Residential Income & Ground Floor Retail

Investment Highlights

• Potter Hotel includes 104 SRO residential units, 1 apartment, and 3 retail suites on a highly visible corner.
• Prime corner location visible to over 60,000 VPD and less than five minutes from major highways and public transit.
• Offers potential for walkable employee housing due to its proximity to a major corporate headquarters.
• When stabilized to 90% occupancy, the Potter Hotel yields a potential EGI of $1.1m and NOI of $550k assuming a 50% operating expense ratio.
• Over 77% of the 2-mile population of more than 366,000 rent their homes, resulting in household spending of more than $1.1B during 2023.
• Rare basement which includes maintenance space and open layout storage space with dedicated entrances from the ground level suites.

Executive Summary

NAI Capital presents the Potter Hotel, a residential income property with three ground-floor commercial suites. Located at 1284 Mission Street, the four-story building offers 27,072 square feet, including 104 single-room occupancy rentals, three retail storefronts, and one manager’s apartment. Currently, 56% of the units are occupied, with potential gross income of $1.1 million at 90% occupancy. The property features a basement for maintenance and storage. The site allows for future development of an 11-story multifamily building.

Situated near key amenities, the building benefits from high visibility and accessibility, being close to public transit stations and major highways. The area has experienced strong demand with low vacancy rates and no new inventory, driving rent increases and making the Potter Hotel a promising investment. The local population exceeds 366,000 with an average household income over $160,000, leading to significant spending in the area.