Ballast acquired a 110-unit, three-building multifamily portfolio in San Francisco’s Pacific Heights neighborhood for $48.5M from affiliates of San Francisco-based Flynn Investments. Known as the “Three Sisters,” the historic properties are located along the Van Ness corridor.
Property: Three-building, 110-unit multifamily portfolio, San Francisco
Price: $48.5M
Seller: Affiliates of San Francisco-based Flynn Investments
Buyer: Ballast
The 110-unit portfolio is 97% occupied, generating strong in-place cash flow in one of San Francisco’s most supply-constrained neighborhoods. The three adjacent, six-story properties include studios and one- and two-bedroom units, plus two ground-floor retail spaces. The assets are designated “Significant Buildings” under San Francisco’s General Plan, supporting long-term preservation and limiting competitive redevelopment nearby.
Built in 1928 between Clay Street and Sacramento Street, the properties feature elevator service and a shared courtyard. The middle building — formerly the Spreckels mansion — anchors the portfolio with a notable San Francisco historical identity.
The Van Ness corridor location further enhances the investment profile, offering proximity to restaurants, shops, public transportation and parks.
From a market standpoint, the transaction underscores renewed investor interest in San Francisco multifamily as fundamentals continue to strengthen, driven by population growth, high household incomes and the city’s technology and AI ecosystem. Citywide vacancy has compressed to 4.3%, while rents have increased 6.5% year-over-year, with the Marina/Pacific Heights/Presidio submarket even tighter at 3.2% vacancy amid limited new deliveries constraining supply, according to CoStar.
The deal reflects continued demand for well-located, institutional-quality vintage assets with embedded rent growth and durable occupancy in high-income renter markets.
