By Jon Peterson
Los Angeles-based Stockdale Capital Partners has put under contract the acquisition of the 241-stall 350 Beach Street parking garage in San Francisco. The deal is projected to be north of $13 million, as stated by sources familiar with the transaction.
Stockdale declined to comment on the acquisition when contacted for this story. The investment firm will be buying the property for its programmatic joint venture with UK-based Grosvenor Group and San Diego-based Ace Parking.
The property was put on the market for sale in January of this year. The listing agent on the sale is the San Francisco office of Newmark Grubb Knight Frank through its Retail Capital Markets group. Nicholas Bicardo, a vice chairman with the company, is one of the people working on the sale. The trade of the garage is projected to have a closing later this month.
The potential new owner of the property could create some value to the asset moving forward. There is a master lease on the property that is around 50 percent below market rates. One of the tenants in the property is Imperial Parking Corporation. It has a lease that runs until the end of 2019.
The property does have some redevelopment potential. It has a flexible zoning standard that allows investors to pursue a multitude of users for the future. The possibilities include hotel, retail, office and residential.
The site’s land use is designated Community Business by the City of San Francisco’s planning code. This designation serves several functions including providing convenience goods and services to the residential areas. Future development emphasizes retail uses.
The transaction with 350 Beach Street would be the second acquisition for the Stockdale/Grosvenor/Ace Parking venture in San Francisco. Earlier this year, the venture bought the 364-stall SOMA Grand garage in the South of Market section of San Francisco. This relationship continues to look for surface lots and parking structures in major markets throughout California and the Southwest.