{"id":1004150985,"date":"2016-08-25T23:40:19","date_gmt":"2016-08-26T07:40:19","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004150985"},"modified":"2020-05-14T02:38:49","modified_gmt":"2020-05-14T10:38:49","slug":"mckesson-plans-sale-leaseback-of-san-francisco-hq","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/mckesson-plans-sale-leaseback-of-san-francisco-hq\/","title":{"rendered":"McKesson Plans Sale-Leaseback of San Francisco HQ"},"content":{"rendered":"<p>By Gail Kalinoski<\/p>\n<div id=\"attachment_1004151025\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/1post.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004151025\" data-attachment-id=\"1004151025\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/mckesson-plans-sale-leaseback-of-san-francisco-hq\/1post\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/1post.jpg\" data-orig-size=\"1341,941\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Ioana Neamt&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1472206588&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"1post\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/1post.jpg?w=1024\" class=\"wp-image-1004151025 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/1post.jpg\" alt=\"One Post St., San Francisco\" width=\"300\" height=\"211\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/1post.jpg 1341w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/1post.jpg?resize=300,211 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/1post.jpg?resize=768,539 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/08\/1post.jpg?resize=1024,719 1024w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004151025\" class=\"wp-caption-text\">One Post St., San Francisco<\/p><\/div>\n<p><strong>San Francisco<\/strong>\u2014<a href=\"https:\/\/www.us.jll.com\/united-states\/en-us\" rel=\"nofollow\" target=\"_blank\">JLL<\/a> is marketing One Post St. in San Francisco, the corporate headquarters of healthcare giant <a href=\"https:\/\/www.mckesson.com\/\" rel=\"nofollow\" target=\"_blank\">McKesson Corp.<\/a>, in what is expected to be a major sale-leaseback deal.<\/p>\n<p>Located at the corner of Post and Market streets adjacent to the Montgomery BART station in the city\u2019s Financial District, the 38-story <a href=\"https:\/\/www.commercialsearch.com\/news\/office\/\" target=\"_blank\">office building<\/a> was completed in 1969. McKesson had a 50 percent stake in the property when it was built and acquired the remaining 50 percent in 2012. It paid $90 million for the stake in 2012, according to data provided by <a href=\"https:\/\/www.yardimatrix.com\/\" rel=\"nofollow\" target=\"_blank\">Yardi Matrix<\/a>.<\/p>\n<p><em><a href=\"https:\/\/www.bizjournals.com\/sanfrancisco\/blog\/real-estate\/2016\/08\/mckesson-mck-sf-hq-office-tower-sale-jll.html\" rel=\"nofollow\" target=\"_blank\">The San Francisco Business Times<\/a><\/em> was the first to report the company was putting its headquarters up for sale and planning to lease back part of the building. Representatives for both McKesson and JLL confirmed the plan to <em><a href=\"https:\/\/www.commercialsearch.com\/news\/\" target=\"_blank\">Commercial Property Executive<\/a>.<\/em><\/p>\n<p>\u201cOne Post offers investors the extremely rare opportunity to acquire the headquarters of a Fortune 5 company, while embarking on a transformative repositioning of a landmark San Francisco office tower,\u201d Rob Hielscher, managing director in JLL\u2019s Capital Markets Group in San Francisco, told <em>CPE.<\/em><\/p>\n<p>McKesson, currently ranked 5<sup>th<\/sup> on the Fortune 500, is a healthcare services and information technology company and the largest pharmaceutical distributor in North America. By next year, the company expects to consolidate operations around San Francisco and have approximately 1,200 employees at One Post St. A company spokesperson said there are no other plans to lease additional space in the city and confirmed that one of the locations where employees would be moved from is 123 Mission St.<\/p>\n<p>The 488,000-square-foot building has rentable square footage of roughly 420,000 square feet. With rents more than $600 per square foot, the sale price could be around $275 million, significantly higher than the $180 million Yardi Matrix placed on the property when McKesson picked up the remaining stake for $90 million in 2012.<\/p>\n<p><em>The San Francisco Business Times<\/em> reported McKesson would be occupying approximately 200,000 square feet of the building once it is sold, leaving the rest available for the new owner to lease to more tenants in a value-add play.<\/p>\n<p>\u201cThis is an optimal time for McKesson to pursue the sale of One Post Street, as global investor and values for San Francisco office towers are at all-time highs,\u201d Hielscher said. \u201cThe combination of McKesson\u2019s long-term anchor tenancy and the ability to create value via strategic building improvements will be very desirable to a wide variety of investors.\u201d<\/p>\n<p>McKesson, which is involved in a company-wide program to improve its offices across the United States by following the WELL Building Standard, plans to invest in a two-year upgrade to its space at One Post St. The WELL Building Standard combines design and construction with evidence-based medical and scientific research to create an environment that supports health and wellness. Upgrades are expected to include increased natural light, open floor plans, more collaboration spaces and a variety of workspaces that will feature sit\/stand desks and flexibility for future growth. The company has already upgraded its Richmond, Va., location and plans to target Dallas and Scottsdale, Ariz., in addition to San Francisco.<\/p>\n<p><em>Image via Google Street View<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 38-story tower at One Post St. might fetch as much as $275 million.<\/p>\n","protected":false},"author":1068,"featured_media":1004151025,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21783,21742,21747,1609,21786,15],"tags":[],"class_list":["post-1004150985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-investment","category-latest","category-office","category-san-francisco","category-sustainability","category-west"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. 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