317-329 N Van Ness Ave

Value-add investor or owner-user opportunity: Freestanding building totaling ±8,100 SF office investment on ±0.29 Acres (±12,675 SF) of General, Professional, and/or Medical space off N Van Ness Ave. Offers (8) economical separate spaces 44% leased to long-term tenants on Gross lease forms with an average size of 900 SF per unit. Value-add opportunity with actual rents of $45,600/year collected plus upside potential. Unique investment offering easy-to-rent small office spaces all with existing water/drain lines in each room within an under-built market offering a strong need for these type of spaces. After leasing the vacancies and extending leases, the realistic 6-12 month stabilized gross annual income is $96,342 (2.64x existing rent). Once stabilized, the deal offers a 8.84% CAP rate, 11.42% cash-on-cash return when leveraged with 30% down, which produces a 1.88 Debt Coverage Ratio!
The value-add opportunity consists of leasing (3) vacancies of 575 SF each, addressing the under-market rent of the (4) MTM tenants, extending lease length over the next 6-12 months, and charging the customary "pass-through" expenses of Water, Sewer, Trash, and Gardening to eliminate these items from the Landlords ledger.
(7) identical units of 575 SF each with the ability to combine spaces to create larger units via existing connecting doors. Offices need fresh paint and flooring in order to deliver move-in ready spaces. Excellent Owner/User with Passive Income, or Investment. Each unit has multiple sink locations in each room (former medical uses), access to high speed Internet, is separately metered, has private restrooms, private entrances, and consists of demising walls (can be combined). Excellent existing signage, great visibility and easy access to CA-180 and CA-99 on/off ramps.