INDUSTRIAL – 100% NNN LEASED TO UNITED STATES DEPT. AGRICULTURE (USDA) – STRONG TENANT

INDUSTRIAL NEWS

560 Eccles Ave – USDA Trophy Flex Asset

South San Francisco, CA | 21,552 SF | $50,000,000 | 4.79% Cap Rate

Investment Highlights

• Institutional-Quality Construction (2019) – Modern Class A single-tenant flex/R&D facility
• Trophy Asset in Irreplaceable Location – Core South San Francisco, one of the largest biotech hubs in the world
• Strong Credit Tenant – U.S. Department of Agriculture (AA+ rated by S&P) with long-term occupancy stability
• Attractive Lease Economics – Current NOI of ±$2.39M with 15% rent increase in 2029, followed by annual escalations
• Market Anchors – Surrounded by 250+ biotech companies and ±12M SF of biotech space in the “Birthplace of Biotechnology”
• Exceptional Parking & Access – 3.01/1,000 SF parking ratio, 4 dock-high loading doors, and 1 grade-level door on ±3.65 acres

Industrial Summary

Marcus & Millichap’s Trammell and DiMesio Clark Team is proud to present 560 Eccles Avenue, a 21,552-square-foot trophy flex R&D building in the heart of South San Francisco’s thriving biotech corridor. Constructed in 2019, this Class A property is fully leased to the United States Department of Agriculture (USDA), an AA+ credit-rated federal tenant with an extremely low risk of default.

At a purchase price of $50,000,000 ($2,319.97/SF), the offering delivers investors a 4.79% going-in cap rate with stable government-backed cash flow. The current net operating income of ±$2.395 million will further benefit from a 15% contractual rent increase in May 2029, followed by annual escalations, ensuring long-term income growth and inflation protection.

Market Strength – South San Francisco

Known globally as the “Birthplace of Biotechnology”, South San Francisco boasts over 250 biotech companies and 12 million square feet of biotech and life sciences space. Giants such as Genentech, Amgen, and Verily anchor the market, driving demand for institutional-quality flex and research facilities.

The San Francisco MSA ranks as the 4th largest metro economy in the U.S. ($549B GDP), supported by unmatched venture capital inflows, top-tier universities, and a skilled workforce. With limited land availability and strong long-term tenant demand, properties like 560 Eccles Ave are exceedingly rare to acquire.

Industrial Property Facts

• Price: $50,000,000
• Cap Rate: 4.79%
• NOI: ±$2,395,073 (with escalations)
• Building Size: 21,552 SF
• Lot Size: 3.65 Acres
• Year Built: 2019
• Building Class: A
• Property Type: Flex (R&D / Research)
• Stories: 1
• Loading: 4 dock-high doors, 1 grade-level door
• Parking Ratio: 3.01/1,000 SF
• Tenancy: Single – U.S. Department of Agriculture (AA+ rated)
• Zoning: MH00M2

Investment Thesis

560 Eccles Avenue offers investors a rare chance to acquire a federally-backed, AA+ credit, single-tenant flex/R&D facility in the most coveted biotech submarket in the United States. With irreplaceable real estate, strong lease economics, and government creditworthiness, this asset presents a defensive investment with significant long-term upside.

Links

South San Francisco Economic Development Dept
Argossy International Properties