901-Battery-OM

THE NORTH WATERFRONT & JACKSON SQUARE’S PREMIER CREATIVE OFFICE BUILDING _ SAN FRANCISCO, CASAN FRANCISCO

BATTERY

EXCLUSIVE ADVISOR INVESTMENT OPPORTUNITY

NGKF Capital Markets



BATTERY SAN FRANCISCO

OFFERING MEMORANDUM

EXECUTIVE SUMMARY 04
LOCATION OVERVIEW 14
PROPERTY OVERVIEW 30
DEVELOPMENT OVERVIEW 44
FI NANCI AL ANALYS I S 50
TENANT INFORMATION 60
M ARKET ANALYSIS 72
REGIONAL OVERVIEW 86

INVESTMENT ADVISORS M I C H A E L TAQ U I N O DANIEL CRESSMAN MANDY LEE
Executive Managing Director Executive Managing Director Associate Director
KYLE KOVAC 415. 477. 920 0 415.288.3622 4 15 . 4 4 5 . 5 10 3
Executive Managing Director m t a q u i n o @ n e w m a r k c c a r e y. c o m d c r e s s m a n @ n e w m a r k c c a r e y. c o m m l e e @ n e w m a r k c c a r e y. c o m
415. 477.9 22 0 CA License #01431337 CA License #00849877 CA License #01942461
k k o v a c @ n e w m a r k c c a r e y. c o m
CA License #01731229

LEASING ADVISOR DEBT & EQUITY ADVISORS

BART O’CONNOR R A M S E Y DAYA CHRIS MORITZ
Senior Managing Director Vice Chairman Managing Director
415.713.1818 415.399.8085 415.399.8083
b o c o n n o r @ n e w m a r k c c a r e y. c o m r a m s e y. d a y a @ n e w m a r k c c a r e y. c o m ch r i s . m o r i t z @ n e w m a r k c c a r e y. c o m
CA License #01244495 CA License #01248046 CA License #01860037

4 EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY 5

6 EXECUTIVE SUMMARY

THE OFFERING

Newmark Cornish & Carey – NGKF Capital Markets, as exclusive advisor, is pleased to present the
opportunity to acquire 901 Battery Street (the “Property”), the North Waterfront and Jackson Square’s
premier creative office building, located in San Francisco, California. Consisting of 89,904 rentable
square feet on four stories and a lower level, 901 Battery Street boasts cutting edge interior finishes,
soaring ceiling heights, abundant natural light, and unimpeded waterfront views. 96 percent occupied,
the Property features an attractive and stable income stream from a strong and diverse tenant base.
The opportunity exists to substantially increase the Property’s yield through strategic lease-up of the
second floor, rolling below market rate leases to market, and incorporating approximately 7,600 square
feet of additional square footage into rentable office space by interconnecting the ground floor and
lower level. Further, the Property includes a separate 4,100 square foot parcel used as a parking
structure with 24 spaces across the street at 998 Sansome Street which can be entitled and developed
as a boutique mixed-use project under an 84 foot height limit. The Property’s combination of strong
in-place income, significant recent building upgrades, and ability to further add value in one of the
most desirable submarkets in all of San Francisco, makes the purchase of 901 Battery Street a highly
attractive investment opportunity.

u Highly-Desirable Creative Improvements: Soaring ceiling
heights, wide open layouts, excellent water views, and
abundant natural light.

u Consistent Income Stream: Attractive in-place income from a
diverse and strong tenant roster.

u Value-Add Potential: Opportunity to increase yield and realize
future potential with strategic leasing and expansion of the
office square footage.

PROPERTY PROFILE

B U I L D I N G A D D R E S S . . . . . . . . . . . . . . . . . . . . . 901 Battery Street, San Francisco
R E N TA B L E A R E A . . . . . . . . . . . . . . . . . . . . . . . . . 89,904 Rentable Square Feet
O C C U PA N C Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Percent
T E N A N C Y . . . . . . . . . . . . . . . . . . . . . . . . . Viscira, BAR Architects, KMD Architects
S TO R I E S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Four, plus Lower Level
O F F I C E S I T E A R E A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18,906 Square Feet
F R O N TAG E S . . . . . . . . . . . . . . . . . . . . . . . . . . . Battery Street and Vallejo Street
Z O N I N G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2 (Community Business)
PA R K I N G A D D R E S S . . . . . . . . . . . . . . . . . . . . 998 Sansome Street, San Francisco
PA R K I N G S I T E A R E A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,120 Square Feet
S TA L LS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Stalls
S U B M A R K E T . . . . . . . . . . . . . . . . . . . . . . . . . .North Waterfront / Jackson Square

