Mixed-Use Restaurant With Three-Bedroom
For Sale
$1,899,000
558-560 Balboa St, San Francisco, CA 94118
MULTI_FAMILY - San Francisco, CA
Property Size1,980 SF
Lot Size0.04 Acres
Price / SF$959.09
Days on Market208
Property Features for 558-560 Balboa St
General Information
Property type
Residential Multi Family
Property subtype
Other
Bedrooms
3
Bathrooms
1
Full bathrooms
1
Rooms
Bedroom 2, Bathroom 1, Bedroom 1, Bedroom 3
Interior features
Tub w/Shower Over
Exterior features
Back Yard
Subdivision
Inner Richmond
Lot features
Level, Back Yard, Street Light(s)
Standard status
Active
APN
1549 025
Size
1,980 SF
Lot size
0.04 Acres
Building Details
Year built
1906
Number of units
2
Flooring type
Hardwood
Building materials
Stucco
Roof type
Composition
Listing Agency:
Alliance Bay Realty
(510) 742-6600
Listed By:
San Lieu · License #01455071
(510) 882-0027
Added: Jan 14
Changed: Aug 2
Last Checked: Aug 10 at 5:06PM
MLS# 41120808
Copyright © 2026 Bay East. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This mixed-use property includes an established Japanese and Chinese restaurant on the main street level and a private residential unit on the upper level. The upper unit is described as move-in ready and features three bedrooms and one bathroom, a separate entrance, a formal living room, and an open kitchen/dining room layout. Original hardwood floors are included, along with a private backyard balcony and a tub with a shower over. The residential unit will be delivered vacant.
The building is constructed with stucco and is covered by a composition roof. It was built in 1906 and sits on a 0.043-acre lot with a total property size of 1,980 square feet. Exterior features include a back yard.
This is positioned for owner-occupants who want to live in the residence while operating the restaurant, or for investors looking to hold both spaces as income-generating components.
The building is constructed with stucco and is covered by a composition roof. It was built in 1906 and sits on a 0.043-acre lot with a total property size of 1,980 square feet. Exterior features include a back yard.
This is positioned for owner-occupants who want to live in the residence while operating the restaurant, or for investors looking to hold both spaces as income-generating components.
Key Highlights
- Established Japanese and Chinese restaurant on the main street level
- Upper residential unit: move‑in ready, three bedrooms and one bathroom, separate entrance
- Private backyard balcony included with the residential 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
$64,285
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
3.39%
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%
$1,285,700
$1.3M
Cap Rate 7%
$918,357
$918.4K
Cap Rate 9%
$714,278
$714.3K
Market Conditions
NOI Build-Up for 1,980 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
$124.7K $63.00/SF
− Vacancy
−$7.9K −$3.97/SF
EGI
$116.9K $59.03/SF
− OpEx
−$52.6K −$26.56/SF
NOI
$64.3K $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%
$1,285,700
Cap Rate 7%
$918,357
Cap Rate 9%
$714,278
Alternative Uses
Best Use
Specialty Retail
$9.67M
$8.46M – $11.28M
NOI $677,004 @ 7.0% cap · market cap 35.65%
Second Best
Apartment 5plus
$918.4K
$803.6K – $1.07M
NOI $64,285 @ 7.0% cap · market cap 3.39%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
2,829
Businesses Nearby
Under-served
Demand for This Use
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?
Conventional restaurant - Street-level Japanese and Chinese restaurant with a move-in-ready three-bedroom residential unit above, plus a private balcony.
Where is this conventional restaurant located?
The property is located at 558-560 Balboa St San Francisco, CA.
What is the asking price?
The asking price for this property is $1,899,000.
What are key features of this property?
This property features: Established Japanese and Chinese restaurant on the main street level; Upper residential unit: move‑in ready, three bedrooms and one bathroom, separate entrance; Private backyard balcony included with the residential unit
