+ 13,500 SF
+ 1,500 SF Rooftop
RARE FULL BUILDING OPPORTUNITY
SAN FRANCISCO, CALIFORNIA
1122 Howard St LLC
Block: 3727, Lot: 012,
1122 Howard Street, San Francisco, CA 94103
Ownership free & clear of all encumbrances
Zoning: Red = Residential.
Warehouse, Retail, Restaurant & Club, Light Manufacturing, Art & Photo Studios
Building and property floor-plate: 50’ x 90’
First & Mezzanine Floors built in full, 4500 sq feet each
Top Floor Approx. 50 x 84 = 4200 sq feet
Current Building Height 40’ Legal Height is 55’
Total Building Size: 13,200 square feet
One operational commercial freight elevator existing
In the past we had the tenants pay for and deduct their share monthly for all expenditures including renovations, security, maintenance, insurance, and property taxes. We can negotiate NEW LEASES that will give us a better net deal, since rental values have increased over 35% in the last 5 years.
We expect LOI’s from full building tenants soon that will be in the range of $35,000 to $38,000
Current Lease: Top Floor- Benchling, Lease Expiry April 30, 2018
Gross Rental $18,000 per Month, Currently Paying $15,242 Net
Renewable Value: $18,000 Net, This is the premium floor with best layout, natural lighting, high ceilings, skylights and great city view
Expired Lease: Pure Action Sports
First & Mezzanine
Gross Rental was $10,000 per Month, Net Collected $9,284
These floors were substantially renovated this year, were under construction since May, Ready now for new tenant
Renewable Value: Between $17,000 to $22,000 Net for BOTH Floors
Comparative in Area between $475 and $580
Cost to construct a new “warm-shell” structure is similar, not including land value
Translates to $6.25 Million (Low) to $7.65 Million (High)
Using Cap Rate of 4.5% and Running expenses of $72,000 PA Building Value will be Minimum $7.73 Million
Concept: Develop Residential on Roof. Build 2-3 penthouses on roof with loft in each unit. Floor plate for each about 1,000 square feet plus 500 foot loft.
Value completed: $1150 to $1300 per square foot.
Rental Value; $60 to $70 per square foot per year.
Estimated cost to develop $2 million all-in, Estimated improvement value in excess of $3 million, with ROI over 10% on cost if rented out, over 50% if sold outright. Needs a private passenger elevator to the penthouses
Development of ground & mezzanine floor into exclusive executive club.
Development Costs: $600,000 plus liquor license $300,000 (one-time fees) includes legal fees and licensing.
Total Rent Value Developed: $35,000 to $40,000 monthly
Current Rental Value: About $20,000
Incremental Value: Minimum $15,000 per month, with ROI over 20%
The operator of the club should net about $1,200,000 annually after expenses but before calculating rent (we are not interested in operating it, just providing the venue) We need to hold the liquor license in our entity for security.