San Francisco Multifamily Investment
For Sale
$3,390,000
282 Valley St, San Francisco, CA 94131
Six-unit property with income and rental upside in San Francisco.
Property Size5,950 SF
Price / SF$569.75
Days on Market96
Property Features for 282 Valley St
General Information
Standard status
Active
Size
5,950 SF
Property subtype
Multifamily
Occupancy
100%
Amenities
Fully occupied asset in one of San Francisco's most supply-constrained, high-income submarkets, featuring classic 1910 architecture and strong tenant demand.
Rents are approximately 39% below market, offering a clear path to boost cash flow and improve returns through rent normalization with minimal capital investment.
Offered at $3.48M ($580K/unit) with a 5.09% in-place cap rate and 9.06% pro forma cap, providing both stable current income and compelling long-term upside.
Building Details
Building Size
5,950 SF
Units
6
Listing Agency:
Marcus & Millichap
(415) 625-2161
Listed By:
Eymon Binesh · License #License(s): CA: 02060059
(415) 625-2161
Source:
Marcusmillichap
Added: May 27
Changed: Aug 23
Last Checked: Aug 30 at 1:11PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Marcus & Millichap
Investment Insights
Based on property information with market context.
Located in the heart of San Francisco, 282 Valley Street is a six-unit multifamily property. Constructed in 1910, the property has classic architectural appeal and durable construction. The property is fully occupied, with all six units currently leased below market value. The property is generating a 5.09% cap rate, with potential for improvement to a 9.06% pro forma cap rate through rental increases and operational improvements. The in-place income reflects a GRM of 15.09, which is poised to compress to 9.19 as rents align with market levels. The property offers an attractive entry point into the San Francisco multifamily market. The loss-to-lease creates an opportunity to enhance value by repositioning rents toward market rates without requiring substantial capital investment. The property is well-positioned to capture strong demand and future rental growth. The property size is 5,950 square feet.
Key Highlights
- Significant rental upside potential by bringing below‑market rents to market rates.
- Located in a highly desirable San Francisco neighborhood with strong demand and rental growth.
- Attractive entry point into the San Francisco multifamily market at $580,000 per unit.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$193,179
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.70%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,863,580
$3.9M
Cap Rate 7%
$2,759,700
$2.8M
Cap Rate 9%
$2,146,433
$2.1M
Market Conditions
NOI Build-Up for 5,950 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$374.9K $63.00/SF
− Vacancy
−$23.6K −$3.97/SF
EGI
$351.2K $59.03/SF
− OpEx
−$158.1K −$26.56/SF
NOI
$193.2K $32.47/SF
Area
San Francisco, CA
Vacancy
6.30%
Lease Rate
$63.00 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,863,580
Cap Rate 7%
$2,759,700
Cap Rate 9%
$2,146,433
Alternative Uses
Best Use
Apartment 5plus
$2.76M
$2.41M – $3.22M
NOI $193,179 @ 7.0% cap · market cap 5.70%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$29.06M
$25.43M – $33.91M
NOI $2,034,431 @ 7.0% cap · market cap 60.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,220
Businesses Nearby
Explore this area
Business Placement
Demographics for 94131, CA
28,810
Population
13,755
Households
2.1
Avg Household Size
41
Median Age
78%
College-Educated
98%
High-School Grad
2.0 sq mi
ZIP Area
14,405
Density / Sq Mi
$198,779
Median Household Income
$119,053
Median Earnings
$2,971
Median Rent
$1,749,500
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Six-unit property with income and rental upside in San Francisco.
Where is this apartment building located?
The property is located at 282 Valley St San Francisco, CA.
What is the asking price?
The asking price for this property is $3,390,000.
What are key features of this property?
This property features: Significant rental upside potential by bringing below‑market rents to market rates.; Located in a highly desirable San Francisco neighborhood with strong demand and rental growth.; Attractive entry point into the San Francisco multifamily market at $580,000 per unit.
