San Francisco Apartment Building Sales



San Francisco Apartment Building Sales List

Provided by Paragon Commercial Brokerage


Our indepth analyses of the San Francisco apartment building market can be found here:
San Francisco Apartment Building Market Report

San Francisco is a unique residential-investment property market for a wide variety of reasons: it's a relatively small, boutique market with, currently, extremely high rental and buyer demand; the buildings are smaller and much older than in most other places; almost the entire rental market is under rent control, which makes upside rental-income potential a big component of valuation, even if it's unknown when that potential might be realized; because the buildings are older, deferred maintenance can be a significant issue, as well as expense-ratio issues such as landlord-provided heat. Furthermore, the units are completely unlike those in large, suburban garden-apartment complexes and within the city the variety in units is enormous, from gracious, Pacific Heights flats with 10-foot ceilings and bay views to studio apartments in brick buildings the Tenderloin.

Last but not least, the property values here are among the very highest in the country. Most of the buyers of San Francisco apartment buildings are savvy, long-term, local investors: Outside investors often have a hard time figuring out the dynamics of such an unusual market.

In real estate, the devil is always in the details. Below are some of those details from sources we deem reliable, but even on issues such as income and expense, one listing agent might state actual rental income and another scheduled rents (which typically overstates reality); expenses also might be actual or pro-forma (which usually understates reality). Therefore the gross rent multiple (GRM) and cap rate figures should be considered general approximations, and the high and low figures of each statistic should probably be considered anomalies. Please contact us if you have questions regarding any of these sales or interest in properties available to purchase.

These sales lists apply to 5+ unit buildings, but if you'd like information on specific 2, 3 or 4 unit building sales, please contact us.

Adjusting your screen-view to zoom 125% or 150% will make these tables easier to read.

A San Francisco neighborhood map can be found below the latest list of sales.

Q4 San Francisco 5+ Unit Apartment Building Sales






Q3 2016 San Francisco 5+ Unit Apartment Building Sales











Below is a map of San Francisco neighborhoods and a breakdown of the city’s Realtor districts.





SAN FRANCISCO REALTOR DISTRICTS

District 1 (Northwest): Sea Cliff, Lake Street, Richmond (Inner, Central, Outer), Jordan Park/Laurel Heights, Lone Mountain

District 2 (West): Sunset & Parkside (Inner, Central, Outer), Golden Gate Heights

District 3 (Southwest): Lake Shore, Lakeside, Merced Manor, Merced Heights, Ingleside, Ingleside Heights, Oceanview

District 4 (Central SW): St. Francis Wood, Forest Hill, West Portal, Forest Knolls, Diamond Heights, Midtown Terrace, Miraloma Park, Sunnyside, Balboa Terrace, Ingleside Terrace, Mt. Davidson Manor, Sherwood Forest, Monterey Heights, Westwood Highlands

District 5 (Central): Noe Valley, Eureka Valley/Dolores Heights (Castro, Liberty Hill), Cole Valley, Glen Park, Corona Heights, Clarendon Heights, Ashbury Heights, Buena Vista Park, Haight Ashbury, Duboce Triangle, Twin Peaks, Mission Dolores, Parnassus Heights

District 6 (Central North): Hayes Valley, North of Panhandle (NOPA), Alamo Square, Western Addition, Anza Vista, Lower Pacific Heights

District 7 (North): Pacific Heights, Presidio Heights, Cow Hollow, Marina

District 8 (Northeast): Russian Hill, Nob Hill, Telegraph Hill, North Beach, Financial District, North Waterfront, Downtown, Van Ness/ Civic Center, Tenderloin

District 9 (East): SoMa, South Beach, Mission Bay, Potrero Hill, Dogpatch, Bernal Heights, Inner Mission, Yerba Buena

District 10 (Southeast): Bayview, Bayview Heights, Excelsior, Portola, Visitacion Valley, Silver Terrace, Mission Terrace, Crocker Amazon, Outer Mission


------------------------------------------------------------------------

Sales lists for the last 3 quarters of 2015 can be found within the quarterly reports found on our main market dynamics page: San Francisco Apartment Building Market Report


1st Quarter 2015
San Francisco Apartment Building Sales




















-------------------------------------------------------------------------


San Francisco 5-9 Unit Apartment Building Sales,
1st Half 2014


  • Of the 34 5-9 unit building sales we tracked in the first 6 months of 2014, 25 were built before 1920, i.e. Victorian-Edwardian, and the newest one was built in 1971.

  • Gross rent multiples (GRMs) ranged from 11.2 to 23.3, with an average of 16.9. Typically, the higher the GRM, the more expensive the property. Properties might sell for high GRMs due to superb location and quality, or because the apartments are renting at far below market-rate rents and the building has huge upside potential in rents.

