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3559 JACKSON STREETS A N F R A N C I S C O , C A L I F O R N I A Offering Memorandum
CONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only bythe party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and toestablish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to theincome or expenses for the subject property, the future projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federalregulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’splans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtainedfrom sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoeverregarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.© 2018 Marcus & Millichap. All rights reserved.
NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affil iation with, or sponsorship orendorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing ofMarcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
NON-ENDORSEMENT & DISCLAIMER NOTICE
3 5 5 9 J AC KSO N ST R EE TS A N F R A N C I S C O , C A L I F O R N I A
EXCLUSIVELY LISTED BY
OFFICES NATIONWIDE AND THROUGHOUT CANADA
WWW.MARCUSMILLICHAP.COM
SANFORD G. SKEIEFirst Vice President
San FranciscoCell 415.370.1525
Office [email protected]
License CA 00982336
JOHN W. GARRETTSenior AssociateSan Francisco
Cell 415.652.8431Office 415.625.2131
[email protected] CA 01421403
BRAD W. PENNINGTONSenior Vice President
San FranciscoCell 415.310.3090
Office [email protected]
License CA 00599791
INVESTMENT HIGHLIGHTS
► Prestigious Presidio Heights Location
► Well-Maintained Pride of Ownership Property
► Nine Large, Updated Units with High Ceilings
► Attractive Architecture and Common Areas
► One Vacant Unit at Close of Escrow
► Soft-Story Retrofit Completed with CFC (2017)
► Three Blocks to Sacramento Street Shopping
► One Block to the Presidio
► Beautiful Rear Garden
3559 JACKSON STREETP R E S I D I O H E I G H T S – T R O P H Y M U LT I F A M I L Y
O F F E R I N G P R I C E
$ 7 , 3 0 0 , 0 0 0
Marcus & Millichap, as the exclusive listing agent, is pleased to present
the opportunity to acquire 3559 Jackson Street, a trophy nine-unit
apartment building located in one of the world’s most exclusive
neighborhoods, San Francisco’s Presidio Heights. This pride-of-
ownership property consists of seven large one-bedroom units, one
large studio, and a gorgeous top-floor, six-room, two-bath “owner’s
unit,” with bay views. All units have very attractive architecture, many
upgrades, and high ceilings. The building is accessed through an
elegant street level lobby and there is a beautiful, lush garden with
patio at the rear of the building.
Presidio Heights is arguably the most prestigious neighborhood in San
Francisco. The average single-family home 2018 sale price is over
$8,000,000. The Presidio, Julius Kahn Playground, the Presidio Golf
Course and the Golden Gate National Seashore are steps away. In
addition, high-end shopping and dining is available within blocks on
Sacramento Street as well as the Laurel Village Shopping Center.
3 5 5 9 J A C K S O N S T R E E T // O F F E R I N G M E M O R A N D U M 7
INVESTMENT OVERVIEW
A one-bedroom unit and a two-car tandem garage will be delivered
vacant at the Close of Escrow. In addition, there is a “bonus,”
unwarranted efficiency unit that could be used as a guest room or
office. The two deep garages can accommodate multiple cars, and
there is a large sprinklered storage area that offers expansion options.
The mandated San Francisco soft-story retrofit has been completed
and a Certificate of Final Completion was issued in 2017. The three-
story building, built in 1922, is wood-frame construction over a concrete
foundation. The exterior of the building was painted within the last year.
The units feature hardwood floors. All units are separately metered for
gas and electric and each unit has individual circuit breakers. The
building is heated by steam heat radiators. The roof is bitumen. The
laundry machines are owned by the landlord (one washer & dryer).
This is a highly desirable, and very well-maintained property which
provides an outstanding acquisition opportunity for an investor or
owner-occupier in one of the nation’s most prestigious neighborhoods.
3 5 5 9 J A C K S O N S T R E E T // O F F E R I N G M E M O R A N D U M 8
INVESTMENT OVERVIEW (CONT.)
