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Columbia Pacific Advisors, a Seattle-based investor, picked up 939 Ellis St. in San Francisco, a 116,000-square-foot office building on that site that could be redeveloped into senior housing. p

Bay Area Air Quality Management District is the seller in the deal and plans to occupy the building through 2015. Terms of the deal were not disclosed, but industry sources estimated the price was near $23 million or close to $200 per square foot.

“We are excited about our purchase of 939 Ellis St. at a compelling basis in a neighborhood that continues to evolve and thrive as a true mixed-use district,” said Todd Seneker, managing director of Columbia Pacific Advisors. “This investment offers multiple market opportunities that we will evaluate, ranging from a strong office renovation opportunity to a change of use to senior housing, a segment that is underserved in downtown San Francisco.”

The property is near the intersection of Ellis and Van Ness Avenue, an area near Cathedral Hill where buyers and developers have been busy lately. California Pacific Medical Center is underway on a $2 billion hospital rebuiild nearby.

The Business Times reported earlier this week on the sale of the KRON TV building at 1001 Van Ness to housing developers. Condo developments from Oyster Development and Trumark Urban are also in the works a few blocks away.

The 939 Ellis deal is the second in San Francisco for Columbia Pacific Advisors, which bought 995 Market St. in a joint venture with Long Market Property Partners in April 2013. Columbia Pacific Advisors manages more than manages $850 million worth of assets in a variety of investments.

“The Van Ness corridor, as much as its changing, has never been a major office market,” said Mike Taquino, a broker with Newmark Knight Frank Cornish & Carey Commercial. But, now that the Mid-Market office market near the intersection of Van Ness and Market has low vacancy and residential development is booming, Columbia Pacific Advisors has options for 939 Ellis.

Long Market Property Partners will help manage and lease the 939 Ellis property as well as explore the possibility of turning into senior housing.

Jeff Moeller, Peter Conte, and Zac Monsees of Cassidy Turley represented Columbia Pacific Advisors was represented and will stay on to handle leasing. BAAQMD was represented by Tom Christian and Ric Russell of Cassidy Turley