Sell a Mixed-Use Building in San Francisco: 2026 Guide With Allison Chapleau

A mixed-use building has business space as well as homes.1 Upstairs in a San Francisco mixed-use building, you've got apartments that may fall under the city's Rent Ordinance.2 Downstairs, you've got a storefront on a commercial lease, and commercial units are entirely exempt from that ordinance.2 Investors can price those two kinds of income differently, too.3

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This guide covers how buyers value blended income, what to do about a vacant storefront, how zoning and financing shape your buyer pool, and how to choose the right agent. It's written for California owners in general, with San Francisco rules and examples where they matter.

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Allison Chapleau is a Senior Vice President at Compass Commercial Brokerage.4 For more than 24 years, she has helped San Francisco owners sell multi-unit, mixed-use and commercial properties, and her site counts 300+ multi-unit and mixed-use buildings sold.5 She's widely regarded as San Francisco's top multi-unit Realtor.4,6

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Why San Francisco Owners Choose Allison Chapleau to Sell Mixed-Use Buildings

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Allison specializes exclusively in San Francisco multi-unit properties.5 Here's what that focus looks like in numbers.

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  • She was the #1 listing agent in San Francisco by number of 2-4 unit listings (78, versus 36 for the second-ranked agent) and by number of 5+ unit listings (115, versus 92) for 2021 through 2025, per Broker Metrics.4,6
  • The Off Market Podcast episode about her career describes her as surpassing $1 billion in sales.7
  • She works across all 10 San Francisco districts.4
  • More than 20 mixed-use buildings appear on her San Francisco sold properties page, including buildings in Noe Valley, the Mission, the Excelsior, Nob Hill and Downtown.8
  • She has 30+ court-supervised sales behind her,5 and her About page says she has managed probate sales, partition actions, 1031 exchanges and court-confirmed transactions.4

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If your mixed-use building sits in a trust or an estate, her San Francisco probate, trust and partition sales page shows that side of her work, including a mixed-use trust sale at 2955 Mission Street.9

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The seller of 4700 Mission Street, a mixed-use building in the Excelsior,10 left this testimonial on her homepage: "Allison was great to work with. I'm so glad she represented me in the sale of my mixed-use property. My sale was smooth, efficient, and profitable."5

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What a Mixed-Use Specialist Realtor Does for San Francisco Sellers

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Here's what Allison's selling process includes, per her own site.

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  • Pricing built on recent sales, cap rate movement, rent multiples and active buyer demand.4
  • A marketing package with professional photography, drone footage, floor plans, the current rent roll, proposed financing scenarios and a financial summary.11
  • Exposure on the San Francisco MLS, Realtor.com, LoopNet, Zillow and Trulia, plus Compass Commercial's platform and social media.11
  • Direct outreach to a network of 1,500+ qualified brokers and investors, with postcards and custom email campaigns.11
  • Virtual and in-person tours seven days a week, brokers' tours, and 24-hour notice for tenant-occupied units.11
  • Advice on which improvements are worth doing before you list, including larger items like tenant buyouts and seismic work.11
  • Ongoing buyer feedback and help weighing offers.4

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Her mixed-use listings break out each building's unit mix. The 691 Post Street listing showed 34 apartment units and 2 retail units,12 and the 1701 Church Street listing showed one commercial unit and two one-bedrooms.13 You can see how her team presents buildings on the San Francisco multi-unit property marketing page.

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Mixed-Use Specialist vs. Residential or Commercial Agent in San Francisco

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Allison's About page puts it simply: selling a multi-unit or commercial property in San Francisco is different from selling a single-family home.4 The buyer pool is more specialized, due diligence is rigorous, and rent rolls, lease structures, operating expenses and regulations carry real financial weight.4

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If you're comparing agents to sell a mixed-use building in San Francisco, here's what to ask.

