PCCP – Lift Partners JV Acquires South San Francisco Warehouse for $28.05MM
San Francisco, CA, March 16, 2018– PCCP, LLC announced today that PCCP in joint venture with Lift Partners acquired a 117,500-square-foot warehouse building for $28.05 million in South San Francisco adjacent to Highway 101. The seller was the former owner-user of the building.
Located at 100 Utah Avenue, the property is just north of San Francisco International Airport, and five miles south of the City of San Francisco. The property is within the Brisbane and South San Francisco industrial market, which totals approximately 17.8 million square feet with very little available product.
“This is a unique asset,” said Mike Murray, a partner with Lift. “There are very few blocks of industrial space over 100,000 square feet available on the Peninsula, we expect this project to achieve premium rents.”
Mark Melbye of Kidder Mathews brokered the sale of the property and will represent ownership to lease the asset, which is immediately available. “The supply of industrial space continues to shrink on the Peninsula as buildings are demolished for higher and better use. At the same time, we’re seeing increased demand with last-mile delivery and advanced manufacturing requirements. We expect to see a lot of activity on the asset,” said Melbye.
The San Francisco Bay Area industrial market remains one of the strongest in the nation. A dearth of new supply has led to record-setting land prices, rents, and property trades in core Bay Area submarkets. The South San Francisco market is one of the most supply-constrained areas within the entire Bay Area industrial market, having seen virtually no new industrial construction for the past 20 years, despite exceptional tenant demand for close‐in San Francisco distribution locations.
“We are pleased to partner with Lift on this opportunity,” said Erik Flynn, managing director with PCCP. “This asset is well positioned to serve the market due to the excellent location and building quality. We expect to receive a great deal of interest for single-tenant occupancy, due to the rarity of finding such a large block of space within the South San Francisco market.”