Single-Room Occupancy Hotel Asset in San Francisco Sold by Marcus & Millichap
June 16, 2020
SAN FRANCISCO, June 16, 2020 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of the Abby Hotel, a 15,925-square-foot, 54-unit single-room occupancy building in San Francisco, California. The property sold for $8 million, which equates to $148,148 per room.
“The offering hit the market shortly before the shelter-in-place order and received a great deal of interest from local and regional hospitality and multifamily investors,” said Jag Patel, senior associate in Marcus & Millichap’s Oakland office. “Despite the challenges caused by COVID-19, we generated 15 offers and closed on time.” Patel and Max Kandel exclusively listed the property on behalf of the seller. “The vast majority of the units, 52 of 54, were delivered vacant,” noted David Nelson, regional manager of Marcus & Millichap’s Oakland office. “Jag and Max created a strong market for the property and maximized its value despite changing economic times.”
Originally constructed in 1913, the building is located at 630 Geary St., four blocks from Union Square, close to public transportation, shopping, dining, and the city’s many employers. “The high cost of renting an apartment in San Francisco makes housing options like the Abby Hotel essential for young professionals and students,” commented Kandel.
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About Marcus & Millichap (NYSE: MMI)
With more than 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,726 transactions in 2019 with a value of $49.7 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.