTIAL JEWEL BOX: 7,375 square foot property located in the world-
renowned Pacific Heights District along one of the
most desirable and top performing retail corridors in
San Francisco.
FULLY LEASED WITH IN-PLACE LEASE TERM: Fully leased asset to a diverse tenant base offering
stable cash-flow and downside protection.
HIGH-PROFILE RETAIL TENANCY: Eileen Fisher, La Mediterranee, and Illesteva are
all staples along the Fillmore Corridor and form
a cohesive destination of shopping and dining
experience
OUTSTANDING RESIDENTIAL FUNDAMENTALS: Investors are granted the ability to own two
premier residential units the nation’s top performing
residential market.
PACIFIC HEIGHTSCOW HOLLOW
PRESIDIOMARINA
FILLMORE
ADDRESS 2208 Fillmore Street, San Francisco
RENTABLE AREA 7,375 Square Feet
% LEASED 100%
STORIES Two Stories, Retail & Condo
SITE AREA 4,522 Square Feet
ZONING NCD (Neighborhood Commercial District)
SUBMARKET West of Van Ness
C A L I F O R NI A ST
Property Description
COMMANDING RETAIL PRESENCE: Consisting of approximately 4,500 square feet of premium retail space
along Fillmore Street, 2208 Fillmore Street boasts an outstanding retail
presence along one of San Francisco’s most desirable retail corridors.
PREMIER ANCHOR RETAILER: Eileen Fisher has been located at the Property since 2005 and has been a
staple to Fillmore Street’s retail corridor ever since. With an expiration date
of January 2026, Eileen Fisher offers investors captive tenancy allowing for
limited capital exposure. The company sells items in more than 60 stores
in 15 states for an estimated revenue of $350 million. La Mediterranee
is an award-winning Mediterranean restaurant that has been located
at the Property since 2008 and has been consistently voted “Best Middle
Eastern” and “Best Mediterranean” in the San Francisco Bay Area. Illesteva
is an independently owned eyewear brand with roots in Downtown New
York with production in Italy and France and is committed to the Property
through 2024.
RESIDENTIAL SECURITY AND UPSIDE: The two modernized classic residential units on the upper level of the
property offer an incredibly secure cash flow. The units are both below
market rate which provides upside upon rollover.
Irreplaceable Retail/Residential Asset
FULLY LEASED WITH IN-PLACE LEASE TERM OFFERING DOWNSIDE PROTECTION: Fully leased with a Weighted Average Lease Term (WALT) of 5.62 years, 2208
Fillmore Street offers investors a strong and immediate cash flow while also offering
downside protection with a variety of tenants and no retail rollover until 2024.
LIMITED CAPITAL OUTLAY: With no rollover until 2022 and fully leased to a stable tenant roster, investors
are able to benefit from limited out of pocket capital expenditures. Further, due to
the competitive nature of the Fillmore Street corridor, tenants are offered limited
relocation options making existing space highly desirable.
RESIDENTIAL CASH FLOW OFFERS DIVERSITY: Two 1,427 square foot residential units are located above the ground floor retail
with a separate entrance located at the rear of the property. The residential
portion of the property allows investors to hedge their investment with the most
desirable products in one of the tightest residential markets in the world.
Strong Protected Cash Flow
STRONG RETAIL CORRIDOR: Fillmore Street is one of the most important shopping districts on the West Coast and very high on the
expansion lists of top main-stay brands in addition to the elite emerging crowd. The wait for many of
these tenants to break in can be long, and limited vacancy often pushes the market toward key money.
For many brands, this is their only location in the market. New entrants to the street include the Frame
Denim flagship, Rag & Bone, Frye Boots, Space.NK, Aesop, Reformation, Freda Salvador, Paige Denim,
Equipment, Saje, James Perse, Paper Source and so many more. Digitally native brands, which spend
significant marketing dollars, do drive traffic and have been flocking to Fillmore as well. These tenants
include Minted, Ministry of Supply, Modern Citizen, the first Rothy’s flagship and ModCloth.
ADJACENT TO ONE OF THE NATION’S TOP HOUSING NEIGHBORHOODS: Pacific Heights is home to some of the most expensive houses in the world, specifically along Broadway
between Broderick and Lyon which has been dubbed “Billionaires Row.” The residential market is on the
rise, with listing prices increasing 16.6 percent year-over-year. The average listing price was $2.7 million
in 2017 and has reached $3.1 million in 2018.
PUBLIC TRANSIT & PARKING OPTIONS: Well-served by public transit, 2208 Fillmore Street is just a few steps away several MUNI stops offering
riders access to all of San Francisco. Less than a block away from the Property is 2485 Clay Street, a 400
stall parking garage, which serves as a starting point for many visitors to Fillmore Street and ensures
consistent foot traffic to the property.
Unparalleled Fillmore Street Location
STRONGEST OFFICE MARKET IN THE UNITED STATES: San Francisco continues to be the top performing tenant and investment market in the United
States. Average Class A office asking rates now hover at $86.00 per square foot while vacancy
remains steady at 3.2 percent. With over 5.0 million square feet of active tenant demand, the
outlook is positive for sustained growth.
TOP RESIDENTIAL MARKET IN THE UNITED STATES: Year-end data for 2018 shows another year-over-year appreciation in apartment prices, with
San Francisco now solidified as the country’s most expensive place to rent. As of November
the median rental rate for a one-bedroom apartment is $3,560/month which is up five
percent year-over-year. Located directly behind 2208 Fillmore is The Pacific, a 76-unit condo
project that opened in 2016. The project has been one of the most lucrative condo buildings
in San Francisco history with $300 million in sales and units selling as high as $4,000 per
square foot.
TIGHT PACIFIC HEIGHTS RETAIL MARKET: As of Q4 2018, vacancy in Pacific Heights stands at just 1.7 percent. In the last 5 years,
vacancy has remained sub 3 percent, reflective of high demand for prime retail space. Rental
rates for premier ground-floor retail space located on Fillmore Street and in some of the blocks
surrounding it can range between $100 to $165 per square foot.
MOLLY STONE’S
THE GROVEKEIHL’S
TROYA
RALPH LAUREN
RAG & BONE
ATHLETICA
WOODHOUSE FISH
FRYE COMPANY
MAC COSMETICS
CHOUQUET’S
POSH SALON
BLUE BOTTLE
FI L L MO R E ST
S AC R A M E NT O STC A L I F O R NI A ST RESTAURANTS
RETAIL
Excellent Market Fundamentals
FREDA SALVADOR
LA MEDITERRANEE
FRESCA FILLMORE
L’OCCITANE
CURBSIDE
K Y L E K O VA C Executive Vice Pres ident 415 .407 .7122 kyle .kovac@cbre .com CA License #01731229
M I C H A E L T A Q U I N O Executive Vice Pres ident 415 .378 .0460 mike . taquino@cbre .com CA License #01431337
Investment Advisors
Debt & Equity Advisors
M I K E WA L K E R Senior Vice Pres ident 415 .772 .0278 michael . l .walker@cbre .com CA License #01843658
B R A D Z A M PA Executive Vice Pres ident 415 .772 .0225 brad.zampa@cbre .com CA License #011743866
G I A N C A R L O S A N G I A C O M O Senior Associate 415 .772 .0347 giancarlo . sangiacomo@cbre .com CA License #00409987
L A U R A S A G U E S Senior Vice Pres ident 415 .772 .0122 laura . sagues@cbre .com CA License #01888298
Retail Investment Advisor
© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. PM_STUDIO. JAN.2019
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