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Selling an apartment building in San Francisco changes once you hit five units: lenders treat it as multifamily,1 and the city's soft story ordinance can start to apply.2
This is the practical playbook for 5+ unit owners: what to prepare, how pricing works, which city rules touch a sale, and what a specialist does. It also walks through five real sales by Allison Chapleau, a Senior Vice President at Compass Commercial Brokerage3 with more than 24 years of San Francisco multi-unit experience.4
Allison's site already explains how the buyer pool for San Francisco multi-unit buildings changes as unit count grows, how to value an apartment building in San Francisco and selling a rent-controlled building in San Francisco. This guide picks up where those stop.
What Changes When You Sell a 5+ Unit Building in San Francisco
- Financing goes multifamily. Freddie Mac describes its multifamily business as funding "multifamily rental properties with 5 or more units."1 Expect buyers to dig into rent rolls and operating expenses.3
- Soft story rules kick in. San Francisco's Mandatory Soft Story Retrofit Ordinance covers wood-frame buildings with five or more residential units, two or more stories over a soft or weak story, permitted for construction before January 1, 1978.2
- Manager and posting rules apply. State housing rules require a manager or other responsible person to live on site at apartment houses with 16 or more apartments when the owner doesn't live there.5 If the owner doesn't live there and the building has more than four but fewer than 16 apartments, a notice with the owner's (or agent's) name and address has to be posted in a conspicuous place.5
- The market is its own segment. Allison's Q1 2026 5+ unit market report, published April 10, 2026, put the median 5+ sale price at $2,650,000, up 10.5% year over year, with the highest first-quarter sales total since 2018.6
The 5+ Unit Seller Prep Checklist for San Francisco
Due diligence on a multi-unit building is rigorous.3 Have your paperwork ready on day one.
Build a clean rent roll and financial summary
Allison's marketing package for qualified buyers includes the "current rent roll, proposed financing scenarios, and a complete financial summary."7 Pull unit-by-unit rents and recent income and expenses before you list, and note which units fall under rent control. Many San Francisco units built on or before June 13, 1979 have both rent control and eviction protection.8
Give tenants the Section 37.9(k) disclosure
Before a San Francisco property with rental units covered by Section 37.9 can be sold, the seller has to give tenants a written disclosure of their rights under the Rent Ordinance.9 It must state, in bold type of at least 12 points, that tenants can't be evicted, have their rent raised above what Chapter 37 allows, or have their rental agreements materially changed solely because the property is being sold.9
It also has to tell tenants they aren't required to sign estoppel certificates, except as required by law or their rental agreement.9 Ask for them, but don't let your timeline hinge on every tenant sending one back.
Get your soft story paperwork together
If your building fits the ordinance, put its retrofit status in your sale package. Three of the sales below, at 335 2nd Avenue, 1700 Golden Gate Avenue and 1616 Golden Gate Avenue, list the soft story retrofit as completed.10,11,12 Have the paperwork ready to share.
Talk to your CPA about a 1031 exchange early
If you plan to roll proceeds into another property, the clock starts when you transfer the building you're selling.13 Under the IRS instructions for like-kind exchanges, replacement property must be identified within 45 days after you transfer the property you're giving up, and received within 180 days or by your tax return due date (with extensions), whichever is earlier.13 Those instructions also cover exchanges set up through a qualified intermediary (QI),13 so line up your QI and CPA well before closing.
Plan for San Francisco's COPA Step Before You List
Here's a San Francisco step to plan for before you market a building. San Francisco's Community Opportunity to Purchase Act applies to buildings with three or more residential units and to vacant land that could be developed into three or more units.14 COPA counts legal residential units only, and some transfers are excluded, such as transfers between spouses or into a living trust.15 So most sales of a building with five or more legal units fall inside that line.15
- Notice first. Sellers must notify the city's Qualified Nonprofits (QNPs) of the intent to sell.16 QNPs then have five calendar days to express interest.16 Marketing the building before that notice means starting the COPA process over.15
- If a QNP is interested. The seller provides more disclosures and notifies tenants, and the QNP then has 25 days to make an offer.16
- Right of first refusal. If you want to accept a third-party offer, you have to offer the property to a QNP on the same terms, including the identical price and the commission paid to the buyer's broker.15 QNPs have 30 days to exercise that right.15
- After closing. Within 15 days after the sale, the seller files a signed declaration with MOHCD, under penalty of perjury, confirming the sale complied with COPA.16
Sellers also have to notify tenants of the intent to sell.14 Put these windows on the calendar before you pick a launch date.
