233 Broad Street

Nevada City, CA 95959

The Flagg Building is a newly renovated, 11,200 square foot hospitality asset with ground-floor leased restaurant/caf located in the heart of historic downtown Nevada City, CA. Originally constructed in 1856 and comprehensively renovated over the past five years, it blends timeless architectural character with upgraded building systems and curated interior finishes. The second floor comprises a thoughtfully designed, 9-room boutique hotel, while the ground floor is home to Communal Caf, a popular restaurant/caf operating under a long-term lease. Ideally located at the busiest pedestrian intersection in Nevada City (Broad and Pine Streets), The Flagg Building commands unmatched visibility and foot traffic in the town's historic core, benefiting from year-round tourism and direct adjacency to the area's most vibrant dining, retail, and cultural offerings. The third floor is currently in shell condition, with major infrastructure improvements completed and fully approved plans in place for three additional hotel rooms, offering a shovel-ready opportunity to expand the key count and grow revenue. In addition to the physical expansion potential, the boutique hotel presents a compelling operational value-add opportunity. With recent renovations already complete, new ownership is well-positioned to enhance hospitality performance through improved marketing, professional management, and optimized rate strategies, driving occupancy toward market levels and achieving outsized returns. With strong in-place income from Communal Caf, a fully operational and recently delivered boutique hotel, and a clear path to expand and materially increase revenues, The Flagg Building offers a rare opportunity to acquire a premier hospitality asset in one of Northern California's most vibrant destination markets. On a bifurcated basis, the offering can be evaluated as follows: the hospitality component is priced at approximately $189,000 per key, the ground floor leased retail at a 7.9% cap rate (approximately $310/SF), and the third floor shell at just $120/SF, offering significant intrinsic value and multiple paths to upside. Notably, this offering reflects a meaningful discount to the recent sale of the fully stabilized National Exchange Hotel, located on the same block as The Flagg Building. Please refer to the Offering Memorandum for detailed financials and floor-by-floor valuation breakdown.

Listing courtesy of Tucker Commercial



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Last checked 2026-06-16 11:43 PM PDT