San Francisco Multi-Unit Market Report: Q1 2020

The Chapleau Team
April 1, 2020

The San Francisco multi-unit real estate market had a strong Q1 in 2020, with both transaction volumes and property values up. Our quarterly market report breaks down the market’s performance during the quarter, and offers a side-by-side comparison with the first quarter of 2019.

The sales data shown in the report reflects the market prior to the stay-at-home orders that were put into place as a result of coronavirus. We expect to see a more detailed overview of the effects of COVID-19 in the Q2 statistics to come.

Shrinking Inventory
Although the wider effects of coronavirus on the housing market remain to be seen, we did see an immediate impact on inventory when the statewide shelter-in-place order was issued. In particular, we saw a drop in the number of new multi-unit listings and an increase in properties being withdrawn from the market or placed on hold.

Property Values Remain Strong
Both 3-4 and 5+ unit property values remained strong in the first quarter of 2020. The 5+ unit market is even showing a slight increase in sale price per square foot when compared to last year’s data.

Promising Pricing Metrics: Low Cap Rates & High GRMs
Pricing metrics remained strong in Q1 2020. San Francisco saw an increase in the average gross rent multiplier and a decrease in the average cap rate compared to the year before.
Multi-Unit Sales Per Neighborhood (3-25 Units):
San Francisco's Most Expensive 3-4 Unit Property - Measured by Sale Price:
2106-08 Broadway St
3 Units in Pacific Heights
$7,750,000
$975/SqFt
Cap Rate: N/A | GRM: N/A
San Francisco's Most Expensive 3-4 Unit Property - Measured by Price Per SqFt:
3225 24th St
4 Units in the Inner Mission
$2,000,000
$1,098/SqFt
Cap Rate: N/A | GRM: 21.50
San Francisco's Most Expensive 5-9 Unit Property - Measured by Sale Price:
3760 Fillmore St
7 Units in the Marina
$6,500,000
$809/SqFt
Cap Rate: 2.92% | GRM: 21.62
San Francisco's Most Expensive 5-9 Unit Property - Measured by Price Per SqFt:
241 Upper Terrace
5 Units in Buena Vista
$3,850,000
$864/SqFt
Cap Rate: 3.19% | GRM: 20.60
San Francisco's Most Expensive 10+ Unit Property - Measured by Sale Price:
2150-60 Fell St
24 Units in NOPA
$7,950,000
$809/SqFt
Cap Rate: 2.91% | GRM: 18.07
San Francisco's Most Expensive 10+ Unit Property - Measured by Price Per SqFt:
2150-60 Fell St
24 Units in NOPA
$7,950,000
$809/SqFt
Cap Rate: 2.91% | GRM: 18.07
San Francisco's Most Expensive Mixed-Use Property - Measured by Sale Price:
2317 Market St
10 Unit Mixed-Use in Eureka Valley
$5,800,000
$419/SqFt
Cap Rate: 5.17% | GRM: 13.67
San Francisco's Most Expensive Mixed-Use Property - Measured by Price Per SqFt:
1853 Powell St
2 Unit Mixed-Use in North Beach
$2,050,000
$845/SqFt
Cap Rate: N/A | GRM: 16.75

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