Broker Opinion Value | 1454 South Van Ness Avenue by marketingkwsf

B R O K ER O PI N I O N O F VA LU E

1454 SOUTH VAN NESS AVENUE San Francisco, CA

PREPARED FOR: ARI SHPANHA/BLOK LIVING

JEREMY WILLIAMS Multi-Unit & Commercial Sales Specialist Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | DRE# 01952598

TABLE OF CONTENTS

About Keller Williams Realty

3-4

II.

Meet Our Team

5-6

III. Pricing Strategy

IV. 1454 South Van Ness Avenue Property Facts Realist Report Income & Expense information V. Sales Comparables

16-28

VI. Pricing

30-33

VII.

Case Studies | Sale Examples

VIII. Marketing Strategy

9-10 11-12 13-14

35 37-43

1454 SOUTH VAN NESS AVENUE

ABOUT KELLER WILLIAMS® REALTY WE STRIVE TO EXCEED EXPECTATIONS At Keller Williams Commercial, we strive to exceed the expectations of our valued clients by providing the highest level of professionalism and ethical standards. Our clients-first stance is not just a mantra, but a catalyst that compels our service-oriented approach towards success on all fronts. We operate locally. We are a group of proven professionals who successfully put into practice a team approach to creatively market and tactfully negotiate the sale of your investment asset. Our brokerage model is designed to emphasize strategic efficiency and collaboration. Our skilled negotiators and expert facilitators can guide investors through the acquisition and divestiture of investment properties that include: apartment buildings, office buildings, retail centers, industrial properties, hospitality properties, and development land.

At Keller Williams Commercial, we believe our reputation is our most prized asset. The proof is in the achievement of both your satisfaction and our results - our success: • Over 10,000 apartments and mixed units sold! • Over 10,000,000 total square feet of buildings sold! • Total value of properties sold:

OVER $2 BILLION!

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598 The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

1454 SOUTH VAN NESS AVENUE

OUR GLOBAL NETWORK GAIN INTERNATIONAL EXPOSURE KW International has a global reach that allows your property to be showcased to interested buyers all around the world. The global real estate market continues to grow every year and serves as a significant opportunity to those who are selling highly desirable properties.

160,000

KW agents worldwide

205+

KW offices worldwide

Number of regions

Number of continents

MEET OUR TEAM

JEREMY WILLIAMS

Multi-Unit & Commercial Sales Specialist Jeremy is an investment property specialist who focuses on multi-unit apartment, commercial and mixed-use building sales in San Francisco and the surrounding Bay Area. Over the past seven years, Jeremy has become an expert at the detailed tasks necessary to successfully list, market and close multi-unit apartment, commercial and mixed-use investment properties. Jeremy has worked on over 100 transactions and has become highly experienced with 1031 Tax Deferred Exchanges, helping his clients build substantial and sustainable wealth. He is a true hyperlocal expert and is well-versed in local city and county ordinances and regulations including San Francisco and Alameda County’s Soft Story Retrofit ordinance, Rent Board regulations and Landlord and Tenants’ Rights. Jeremy’s in-depth knowledge of local market conditions gives his clients – sellers and buyers alike, a competitive advantage in this niche market. By consistently providing the highest level of service and quality results, Jeremy has made lasting relationships among property owners, investors and brokers within San Francisco’s exclusive multi-unit apartment and commercial sales industry

1454 SOUTH VAN NESS AVENUE

Recent Opportunities with Jeremy Williams

RECENT OPPORTUNITIES WITH JEREMY WILLIAMS LIST OF MOST RECENT TRANSACTIONS, COMING SOON, & OFF-MARKET OPPORTUNITIES Address

Closing Date

# of Units

Listing Price

Selling Price

LP/SP%

11 Units + 11 Parking | N. Panhandle**

Coming Soon

$4,450,000

14 Studios | South of Market

Coming Soon

$4,000,000

14 Studio Units | Downtown**

Coming Soon

$3,800,000

10+ Unit ADU Project | Inner Mission**

Coming Soon

$3,600,000

6 Units | Inner Sunset

Coming Soon

$2,950,000

5 Units | Eureka Valley**

Coming Soon

$2,850,000

4 Spacious Units | Mission Dolores**

Coming Soon

$2,350,000

3 Flats | Telegraph Hill**

Coming Soon

$2,300,000

3 Flats | Hayes Valley**

Coming Soon

$2,000,000

54-58 Auburn St

Jun-19

$988,000

$950,000

96%

1381-1383 45th Ave.

