Clarion Partners Buys $336M San Francisco Office

Jack Resnick & Sons sold the nearly 430,000-square-foot Class A office asset, which last changed hands as part of a 1.9 million-square-foot portfolio transaction in 2006.
215 Fremont Street

Clarion Partners has acquired 215 Fremont Street, a 427,393-square-foot Class A office mid-rise in San Francisco, for $335.5 million, according to Yardi Matrix. The seller, Jack Resnick & Sons, had purchased the asset in April 2006 as part of a $301 million, 1.9 million-square-foot office portfolio transaction involving six buildings across five states. Lincoln Property Co. is managing the property on behalf of the new owner.

Located in the city’s South Financial District submarket, the eight-story building occupies a 1.2-acre parcel a short walk from the Embarcadero BART station. Nearly 16 million square feet of Class A office space and upwards of 5,100 multifamily units fall within a quarter mile of the property, per Yardi Matrix data.

Charles Schwab formerly occupied the entire mid-rise, though the firm subleased 311,907 square feet to Fitbit in 2016, according to the San Francisco Chronicle. In addition to the office space, the building features 21,703 square feet of retail space presently occupied by a number of restaurants, a barber shop and a yoga studio. The asset was last significantly renovated in 2000, with the previous owner, EQ Office, also expanding the structure’s floor space by 24,950 square feet.

Clarion has made a number of high-value office acquisitions in recent years. In December, the firm paid $282 million for a 350,000-square-foot high-rise in Midtown Manhattan.

Image courtesy of Yardi Matrix