By Jon Peterson
An Brooklyn, NY-based seller associated with an LLC called Newco 2017 has placed on the market for sale the development site in San Francisco located at 424 Brannan, according to sources familiar with the property. There was no pricing guidance information available at this time.
The seller has hired the San Francisco office of Colliers International to be the listing agent on the sale. Among the people working on the sale are Tony Crossley, executive vice president, and Darren Kuiper, vice president. Colliers declined to comment when contacted for this story.
The current owner of the property has owned the site since November of 2017. It had acquired it for $22 million, according to public records.
The leading potential use for the site in the future could be the development of a new hotel. The offering provides the ability to leverage the existing Handel Architects designed hotel project for a 226-room asset. This development proposal is already fully entitled, and provides a baseline for the new ownership. This type of project would be able to play off the eight million square feet or so of new office projects planned for the Central SOMA neighborhood of San Francisco. This part of the city has a lack of new hotels developed in the area, and a project of this size has the potential to be very successful.
The property also has a flexible Central SOMA mixed-use office zoning that allows for the project to be developed into office space, life sciences/lab, PDR and residential uses, as well. If the new owner decides to go the way of life science or lab it would be able to sidestep San Francisco’s Prop M, which doesn’t apply to that type of commercial real estate development.
424 Brannan is located between 3rd and 4th Streets. It is situated in a neighborhood that has strong public transportation options. It is a two-minute walk from the central subway and five minutes from the 4th and King Street station for Caltrain, which provides the main connection to all cities along the 101 corridor into Silicon Valley.