Mixed-Use Building with Restaurant
For Sale
$2,300,000
620 Ofarrell, San Francisco, CA 94109
Ground floor Louder Restaurant with 13 SRO units above, including city tourist-licensed rooms rented nightly.
Property Size4,240 SF
Days on Market51
Property Features for 620 Ofarrell
General Information
Standard status
Active
Size
4,240 SF
Class
Class C
Additional Details
Cap Rate
8.31%
Multifamily Units
13
Building Details
Building Size
4,240 SF
Year Built
1909
Buildings
1
Tenancy
Multi
Listing Agency:
(415) 317-5888
Listed By:
The Wiley Team
(415) 317-5888
Source:
Sanfranciscorealestategroup.idxbroker
Added: Jul 10
Changed: Aug 24
Last Checked: Aug 28 at 7:05AM
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 The Wiley Team
Investment Insights
Based on property information with market context.
This mixed-use building combines a ground-floor restaurant with 13 SRO units on the upper floors. The property features access to a common kitchen, with private and shared restrooms serving residents across the SRO layout. Seven of the rooms hold city-designated tourist licenses and are rented on a nightly basis. The remaining six rooms are suited for longer-term tenants, with four of those rooms delivered vacant to allow a new owner flexibility in selecting tenants and stabilizing rents.
The building is located less than a mile from San Francisco’s Union Square. The offered pricing reflects an 8.31% cap rate and a 9.02 GRM, based on the information provided.
The building is located less than a mile from San Francisco’s Union Square. The offered pricing reflects an 8.31% cap rate and a 9.02 GRM, based on the information provided.
Key Highlights
- Mixed‑use building with Louder Restaurant on the ground floor and 13 SRO units on the upper floors.
- City‑designated tourist‑licensed rooms (7) are rented on a nightly basis.
- 13 SRO units include access to a common kitchen, with private and shared restrooms.
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
$126,647
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
5.51%
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%
$2,532,940
$2.5M
Cap Rate 7%
$1,809,243
$1.8M
Cap Rate 9%
$1,407,189
$1.4M
Market Conditions
NOI Build-Up for 4,240 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
$245.8K $57.96/SF
− Vacancy
−$15.5K −$3.65/SF
EGI
$230.3K $54.31/SF
− OpEx
−$103.6K −$24.44/SF
NOI
$126.6K $29.87/SF
Area
ZIP 94109
Vacancy
6.30%
Lease Rate
$57.96 /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%
$2,532,940
Cap Rate 7%
$1,809,243
Cap Rate 9%
$1,407,189
Alternative Uses
Best Use
Specialty Retail
$12.74M
$11.15M – $14.87M
NOI $891,990 @ 7.0% cap · market cap 38.78%
Second Best
Apartment 5plus
$1.81M
$1.58M – $2.11M
NOI $126,647 @ 7.0% cap · market cap 5.51%
Theoretical Best
Retail
$19.33M
$16.91M – $22.55M
NOI $1,353,096 @ 7.0% cap · market cap 58.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
13
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
20,154
Businesses Nearby
Explore this area
Business Placement
Demographics for 94109, CA
58,501
Population
39,043
Households
1.5
Avg Household Size
38
Median Age
65%
College-Educated
90%
High-School Grad
1.1 sq mi
ZIP Area
53,183
Density / Sq Mi
$112,201
Median Household Income
$89,841
Median Earnings
$2,172
Median Rent
$1,390,000
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?
Short term rental property - Ground floor Louder Restaurant with 13 SRO units above, including city tourist-licensed rooms rented nightly.
Where is this short term rental property located?
The property is located at 620 Ofarrell San Francisco, CA.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: Mixed‑use building with Louder Restaurant on the ground floor and 13 SRO units on the upper floors.; City‑designated tourist‑licensed rooms (7) are rented on a nightly basis.; 13 SRO units include access to a common kitchen, with private and shared restrooms.
