Frequently Asked Questions
Straight answers for buyers considering 501-503 and 505-511 Laguna Street, a 100% occupied mixed-use investment in Hayes Valley.
$4.7M
Asking Price
6.00%
Cap Rate
$282K
Annual NOI
100%
Occupied
This page answers the questions buyers ask most about 501-503 and 505-511 Laguna Street, a 100% occupied mixed-use investment in Hayes Valley offered at $4,700,000 with a 6.00% cap rate and $282,091 in annual net operating income. Every answer draws on the listing's facts: two buildings on two parcels, six residential apartments, four commercial tenants including a credit-rated AT&T anchor, and a neighborhood among the most walkable and transit-connected in San Francisco.
Property & Structure
Two Buildings, Two Parcels, One Opportunity
How the asset is organized, what the buyer actually acquires, and how the unit and tenant counts fit together.
What is 501-503 and 505-511 Laguna Street?
It is a stabilized mixed-use investment property in Hayes Valley, San Francisco, offered for sale at $4,700,000. The asset spans two buildings on two separate parcels, built in 1885, and produces income from 11 units: six residential apartments and four commercial tenant spaces, with ten tenants in place. The property is 100% occupied and delivers $282,091 in annual net operating income, a 6.00% cap rate on the asking price. It is presented for sale by owner through Peter Kane of Kane Corporation.
Why is the listing structured as two buildings on two parcels?
The offering combines two buildings on two separate parcels (APNs 0819-034 and 0819-035), and that structure is part of the appeal. A buyer can hold both buildings as one stabilized income stream or pursue strategies parcel by parcel over time. For exchange buyers with specific 1031 requirements, the dual-parcel structure can be advantageous. There is no ground lease: the buyer acquires both buildings and both parcels.
Why does the listing show 11 units but 10 tenants?
The listing describes 11 income-producing units: six residential apartments, four commercial tenant spaces, and one additional unit, with ten tenants in place today. The four commercial tenants occupy ground-floor storefronts, and the residential apartments sit above them. Full unit-by-unit detail is available in the offering memorandum.
What is included in the sale?
The sale includes both buildings and both separate parcels: roughly 3,300 to 4,755 square feet of building area on lots of about 1,375 to 1,925 square feet, on three stories, zoned under the Hayes Code.
At a Glance
The Asset Facts Buyers Ask About First
2 buildings
Built 1885, three stories
2 parcels
APNs 0819-034, 0819-035
6 apartments
Residential units above retail
4 commercial
Tenant spaces, 10 tenants total
3,300 - 4,755 sq ft
Building area range
Hayes Code
Zoning designation
Income & Tenants
The Yield, the Roster, and the 1031 Fit
What the property earns, who pays it, and why exchange buyers find this structure attractive.
How do the 6.00% cap rate and $282,091 NOI work?
The asking price is $4,700,000. The cap rate is the ratio of net operating income to price, so $282,091 divided by $4,700,000 equals 6.00%. On a pro-forma basis, $285,000 in NOI equals a 6.06% pro-forma cap rate. In plain terms, the property yields about six cents of net operating income per dollar of purchase price, and the in-place income already supports that yield at full occupancy.
Who are the commercial tenants, and what does the AT&T NNN lease mean?
There are ten tenants across the two buildings. The commercial roster includes AT&T, the credit-rated anchor tenant under a triple-net (NNN) lease; Domo Sushi, a neighborhood sushi bar with an active street presence; Il Borgo Ristorante, an Italian restaurant at the corner of Laguna and Fell; and Hahdough Bakery, a German bakery drawing steady foot traffic. The property's lease type is NNN, tenant credit is rated, and tenancy is multi. Triple-net leases and credit-rated tenants minimize management intensity while maximizing long-term value.
Is this property a good fit for a 1031 exchange?
Yes, the listing is marketed with exchange opportunities considered, and several features matter to exchange buyers. The income is already in place: $282,091 in NOI at 100% occupancy, so there is no lease-up or ramp-up period. The tenancy is diversified across telecommunications, restaurant, bakery, and residential income, which reduces reliance on any single tenant. The 6.00% cap rate sits in a supply-constrained market where Hayes Valley and NoPa medians run around 6%. And the two-building, two-parcel structure offers flexibility for exchangers with specific requirements. Your exchange timeline and tax position should be reviewed with your CPA or qualified intermediary.
What are the residential units like?
Six residential apartments sit above the storefronts in the two Victorian-era buildings. The property gallery shows the unit finishes: bay-window living rooms with hardwood floors, renovated galley kitchens with white shaker cabinetry, and updated bathrooms with glass-enclosed showers. The buildings date to 1885, so the units combine historic character with updated interiors.
The Commercial Tenant Lineup
AT&T
Credit-rated corporate anchor under a triple-net (NNN) lease
Domo Sushi
Neighborhood sushi bar with an active street presence
Il Borgo Ristorante
Italian restaurant at the corner of Laguna and Fell
Hahdough Bakery
German cakes and pastries drawing steady foot traffic
Location & Market
Walkability, Transit, and Demand
The neighborhood facts behind the income: a Walker's Paradise with dense BART and Muni access and a strengthening investment market.
How walkable is the immediate neighborhood?
Hayes Valley is a Walker's Paradise with a Walk Score of 99, a Transit Score of 94, and a Bike Score of 86. The property sits at the corner of Laguna and Fell Streets, at the center of the neighborhood's commercial energy. Patricia's Green, retail, dining, and daily needs are within a short stroll. For a mixed-use building, that foot traffic is the economic engine: it fills retail, supports restaurant revenue, and keeps residential vacancy near zero.
What are the best transit options from the property?
Van Ness BART on the Market Street subway is roughly 0.3 miles away, a six- to eight-minute walk, and Civic Center / UN Plaza BART is about 0.6 miles away. Muni service includes the 21 Hayes with a stop at Laguna and Hayes, the 5 and 5R Fulton, 6 Haight/Parnassus, 7 Haight/Noriega, 22 Fillmore, and the 47 and 49 Van Ness routes. The Van Ness Bus Rapid Transit corridor, San Francisco's first BRT, opened in April 2022 with dedicated lanes.
Van Ness BART
Market Street subway, roughly 0.3 miles (6-8 min walk)
Civic Center / UN Plaza BART
Blue, Green, Red and Yellow lines, about 0.6 miles away
Muni 21 Hayes
Stops at Laguna and Hayes Streets
Muni 5, 5R, 6, 7
Fulton, Haight/Parnassus, Haight/Noriega routes
Muni 22 Fillmore & 47 / 49 Van Ness
North-south corridors through the district
Van Ness BRT
San Francisco's first Bus Rapid Transit, opened April 2022
Why is Hayes Valley attractive to buyers right now?
Hayes Valley was transformed after the 1989 Loma Prieta earthquake, when the elevated Central Freeway was removed and replaced with Octavia Boulevard and Patricia's Green. Today it is a compact retail-and-tech-adjacent district with supply-constrained housing, excellent transit, and steady reinvestment up and down the corridor. The property's 6.00% asking cap sits in the band of recent Hayes Valley and NoPa medians, supported by a credit-rated commercial anchor and 100% occupancy.
Market figures are approximate and provided for context only; they are not a guarantee of future performance. Verify current data before making any investment decision.
The Scores Behind the Location
99
Walk Score
94
Transit Score
86
Bike Score
Still Have a Question?
Peter Kane can walk you through the unit-by-unit detail, the lease structure, and how this property fits your portfolio. No question is too specific.