Multi-families are one of the hottest commodities on the MLS now, as investors recognize rents are up and most likely going further north in the near future. If we thought it was tough for prospective tenants now, wait. The Association of Bay Area Governments projects that "San Francisco's population will soar from the current 812,000 to at least 964,000 by 2035," yet our seven by seven city won't be able to add enough housing to match that. Basic math makes it pretty clear: being a landlord in San Francisco could be a very profitable endeavor.
So let's look at mutli-family property activity by 'nabe.
Potrero Hill
Here's a striking example of multi-family poprerties in demand. 1841 19th St. is a 4-unit that listed 3/11 for $2,150,000 and sold by 4/11 for $2,550,000, $400K over asking in just one month.
NoPa
The North Panhandle also offers proof: 834-840 Broderick St., also a 4-unit property, listed for $2,000,000 on 2/22 and sold on 3/15 for $2,625,000. That's $625K over asking in less than a month.
Russian Hill
Apparently Russian Hill has always been a fine place to invest. Multi-family homes in this popular, pricey neighborhood have been basically flying off the market immediately upon landing there. Witness 1281-1285 Filbert St., a triplex that listed on 4/2 of this year for $1,499,000 and was sold by 4/16 for $2,000,000.
According to a tip to Curbed's Inbox, "The Filbert property sold so fast, the brokers tour couldn't even see it." (Incidentally, this property sold in 1988 for $425K.)
Then there's 828-832 Green St., a 3-unit that listed 4/11 $1,459,000 and sold by 4/26 for $2,055,000.
The Numbers
Luba Muzichenko, Realtor at Zephyr, provided these data showing the activity. Here we see both days on the market (DOM) and price-to-list information for multi-unit buildings as of 5/7/2013. Readers will note the short time on market most of these listings enjoyed, as well as the vast majority selling over (or way over) asking.
· The Bad News: As Suspected, Rental Rates Have Increased Dramatically Over the Past Year [Curbed SF]
· Hard Choices Ahead for Growing SF [SF Gate]
· Luba Muzichenko [official site]
· All Curbed SF Monthly Analysis coverage [Curbed SF]
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