2741 16th Street is a 100% leased, newly renovated PDR (R&D) zoned building with a large (25,000+ sf) surface parking lot that can be redeveloped in an in-fill location in San Francisco. The property was purchased in Q4-2020 for $22.2M and provides strong going-in cash flow at 7.3% cap (10.3% levered cash on cash year 1) with an in-place lease through August 2027.
Ridge will maximize the value of the property by splitting the parcel into two and running two simultaneous entitlement processes to 1) Build a new ±75,000 sf PDR building on the existing parking lot area, and 2) Add two additional floors to the existing building for another ±15,000 sf.