The subject properties are located at 3788-3790 Mission Street & 3798 Mission Street at the corner of Richland Avenue and Mission Street in the Bernal Heights district of San Francisco. The neighborhood is primarily residential, with two commercial strips along Mission Street and Cortland Avenue featuring many restaurants, a bookstore, a bakery, a video store, a grocery store, a wine and beer store, cafes and bars. Both Holly Park and the neighborhood defining Bernal Heights Summit Park (featuring open parkland and the notable microwave tower on its large rocky hill) help attract the many urban professionals and San Francisco families to reside in the area. The close proximity of highways 101 and 280 provides easy freeway access to the peninsula and Silicon Valley Bernal and thus make the area home to many working professional who work outside of, but choose to live in San Francisco.

3788-3790 Mission Street & 3798 Mission Street are two buildings on two parcels being sold together. 3788-3790 Mission Street is a 2 unit building with ground floor retail and a 2-bedroom 1 bath flat above. 3798 Mission Street is a 9 unit mixed use building with a neighborhood convenience store on the ground floor, a 4-bedroom flat, and (7) 1-bedroom units. The building structures have a combined square footage of 12,682 SF. 3788-3790 Mission was built in 1913 while 3798 Mission rose 12 years later in 1925. Both properties have wood-frame structures over concrete foundations. At some point, the neighborhood convenience stores storage area was expanded and intrudes upon 3788 Mission Street's parcel reducing the size of neighboring street retail while enlarging the area allocated to convenience store.

The units are separately metered for gas and electric with circuit breakers. 400 Amp Electrical services the building and was installed around 10 years ago. A new steam boiler provides heat to all the units with the exception of one which has electric heat. New windows were added in the last 2 years and modified bitumen was installed on both roofs in 2009. The plumbing appears to be a mix of copper and galvanized plumbing.

Five of the seven 1-bedroom units are remodeled with upgraded kitchen and baths. The newer kitchens have granite countertops, new cabinets, and tile floors. Most bathrooms have showers over tubs with tile surrounds with the upgraded units having new vanity units. All of the residential units have hardwood floors throughout. 3788 Mission Street's street level retail tenant just requested and executed an extension to their lease - it now runs until Jan 2011. The neighborhood convenience store has 5 years remaining on an original 10 year lease. The rent increases yearly based on CPI for the remainder of the original lease term. The tenant has (1) option to renew for an additional 10 years.

Washington Mutual originated a loan on the property 7 years ago which can be assumed for 1% for qualified buyers. The loan has a balance of approximately $1,400,000 and is an adjustable rate mortgage fixed annually based on the trailing 12 month average of the 1 year T-Bill. As of March 2010 the interest rate was 3.57%.

This property offers investors a unique opportunity to purchase two upgraded mixed use buildings on separate parcels with huge rental upside in the neighborhood convenience store while also assuming a highly valuable note no longer offered in the marketplace which will generate immediate substantial cash flow.