Sitting on a gold mine, Goodwill looks to sell large Mid-Market property
Goodwill Industries is getting ready to cash in on the Mid-Market revival.
The non-profit is preparing to sell its South of Market San Francisco headquarters, a 2.3-acre development site at South Van Ness Avenue and Mission streets that is well-positioned to benefit from the rapid revival of the neighborhood.
In a statement, Goodwill Industries of San Francisco, San Mateo and Marin Counties said the property would be put on the market in early 2014. Goodwill said that growth in job training and placement services, donations, and other business lines, have “outstripped the capacity of the current Mission Street location and present a challenge to future growth. The social enterprise will seek alternate site(s) for all of its current Mission Street functions, ideally within the city of San Francisco.”
“Our steady growth as a social enterprise and the innovation path being outlined in our strategic plan mandate that we seek new space. A potential sale of our Mission Street property would open up tremendous possibilities for us to serve more local people in need, place more people in local jobs, and help preserve the economic diversity and family stability in our region,” said SFGoodwill President and CEO Maureen Sedonaen.
The property, at 1500 and 1570-1580 Mission St., could accommodate a 500,000 square-foot, two-building development — possibly as many as 600 housing units. It would likely sell for between $50 million and $60 million. The first building, 1500 Mission, dates from the 1920s and is 86,970 square feet. The other, 1570-1580 Mission St., was built in the 1990s and totals 28,890 square feet.
The property is in the Van Ness and Market Downtown Residential Special Use District, which allows for heights up to 400 feet. However, this particular site has been zoned to allow for 320 feet mid-block along South Van Ness and 11th Street, 250 feet on the corner of South Van Ness and Mission and the majority of the Mission Street frontage zoned for no more than 85 feet. Tony Crossley of Colliers International, who will list the property, declined to comment because his team is just starting to put together a detailed analysis of the property and its potential.
This is not the first time Goodwill has put the property up for sale. In 2007, Jones Lang LaSalle listed the property and developer David Choo put it in contract. The deal fell apart when the market crashed and Choo ended up losing his deposit because the deal had gone non-refundable. At the time then Goodwill President and CEO Deborah Alvarez-Rodriguez said the nonprofit has outgrown the Mid-Market space.
SFGoodwill currently operates job training and placement services, training classrooms, a 30,000-square foot warehouse and donations processing facility, a donations drop-off location, a retail store, an eCommerce business, and offices for the social enterprise.
The nonprofit, which has been in San Francisco for nearly 100 years, will report income of over $40 million in 2013, which it reinvests in services and operations. In the coming 12 months over 500 local people in need will get jobs through SFGoodwill, and another 5,000 will be readied to rejoin the job market.
San Francisco Business Times