1927 TARAVAL STREET presents a rare opportunity to acquire a stabilized mixed-use investment property located in San Francisco's highly desirable Sunset District, just minutes from Ocean Beach, the Pacific Ocean coastline, Golden Gate Park, neighborhood retail services, public transportation, restaurants, and major commuter routes.
The property consists of four income-producing units, including one commercial unit and three residential units, providing diversified income from multiple tenancy sources. Unlike traditional apartment investments that depend entirely upon residential occupancy, the mixed-use configuration benefits from both residential and commercial income streams, reducing concentration risk and creating a broader operating base.
The offering is currently producing a Gross Scheduled Rental Income of $184,920 annually, supplemented by an additional $6,240 annually in tenant-paid water reimbursements, resulting in Effective Gross Income of approximately $191,160 per year.
Current Annual Rental Income Breakdown:
Commercial Unit:
$4,960 per month
$59,520 annually
Unit 3:
$4,950 per month
$59,400 annually
Unit 2:
$2,200 per month
$26,400 annually
Unit 1:
$3,300 per month
$39,600 annually
Total Annual Scheduled Rental Income:
$184,920
Additional Annual Water Reimbursement Income:
Commercial Unit:
$200 per month
$2,400 annually
Unit 3:
$200 per month
$2,400 annually
Unit 2:
$120 per month
$1,440 annually
Total Annual Water Reimbursement Income:
$6,240
Effective Gross Income:
$191,160 annually
The property's income stream is supported by a combination of long-term contractual tenancy and operational flexibility.
The commercial unit is leased through June 4, 2031 and currently pays $4,960 per month. The lease includes annual rent increases of 2% and provides one additional five-year renewal option. The commercial tenant additionally pays a fixed water allocation, contributing supplemental income to ownership.
Unit 3 is leased through June 4, 2031 at $4,950 per month and represents one of the largest residential units within the property. The long-term lease provides additional income stability and reduces near-term leasing risk.
Unit 2 is leased at $2,200 per month and provides continued rental income while offering future opportunities for ownership to evaluate market conditions upon lease expiration.
Unit 1 currently operates on a month-to-month tenancy and generates $3,300 per month in rental income. This tenancy structure provides future flexibility for ownership, allowing strategic decisions regarding future leasing, occupancy, rent adjustments, or repositioning opportunities subject to applicable laws and regulations.
The property is offered at $2,495,000.
Based upon current operations and underwriting assumptions, the property generates an estimated Net Operating Income of approximately $155,426 annually.
Income Analysis:
Effective Gross Income:
$191,160
Property Taxes:
($21,015)
Management Expense:
($8,719)
Estimated Insurance:
($6,000)
Estimated Net Operating Income:
$155,426
The resulting capitalization rate is approximately 6.23%.
The Gross Rent Multiplier is approximately 13.49.
Price Per Square Foot based upon approximately 4,812 square feet of building area is approximately $518.50 per square foot.
One of the most compelling aspects of the offering is the availability of seller financing. The Seller has indicated a willingness to provide seller carryback financing of up to $495,000 for qualified purchasers, representing approximately 19.84% of the total acquisition price. In today's financing environment, seller financing of this magnitude can significantly improve acquisition flexibility and reduce reliance on traditional lending sources.
Public records indicate a building size of approximately 4,812 square feet and a construction year of 1987. Compared with many older San Francisco income properties, the reported construction date places the asset among newer vintage investment properties within the Sunset District.
The Sunset District remains one of San Francisco's most established and desirable neighborhoods. The area benefits from strong long-term residential demand, access to transportation infrastructure, neighborhood commercial services, recreational amenities, and direct proximity to the Pacific Ocean. The district's mature development pattern, limited availability of new land, and substantial barriers to future development contribute to long-term scarcity characteristics that are difficult to replicate.
Investors are not only acquiring current income. They are acquiring an existing land position, an established mixed-use asset, an operating rent roll, contractual lease income extending through 2031, ocean-proximate real estate, and ownership within one of San Francisco's most supply-constrained neighborhoods.
Opportunities to acquire stabilized mixed-use assets with diversified income streams, long-term lease security, seller financing availability, and proximity to the Pacific Ocean are increasingly uncommon. 1927 Taraval Street offers a combination of current cash flow, contractual income stability, future flexibility, and long-term location fundamentals that make it a compelling acquisition opportunity for investors seeking exposure to San Francisco real estate.