By Jon Peterson
Los Angeles-based CIM Group has placed on the market for sale the 113,280 square foot 274 Brannan Street office building in San Francisco. The anticipated price point on the sale could be in the mid $90 million range, as stated by sources tracking the sale of office buildings in San Francisco. At that level, the pricing would reach around $795 per square foot.
The list agent on the sale is the San Francisco Bay Area Capital Markets team for JLL. This includes Rob Hielscher, Michel Seifer and Erik Hanson. JLL declined to comment when contacted for this story.
CIM is selling the property, which it had owned since 2016, as a single asset. The company paid $71 million, or around $626 per square foot, at the time. This investment was done for one of CIM’s investment funds as a value-add investment. 274 Brannan is not sold along with the portfolio of assets the real estate investor has on the market in Oakland.
274 Brannan will likely be viewed as a core plus asset for any new investor that acquires it. The asset, which is now 94.1 percent occupied, has two large tenants that lease up up 83 percent of the property. The largest of those is Verizon Communications. It occupies 51,214 square feet and could be in the property until October 2024.
The second tenant in the building is a global payments company Adyen, which uses the building as its U.S. headquarters. Its lease is for 43,075 square feet and will not expire until January 2026.
The property is also surrounded by a number of growing technology companies. Splunk is in the building next door. GitHub is headquartered across the street, and just down the street it he headquarters of Okta.
274 Brannan is a six-story office building that has one additional lower level floor. There is a parking operation that can house 39 vehicles. The property is also one of a few telecommunications and data center facilities in San Francisco. Besides Verizon, the building also has AT&T and Mpower Communications as tenants.
274 Brannan is located within the SoMa sub-market in San Francisco. The direct vacancy is this region is 3.7 percent. The asking rent for A and B quality space is around $71 per square foot.