|
|
11/06/19
|
A joint venture between Urban Land Development and Urban Land Capital has acquired 150 Post Street, a 177.4k sf office and retail building in San Francisco’s Union Square neighborhood, in a deal reported to be worth $94 mil, or about $530/sf. The property was sold by a joint venture of Madison Capital and an institutional real estate advisor, who purchased the asset in August 2017. The building was previously owned by a real estate investment trust for approximately 20 years.
“Downtown San Francisco continues to be a high-growth market with strong demand drivers and high barriers to entry,” said Jon Mayeda, CEO of Urban Land Development. “Through immediate renovations to the property, transforming the office space to a high-end creative office, we will create a more open, and thus desirable, workspace for companies seeking flexibility. With the nearby retail and restaurants in the Union Square neighborhood, the 150 Post property is in a prime submarket that is undersupplied and will enjoy improved access upon the completion of the Central Subway.”
Located in one of the world’s premier destination urban retail districts, just one block from the North Financial District and one-and-one-half blocks from the Montgomery Street BART, the building consists of six floors of office space over ground-floor retail, including Shreve & Co. Jewelers. The building was built in 1908 and structurally renovated in 2003. ULD will embark on a transformative repositioning of the building interior by uncovering the 14 to 15-foot concrete slab-to-slab ceiling heights, reconfiguring suites to occupy half or full floors of up to 14k sf, and creating an open office floor plan.
Although the area is traditionally known for high street retail, which comprises 25% of the building, the upper floor offices represent a value-add opportunity with a steady lease rollover of 40% of the building in the next three years, which is key to ULD’s strategy. Further bolstering 150 Post’s desirability is the anticipated completion of the Central Subway in 2021; the new light railway will extend its service to Union Square, providing another point of public transportation to the area.
Kazuko Morgan of Cushman & Wakefield was involved in brokering the transaction.
|
|
 Return to the Archive page
|
|
|
|
|
Printer-friendly Version
Email an Associate
