2340 Filbert Street Sold: 12-Unit Cow Hollow Building Tops Area Pricing Despite Seismic Retrofit

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

Caravelli Group sold 2340 Filbert Street, a 12-unit apartment building in San Francisco's Cow Hollow, in 2024. Midway through marketing, the city added the building to its mandatory seismic retrofit list. We repositioned the sale, found an all-cash local buyer with seismic retrofit experience, and closed at a price 10% higher per unit than any other 12+ unit sale in Cow Hollow or the Marina that year.

2340 Filbert Street sale at a glance

Detail	2340 Filbert Street
Address	2340 Filbert Street, San Francisco, CA
Neighborhood	Cow Hollow (District 7)
Units	12
Sale date	April 23, 2024
Sale price	$5,650,000
Price per unit	$470,833
Seismic requirement	Added to San Francisco's mandatory seismic retrofit list during marketing
Buyer	Local, all-cash buyer with construction and seismic compliance experience
Result	10% higher per unit than any other 12+ unit Cow Hollow or Marina sale in 2024
Seller's broker	Caravelli Group, Coldwell Banker Commercial

How the sale came together

What kind of building is 2340 Filbert Street?

2340 Filbert Street is a 12-unit apartment building in Cow Hollow, one of San Francisco's most sought-after rental neighborhoods. Its owners had different goals for the sale.

What changed midway through the sale?

Partway through marketing, the city added 2340 Filbert to its mandatory seismic retrofit list. A required retrofit adds cost and uncertainty for a buyer, and it came at a time when many buyers were still cautious after the 2023 banking turmoil. Buyers who had planned on a straightforward purchase now had to price in construction work.

How did Caravelli Group adapt?

We changed the pitch and the buyer pool. Instead of marketing the building to every buyer, we went after buyers who could see the retrofit as an opportunity rather than a risk. Through our network we found a local, all-cash buyer with construction experience and a track record of seismic compliance work, someone for whom the retrofit was familiar ground.

Throughout the sale, we also kept the owners, who had different interests, aligned on decisions so the deal moved forward.

What did 2340 Filbert Street sell for?

2340 Filbert Street sold for $5,650,000 on April 23, 2024, or $470,833 per unit. That was 10% higher per unit than any other sale of a 12+ unit building in Cow Hollow or the Marina in 2024, despite the retrofit requirement.

What does this sale show about selling a building with a seismic retrofit requirement?

A retrofit requirement doesn't have to lower the price if the building reaches the right buyer. Buyers who already do construction and seismic work can price the retrofit accurately, and they often see it as a way to add value. Finding that buyer matters more than discounting for the risk.

FAQ

What did 2340 Filbert Street in San Francisco sell for? $5,650,000 in April 2024, or $470,833 per unit for its 12 units. That was 10% more per unit than any other 12+ unit sale in Cow Hollow or the Marina in 2024.

Can you sell a San Francisco apartment building that needs a seismic retrofit? Yes. 2340 Filbert Street was added to the city's mandatory seismic retrofit list during marketing and still sold for a top price for its area. The key was marketing it to buyers with construction and seismic experience, who can price the work accurately and see it as an opportunity.

How do you sell a building when the owners want different things? Agree on the decisions that matter before going to market, such as price, timing and terms, and keep every owner informed as offers come in. At 2340 Filbert, Caravelli Group kept the owners aligned through a mid-sale change in the building's retrofit status.

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