233 Broad Street (The Flagg Building)
Newly Renovated Boutique Hotel + Leased Café in the Heart of Nevada City with Expansion Potential
Marketing description
Tucker Commercial is pleased to present for sale The Flagg Building — a newly renovated, ±11,200 square foot hospitality asset with ground floor leased restaurant/café, located in the heart of historic downtown Nevada City, CA.
Originally constructed in 1856 and comprehensively renovated over the past five years, The Flagg Building blends timeless architectural character with upgraded building systems and curated interior finishes. The second floor comprises a thoughtfully designed, 9-room boutique hotel, while the ground floor is home to Communal Café — a popular restaurant/café operating under a long-term lease. Ideally located at the busiest pedestrian intersection in Nevada City (Broad and Pine Streets), The Flagg Building commands unmatched visibility and foot traffic in the town’s historic core — benefitting from year-round tourism and direct adjacency to the area’s most vibrant dining, retail, and cultural offerings.
The third floor is currently in shell condition, with major infrastructure improvements completed and fully approved plans in place for three additional hotel rooms — offering a shovel-ready opportunity to expand the key count and grow revenue.
In addition to the physical expansion potential, the boutique hotel presents a compelling operational value-add opportunity. With recent renovations already complete, new ownership is well-positioned to enhance hospitality performance through improved marketing, professional management, and optimized rate strategies — driving occupancy toward market levels and achieving outsized returns.
With strong in-place income from Communal Café, a fully operational and recently delivered boutique hotel, and a clear path to expand and materially increase revenues, The Flagg Building offers a rare opportunity to acquire a premier hospitality asset in one of Northern California’s most vibrant destination markets.
On a bifurcated basis, the offering can be evaluated as follows: the hospitality component is priced at approximately $189,000 per key, the ground floor leased retail at a 7.9% cap rate (approximately $310/SF), and the third floor shell at just $120/SF, offering significant intrinsic value and multiple paths to upside. Notably, this offering reflects a meaningful discount to the recent sale of the fully stabilized National Exchange Hotel, located on the same block as The Flagg Building
Please refer to the Offering Memorandum for detailed financials and floor-by-floor valuation breakdown.
Investment highlights
- $100K Price Reduction with seller financing available for qualified buyers
- Iconic Historic Asset | Built in 1856, fully renovated with modern systems and preserved Gold Rush-era façade
- Diversified Income Streams | Ground-floor retail + boutique hotel operations + value-add third-floor space
- Thriving Anchor Tenant | Communal Café, Nevada City’s most visited storefront (Placer AI), signing new 7-year lease at COE
- Luxury Hospitality Component | The 1856 Speakeasy, a fully renovated 9-room boutique hotel completed in 2023 with 70% direct bookings
- Flexible Expansion Opportunity | Third floor (±2,500 SF) with major infrastructure improvements in place, adaptable for additional hotel rooms, residential, or office
- Prime Location | Centerpiece of Nevada City’s Downtown Historic District, recognized on the National Register of Historic Places
- Stabilized & Modernized | All-new plumbing, HVAC, electrical, fire suppression, and high-end buildouts completed in the last 5 years
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