By Jon Peterson
Bentall GreenOak has chosen to market for sale the mixed-use property in San Francisco located at 1700 California Street. The potential price point on the sale might push past $150 million, according to sources that are familiar with the sale of the property.
The current ownership has hired the San Francisco office of Newmark Knight Frank to be the listing agent on the sale. Those working on the sale include Steven Golubchik, vice chairman, Seth McKinnon, senior managing director, and Mark Geisreiter, executive managing director. Newmark declined to comment when contacted for this story.
The mixed-use property is made up of three real estate types. There is a commercial component in the asset, which comprises 103,175 square feet. This includes a mixture of 92,185 square feet of medical office and 10,990 square feet of retail. This part of the property has a current occupancy of around 70 percent.
The residential portion amounts to 47,120 square feet, which is made up of 47 residential units. This part of the property has a current occupancy of 83 percent. A potential move by the new owner would be to convert the residential units in the property to active adult living units. In this scenario, the rental rates on the residential units could generate as much as 30 percent rental rate premiums.
The property also has a parking component in the structure, made up of 155 parking spaces, which are allocated between 108 spaces for the commercial portion and 47 for the residential units.
1700 California is located within the Van Ness Urban medical campus area. Some of the other properties nearby include 1100 Van Ness, a 234,000 square foot medical office asset, the Sutter Health/CMPC hospital with 234 beds and the 97,423 square foot Daniel Burnham Court medical office and retail property.
Bentall GreenOak has invested $15 million of its own capital into the renovation of the building over the past few years. This has included new lobbies for both the residential and commercial portions of the property.
1700 California is located in close proximity to several retail and fitness amenities, as well. These include a couple of well-positioned supermarkets, Whole Foods and Trader Joe’s, and fitness facilities that include 24-Hour Fitness and CorePower Yoga.