529 Stevenson, San Francisco

SAN FRANCISCO RESIDENTIAL
INVESTMENT OPPORTUNITY

EXCLUSIVE ADVISOR

FINANCIAL DISTRICT
WEST COAST’S
FINANCIAL CAPITAL

UNION SQUARE SOMA

WORLD-CLASS SHOPPING EPICENTER OF TECHNOLOGY
AND TOURISM MOVEMENT IN THE US

MID-MARKET MARKET STREET

SAN FRANCISCO’S MOST SOUGHT
AFTER & DYNAMIC MARKET

THE OFFERING

Newmark Knight Frank, as exclusive advisor, is pleased to present the opportunity to acquire The Lofts @ 529
Stevenson Street (the “Property”), a four-story 60-unit loft apartment in San Francisco, California. Converted
in 2015 to residential, The Lofts @ 529 Stevenson Street consist of two buildings with unique studio and junior
1 bedroom units, each with high ceilings that include approximately 165 square feet of elevated loft space and
brand new interior finishes. The Property includes a substantial amount of open space including a roof terrace and
outdoor courtyard, offering residents a relaxing atmosphere amid its bustling urban location. In-place rents are
approximately 15 percent below market, allowing an investor to quickly increase their yield as tenant leases expire.
With the Property’s ideal location in Mid-Market, San Francisco’s most dynamic and transformative neighborhood,
residents can walk to work in leading companies and to many of the best restaurants and amenities that the City
has to offer. Mid-Market has experienced a significant transformation over just the last five years, with substantial
residential development and the influx of many of the world’s leading technology tenants including Twitter, Uber,
Square, WeWork, and Spotify. With its tremendous accessibility, prime location, and the continued strong market
demand for residential product, The Lofts @ 529 Stevenson Street represent a unique opportunity for an investor
to acquire a well-positioned multifamily property in one of San Francisco’s most desirable neighborhoods.

Floor Plan No. % of Total Avg. SF Total SF
STUDIO
PROPERT Y SUM MARY JR 1 BR 8 13.3% 458 3,667
1 BR
ADDRESS 26 43.3% 567 14,738
529 Stevenson Street BMR UNITS
San Francisco TOTAL/AVG. 17 28.3% 563 9,565
YEA R B U I LT / RE NOVAT E D
1924 / 2015 9 15.0% 480 4,319
UNITS
60 units 60 100.0% 538 32,289
AVG UN I T S IZ E S F
538 square feet SIGNIFICANT CAPITAL RENOVATION
COMMERC IAL SPAC E
441 square feet Originally built in 1924, The Lofts @ 529 Stevenson recently underwent
NET RENTABLE SQ FT a conversion and full renovation in 2015. The Property is mapped for
32,730 condominium units with each unit having its own APN.
LOT SIZE
10,646 square feet STRONG OCCUPANCY
(0. 2 4 a c res)
DENSITY The Lofts @ 529 Stevenson Street have enjoyed strong occupancy
240 du /ac re since its recent conversion. The overall market vacancy in Mid-Market
stands at 96%, enabling easy lease-up for the Property.
AVG MA RKET RENT
$2,558 EXCELLENT TRANSPORTATION ACCESS
AVG MA RKET RENT PS F
$4.77 The underground MUNI Metro and a BART station are located only half a
OCCUPANCY (10/11/1 7) block away at Powell Street, along with San Francisco’s historic cable car
90%+ system. Dozens of MUNI bus lines stop within blocks from the Property
ZONING and Market Street, San Francisco’s main arterial, is just a block away.
C-3-G (Downtown General)

RECENTLY RENOVATED MULTIFAMILY PROPERTY WITH
SIGNIFICANT UPSIDE

QUALITY IMPROVEMENTS BELOW MARKET RENTS

All units are furnished with high-end stainless steel In-place tenants at The Lofts @ 529 Stevenson Street
appliances, European-style cabinets, quartz countertops, are approximately 15 percent below market, allowing
large commercial grade windows, and high-end washer- for significant increase in cash flow once leases expire
dryer in unit. Each unit is separately metered for PG&E, at the end of their one-year term and are re-leased at
allowing for a new owner to efficiently divide utility costs. market rents.

