PDR Space in San Francisco’s Mission Sells for $32MM

CBRE Mission District Potrero Hill Showplace Square San Francisco BT Property LLC Bonhams & Butterfields Mission Bay PDR David Abney Patrick Meade

CBRE Mission District Potrero Hill Showplace Square San Francisco BT Property LLC Bonhams & Butterfields Mission Bay PDR David Abney Patrick Meade

A rare opportunity to own a full city block in the Mission District on the border with Potrero Hill and Showplace Square came up at the beginning of 2016. CBRE had helped put up for sale 220-290 San Bruno Ave. in San Francisco, a two-building property totaling 71,510 square feet and sold it on September 1, 2016 for $32 million, or just over $447 per square foot, according to public documents.

The buyer was Atlanta-based BT Property LLC, an organization linked to David Abney, the CEO of UPS. The seller was a company associated with Patrick Meade, the president for Bonhams & Butterfields Auctioneers Corporation, also the current tenant in one of the buildings.

Neither party nor representatives of CBRE were available for comment.

According to the offering document, 220 & 290 San Bruno total approximately 71,510 square feet of existing office, showroom and warehouse space located on an entire city block, comprising 80,000 square feet of land area, including an 84-stall surface parking lot. 290 San Bruno, totaling approximately 17,800 square feet, is 100 percent leased to Bonhams, a credit PDR-qualified tenant; 220 San Bruno, totaling approximately 53,710 square feet is vacant.

Located along the 16th Street Transit Corridor, which connects the Third Street Light Rail in Mission Bay and the 16th Street BART Station in the Mission District, the property provides prominent freeway identity from the adjacent US 101/80 freeway, which connects San Francisco to Silicon Valley and has one of the highest traffic counts in Northern California.

The existing buildings offer the potential for expansion and repositioning into premier creative PDR-qualifying space, featuring concrete and timber-frame construction and high ceilings. Approximately 14,000 square feet of space could be added to the location, according to the document.

The underlying zoning for 220 & 290 San Bruno Avenue is PDR-1-D, which allows a wide range of production, distribution, repair and design-related uses, as well as R&D, retail, and office uses under certain conditions. The current vacancy rate amongst the largest 31 PDR buildings in San Francisco, which total nearly 4 million square feet, is 3.6 percent, excluding current pending leases, and asking rents in premier PDR buildings have exceeded $60 per square foot industrial gross (lease covers property taxes and insurance in the base year), states CBRE.

Mark Geisreiter, Matt Kroger and Amanda Emmerson out of CBRE’s San Francisco office represented the seller in the transaction.

West Coast Commercial Real Estate News