This offering consists of a mixed-use commercial property located in the heart of San Francisco’s rapidly growing South of Market (SOMA) District. The property consists of a 29-room residential hotel with a manager’s unit over four retail spaces a cell phone tower and billboard. The hotel is currently full and out of the 29 rooms 27 are currently leased to Tenderloin Housing Clinic. The lessee’s website is https://www.thclinic.org/. The lease commenced on May 1st of 2018 and expires in 2021. The hotel portion which is on the second floor consists of 29 Single Room Occupancy (“SRO”) licensed rooms, all including sinks, with three shared restrooms, two shared showers, a community kitchen and manager’s unit. The four-ground floor commercial spaces are rented to local long-term business owners at below market rent. The building is a 12,000 square foot two-story structure over a 5,200 square foot basement on a 6,000 square foot lot.
The building is located in the Central South of Market Zoning Plan. The plan is projected to add more than 8,800 housing units, facilitate new jobs for the area and fund over $2.0 Billion of public benefits for the neighborhood. For more information on the Central SOMA plan please see the following link: https://sf-planning.org/central-soma-plan.
This is a great opportunity for an investor to purchase a property in one of the strongest commercial real estate markets in the world – and specifically in a neighborhood that has been experiencing rapid growth in rents and real estate values. The upside potential is substantial, both in increasing rents in the area, and improving real property values.
