|
|
7/14/20
|
A fund sponsored by CBRE Global Investors has acquired 123 Townsend Street, a 137.6k sf office building in San Francisco’s SoMa neighborhood. While the actual sale price was not given out and there have been some higher numbers out there, an industry source we spoke to said the deal probably came in somewhere between $125 mil to $135 mil, although we’re not able to confirm that.
The building, which also has an address at 118 King St, was sold by Vermont-based Manchester Capital LLC, who acquired the asset back in 2003 for under $20 mil. Back in April of this year, it appeared that Alexandria Real Estate Equities was going to purchase the building for around $150 mil, but that deal fell through.
123 Townsend Street is a historic, six-story brick-and-timber building that was built in 1903 and underwent a full renovation in 2000, including significant seismic structural upgrades, a new roof, new systems and the addition of elevators and skylights. The low-rise property benefits from multiple stairwells and large, flexible floorplates. On-site amenities include a state-of-the-art fitness center, bike storage and a rooftop deck with panoramic views of the city.
“123 Townsend Street is listed with the Historic Preservation Office as one of the few buildings to survive the great San Francisco earthquake in 1906. Because of this, much of the property’s historic features remain intact, though now with significant upgrades that have modernized and safe-guarded the building against seismic activity,” said Kim Hourihan, Senior Managing Director and Portfolio Manager for CBRE Global Investors.
123 Townsend Street is surrounded by an abundance of restaurants, bars and entertainment options. The property benefits from multiple transit options nearby, including the CalTrain, which provides direct connectivity between San Francisco and Silicon Valley; the MUNI Metro Rail that provides convenient citywide access and links to the BART, which services San Francisco and the East Bay; and the MUNI Rapid Bus, providing direct access to eight different routes throughout the city.
“We believe that the SoMa neighborhood in San Francisco is well-positioned for long-term growth due to its superior accessibility,” said Gary Jaye, Senior Managing Director and Head of Commercial Acquisitions for CBRE Global Investors. “San Francisco is considered by many as the financial capital of the west coast. We believe the city benefits from strong-performing submarkets – thanks in part to new-economy tenants – and world-class education, healthcare and cultural institutions. 123 Townsend Street is ideally situation within the city, affording excellent walkability and easy access to the area’s major freeways, I-80 and I-280, which are both less than a half mile away.”
The property was previously ENERGY STAR rated, and the CBRE Global Investors team plans to pursue ENERGY STAR recertification and LEED certification. The acquisition is part of the fund’s broader strategy to invest in target office markets across the U.S.
|
|
 Return to the Archive page
|
|
|
|
|
Printer-friendly Version
Email an Associate
