San Francisco’s Chinatown Child Development Center Hits Market for $7.9MM

San Francisco, Chinatown Child Development Center, Kidder Mathews, Goldenland Investment

By Catherine Sweeney

A 17,000-square-foot mixed-use building in San Francisco’s Financial/Chinatown districts recently hit the market with an asking price of $7.9 million, or approximately $475 per square foot. 

The three-story commercial office building, at 720 Sacramento Street, sits on 4,740 square feet of land, and is facing both Sacramento and Commercial Streets. The building is also within close proximity to the Bank of America Tower, the Transamerica Pyramid, Hilton and Omni hotels. It is centrally located to several districts, which include Jackson Square, North Waterfront and Union Square. 

The new Central Subway Muni underground station will also be located at Stockton and Jackson streets, which is approximately two blocks from the building.

The building is the current home of San Francisco’s Chinatown Child Development Center (CCDC), and has been for nearly two decades. The organization provides mental health, parenting education and consultation services to nearly 400 school-aged youth as well as their families. 

Currently, the organization occupies approximately 9,250 square feet of space in the building, or the entire upper floors. They are locked in a five-year extension, which is set to run through June of 2022. As of July 1, 2021,  the monthly rate brought in by tenants is at $42,958, with annual increases of 3%. The annual rent brought in from the CCDC is currently $515,496, and averages 16,618 square feet per rent roll as of July 2021.

The sale of the building is being facilitated by Kidder Mathews First Vice President Jeffrey Hutchins and Senior Vice President David Wientjes, as well as Goldenland Investment real estate broker Judy Chu. 

“We feel they provide so many things for the Chinese community,” Hutchins said about the CCDC. “It’s a good, strong, stable tenant.” 

With expenses to maintain the building totaling $160,973, the net operating income is $517,613, according to Kidder Mathews. 

The property was previously put on the market at the start of the pandemic for $8.9 million, but was pulled shortly after and has come back with an asking price for approximately $1 million less, Wientjes and Hutchins said.

“We priced it accordingly. We think this building is really attractive to someone coming out of an exchange,” Wientjes said. 

Nearby comparable properties that were recently sold range in price from approximately $5 to $26 million. The most expensive listing was a 30,000-square foot office building at 900 Kearny Street, at $26.9 million. Other comparable properties include 353-359 Kearny Street, a 9,729-square-foot building listed for $6.8 million, and 559-561 Clay Street, a 17,520-square-foot office building listed for $9.95 million. 

West Coast Commercial Real Estate News