San Francisco –July 10, 2014 – ASB Real Estate Investments announced today the acquisition of 1400 16th Street, a 103,000-square-foot office-warehouse in the ShowplaceSquare/Potrero Hill district of San Francisco. ASB made the acquisition on behalf of its Allegiance Real Estate Fund, a $3.5 billion open-end core investment vehicle, in joint venture with SKS Partners, LLC and ProspectHill Group. The partnership plans an extensive redevelopment to reposition the interconnected, three-building complex into highly attractive space for R&D, prototyping and manufacturing companies with 14-foot ceilings, open floor plates, exposed timber beams, skylights, an interior atrium,and a large roof deck. The Property was sold by Jessica McClintock, Inc., an iconic San Francisco based fashion designer and dress manufacturer, which has owned and occupied the building as its corporate headquarters for the last 40 years
Originally built in 1938, the property spans an entire city block bounded by 15th, 16th, Carolina and De Haro Streets, and is comprised of a two-story, Art Deco office building, which was later expanded into a two-story 30,000 square-foot office–warehouse, and a single-story 73,000 square-foot warehouse. Future tenants will have excellent access to public transportation — bus, light rail, BART and CalTrain — as well as immediate access to Interstate 280 and Highway 101.
David Quigley, CIO of ASB Real Estate Investments, said: “The property’s location is primed to take advantage of the local boom in demand for space that can accommodate the needs of modern R&D, prototyping and manufacturing space in a part of the city that has long been associated with those uses. It also sits adjacent to some of the most desirable residential areas in the city.”
Among industry-leading companies operating from adjacent SoMa and Mission Hill districts are Adobe, Advent, Airbnb, Cisco Systems, Dolby Laboratories, Fox Interactive, Google, SEGA, Twitter, and Zynga. The property is also within a half mile of the UCSF Mission Bay Research and Development campus, one of the nation’s leading biomedical research institutions, and the soon to be built Warriors arena.
ASB Real Estate Investments manages five other investments in San Francisco totaling 405,000 square feet: 200 Powell Street, a retail asset; the 795 Folsom office building; 135 Mississippi St., a creative office building; 989 Market Street, a recently-acquired office investment, and apartments at 333 Fremont St. An ASB land holding at 350 Bush/500 Pine was sold in April.
About ASB Real Estate Investments
ASB Real Estate Investments (ASB), a division of ASB Capital Management, LLC, is a leading U.S. real estate investment management firm, managing over $4.9 billion* in gross assets under management for over 250 institutional clients. Headquartered in Washington DC, ASB invests in major urban markets across the country, concentrating in office, multifamily, retail and industrial properties. ASB manages the ASB Allegiance Real Estate Fund, its sole vehicle for core investing, as well as the ASB Meridian Real Estate Fund, a low-leverage opportunistic vehicle, and a development separate account. For more information about the company, visit www.asbrealestate.com. * As of 3/31/2014.
Founded in 1992 and headquartered in San Francisco, SKS is an investor, developer and advisor of commercial real estate properties in the western United States. The firm has acquired, entitled, developed and operated over 5 million square feet of office, mixed-use, medical office, life science and multifamily projects. The firm’s excellent reputation and investment track record culminate from its strong operating capability, extensive network of relationships and its consistent ability to identify emerging demographic and market trends in advance of other market participants. Whether acting as investor or advisor, SKS performs with integrity, which has proven to be its greatest asset.
For more information about the company, visit www.sksre.com.
ProspectHill Group is a private real estate investment company which invests alongside experienced operators, and is actively involved in all aspects of the acquisition and asset management of its investments. The principals of ProspectHill have significant Bay Area experience, having acquired approximately 18 million square feet of office, multifamily and lodging assets valued at $3.2 billion in nearly 50 transactions in the Bay Area. For more information about the company, visit www.prospecthillgroup.com.