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  • With a residential-only agent, ask how they'll present the storefront lease and what buyers will want to see in it.
  • With a commercial-only agent, ask how they'll handle the rent control side. Many residential units built on or before June 13, 1979 have both rent control and eviction protection in San Francisco.2 For March 1, 2026 through February 28, 2027, the allowed annual increase is 1.6%, and it can only be applied once every 12 months.14

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The commercial space works on a different track. Commercial units are entirely exempt from the Rent Ordinance, so the ordinance's limits on rent increases don't apply to the storefront.2 Allison's marketing package includes the current rent roll and a complete financial summary, so buyers can see both kinds of income.11 For the residential side in more depth, see our guide to selling a rent-controlled building in San Francisco.

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Why Hire a San Francisco Mixed-Use Expert Over a Friend With a License

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You may have a cousin, neighbor or old friend with a real estate license. When it's time to sell a mixed-use building in San Francisco, it's tempting to hand them the listing. Before you do, ask a few honest questions.

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  • How many mixed-use buildings have they sold in San Francisco? Ask for addresses you can look up.
  • Can they explain how a buyer prices storefront income differently from apartment income?
  • Do they have a list of investors and brokers who buy mixed-use property, or will they rely on the MLS alone?
  • Do they know the city's rules for vacant storefronts, residential tenant disclosures and zoning letters?
  • Are you comfortable pushing back on their pricing advice, or hearing hard feedback from them?

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That last point matters. You want an agent who'll give you hard feedback on price, and one you can push back on without putting a friendship on the line.

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How Buyers Value a Mixed-Use Building in San Francisco

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Start with two numbers. The cap rate is net operating income divided by value.3 The gross rent multiplier, or GRM, is price divided by annual gross rent.15

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A mixed-use building in San Francisco adds a twist. JPMorgan's sample cap rate table for the fourth quarter of 2025 showed San Francisco multifamily at 4.50% and San Francisco retail at 5.20%.3 A higher cap rate means each dollar of income buys less value.3

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Here's simple math to show the effect, not an appraisal. At a 4.50% cap rate, $100,000 of net income points to about $2.22 million in value.3 At 5.20%, the same $100,000 points to about $1.92 million.3 That's a gap of about $300,000 on the same income.3

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Real sales show how wide the range can be. Allison's sold mixed-use listings include:

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JPMorgan notes that individual deals are affected by a building's unique prospects and an investor's viewpoint, as well as the economy.3 For more on the method, read our guide to valuing an apartment building in San Francisco and our take on cap rates for San Francisco investors.

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What to Check in Your San Francisco Commercial Lease

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San Francisco's guidance for small business tenants lists important lease clauses, including how rent is calculated, the lease term, renewal options and what happens if the landlord sells.18 Before you list a San Francisco mixed-use building, pull out the storefront lease and check those terms.

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  • How much time is left on the lease, and if the tenant has an option to renew.18,19
  • How rent is calculated.18
  • Who's responsible for repairs, maintenance, insurance and utilities, and if it's a gross or NNN lease.19
  • What the lease says happens if the property is sold.18
  • If the tenant's business is allowed at that location under the zoning.18

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Her listings have called out long tenancies. The 1701 Church Street listing noted a long-term tenant, GetzWell, in place since 2008,13 and the 3144 22nd Street listing noted a commercial tenant in place for over five years.16 The 691 Post Street listing gave the expiration date of one retail lease, February 28, 2026.12

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Residential Tenant Rules for San Francisco Mixed-Use Sellers

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The apartments come with their own paperwork. Before selling property with rental units covered by Section 37.9 of the Rent Ordinance, the seller has to give tenants a written disclosure.20 It must say in bold type that tenants can't be evicted, have their rent raised beyond what the ordinance allows, or have their rental agreements materially changed solely because of the sale.20 It also has to tell tenants they aren't required to sign estoppel certificates, except as required by law or their rental agreement.20

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Selling With a Vacant Storefront in San Francisco

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An empty storefront can also affect your tax filings in San Francisco.21

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San Francisco has a Commercial Vacancy Tax on certain ground-floor commercial space kept vacant for more than 182 days in a calendar year.21 It applies to ground floors next to a public right of way in the named Neighborhood Commercial Districts or Neighborhood Commercial Transit Districts as they existed on March 3, 2020.21 Those districts include the 24th Street-Noe Valley, Castro Street, Haight Street and Excelsior Outer Mission districts, plus the Mission Street and Valencia Street transit districts.22

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The rate climbs the longer a space sits empty: $250 per linear foot of frontage for one year, $500 for two consecutive years, and $1,000 for three or more.21 Owners must file a return every year, even when the space is occupied.21 You can check details on the SF Treasurer's Commercial Vacancy Tax page. The Treasurer also notes that owners of mixed-use property who lease both residential and commercial space generally must register a separate business for each.21

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So should you lease the space first, or sell your mixed-use building in San Francisco with the storefront empty? It depends on the building and the buyer you're targeting. Two of Allison's sales show both paths.