May-19

$1,388,000

$1,595,000

115%

2131 Grove St*

Nov-18

$2,350,000

$2,600,000

111%

2131 Grove St*

Nov-18

$2,350,000

$2,600,000

111%

1949 15th St

Nov-18

$999,000

$1,300,000

130%

1335 McAllister St*

Jul-18

$2,550,000

$2,800,000

110%

1335 McAllister St*

Jul-18

$2,550,000

$2,800,000

110%

490 Francisco St

Mar-18

$2,950,000

$3,105,000

105%

611 Minna St

Jan-18

$2,950,000

$2,925,000

99%

3353 26th St*

Nov-17

$2,750,000

$3,075,000

112%

3353 26th St*

Nov-17

$2,750,000

$3,075,000

112%

487 Lincoln Cir

Nov-17

$3,000,000

$3,260,000

109%

490 Francisco St

Jun-17

$1,300,000

$1,400,000

108%

1183 Hampshire St

Jun-17

$1,600,000

100%

2217 Mission St

May-17

$3,800,000

$3,900,000

103%

611 Minna St

Feb-17

$2,050,000

100%

545 Elm St

Jan-17

$950,000

$1,060,000

112%

Total Since 2017

111

$40,095,000

AVERAGE SELLING PRICE OVER LISTING PRICE

109%

*Represented both Seller and Buyer

** Coming Soon/Available Off-Market

OVER $40 MILLION & 100+ UNITS SOLD SINCE 2017 Jeremy Williams | Keller Williams San Francisco Commercial Jeremy Williams | Keller Williams San Francisco| | Keller Keller Williams Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598 415.932.9846 | jeremyw_sf@kw.com | License: 01952598 The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

PRICING STRATEGY

1454 SOUTH VAN NESS AVENUE

PRICING STRATEGY OUR PRICING METHODS In consideration of establishing the fair market value for your property, we have utilized two methods: an income approach and the comparable sales approach. A typical investor will base his buying decision upon the potential return on his investment both in terms of the existing rents and the potential for increasing rents to fair market value. In using the comparable sales approach, we have valued your property by comparing it on a cost per unit and cost per square foot basis to recent sales of comparable properties. All the information in this analysis is readily available to investors through public records and their own analysis. Although we are not an appraiser and this is not an appraisal of your property, we have utilized the same approaches that an appraiser would use in establishing the value of your property. We used income and expense information provided by the owner and made some adjustments. For the purpose of this analysis, we feel confident that this information allows us to accurately determine the market value for your property. The comparable sales analysis considers current demand for such properties, the present lending environment and comparable properties that have recently sold. Though no two properties are identical in amenities, condition, location or investment potential, a fairly accurate estimation of fair market value can be established by examining recent sales of comparable properties. Recent sales will establish the prices paid and criteria upon which investors made their purchasing decisions. We have compiled a list of comparable apartments that were sold during the past year. Although no single parameter necessarily determines price, property comparisons using all of this information allow us to determine the value of your property. In analyzing them, we have used the following parameters:

Price Per Unit Price Per Square Foot Gross Rent Multiplier (GRM) CAP Rate

PROPERTY FACTS

1454 SOUTH VAN NESS AVENUE

PROPERTY FACTS

Year Built

1960

Year Renovated

2019

Building Area

6,068 (5,268 + 800 ADU rooms?)

Lot Size

2,844

Parcel Number

652-7037

Total Rooms

Electrical

Separately Metered

Gas

Separately Metered

Construction

Wood Frame

Neighborhood

Inner Mission

1454 SOUTH VAN NESS AVENUE

PROPERTY FACTS 1454 S Van Ness Ave, San Francisco, CA 94110-4040, San Francisco County

N/A

5,268

2,844

$2,400,000

Beds

MLS Sq Ft

Lot Sq Ft

MLS Sale Price

1960

APT

12/24/2018

Baths

Yr Built

Type

MLS Sale Date

Owner Information 1454 South Van Ness LLC 1428 6th St #306 Santa Monica, CA

Tax Billing Zip: Tax Billing Zip+4: Owner Occupied:

90401 2595 No

San Francisco 209.00 C005

Subdivision: Zoning:

Mission Bl #182 RM1

6527-037 6527 037 6527 BLK 182

Lot: % Improved: Tax Area:

37 84% 1000

Assessment Year Assessed Value - Total Assessed Value - Land Assessed Value - Improved YOY Assessed Change (%) YOY Assessed Change ($)

2018 $177,015 $28,404 $148,611 2% $3,469

2017 $173,546 $27,848 $145,698 2% $3,402

2016 $170,144 $27,302 $142,842

Tax Year 2016 2017 2018

Total Tax $2,899 $2,988 $3,319

Change ($)

Change (%)

$89 $332

3.07% 11.11%

2,844 0.0653 5,268 Apartment Apartment 5 To 14 Units 1960 3

No. Parking Spaces: Total Baths: Full Baths: Total Rooms: Construction: Total Units:

MLS: 5 6 6 17 Wood 5

476851 Closed 12/27/2018 09/20/2018 $2,500,000 $2,500,000

Closing Date: Closing Price: MLS List. Agent Name: MLS List. Broker Name: MLS Selling Agent Name: MLS Selling Broker Name:

12/24/2018 $2,400,000 803097-Adam Filly COMPASS SF 802440-Alexander S. Varum ALEX VARUM BROKER

Owner Name: Tax Billing Address: Tax Billing City & State:

Location Information School District: Census Tract: Carrier Route:

Tax Information Tax ID: Parcel ID: Block: Legal Description:

Assessment & Tax

Characteristics Lot Area: Lot Acres: Building Sq Ft: Land Use - CoreLogic: Land Use - County: Year Built: Stories:

Listing Information MLS MLS MLS MLS MLS MLS

Listing Number: Status: Status Change Date: Listing Date: Current List Price: Orig. List Price:

Courtesy of Jeremy Williams, San Francisco Association of Realtors The data within this report is compiled by CoreLogic from public and private sources. The data is deemed reliable, but is not guaranteed. The accuracy of the data contained herein can be independently verified by the recipient of this report with the applicable county or municipality.

