Presidio Bay Buys Mission Offices for Almost $28 Million

Presidio Bay Ventures is growing its San Francisco portfolio with the purchase of an office building in the Mission District.

The locally based investor spent roughly $27.5 million for the four-story, 55,000-square-foot office building at 333 Valencia Street, the San Francisco Business Times reported. Presidio Bay acquired the property through a deed-in-lieu of foreclosure, according to San Francisco Assessor-Recorder documents cited by the Business Times.

The deal works out to $500 per square foot, making it one of the higher-priced office sales to close in San Francisco in recent years. The price could be attributed to the San Francisco Department of Public Health’s long-term lease in the building, the Business Times reported, citing local market sources. The city occupies 80 percent of the building and still has about a decade left on its lease, according to JLL, which brokered 333 Valencia’s sale.

Presidio Bay plans to “activate [333 Valencia’s] ground floor to meet near-term neighborhood needs while contributing to the long-term revitalization of San Francisco’s commercial corridors,” founder K. Cyrus Sanandaji said, per the Business Journal.

Lenders originated a $32.8 million loan for a joint venture between Prado Group, Oakland-based Murray Hill Partners and New York-based Angelo Gordon, the building’s previous owners, in 2022. The group began marketing the building for sale the year prior with a $60 million pricing guidance, the Registry reported, though its final list price is unclear. The ownership group invested more than $20 million revamp 333 Valencia, while the city of San Francisco invested an additional $6.4 million to upgrade its space in the building.

Presidio Bay didn’t shy away from downtown San Francisco in the post-pandemic years when many investors were initially wary of acquiring assets in the city. In August 2023, the firm bought 60 Spear Street for $41 million, or about $260 per square foot, which helped reset office building values in the city and laid the groundwork for its ongoing comeback, according to the Business Times. Last spring, Presidio Bay partnered with Artemis Real Estate Partners to acquire the 121-unit Olume Apartments at 1401 Mission Street.

— Chris Malone Méndez