14-Unit Apartment Building with
For Sale
$5,228,000
Pending
3967 Sacramento Street, San Francisco, CA 94118
Fourteen-unit apartment building with 10 on-site parking spaces and completed soft-story seismic upgrades.
Property Size9,500 SF
Days on Market84
Property Features for 3967 Sacramento Street
General Information
Standard status
Pending
Size
9,500 SF
Property subtype
Multi Family
Building Details
Year Built
1912
Listing Agency:
Marcus & Millichap
Listed By:
Eymon Binesh · License #02060059
(650) 546-1030
Source:
Exitrealty
Added: Jun 16
Changed: Sep 5
Last Checked: Sep 6 at 5:48AM
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.
3967 Sacramento Street is a 14-unit apartment building for sale, offering a mix of eight one-bedroom units and six studios. The property includes 10 on-site parking spaces and has completed soft-story seismic upgrades.
The asset is located in San Francisco’s Presidio Heights area. The public remarks also indicate a current 4.92% CAP rate, with potential upside discussed to an 8.77% CAP. Additional value-add opportunities mentioned include future ADU development or a tenancy-in-common conversion.
Overall, this is a well-maintained multifamily offering with an in-place unit mix and completed seismic improvements, alongside strategies described in the remarks for future enhancement.
The asset is located in San Francisco’s Presidio Heights area. The public remarks also indicate a current 4.92% CAP rate, with potential upside discussed to an 8.77% CAP. Additional value-add opportunities mentioned include future ADU development or a tenancy-in-common conversion.
Overall, this is a well-maintained multifamily offering with an in-place unit mix and completed seismic improvements, alongside strategies described in the remarks for future enhancement.
Key Highlights
- 14‑unit apartment building in Presidio Heights
- Unit mix includes 8 one‑bedroom units and 6 studios
- Completed soft‑story seismic upgrades
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
$308,437
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
5.90%
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%
$6,168,740
$6.2M
Cap Rate 7%
$4,406,243
$4.4M
Cap Rate 9%
$3,427,078
$3.4M
Market Conditions
NOI Build-Up for 9,500 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
$598.5K $63.00/SF
− Vacancy
−$37.7K −$3.97/SF
EGI
$560.8K $59.03/SF
− OpEx
−$252.4K −$26.56/SF
NOI
$308.4K $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%
$6,168,740
Cap Rate 7%
$4,406,243
Cap Rate 9%
$3,427,078
Alternative Uses
Best Use
Apartment 5plus
$4.41M
$3.86M – $5.14M
NOI $308,437 @ 7.0% cap · market cap 5.90%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$46.40M
$40.60M – $54.14M
NOI $3,248,252 @ 7.0% cap · market cap 62.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,104
Businesses Nearby
Explore this area
Business Placement
Demographics for 94118, CA
42,356
Population
19,052
Households
2.2
Avg Household Size
37
Median Age
72%
College-Educated
94%
High-School Grad
2.0 sq mi
ZIP Area
21,178
Density / Sq Mi
$159,550
Median Household Income
$92,946
Median Earnings
$2,695
Median Rent
$1,817,200
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 - Fourteen-unit apartment building with 10 on-site parking spaces and completed soft-story seismic upgrades.
Where is this apartment building located?
The property is located at 3967 Sacramento Street San Francisco, CA.
What is the asking price?
The asking price for this property is $5,228,000.
What are key features of this property?
This property features: 14‑unit apartment building in Presidio Heights; Unit mix includes 8 one‑bedroom units and 6 studios; Completed soft‑story seismic upgrades
