The Opportunity in San Francisco

Rents have continously risen despite Rent Control becoming law in 1979
Housing Supply is expected to remain low
- about 60% of housing inventory is under rent control¹.
- 29% of rent controlled units with long term tenants (>10yrs)^{^}
- No Rent control for buildings built after 1979
Demand continues to rise- San Francisco population growing
- Company mandates a return to office
- Growth of AI sector and strong tech/biotech sectors
Many mismanaged apartment buildings with aging baby boomer owners selling their buildings
Right unit mix allows for continuous turnover - to increase rental income and value.

1.Bungalow Article; Feb 2022

^SF Planning website; key trends

Fund 1

Apeq Partner's Fund 1 will be a single asset fund looking

to raise $4 million. The price range of the target

investment will be between $6-$8 million in San

Francisco

Hayes Valley Neighborhood
List Price: $4.7 Million
12 Unit building(1 bd/1ba) and 12 Parking
Built: 1962
Delivered- 4 vacant units and 2 protected Tenants
Value add Opportunities
- Manage operating expenses (targeting 32%; currently 45%)
- Add RUBs program to pay for utilities
- Renovate vacant units for maximum rent
- Do Operating and Maintenance passthrough cost (up to 10% increase on rent)
- Add Additional dwelling Unit (ADU)