Here are notable multi-family sales that took place in San Francisco in the fourth quarter of 2009.

• 805-811 27th Avenue: This vacant fourplex listed at $995,000 and sold for $1,050,000, or $230/sq ft. Smaller houses that need updating have been selling in the $700K’s in Central / Outer Richmond, so this property was a great opportunity for a homeowner to buy an additional three units for about $350,000.

805-811 27th Ave, San Francisco

• 55 Manchester: This small, six unit building suggested that investors should look at District 9 more closely this year. Nicely renovated, the sale price of $1,353,000 equaled a 10.45 multiple for a small investor.

55 Manchester, San Francisco

• 2900 Franklin: This 11 unit mixed-use building with parking, a good tenant mix and individual heating (i.e. no boiler) was probably the best value for apartment buildings in 4Q. Priced too high at $3.4M, this building languished and then sold for a nice 10.38 multiple at $2.7M. Bought by a 1031 exchanger, this price should have satisfied an ordinary investor.
• 2240 Golden Gate: This was a distressed Lembi building in good condition and in a good rental area, but with a boiler. The lender held out for months in hopes of a sale over $4M. It finally settled for $3.9M, or a 10.26 multiple.

In contrast to the above sales, there were several buildings that drew a premium. Location was key.

• 1758 10th Avenue in Inner Sunset and 3110 Clay were 7-8 unit buildings that sold at multiples of 12+.
• In addition, Jordan Park/Laurel Heights had a five-unit sale at 85 Palm at a 16.67 multiple, or $1.4M. Two-unit 136-138 Palm sold for $1.6M. Both properties needed updating.

For more information about the multi-unit market in San Francisco, here is my Q4 2009 quarterly report (PDF).