

871 Sutter Street
100% Leased ±5,195 Square Foot - Best In Class - Restaurant Building For Sale
Marketing 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.
Investment highlights
- Irreplaceable single-tenant asset — freestanding ±5,195 SF building plus rear yard on Sutter Street in Lower Nob Hill, one of San Francisco’s densest and most walkable corridors (Walk Score 100 / Transit Score 100).
- Long-tenured, committed operator — Liholiho Yacht Club has operated here since 2014 with $1MM+ of tenant-funded improvements still in place. The tenant is NOT vacating — it exercised its first five-year extension in late 2023.
- True triple-net (NNN) lease — tenant pays all real estate taxes, insurance, utilities, repairs, and maintenance directly. Landlord retains only structure, foundation, roof, and trunk utilities — truly passive ownership.
- Pride-of-ownership trophy tenant — a nationally recognized, James Beard–nominated restaurant adds prestige and marketing appeal to the asset.
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