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Here’s what $21M gets you in downtown San Francisco

The Civic Center Inn, which has been closed for several months and is covered in graffiti, was listed for $21 million in August. | Source: Garrett Leahy/The Standard

A run-down, graffiti-covered hotel known as the Civic Center Inn on the corner of Downtown San Francisco’s Ellis and Polk streets can be yours for a cool $21 million.

The listing describes the hotel’s location as a “prime San Francisco corner lot” with lots of off-street parking.

The Tenderloin neighborhood, where the Civic Center Inn sits, is the area most affected by the city’s drugs and homelessness crises. But despite the hotel’s undesirable location, Jeff Appenrodt, a real estate broker with Laurel Realty and Investments, said he’s been fielding calls from brokers interested in buying it just days after listing it.

However, the homeless people living outside the hotel didn’t think it was worth the list price.

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James Pace stands outside the Civic Center Inn in the Tenderloin on Thursday. | Source: Garrett Leahy/The Standard

“I’d give you $10,000 for it,” said James Pace, who said he has been living on San Francisco’s streets for a year. “But I bet they’re selling it for like $100,000.”

Brittany Hank said she thought the hotel would be listed for $1 million.

“But I don’t think it’s worth it,” Hank said.

Gerald Robinson nearby said he figured the hotel was on sale for $5 million.

‘That’s Way Off’

A three-story motel with graffiti on its walls under a clear blue sky. A red car is parked in the lot.
The Civic Center Inn has been closed for several months and is covered in graffiti. | Source: Garrett Leahy/The Standard

When told the actual listing price, the homeless crowd was left in a state of shock.

“Holy sh*t, what the f*ck?” Hank said. “That’s way off!”

Hank said the run-down hotel has squatters living inside—although she didn’t know how many—a potential headache for any serious buyer.

Appenrodt said he’s aware of “a handful” of people living inside the dilapidated structure. He doesn’t know if they’re paying rent or have a rental agreement longer than 30 days, which would give them eviction protections, or if they would have to be evicted for nonpayment of rent.

“The buyer will have to figure out what to do with them,” Appenrodt said.

The Civic Center Inn has a handful of people living inside it, according to a real estate agent. | Source: Garrett Leahy/The Standard

Pace said the list price was part of the reason why the city has a burgeoning homeless population of at least 7,000 people.

“That’s why we’re having problems right now,” Pace said, gesturing to the encampment around him. “That’s too much for that.”

But Robinson felt the hotel was fairly priced.

“It’s worth it,” Robinson said. “It’s a big hotel; there’s money in it.”

Why the Price?

Why the price? Its potential, said Appenrodt, the building’s listing agent. 

While the hotel has been closed for around five months, the half-acre parcel is zoned to allow developers to build up to 130 feet, meaning a buyer could tear the hotel down and turn it into a large housing project, he said. 

“If you’re looking at future development,” Appenrodt said. “It’s already so rough down there that it’s bound to get better as time goes on.”

Appenrodt said he’d like to see the city buy the building and turn it into a 100% affordable housing project.

“It’d be a perfect place to house at least 82 people,” he said. 

San Francisco’s Department of Homelessness and Supportive Housing said the hotel’s owners asked the city to buy the hotel, but the city opted not to do so because of the high costs associated with renovating the site to make it into permanent housing.