By Jon Peterson
The 85,423 square foot, Class A creative office building located in the San Francisco Jackson Square neighborhood at 747 Front Street is now on the market for sale. The planned sales price is projected to be at least $75 million, or roughly $877 per square foot if it reaches that pricing, as stated by sources familiar with the sale of the property.
Turkey-based Polidev Investments is the seller of this property, which has been brought to the market at the same time as another asset owned by Polidev, the building located at 351 California Street. These two assets, although marketed separately, could be sold to either one investor or have a different buyer for each property.
747 Front Street is brought to the market by the San Francisco office of CBRE. The team involved in marketing the asset for sale includes Kyle Kovac, Michael Taquino, Russell Ingrum and Giancarlo Sangiacomo. CBRE declined to comment when contacted for this story.
Polidev has owned the property for a little over six years. The real estate investment firm had paid $22.8 million for the property in December 2012, according to public records. The property was originally built in 1909 and was renovated in 2013 and 2014.
The new owner of the asset will have a value creation opportunity on the asset. The lease on the entire fourth floor of the building will expire in 2021. The rental rate on this space in the property is roughly 33 percent below market, according to some estimates, and the property has no vacancies at this time. Two tenants occupying the entire building are Minted and Funding Circle. The weighted average leases term in the building is 5.5 years.
747 Front Street is located in the Jackson Square sub-market in San Francisco. The current vacancy in this part of the city is 3.1 percent. The market has gained significant momentum with leases being signed as high as $70 NNN for large blocks of space.