EXECUTIVE SUMMARY 7

FINANCIAL DISTRICT

FERRY BUILDING SAN FRANCISCO JACKSON SQUARE

BATTERY 998 SANSOME PARKING
BROADWAY ST

VALLEJO ST
SANSOME ST
BATTERY ST

THE EMBARCADERO WATERFRONT
EXPLORATORIUM GREEN ST

NORTH WATERFRONT

COIT TOWER

8 EXECUTIVE SUMMARY

PREMIUM CREATIVE OFFICE BUILDING WITH
AT TRACTIVE CASH FLOW

SIGNIFICANT RECENT CAPITAL INVESTMENT: Current ownership has invested $5.4 million in
substantial building improvements since 2013. These improvements include lobby and façade
renovations, base building upgrades, state-of-the-art tenant improvements, and a seismic retrofit
which put the Property’s SEL and SUL at 10% and 16%, respectively.

FULLY OCCUPIED PROPERTY: 901 Battery Street is 96 percent occupied by a diverse group of tenants
in technology, communications, and architecture that provide attractive cash flow with significant
upside as leases roll to market. With 40 percent of the tenancy rolling by 2018, and in-place tenant
rents approximately 30 percent below market, the opportunity exists to immediately improve the
Property’s yield.

HIGHLY-DESIRABLE CREATIVE IMPROVEMENTS: 901 Battery Street boasts unique features including
ceiling heights ranging from 13’8” all the way up to 15’10” on the fourth floor, large and expansive
windows, and unimpeded views overlooking the San Francisco Bay. With floor plates that average
19,000 square feet, 901 Battery Street is an ideal property for mid-sized technology tenants seeking
creative space.

EXECUTIVE SUMMARY 9

SIGNIFICANT UPSIDE POTENTIAL

RECONFIGURING THE SECOND FLOOR: The second floor, which has historically been multi-tenant
occupancy, can be reconfigured as a more valuable two-tenant or single-tenant use as all of the in-
place tenants expire by the end of 2018.
PARTIAL LOWER LEVEL CONVERSION: Approximately 7,600 square feet of the lower level space can
be converted to office space by interconnecting the floors via an internal stairwell once Viscira’s lease
expires in 2020. Design concepts have already been completed for this addition.
MIXED-USE DEVELOPMENT OF PARKING STRUCTURE: Located in one of San Francisco’s most
desirable neighborhoods, the 4,120 square foot lot at 998 Sansome Street can be redeveloped as
a boutique mixed-use project featuring office, retail, and residential. A feasibility study along with
renderings have been prepared by architect Charles Bloszies.
ENHANCED VALUE FROM ROOF: The opportunity exists for a new owner to enhance the Property with
the addition of a previously approved roof deck that would take advantage of the stunning Bay views.
In addition, 901 Battery Street has the rare ability to mount rooftop dishes which is especially valuable
to media companies.

10 EXECUTIVE SUMMARY

HIGHLY-DESIRABLE LOCATION

CHARMING NORTH WATERFRONT-JACKSON SQUARE NEIGHBORHOOD: Recognized for its rich
history and distinct architecture, North Waterfront and Jackson Square are among the most desirable
neighborhoods in San Francisco. These neighborhoods boast many of the City’s best restaurants and
lounges, trendy retail boutiques (Shinola, Filson, Tailor’s Keep), well-maintained parks, and quaint
streetscapes adjacent to the beautiful San Francisco Bay.

DIVERSE TENANT BASE: The North Waterfront and Jackson Square has historically been home to a
diverse tenant base including professional services, large retail companies, and media and advertising.
Increasingly, technology and venture capital firms have been moving into the neighborhood with
notable companies such as Esurance, Intel, Azure Capital Partners, and Seed Change now calling the
submarket home.

READILY ACCESSIBLE TO PUBLIC TRANSIT: The Property is readily accessible to multiple forms of
transportation including MUNI light rail and Golden Gate Transit less than one block away. BART, the
Bay Area’s main commuter rail, and the San Francisco Ferry are both about a 10-minute walk away.

