A San Francisco developer has closed on a deal to buy a 315,000-square-foot building Mission Bay that once served as the headquarters for Old Navy.
DivcoWest, based in The East Cut, closed April 20 after paying $356 million, or $1,130 per square foot, for the 6-story building at 550 Terry A. Francois Blvd., the San Francisco Business Times reported. The pending deal was announced in March.
The seller was the Gap, which bought the glass-covered office building in 2019 for $342.5 million.
Gap had marketed it for sale or lease since moving the Old Navy office to its main Gap headquarters and another building on the Embarcadero.
Both Gap and DivcoWest declined to comment to the San Francisco Business Times on the deal.
DivcoWest plans to convert the six-story property for life science or biotech companies because of its quality and location in Mission Bay. The San Francisco neighborhood, home to a cluster of medical and biotech companies, last year reported a 0.1 percent vacancy rate for lab space.
With space becoming harder to find in Mission Bay, life sciences companies and developers are looking beyond the neighborhood’s boundaries.. The surge in interest has prompted city officials to begin working to clarify rules about what life science uses can go where in those neighborhoods.
DivcoWest, founded in 1993, has offices in Boston, Los Angeles, Menlo Park, New York and Washington, D.C.
The company, with $16.2 billion in assets under management, has acquired 58.5 million square feet of commercial space since its inception, mostly in the U.S, according to its website. Its real estate portfolio includes properties in the office, R&D, lab, industrial, retail and multifamily spaces, including 180 Townsend and 199 Fremont in San Francisco.
In January, the real estate investment firm paid $165 million for offices in South San Francisco with plans to convert them into life sciences labs.
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DivcoWest to buy former Old Navy HQ in SF’s Mission Bay from Gap
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