San Francisco, CA (December 2, 2020) — Newmark announces the $22.2 million sale (nearly $924 per square foot) of a 24,030-square-foot research and development (“R&D”) building in San Francisco’s Mission District. The property is fully leased to Ouster, a leading developer and manufacturer of lidar technology.
Newmark’s Executive Managing Director Mark Geisreiter, Senior Managing Director Seth McKinnon, Associate Director Nadav Kariv and Head of Northern California Capital Markets Steven Golubchik, represented sellers BUILD and Edge Principal Advisors. The buyer, Ridge Capital Investors & Contrarian Capital Management, was self-represented.
“We had a deep pool of buyers interested in 2741 16th Street; the market for R&D buildings in San Francisco remains a bright spot,” said Geisreiter. “BUILD and Edge did an outstanding job on the building’s renovation and Ridge and Contrarian have acquired a very high-quality building with future upside through the potential redevelopment of the yard space.”
Located at 2741 16th Street, the property recently underwent a significant renovation transforming it into a premium R&D building with limited future capital requirements. The property is situated along the 16th Street corridor, the primary East-West artery in the Mission District which connects the 16th Street BART Station to Mission Bay. It is located three blocks from the 16th Street BART Station as well as the dynamic Mission and Valencia Street retail corridors, offering ease of accessibility via public transit. Rare for an in-fill location in San Francisco, the property includes 25,000 square feet of yard space containing 62 surface parking stalls.
According to Newmark Research, the San Francisco production, distribution and repair (“PDR”) market’s overall vacancy rate decreased 110 basis points in third-quarter 2020 to 4.8 percent. Overall asking rents in third-quarter 2020 have maintained second-quarter 2020 levels, averaging $62.33 per square foot. Demand for high-quality PDR space remains healthy despite uncertainties in the overall market.
About Ridge Capital Investors
Ridge Capital Investors, LLC, (https://www.ridgecapitalinv.com) a real estate investment and operating firm located in San Francisco, CA, invests in multifamily and commercial properties throughout Northern California. Founded by Trevor Wilson and principals Brian Printz, David Karol and John Jordan, the company focuses on opportunities where it can create significant value by capitalizing on the investment team’s collective experience in over $6 billion of real estate investment and development over the past 25+ years.
BUILD (www.bldsf.com) is a San Francisco-based, Bay Area-focused real estate development company focused on the acquisition, entitlement, construction and operation of urban infill multifamily and creative office/light industrial/R&D projects. Since BUILD’s formation in 2003, BUILD has acquired and entitled thousands of units and built more than 500 units across 4 projects. BUILD currently has a pipeline of more than 3,000 units in various stages of development.
About Newmark (Nasdaq: NMRK)
Newmark Group, Inc., together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.