Back a few years ago (peak of the RE market), condo conversions were very popular in SF. At a price of $540K per unit, an investment group could purchase this property, convert it, and sell the units for $750K ea (more if the area is really, really good).

But as the owner of a short-term lodging property, I somehow think that executive short term rentals may be quite lucrative. Say, $3-4K a month per unit (74 units).

But I have NO idea about corporate rental rates, so this is pure speculation.

Another idea: Get the facility re-zoned as an executive boutique hotel. At only $200/nt and 50% occupancy, (REALLY cheap for the executive short-stay market, where $500/nt and 65% occupancy is more common), this property would gross $2.7M a year (before expenses).

I'd guess that if it were converted, once it got up to speed, a $300 average daily rate and 55% occupancy would be pretty easy to do.

That's $4.4M gross, per year.

-Russ H.

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