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12/07/20
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A 24k sf R&D building in San Francisco’s Mission District has sold for $22.2 mil ($925/sf). The property is fully leased to Ouster, a leading developer and manufacturer of lidar technology.
2741 16th St (2nd bldng from the left) |
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Located at 2741 16th St, the property sits along the 16th Street corridor, the primary East-West artery in the Mission District which connects the 16th Street BART Station to Mission Bay. It is three blocks from the 16th Street BART Station as well as the dynamic Mission and Valencia Street retail corridors, offering ease of accessibility via public transit.
The building recently underwent a significant renovation transforming it into a premium R&D building with limited future capital requirements. Rare for an in-fill location in San Francisco, the property includes 25k sf of yard space containing 62 surface parking stalls.
Mark Geisreiter, Seth McKinnon, Nadav Kariv and Steven Golubchik with Newmark represented the sellers, BUILD and Edge Principal Advisors. The buyer, Ridge Capital Investors & Contrarian Capital Management, was self-represented.
“We had a deep pool of buyers interested in 2741 16th Street; the market for R&D buildings in San Francisco remains a bright spot,” said Geisreiter. “BUILD and Edge did an outstanding job on the building’s renovation and Ridge and Contrarian have acquired a very high-quality building with future upside through the potential redevelopment of the yard space.”
According to Newmark Research, the San Francisco production, distribution and repair (“PDR”) market’s overall vacancy rate decreased 110 basis points in third-quarter 2020 to 4.8%. Overall asking rents in third-quarter 2020 have maintained second-quarter 2020 levels, averaging $62.33 per square foot. Demand for high-quality PDR space remains healthy despite uncertainties in the overall market.
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