California Pacific Medical Center Expands at One South Van Ness

SAN FRANCISCO-California Pacific Medical Center has expanded its lease at the One South Van Ness office building to 125,032 sf. Already leasing 62,516 sf in the building, the Sutter Health affiliate committed to leasing another 48,000 sf for just over eight years, making it co-terminus with the original lease.The transaction is the first significant lease in the eight-story, 452,000-sf building since TMG Partners acquired the mostly vacant property in July for about $38 million, or just under $80 per sf. The seller was American Financial Realty Trust, which acquired the former data center last year from Bank of America for about $44 million, according to published reports.One South Van Ness is located mid-market near Civic Center and on transit with Muni, Metro and BART. Built in 1950, it was acquired by BofA in 1983 and in 1989 rehabbed and seismically upgraded the building in 1989. Aside from CPMC and BofA, which is in the process of vacating its 300,000 sf in the building, the other significant tenant in the building is the State Compensation Insurance Fund (60,000 sf).TMG’s leasing agent, Jones Lang LaSalle broker Wes Powell tells GlobeSt.com that CPMC is taking about 34,000 sf immediately and must take down the remaining 14,000 sf in two years. The expanded lease will give CPMC all of the building’s fourth and eighth floors. Christopher Ott of USI Real Estate Brokerage Services Inc. represented CPMC in the transaction. He was unavailable for comment. The lease leaves about 245,000 sf of available space in the building, including four full floors, each about 63,000 sf. Powell declined to reveal the negotiated lease rate, but the full-service asking rate in the building is in the mid-$20s per sf.”We’ve had terrific interest from big-block users,” says Powell. “It’s a great building for government users and others that need big chunks of space near multiple transportation options.”