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California  + Bay Area  + Hospitality  | 

San Francisco Hospitality Group Divests Boutique Hotel in Japantown

CBRE recently arranged the $7.3-million sale of Sutter Mansion, a 12‑key boutique hotel at 1409 Sutter St. in San Francisco’s Japantown/Pacific Heights area, to a confidential buyer. Alex Lee‑Bull and Lauren Lamb with CBRE Hotels in San Francisco represented the seller, Neighbourgood, a Cape Town and San Francisco–based branded residential and hospitality group.

Originally built in 1881, Sutter Mansion is a Grand Victorian estate renovated in 2019, preserving its ornate façade, period craftsmanship and architectural details. The property features oversized guestrooms averaging 400 square feet, a restaurant and bar, two commercial kitchens, event space and onsite parking.

“The marketing process generated multiple preemptive offers, including several from nontraditional real estate investors tied to the tech, AI and hacker‑house sectors, who submitted aggressive terms,” said Lee Bull. “This interest underscores strong validation of the demand for San Francisco boutique hotels assets supported by the impressive growth in tech and AI industries across the city.”

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Sale/Acquisition
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