3559 JACKSON STREET
PROPERTY INFORMATION
Property Address 3559 Jackson StreetSan Francisco, CA 94118 Soft Story Completed, CFC Issued 2017
Neighborhood Presidio Heights Hot Water 100 Gallons (2015)
APN 0987-019 Heat Steam Heat Radiators
Number of Units 9 Electrical Circuit Breakers (400 Amp Service)
Number of Stories 3 Storage 9 Storage Closets, Large Storage Room
Year Built 1922 Laundry Common: 1-Washer, 1-Dryer (Owned)Unit 14/16: 1-Washer, 1-Dryer (Owned)
Building Size 9,850 sf (tax record) Parking 2 Garages (4 Cars Tandem)
Parcel Size 6,065 sf Roof Flat, Bitumen
Utilities: Water / Sewer Owner Pays Framing / Siding Wood Frame, Stucco Siding
Utilities: Gas / Electric Owner Pays Common / Tenants Pay Individual Units Foundation Concrete
Garbage Removal Owner Pays Fire Safety Sprinklers in Storage Area
3 5 5 9 J A C K S O N S T R E E T // O F F E R I N G M E M O R A N D U M 10
PROPERTY DETAILS
Summary Returns Scheduled
Price $7,300,000 CAP Rate 3.26%
Price Per Unit $811,111 GRM 18.63
Price Per SqFt $741.12 Cash-on-Cash 3.26%
3 5 5 9 J A C K S O N S T R E E T // O F F E R I N G M E M O R A N D U M 11
As of September 2018
Unit No. Unit Type Rent Move In Notes
2 Studio $2,600 6/1/17
4 1 Bedroom $3,550 4/21/18
6 1 Bedroom $3,595 7/1/16
8 1 Bedroom $3,600 VACANT Assumes market rent of $3,600/month
10 1 Bedroom $3,480 4/1/16
12 1 Bedroom $2,818 6/15/04 Incl. $101 in seismic passthrough
14/16 2 Bedroom / 2 Bath $6,095 9/7/11 Incl. $101 in seismic passthrough; Garage included; In-unit Laundry
18 1 Bedroom $3,326 2/1/13 Incl. $101 in seismic passthrough
20 1 Bedroom $3,595 8/1/16
Monthly Rent $32,659
Parking $400 Estimated for Vacant 2-Car Garage
Storage $200 Actual
Laundry $230 Average
Monthly Total $33,489
RENT ROLL
3 5 5 9 J A C K S O N S T R E E T // O F F E R I N G M E M O R A N D U M 12
Income Scheduled Per Unit Notes
Gross Scheduled Rent 391,908 43,545 Assumes vacant unit rented at $3,600/month
Physical Vacancy (11,757) 3.0% (1,306) Estimated
Total Vacancy ($11,757) 3.0% ($1,306)Effective Rental Income 380,151 42,239
Other IncomeParking & Storage 7,200 800 $200/mo Storage + Est. $400/mo for two-car garage
Laundry 2,760 307 2018 January – July Annualized
Total Other Income $9,960 $1,107Effective Gross Income $390,111 $43,346
Expenses Scheduled Per Unit Notes
Real Estate Taxes 86,871 9,652 1.172% + $1,315.10 in Direct Assessments
Insurance 7,732 859 Actual
Utilities - PG&E 9,590 1,066 2018 January – July Annualized
Utilities - Water & Sewer 6,875 764 “
Trash Removal 5,215 579 “
Landscaping 1,440 160 “
Cleaning 3,600 400 “
Call Box 800 89 “
Repairs & Maintenance 9,000 1,000 Estimate
General & Administrative 1,500 167 “
Management Fee 19,506 5% 2,167 “
Total Expenses $152,129 $16,903Expenses as % of EGI 39.0%Net Operating Income $237,982 $26,442
OPERATING STATEMENT
UNIT 14/16 INTERIOR
COMMON AREA
UNIT INTERIOR
UNIT INTERIOR
EXCLUSIVELY LISTED BY
3559 JACKSON STREET
SANFORD G. SKEIEFirst Vice President
San FranciscoCell 415.370.1525
Office [email protected]
License CA 00982336
JOHN W. GARRETTSenior AssociateSan Francisco
Cell 415.652.8431Office 415.625.2131
[email protected] CA 01421403
BRAD W. PENNINGTONSenior Vice President
San FranciscoCell 415.310.3090
Office [email protected]
License CA 00599791
