No, it’s not a typo nor fat finger error. The 7,640-square-foot building on the southwest corner of 2nd and Jessie Streets in downtown San Francisco has been priced at $25 million or nearly $3,275 per square foot.

But the asking price includes…the five-year-old Flower Power medical cannabis dispensary (MCD) on the first floor of the building at 70 Second Street.

As a point of reference, a similar sized and type of building at 353-359 Kearny Street has been on the market for nearly a year at $770 per square foot. We’ll let you back into an implied value of the dispensary.

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Comments from “Plugged-In” Readers

  1. Posted by really?

    Anyone know if any bank would lend on this? Would assume not.

  2. Posted by Notcom

    Sounds like whoever set the price was sampling the product downstairs (yes, a “high” price it is!)

    • Posted by Brisket

      High price indeed. Certainly asking for a lot of green for this one. Not sure how many offers will come rolling in.

      • Posted by Notcom

        Financing is the problem: too risky for a loan too much for a single buyer (a sensible one, anyway)….maybe a joint venture ??

        • Posted by gribble

          Who would want to take a hit on this? I’m going to have to pass.

          • Posted by condoshopper

            It is just plain greed, to say it in a blunt way.

        • Posted by Brisket

          Sure you could finance through a joint venture, but I’d still worry about my investment going up in smoke on a project like this.

  3. Posted by Brahma (incensed renter)

    Sure, you probably won’t be able to get a loan from JPMorgan Chase, but financing a deal like this is one reason why shadow banking exists. And there’s so much irrational exuberance surrounding legal and quasi-legalized marijuana businesses over the past few years that I have no doubt an enthusiastic buyer will emerge with financing provided by someone. Failing that, there’s always the option of a 100% equity deal, which the buyer could probably crowd-source from potheads.

    Not saying the seller’s going to get $25M, though.

  4. Posted by Amewsed

    This must be the first of its kind. But with CA pot crop supply already at 8 times the demand, the asking price for the business + building seems out of range.

    I know the Kearny St. building and it took several years to empty out the office tenants and take it down to the studs. Originally thought it was going to be a tech space but didn’t see any movement inside. If the price is right and office space could be converted to partial living space, maybe WeWork/Welive would be interested.

  5. Posted by TideGoesOut

    About a year ago it was for sale at $12MM or so, now $25MM….HIGH is an understatement.

  6. Posted by Karl (not the fog)

    Amewsed: that 8 times supply over demand is already (and has been for a while) supplying markets outside California. I’m from Humboldt–this is not news.

    Regardless, how that translates into a $25 million asking price for this building is a mystery.

  7. Posted by SFRealist

    I don’t know if it’s overpriced, but there’s a lot of money to be made with weed. (Sorry, ‘medical’ cannabis.)

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