E X E C U T I V E S U M M A R Y 11

SAN FRANCISCO 1Q 2017
MARKET SNAPSHOT

M A R K E T S I Z E . . . . . . . . . . . . . .78,962,807 SF
VACANCY RATE . . . . . . . . . . . . . . . . . . . . . 5.8%
C L A S S A A S K I N G R AT E S . . . . . . . . . . . $71.30
T E N A N T D E M A N D . . . . . . . . . . . 6.3 million SF

EXCELLENT MARKET FUNDAMENTALS

STRONGEST MARKET IN THE UNITED STATES: San Francisco continues to be the top performing tenant
and investment market in the United States. Average Class A asking rates now stand at $71 per square foot
while vacancy remains steady at 5.8 percent. With over six million square feet of active tenant demand, the
outlook is positive for sustained growth.
NORTH WATERFRONT / JACKSON SQUARE: At a combined vacancy rate of 5.6 percent, the North
Waterfront-Jackson Square submarkets have a consistent history of strong occupancy. In recent months,
the submarket has seen an increase of activity and new leases being signed in the $70 - $80 per square
foot range.
SIGNIFICANT RECENT TENANT ACTIVITY: In the month of March, 2017 alone, leasing velocity surged in San
Francisco with Google taking 180,000 square feet at Rincon Center, Uber committing to another 500,000 square
feet in Mission Bay, and Amazon, AirBnB, and Facebook all with new substantial space requirements. Venture
capital continues to target the San Francisco Bay Area more than any other market in the U.S., investing $24.9
billion of the $58.6 billion (42 percent) of the capital commitments made in 2016.

12 EXECUTIVE SUMMARY

EXECUTIVE SUMMARY 13

TRANSACTION GUIDELINES

OWNERSHIP: Confidential

INTEREST OFFERED: Fee Simple

TERMS: Ownership is interested in all cash offers to purchase

PRICE: The Property is being offered without an asking price

D E B T: The Property will be delivered unencumbered by any debt

PROPERTY TOURS: All registered buyers are encouraged to tour the Property

OFFERS TO PURCHASE: All offers to purchase should be directed to the following
Newmark Cornish & Carey Professionals:

INVESTMENT ADVISORS:

KYLE KOVAC M I C H A E L TAQ U I N O DANIEL CRESSMAN MANDY LEE
Executive Managing Director Executive Managing Director Executive Managing Director Associate Director
415.477.9220 415.477.9200 415.288.3622 415.445.5103
[email protected] [email protected] [email protected] [email protected]
CA License #01731229 CA License #01431337 CA License #00849877 CA License #01942461

NEWMARK CORNISH & CAREY
One Bush Street, Suite 1500, San Francisco, CA 94104

14 LOCATION OVERVIEW

LOCATION OVERVIEW

LOCATION OVERVIEW 15

16 LOCATION OVERVIEW

NORTH WATERFRONT /
JACKSON SQUARE

The North Waterfront / Jackson Square is a
premier historic district at the northern border
of the Financial District stretching to the
waterfront. It is widely considered one of the
most attractive and architecturally significant
neighborhoods in San Francisco, offering an ideal
combination of diverse businesses, exceptional
shopping and dining, and beautiful streets and
landscaping. Historically, the district served as
the gateway for sailors and merchants during
the Gold Rush in the mid-1800s and then as
an art-centric business district following the
earthquake of 1906. In recent years, upscale
retailers such as Shinola, Eden & Eden, Tailor’s
Keep, and Iron & Resin have transformed North
Waterfront / Jackson Square into a major retail
destination. North Waterfront / Jackson Square
has traditionally been home to a diverse tenant
base including professional services (Keker & Van
Nest), large retail companies (Williams Sonoma,
Levi Strauss & Co.), and media and advertising
(McCann Worldgroup). Increasingly, technology
and venture capital firms are taking space in the
neighborhood with notable companies such as
Esurance, Intel, Azure Capital Partners, and Seed
Change now calling the submarket home.

“Jackson Square is the new
Sand Hill Road, said venture capitalist

Greg Gretsch, managing director at
Jackson Square Ventures, which has
$1.5 billion under management, and

recently moved their offices from
Menlo Park to San Francisco’s Jackson

Square neighborhood, a historic
part of the city dating back to the
1850s that is now attracting the new

digerati.”

— Wall Street Journal

LOCATION OVERVIEW 17

BATTERYSAN FRANCISCO SANSOME ST.

BROADWAY FRONT BATTERY
ST. ST.

