By Jon Peterson
The 241-stall 350 Beach Street Garage in San Francisco near Fisherman’s Wharf is now on the market for sale, according to its offering document. There is no indication as what the price point might be on the sale.
The asset is planning to be sold for the first time in over 35 years. The listing agent on the sale is the San Francisco office of Newmark Grubb Knight Frank through its Retail Capital Markets group. Nicholas Bicardo, a vice chairman with the company, is one of the people involved in the sale. He did not respond to several phone calls seeking comment for this story.
The future of the property could go in a couple of directions. The property could be kept as it stands now and future income could still be added to the asset along with parking. There are three major tenants involved with the property. One is the Imperial Parking Corporation, which takes up 71,706 square feet of the building. Its lease runs until the end of May 2019 without extension options remaining. This master lease is around 50 percent below market rates, according to some estimates. The value-add nature of this property could be bringing the rent in the property up to a market level.
Enterprise Rent-A-Car has a space in the property of around 7,000 square feet. The tenant will be in this space through July 30, 2021. Finally, there is a Mexican restaurant in the property that rents the retail space on a month-to-month basis. This is the El Farolito Taqueria, which takes up 2,782 square feet in the property.
350 Beach Street Garage also has the potential for a redevelopment opportunity for the new owner. It has a flexible zoning standard that allows investors to pursue a myriad of alternative uses. This would include hotel, retail, office and residential. The current income from the lease with Imperial Parking would allow the owners a positive return on its investment while the company goes through the entitlement process.
The site’s land use is designated Community Business by the City of San Francisco’s planning code. This designation serves several functions including providing convenience goods and services to the residential areas. Future development emphasizes retail uses. A wider variety of goods and services is included to suit the longer-term needs of customers and the community.