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598

Property Detail

Generated on 07/26/2019 Page 1 of 3

The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

1454 SOUTH VAN NESS AVENUE

PROPERTY FACTS 11/06/2018

Pending Date:

Last Market Sale & Sales History Tax: 11/28/2018 MLS: 12/24/2018 12/24/2018 $2,280,000 1454 South Van Ness LLC

Settle Date: Recording Date: Sale Price: Owner Name:

Sale/Settlement Date 11/28/2018 Recording Date 12/24/2018 Sale Price $2,280,000 Nominal 1454 South Van Ness Buyer Name LLC

Seller:

Jackson Family Trust

Document Number: Deed Type: Price Per Square Feet:

K714051 Grant Deed $432.80

02/08/2011 02/15/2011

02/13/2008 02/14/2008

Y Y Jackson John W & Marie Jackson Marie A A

Jackson Family Trust

10/05/2004 11/16/2004

Seller Name

Jackson Family Trust

Document Number Document Type

K714051 Grant Deed

Jackson John W & Marie Jackson Marie A A K333-403 J578-411 Quit Claim Deed Grant Deed

Sale/Settlement Date Recording Date Sale Price Nominal Buyer Name Seller Name Document Number Document Type

00/1991 12/26/1991

09/24/1979

Y Godal Helen A Godal Helen A F0529-455 Grant Deed

C0862-109 Deed (Reg)

10/05/2004 11/16/2004 Y Krzyzanowski Gloria

Godal Helen A Trust

Godal Helene A

I765-589 Grant Deed

I765-588 Affidavit

Mortgage History Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage

Date Amount Lender Code Type Term

01/29/2019 $2,285,000 Goldman Sachs Bk Usa

12/27/2018 $2,285,000 Goldman Sachs Bk Usa

Construction

02/09/2016 $250,000 Jp Morgan Chase Bk Na Conventional Refi

11/27/2012 $250,000

Construction 1

Property Map

*Lot Dimensions are Estimated

Courtesy of Jeremy Williams, San Francisco Association of Realtors

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598

The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy The data within this report is compiled by CoreLogic from public and private sources. The data is deemed reliable, but is not guaranteed. The of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property. accuracy of the data contained herein can be independently verified by the recipient of this report with the applicable county or municipality. Generated on 07/26/2019

Property Detail

Page 2 of 3

1454 SOUTH VAN NESS AVENUE

PROPERTY FACTS

PROPERTY HIGHLIGHTS • Located in a Prime Inner Mission Neighborhood • Excellent Owner – Turnkey Investment Property • Great In-Place Income (High-End Apartment Share) PROJECTED INCOME # of Rooms

Rent per Room

Market Rent

$1,800

$32,400

Annual Income

$388,800.00

1454 SOUTH VAN NESS AVENUE

PROPERTY FACTS ESTIMATED ANNUAL REVENUE Scheduled Annual Gross Income

$388,800

RUBS

$16,068

(Vacancy Factor 5%)

$(19,440)

Adjusted Scheduled Gross Income

$385,428

(Estimated Annual Expenses)

$(102,102)

Net Operating Income

$283,326

Real Estate Taxes (1.163%)

$55,243

Property Insurance

$4,332

Utilities - Building Services

$17,856

Property Management (est. @ 5% of Gross Income)

$19,271

Repairs/Maintenance (estimated @ $300 per room)

$5,400

Annual Expenses

$102,102

EXPENSE ASSUMPTIONS We assume: • 5% vacancy rate which is relative to the neighborhood and the tenant profile the units will attract • 5% of Gross Income for Property Management • $300 per room for Repairs & Maintenance

SALES COMPARABLES

1454 SOUTH VAN NESS AVENUE

SALES COMPARABLES 2040-2048 Taylor Street, Russian Hill

Sales Price: $3,700,000

Closed: 7/17/19

GRM: 13.7

Sq.Ft.: 5,456

$ per Sq.Ft.: $678

Year Built: 1907

Cap: 5.3%

Rooms: 25

$ per Room: $148,000

Unit Mix: (3) 5-rooms, (2) 6-rooms; 3 units delivered vacant

1690 Golden Gate Avenue, Western Addition

Sales Price: $3,892,000

Closed: 6/6/19

GRM: 14.2

Sq.Ft.: 5,925

$ per Sq.Ft.: $657

Year Built: 1890

Cap: 5.1%

Rooms: 24

$ per Room: $162,167

Unit Mix: (4) 4-rooms, (3) 2-rooms + (1) 3-room

1495 10th Avenue, Inner Sunset

Sales Price: $3,495,000

Closed: 5/17/19

GRM: 14.1

Sq.Ft.: 5,570

$ per Sq.Ft.: $627

Year Built: 1925

Cap: 5.1%

Rooms: 24

$ per Room: $145,625

Unit Mix: (8) 3-rooms + 8 car parking

674-684 Corbett Avenue, Twin Peaks

Sales Price: $2,300,000

Closed: 1/17/19

GRM: 13.4

Sq.Ft.: 3,501

$ per Sq.Ft.: $657

Year Built: 1959

Cap: 5.3%

Rooms: 21

$ per Room: $109,524

Unit Mix: (3) 4-rooms, (3) 3-rooms + 6 car parking

625-629 Haight Stret, Hayes Valley

Sales Price: $3,450,000

Closed: 12/14/18

GRM: 14.7

Sq.Ft.: 4,598

$ per Sq.Ft.: $750

Year Built: 1880

Cap: 5.1%

Rooms: 17

$ per Room: $202,941

Unit Mix: (4) 3-rooms, (1) 4-room + 1 commercial space; 100% remodeled in 2018 & delivered vacant •

