By Jon Peterson
A joint venture comprised of three active San Francisco players has began the marketing for sale the office asset located at 333 Valencia Street. Prado Group, Murray Hill Partners and Angelo Gordon have set the pricing guidance on the sale at approximately $60 million, or around $1,077 per square foot, according to sources that track the sale of office buildings in San Francisco.
The Prado Group did not respond to a voice mail seeking comment for this story.
The current ownership has selected the San Francisco office of JLL to be the listing agent on the sale. Among those working on the marketing efforts include Rob Hielscher, senior managing director, and Erik Hanson and David Dokko, both senior directors. JLL declined to comment when contacted for this story.
333 Valencia is a 55,685 square foot property. Around 97 percent of the building is office space and the remainder is comprised of retail space. The current occupancy of the property is 83 percent. The City and County of San Francisco is the anchor tenant in the property, which leases the building for its Department of Public Health. This tenant has a NNN lease that runs for approximately 15 years with annual three percent rent escalations.
The current ownership has spent a total of $13.8 million to renovate the property. This has included $11.2 million for base building upgrades and $2.6 million for a tenant improvement allowance. The overall work has included a full seismic upgrade, a new PG&E electrical service, new mechanical, electrical, plumbing and sprinkler/life safety systems, a new roof, two new elevators and exist stair wells, new core and shell restrooms, new entry lobby and elevator lobbies, new bike room and site improvements.
The property is near multiple public transportations options. These include two BART stations at 16th Street and the 24th Street Mission Station, the light rail line at J Church Muni Metro, Caltrain, 10 city-run bus lines, and several corporate shuttle buses for companies such as Google, Facebook, Genentech and Apple.