SAN FRANCISCO, Oct. 13, 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 a five-story, 123-room USA Hostels hospitality asset in Downtown San Francisco, California. The building sold for $19 million.
“The property provides guests with hotel rooms and short-term apartment rentals,” said Jag Patel, senior associate in Marcus & Millichap’s Oakland office. “It is a one-of-a-kind asset with a central location in one of the world’s most popular travel destinations.” Patel represented the seller and procured the buyer, a private investor with multiple Bay Area properties.
Built in 1907, the building is located at 711 Post St., four blocks from Union Square, a short walk from public transportation, including cable cars, and many of San Francisco’s top downtown dining and entertainment venues. San Francisco’s Chinatown neighborhood is a mile away and Fisherman’s Wharf and Pier 39 are within two miles. The property has 48 units with private bathrooms, a large common area, a dining area, a self-service commercial kitchen and a yoga studio.
“One of the effects of the pandemic on hospitality assets is that hotels no longer enjoy the high level of leverage that financing used to provide,” commented David Nelson, regional manager of Marcus & Millichap’s Oakland office. “However, strong buyers with healthy balance sheets can overcome financing hurdles and acquire hospitality properties that align with their investment goals. Jag knows his client base well and was able to bring one of the strongest local buyers to the table. He secured the listing prior to the outbreak of COVID-19 and persevered through the complications caused by the pandemic. That Jag was able to fulfill the financial goals of the seller and deliver a unique hospitality asset in a prime location to the buyer during this time is a testament to the depth of his market knowledge and the strength of his investment property brokerage skills.”
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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.