2765 16th St San Francisco, CA 94103-4215

Property Details for 2765 16th St

Year built

1929

Construction

TILT-UP CONCRETE

Lot size

0.48 lot acres

Property size

17,170 SF

Zone code

PDR1G

Property type

Industrial properties

APN

3572 -020A

APU

3572020A

Description

This exceptional Class A medical office building presents a compelling net lease investment opportunity. Located in San Francisco's vibrant Mission District at 2765 16th Street, 94110, this 12,046 square foot property boasts a 100% occupancy rate, anchored by a long-term lease with DaVita, a leading global dialysis provider. The lease, commencing June 30, 2022, and expiring September 29, 2037, offers a substantial remaining term of 12.9 years, with three, 5-year renewal options. The property underwent a complete renovation in 2022, including a full seismic and structural upgrade, a new roof (with a 20-year transferable warranty), new high-spec floor slab, updated utilities and fire/life/safety systems, and new building facades and storefront systems. The lease includes attractive rent bumps of 10% every five years, ensuring consistent income growth. DaVita's corporate guarantee provides significant tenant security, backed by their strong financial standing. The building sits on a 0.42-acre lot in a high-traffic corridor (16th Street: 24,000 vehicles per day), offering excellent visibility and accessibility. Its proximity to the UCSF Mission Bay campus further enhances its desirability. The asking price is $10,407,744, representing a compelling cap rate of 6.25% and a price per square foot of $1,028.57. The property's location within a thriving, densely populated area with high average household incomes and proximity to major employers and retail amenities contributes to its strong investment potential. The building is an airspace condominium interest (owned in fee, and subject to a REA for limited common areas). The Net Operating Income (NOI) is $650,484.