THE GREEN ST.

EMBARCADERO WATERFRONT

18 LOCATION OVERVIEW NEARBY CAFES
CAFE DESTIJL
HOLE IN THE WALL COFFEE PARLOR 1255

REVEILLE COFFEE CO.

CAFE TRIESTE THE STATION SF JACKSON PLACE CAFE

LOCATION OVERVIEW 19

NEARBY LOUNGES

15 ROMOLO BARBAROSSA LOUNGE CHURCH KEY

THE BATTERY

COMSTOCK SALOON GRUMPY’S THE DEVIL’S ACRE

20 LOCATION OVERVIEW

BOUTIQUE RETAILERS

ALTON LANE EDEN & EDEN FILSON

SHINOLA

IRON & RESIN LA BOUTIQUE TAILOR’S KEEP

LOCATION OVERVIEW 21

PROMINENT RESTAURANTS

COQUETA THE SLANTED DOOR PARK TAVERN

ROKA AKOR

BOCADILLOS KUSAKUBE PIPERADE

22 LOCATION OVERVIEW

NEARBY AT TRACTIONS

FERRY BUILDING
The Ferry Building is a popular San Francisco destination that was redeveloped into a gourmet
marketplace with outdoor restaurants, cafes, and office space in 2003. The Ferry Building also acts
as San Francisco’s primary ferry terminal, connecting the city to Marin County and the East Bay, and
is host to the Ferry Plaza Farmer’s Market, one of the busiest farmer’s markets in the region.

COIT TOWER THE EXPLORATORIUM
Coit Tower, which has been a fixture of the San The Exploratorium is a popular hands-on science
Francisco skyline since its completion in 1933, museum and laboratory located on San Francisco’s
offers fantastic 360-degree views of the City waterfront which welcomes over 1 million visitors
and the Bay. The Tower sits atop Telegraph Hill annually. The Exploratorium features interactive
adjacent to Washington Square Park. exhibits to promote learning through immersion
and has featured over 1,000 displays since its

initial founding.

LOCATION OVERVIEW 23

FISHERMAN’S WHARF VINTAGE STREET CARS
World-renowned for its historic waterfront, San Francisco is home to the finest fleet of vintage
spectacular views, delicious seafood, and unique streetcars in the country that serves the North
shopping experiences, Fisherman’s Wharf is Waterfront District, Financial District, and all the
San Francisco’s most popular tourist destination way to the Castro.
with an estimated 12 million annual visitors. The
recently renovated Ghirardelli Square featuring
the famous chocolate shop, boutiques, and
cafes in a pleasant open setting is adjacent to
Fisherman’s Wharf.

PIER 39
One of San Francisco’s most popular attractions, Pier 39 is an open air shopping and dining
destination built on a pier. Pier 39 offers fantastic views of Alcatraz, the Golden Gate Bridge, Angel
Island, and is home to a herd of world-famous California sea lions. The Pier features the Aquarium
of the Bay, a two-story carousel, and frequent street performers in a festive setting.

