SAN FRANCISCO—A trifecta of transactions that were all associated with a single Mission District property were marketed and closed by TRI Commercial/CORFAC International, according to president Tom Martindale, SIOR. The buyer of the building located at 2650 18th St. was Chai LP, a multi-generational, family-owned real estate investor based in San Francisco.
In the initial transaction, Jason James, senior adviser at TRI, marketed and subsequently sold the two-story, 34,400-square-foot, production/distribution/repair (PDR) zoned industrial building with 42 below-grade parking spaces. He represented the seller, 2650 18th Street LLC, in the $14.25 million deal, where the property was occupied by Weston Wear. James subsequently represented Weston Wear in its relocation to 389 Oyster Point Blvd. in South San Francisco, where it now occupies approximately 12,000 square feet.
While the Mission property was in escrow, James also leased the entire building to Zesty, a catering company that delivers, sets up and serves healthy restaurant-made meals to businesses throughout San Francisco. The company plans to take occupancy of its new space soon. Zesty was founded in 2013 and is backed by numerous Silicon Valley investors and venture funds. KQED, Heath Ceramics and HTC (designer of Android phones) are located across the street from the future Zesty headquarters.
James tells GlobeSt.com: “The active sale environment and the demand for such limited blocks of space is very indicative of what is going on with the market, there's more demand than available space.”
James said that 2650 18th St. was offered for sale unpriced and during the listing period, there were many offers for the property from a variety of investors, as well as potential owner/occupiers.
“Given how hot the San Francisco market is and the highly desirable location of this property, I was not surprised by the level of activity the offering generated. It really could have gone in the other direction of being purchased by a developer with an eye toward adding additional floors to the site, but we found a local investor who wanted it as-is and a tenant that was willing to renovate the building on their dime,” he added.
As previously reported, a historic preservation effort includes a project in the Mission.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