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  • 489-491 Guerrero Street in Mission Dolores had one commercial space leased to a long-standing acupuncture practice and one vacant space marketed as ready to lease at market rate.23 It sold in July 2026 for $1,622,800 after multiple offers, $127,800 above list.23
  • 2955 Mission Street in the Inner Mission was delivered vacant and marketed as a development opportunity.24 It drew multiple offers and sold for $2,335,000 in June 2019.24 It was also a trust sale.9

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Allison's About page says she knows how to position vacancy versus stabilized tenancy, and that she understands the distinctions between owner-occupant buyers and institutional investors.4 That's the conversation to have with your agent before you decide.

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Zoning Checks Before You List a San Francisco Mixed-Use Building

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Before you list a San Francisco mixed-use building, confirm what the city has on record for the storefront's use and zoning.

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SF Planning's zoning page points owners to the Property Information Map, where the Zoning Information tab shows a parcel's zoning.25 For a formal answer, you can request a Zoning Verification Letter.25 It covers the property's current land use and zoning, including variances, special permits, conditions and violations.25 A Rebuild Letter, a type of verification letter, addresses if a building could be restored to its original condition and use after a fire or other natural disaster.25

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For the districts, the Family Zoning Plan and state laws, see our San Francisco zoning guide to RH, RM and mixed-use districts.

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Financing and the Buyer Pool for San Francisco Mixed-Use Property

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Next, look at how a buyer could pay for a mixed-use building in San Francisco.

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Fannie Mae's conventional guidelines do allow some mixed-use properties, but the Fannie Mae Selling Guide sets specific conditions.1 The property must be a one-unit dwelling the borrower occupies as a principal residence, the borrower must own and operate the business, and the property must be primarily residential.1 A building with several apartments and a storefront leased to an outside business doesn't meet those conditions, so a buyer would need financing outside this Fannie Mae option.1 Ask your Realtor to line up lender feedback before you set a price.

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Buildings with five or more residential units can open the door to multifamily lenders.26 Freddie Mac, for one, finances multifamily rental properties with 5 or more units.26 Our companion guide on larger apartment buildings covers that side.

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Taxes come into it too. For depreciation, the IRS treats a building as residential rental property only if 80% or more of its gross rental income comes from dwelling units.27 Residential rental property is depreciated over 27.5 years, while nonresidential real property uses 39 years.27 So the share of rent that comes from the storefront can change how a buyer depreciates the building.27

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Which buyers might look at a San Francisco mixed-use building?

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  • Private investors. The 691 Post Street sale went to private investors.4
  • Owner-users who want to live upstairs and run their own business downstairs, the setup Fannie Mae's mixed-use rules are written for.1
  • Developers, when the building or lot has upside, as the 2955 Mission Street marketing highlighted.24
  • 1031 exchange buyers, who have to identify replacement property within 45 days and receive it within 180 days, or by their tax return due date if earlier.28

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For more on how buyers change with building size, see how the San Francisco buyer pool shifts as unit count grows.

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Featured Allison Chapleau Mixed-Use Sales in San Francisco

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Here's a closer look at some mixed-use buildings in San Francisco that Allison has sold.

