41,000 SQFT Andreessen Horowitz Leased 180 Townsend in San Francisco Hits the Market

By Vladimir Bosanac

Selling a property can at certain times be much easier than acquiring one, and if you have a star tenant that is one of the most well-known venture capital firms in the world, that makes those prospects even easier.

San Francisco-based DivcoWest has placed on the market one of its properties in its hometown, and one that is the headquarters to none other than Andreessen Horowitz. The 41,000 square foot property is located at 180 Townsend, in the city’s SoMa neighborhood, and this deal would be able to bring some of the top investors to the negotiating table. Properties leased on a long-term basis with credit tenants have been moving swiftly during the last couple of years, and this one could likely move at breakneck speed.

Several sources confirmed the property was on the market, and industry reports have pegged the value as high as $75 million, or just around $1,830 per square foot. This is not an official asking price, however, according to Real Estate Alert, a commercial real estate newsletter, the buyer’s initial yield would reach 4.5 percent. 

Andreessen Horowitz occupies the entire property and moved there in 2019, according to a report from the Wall Street Journal. The firm has a lease in the three-story property that expires in 2031.

DivcoWest acquired the property in January of 2018 for $28,250,000, or just under $690 per square foot, according to public documents and earlier reporting by The Registry. The owners then invested another $20 million in upgrades to the building, and Andreessen Horowitz poured an additional $17 million in property improvements. 

The property is marketed by CBRE.

West Coast Commercial Real Estate News