MODERN AMENITY PACKAGE CONDOMINIUM MAPPED

The Property also features a modernized amenity package The Lofts @ 529 Stevenson Street are individually
that includes a tranquil bamboo courtyard, signature roof mapped as condominiums with its own separate APN,
deck, and indoor and outdoor workspaces and lounges. allowing a new owner to market and sell individual units
to diversify their investment strategy.

TRANSFORMATIVE MID-MARKET LOCATION

UNMATCHED RETAIL AND AMENITIES BOOMING DEVELOPMENT ACTIVITY

The Property is centrally located in one of the most Over 5,000 residential units are either under
vibrant areas in San Francisco in close proximity to construction, approved, or planned in Mid-Market,
high-end retail and restaurants at Westfield Centre, furthering the transformation of the neighborhood in to
Yerba Buena, and Union Square. Other amenities one of San Francisco’s premier addresses. Forest City’s
include first-class museums, dozens of luxury hotels, 5M project at 901 Mission Street, and Cypress Equities’
and award-winning public space at Yerba Buena 6x6 development, both adjacent to the site, will add
Gardens. additional retail and open space that will only bolster the
desirability of the location.
MID-MARKET RENAISSANCE

With over $3.5 billion invested in commercial development
over the past four years, Mid-Market has become the
neighborhood of choice for many of San Francisco’s
leading technology companies including Twitter, Uber,
Square, WeWork, Spotify, Dolby, and Zendesk.

STRONG MARKET FUNDAMENTALS

HOUSING SHORTAGE

The San Francisco residential market is extremely well-positioned with
outstanding long term population and employment growth projections.
Since 2011, the population of San Francisco increased by 78,000 people,
but the City added fewer than 19,000 housing units.

PROPOSITION C CONSTRAINS SUPPLY

In June 2016, San Francisco passed Proposition C, which increased the
affordability requirements for new residential developments in the City.
Since that time, proposed projects have dramatically decreased with
only about 1,500 market rate units proposed in San Francisco, placing
a premium on existing multifamily properties such as The Lofts @ 529
Stevenson Street.

STRONG RENTS AND LOW VACANCY

Residential rental rates remain strong with monthly rental rates exceeding
$6.00 per square foot for many units in new developments along with an
overall vacancy rate of sub-5 percent among Class A residential buildings
in San Francisco. Mid-Market commands some of the highest rents in
San Francisco at an average of over $5.29 PSF/Mo. among comparable
properties.

NATION’S TOP ECONOMY

Driven by sustained job creation in the Bay Area’s thriving technology
sector, San Francisco has consistently been one of the top growing
economies in the country. Since 2011 more than 90,000 jobs were added
in the City and job growth is expected to remain strong over the next
decade.

SIGNIFICANT RECENT TENANT ACTIVITY

Through September 2017, leasing velocity has surged in San Francisco
with Facebook committing to 450,000 square feet, Airbnb taking 300,000
square feet, Google taking 180,000 square feet, Amazon taking 175,000
square feet, and Uber committing to another 500,000 square feet.
Venture capital continues to target the San Francisco Bay Area more
than any other market in the U.S., investing $7.7 billion of the $18.3 billion
(42 percent) of the capital commitments made year-to-date in 2017.

EXECUTIVE SUMMARY 7

INVESTMENT ADVISORS KYLE KOVAC JESSE MILLMAN DANIEL CRESSMAN

MICHAEL TAQUINO Executive Managing Director Senior Managing Director Executive Managing Director
41 5.477.9220 408.982.8 459 41 5. 28 8.3 62 2
Executive Managing Director k kov a c @ n ew m a r kc c a r ey. c o m j m i l l m a n @ n ew m a r kc c a r ey. c o m d c r e s s m a n @ n ew m a r kc c a r ey. c o m
41 5.477.9200 CA License #01731229 C A License #01 734742 CA License #00849877
mta q u i n o @ n ew m a r kc c a rey. c o m
CA License #01431337

DEBT & EQUITY ADVISORS

MANDY LEE RAMSEY DAYA CHRIS MORTIZ

Director Vice Chairman Managing Director
41 5.4 4 5.51 03 41 5.399.8085 41 5.399.8083
mlee @newmarkccarey.com [email protected] chris. mortiz @newmarkccarey.com
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