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  • 691 Post Street, Downtown (District 8): 36 units, with 34 apartments and 2 retail units.12 Sold in May 2022 for $9,000,000.12 Sellers accepted an offer after two weeks on the market, and it traded at a 4.32% cap rate and 12.73 GRM.4
  • 1701 Church Street, Noe Valley (District 5): 3 units, one commercial and two one-bedrooms.13 Sold in June 2026 for $2,400,000 at a 6.35% cap rate.13
  • 489-491 Guerrero Street, Mission Dolores: 3 units with a vacant, remodeled owner's unit and two ground-floor commercial spaces.23 Sold in July 2026 for $1,622,800, $127,800 above list.23
  • 3144 22nd Street, Inner Mission: three residential units and one commercial unit, fully tenant-occupied.16 Sold in April 2026 for $1,810,000.16
  • 4291-4299 24th Street and 803-807 Douglass Street, Noe Valley: 8 units, with 3 commercial and 5 residential.17 Sold in April 2023 for $2,190,000.17
  • 2955 Mission Street, Inner Mission: a four-bedroom unit and a ground-floor commercial unit.24 A trust sale, delivered vacant, sold in June 2019 for $2,335,000 with multiple offers.9,24
  • 4463-67 Mission Street, Excelsior (District 10): 4 residential units and 2 ground-floor commercial units.29 Sold in August 2017 for $1,800,000 with multiple offers, closing in 35 days.29

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You can browse more on her San Francisco sold properties page or check market data for San Francisco District 5 and San Francisco District 9.

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How to Prepare Your San Francisco Mixed-Use Building for Sale

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Use this checklist before you sell a mixed-use building in San Francisco.

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  1. Gather every lease, both commercial and residential, plus a current rent roll and your operating expenses.4,11
  2. Pull your zoning on the Property Information Map, and order a Zoning Verification Letter if there's any question about the storefront use.25
  3. Confirm your Commercial Vacancy Tax filings are current if your ground floor is in a named district.21
  4. Decide if you'll lease a vacant storefront before listing or market it vacant.
  5. Prepare the written tenant disclosure required for rent-controlled units.20
  6. Get a pricing opinion that values the apartment and storefront income separately, since JPMorgan's sample table shows different cap rates for San Francisco multifamily and retail.3
  7. If you plan a 1031 exchange, line up your timing early, since the 45-day and 180-day clocks start when you transfer the property you're selling.28

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Frequently Asked Questions About Selling a Mixed-Use Building in San Francisco

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How do you sell a mixed-use building in San Francisco?

Start by organizing your commercial and residential leases, rent roll and operating expenses, since buyers of San Francisco multi-unit and commercial property weigh all of them.4 You'll also want to check zoning, your Commercial Vacancy Tax status and the required tenant disclosures.20,21,25 Allison's process covers the marketing package and outreach to her network of 1,500+ brokers and investors.11

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Does rent control apply to the storefront in a San Francisco mixed-use building?

No. San Francisco's Rent Ordinance treats commercial units as entirely exempt.2 The apartments are a different story, since many residential units built on or before June 13, 1979 have both rent control and eviction protection in San Francisco.2

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How are mixed-use buildings valued in San Francisco?

Start with cap rate and gross rent multiplier.3,15 JPMorgan's sample table for late 2025 showed San Francisco multifamily at 4.50% and retail at 5.20%.3 Four of Allison's sold mixed-use listings in Noe Valley, Mission Dolores and the Inner Mission had cap rates between 5.68% and 7.33%.13,16,17,23

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Can I sell a San Francisco mixed-use building with a vacant storefront?

Yes. Allison sold 2955 Mission Street in the Inner Mission delivered vacant with multiple offers,24 and 489-491 Guerrero Street in Mission Dolores sold above list with one storefront vacant.23 Just keep San Francisco's Commercial Vacancy Tax in mind while the space sits empty.21

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What is San Francisco's Commercial Vacancy Tax?

It's a San Francisco tax on certain ground-floor commercial space in named neighborhood commercial districts that's kept vacant for more than 182 days in a calendar year.21 The rate starts at $250 per linear foot of frontage and rises to $1,000 after three consecutive vacant years.21 Districts on the list include 24th Street-Noe Valley and the Mission Street transit district.22

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Can a buyer use a conventional loan for a mixed-use building in San Francisco?