24 LOCATION OVERVIEW

NEIGHBORHOOD AMENITIES

PROMINENT RESTAURANTS NEARYBY CAFE’S

Kokkari Estiatorio 1 200 Jackson St Café Destijl 28 1 Union St

Piperade 2 1015 Battery St Parlor 1255 29 1255 Battery St

The Old Ship Saloon 3 298 Pacific Ave Café Trieste 30 609 Vallejo St

Coqueta 4 Pier 5 Hole in the Wall Coffee 31 524 Union St

Cotogna 5 490 Pacific Ave The Station SF 32 596 Pacific Ave

Tomasso’s Ristorante 6 1042 Kearny St Réveille Coffee Co. 33 200 Columbus Ave

The House 7 1230 Grant Ave NEARBY LOUNGES

BIX 8 56 Gold St The Battery 34 717 Battery St

Coi 9 373 Broadway 15 Romolo 35 15 Romolo Pl

Don Pisto’s 10 510 Union St Comstock Saloon 36 155 Columbus Ave

Sotto Mare 11 552 Green St Grumpy’s 37 125 Vallejo St

La Mar 12 Pier 5 Barbarossa Lounge 38 714 Montgomery St

Kusakube 13 584 Washington St The Hidden Vine 39 408 Merchant St

Bocadillos 14 710 Montgomery St Church Key 40 1402 Grant St

E’ Tutto Qua 15 270 Columbus Ave The Devil’s Acre 41 256 Columbus Ave

Roka Akor 16 801 Montgomery St Tope 42 1326 Grant Ave

Bask 17 42 Columbus Ave

Hillstone 18 1800 Montgomery St LOCAL AMENITIES

Park Tavern 19 1652 Stockton St Umpqua Bank 43 450 Sansome St

Hog Island Oyster Co 20 1 Ferry Bldg Bank of the West 44 480 Columbus St

The Slanted Door 21 1 Ferry Bldg Chase Bank 45 1318 Stockton St

Mama’s 22 1701 Stockton St Bank of America 46 500 Battery St

Quince 23 470 Pacific Ave Davis Cleaners 47 635 Davis St

Café Jacqueline 24 1454 Grant Ave Embarcadero Cleaners 48 2 Embarcadero Ctr

R&G Lounge 25 631 Kearny St The Bay Club 49 150 Greenwich St

Pier 23 Café 26 Pier 23 49 Empower Gym 50 747 Front St

Fog City 27 1300 Battery St Optimized Fit 51 150 Lombard St

POINTS OF INTEREST

The Exploratorium 52 Pier 15

Coit Tower 53 1Telegraph Hill Blvd

Washington Square Park 54 Union/Columbus

Sydney Walton Square 55 Front St & Davis St

Levi’s Plaza 56 1270 Battery St

The Ferry Building 57 1 Ferry Bldg

LOCATION OVERVIEW 25

NEIGHBORHOOD AMENITIES

PEIR
39

POWELL ST NORTH POINT ST

BAY ST KEARNY ST 18
GRANT AVE
CHESTNUT ST
STOCKTON ST 51

T SANSOME ST49 27 THE EMBARCADERO 26
LOMBARD ST
MONTGOMERY ST
GREENWICH ST TELEGRAPH H 53 29
56
COLUMBUS AVE
22 31 FILBERT ST IL L BL VD SAN FRANCISCO
54
19 10 KEARNY ST UNION ST 28 52
BROADWAY
GRANT AVE BATTERY 2 FRONT ST
BATTERY ST
UNION ST 24 40
11

GREEN ST 42 VALLEJO S3T7
44
STOCKTON ST 35 MONTGOMERY ST 50
30 9
7

VALLEJO ST 45 3 47 DAVIS ST 4
15 12
41 6 5 23 34 1 55
PACIFIC AVE 33 32 B A R T MARKET ST
16 8 46
KEARNY ST 36 17 WASHINGTON ST 21
JACKSON ST 20
GRANT AVE CLAY ST25 CLAY ST 57
38 48
MISSION ST
POWELL ST 13 SANSOME ST 39
MASON ST 14

43 DRUMM ST STEUART ST
DAVIS ST
SACRAMENTO ST

CALIFORNIA ST
SACRAMENTO ST FRONT ST
BATTERY ST
CALIFORNIA ST

PINE ST BEALE ST
FREMONT
BUSH ST MAIN ST

M

26 LOCATION OVERVIEW

FINANCIAL DISTRICT

BATTERY ST.
FRONT ST.

BATTERY SAN FRANCISCO

BROADWAY

GREEN ST. SANSOME ST.
THE EMBARCADERO

LOCATION OVERVIEW 27

ADJACENT NEIGHBORHOOD

FINANCIAL DISTRICT

Within the broader San Francisco market, the
Financial District contains nearly 51 million square
feet of high quality office space and is widely
considered the premier office market on the West
Coast. World-renowned for its scenic views,
unparalleled amenity base and unique skyline,
the San Francisco Financial District is home to an
exceptionally diverse business community that
includes industry leaders in international finance,
retail, technology, engineering, hospitality,
government, and transportation. San Francisco
is a thriving hub of regional, national, and global
finance and business. Furthermore, the Financial
District’s significant inventory of institutionally-
owned and managed Class A office buildings
continues to attract the highest-quality tenant
base in the region. Major San Francisco employers
include many of the nation’s leading financial
services, retail, software, law, accounting, and
telecommunications firms, and the Financial
District is home to corporate facilities for many
large, diverse, and well-known organizations.
The Financial District is seeing substantial
development, especially near the under
construction Transbay Transit Center. Several
major office and mixed-use projects, including
Salesforce Tower, 181 Fremont, Park Tower, and
Oceanwide Center are under construction or planned.

