604 Mission in San Francisco Sells for $29MM

SAN FRANCISCO, CA, December 18, 2018 – HFF announces the $29 million sale of 604 Mission Street, a 26,796-square-foot creative office building in San Francisco, California. The sale represented a new high-water mark for boutique south financial office properties at $1,080 PSF.

“We’ve broken the $1,000+ PSF barrier on multiple HFF-led transactions this year with 604 Mission, 500 Pine and 270 Brannan,” Thomas Foley a director at HFF said. “Investor sentiment for high-quality, irreplaceable real estate in the best market in the country continues to strengthen. Supply constraints and demand drivers will continue to drive rent growth and we feel there is still plenty of room to run.”

The HFF team represented the seller, 604 Costa LLC, an affiliate of Market Street Real Estate Partners, LLC, and procured the buyer, Toy Real Estate Investment Company, who was in a 1031 exchange trade. The buyer assumed a CMBS loan that HFF had recently secured for the seller. HFF assisted the buyer through the loan assumption process.

“CMBS assumptions are complicated and while at times a loan assumption requirement can limit buyers, HFF’s expertise in working with loan servicers on loan assumptions allows buyers to take advantage of existing debt for accretive loans, especially in a rising rate environment,” said senior director Jordan Angel. “Our job is not to just procure the best buyer, but to ensure they are able to get the financing needed to close.”

Originally built in 1905, 604 Mission Street has been renovated into a modern creative office space while maintaining its historic look and feel with exposed brick walls, high ceilings and floorplates averaging 2,622 square feet. The 10-story, fully leased property features a penthouse unit and ground floor retail, which is occupied by Atlas Tap Room and Archive Bar & Kitchen. 604 Mission has a transit-oriented location in the heart of San Francisco’s highly sought-after Transbay District just one block from the Montgomery St. BART/Muni Station and adjacent to Transbay Terminal. Additionally, the property has access to an abundance of amenities within a two-block radius, giving the property an exceptional Walk Score® of 96.

“Market Street has done an incredible job with 604 Mission through their best in class creative office improvements,” senior director David Dokko said. “They were a great seller and we truly appreciate the opportunity to work with talented, passionate real estate professionals like them.”

The HFF investment advisory team representing the seller included senior directors Ben Bullock, David Dokko and Jordan Angel, director Thomas Foley and real estate analyst Kenny Bruzzone. The buyer was represented by Christina Chung of Coldwell Banker in the transaction.

Holliday GP Corp. (“HFF”) is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

About Market Street Real Estate Partners, LLC
Market Street Real Estate Partners (MSREP) is a fully integrated investment firm whose principals have over 50 collective years of both private and institutional experience acquiring, repositioning and managing commercial real estate assets throughout the United States. MSREP has consistently executed its proven strategy of identifying underutilized commercial properties via predominantly “off-market” acquisitions for the purpose of repositioning to generate favorable risk-adjusted returns for investors. Since inception in 2012 and having closed approximately $600 million in transactions since, the company seeks to establish strategic, long-term relationships with private and institutional partners to pursue value-add commercial real estate acquisitions in primary and select secondary markets throughout the United States.

About HFF
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

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