Only in narrow cases. Fannie Mae's mixed-use rules require a one-unit dwelling where the borrower lives and runs the business.1 A San Francisco mixed-use building with several apartments and a leased storefront doesn't fit those rules, so buyers would look at other financing.1

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Do I have to tell residential tenants about the sale of my San Francisco mixed-use building?

Yes, for units covered by Section 37.9 of San Francisco's Rent Ordinance.20 The seller must give a written disclosure stating that tenants can't be evicted, have rent raised beyond what the ordinance allows, or have their agreements materially changed solely because of the sale.20

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Can I do a 1031 exchange when I sell a mixed-use building in San Francisco?

Section 1031 applies to real property held for use in a trade or business or for investment, so a San Francisco mixed-use rental can qualify.28 You'd need to identify replacement property within 45 days after you transfer the building you're selling, and receive it within 180 days or by your tax return due date, if that's earlier.28 Talk to your tax advisor before you list.

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How do I check the zoning of my San Francisco mixed-use building?

Use the Zoning Information tab on SF Planning's Property Information Map.25 For a formal record, San Francisco offers a Zoning Verification Letter, and a Rebuild Letter that addresses if the building could be restored after a fire or other natural disaster.25

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What transfer tax applies when I sell a mixed-use building in San Francisco?

San Francisco's transfer tax rate depends on the price.30 As of October 2026, a sale of at least $1,000,000 but less than $5,000,000 is taxed at $3.75 for each $500 or portion of $500.30 At $5,000,000 or more but less than $10,000,000, it's $11.25 for each $500 or portion of $500.30

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Who is a good Realtor to sell a mixed-use building in San Francisco?

Look for someone with a track record in your exact property type. Allison Chapleau has more than 24 years of San Francisco multi-unit and commercial experience and 300+ multi-unit and mixed-use buildings sold.5 Her San Francisco mixed-use sales include 691 Post Street Downtown, 1701 Church Street in Noe Valley and 4463-67 Mission Street in the Excelsior.12,13,29

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Get a Price on Your San Francisco Mixed-Use Building

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Every mixed-use building in San Francisco has its own leases, tenants and block. If you're thinking about selling, start with a free San Francisco property valuation or call Allison at 415-516-0648.5 You can also read more about San Francisco multi-unit Realtor Allison Chapleau.