Pricing a 5+ Unit Apartment Building in San Francisco
Allison's own pricing method looks at cap rate movement and rent multiples, among other considerations.3 Cap rate is net operating income divided by the property's value.17 GRM is the ratio of a property's market value to its annual gross rent.18 J.P. Morgan's sample table shows San Francisco multifamily at a 4.50% cap rate in Q4 2025.17
Here's how her sales compare. 625 Scott Street sold at a 4.01% cap rate and 14.86 GRM.19 1700 Golden Gate Avenue traded at 5.54% and 11.58.11 1616 Golden Gate Avenue came in at 5.77% and 10.91.12 For the full method, see the cap rate guide for San Francisco investors.
Know the San Francisco transfer tax brackets
San Francisco's transfer tax rate is set by the full value or consideration.20 It's $3.75 per $500 from $1,000,000 up to $5,000,000, $11.25 per $500 from $5,000,000 up to $10,000,000, $27.50 per $500 from $10,000,000 up to $25,000,000, and $30.00 per $500 at $25,000,000 or more.20 If your price lands near one of those lines, run the numbers with your escrow officer before you set the list price.
How a 5+ Unit Building Gets Marketed and Sold in San Francisco
Allison's team builds "investor-grade packages" for multi-unit listings.7 Here's what her San Francisco multi-unit property marketing plan includes, per her site:
- Professional photography, drone footage, floor plans and an investor package with the rent roll and financials7
- Placement on San Francisco MLS, Realtor.com, LoopNet, Zillow and Trulia7
- Outreach to a network of 1,500+ brokers and investors, plus email and print campaigns7
- Virtual and in-person tours seven days a week, with 24-hour notice for tenant-occupied units7
On the offer side, some of her sales have used a set date for offers.21 625 Scott Street drew four offers on its bid date, and 335 2nd Avenue drew six offers on its review date.21 As her homepage puts it, "Multi-unit contracts load risk into contingencies, timelines, and closing conditions, not just price."4 The highest number isn't always the strongest offer.4
What a 5+ Unit Specialist Does for San Francisco Sellers
On Allison's own pages, a specialist's job includes:
- Pricing built on "recent sales, cap rate movement, rent multiples, and active buyer demand"3
- Guidance on "rent control, local housing ordinances, and soft-story requirements"4
- Sharing buyer feedback, explaining buyer concerns and helping sellers weigh offers3
Specialist vs. a traditional residential or commercial agent in San Francisco
Allison's About page sums up the gap: "Selling a multi-unit or commercial property in San Francisco is fundamentally different from selling a single-family home. The buyer pool is more specialized. Due diligence is rigorous."3
Commercial asset classes don't price alike, either.17 In Q4 2025, J.P. Morgan's San Francisco sample cap rates were 4.50% for multifamily, 5.20% for retail, 5.90% for industrial and 7.40% for office.17 And San Francisco apartments carry city rules like rent control, Section 37.9(k) and COPA.8,9,14
Why hire an expert over a friend or family member with a license in San Francisco
A friend with a license means well. But a 5+ sale in San Francisco stacks COPA windows, tenant disclosures, soft story questions and transfer tax brackets into one deal.16,9,2,20 A slip can cost time or money: under COPA, a seller who markets too early has to restart the notice process, and a seller who violates COPA can face civil claims.15
Ask any agent you interview a few plain questions:
- How many 5+ unit San Francisco buildings have you listed in the last five years?
- How do you handle COPA notices and tenant showings?
- Can I see recent cap rates and GRMs from your own sales?
Allison Chapleau's 5+ Unit Sales in San Francisco
Allison is widely regarded as a top multi-unit Realtor in San Francisco.22 For 2021 through 2025, she was the #1 listing agent in the city by number of 5+ unit listings, with 115 versus 92 for the second-ranked agent.22 She has sold 300+ multi-unit and mixed-use buildings4 and works across all 10 San Francisco districts.3 Browse more on her San Francisco sold properties page. Here are five 5+ unit examples.
