S.F. real estate fund snatches two warehouse parcels along Bayview industrial corridor

https://www.bizjournals.com/sanfrancisco/news/2020/03/13/sf-real-estate-fund-snatches-two-warehouseparcels.html

A San Francisco real estate investment firm has snatched up two large industrial parcels spanning nearly two city blocks in the city’s Bayview District.

The adjacent parcels — 201 and 301 Toland St. — are separated by Hudson Avenue and combined make up 138,000 square feet of building area on 5.5 acres. Lift Partners, which is focused on investments in office and industrial properties along the West Coast, paid $75 million for the properties.
The property at 301 Toland is a 110,000-square-foot building with multiple tenants, while the smaller parcel 201 Toland features a 28,000-square-foot trucking terminal “with a lot of excess land” and is occupied by Google Bus, a construction company and a shuttered electrical distribution business once operated by the seller, according to Scott Mason, founder of Calco Commercial Inc., an industrial real estate brokerage firm.
Mason represented the sellers of both properties -— Premiere-One Investment and Central 99 Investments.

Both parcels are zoned for production, distribution and repair and are wedged between the I-280 and U.S. 101 freeways. The sale represents a rare opportunity along the warehouse and distribution intensive Bayshore Corridor — a high-demand area with a large percentage of construction-oriented businesses from supplier to distributors that has limited availability.

“Historically [that area] has been made up of long-term family owners, like sellers of this property, who own it for decades on end,” said Mason, calling the transaction “extremely rare.”

He estimated that there are no more than “half a dozen large scale properties that have sold in the last decade in San Francisco that are industrially oriented,” he said.

Over the past year, Lift Partners has acquired $100 million worth of assets, including a two-acre warehouse site at 6000 Third St. in the Bayview. At the beginning of this year, the firm closed its second discretionary fund with $152 million in commitments, resulting in gross buying power of $425 million, as was reported by The Registry.

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