Academy of Art University Leased Dorms to Startup Hub
Three former student housing buildings in San Francisco have been converted into live-work spaces for tech founders.
Updated on Oct. 14, 2026 in Remote Work
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Former Academy of Art University dorms at 1916 Octavia Street, 2209 Van Ness Avenue, and 1153 Bush Street are now operating as startup hostels for The Residency. The university is leasing the sites as it works to trim its real estate portfolio across the city.
Why it matters
The shift signals a changing role for the university's footprint as it continues to divest property following a major 2016 housing settlement. Residents are now using former dorms for video studios and robotics workspaces instead of traditional academic study.
University participants at these sites pay $2,000 per month or trade company equity to access these labs, part of a strategy that has seen the school sell off properties like its $18.3 million Fisherman's Wharf building this year.
The players
Academy of Art University
A private arts university that is currently shedding its large real estate holdings in San Francisco.
The Residency
A startup incubator that operates live-work hostel facilities in former dormitories.
The details
The Residency hosts three cohorts annually, with roughly 20 founders and researchers living at each of the three converted locations. These sites now feature video studios and robotics workspaces in place of previous student living quarters. While the university retains ownership of these three buildings, it has offloaded several others to reduce its footprint following a 2016 legal settlement requiring upgrades to 34 local properties.
Timeline
2016: The city sued the Academy of Art University over housing code compliance.
2026: The university sold three properties including a building in Fisherman's Wharf.
October 14, 2026: A report was published regarding current university property leases.
Across the Bay
This transition follows the requirements of the 2016 housing lawsuit settlement that forced the university to upgrade its stock of 34 properties. It marks a clear departure from the school's period of aggressive physical expansion across city neighborhoods.
Neighbors near Octavia, Van Ness, and Bush streets should expect continued activity from rotating cohorts of startup founders arriving every few months. The university continues to market its remaining properties, which may lead to further turnover at listed sites in the coming year.
The takeaway
The university is moving away from its role as a major real estate owner, a trend to monitor as properties like the St. Brigid Church building continue to reach the market. Watch for upcoming sales of the remaining nine properties totaling 375,000 square feet to see how the neighborhood blocks evolve.
Further reading
For more on the changing landscape of San Francisco office and creative spaces, visit the Remote Work section.
Source note: This article includes information reported by The Real Deal New York.
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