Jamestown: Sale of San Francisco’s Pacific Place Has Strong Long-Term Income Drivers
- Jun 23, 2014
Jamestown, known for acquiring mixed-use and retail complexes, has disposed of an asset this time around, to the tune of $415 million.
The Atlanta-based national real estate investment firm has sold Pacific Place, a 430,000-square-foot office and retail property located at 4th and Market streets in downtown San Francisco. As reported by The Registry, J.P. Morgan bought the asset at 22 4th St. for $965 per square foot. The property was bought on behalf of the firm’s institutional investors, J.P. Morgan Asset Management, according to a J.P. Morgan spokesperson.
“Jamestown decided to sell Pacific Place because the property has strong long-term income drivers that are attractive to institutional investors,” Michael Phillips, chief operating officer for Jamestown told Commercial Property Executive.
Located at the center of the Union Square, South of Market and financial district neighborhoods, the LEED Gold-certified project is composed of three adjacent properties, including about 200 feet of Market Street retail storefront, 16 floors of office space and a five-floor, 198-key luxury hotel boutique.
The 202,000-square-foot office part of the property was entirely leased late last year to Intuit Inc., after a repositioning of the building by Jamestown and is the current home of Demandforce, a division of Intuit’s Small Business Division, according to the news release.
The retail part of the property totals 130,000 square feet and has a mixture of national tenants, according to The Registry. The tenants include Levi’s, Old Navy, The Container Store and the Palomar Hotel.
The property was held by the Jamestown Premier Property Fund, the company’s main core investment vehicle for institutional investors. Other West-Coast assets owned by the fund include San Francisco’s Ghirardelli Square, which Jamestown bought in September, and 799 Market, also in San Francisco, among others.
“We remain committed to the San Francisco Bay area as we are engaged in the community through our other local properties,” Phillips added in the news release.
Eastdil Secured represented Jamestown in the transaction.