939 Ellis @ Van Ness, which is comprised of approximately 92,000 square feet of office space along with 53 structured parking stalls, has hit the market for sale.
The sellers of the asset are Columbia Pacific Advisors. They are selling the property through the San Francisco office of Newmark Cornish & Carey by its capital markets division. The lead person on the sale is Kyle Kovac, executive managing director, along with Michael Taquino, Dan Cressman and Mandy Lee. Newmark declined to comment when contacted for this story.
According to the marketing materials, the property is currently being renovated in an effort to be brought up to the highest level of office standards. The current owners have invested more than $10 million in capital in this effort, and improvements include extensive renovations of the exterior, common areas and building systems. 939 Ellis will be delivered to a buyer with base building improvements complete and ready for tenant improvements upon a sale being completed.
There are several potential uses for the property going forward. The main one would be as a creative office building, which would capitalize on the influx of brand name technology tenants in the nearby Mid-Market sub-market. This could be for multiple tenants or it could be acquired by an owner-user to use the property for a headquarters or major regional office location.
Another possibility is for medical office space. 939 Ellis is located less than three blocks from the California Pacific Medical Center, where the hospital is investing more than $2 billion to build its new campus at Van Ness and Geary. This facility is expected to be completed in early 2019. As of quarter-to-date 2016, medical office vacancy stands at an all-time low of 2.2 percent.
939 Ellis does have a significant amount of parking on site totaling 53 spaces in a ground level and lower level operation. The parking structure consists of four separate garages, three of which can be made private due to separate entrances. There is an opportunity to increase the amount of car parking by placing in a valet system.