Renovated Apartment
New
For Sale
$7,500,000
2878 16th Street, San Francisco, CA 94103
Rebuilt multifamily property with modernized residences, new building systems, and resident laundry in select units.
Property Size7,500 SF
Days on Market7
Property Features for 2878 16th Street
General Information
Standard status
Active
Size
7,500 SF
Property subtype
Multi Family
Units
Unit Mix
6 x 2BR, 4 x ADU
Multifamily Units
10
Additional Details
Public Transit
Yes
Amenities
in-unit laundry
forced-air heating and air conditioning
tankless water heaters
Building Details
Building Size
7,500 SF
Year Built
1908
Year Renovated
2026
Buildings
1
Listing Agency:
Compass Commercial
Listed By:
Adam D Filly · License #01354775
(415) 516-9843
Source:
Paytonslist
Added: Sep 15
Changed: Sep 18
Last Checked: Sep 21 at 7:19AM
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 Compass Commercial
Investment Insights
Based on property information with market context.
This apartment building contains 10 units that were remodeled in 2026 as part of an extensive rehabilitation. The work included the foundation, roof, siding, windows, plumbing, electrical systems, and HVAC, with a certificate of completion issued in 2026. Each residence has forced-air heating and air conditioning in every room, while six two-bedroom apartments include in-unit laundry. Four ADUs were added during the rebuilding process, and every unit has a tankless water heater.
The property sits between the Mission District and Potrero Hill, with access to dining, public transportation, commuter shuttles serving Google, Apple, and Meta, and neighborhood amenities. Gas is separately metered and paid directly by tenants, a detail that supports more defined utility responsibility. Originally built in 1908, the building combines its existing structure with substantially updated physical systems and remodeled living spaces.
The property sits between the Mission District and Potrero Hill, with access to dining, public transportation, commuter shuttles serving Google, Apple, and Meta, and neighborhood amenities. Gas is separately metered and paid directly by tenants, a detail that supports more defined utility responsibility. Originally built in 1908, the building combines its existing structure with substantially updated physical systems and remodeled living spaces.
Key Highlights
- 10‑unit apartment building with all units remodeled in 2026
- Foundation, roof, siding, windows, plumbing, electrical, and HVAC replaced or newly completed
- Six two‑bedroom apartments include in‑unit laundry
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
$243,503
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
3.25%
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%
$4,870,060
$4.9M
Cap Rate 7%
$3,478,614
$3.5M
Cap Rate 9%
$2,705,589
$2.7M
Market Conditions
NOI Build-Up for 7,500 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
$472.5K $63.00/SF
− Vacancy
−$29.8K −$3.97/SF
EGI
$442.7K $59.03/SF
− OpEx
−$199.2K −$26.56/SF
NOI
$243.5K $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%
$4,870,060
Cap Rate 7%
$3,478,614
Cap Rate 9%
$2,705,589
Alternative Uses
Best Use
Apartment 5plus
$3.48M
$3.04M – $4.06M
NOI $243,503 @ 7.0% cap · market cap 3.25%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$36.63M
$32.06M – $42.74M
NOI $2,564,409 @ 7.0% cap · market cap 34.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
10
Residential units
Location Intelligence
Trade Area within ½ mile
7,163
Businesses Nearby
Explore this area
Business Placement
Demographics for 94103, CA
37,843
Population
20,920
Households
1.8
Avg Household Size
37
Median Age
56%
College-Educated
88%
High-School Grad
1.4 sq mi
ZIP Area
27,031
Density / Sq Mi
$122,339
Median Household Income
$83,348
Median Earnings
$2,146
Median Rent
$1,057,600
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 - Rebuilt multifamily property with modernized residences, new building systems, and resident laundry in select units.
Where is this apartment building located?
The property is located at 2878 16th Street San Francisco, CA.
What is the asking price?
The asking price for this property is $7,500,000.
What are key features of this property?
This property features: 10‑unit apartment building with all units remodeled in 2026; Foundation, roof, siding, windows, plumbing, electrical, and HVAC replaced or newly completed; Six two‑bedroom apartments include in‑unit laundry
