By Meghan Hall
Brick-and-mortar retail has had its fair share of challenges, but that hasn’t stopped a major brand from acquiring property in San Francisco’s main retail district. Public records show that in a deal that closed on December 20th, fashion brand Chanel has acquired 340 Post St. for $63 million, or about $3,537 per square foot.
340 Post rises three stories and totals 17,810 square feet. The seller of the property was a limited liability company affiliated with Los Angeles-based Stockdale Capital Partners. The firm originally acquired the building in October of 2019 for $48.5 million, or just over $2,723 per square foot.
Originally constructed in 1923, the building is currently occupied by Williams-Sonoma, who renovated the building in 2003. The asset sits at the North end of Union Square, a major shopping corridor. The famed hub is also home to Macy’s, Crate & Barrel, Hermes and others. Westfield San Francisco, a shopping mall, is also just a few blocks away.
Retail trends continue to fluctuate but are steadying as businesses and residents try to find a new normal post-COVID-19. Year-over-year in San Francisco, vacancy has continued to rise, reaching 5.2 percent by the end of the fourth quarter of 2021, according to a recent report by Kidder Mathews. However, unemployment continues to trend downward, and rental rates have risen, providing some promise for landlords, tenants and investors. Average asking rents have risen to $49.74, up from $40.71 a year ago.
Investors have also taken note. Just up the street, Lincoln Property Company purchased 384 Post Street for $156 million, or about $1,396 per square foot. Also in Union Square, Harsch Investment Properties paid $11.75 million, or $928 per square foot, for 414-432 Sutter St. The deals are indicative of much-needed movement in a market that has been struggling to keep pace with other booming sectors such as industrial and multifamily.