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Sources

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  1. Fannie Mae, Selling Guide B2-3-04, Special Property Eligibility Considerations. https://selling-guide.fanniemae.com/sel/b2-3-04/special-property-eligibility-considerations (accessed October 12, 2026).
  2. SF.gov, Learn about San Francisco rental laws. https://www.sf.gov/learn-about-san-francisco-rental-laws (accessed October 12, 2026).
  3. J.P. Morgan Commercial Banking, Cap rates explained (sample cap rate tables for 4Q 2025 and 4Q 2024). https://www.jpmorgan.com/insights/real-estate/commercial-term-lending/cap-rates-explained (accessed October 12, 2026).
  4. Allison Chapleau, About Allison Chapleau. https://www.allisonchapleau.com/about/allison-chapleau (accessed October 12, 2026). Allison Chapleau was the #1 listing agent in San Francisco by number of 2-4 unit listings (78, versus 36 for the second-ranked agent) and by number of 5+ unit listings (115, versus 92 for the second-ranked agent) for San Francisco MLS sales reported from 1/1/2021 to 12/31/2025, per Broker Metrics, as published on her About page. Also the source for her title, her practice areas, her pricing approach, her client guidance and the 691 Post Street notable sale.
  5. Allison Chapleau, San Francisco Multi-Unit and Commercial Real Estate (homepage). https://www.allisonchapleau.com/ (accessed October 12, 2026).
  6. Compass, Allison Chapleau agent profile. https://www.compass.com/agents/allison-chapleau/ (accessed October 12, 2026). Second source for the listing rankings (her own Compass profile).
  7. Goliath Data, From Surfing to $1B in Sales: How Allison Chapleau Became San Francisco's Top Multi-Unit Agent (Off Market Podcast episode page). https://goliathdata.com/from-surfing-to-1b-in-sales-how-allison-chapleau-became-san-francisco-s-top-multi-unit-agent (accessed October 12, 2026).
  8. Allison Chapleau, Sold Properties. https://www.allisonchapleau.com/properties/sold-properties (accessed October 12, 2026).
  9. Allison Chapleau, San Francisco Probate, Trust and Partition Sales. https://www.allisonchapleau.com/properties/san-francisco-probate-trust-and-partition-sales (accessed October 12, 2026).
  10. Allison Chapleau, 4700 Mission St and 5 Ruth St listing. https://www.allisonchapleau.com/listing/4700-mission-st-5-ruth-st (accessed October 12, 2026).
  11. Allison Chapleau, Property Marketing. https://www.allisonchapleau.com/list-your-property/property-marketing (accessed October 12, 2026).
  12. Allison Chapleau, 691 Post Street listing. https://www.allisonchapleau.com/listing/691-post-street (accessed October 12, 2026).
  13. Allison Chapleau, 1701 Church Street listing. https://www.allisonchapleau.com/listing/1701-church-street-2 (accessed October 12, 2026).
  14. SF.gov, Learn about rent increases in San Francisco. https://www.sf.gov/learn-about-rent-increases-san-francisco (accessed October 12, 2026).
  15. J.P. Morgan Commercial Banking, What is a gross rent multiplier (GRM)?. https://www.jpmorgan.com/insights/real-estate/commercial-term-lending/what-is-a-gross-rent-multiplier-grm (accessed October 12, 2026).
  16. Allison Chapleau, 3144 22nd Street listing. https://www.allisonchapleau.com/listing/3144-22nd-street (accessed October 12, 2026).
  17. Allison Chapleau, 4291-4299 24th St and 803-807 Douglass Street listing. https://www.allisonchapleau.com/listing/4291-4299-24th-st-803-807-douglass-street (accessed October 12, 2026).
  18. SF.gov, Find a commercial location for your business. https://www.sf.gov/find-commercial-location-your-business (accessed October 12, 2026).
  19. SF.gov, SF Commercial Leasing presentation (Commercial Leasing Specialist), April 22, 2024. https://www.sf.gov/sites/default/files/2024-04/Commercial%20Leasing%20Specialists%20Presentation.pdf (accessed October 12, 2026).
  20. San Francisco Rent Board, Residential Rent Stabilization and Arbitration Ordinance, Section 37.9(k) (PDF on SF.gov). https://media.api.sf.gov/documents/600_Ordinance_6-29-26.pdf (accessed October 12, 2026).
  21. San Francisco Treasurer and Tax Collector, Commercial Vacancy Tax. https://sftreasurer.org/business/taxes-fees/commercial-vacancy-tax-cvt (accessed October 12, 2026).
  22. San Francisco Treasurer and Tax Collector, Named Neighborhood Commercial Districts as of March 3, 2020 (PDF). https://sftreasurer.org/media/564/download?attachment See also San Francisco Treasurer and Tax Collector, Named Neighborhood Commercial Transit Districts as of March 3, 2020 (PDF): https://sftreasurer.org/media/565/download?attachment (accessed October 12, 2026).
  23. Allison Chapleau, 489-491 Guerrero Street listing. https://www.allisonchapleau.com/listing/489-491-guerrero-street (accessed October 12, 2026).
  24. Allison Chapleau, 2955 Mission Street listing. https://www.allisonchapleau.com/listing/2955-mission-street (accessed October 12, 2026).
  25. San Francisco Planning, Zoning. https://sfplanning.org/zoning (accessed October 12, 2026).
  26. Freddie Mac Multifamily, What We Do. https://mf.freddiemac.com/about/what-we-do (accessed October 12, 2026).
  27. IRS, Publication 946, How To Depreciate Property. https://www.irs.gov/publications/p946 (accessed October 12, 2026).
  28. IRS, Instructions for Form 8824, Like-Kind Exchanges. https://www.irs.gov/instructions/i8824 (accessed October 12, 2026).
  29. Allison Chapleau, 4463-67 Mission Street listing. https://www.allisonchapleau.com/listing/4463-4467-mission-st (accessed October 12, 2026).
  30. SF.gov, Transfer tax. https://www.sf.gov/transfer-tax (accessed October 12, 2026).