1415 Clay StreetSan Francisco, CA 94109

OFFERING MEMORANDUMNing Ho(415) 312-2245Ning.Ho@MarcusMillichap.comLicense CA: 01943903

Exclusively Listed by:

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap andshould not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or anytenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters

and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all ofthe information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or nameis not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, orcommercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

1415 CLAY STREETSan Francisco, CA

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LOCAL MAP

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FLOOR PLAN

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Note: All measurements are approximate. No information on these floor plans should be relied upon without independent verification.

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OFFERING SUMMARY

§ Over $300,000 Recent Capital Improvements

§ Huge Rental Upside, GRM: 14.50, Cap Rate: 4.32%

§ Vacant In-law Unit and Garage

§ Potential One Three-Bedroom ADU

INVESTMENT HIGHLIGHTS

Marcus & Millichap has been selected to exclusively market for sale a six-unit apartment building on 1415 Clay Street in San Francisco. It islocated in the heart of the Nob Hill neighborhood, two blocks from the Grace Cathedral, and three blocks from the Fairmont Hotel. There aremany restaurants, coffee houses, bars, banks, and retail stores in the neighborhood. The Union Square shopping district, Russian Hill, and NorthBeach are within walking distance. Public transit is excellent.

1415 Clay Street consists of three one-bedroom units, three studios and one parking garage. The building has the potential of adding one three-bedroom additional dwelling unit on the ground floor. Large amounts of capital improvements have been made to this property over last twoyears, including $200,498 for renovation of two 1-bedroom units, $27,714 for new appliances, $22,089 for common area improvements, $7,200for window replacement, $6,724 for plumbing, $2,500 for electrical, $3,800 for boiler and water heater, $11,962 for HVAC, and $32,000 forexterior work– for a total of $333,338. The electrical system has been upgraded to 400 amps service. A new intercom system has beeninstalled. The in-law unit and garage will be delivered vacant.

The subject property is a three-story building measuring 3,645 square feet sitting on a 1,685 square feet lot, constructed in 1916, zoned RM3.The building is subject to the City of San Francisco’s Soft Story Program. The parcel number is APN 0219-024.

1415 Clay Street presents an opportunity for an investor/operator to capitalize on the tremendous rental upside potential in the excellent NobHill neighborhood of San Francisco.

INVESTMENT OVERVIEW

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FINANCIAL ANALYSIS

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RENT ROLL DETAIL

Note:1) Above monthly rent from Unit # 2 – 5 each unit includes a Bond Pass-Through of $6.86.2) In-law unit and garage will be delivered vacant, with potential to add a 3-bedroom legal unit.

Unit Unit Type Current Monthly Rent Market Monthly Rent

1 1 Bedroom / 1 Bath $3,695 $3,700

2 Studio / 1 Bath $697 $2,000

3 1 Bedroom / 1 Bath $3,664 $3,700

4 Studio / 1 Bath $697 $2,000

5 1 Bedroom / 1 Bath $1,007 $3,700

6 Studio / 1 Bath $1,047 $2,000

Total $10,808 $17,100

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FINANCIAL ANALYSISPRICING DETAIL

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Summary

Price $1,880,000

Down Payment $940,000 50%

Number of Units 6

Price Per Unit $313,333

Price Per SqFt $515.78

Gross SqFt 3,645

Lot Size 1,685

Approx. Year Built 1916

Returns Current Market

CAP Rate 4.32% 8.21%

GRM 14.50 9.16

Cash-on-Cash 2.19% 9.98%

Debt Coverage Ratio 1.34 2.55

Financing 1st Loan

Loan Amount $940,000

Loan Type New

Interest Rate 5.00%

Amortization 30 Years

Year Due 2028

Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative.

Operating Data

Income Current MarketGross Scheduled Rent $129,699 $205,200Less: Vacancy/Deductions 3.0% $3,891 3.0% $6,156Total Effective Rental Income $125,808 $199,044Other Income $0 $0Effective Gross Income $125,808 $199,044Less: Expenses 35.5% $44,682 22.4% $44,682Net Operating Income $81,126 $154,362

Cash Flow $81,126 $154,362

Debt Service $60,553 $60,553Net Cash Flow After Debt Service 2.19% $20,572 9.98% $93,809Principal Reduction $13,868 $14,578Total Return 3.66% $34,441 11.53% $108,387

Expenses Current MarketReal Estate Taxes $22,039 $22,039Insurance $5,734 $5,734Tax Assessment (Est.) $908 $908Water $5,280 $5,280Garbage $3,478 $3,478PG&E $2,960 $2,960Repairs & Maintenance (Est.) $3,000 $3,000

Intercom Phone $1,284 $1,284

Total Expenses $44,682 $44,682Expenses/Unit $7,447 $7,447Expenses/SF $12.26 $12.26

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