HELP! Suggestions on how to improve a mixed use property?

[Richard Gaddi]

I have a good friend and potential client who inherited property from his parents in a good location in San Francisco. The problem is that the property is older and needs updating which he wanted to do by taking some money out against the property. The other piece to that problem is that the vendors down below are severely underperforming due to COVID which has made any sort of financing hard to achieve. 

He would like to keep the property and improve it's situation which is why I'd love to get any suggestions from our BP family. Also, would appreciate any ideas about fully converting it from mixed use to full on residential as well. Thank you all in advance! 

Property details:

Zoned RH2

(2) 2/2 residential units upstairs.

Dry cleaners, salon + laundry mat down below. 

3 story corner building @ 3300+ sqft sitting on a 1900+ sqft lot.