Live-Work Building with Soaring
For Sale
$3,000,000
724 Valencia St, San Francisco, CA 94110
Mixed-use live-work building with tenant-occupied upper flat and a flexible ground-floor commercial space.
Property Size3,792 SF
Price / SF$791.14
Days on Market19
Property Features for 724 Valencia St
General Information
Standard status
Active
Size
3,792 SF
Property subtype
Residential Income
Units
Unit Mix
1 x 1BR/1BA
Multifamily Units
1
Additional Details
Utilities to Site
Yes
Sprinkler System
Yes
Amenities
400-amp electrical service
large gas heater
electric aluminum roll-up door
skylights
sandblasted concrete walls and ceiling
18-foot ceilings
ADA-compliant bathroom
front entry ramp
Building Details
Buildings
1
Tenancy
Single
Listing Agency:
Sotheby's International Realty
(415) 309-7836
Listed By:
Patricia A. Lawton
(415) 309-7836
Source:
Exprealty
Added: Jul 26
Changed: Jul 31
Last Checked: Aug 12 at 12:40PM
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 Sotheby's International Realty
Investment Insights
Based on property information with market context.
724 Valencia St is a Mission Dolores mixed-use live-work building with ground-floor commercial space and an upper-level flat. The ground-floor area offers approximately 2,500 square feet of dramatic, open space with soaring ceilings and skylights, along with extensive infrastructure upgrades already in place. Improvements include a newer 400-amp electrical service, a sprinkler system, a large gas heater, an electric aluminum roll-up door with a separate man-door entry, four skylights, and sandblasted concrete walls and ceiling, complemented by approximately 18-foot ceilings. The commercial space also features an ADA-compliant bathroom and front entry ramp.
Above, the bright residential flat is tenant-occupied and provides an ideal live-work setup. The flat is approximately 1,100 square feet with an open-concept kitchen and living area, wood floors, exposed beam ceilings, floor-to-ceiling windows facing Valencia Street, a one-bedroom, one-bath layout, direct access to a private roof deck, and a dedicated private laundry room.
Set on Valencia Street in a busy retail corridor, this property is designed for an owner-user who wants flexible ground-floor space while also benefiting from the income potential of the upstairs flat.
Above, the bright residential flat is tenant-occupied and provides an ideal live-work setup. The flat is approximately 1,100 square feet with an open-concept kitchen and living area, wood floors, exposed beam ceilings, floor-to-ceiling windows facing Valencia Street, a one-bedroom, one-bath layout, direct access to a private roof deck, and a dedicated private laundry room.
Set on Valencia Street in a busy retail corridor, this property is designed for an owner-user who wants flexible ground-floor space while also benefiting from the income potential of the upstairs flat.
Key Highlights
- Approximately 2,500 SF ground‑floor commercial space with soaring ceilings and four skylights
- Newer 400‑amp electrical service and sprinkler system in place
- Approximately 18‑foot ceilings plus sandblasted concrete walls and ceiling
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
$117,252
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
3.91%
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%
$2,345,040
$2.3M
Cap Rate 7%
$1,675,029
$1.7M
Cap Rate 9%
$1,302,800
$1.3M
Market Conditions
NOI Build-Up for 3,792 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
$227.5K $60.00/SF
− Vacancy
−$14.3K −$3.78/SF
EGI
$213.2K $56.22/SF
− OpEx
−$95.9K −$25.30/SF
NOI
$117.3K $30.92/SF
Area
ZIP 94110
Vacancy
6.30%
Lease Rate
$60.00 /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%
$2,345,040
Cap Rate 7%
$1,675,029
Cap Rate 9%
$1,302,800
Alternative Uses
Best Use
Retail
$17.29M
$15.13M – $20.17M
NOI $1,210,128 @ 7.0% cap · market cap 40.34%
Second Best
Apartment 5plus
$1.68M
$1.47M – $1.95M
NOI $117,252 @ 7.0% cap · market cap 3.91%
Theoretical Best
Specialty Retail
$18.52M
$16.21M – $21.61M
NOI $1,296,565 @ 7.0% cap · market cap 43.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Single-tenant
Tenancy
Yes
Sprinkler system
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
6,916
Businesses Nearby
Explore this area
Business Placement
Demographics for 94110, CA
68,336
Population
30,685
Households
2.2
Avg Household Size
38
Median Age
61%
College-Educated
87%
High-School Grad
2.4 sq mi
ZIP Area
28,473
Density / Sq Mi
$152,403
Median Household Income
$80,431
Median Earnings
$2,404
Median Rent
$1,500,200
Median Home Value
Market
Vacancy Rate% for Office in San Francisco, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Live-work space - Mixed-use live-work building with tenant-occupied upper flat and a flexible ground-floor commercial space.
Where is this live-work space located?
The property is located at 724 Valencia St San Francisco, CA.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Approximately 2,500 SF ground‑floor commercial space with soaring ceilings and four skylights; Newer 400‑amp electrical service and sprinkler system in place; Approximately 18‑foot ceilings plus sandblasted concrete walls and ceiling
