The 5+ Unit Residential Investment Market
San Francisco Year-End 2019 Report
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The San Francisco 5+ multi-unit market has seen a steady increase in values since 2010. Values in 2019 remained stable and strong, with 5+ multi-unit properties trading at approximately the same price per square foot as in 2018.
Inventory remained low in 2019, with 142 apartment buildings sold – approximately the same number of transactions as in 2018, when 152 buildings were sold.
Overall, the San Francisco 5+ multi-unit market had a strong finish to 2019. The median sale price for 5+ Unit buildings in 2019 came in at $3.530 million, approximately the same as in 2018.
Accurately priced properties are currently selling quickly. Roughly 55% of listings are being sold within the first 60 days of being on the market, with an approximate sale-to-list ratio of 100%. We expect values to stay strong and stable throughout 2020.
5+ UNIT PROPERTY VALUES REMAIN STABLE
2019 MID-YEAR 5+ UNIT PROPERTY STATISTICS
DAYS ON MARKET STATISTICS FOR SOLD 5+ UNIT PROPERTIES
MOST EXPENSIVE 5-9 UNIT PROPERTY: Measured By Sales Price
9 Units in Noe Valley
$9,000,000
$469/SqFt
Cap Rate: 4.74% | GRM: 16.12
MOST EXPENSIVE 10-14 UNIT PROPERTY: Measured By Sales Price
12 Units in the Marina
$11,720,000
$780/SqFt
Cap Rate: 2.61% | GRM: 22.32
MOST EXPENSIVE 15+ UNIT PROPERTY: Measured By Sales Price
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86 Units in the Tenderloin
$18,850,000
$401/SqFt
Cap Rate: 4.34% | GRM: 12.32
MOST EXPENSIVE 5+ UNIT MIXED-USE PROPERTY: Measured By Sales Price
22 Units Mixed-Use in Alamo Square
$14,800,000
$607/SqFt
Cap Rate: 3.61% | GRM: 18.47
MOST EXPENSIVE 5-9 UNIT PROPERTY: Measured By Price Per SqFt
6 Units in Telegraph Hill
$5,500,000
$1,600/SqFt
Cap Rate: – | GRM: –
MOST EXPENSIVE 10-14 UNIT PROPERTY: Measured By Price Per SqFt
12 Units in the Marina
$11,720,000
$780/SqFt
Cap Rate: 2.61% | GRM: 22.32
MOST EXPENSIVE 15+ UNIT PROPERTY: Measured By Price Per SqFt
37 Units in Pacific Heights
$9,879,500
$806/SqFt
Cap Rate: 5.33% | GRM: 12.64
MOST EXPENSIVE 5+ UNIT MIXED-USE PROPERTY: Measured By Price Per SqFt
11 Units Mixed-Use in Noe Valley
$7,600,000
$844/SqFt
Cap Rate: 5.13% | GRM: 14.55