Average Rooms: 22

•

Average $ per Sq. Ft.: $674

•

Average $ per Room: $153,651

•

Average GRM: 14.0

•

Average Cap: 5.2%

1454 SOUTH VAN NESS AVENUE Comparative Market Analysis

1454 South Van Ness Avenue, San Francisco, California 94110

Map Of Comparable Listings

S = CLOSED

STATUS:

MLS #

STATUS

1 Subject

ADDRESS

BEDS

BATHS

1454 S Van Ness Ave

S = SOLD

SQFT

PRICE

6.00

2 478380

674 84 Corbett Avenue

0/0

3,501

$2,300,000

3 482452

1690 Golden Gate Avenue

0/0

5,925

$3,892,000

4 481537

1495 10th Avenue

0/0

5,570

$3,495,000

5 485003

2040 2048 Taylor Street

0/0

5,456

$3,700,000

6 476447

625 629 Haight Street

0/0

4,598

$3,450,000

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598

Jeremy Williams

The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy Keller Williams Commercial of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

Cell: 415-932-9846 jeremyw_sf@kw.com | DRE num 01952598

1454 SOUTH VAN NESS AVENUE Comparative Market Analysis

1454 South Van Ness Avenue, San Francisco, California 94110

Summary of Comparable Properties S

Sold Listings

ADDRESS

SOLD DATE

BEDS

BATHS

YRBLT

SQFT

LOT SIZE

$ PER SQFT

PRICE

1/17/19

0/0

1959

3,501

0.11

$657

$2,300,000

6/6/19

0/0

1890

5,925

0.07

$657

$3,892,000

1495 10th Avenue

5/17/19

0/0

1925

5,570

0.07

$627

$3,495,000

2040 2048 Taylor Street

7/17/19

0/0

1907

5,456

0.06

$678

$3,700,000

625 629 Haight Street

12/14/18

0/0

1880

4,598

0.08

$750

$3,450,000

SQFT

LOT SIZE

$ PER SQFT

PRICE

5,010

0.078

$674

$3,367,400

674 84 Corbett Avenue 1690 Golden Gate Avenue

Averages

STATUS

Sold Listings

Jeremy Williams

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598

Keller Williams Commercial The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property. Cell: 415-932-9846 jeremyw_sf@kw.com | DRE num 01952598

2 18

1454 SOUTH VAN NESS AVENUE

Comparative Market Analysis

674 84 Corbett Avenue

1454 South Van Ness Avenue, San Francisco, California 94110 San Francisco, CA 94114

$2,300,000 CLOSED

1/17/19

MLS #478380

Beds 0/0 Baths

3,501 Sq. Ft. ($657 / sqft)

Year Built 1959

Days on market: 48

Details Prop Type: 5 - 15 Units

Lot Size: 4,806

Off-market date: 1/23/19

County: San Francisco

Garages: 6

Area: Twin Peaks

List date: 11/1/18

Updated: Jan 23, 2019 8:20 AM

Acres: 0.11

Sold date: 1/17/19

List Price: $2,600,000

Lot Size Acres: 0.11

Living Area: 3501

Records

Lot Size Units: SqFt

Living Area Source: Per Tax

Orig list price: $2,600,000

Features

Remarks SOLD at a 5.3% Cap Rate: 674-84 Corbett Ave is a 6-Unit Apartment Building located in the Twin Peaks District of San Francisco. This property is comprised of 3-One Bedroom/One Bathroom units and 3-Two Bedroom/One Bathroom units. The Building features a 6-car garage, additional storage room and on-site laundry. The property provides an investor with the opportunity to acquire a well-positioned investment property with approximately 40% upside potential in rents.

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 jeremyw_sf@kw.com | License: 01952598 Jeremy| Williams

Keller Williams The information contained Commercial herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property. Cell: 415-932-9846

jeremyw_sf@kw.com | DRE num 01952598

Comparative Market Analysis

674 84 Corbett Avenue $2,300,000 CLOSED

1/17/19

Jeremy Williams

1454 SOUTH VAN NESS AVENUE

1454 South Van Ness Avenue, San Francisco, California 94110 San Francisco, CA 94114

MLS #478380

Beds 0/0 Baths

3,501 Sq. Ft. ($657 / sqft)

Year Built 1959

Days on market: 48

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial

415.932.9846 | jeremyw_sf@kw.com | License: 01952598 Keller Williams Commercial Cell: 415-932-9846 The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy of this information. Respective buyers| areDRE advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property. 4 jeremyw_sf@kw.com num 01952598 20

1454 SOUTH VAN NESS AVENUE Comparative Market Analysis

1454 South Van Ness Avenue, San Francisco, California 94110

1690 Golden Gate Avenue $3,892,000 CLOSED

6/6/19

MLS #482452

San Francisco, CA 94115

Beds 0/0 Baths

5,925 Sq. Ft. ($657 / sqft)

