SamTrans Board Plans New Headquarters at Millbrae Station

Plans to develop a new office for SamTrans have moved forward, authorizing the acquisition of a mixed-use office-retail building located at the Gateway at Millbrae Station. The project proposal includes the setup of a building that will serve as the new San Mateo County Transit District (SamTrans) headquarters.

Earlier this week, the San Mateo County Transit District (SamTrans) Board of Directors approved the acquisition of site that will serve as the new headquarters. The project moves forward; with SamTrans soon acquiring an approximately 180,000-square-foot building that offers 157,000 square feet of office space and 23,000 square feet of retail space at present. The building is located at the Gateway at Millbrae Station, next to a transit center serving SamTrans, Caltrain and BART.

SamTrans will soon acquire the building through a lease-to-purchase agreement, with an estimated cost of $126 million. A SamTrans press release stated that the building is one of several in a transit-oriented development located on property owned by BART. The project is proposed to have a 99-year ground lease with BART. The site developer will pay for and complete all tenant improvements prior to move-in. The expected time frame is 12-15 months.

This project is a transit-oriented development that perfectly combines the SamTrans’ mission and space needs with the desires of employees to be adjacent to transit and amenities.

Gateway at Millbrae Station is one of the largest intermodal stations on the west coast and was developed by Republic Urban Properties in conjunction with The Core Companies. The development features a new transit-oriented community that offers market rate, veteran and affordable housing, modern offices and walkable retail, dining, services, a hotel and ample outdoor space. The property is adjacent to the Millbrae BART and Caltrain Station, which is also served by SamTrans routes ECR and 292.

SamTrans intends to retain ownership of its existing headquarters site located at 1250 San Carlos Avenue in San Carlos and will work with the city of San Carlos to identify goals and objectives for the redevelopment of the site. The current HQ building, an old facility built to 1970s seismic standards, is in an advanced state of disrepair and not designed for the modern workplace. The cost to bring the building up to modern standards greatly exceeds the value of the building.

A new HQ building will complement the rebuilding of the agency’s main building at the North Base Bus Yard in South San Francisco, which will provide a modern and comfortable home base for the agency’s operators and dispatch. Combined, these two projects provide the critical infrastructure needed now and into the future to house the agency’s workforce to deliver the necessary services for patrons. SamTrans validated that this lease to purchase agreement is at a below-market rate through both an appraisal and an independent third-party review of the deal terms. SamTrans has a AAA rating from S&P which enables it to issue municipal bonds at a favorable interest rate. If SamTrans ultimately chooses to purchase the building it will be supported by a bond. This building also provides options for revenue generation to help offset expenses from both retail and office rental space.

The San Mateo County Transit District operates 71 routes and two on-demand service areas. Funded in part by a half-cent sales tax, the district also provides administrative support for Caltrain and the San Mateo County Transportation Authority. SamTrans has provided bus service to San Mateo County customers since 1976.

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