SF Office Building Changes Hands for $350M
- Dec 22, 2016
San Francisco—American Realty Advisors has acquired Foundry Square III, a Class A trophy office asset located in the heart of San Francisco’s Transbay District, from a development joint venture between Tishman Speyer and institutional investors advised by J.P. Morgan Asset Management, for $350 million.
The building is currently 100 percent leased to an impressive roster of tenants, including IBM, NASDAQ, Perkins Coie, Neustar and Silicon Valley Bank.
“Acquiring a recently completed high-quality asset with long-term leases in-place to creditworthy tenants at First and Howard streets is the ultimate core investment,” Drew Hess, American Realty Advisors’ senior director, investment group, said in a prepared release. “We see San Francisco continuing to lead global innovation with this location as the epicenter.”
Located one block from San Francisco’s visionary $4.5 billion Transbay Transit Center, the LEED Gold-certified Foundry Square III was originally constructed in 2014 and consists of a single 10-story, 291,093-square-foot office building that includes ground floor retail space.
The property features state-of-the-art building systems, floor to ceiling glass, and abundant building amenities including an open air sky deck, large efficient floor plates and a two-story lobby with a unique living wall.
“This acquisition gives us a significant position in one of the strongest office markets in the country adding to an existing San Francisco office portfolio that includes 153 Townsend in SOMA,” Austin Maddux, American Realty Advisors’ assistant portfolio manager, said. “Foundry Square III brings stability of income and potential future upside in an urban setting that is poised for long-term value appreciation. This acquisition represents the type of high-quality assets our firm continues to seek and we are pleased to add this exceptional property to our portfolio.”
The building is located at the intersection of the South Financial and SOMA submarkets and is surrounded by premier technology, financial, legal and consumer goods companies. It’s also in immediate proximity to a number of public transit options and neighborhood amenities.
The seller was represented by Jeffrey Weber and Stephen Van Dusen of Eastdil Secured.