Year Built 1890

Days on market: 32

Details Prop Type: 5 - 15 Units

Acres: 0.07

Sold date: 6/6/19

County: San Francisco Area: Western Addition

Lot Size: 3,000

Off-market date: 6/6/19

List Price: $4,200,000

List date: 3/6/19

Updated: Jun 6, 2019 2:20

Orig list price: $4,200,000

Lot Size Acres: 0.07

Living Area: 5925

Records

Lot Size Units: SqFt

Living Area Source: Per Tax

Features

Remarks SOLD at a 5.1% Cap Rate: Nestled in between Alamo Square Park and NOPA, 1690 Golden Gate Ave provides easy access to much of the city's natural beauty and famous attractions such as The Painted Ladies. 1690 Golden Gate is just a short walk from the incredible dinning, boutique retail and entertainment options offered at one of the city's most popular destinations, Divisadero Street. This well maintained apartment building consists 3 - Studio Units, 1 - One Bedroom Units and 4 - Two Bedroom Units. These larger units allow an excellent opportunity for prospective investors to optimize the living space and increase market rents.

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598

Jeremy Williams

The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

Keller Williams Commercial

21 Cell: 415-932-9846

jeremyw_sf@kw.com | DRE num 01952598

1454 SOUTH VAN NESS AVENUE Comparative Market Analysis

1454 South Van Ness Avenue, San Francisco, California 94110

1690 Golden Gate Avenue $3,892,000 CLOSED

6/6/19

San Francisco, CA 94115

MLS #482452

Beds 0/0 Baths

5,925 Sq. Ft. ($657 / sqft)

Year Built 1890

Days on market: 32

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598

Jeremy Williams

The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

Keller Williams Commercial Cell: 415-932-9846 jeremyw_sf@kw.com | DRE num 01952598

22 6

1454 SOUTH NESS AVENUE Comparative MarketVAN Analysis

1495 10th Avenue

1454 South Van Ness Avenue, San Francisco, California 94110 San Francisco, CA 94122

$3,495,000 CLOSED

5/17/19

MLS #481537

Beds 0/0 Baths

5,570 Sq. Ft. ($627 / sqft)

Year Built 1925

Days on market: 38

Details Prop Type: 5 - 15 Units

Lot Size: 3,249

Off-market date: 5/17/19

County: San Francisco

Garages: 8

Area: Inner Sunset

List date: 2/22/19

Updated: May 17, 2019 1:14 AM

Acres: 0.07

Sold date: 5/17/19

List Price: $3,580,000

Lot Size Acres: 0.07

Living Area: 5570

Records

Lot Size Units: SqFt

Living Area Source: Per Tax

Orig list price: $3,580,000

Features

Remarks SOLD at a 5.1% Cap Rate: Well maintained corner eight-unit apartment building great Inner Sunset location. One unit vacant. Very strong rents. 8-1brs, 8 car parking. The units have hardwood floors, eat-in kitchens, 4 of which are very large and have 2 sets of bay windows. The soft story retrofit has been completed.

Jeremy WilliamsWilliams | Keller Williams San Francisco | Keller Williams Commercial Jeremy 415.932.9846 | jeremyw_sf@kw.com | License: 01952598 Keller Williams Commercial Cell: 415-932-9846

The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy 7 jeremyw_sf@kw.com num of this information. Respective buyers| areDRE advised to 01952598 conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

1454 NESS AVENUE 1454 South Van Ness SOUTH Avenue, SanVAN Francisco, California 94110

Comparative Market Analysis

1495 10th Avenue $3,495,000 CLOSED

5/17/19

Jeremy Williams

San Francisco, CA 94122

MLS #481537

Beds 0/0 Baths

5,570 Sq. Ft. ($627 / sqft)

Year Built 1925

Days on market: 38

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial

415.932.9846 | jeremyw_sf@kw.com | License: 01952598 Keller Williams Commercial Cell: 415-932-9846 The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy 8 jeremyw_sf@kw.com num of this information. Respective buyers| areDRE advised to 01952598 conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property. 24

1454 SOUTH VAN NESS AVENUE Comparative Market Analysis

1454 South Van Ness Avenue, San Francisco, California 94110

2040 2048 Taylor Street $3,700,000 CLOSED

7/17/19

MLS #485003

San Francisco, CA 94133

Beds 0/0 Baths

5,456 Sq. Ft. ($678 / sqft)

Year Built 1907

Days on market: 14

Details Prop Type: 5 - 15 Units

Acres: 0.06

Sold date: 7/17/19

County: San Francisco

Lot Size: 2,726

Off-market date: 7/18/19

List Price: $3,595,000

Area: Russian Hill

List date: 5/17/19

Updated: Jul 18, 2019 4:19

Orig list price: $3,595,000

Lot Size Acres: 0.06

Living Area: 5456

Records

Lot Size Units: SqFt

Living Area Source: Per Tax

Features

Remarks SOLD for a 5.3% Cap Rate: 2040-2048 Taylor Street is a 5-unit Edwardian building located in San Francisco's Russian Hill neighborhood. This is the first time the property has ever been on the market! The building is comprised of 3-Five Room Units(3-Bedroom) and 2-Six Room Units(4-Bedroom). All units have access to a large rooftop deck with stunning views of Downtown San Francisco. Well maintained units with a washer & dryer in each unit. There are large storage rooms with ADU potential.

