Mack-Cali team shops SF-area complex

Real Estate Alert, May 5, 2004

A Mack-Call Realty partnership has just started marketing a mixed-use property near San Francisco.

The 470,000-square-foot Pacific Plaza, in Daly City, could command bids of roughly $140 million, or about $300/sf. At that price, the buyer's initial annual yield would be slightly more than 9%.

Pacific Plaza is located at 1901-2001 Junipero Serra Boulevard, alongside Interstate 280 and next to a Bay Area Rapid Transit station. The property, which was built in phases in 2001 and 2002, consists of a 369,000-sf office building, a 101,000-sf retail building and two garages with a total of 1,800 spaces.

The nine-story office building is 93% leased. Avid Technology has a 127,000sf lease through 2009, while Alcatel subsidiary Genesys is leasing 113,000 sf through 2013. Other tenants include San Francisco Slate University, U.S. Navy and the Office of Thrift Supervision. No leases expire until 2006. Asking rents average $30/sf.

The retail center is fully occupied, led by a 20-screen Century Theaters, which leases 78,000 sf through 2022.

Mack-Cali, a REIT based in Cranbury, N.J., owns the property in partnership with Summit Commercial Partners, an affiliate of Highridge Partners of El Segundo, Calif. They have given the listing to Secured Capital.