the gateway apartments - gallelli re
TRANSCRIPT
THE GATEWAY APARTMENTS DOWNTOWN SAN FRANCISCO
www.GallelliRE.com
For Sale $8,000,000Limited Partnership Interest Opportunity7.199% Average Cash Yield Previous 5 Years at Asking Price
460 Davis Street | San Francisco, CA 941111,254 Units | 4 High-Rise Towers & 58 Townhomes
PROPERTY HIGHLIGHTS
• 1,254 luxury units spread throughout four high-rise towers and 58 townhomes,
all located over office, retail, and garage space.
• The Gateway represents 71% of the apartment market in the Financial District.
• Competing properties in the Financial District are nearly 30 years older
on average.
• Includes approximately ±74,210 square feet of office and retail space that
includes Safeway, Bank of America, Starbucks, and other restaurants/services.
• Includes subterranean parking with an estimated +200 total spaces for guest
and tenants.
• Bay Club at the Gateway is adjacent to the property on land owned by Gateway,
providing 9 fully lit tennis courts, an outdoor aquatic center with two heated pools
and fitness facilities.
• Well capitalized General Partners with 40+ years of proven experience developing
and managing this asset.
• Adjacent condominium sales are over $1,340 per square foot.
GALLELLI REAL ESTATEOFFERING MEMORANDUM
THE GATEWAY APARTMENTSSAN FRANCISCO, CA
INVESTMENT HIGHLIGHTS
• Upward trending cash yields.
• Unheard of San Francisco cash yields of ±6.46%, backed by
one of the most secure real estate assets anywhere in the
United States or the world.
• Average cash yield of 6.24% in previous 4 years (this excludes
the one-time distribution in 2013 due to refinance of the asset).
• Estimated cash yield increasing to ±8.96% over the 10 year
hold period.
• Reliable and predictable cash flow investment. Since 2014, the
distribution to the limited partnership interest being offered has
averaged over $500,000 per year and is expected to significantly
increase over the hold period.
• Irreplaceable location in the City of San Francisco’s Financial
District with direct access via elevated walkways to the ±4.8
million square foot Embarcadero Center, one of the largest
mixed-use complexes in the United States and to the
landmark One Maritime Plaza office complex with over
±534,000 square feet of office space.
PROPERTY VALUE AND INTEREST
Appraised Value $750,000,000
Current Debt $325,000,000
Appraised Value Less Debt $425,000,000
Limited Partnership Interest % For Sale 2.35074%
Estimated Value of Limited Partnership Interest $9,990,645
Offering Price of Limited Partner Interest $8,000,000
LOCATION HIGHLIGHTS
• Irreplaceable location in the City of San Francisco’s Financial District with direct access via elevated walkways to Embarcadero
Center, which is one of the largest mixed-use complexes in the United States. The Embarcadero Center contains
office, hotel, retail, restaurants, services, and a state-of-the-art, multi-plex cinema.
• Just over a block from the Embarcadero, San Francisco Bay, the Ferry Building and Transamerica Pyramid.
• The Ferry Building, located across the street, is widely acclaimed for both the quality and diversity of its fresh farm products, and
artisan and prepared foods. It is renowned throughout the country as one of the top farmers markets to visit. On any day, especially
Saturdays, some of San Francisco’s best known chefs, and most famous farmers, can be seen at the market. The market provides
a forum for people to learn about food and agriculture. Each week nearly 40,000 shoppers visit the farmers market.
• Walk score of 98 – located close to employment, entertainment and retail – all daily errands can be accomplished without the need
for a car or public transportation.
• Located at a nexus of transportation options and attractions (all distances approximate).
• ±0.2 miles to the Embarcadero BART Station
• ±1 mile to the on-ramp of Interstate 80 and the Bay Bridge
• ±1.25 miles to the Famous Pier 39 and Fisherman’s Wharf
THE EMBARCADERO
• Less than 5 miles to the Golden Gate Bridge and Highway 101
• Under 1 mile to Coit Tower
• ±1.3 miles to AT&T Park, home of the San Francisco Giants
FERRY BUILDING
EMBARCADEROCENTER
TRANS AMERICA PYRAMID
ONE MARITIMEPLAZA
BAY BRIDGE
THE EMBARCADERO
GARY GALLELLIPresidentManaging DirectorCA BRE #[email protected]
GALLELLI REAL ESTATE3005 Douglas Blvd #200Roseville, CA 95661P 916 784 2700www.GallelliRE.com
GARY GALLELLI, SR. ChairmanFounderCA BRE #[email protected]