Bridgeton Holdings Acquires 747 Front Street in San Francisco for $68.4MM

747 Front Street, San Francisco, CBRE, Kyle Kovac, Mike Taquino, Russell Ingrum, Mandy Lee, Giancarlo Sangiacomo, Polidev, Bridgeton Holdings, Atit Jariwala, Minted, Funding Circle
Image Courtesy of CBRE

(EDITOR’S NOTE: According to public records, the property sold for $68,385,000, or just around $800 per square foot.)

San Francisco, Calif. – September 18, 2019 CBRE has announced the sale and $55 million financing of 747 Front Street, a four-story, 85,500-sq.-ft. Class A office building in San Francisco’s Jackson Square district.

Kyle Kovac, Mike Taquino, Russell Ingrum, Mandy Lee, and Giancarlo Sangiacomo of CBRE’s San Francisco office represented the seller, Polidev. The property was acquired by Bridgeton Holdings. 

This marks Bridgeton’s sixth investment in San Francisco. “We are proud of our portfolio assets and continue to believe in innovation cities that have strong economic and demographic trends” said Atit Jariwala, Bridgeton’s CEO.  

Bridgeton earlier this year exited 945 Bryant and owns several other creative office buildings in the city. 

“747 Front presented a rare opportunity to own a highly visible, efficient and creative building in the most supply constraint submarket in the city. Jackson Square has a lot of history and its boutique character has attracted some of the largest VC firms, transforming it into the new Sand Hill Road,” said Bridgeton’s CIO, Akash Sharma.

Mike Walker, Brad Zampa and Megan Woodring of CBRE’s San Francisco office arranged the acquisition financing on behalf of Bridgeton Holdings. The $54.9 million loan provides five-year, non-recourse, full-term interest only, floating-rate acquisition financing at a competitive spread priced over 30-day LIBOR with a publicly traded commercial real estate finance company.

The property is currently 100% leased to a diverse tenant base, including Minted and Funding Circle. Of the leases that expire within the first few years, rents are approximately 40% below market, representing a significant mark to market opportunity. Ownership plans to make recognizable upgrades to the building in the near term, including exterior, lobby and elevator upgrades.  

Built in 1909, 747 Front Street has undergone substantial creative improvements in recent years, including new open floor plans and expansive windows that showcase the 12’ to 15’ clear heights and plentiful natural light. The building also features a private roof deck with unimpeded, 360-degree views of the San Francisco Bay. 

Adjacent to the San Francisco Bay, Jackson Square is among the most desirable neighborhoods in San Francisco, boasting many of the city’s best restaurants and lounges and well-maintained parks. The neighborhood offers convenient access too Muni, BART, ferry service and the city’s main highways US 101, Interstate 80 and Interstate 280. 

With a vacancy rate of 3.1%, Jackson Square has a consistent history of strong occupancy. The market has gained significant momentum with leases being signed as high as $90-$100/SF for large blocks of space.

About Bridgeton Holdings LLC

Established in 2009 as a partner for investors seeking value-add real estate investments, Bridgeton is a full-service real estate firm with in-depth expertise in investment management, development, property management and hotel management. Bridgeton has significant strength in value-add strategies and proven investment discipline across all property types, including office, hospitality and residential. Bridgeton’s investments are focused primarily in New York, San Francisco and Boston. Bridgeton is headquartered in New York, with an office in San Francisco.

Over the past 10 years, Bridgeton has been actively involved in over 60 properties.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.

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