Stockdale & Grosvenor JV to Buy Parking Garage in San Francisco for $19.2MM

Stockdale Capital Partners Ace Parking Management Grosvenor Group SOMA Grand Garage San Francisco Sacramento Bay Area commercial real estate


By Jon Peterson

Los Angeles-based Stockdale Capital Partners in a joint venture with San Diego-based Ace Parking Management and London-based Grosvenor Group will be buying the SOMA Grand Garage in San Francisco at 1160 Mission Street shortly after the first of the year. The purchase price is expected to be $19.2 million, according to sources familiar with the transaction.

[contextly_sidebar id=”amt0MIO5ls3Rhm78LbZPI1CgYS6JkSmS”]“This property is a very strong asset in San Francisco. It currently has its highest level of occupancy ever. The occupancy now is at 90 percent, which compares to a more typical range of the 70 percent to 80 percent. Our expectation is that the property will produce a double-digit cash-on-cash return in the first year,” says Dan Michaels, a managing director with Stockdale Capital.

He thinks that the existing parking garages that are left in San Francisco are currently very valuable. “Many of the existing garages over the past few years have been redeveloped into other property types like office buildings and apartments. This has made the garages that are left all that more valuable,” said Michaels.

The SOMA Grand Garage totals 364 stalls, and it was constructed in 2007. The actual number of spaces can be increased to over 500 when valet parking is used. The property is being sold by a private, non-institutional owner. There is no brokerage firm involved in the sale.

The asset is located adjacent to the SOMA Grand Condominiums in the Mid-Market sub-market of San Francisco. This is where 20 percent of San Francisco’s technology companies have offices, and where parking is at a premium due to the fact that very little new parking facilities have been built there recently. This sub-market has less parking than downtown or other areas of San Francisco.

This transaction is the first asset where the joint venture hopes to invest $200 million into parking garages in the Southwest region of the United States. The equity invested into the venture is in excess of $75 million, as stated by sources aware of the relationship.

The deals for the venture could be buying existing garages or building new garages. The targeted markets for the venture would include San Francisco, Sacramento, Seattle, Los Angeles, San Diego, Denver, Houston, Dallas and Phoenix. The venture expects to hold onto these assets for a long time.

West Coast Commercial Real Estate News