San Francisco Developer Proposes Mixed-Use Neighborhood on Former USGS Campus in Menlo Park

A San Francisco developer has filed plans to turn a former federal office campus in Menlo Park into a mixed-use neighborhood, the latest effort to find new uses for underused Bay Area office property.

Presidio Bay submitted its proposal to Menlo Park's Planning Division last week. It covers the 17.7-acre site at 345 Middlefield Rd., where the 412,663-square-foot complex once housed the U.S. Geological Survey for more than 60 years. The agency left roughly a decade ago after one arm of the federal government began raising the rent on another. When the property came to market last year, it was 98% vacant. Presidio Bay bought it for $137 million and closed on the purchase in August.

Under the plan, 16 of the site's 17 structures would be demolished. In their place would go three apartment buildings with a combined 670 units, 740,000 square feet of office space, 40,000 square feet of retail and a 15,000-square-foot child-care facility. The project would also include three acres of public open space. A two-story building called The Pavilion, planned for the corner of the public lawn, would host community events and programmed activities.

The one structure to be kept, Building 15, would be remodeled as office space. Presidio Bay also intends to preserve 46 of the roughly 124 heritage trees on the property, remove non-native landscaping and plant 78 new trees. Tenants of the commercial and residential buildings would have dedicated off-street, covered garage parking.

To reach the density it wants, the developer plans to set aside 15% of the housing units for households earning between 50% and 120% of the area's median income.

Cyrus Sanandaji, Presidio Bay's managing principal, called the project "a once-in-a-generation opportunity." He said the name is still undecided but will likely nod to the area's redwood trees and state parks. On retail, he said the aim is a mix of small food and beverage businesses serving the immediate neighborhood rather than drawing regional traffic. As it did at its nearby Springline development, the firm will offer high-end tenant improvements, flexible rent structures and favorable lease terms to help entrepreneurs "overcome barriers to entry."

Springline, a 6.4-acre property the firm built and operates, opened in 2023 and is fully leased. Presidio Bay recruited San Francisco brands Andytown Coffee, Burma Love and Che Fico to open their first locations outside the city there.

Since buying the site, the company has held community meetings and met with neighboring property owners, businesses and elected officials about traffic, environmental and infrastructure concerns. John Meany and Tucker Marshall, who co-lead the project for the firm, said the goal is "to create a complete neighborhood" that reflects the city's priorities and "ultimately becomes a place the Menlo Park community is proud to call its own."

The proposal reflects a wider shift in development since the pandemic cut demand for offices. Projects have moved toward mixed-use destinations that depend less on any single building type and are therefore more resilient to economic shocks. Sanandaji founded Presidio Bay in 2012 and has focused on luxury office investments while trading and developing residential properties. In San Francisco, the firm is converting a vacant office building at 88 Spear St. into a destination with an underground spa and a rooftop restaurant run by the operators of Holbrook House.