By Jon Peterson
Pasadena-based Alexandria Real Estate Equities has closed on the acquisition of the 66,692 square foot 260 Townsend Street office building in San Francisco, according to public documents. The purchase price was $66 million, or nearly $990 per square.
The seller of the property was Los Angeles-based The CIM Group. It was represented in the sale by Newmark Knight Frank. Both the buyer and seller did not response to phone calls seeking comment for this story. Newmark confirmed they were the broker on the sale, but declined to comment who from the firm represented sellers on the transaction.
CIM has owned the property for many years. It had paid $24 million for 260 Townsend in 2006, according to public records. At that time, the seller was Swinerton Builders, which continues to occupy space in the property to date. The asset was first developed in 1986, and it was extensively renovated since that time In 2004, it achieved a Gold LEED-ED certified building by the U.S. Green Building Council.
The asset is a seven-story building, and it is leased to several tenants. Along with Swinerton Builders, Battery Ventures also occupies space in the property. One of the amenities to the building is a 75-stall parking garage that is attached to the property. The building also has very high Walk Score. It is half a block away from the King Street Caltrain station, giving it a 100-point transit score. The closeness to amenities gives the property a 94-point walk score and a 93-point bike score.
The neighborhood has been in almost constant transition since CIM had owned the property, and a number of massive developments within the Central SoMa district are poised to keep that transformation relevant for decades to come.
CIM has also been in and out of ownership of several projects in the area. The company owns 340 Townsend, which is just down the street from this building. The company purchased it in December of 2016 for $38.5 million, or roughly $770 per square foot.
For its part, Alexandria has also been a very active player in real estate across the region for some time. Some of its earliest projects focused on life-science properties around Mission Bay in San Francisco, which have been very successful for the company. Since then, the property investor has explored with acquisitions outside of its San Francisco core and purchased assets on the Peninsula in San Carlos and in Silicon Valley within Stanford Research Park in Palo Alto. At the same time, Alexandria expanded its footprint in San Francisco, as well, partnering with Uber to develop its offices by the new Warriors Arena and with San Francisco-based developer TMG Partners on the 88 Bluxome development, where Pinterest has taken nearly half of the one million square foot development in Central SoMa.