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598

Jeremy Williams

The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy Keller Williams Commercial of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

Cell: 415-932-9846 jeremyw_sf@kw.com | DRE num 01952598

1454 SOUTH VAN NESS AVENUE Comparative Market Analysis

1454 South Van Ness Avenue, San Francisco, California 94110

2040 2048 Taylor Street $3,700,000 CLOSED

7/17/19

Jeremy Williams

San Francisco, CA 94133

MLS #485003

Beds 0/0 Baths

5,456 Sq. Ft. ($678 / sqft)

Year Built 1907

Days on market: 14

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598

The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property. Keller Williams Commercial

Cell: 415-932-9846 jeremyw_sf@kw.com | DRE num 01952598

10 26

1454 SOUTH VAN NESS AVENUE Comparative Market Analysis

625 629 Haight Street

1454 South Van Ness Avenue, San Francisco, California 94110

$3,450,000 SOLD

MLS #476447

San Francisco, CA 94117

12/14/18

Beds 0/0 Baths

4,598 Sq. Ft. ($750 / sqft)

Year Built 1880

Days on market: 78

Details Prop Type: 5 - 15 Units

Acres: 0.08

Sold date: 12/14/18

County: San Francisco

Lot Size: 3,438

Off-market date: 12/23/18

List Price: $3,550,000

Area: Hayes Valley

List date: 9/20/18

Updated: Dec 23, 2018 2:16

Orig list price: $3,550,000

Dishwasher, Microwave, Washer, Dryer, Fire Alarm System

Living Area: 4598

http://www.625-627-629-haight.com/

Living Area Source: Per Architect

Features Lot Size Acres: 0.08 Appliances: Oven/Range Freestand, Refrigerator, Garbage Disposal,

Lot Size Units: SqFt

Virtual Tour Url:

Remarks SOLD for a 5.1% Cap Rate: Furnished rental estimate at approx $300K per year Rare opportunity to own a fully remodeled ready to rent/use/move-into six unit building a few blocks away from Duboce Park, Everything is NEW, these units have never been used at all, you set the tone for your investment or owner use, 2018 completed upgrades include: SF Soft Story work, all new electrical service, individual radiant heat, new kitchens, baths, floors, walls, fixtures etc. Large level south facing rear yard. a 700+ sqft storefront with a brand new ADA compliant Restroom. 4 one beds with radiant heat and 1 two bed w/forced air heat. All have W/Ds in unit. Cap rate 5%, GRM 15, Set price, not a teaser. Ready to go, perfect 1031 turn key or owner user.

Jeremy Williams

Keller Williams Commercial Cell: 415-932-9846 jeremyw_sf@kw.com | DRE num 01952598

Jeremy Williams | Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com | License: 01952598

The information contained herein has been provided by various sources which may include the seller, public records, Multiple Listing Service, or others. Keller Williams San Francisco has not verified or investigated the accuracy of this information. Respective buyers are advised to conduct their own investigation of the property and the information contained herein, utilizing licensed professionals where appropriate, before purchasing this property.

625 629 Haight Street $3,450,000 SOLD

MLS #476447

San Francisco, CA 94117

Beds 0/0 Baths Year Built 1880

12/14/18

Comparative Market Analysis

4,598 Sq. Ft. ($750 / sqft) 1454 SOUTH VAN NESS AVENUE Days on market: 78

1454 South Van Ness Avenue, San Francisco, California 94110

Comparable Property Statistics S

Sold Listings

Jeremy Williams

Keller Williams Commercial Cell: 415-932-9846 jeremyw_sf@kw.com | DRE num 01952598

HIGHEST PRICE

$3,892,000

AVERAGE PRICE

$3,367,400

AVG DOM

LOWEST PRICE

$2,300,000

SOLD LISTINGS

AVG PRICE / SQFT

AVG CAP RATE

$674 42 5

12 5.2%

PROPERTY PRICING

1454 SOUTH VAN NESS AVENUE

PROPERTY PRICING PROPERTY PRICING DETAILS 1454 South Van Ness Avenue is an excellent investment property located in the Inner Mission District, one of the hottest neighborhoods in San Francisco. With its desirable location and rental upside your property will attract tremendous attention from qualified apartment investors, developers as well as owner-users. The rental and sales value for San Francisco apartment is currently at an all time high. This is an extremely tight market with very little inventory for these types of investments. The pricing below illustrates our opinion for the value of the property. Our value is based on the sales comparables on the previous pages and below. The average combined, yield and value between $4.75 million and $5.15 million. We believe this is to be a strong indication of the market value of the property due to the propertyâ&#x20AC;&#x2122;s location, unit-mix and condition. Through our exceptional market plan we will create a bidding war which will drive the price to its highest possible potential. Current market conditions make this the best time in the past 30 years to consider a sale.

VALUE RANGE Investor

Asking Price on Market

Stretch Price

$4,750,000

$4,950,000

$5,150,000

$263,889

$275,000

$286,111

Sq. Ft.

6,068

Price / Sq. Ft.