625 Scott Street: 42 units in Alamo Square
625 Scott Street is a 42-unit building on Alamo Square Park with 12 one-bedrooms and 30 studios.19 It sold in August 2022 for $18,050,000.19 The property received four offers on the bid date, leading to a non-contingent sale to a local investor.21 The Real Deal headlined it as San Francisco's biggest multifamily deal of 2022.23
1700 Golden Gate Avenue: 24 units in NoPa
1700 Golden Gate Avenue, a 24-unit building North of the Panhandle, sold in March 2023 for $6,625,000 with multiple offers.11 It had a completed soft story retrofit and traded at a 5.54% cap rate.11 Allison's site lists it as a trust sale.24
250 Douglass Street: 15 units plus a cottage in Eureka Valley
250 Douglass Street, also known as the Alfred E. Clarke Mansion, has 15 units and a cottage.25 All units were tenant-occupied.25 It sold in September 2021 at the list price, $5,850,000, after 21 days on the market.25 The buyer was a private investor expanding their neighborhood portfolio,21 and SFGATE covered the listing.26
1616 Golden Gate Avenue: 12 units in the Western Addition
1616 Golden Gate Avenue is a 1927 Edwardian with 12 one-bedroom units, all tenant-occupied.12 It sold in September 2025 for $4,250,000 at a 5.77% cap rate, with its soft story retrofit completed.12 It's also listed as a trust sale.24
335 2nd Avenue: 10 units in the Inner Richmond
335 2nd Avenue, a 1963 building with four one-bedrooms and six studios, sold in August 2021 for $3,670,000, which was $370,000 above the list price.10 It drew six offers on the review date, and the winning offer was all cash with a 15-day close.21
What San Francisco sellers say
A seller quoted on Allison Chapleau’s San Francisco multi-unit homepage put it this way:
"Allison listed and sold my building with multiple offers in just a few weeks. From listing to close she was easy to work with and I always knew I had her on my side. She is a great choice and I would highly recommend her to any San Francisco apartment building owner." (Seller, 2618-20 Balboa Street)4
Frequently Asked Questions About Selling an Apartment Building in San Francisco
How long does it take to sell a 5+ unit apartment building in San Francisco?
It varies. 250 Douglass Street in San Francisco sold at list price after 21 days on the market.25 Add the COPA window: Qualified Nonprofits get five calendar days to respond to your notice, and more time if one is interested.16
Do I have to tell my tenants I'm selling my San Francisco apartment building?
Yes. San Francisco sellers of buildings with three or more units must notify tenants of the intent to sell.14 Buildings with units covered by Section 37.9 also need a written disclosure of tenant rights before the sale.9
Does COPA apply to my 5+ unit building in San Francisco?
Yes, in most cases. COPA covers San Francisco buildings with three or more legal residential units, with some transfers excluded, such as transfers between spouses.14,15 You'll send a Notice of Sale to Qualified Nonprofits before marketing to other buyers.15
Which San Francisco buildings need a soft story retrofit?
San Francisco's ordinance covers wood-frame buildings with five or more residential units, two or more stories over a soft or weak story, permitted for construction before January 1, 1978.2 In this guide, 1616 Golden Gate Avenue in the Western Addition and 335 2nd Avenue in the Inner Richmond both listed a completed retrofit.12,10
What cap rate do apartment buildings sell for in San Francisco?
J.P. Morgan's sample table showed San Francisco multifamily at a 4.50% cap rate in Q4 2025.17 Published cap rates on Allison's 5+ sales in this guide run between 3.98% at 335 2nd Avenue in the Inner Richmond and 5.77% at 1616 Golden Gate Avenue in the Western Addition.10,12
How much is transfer tax on a San Francisco apartment building sale?
San Francisco's rate depends on the full price.20 For example, it's $11.25 per $500 for sales from $5,000,000 up to $10,000,000 and $27.50 per $500 from $10,000,000 up to $25,000,000.20
Can I do a 1031 exchange when I sell my San Francisco apartment building?
Yes, as long as you meet the IRS rules.13 You must identify replacement property within 45 days and receive it within 180 days, or by your tax return due date if that's earlier.13 Talk to your CPA before you list your San Francisco building.
Can I sell my San Francisco apartment building with tenants in place?
Yes. In San Francisco, tenants can't be evicted solely because a property is sold.9 Allison's listings for 250 Douglass Street in Eureka Valley and 1616 Golden Gate Avenue showed all units tenant-occupied, and both sold.25,12
Should I use a residential agent or a commercial broker to sell my San Francisco apartment building?
Look for someone with a steady record of San Francisco apartment building listings, whatever the title on their card. Buildings with five or more units are financed as multifamily rental property,1 and city rules like COPA and Section 37.9(k) shape the process.14,9
Who is a good Realtor for selling a 5+ unit apartment building in San Francisco?
