San Francisco Girls Chorus Unlocks Long-Term Stability with Strategic Lease-Option
OVERVIEW
- 42,000 RSF, Six-Story Building
- Lease-Option leading to Building Purchase
For more information regarding this case study, please contact:
DAVID KLEIN
Executive Vice President | Managing Principal
O (415) 828-2188
dklein@lee-associates.com
The Client
The San Francisco Girls Chorus (SFGC) is a nationally recognized arts organization dedicated to advancing choral music education and performance for young women. With hundreds of singers from schools across the Bay Area, the Chorus offers comprehensive training programs and features acclaimed performance ensembles known for their artistry and innovation.
The Challenge
SFGC had outgrown its longtime headquarters, a converted church building that no longer met the needs of its expanding programs. The property required costly seismic upgrades, and many performances were being held off-site - creating operational inefficiencies and increasing expenses. Facing limited capital and a competitive real estate market, SFGC needed a creative facility solution that provided flexibility, financial sustainability, and a clear path to ownership.
Our Approach
Our team was engaged by SFGC’s real estate subcommittee to identify and secure the organization’s next home.
- Comprehensive Needs Assessment: Partnered with SFGC leadership, staff, and stakeholders to define facility requirements for classrooms, performance spaces, administrative offices, and support areas.
- Market Education: Guided decision-makers through San Francisco’s real estate landscape, reviewing comparable properties and financial structures to build a shared understanding of costs and opportunities.
- Strategic Financial Planning: Collaborated with fundraising and finance teams to align property search parameters with budget forecasts and donor capacity.
- Creative Deal Structuring: Identified and negotiated multiple lease-purchase opportunities - none initially available as such - crafting a structure that balanced occupancy needs, fundraising timelines, and long-term control.
The Outcome
SFGC secured a lease-option for a 42,000 SF, six-story property in San Francisco’s Civic Center/Van Ness arts corridor - an ideal location with flexibility to grow.
- Immediate Benefits: Occupied 20,000 RSF under a cost-effective lease while maintaining expansion rights to additional floors.
- Financial Flexibility: The option provided time to raise capital while generating rental income from existing tenants to offset costs.
- Long-Term Ownership: Through disciplined fundraising and strategic execution, SFGC successfully transitioned from tenant to owner, establishing a permanent home - now known as the Kanbar Center - and ensuring stability for generations of singers to come.
This transaction exemplifies how a creative lease-option strategy can turn limited resources into long-term ownership and mission-driven impact.