Historic Mixed-Use
For Sale
$995,000
Pending
422-424 Tehama Street, San Francisco, CA 94103
Two-level configuration with separate lower access, residential features, and an accessory rear music studio.
Property Size1,957 SF
Days on Market45
Property Features for 422-424 Tehama Street
General Information
Standard status
Pending
Size
1,957 SF
Property subtype
Multi-Family
Zoning
RSD
Building Details
Year Built
1906
Listing Agency:
Colliers International
(415) 275-0229
Listed By:
Readdress
(415) 275-0229
Source:
Readdress
Added: Jul 18
Changed: Aug 31
Last Checked: Aug 30 at 4:33PM
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 Colliers International
Investment Insights
Based on property information with market context.
Constructed in 1906, this two-level mixed-use property combines a three-bedroom upper flat with a separately accessed lower portion. The upper residence includes an eat-in kitchen and full bath, while the lower area contains its own kitchen, bath, and additional rooms. An accessory structure at the rear is currently used as a music studio and is not represented as permitted living space.
The property is located in San Francisco’s SoMa district, with access to downtown, public transit, and major commuter routes. RSD zoning allows residential, live/work, and commercial uses. The 3R Report identifies the legal use as a one-family dwelling with commercial; any changes to the configuration or use remain subject to review and approval by Planning and DBI. Buyers should independently verify legal use, square footage, layout, conversion potential, and tenancy rights.
The property is located in San Francisco’s SoMa district, with access to downtown, public transit, and major commuter routes. RSD zoning allows residential, live/work, and commercial uses. The 3R Report identifies the legal use as a one-family dwelling with commercial; any changes to the configuration or use remain subject to review and approval by Planning and DBI. Buyers should independently verify legal use, square footage, layout, conversion potential, and tenancy rights.
Key Highlights
- 1906 construction in San Francisco’s SoMa district
- Upper‑level three‑bedroom flat with eat‑in kitchen and full bath
- Separately accessed lower portion with kitchen, bath, and additional rooms
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
$43,666
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
4.39%
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%
$873,320
$873.3K
Cap Rate 7%
$623,800
$623.8K
Cap Rate 9%
$485,178
$485.2K
Market Conditions
NOI Build-Up for 1,957 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
$82.2K $42.00/SF
− Vacancy
−$12.3K −$6.30/SF
EGI
$69.9K $35.70/SF
− OpEx
−$26.2K −$13.39/SF
NOI
$43.7K $22.31/SF
Area
San Francisco, CA
Vacancy
15.00%
Lease Rate
$42.00 /SF/Yr
Expense Ratio
37.50%
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%
$873,320
Cap Rate 7%
$623,800
Cap Rate 9%
$485,178
Alternative Uses
Best Use
Mixed Use
$623.8K
$545.8K – $727.8K
NOI $43,666 @ 7.0% cap · market cap 4.39%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$9.56M
$8.36M – $11.15M
NOI $669,140 @ 7.0% cap · market cap 67.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
19,974
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-level configuration with separate lower access, residential features, and an accessory rear music studio.
Where is this mixed-use property located?
The property is located at 422-424 Tehama Street San Francisco, CA.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 1906 construction in San Francisco’s SoMa district; Upper‑level three‑bedroom flat with eat‑in kitchen and full bath; Separately accessed lower portion with kitchen, bath, and additional rooms
