SAN FRANCISCO-Goodwill Industries of San Francisco has tapped Jones Lang LaSalle to sell its two-building, 94,000-sf headquarters here while it looks for larger, more efficient space. The 2.52-acre site at South VanNess Avenue and Mission Street is considered by many to be the largest and most prominent of all Downtown redevelopment sites.

JLL was scheduled to issue an offering memorandum today for the property. There will be no asking price. The bids could vary widely depending on whether the would-be buyers wish to acquire the site as-is or whether they would make the sale contingent upon city approval of its redevelopment plan. In addition, while the current height limit is 150 feet, a proposed rezone would increase the limit on some portions of the site to between 250 and 300 feet.Depending on the buyers’ willingness to wait for the increased height or proceed with something smaller, and whether it wants to build for sale residential, market rate apartments, office space or some combination thereof, the offers could range from $50 million to more than $75 million, one industry source tells A 50,000-sf redevelopment site with a much higher height limit located across the street from Goodwill’s headquarters was on the market for $45 million ($900 per sf) for some time but did not find any takers.

Goodwill Industries of San Francisco, San Mateo and Marin Counties have occupied the site since 1995. Its move there was prompted by the 1989 Loma Prieta earthquake, which destroyed its prior headquarters. One of the buildings, 1500 Mission, dates from the 1920s and totals 66,210 sf. The other, 1570-1580 Mission, was built in the 1990s and totals 27,798 sf. The 94,000-sf total breaks down to 13,888 sf of retail, 35,576 sf of offices and classrooms, 32,482 sf of warehouse and 12,051 sf of storage.

The older building has been surveyed at least seven times by various public and nonprofit historic surveys in the past and has never merited a rating as a landmark. Goodwill says it would like to retain an office or retail presence in any new development that might result from the sale. It also would like the new owner to be environmentally responsible when redeveloping the site, but says neither would be a stipulation of the sale.

If any new use concept for the site were to involve housing, the developer would have to comply with the City’s Inclusionary Housing Policy. The policy requires that 15% of the total units developed (or 20% if built offsite) be affordable to people with lower incomes.

Last year, the Goodwill site was the focus of the annual Cal/Stanford Real Estate Competition sponsored by the National Association of Industrial and Office Properties. Teams from the two schools spent months preparing a redevelopment plan for the site. Stanford’s winning proposal called for a 457-unit for-sale residential development on a portion of the property and a mixed-use building on the remainder that included, low-income housing, office space and street-level retail space.

“Both groups did a remarkable job; everyone was very impressed with the thoroughness and sophistication of their work,” says Ben Pollock, the JLL broker with the sales assignment for the property. “Having said that, in all probability we will see different ideas from developers. I won’t be surprised to see lots of different designs given such an unusually large site so well located in central San Francisco.”

Without saying how much new space it’s looking for, Goodwill says it would like to remain in San Francisco and in the Civic Center neighborhood if possible due to its access to public transit as well as to government and other partner offices. In lieu of that, Goodwill says it is seeking a place where it can contribute to neighborhood economic development (priority will be given to distressed neighborhoods) and be easily accessible to San Francisco residents who are experiencing significant barriers to employment.

Goodwill describes its current headquarters as obsolete and too small to accommodate the 300-plus individuals employed in this site in training, administration, and production. The company already leases additional space in a building nearby in order to accommodate its growing workforce. In addition to its expansion needs, Goodwill says it also feels strongly the need to optimize its assets and reduce any vulnerability associated with having the majority of its assets tied up in one building.

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