  • Dollar per square foot ranged from $294 (Haight Ashbury 6-units, "needs work") to $746 (Telegraph Hill 6-units), with an average of $415 per square foot upon sale.

  • Cap rates ranged from 2.4 (Duboce Triangle 5-units, with tremendous upside potential in its rents) to 6.4 (NoPa 6-units), with an average cap rate of 4. The lower the cap rate, the lower the existing - at time of purchase - return on cash investment.

  • The average price per apartment unit was $354,000, but the variety in size and quality of units is enormous.

  • The biggest sale was for an 1910 8-unit property on Hyde Street on Russian Hill that went for $5.3m, at $627/sq.ft., a 23.3 GRM and a 2.7 cap rate.






  • San Francisco 10+ Unit Apartment Building Sales:
    First Half 2014


  • Of the 55 10+ unit building sales we tracked in the first 6 months of 2014, 31 were built before 1920, 16 built in the 1920’s, and 8 between 1950 and 1975.

  • 41 of the 55 sales were of buildings of 10 to 20 units, 11 were of 21 to 50 units, 2 were of 60 units, and the largest contained 106 units.

  • Gross rent multiples ranged from 10.7 (Tenderloin) to 23.4 (Bernal Heights), with an average of 15.7.

  • Dollar per square foot ranged from $229 (Inner Mission) to an astounding $805 (Nob Hill), with an average of $411 per square foot upon sale.

  • Cap rates ranged from 1.3 (Bernal Heights 12-units "with huge upside in rents") to 5.5 (Tenderloin 106-units) with an average cap rate of 4 - the same cap rate as for buildings of 5-9 units, which is somewhat surprising as one would expect an economy of scale in the return on investment for larger properties.

  • The biggest sale was a 1924 60-unit property in Nob Hill for $27,5m., $805/sq.ft., a 10.2 GRM and a cap rate of 4.5.

  • The average price per unit was $305,000.







  • So far in 2014, Paragon has outperformed every other commercial brokerage
    for San Francisco apartment building sales.






    For more insight into the Bay Area residential income property market, our statistical analyses of trends and conditions can be found here: Paragon Apartment Market Report


    Below is a map of San Francisco neighborhoods and a breakdown of the city’s Realtor districts.




    SAN FRANCISCO REALTOR DISTRICTS

    District 1 (Northwest): Sea Cliff, Lake Street, Richmond (Inner, Central, Outer), Jordan Park/Laurel Heights, Lone Mountain

    District 2 (West): Sunset & Parkside (Inner, Central, Outer), Golden Gate Heights

    District 3 (Southwest): Lake Shore, Lakeside, Merced Manor, Merced Heights, Ingleside, Ingleside Heights, Oceanview

    District 4 (Central SW): St. Francis Wood, Forest Hill, West Portal, Forest Knolls, Diamond Heights, Midtown Terrace, Miraloma Park, Sunnyside, Balboa Terrace, Ingleside Terrace, Mt. Davidson Manor, Sherwood Forest, Monterey Heights, Westwood Highlands

    District 5 (Central): Noe Valley, Eureka Valley/Dolores Heights (Castro, Liberty Hill), Cole Valley, Glen Park, Corona Heights, Clarendon Heights, Ashbury Heights, Buena Vista Park, Haight Ashbury, Duboce Triangle, Twin Peaks, Mission Dolores, Parnassus Heights

    District 6 (Central North): Hayes Valley, North of Panhandle (NOPA), Alamo Square, Western Addition, Anza Vista, Lower Pacific Heights

    District 7 (North): Pacific Heights, Presidio Heights, Cow Hollow, Marina

    District 8 (Northeast): Russian Hill, Nob Hill, Telegraph Hill, North Beach, Financial District, North Waterfront, Downtown, Van Ness/ Civic Center, Tenderloin

    District 9 (East): SoMa, South Beach, Mission Bay, Potrero Hill, Dogpatch, Bernal Heights, Inner Mission, Yerba Buena

    District 10 (Southeast): Bayview, Bayview Heights, Excelsior, Portola, Visitacion Valley, Silver Terrace, Mission Terrace, Crocker Amazon, Outer Mission

    Some Realtor districts contain neighborhoods that are relatively homogeneous in general home values, such as districts 5 and 7, and others contain neighborhoods of wildly different values, such as district 8 which, for example, includes both Russian Hill and the Tenderloin.

     

    All data from sources deemed reliable, but may contain errors and is subject to revision. Best efforts were made to make the list as complete as possible, but some sales may have been missed. Statistics are generalities and how they apply to any specific property is unknown without a tailored comparative market analysis. All numbers should be considered approximate.

    © 2014-2017 Paragon Real Estate Group