Look at listing counts and real sales. Allison Chapleau was the #1 listing agent in San Francisco by number of 5+ unit listings for 2021 through 2025, with 115.22 Her sales include 625 Scott Street in Alamo Square, 1700 Golden Gate Avenue in NoPa and 335 2nd Avenue in the Inner Richmond.19,11,10
Talk to Allison About Your San Francisco Apartment Building
If you own a 5+ unit building in San Francisco and you're weighing a sale, start with a number you can trust. Call Allison at 415-516-06484 or request a confidential San Francisco property valuation.
Sources
- Freddie Mac Multifamily, What We Do. https://mf.freddiemac.com/about/what-we-do
- City and County of San Francisco, Earthquake Safety Implementation Program, Soft Story. https://www.sfgov.org/sfc/esip/soft-story
- Allison Chapleau, About Allison Chapleau. https://www.allisonchapleau.com/about/allison-chapleau
- Allison Chapleau, Homepage. https://www.allisonchapleau.com/
- Cornell Law School, Legal Information Institute, Cal. Code Regs. tit. 25, § 42, Caretaker. https://www.law.cornell.edu/regulations/california/25-CCR-42
- Allison Chapleau, San Francisco 5+ Unit Building Market Report, Q1 2026, April 10, 2026. https://www.allisonchapleau.com/marketreports/5-unit-buildings-market-report-april-2026
- Allison Chapleau, Property Marketing. https://www.allisonchapleau.com/list-your-property/property-marketing
- SF.gov, Learn about San Francisco rental laws. https://www.sf.gov/learn-about-san-francisco-rental-laws
- SF.gov, Rent Ordinance Sec. 37.9, Evictions, subsection (k). https://www.sf.gov/information/sec-379-evictions
- Allison Chapleau, 335 2nd Avenue listing. https://www.allisonchapleau.com/listing/335-2nd-avenue
- Allison Chapleau, 1700 Golden Gate Avenue listing. https://www.allisonchapleau.com/listing/1700-golden-gate-avenue
- Allison Chapleau, 1616 Golden Gate Avenue listing. https://www.allisonchapleau.com/listing/1616-golden-gate-avenue
- IRS, Instructions for Form 8824, Like-Kind Exchanges. https://www.irs.gov/instructions/i8824
- SF.gov, Mayor's Office of Housing and Community Development, Community Opportunity to Purchase Act (COPA). https://www.sf.gov/information--community-opportunity-purchase-act-copa
- Mayor's Office of Housing and Community Development, Community Opportunity to Purchase Act (COPA) Frequently Asked Questions. https://www.sf.gov/documents/41885/COPA_FAQs.pdf
- Mayor's Office of Housing and Community Development, COPA Seller Information Sheet. https://www.sf.gov/documents/41903/COPA_-_Seller_Info_Sheet.pdf
- J.P. Morgan, Cap rates explained (sample cap rates, 4Q 2025). https://www.jpmorgan.com/insights/real-estate/commercial-term-lending/cap-rates-explained
- J.P. Morgan, What is a gross rent multiplier (GRM)? https://www.jpmorgan.com/insights/real-estate/commercial-term-lending/what-is-a-gross-rent-multiplier-grm
- Allison Chapleau, 625 Scott Street listing. https://www.allisonchapleau.com/listing/625-scott-street
- SF.gov, Transfer tax. https://www.sf.gov/transfer-tax
- Allison Chapleau, Notable Sales. https://www.allisonchapleau.com/list-your-property/notable-sales
- Broker Metrics ranking, as published on Allison Chapleau's About page: 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 San Francisco MLS sales reported from 1/1/2021 to 12/31/2025. https://www.allisonchapleau.com/about/allison-chapleau. See also Compass, Allison Chapleau agent profile: https://www.compass.com/agents/allison-chapleau/
- The Real Deal, SF’s priciest multifamily sale this year totals $18M, August 9, 2022. https://therealdeal.com/san-francisco/2022/08/09/sfs-biggest-multifamily-sale-this-year-totals-18m/
- Allison Chapleau, Partition, Probate and Trust Sales. https://www.allisonchapleau.com/properties/san-francisco-probate-trust-and-partition-sales
- Allison Chapleau, 250 Douglass Street listing. https://www.allisonchapleau.com/listing/250-douglass-street
- SFGATE, Historic SF mansion with bizarre features, even stranger history for sale, July 21, 2021. https://www.sfgate.com/realestate/article/Historic-SF-mansion-with-bizarre-features-even-16330027.php
