Grocer/Drug Anchor / Value Add
1401 California
Transaction Highlights
Size: 30,000 sq. ft.
Use: Retail
Neighborhood: Nob Hill, SF
  • 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
  • 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
  • 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