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9/23/19
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Bridgeton Holdings has acquired 747 Front Street, a four-story, 85.5k sf Class A office building in San Francisco’s Jackson Square district. The purchase was financed with a $55 mil loan.
The property is currently 100% leased to a diverse tenant base, including Minted and Funding Circle. Of the leases that expire within the first few years, rents are approximately 40% below market, representing a significant mark to market opportunity. Ownership plans to make recognizable upgrades to the building in the near term, including exterior, lobby and elevator upgrades.
Built in 1909, 747 Front Street has undergone substantial creative improvements in recent years, including new open floor plans and expansive windows that showcase the 12’ to 15’ clear heights and plentiful natural light. The building also features a private roof deck with unimpeded, 360-degree views of the San Francisco Bay.
Kyle Kovac, Mike Taquino, Russell Ingrum, Mandy Lee, and Giancarlo Sangiacomo of CBRE’s San Francisco office represented the seller, Polidev. CBRE’s Mike Walker, Brad Zampa and Megan Woodring arranged the acquisition financing. The five-year, non-recourse, full-term interest-only, floating-rate loan is priced at 30-day LIBOR and funded through a publicly traded commercial real estate finance company.
This marks Bridgeton’s sixth investment in San Francisco. Bridgeton earlier this year exited 945 Bryant and owns several other creative office buildings in the city.
Adjacent to the San Francisco Bay, Jackson Square is among the most desirable neighborhoods in San Francisco, boasting many of the city’s best restaurants and lounges and well-maintained parks. The neighborhood offers convenient access too Muni, BART, ferry service and the city’s main highways US 101, Interstate 80 and Interstate 280.
With a vacancy rate of 3.1%, Jackson Square has a consistent history of strong occupancy. The market has gained significant momentum with leases being signed as high as $90-$100/sf/yr for large blocks of space.
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