28 LOCATION OVERVIEW E & F LINETHE EMBARCADERO
E & F LINE
TRANSPORTATION ACCESS

M UNI services 46.7 square miles in San Francisco and
is the seventh-largest public transit system in the United States
by ridership. Major MUNI light rail lines E – Embarcadero &
F – Market & Wharves stop less than a block away from 901
Battery Street. These lines provide frequent access from the
North Waterfront to the Financial District and the Castro through
Market Street.

GOL DEN G AT E T R A NSI T Provides regional bus service
in San Francisco, Marin and Sonoma counties. In 2016,
over 9 million passengers rode on the transit system. More than
15 routes from nearly every city in Marin County stops at the
major terminal at Battery and Green Street, less than one block
from the Property.

B A R T B A R T 901 Battery Street is about a 10-minute walk
from Embarcadero and Montgomery Street Stations. The BART
system is the major public commuter transportation system
in the Bay Area. BART consists of a high-speed rail system
connecting most major municipalities with 43 stations in four
Bay Area counties.

SA N F R A NCISCO BAY F ERRY serves cities throughout
the Bay Area with eight terminals across San Francisco, Alameda,
Oakland, South San Francisco, and Vallejo. The Bay Ferry has
experienced a tremendous surge in ridership and now boasts more
than 2 million riders annually. The Ferry Building, San Francisco’s
main ferry terminal, is a 10-minute walk from 901 Battery Street.

US 10 1 Located about a mile to the west, US 101
provides access north through Marin and south through
the Peninsula.

IN T ER S TAT E 8 0 Located a mile south of the Property,
Interstate 80 provides access to the East Bay via the Bay
Bridge.

IN T ERS TAT E 2 8 0 Located about one and a half miles
south of the Property, Interstate 280 provides access to
the Peninsula.

LOCATION OVERVIEW 29

E,KT,N LINE

E,KT,N LINE

E & F LINE

ST. ST.
FRONT BATTERY
E & F LINE SAN FRANCISCO

SANSOME ST.
BROADWAY
BATTERY

GREEN ST.

30 PROPERTY DESCRIPTION

PPRROOPPEERRTTYY OOVVEERRVVIIEEWW

PROPERTY DESCRIPTION 31

32 PROPERTY DESCRIPTION

901 BATTERY STREET

SITE DESCRIPTION 901 Battery Street
ADDRESS San Francisco, CA 94111
YEAR BUILT 1923
PARCEL NUMBER
PARCEL SIZE Block 0135, Lot 003

BUILDING SIZE 18,906 square feet

SITE DESCRIPTION Floor 4 (Plus Mezzanine): CURRENT REMEASURED
PARKING ADDRESS Floor 3: 18,625 RSF 20,330 RSF
PARKING YEAR BUILT Floor 2: 18,957 RSF 18,957 RSF
PARKING NUMBER Floor 1: 17,844 RSF 18,947 RSF
PARCEL SIZE Lower Level: 17,777 RSF 17,777 RSF
PARKING SPACES 16,348 RSF 13,893 RSF
ZONING TOTAL BUILDING
HEIGHT & BULK 89,553 RSF 89,904 RSF
TOTAL (ABOVE GRADE)
73,203 RSF 76,011 RSF

The Property is located at the corner of Battery and Vallejo Streets with
frontages on both streets.
998 Sansome Street
San Francisco, CA 94111
1975

Block 0142, Lot 006

4,120 square feet

24 total spaces

C-2 (Community Business)

65-X

PROPERTY DESCRIPTION 33

PARCEL MAP BATTERY

111.896 801

GREEN BATTERY SAN FRANCISCO 137 BROADWAY
57.50
VALLEJO
80
1000 998
SANSOME 50

STREET

SANSOME

BATTERY SAN FRANCISCO

998 SANSOME PARKING

34 PROPERTY DESCRIPTION

EXTERIOR DETAIL Foundations are conventional, concrete spread footings with cast-in-
STRUCTURE/FOUNDATION place concrete retaining walls at perimeter areas of the below
SUPERSTRUCTURE grade structures. The 2013 seismic retrofit included installing concrete
ROOF moment frame, steel brace frame, and concrete shear wall.
FAÇADE
WINDOWS / DOORS The Property consists of a reinforced concrete superstructure built
SEISMIC over a full basement. Floors and the roof are constructed from cast-in-
PARKING place concrete slabs.

