Hillary Gitelman, director of planning at the Presidio Trust, said the primary goal is to rehabilitate the historic hospital building, which is a 173,000-sf, seven-story building designed in Georgian Revival style and built around 1930. In 1952, two non-historic seven-story wings and a lobby expanded the facility by 125,000 sf.

The building is part of the 42-acre public health hospital district, which contains another 100,000 sf of buildings, including nearby dormitories, offices, residences and recreational buildings. "It's in the southwest area of the park and it's kind of set away from a lot of other parts," Presidio Spokesman Ron Sonenshine tells GlobeSt.com. "It's a significant piece of the park; the early read is there will be some significant interest."

Presidio is a 1,500-acre property that the military vacated in 1994, leaving 1,000 units of housing, mostly apartments, and 500,000 sf of commercial space. Congress created the Presidio Trust to make the property self sufficient. Currently, $45 million of the property's $80-million operating budget comes from leasing revenue; the rest is federal subsidy. By 2013, the federal subsidy must be zero.