Chanel Spends $63MM to Acquire Building in San Francisco’s Union Square

Chanel, 340 Post, San Francisco, Union Square, Stockdale Capital Partners, Kidder Mathews, Lincoln Property Company, Harsch Investment Properties

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.

West Coast Commercial Real Estate News