The roof consists of a standard built-up roofing (BUR) system with
mineral-surfaced cap sheet. Roof drains properly discharge storm
water runoff directly to the municipal storm drain collection system.

The façade was recently updated with a brand new entry canopy,
building identification, and signage at the storefronts, completed in
2015. The exterior façade consists primarily of a metal-framed punched
windows and painted concrete.

Windows are typically painted, metal-framed single-glazed, fixed and
operable panes. At the building entrances, windows and doors are part
of a new storefront system that was installed in 2015 with aluminum
frames.

A seismic retrofit was completed between 2013 and 2014, which put
the Property’s SEL and SUL at 10% and 16%, respectively.

The two-story parking structure consists of 24 parking spaces. The
parking foundation is concrete slab-on-grade. The upper level is
constructed out of concrete pavement over a painted structural steel
frame and ribbed metal deck. Stairs connect the upper and lower
parking floors.

PROPERTY DESCRIPTION 35

36 PROPERTY DESCRIPTION

INTERIOR DETAIL Renovations completed in 2015, which expanded and updated the lobby, included
LOBBY new concrete floors, new wall finishes (with custom glass and steel), new light
fixtures, and new lobby monument signs.
TENANT SPACES
LIGHTING The Property consists of single-tenants on the first, third, and fourth floors and
WALLS storage at the lower level. The second floor and lower level are the only multi-
tenant floors.

Lighting in tenant spaces is primarily suspended or wall-mounted fluorescent or
HID lighting fixtures.

The office walls are exposed concrete, painted concrete, or painted gypsum
board.

CEILINGS Ceilings are typically exposed structure ceilings, with some suspended acoustic
tiles and painted gypsum board.

STAIRS Stairs are cast-in-place concrete with closed risers supported by painted steel pipe
guardrails and steel handrails.

PROPERTY DESCRIPTION 37

MECHANICAL DETAIL

The HVAC is a central system that is comprised of a Trane Centrifugal Chiller

HVAC unit with an estimated rating of 225 tons and a dedicated central boiler
serving perimeter VAV units. Thermostats are located in tenant spaces and

control individual VAV units.

ELECTRIC Electrical service is delivered by PG&E to utility-owned transformers located
along Battery Street. Main electrical service to the Property is provided by
1,600 amp, 277/480 volt, three-phase main distribution panels.

WATER Water is provided through the City of San Francisco via underground mains.
GAS A 40-gallon electric water heater typically located on each floor supply the
common restrooms. Hot water to tenant spaces is provided by individual
electric units.

Natural gas is supplied by PG&E. Tenant spaces are served by individual gas
meters located along the rear exterior wall of the space.

ELEVATOR Two passenger elevators are provided at the lobby and west entrance of
the Property. The lobby elevator is a four-stop, Dover elevator with 4,000-lb
capacity. The west elevator is a 5-stop Kone elevator, with a 2,000-lb capacity.
Elevator interiors were recently updated to match the lobbies.

FIRE/LIFE SAFETY The Property was recently upgraded with a fire sprinkler system backbone.
The fire suppression system is comprised of dry pipe fire hoses in cabinets.
Life safety equipment includes hardwired smoke detectors, illuminated exit
signs, and alarm horns.

38 PROPERTY DESCRIPTION

FLOOR PLAN - LOWER LEVEL

S05 S04
S06 S02

VALLEJO STREET S07

S10 S01
S03
S5088
S09509

BATTERY STREET

GORDON & REESE KMD ARCHITECTS BAR ARCHITECTS
STORAGE S01, 02, 03, 08 09 STORAGE S04, 06, 07, 10 STORAGE S05
10,857 RSF 2,985 RSF 136 RSF
$18 PSF $19 PSF $20 PSF
LXD: 2/28/2022 LXD: 9/30/2018 MTM
Landlord Termination
Option

PROPERTY DESCRIPTION 39

FLOOR PLAN - FIRST FLOOR

VISCIRA

VALLEJO STREET

BATTERY STREET

VISCIRA
17,777 RSF
$59 PSF
LXD: 12/31/2020

40 PROPERTY DESCRIPTION

FLOOR PLAN - SECOND FLOOR

KMD ONSTREAM
ARCHITECTS

ZIPONGO

VALLEJO STREET VACANT

MEDIA ONE

MEDIA ONE

BATTERY STREET

KMD ARCHITECTS ONSTREAM ZIPONGO MEDIA ONE
801 RSF 1,294 4,936 RSF 6,881 RSF
#31 PSF $53 PSF $62 PSF $49 PSF
LXD: 9/30/2018 LXD: 9/30/2018 LXD: 6/30/2017 LXD: 12/31/2018

