745 Sutter Street Sold: 25-Unit Downtown San Francisco Building Ends a Three-Generation Family Ownership

By Kevin Caravelli and Steve Caravelli, Caravelli Group, Coldwell Banker Commercial.

Caravelli Group sold 745 Sutter Street, a 25-unit apartment building in Downtown San Francisco, for $4,110,000 in March 2025. The building had been in one family for three generations. A local, all-cash buyer removed all contingencies within five days and bought at a 5.97% cap rate, below the 6.64% average for the district that year.

745 Sutter Street sale at a glance

How the sale came together

Why did the owners sell 745 Sutter Street?

The family had owned 745 Sutter Street for decades, across three generations. With estate planning a priority and managing the building no longer practical, they decided it was time to sell, and they wanted a team they could trust with a sale that meant more than a transaction.

What made the timing difficult?

In early 2025, many institutional buyers were underwriting San Francisco apartment buildings at significantly higher cap rates because of shifting debt conditions. That pushed their offers down and made a premium price look out of reach.

How did Caravelli Group market 745 Sutter Street?

We built the campaign around what the building did well: strong in-place cash flow, solid physical condition and long-term upside. Rather than rely on institutional buyers, we took it to our private network of local investors, where those strengths were valued most.

What was the result?

A local, all-cash buyer bought 745 Sutter Street for $4,110,000, or $164,400 per unit, at a 5.97% cap rate. The buyer moved quickly, removing all contingencies within five days and releasing the full deposit to the sellers. We guided the family through every step, and the sale met their financial goals while respecting the building's place in their family history.

How 745 Sutter compares with other 2025 Downtown sales

745 Sutter's 5.97% cap rate was the second-lowest of the 11 District 8 South apartment sales with reported income in 2025, below the 6.64% district average. Only 824 Hyde Street sold at a lower cap rate.

District 8 South covers Downtown, the Tenderloin, Lower Nob Hill and Civic Center. Source: Caravelli Group 2025 San Francisco Multifamily Transaction Report.

FAQ

What did 745 Sutter Street in San Francisco sell for? $4,110,000 in March 2025, or $164,400 per unit for its 25 units, at a 5.97% cap rate.

How do you sell a family-owned apartment building in San Francisco? Start with the family's goals, such as estate planning, timing and how involved each member wants to be, then match the marketing to the buyers most likely to pay for the building's strengths. At 745 Sutter, that meant a local all-cash buyer found through Caravelli Group's private network.

What cap rate do Downtown San Francisco apartment buildings sell at? In 2025, District 8 South apartment buildings (Downtown, Tenderloin, Lower Nob Hill and Civic Center) averaged a 6.64% cap rate. 745 Sutter Street sold at 5.97% and 824 Hyde Street at 5.07%.

How can I find out what my San Francisco apartment building is worth? Caravelli Group provides confidential opinions of value based on current sales in your district. Contact Kevin Caravelli at 415.271.8517 or Steve Caravelli at 415.706.0008.

About Caravelli Group

Caravelli Group advises owners and investors on the sale of San Francisco apartment buildings, focusing on the 5-to-75 unit middle market. Founded in 1985, the team is part of the San Francisco office of Coldwell Banker Commercial Realty.

Kevin Caravelli, partner. DRE #01988049 · 415.271.8517

Steve Caravelli, founder, with nearly four decades of experience and more than $1.7 billion in closed transactions. DRE #00879834 · 415.706.0008