(EDITOR’S NOTE: According to sources with knowledge of the transaction detail, the transaction closed for $77,250,000 million, or around $857 per square foot.)
CBRE has announced the sale and financing for 200 Kansas Street, a 90,060-sq.-ft. production, distribution and repair (PDR) building located in San Francisco. Mike Taquino, Kyle Kovac, Russell Ingrum, Mandy Lee, and Giancarlo Sangiacomo with CBRE Capital Markets’ Institutional Properties group in San Francisco represented the seller, an entity sponsored by Ascent Real Estate Advisors, the principals of which are Dean Benjamin and John Porges. A joint venture between Presidio Bay Ventures and Kinship Capital purchased the property.
CBRE Capital Markets’ Debt & Structured Finance group, led by Mike Walker and Brad Zampa and including Megan Woodring and Taylor Shepard, arranged the five-year, non-recourse financing with full-term interest only payments priced at a competitive spread over 30-day LIBOR. The loan from a Los Angeles-based asset management company will finance the buyer’s acquisition of the property.
“Banks, debt funds and life companies all competed aggressively for this unique opportunity. Showplace Square is one of the most vibrant submarkets in all of San Francisco and some of the most well-regarded equity investors in the nation have been actively investing here, especially over thelast 24 months. We are not surprised to see the large, brand name debt providers chasing these opportunities and looking for exposure in this incredible area,” said Mike Walker, Senior Vice President at CBRE.
200 Kansas Street is fully leased to four diverse tenants. The two-story PDR building occupies over one and a half acres, nearly a whole city block, and is situated in close proximity to notable technology tenants such as Adobe and Samsara. San Francisco’s PDR market has evolved over the years to serve a highly technology-oriented industry that has trended towards advanced manufacturing and the development of cutting-edge digital products.
The property is located one mile from the Giants’ Oracle Park and the Chase Center, the Warriors’ new home and the largest concert venue in San Francisco. Currently, more than 5.7 million sq. ft. of office space is under construction or planned in the adjacent neighborhoods with more than 5,000 residential units also under construction, approved or planned in the SoMa District.
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 approximately 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.