Neighbourgood Sells Hotel for Nearly Double 2025 Price

Co-living and hospitality company Neighbourgood is selling a boutique hotel in Cathedral Hill one year after buying it.

The South Africa-based company sold the Sutter Mansion at 1409 Sutter Street for $7.3 million, the San Francisco Business Times reported. The buyer of the 12-room, 17,000-square-foot mansion was Sherman Oaks-based Dharma Bums Holdings.

Neighbourgood opted to dispose of the property to use the capital for opportunities more “closely aligned with [its] long-term investment thesis,” company co-founder and CEO Murray Clark told the Business Times. “While we were happy with the outcome, our strategy is focused on larger-scale adaptive reuse opportunities that align with our operating platform and brand,” Clark said.

Neighbourgood acquired the historic Queen Anne house in June 2025 for $4.8 million. At the time it bought the property a year ago, the firm planned to secure a food and beverage partner to create a full-service restaurant at the mansion. Marketing materials for the property in this sale noted a 3,600-square-foot dining space with capacity for 130 people on site.

The $7.3 million sale price works out to approximately 52 percent more than what Neighbourgood paid for it a year ago. The purchase comes as the city’s lodging sector bounces back from post-pandemic lows, with San Francisco seeing the strongest revenue per available room of any major U.S. market in the first quarter this year, increasing 31 percent year over year, per CBRE data cited by the Business Times.

Dharma Bums Holdings LLC was not registered in the state’s business database, but the Sherman Oaks-based address on the deed is tied to Avail Property Management, per California Department of Real Estate records. The address is also linked to GHC Housing, which has ties to philanthropist Greg Perlman. Denver-based Avail Property Management told the Business Times it was not affiliated with the buyer entity.

Neighbourgood has a portfolio of roughly 1,000 units in San Francisco; Cape Town, South Africa; and New Haven, Connecticut. In San Francisco, Neighbourgood operates three co-living properties at 1813 15th Street, 1856 McAllister Street and 2071 Mission Street with a total of 53 rooms.

— Chris Malone Méndez