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AAA Inks 255,000-SF BTS; Current HQ for Sale

SAN FRANCISCO-The California State Automobile Association is selling its 580,000-sf Civic Center portfolio here in favor of a built-to-suit digs in Walnut Creek.

By Brian K. Miller | Updated on June 27, 2007

SAN FRANCISCO-The California State Automobile Association is selling its four Civic Center properties here in favor of a brand new headquarters building in Walnut Creek that is being built to suit the 1,000-person organization. Construction of the new six-story, 250,000-sf building and adjacent parking garage will commence early next year and be completed two years later. The company has signed a long-term lease with Equity Office Properties that includes a fixed-price purchase option.

The sale price for its Civic Center portfolio should cover the cost of its new digs, which local industry sources tell GlobeSt.com will cost EOP as much as $500 per sf to develop. The CSAA owns four buildings near the intersection of Van Ness Avenue and Hayes Street, one block from City Hall. The jewel of the 580,000-sf portfolio is a 28-story, 375,000-sf building at 100 Van Ness Ave. that dates to the 1970s and boasts views of all four bridges from the upper floors. The rest of the portfolio, built in the 1950s, consists of two connected eight-story buildings and one nine-story building located at 150 Van Ness Ave. and 150 Hayes St. The portfolio includes parking for 248 vehicles.

The estimated value of the portfolio is well north $100 million, local investment specialists tell GlobeSt.com, possibly as high as $140 million, which translates to a blended price of approximately $241 per sf. Edward Suharski, the Grubb & Ellis SVP with the disposition assignment, declined to estimate the value of the portfolio but says it would come about 75% leased and the vacancy will consist of 10 contiguous floors in the high rise that the buyer can select. Tours are under way; bids will be due toward the end of July. “The views from the upper floors are stunning, some of the best in the city,” he tells GlobeSt.com.

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