871 Sutter St, San Francisco, CA 94109

Property Description

871 Sutter Street offers investors the opportunity to acquire a freestanding, single-tenant retail building in San Francisco's Lower Nob Hill neighborhood, fully occupied on a triple-net (NNN) lease by Liholiho Yacht Club, one of the city's most acclaimed and enduring restaurants. The 5,195-square-foot building sits on a 3,436-square-foot parcel with 88 feet of frontage along Sutter Street and includes a rear yard. The property delivers stabilized, passive income with built-in growth. The tenant has occupied the building since 2014, invested more than $1,000,000 of its own capital into the build-out, and in late 2023 proactively exercised its first five-year extension option. The lease carries fixed 3% annual rent increases through May 2029, followed by a fair-market rent reset and one remaining five-year option. With a credit-worthy, award-winning operator firmly in place and contractual rent growth, 871 Sutter Street is well suited to a private investor or 1031-exchange buyer seeking durable cash flow in one of the nation's most supply-constrained urban markets.