The iconic Phoenix Hotel at 601 Eddy Street is on the market with a $15 million price tag, paving the way for a major residential development in San Francisco's Civic Center neighborhood. Known for its nostalgic SoCal motel vibe, the Phoenix Hotel has stood as a unique figure in an area between the Civic Center and the Tenderloin. But its days may be numbered as the .87-acre site attracts developers eyeing its potential for high-density housing.

According to SFist, the property is zoned to build up to eight stories high and could accommodate up to 450 units with the state's density bonus. The listing suggests a calculative rate of approximately $40,000 per developable unit. Despite its location at the lively but dicey corner of Larkin and Eddy streets, the hotel has maintained its boutique charm and a popular restaurant/nightlife space, charging up to $300 a night during peak events like Pride Weekend.

Newmark, serving as the exclusive advisor to the Seller, has highlighted the property's strong investment potential. The hotel currently operates under a lease to Bunkhouse Hotels that doesn't expire until September 30, 2025, meaning interim income is on the table for an investor during the entitlement process. Other draws include its close vicinity to Van Ness Avenue and the city's latest transit line, putting it in the heart of an amenity-rich locale with robust retail, restaurant, and nightlife options.

According to promotional materials obtained from Newmark, the Phoenix Hotel is "a cultural icon and has been a favorite of the rock and roll set for decades." While there's an acknowledgment of its sentimental value and history, the looming transition underscores shifting priorities in urban development, where residential demand in urban centers often dictates the repurposing of older, character-rich establishments.