Prado invests in supply-constrained
cities that are home to innovation industries and knowledge-centric markets.

Investment and Acquisition

We seek opportunities where we are uniquely suited to make a positive difference and where properties can be repositioned or developed into valuable, enduring assets. Our projects range from larger institutional level projects to focused infill neighborhood deals.

We invest for value

Over the years, we’ve honed our skills in recognizing character and potential and making the most of extraordinary properties in evolving neighborhoods.

We plan and hold for the longer term to maximize value

Throughout the acquisition process, we consider the capacity and trajectory for positive evolution. We strategize for quality and resilience in every stage from acquisition through management: it’s never too early to consider operating costs.

We take a patient, counter-cyclical approach

It isn’t about following the herd, it’s about looking around corners in order to be prepared for a wide variety of market conditions. This allows us to avoid over-paying, over-investing, and over-exposure during economic downturns.

We see things others don’t

With our deep relationships, we’re often the first to see properties before they go onto the market. With our collective creativity and extensive knowledge of neighborhoods and communities, sometimes we see potential where others can’t or won’t. We’re not looking for just one type of project—we’re looking at a set of conditions that we can maximize. The breadth of our portfolio includes everything from small infill development sites to institutional sized apartment buildings and retail.

We find ways to tackle issues others won’t

Some opportunities call for complicated financing structures that others shy away from. Others are more straightforward but have challenging aspects that defy typical solutions. We have the experience and track record to embrace both.

Case Studies

We are inspired by innovation industries and economies, and we invest in the life and work of the people who make the future possible.

Multifamily / Core Plus
Multifamily / Core Plus
Multifamily Portfolios
Transaction Highlights
Size: 23 properties (2 separate portfolios)
Use: Multifamily (w/ retail)
Neighborhood: San Francisco


Strategy
  • Two multifamily portfolios comprising 913 total units, the portfolios spanned 23 properties across 10 neighborhoods, representing an unprecedented opportunity to invest in a diverse cross-section of San Francisco multifamily properties
  • Prado and its partners were able to purchase two apartment portfolios off-market directly from special servicers in two separate transactions
Execution
  • Employed value-add strategies, including unit renovations and unit conversions, which increased cash flow and made the apartments more competitive with newer construction
  • Activated the ground floor retail spaces in many of the properties, creating additional amenities for residents
Results
  • Prado successfully recapitalized both portfolios with a university endowment in 2016
  • Prado ultimately sold portfolios in 2018
Neighborhood Retail /
Core Plus
Core Plus / Neighborhood Retail
Marina
Transaction Highlights
Size: 8 properties, 22,808 sq. ft.
Use: Retail
Neighborhood: Marina, SF
Strategy
  • 22,808 sq. ft. (eight properties)
  • Sourced off-market through a relationship with a retail leasing broker
  • Prado was able to purchase the prime eight-building portfolio well below market value (approx. 25-30%)
  • The portfolio had been owned by a family trust for 50+ years and the properties had been mismanaged
  • Existing rents were 35% below market at the time of acquisition
  • Multiple properties had redevelopment potential
Results
  • Prado successfully re-tenanted three of the retail spaces within the first year of ownership with high-quality and credit tenants
  • Prado secured approvals to redevelop one of the properties as a single-tenant retail building with a publicly-traded retail tenant
  • Prado signed contracts to sell two of the inferior properties at a profit and to lower the basis in the remaining properties
Office / Value Add
Office / Value Add
333 Valencia
Transaction Highlights
Size: 55,685 sq. ft.
Use: Office/Retail

Neighborhood: Mission District, SF

Acquisition: 2014

Capital Event: 2018

Status: On the market for sale
Strategy
  • Acquired in 2014, Prado Group’s vision was to completely redevelop the former light industrial building to a trophy boutique office asset located in San Francisco’s amenity-rich Mission District.
Execution
  • Our ownership group has invested $11.2 million in core and shell capex, and $2.8 million in tenant improvements to enhance the Property with a full seismic upgrade, a new PG&E electrical service, new mechanical, electrical, plumbing and sprinkler/life safety systems, new roof, 2 new elevators and exit stairs, new core and shell restrooms, new entry lobby and elevator lobbies, new bike room and site improvements.
  • We have constructed Class A tenant improvements on behalf of the City and County of San Francisco’s Department of Public Health on floors 2-4. The City and County of San Francisco’s tenant improvements will be certified Gold under the LEED for Commercial Interiors standard.
Results
  • Prado Group redeveloped an underutilized building into a class-A gem and refinanced the asset in 2018. As of now, 333 Valencia is one of very few boutique assets with long-term, investment grade tenancy in San Francisco.
  • Prado Group currently has the asset on the market for sale.
Grocer + Drug Anchor /
Value Add
Grocer/Drug Anchor / Value Add
1401 California
Transaction Highlights
Size: 30,000 sq. ft.
Use: Retail
Neighborhood: Nob Hill, SF
Strategy
  • Prado identified an underutilized site with a grocery store that was planning to vacate
  • Through an attorney relationship, Prado was able to purchase the site off-market
Execution
  • Acquired two separate interests from feuding family members
  • While the site allowed for a large mixed-use development, Prado felt that the re-lease of the building created the highest risk-adjusted return
  • Prado adaptively reused the building, which was renovated, subdivided, and re-tenanted with Trader Joe’s and CVS
  • Obtained Formula Retail Conditional Use approval within three months of initial filing
  • Updates included adding an elevator and stairs to improve vertical circulation from the lower parking area to the store and renovating the facade
Results
  • Prado achieved the highest grocery and drug store rents in the market for both Trader Joe’s and CVS
  • Prado was also able to reduce tenant control to allow for optionality of future development (max of 25 years)
  • Trader Joe’s was operational within 12 months of Cala Foods’ departure
  • Prado successfully refinanced the property in 2012 and returned all invested equity

Performance

Prado invests and develops in residential, retail, office, and mixed-use properties with a primary focus on creating vibrant infill properties—over 80 transactions in 17 years in excess of $1.38B.

Gross asset value.
Over 80 transactions

We invest in neighborhoods—acquiring, entitling, developing, and operating properties to create thriving communities and economies.

  • Cow Hollow
  • Hayes Valley
  • Laurel Heights
  • Lakeshore
  • Lower Nob Hill
  • Lower Pac Heights
  • Marina
  • Mission
  • Mission Bay
  • NOPA
  • Nob Hill
  • North Beach
  • Pacific Heights
  • Sunset
  • Tenderloin/Civic Center
  • Upper Market/Market/Dolores