By Jon Peterson
The industrial market across the region continues to garner interest from investors around the globe, and any available assets on the market are certain to get a look. This may be why a Mill Valley-based private limited partnership affiliated with the Mellett and Brady families has offered up for sale the industrial building leased to Lyft in San Francisco located at 330 8th Street in San Francisco. The asking price on the property is $11 million, or $489 per square foot, according to the property’s offering document.
The seller of the property has chosen San Francisco-based Touchstone Commercial Properties to be the listing agent on the sale. Those working on the sale include Zach Haupert, Michael Sanberg and Trevor Gudim. All three team members of Touchstone are involved in the sale and leasing of properties for the company.
The asset last traded in March 2021 for $7.25 million, according to public records. The potential sale of the property would come in somewhat lower on a per-square-foot basis when compared with a number of recent industrial property sales in the South of Market submarket of San Francisco.
Touchstone Commercial recently sold 550 3rd Street for $12.5 million, or $621 per square foot, in early September and 431 Jesse for $4.2 million, or $728 per square foot, in October, according to public records.
The challenge with the property is that the current tenant, Lyft, will be reaching the end of its lease in November of 2023, and the new owners will have a leasing decision to make. Lyft has been in the news recently. The company has missed its Q3 of 2022 revenue estimates, and the company has decided to lay off 13 percent of its workforce. Extending the lease with Lyft, therefore, could be in jeopardy given its present market standings, which may mean the new owners will have to focus on finding a new tenant to occupy the property.
330 8th Street is an industrial building that totals 22,488 square feet. The property was first developed in 1929 and had been renovated last year. The parcel size of the asset is 7,496 square feet. The asset is a move-in ready warehouse building with drive-up ramps on each floor. The parking component at the property has room for approximately 200 cars. The office space portion of the property is around 1,750 square feet. The property also has a car wash bay on the premises with a floor drain.
The industrial property is near some mass transportation options. The location is roughly a 10-minute walk away from the Civic Center BART station and 23 minutes away from the Caltrain station on 4th Street.
The South of Market sub-market for warehouse/distribution remains tight from a vacancy standpoint. According to data researched by JLL for the third quarter of 2022, the vacancy in the sub-market was at seven percent. The industrial buildings in the area total 319,000 square feet with no new property under construction.