Goodman North America Buys 2270 Jerrold in San Francisco for $70MM

Goodman North America, San Francisco, CBRE, First Student, ARA Transportation, Bay Area, Potrero Hill, Mission District

By Jon Peterson

Goodman North America, a subsidiary of one of Australia’s largest commercial real estate firms and global industrial space player, has closed on the acquisition of the industrial site in San Francisco located at 2270 Jerrold Avenue. The purchase price on the property was $70 million, according to sources aware that the property has been acquired.

Goodman, which has a U.S. operation based in Irvine, did not respond to an email seeking comment for this story.

The seller of the property was San Francisco-based First Student a successor corporation through several mergers that included ARA Transportation, which worked with the San Francisco office of CBRE as its listing agent on the sale. Those working on the transaction included Mike Taquino, Kyle Kovac and Karl Hansen, all executive vice presidents with the company. CBRE declined to comment when asked about the sale of the property.

The sales price on the property represents the largest industrial transaction completed so far in 2022 in San Francisco, according to sources that track the sale of industrial assets in the region. The seller had first placed 2270 Jerrold on the market in January of 2022. The pricing guidance on the property at that time was $55 million, according to previous reporting by The Registry. The strong pricing that the property achieved is reflective of the industrial demand that exists from both capital sources and tenants in San Francisco as well as the entire Bay Area in general.

The property as it stands now has no tenants, and it has a total of three industrial buildings totaling 13,200 square feet. This location is considered an infill site since the total area of the property comes to 3.54 acres or around 154,000 square feet. The property was first developed in 1973, and all of the buildings are single-story in height. The asset has current zoning of PDR-2, which means it can accommodate a wide range of permitted uses in the future. This could include light manufacturing, laboratory, truck terminal and vehicle parking.

The asset could become the home for a single-tenant user in the future. Some examples of this would be e-commerce, autonomous vehicle/car companies, fleet operators, institutional user, industrial innovation/R&D/tech and food beverage companies.

2270 Jerrold Avenue is located in the greater Potrero Hill and Mission District submarket of San Francisco. It stands three miles away from San Francisco’s downtown core. The area near the property is known as a home for a world class tenant base. Waymo recently signed a 120,000 square foot lease a few blocks from 2270 Jerold, according to the property’s offering document. Other nearby tenants include Amazon, FedEx, Zoox, DHL, Google, UPS and Dolby.

Goodman North America is part of The Goodman Group, which is known as an international investor in the ownership and management of industrial properties, according to its website. The company currently owns one other San Francisco Bay Area asset. This is Goodman Commerce Center of 83,674 square feet located at 1755 Rollings Road in Burlingame.

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