Coldwell Banker Commercial Grass Roots Realty, as Exclusive Advisor, is pleased to present the generational opportunity to acquire the The Flagg Building, an iconic, historically significant and newly renovated retail/hospitality building located in the heart of historic downtown Nevada City. The offering represents a rare opportunity to acquire a high-performing, historic asset in one of Northern California’s most desirable and vibrant communities.
Originally built in 1856, The Flagg Building is a three-story, approximately 11,200 square-foot building that has been transformed into a premier destination for dining, community gathering, and hospitality. Over the past five years, the building has undergone meticulous renovations, making the property a true centerpiece of the town’s historic charm and modern appeal. The property is comprised of ground-floor retail on the Broad St. level, a newly remodeled 9-room boutique hotel on the second floor, and a third floor that has major infrastructure improvements in place but is currently in shell condition.
While the Flagg Building is one of the oldest structures in Nevada City and a proud contributor to the charm of Nevada City’s Downtown Historic District—recognized on the National Register of Historic Places—its recent, comprehensive interior renovations place it among the most modern buildings in town. The Gold Rush-era building’s façade has been meticulously preserved to reflect its original appearance, while the interior has been completely renovated from top to bottom. The property now boasts new plumbing, HVAC, electrical, and fire suppression systems, along with top-of-the-line buildouts on both the ground floor and second story, offering the charm of historic character while completing the heavy lift of buildout and infrastructure updates which will benefit the next owner.
The ground floor is home to Communal Café (https://www.communalcafenc.com), a thriving espresso bar, bakery, and restaurant that serves as a vibrant anchor tenant and community hub, drawing more foot traffic than any other storefront in Nevada City (Placer AI). Communal Café will sign a 7-year lease upon close of escrow, ensuring strong cash flow and long-term stability.
The second floor was fully renovated in 2022/2023 and is now home to the 1856 Speakeasy(https://www.the1856speakeasy.com), a luxury 9 room boutique hotel/short-term lodging facility. The rooms feature 10-12 foot ceilings, exposed brick walls, fantastic window lines with original iron shutters, beautiful artwork, high quality furniture and bedding, and private en-suite bathrooms with top of the line finishes including claw foot bathtubs and large, walk in showers - offering one of the most elevated lodging experiences in western Nevada County. Two of the seven rooms contain two bedrooms, each with their own bathrooms and can be rented out together or separately. Communal Café operates from 7:00AM to 6:00PM daily and acts as full-service amenity for guests as it serves breakfast, lunch and dinner as well as beer and wine.
The 1856 Speakeasy was completed in 2023 and can be delivered unencumbered with a management agreement, or with the current management in place. Current ownership has done a fantastic job driving guest traffic to their website, which has resulted in 70% direct bookings. In addition, bookings are available on all the major short-term stay booking sites.
The third floor encompasses approximately 2,500 square feet of usable space and is equipped with a new electrical subpanel, HVAC system, rough plumbing, framing, and fire suppression system. While current ownership has approved plans for three additional hotel rooms complete with a large living room and game room, the space remains flexible and adaptable for a variety of uses, such as a private apartment or creative office space, allowing a new owner to complete and customize it to their vision.