$783

$816

$849

GRM

12.2

12.7

13.2

5.96%

5.72%

5.50%

Sq. Ft. Number of Rooms Price / Unit

CAP Rate

1454 SOUTH VAN NESS AVENUE

PROPERTY PRICING

1454 SOUTH VAN NESS AVENUE

PROPERTY PRICING

Owner / User Highest Price These buyers will pay the highest price because it will be their home and these buyers have the motivation to own a trophy property and live in 1 unit while collecting rent form the other units.

Private Investors Individual families or trusts, can be either local or international. Typically these investors acquire property every few years as their portfolio increases in value over time. Most of them might own in the neighborhood and they normally hold properties for a long time.

Syndicators These are partnerships who look to â&#x20AC;&#x153;add-valueâ&#x20AC;? to a property. Normally this is achieved by property upgrades, redevelopment, TIC conversions, etc.

1454 SOUTH VAN NESS AVENUE

PROPERTY PRICING SELLERâ&#x20AC;&#x2122;S NET PROCEEDS Price City Transfer Tax Broker Commission Energy & Water Compliance Natural Hazard Report 3R Report Escrow Fees Net Proceeds

$4,950,000 $(37,125) $(247,500) $(3,500) $(100) $160 $(500) $4,661,435

CASE STUDIES

1454 SOUTH VAN NESS AVENUE

CASE STUDIES

490 Francisco Street - 6 Units Listing Price:

$2,995,000

Selling Price:

$3,105,000

Offers:

Challenges:

• Long-term tenants paying low rents in 5 out of 6 units. • Brick foundation needing replacement.

Solutions:

• Owner bought out 3 low paying tenants, renovated units and sold with 4 units vacant/newly renovated • Many buyers were attracted to the vacanies and the quality of the finishes and improvements on the renovated units. Multiple offers were sumbitted within the first few days of marketing and the property went Pending within 6 days on the market

611 Minna Street - 12 Units Listing Price:

$2,950,000

Selling Price:

$2,925,000

Offers:

Challenges:

• Many long-term tenants paying low rents. Building needed Soft Story Retrofit (roughly $120,000 cost to Seller

Solutions:

• Buyer took on cost of Soft Story Retrofit in exchange for small credit, adding roughly $100,000 to Seller Net Proceeds

3353 26th Street - 11 Units Listing Price:

$2,650,000 (original suggested pricing)

Selling Price:

$3,075,000

Offers: Challenges:

• • •

Majority long-term tenants paying low rent Property needed Soft Story Retrofit Litgation needed to conclude Tenant Nuisance Eviction

Solutions:

• • • •

Found Buyer willing to a premium price to buy Off Market Added over $400,000 to Seller Net Proceeds Completed Soft Story Retrofit prior to COE Settled Tenant Nuisance Eviction prior to COE

MARKETING STRATEGY

1454 SOUTH VAN NESS AVENUE

MARKETING STRATEGY STRATEGY OVERVIEW The following marketing plan is a step by step outline of what we will do to sell your properties. This plan is based on proven techniques. It works because it includes thorough planning, diligent implementation and absolute accountability. Our Objective: to sell your properties for the highest price possible within a reasonable amount of time with the least inconvenience to you. We offer the most extensive, aggressive and highest quality marketing program available and we go above and beyond what most agents do.To achieve our objective we offer:

Evaluation

Preparation

• • • • • •

Exposure

Negotiations

DETAILED PROPERTY EVALUATION PRODUCTIVE PREPARATION IDENTIFY ADDITIONAL VALUE GREAT EXPOSURE SKILLFUL NEGOTIATIONS SUCCESSFUL CLOSE OF ESCROW

During the sale process, Keller Williams San Francisco will provide the Owner with weekly reports that detail all marketing efforts, discussions, underwriting efforts, offers and related issues impacting the transaction. Keller Williams’s marketing process has been proven successful in over 00 assignments. The key components to our marketing process include:

• E-mail and hard copy mailing of marketing letter, brochure • Property tours and promotions • Advertising on local and national level • Underwriting and inspections • Documentation and closing

1454 SOUTH VAN NESS AVENUE

MARKETING STRATEGY MARKETING BUDGET

All marketing expenses incurred by Broker will be the sole responsibility of the Broker.

PROPERTY RESEARCH

The initial step of the marketing process is to obtain all relevant information on the Property. The Keller Williams San Francisco team will work with the Owner and Property Manager to inspect the Property to determine physical conditions, maintenance, capital improvement programs and type of construction. The team will then review and prepare all pertinent documentation and data for the Property, including:

• • • • • • • • •

Operating statements Leases, estoppels All other existing agreements Floor plans Property condition reports, pest report & contractors report Zoning ordinances 3R Report Preliminary Title Report Disclosure Documentation

1454 SOUTH VAN NESS AVENUE

MARKETING STRATEGY POSTCARDS, BROCHURES, AND ADVERTISING

OFFERING MEMORANDUM

434-436 UNION STREET San Francisco, CA

JEREMY WILLIAMS Multi-Unit & Commercial Sales Specialist Keller Williams San Francisco | Keller Williams Commercial 415.932.9846 | jeremyw_sf@kw.com DRE# 01952598

KELLER WILLIAMS SAN FRANCISCO DATABASE

The Group maintains a database of more than 8,000+ apartment owners and active buyers. We will mail the marketing letters and brochures to our contacts and follow up with phone calls to the most logical buyers.

BROCHURE

Keller Williams San Francisco will complete an attractive, professionally designed brochure, including highlights of the property description, income information, photograph(s), aerial(s), map, and site plan, along with other relevant information. Upon review and comment by client the Brochure will be delivered to investors via traditional mail and e-mail.

ADVERTISING

Print advertising plays a key role in the marketing strategy. Where ads are placed depends on the property type and location, unique attributes and other factors. Some of the publications we advertise in are

• San Francisco Apartment Magazine

• The Wall Street Journal / WSJ International

• San Francisco Real Estate Times

• San Francisco Chronicle

• San Francisco Business Times

• Nob Hill Gazette

• The Registry

• Haute Living

1454 SOUTH VAN NESS AVENUE

MARKETING STRATEGY SIGNAGE

One of the best ways to attract Buyers is having signage on the buildings. This easy tool ensures that investors in the neighborhood see that the buildings are available to purchase.

THE INTERNET

Keller Williams San Francisco uses the internet to support a range of marketing capabilities, including: posting properties on dozens of web sites, providing dedicated single property websites, offering virtual and video tours, and capturing traffic analytics. In addition to providing easy access for potential buyers anywhere in the world, our online marketing capabilities give us the tools to monitor activity and track interest in your property. We post our listings on a wide range of web sites to maximize visibility. We update the data on these sites daily to ensure all of the property information is current. This is a sample of sites where our listings are found:

• RCM1

• CoStar.com

• aprinvestmentgroup.com

• PropertyLine.com

• SFARMLS.com (San Francisco)

• Trulia.com

• MLSListings.com (Peninsula)

• Property Specific Website

• BAREIS.com (Greater Bay Area)

• Our Facebook Page - APR Investment Group

• Loopnet.com (worldwide)

Professional Property Specific Website

Loopnet Listing Page

1454 SOUTH VAN NESS AVENUE

MARKETING STRATEGY PERSONAL SOLICITATION AND FOLLOW-UP

The most effective marketing tool is personal contact. Using our experience, market knowledge and comprehensive database made up of 8,000 owners and Buyers, we will implement a program of personal canvassing. This extensive and intensive marketing effort will be initially directed to the core group of prospects who we find most compatible with your property.

• Depending on the initial results, the personal canvassing will be tailored or adjusted to include various

other segments of the market as deemed appropriate. The express purpose of our calls will be to apprise prospects of the availability of the property, to determine their interest and to arrange an inspection tour. We will personally follow-up and contact potential prospects, including those brought in by other brokers.

COORDINATION OF MARKETING EFFORTS

Since you will receive the benefit of our combined 45 years of experience, our marketing program will maximize the likelihood of locating, qualifying and selling the property to all of the most likely buyers. The theme of our marketing program will be to achieve a maximum exposure of the properties on a personal basis to pre-qualified, priority prospects, most of whom already have established relationships with us.

• Our contacts within the industry assure you maximum exposure to buyers who show the highest likelihood of being qualified purchasers.

CO-BROKER PARTICIPATION

Keller Williams San Francisco will actively solicit the cooperation of the brokerage community to market your building. We believe in aggressively seeking the cooperation of the relatively small segment of the brokerage community that, along with Keller Williams does the vast majority of the business.

• We not only personally contact all major brokers specializing in properties such as yours to provide them

with specific details regarding the availability of your property, we will follow up on all inquiries to ensure a solid, accurate exposure of your property and keep a log of all promotional activity and its results.

We regularly meet with regional and local investment brokers through monthly marketing meetings in San Francisco, the North Bay and East Bay. Your property will be presented to over 200 investment brokers through such meetings.

1454 SOUTH VAN NESS AVENUE

MARKETING STRATEGY DISTRIBUTION & CONTROL OF INFORMATION

The direct marketing process will commence upon Ownerâ&#x20AC;&#x2122;s approval of the marketing materials. Direct contact will be made with prospective buyers during the pre-marketing period.

PROPERTY & MARKET TOURS

Property tours will be conducted in person by a senior member of our team in order to control information presented to potential investors, gauge true investor response and immediately address any issues raised by potential investors.

DOCUMENTATION & CLOSING

The Keller Williams San Francisco team will work jointly with the Owner to compile due diligence materials to provide to pre-qualified investors. Once an investor has been selected, the team will coordinate, as directed by the Owner, all business and legal matters required to document and close the transaction. The team will help facilitate the process, ensuring productive communication and distribution of information between parties and a timely closing.

Approximately 90 Days

5-10 21 2 1 15 45

1454 SOUTH VAN NESS AVENUE

MARKETING STRATEGY CONTROLLED BID PROCESS We have used the “Controlled Bid Process” in many transactions and this allows us to achieve the highest possible offer for a Seller. We normally market and tour the properties for 3-4 weeks and we set an Offer Date. This ensures that every investor who is in the market to buy has a chance to visit the properties before making an offer. All offers are analyzed by the Marketing Team, and a detailed summary will be prepared for the Owner outlining the major terms of each offer (relating to price, capital source, financing & other contingencies as well as due diligence, closing periods, deposits and time lines). After the submission of all offers, we might have a second round of bids which we call a “Best & Final Offer”. We go back to the top 3-5 bidders and ask them to submit their offers with the best terms possible. This method works because Buyers will understand that they’re in a competitive “Bid Process” and this will achieve the maximum price possible.