Beckett Capital and NAREIG closed the sale of a parking structure located at 425 Broadway in San Francisco’s North Beach to a Silicon Valley investor for $11 million in a deal that closed May 30.
The two-story, 14,266 square foot parking structure had been a Menlo Park family-owned property managed by Deerfield Realty for more than six decades prior to this transaction. “It’s a long term hold,” said Noravian. “They [the seller] just saw a great opportunity to sell.”
Noravian said the development market in San Francisco is strong, and this site offers multiple benefits. “Ultimately the reason my client purchased this is because it’s a classic covered land play,” he said. “It’s got income today from the parking and great development potential.”
While the buyer doesn’t have specific plans for the site yet, Noravian said it will be some kind of mixed-use development. “It’s in the North Beach area of San Francisco which is really sought after as far as there’s not a lot of new development in that area,” he said. “It’s an area that could have some very interesting new product, most likely multifamily but for now it’s still undetermined,” he added. The current zoning for the location is 65 feet tall, so a high-rise residential or mixed-use project is likely out of the question.
Noravian did say that the sale was unentitled so there are no plans in place but with the parking operator that’s currently in place, there’s good income currently at the property.
For reference and an example of what the parking structure could become, Noravian pointed to a new product coming online nearby which is a 38-unit residential building. “38-units is a product of scale in this area. Even though it seems like it’s not a lot, it is for this part of town,” he said.
David Noravian of Beckett Capital and Mike Pan of NAREIG represented the buyer. Seth McKinnon of CBRE represented the seller, a local family partnership managed by Deerfield Realty.