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2001 Van Ness Avenue
2001 Van Ness Avenue, San Francisco, CA
$15,500,000
Price
5.06%
Cap Rate
$910,251
NOI
Overview
Description
Marcus & Millichap is proud to present to the marketplace the opportunity to purchase the fee simple interest in 2001 Van Ness, a four-story office building well-located on San Francisco’s Van Ness Avenue. Built in 1920, the 27,281 SF mixed-use property is virtually 100% occupied by a mix of retail, full floor, and private office suites of varied sizes. The only suite to be delivered vacant is a ±500 SF office suite occupied by the current ownership.
2001 Van Ness’s four stories are comprised of two floors of office over the garage level, all resting atop ground floor retail. The ground floor consists of three retail suites and an elevator lobby which serves the three above-grade floors, garage included. The second-floor garage level is comprised of 22 unobstructed, striped, spaces. To maximize parking, an additional 4 cars can be parked in tandem while still maintaining convenient ingress and egress for all other vehicles. The current ownership employs a garage management company who in turn employs one full-time attendant at the subject property during business hours. Although this allows the garage to hold more cars (±20 visitor vehicles throughout each business day) it does not cover the cost of employing the parking management service and the expense should be removed. Our underwriting omits this expense as well as the associated visitor parking income. More detail on the second-floor parking level is available on pages 18-19. Additional clarity can be provided by the listing agents.
The subject property features reinforced masonry construction as well as a reinforced concrete foundation. The property’s roof is flat with a built-up top surface and has an HVAC system with roof-mounted condensers paired with 20-ton air handlers to service split units. The current ownership has completed significant property improvements totaling over $400,000 in the last 24 calendar months. Improvements include but are not limited to exterior painting, coating, sealant, rehabilitation, new roof and substantial roof upgrades, air conditioner replacement and upgrade, elevator hydraulic system repair and upgrade, elevator car repair and upgrade plus cosmetic upgrades, lobby door security upgrades & security camera upgrades, garage door repairs, and other assorted improvements and repairs.
In addition, the property will benefit directly from the in-progress Van Ness Improvement Project. This substantial civic improvement will deliver San Francisco its first Bus Rapid Transit system, a globally proven solution to improve transit service on bustling urban arterials. To maximize the community benefit, the project includes extensive utility maintenance, safety enhancements, and other civic improvements along the corridor such as wider, better lit pedestrian walkways that should help revitalize the historic corridor and encourage additional foot traffic.
This investment opportunity offers a sophisticated investor the chance to increase income and decrease expenses through an aggressive, hands-on management strategy. Improvements to suite interiors and possible suite aggregation at lease expiration, paired with an aggressive leasing program, should afford the eventual purchaser significant growth in rental income, bringing the average property rents in line with achieved rents in similar quality properties along the Van Ness corridor.
Highlights
- 27,281-square-foot asset with virtually full occupancy
- High visibility location with 53,684 average daily trips at the intersection of Van Ness and Broadway, 0.1 miles away
- Possibility for future redevelopment of lot, addition of supplemental rentable floors to existing structure, and potential to adapt parking garage...
- Opportunity to add value through strategic management, interior renovations, pushing rents, and improving operating efficiencies
Documents
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2001_VanNess_Teaser.pdf
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Location
Gallery
