Original breaking article from The Registry HERE.
NEW YORK – Clarion Partners, a leading real estate investment manager, announced today that it has acquired a 4-story, 243,233 square foot, Class-A, brick and timber office building in the South of Market (SOMA) submarket of San Francisco for $148 million.
Located at 475 Brannan Street, the property, which is 100% leased to eight tenants, was fully renovated in 2000 and is now considered one of the top “creative” buildings in the city’s office market. LEED Gold certified, it features high-speed fiber optic access, abundant power and a 6,000 square foot landscaped courtyard.
“San Francisco offers one of the most attractive environments in the U.S. for technology and creative companies,” said Richard Pink, Managing Director at Clarion Partners. “This property is ideally positioned to serve that market.”
The San Francisco Bay area, one of the top Tier 1 office markets in the U.S., has experienced a powerful recovery in the technology industry over the past several years, with both start-ups and major corporations expanding in the region. As a result, SOMA currently enjoys a vacancy rate of just 4.6 percent, with rapidly escalating rents. According to Clarion Partners, the submarket is supply constrained with significant barriers to entry, which should result in further tightening of the vacancy rate and continued strong rent growth over the next several years.
“The tech rebound here has been among the strongest in the country and is driving a demand for office space that we expect will continue to outpace supply for some time to come,” Pink noted.
In addition to its updated infrastructure and large floor plates, 475 Brannan is sought by technology and creative-oriented companies because it is close to restaurants, hotels, and public transportation, and also offers convenient access to Interstates 80 and 280 and to Highway 101. The SOMA market has strong momentum and 475 Brannan is positioned to greatly benefit from the surge in demand.
The seller is a fund advised by Prudential Real Estate Investors and the sale broker is HFF.
About Clarion Partners LLC
Clarion Partners has been a leading U.S. real estate investment manager for 30 years. Headquartered in New York, the firm has offices in major markets throughout the U.S. as well as a presence in Mexico and Brazil. With more than $24 billion in total assets under management, for over 200 institutional investors both domestic and international, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum.