Acquired on an off-market basis through local relationships, 160 Country Club Drive was a vacant and dilapidated medical office building that had recently been through a City-initiated general plan update changing the site use to multifamily. Although conventional wisdom assigns the highest and best use to multifamily, this particular location was different.

Through local broker relationships we learned the Fresenius Medical Care was expanding its Bay Area dialysis center footprint and this S. San Francisco location was ideal. Even though the new General Plan no longer allowed medical office here, we were able to maintain the same use with new construction by maintaining the same square footage and overall footprint as the previous user.

During the property due diligence period we were able to achieve a signed term sheet with FMC for a long term build to suit NNN lease before we had to close on the property, significantly mitigating downside risk. The property was presold during construction to a 1031 buyer and closed a short time after achieving the certificate of occupancy and rent commencement.