PROPERTY DESCRIPTION 41

FLOOR PLAN - THIRD FLOOR

BAR ARCHITECTS

VALLEJO STREET

BATTERY STREET

BAR ARCHITECTS
18,957 RSF
$49 PSF
LXD: 5/31/2021
1, 5 YEAR OPTION

42 PROPERTY DESCRIPTION

FLOOR PLAN - FOURTH FLOOR

VALLEJO STREET KMD ARCHITECTS

BATTERY STREET

KMD ARCHITECTS
17,432 RSF
$31 PSF
LXD: 9/30/2018

PROPERTY DESCRIPTION 43

FLOOR PLAN - FOURTH FLOOR MEZZANINE

KMD
ARCHITECTS

VALLEJO STREET

BATTERY STREET

KMD ARCHITECTS
1,193 RSF
$21 PSF
LXD: 9/30/2018

44 DEVELOPMENT OVERVIEW

DEVELOPMENT OVERVIEW

DEVELOPMENT OVERVIEW 45

998

SANSOME
(PARKING)

46 DEVELOPMENT OVERVIEW

REDEVELOPMENT OF PARKING SITE

The 4,120 square foot lot at 998 Sansome Street, which currently serves as off-site parking for 901
Battery Street, can be redeveloped as a boutique mixed-use project consisting of retail, office, and
residential. While many commercial scenarios are possible under the zoning, a feasibility study
prepared by architect Charles Bloszies demonstrates a six-story scenario with ground floor retail,
three floors of office, and two floors of residential (a total of five units), which would maximize
uses throughout the project. Per a zoning memo prepared by John Kevlin of Reuben Junius &
Rose, the maximum developable floor area (including residential and non-residential uses) is 25,750
square feet. In addition, Planning Commission approval would generally not be required for most
commercial uses, allowing a developer to expedite the design and approval process. Alternatively,
the site may be redeveloped into a small office building that would likely qualify for Small Cap
allocation under Proposition M, or be exempt from Proposition M altogether.

TOTAL DEVELOPMENT SCOPE

FLOOR ELEVATION GROSS AREA RETAIL AREA OFFICE AREA RESIDENTIAL AREA MECHANICAL USABLE AREA
(SF) (SF) (SF) (SF) (SF) (SF)

FLOOR 6 70' 4,022 00 4,022 0 2,970
4,022
FLOOR 5 56' 4,022 00 4,022 0 2,940
4,022
FLOOR 4 42' 4,022 0 4,022 0 0 3,335
4,022
FLOOR 3 28' 2,011 0 4,022 0 0 3,335
26,143
FLOOR 2 14' 0 4,022 0 0 3,335

FLOOR 1 0' 2,405 809 809 00

LOWER LEVEL -10' 00 0 2,011 0

TOTAL 2,405 12,875 8,853 2,011 15,915

RESIDENTIAL SCOPE

FLOOR TOTAL UNITS USABLE AREA (SF) UNIT 1 UNIT 2 UNIT 3
FLOOR 6 2 2,970 1,595 1,375 0
FLOOR 5 3 2,940 1,135 1,160
TOTAL 5,910 645

DEVELOPMENT OVERVIEW 47

HYPOTHETICAL RENDERING

A rendering prepared by architect Charles Bloszies demonstrates a six-story scenario with ground floor retail, three
floors of office, and two floors of residential (a total of five units), which would maximize uses throughout the project.
The total gross area of the project, including lower level, is 26,143 square feet.

48 DEVELOPMENT OVERVIEW VALLEJO STREET

HYPOTHETICAL FLOOR PLANS

GROUND FLOOR
SANSOME STREET

OFFICE FLOOR
SANSOME STREET

VALLEJO STREET

DEVELOPMENT OVERVIEW 49

HYPOTHETICAL FLOOR PLANS

FIFTH FLOOR
SANSOME STREET

VALLEJO STREET

ROOF
SANSOME STREET

SIXTH FLOOR VALLEJO STREET
SANSOME STREET

VALLEJO STREET

50 FINANCIAL ANALYSIS

CONFIDENTIAL

F I N A N C I A L A N A LYS I S