Mixed-Use Building Near Union
For Sale
$2,600,000
620 Ofarrell Street, San Francisco, CA 94109
Mixed-use building with commercial and residential units near Union Square.
Property Size4,240 SF
Price / SF$613.21
Days on Market449
Property Features for 620 Ofarrell Street
General Information
Standard status
Active
Size
4,240 SF
Building Details
Year Built
1909
Listing Agency:
COMPASS COMMERCIAL
(415) 345-3000
Listed By:
THEODORE WONG
Source:
Corcoran
Added: Jun 10, 2025
Changed: Mar 16
Last Checked: Aug 31 at 7:15PM
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.
Located less than a mile from San Francisco's Union Square, this mixed-use building offers a rare opportunity in the heart of the city. The ground floor is anchored by Louder Restaurant, providing commercial income. The upper floors consist of 13 SRO units. Residents have access to a common kitchen and private and shared restrooms. Seven rooms hold city-designated tourist licenses and are rented nightly, historically generating short rental income. The remaining six rooms are suited for longer-term tenants, with four to be delivered vacant, allowing flexibility in tenant selection and rent stabilization. The property, with a size of 4240 square feet, is offered at a 8.31% CAP rate and 9.02 GRM, providing immediate income with upside potential through lease-up and operational optimization.
Key Highlights
- Prime location less than a mile from San Francisco's Union Square.
- Mixed‑use building with established commercial tenant (Louder Restaurant) providing steady income.
- Seven SRO units with city‑designated tourist licenses generating strong short‑term rental income.
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
$81,090
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
3.12%
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%
$1,621,800
$1.6M
Cap Rate 7%
$1,158,429
$1.2M
Cap Rate 9%
$901,000
$901.0K
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
$152.6K $36.00/SF
− Vacancy
−$22.9K −$5.40/SF
EGI
$129.7K $30.60/SF
− OpEx
−$48.7K −$11.48/SF
NOI
$81.1K $19.13/SF
Area
ZIP 94109
Vacancy
15.00%
Lease Rate
$36.00 /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%
$1,621,800
Cap Rate 7%
$1,158,429
Cap Rate 9%
$901,000
Alternative Uses
Best Use
Retail
$19.33M
$16.91M – $22.55M
NOI $1,353,096 @ 7.0% cap · market cap 52.04%
Second Best
Specialty Retail
$12.74M
$11.15M – $14.87M
NOI $891,990 @ 7.0% cap · market cap 34.31%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
20,154
Businesses Nearby
233k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 42%
Dining 17%
Groceries 15%
Hotels & Casinos 14%
Saks Fifth Avenue
Apparel
37,554 visits/mo
0.4 miles
Trader Joe's
Groceries
34,815 visits/mo
0.4 miles
Neiman Marcus
Apparel
30,144 visits/mo
0.5 miles
McDonald's
Dining
28,460 visits/mo
0.4 miles
Williams-Sonoma
Home Improvements & Furnishings
16,435 visits/mo
0.4 miles
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 Retail in San Francisco, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Mixed-use building with commercial and residential units near Union Square.
Where is this hotel located?
The property is located at 620 Ofarrell Street San Francisco, CA.
What is the asking price?
The asking price for this property is $2,600,000.
What are key features of this property?
This property features: Prime location less than a mile from San Francisco's Union Square.; Mixed‑use building with established commercial tenant (Louder Restaurant) providing steady income.; Seven SRO units with city‑designated tourist licenses generating strong short‑term rental income.
