Grosvenor Nabs Boutique Office Asset in San Fran
- Jul 12, 2016
By Keith Loria, Contributing Editor
San Francisco—Grosvenor has acquired 394 Pacific Ave., a 50,220-square-foot brick-and-timber office building in San Francisco, from PMI Properties. Financial details of the transaction have not been disclosed.
Originally built back in 1907, the building has undergone substantial renovations, including a seismic retrofit in 1981.
“394 Pacific Avenue has the right mix of current income and value-add opportunities to explore,” Peter Staver, Grosvenor Americas senior investment manager, told Commercial Property Executive. “The building itself features high ceilings, original brick walls and efficient floor plates that are in strong demand from a wide range of office users. We intend to enhance these features to create a boutique office building within Jackson Square.”
The five-story office building is located at the corner of Pacific Avenue and Sansome Street in the heart of Jackson Square, one of San Francisco’s classic boutique office neighborhoods. The area is centrally located between North Beach, Chinatown and the Financial District, just a short walk from the North Financial District and several blocks from the Central Subway’s Chinatown extension, which will provide future connectivity to BART, Caltrain and SoMa.
The acquisition will complement Grosvenor’s portfolio of heritage office and retail buildings in Union Square at 251, 185 and 180 Post St. The property is also located just one block from Grosvenor’s 240 Pacific Ave. mixed-use development, which recently received unanimous Planning Commission approval for the development of 39 boutique residences designed to fit within the historic aesthetic of Jackson Square.
“This building fits well into Grosvenor’s existing portfolio of historic office buildings, largely concentrated in Jackson Square,” Staver said. “We are committed to preserving and enhancing the existing architecture and style that is so desirable to today’s tenants. It is an integral part of our ‘living cities’ philosophy.”
Grosvenor recently completed a similar renovation of its six-story building at 185 Post on Union Square, including upgraded building systems and a new window wall façade that artfully preserved the original brick exterior. That property received an Excellence in Architecture Honor Award from the San Francisco chapter of the America Institute of Architects.
“Grosvenor is very familiar with the Jackson Square submarket, partly due to its 240 Pacific Avenue condominium development just a block away that recently received unanimous planning committee approval,” Staver said. “Jackson Square has a concentration of attractive brick-and-timber buildings in a quiet setting that is also home to a resurgent retail and restaurant scene.”
Grosvenor was represented by Seth Siegel from Cushman & Wakefield in the transaction.