Downtown San Francisco Investment
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225 Ellis St, San Francisco, CA 94102
16-room SRO with retail in Downtown San Francisco.
Property Size6,567 SF
Price / SF$606.06
Days on Market199
Property Features for 225 Ellis St
General Information
Standard status
Active
Size
6,567 SF
Property subtype
Multifamily
Zoning
RC4
Building Details
Year Built
1910
Listing Agency:
Marcus & Millichap - San Francisco
(415) 963-3000
Listed By:
Angelo Baglieri · License #CA 01996324
Source:
Crexi
Added: Jan 21
Changed: Aug 8
Last Checked: Aug 8 at 6:33AM
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 - San Francisco
Investment Insights
Based on property information with market context.
This property is a 16-room SRO with ground floor retail space, situated in Downtown San Francisco, California. The property is positioned to benefit from the city's recovery in tourism and business travel. Its central location provides access to public transit and attractions, including Union Square, the Golden Gate Bridge and Fisherman's Wharf, as well as dining, shopping and cultural experiences. The property is located steps away from the city's primary business districts and is positioned to attract a diverse clientele in the heart of San Francisco near Union Square. The property has a size of 6567 square feet.
Key Highlights
- Prime Downtown San Francisco location near business districts and Union Square
- Investment opportunity poised to benefit from San Francisco's tourism and business travel recovery
- 16‑room SRO with ground floor retail space
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
$213,211
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
5.36%
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%
$4,264,220
$4.3M
Cap Rate 7%
$3,045,871
$3.0M
Cap Rate 9%
$2,369,011
$2.4M
Market Conditions
NOI Build-Up for 6,567 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
$413.7K $63.00/SF
− Vacancy
−$26.1K −$3.97/SF
EGI
$387.7K $59.03/SF
− OpEx
−$174.4K −$26.56/SF
NOI
$213.2K $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%
$4,264,220
Cap Rate 7%
$3,045,871
Cap Rate 9%
$2,369,011
Alternative Uses
Best Use
Retail
$29.94M
$26.20M – $34.93M
NOI $2,095,704 @ 7.0% cap · market cap 52.66%
Second Best
Apartment 5plus
$3.05M
$2.67M – $3.55M
NOI $213,211 @ 7.0% cap · market cap 5.36%
Theoretical Best
Specialty Retail
$32.08M
$28.07M – $37.42M
NOI $2,245,397 @ 7.0% cap · market cap 56.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
19,853
Businesses Nearby
Explore this area
Business Placement
Demographics for 94102, CA
39,432
Population
23,153
Households
1.7
Avg Household Size
40
Median Age
42%
College-Educated
81%
High-School Grad
0.7 sq mi
ZIP Area
56,331
Density / Sq Mi
$64,781
Median Household Income
$55,873
Median Earnings
$1,517
Median Rent
$996,300
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?
Multifamily property - 16-room SRO with retail in Downtown San Francisco.
Where is this multifamily property located?
The property is located at 225 Ellis St San Francisco, CA.
What is the asking price?
The asking price for this property is $3,980,000.
What are key features of this property?
This property features: Prime Downtown San Francisco location near business districts and Union Square; Investment opportunity poised to benefit from San Francisco's tourism and business travel recovery; 16‑room SRO with ground floor retail space
