The Adam Grant Building at 114 Sansome Street, one of San Francisco’s rare historic creative office buildings located in the heart of the financial district is up for sale. The building, which has been owned by Credit Suisse since October 2013, has been brought to market by JLL Capital Markets team in San Francisco led by Rob Hielscher and Michel Seifer. The owners are seeking roughly $155 million for the 14-story asset, or close to $811 per square foot, according to industry sources with knowledge of the sale.
The 191,000 square foot property is currently 92 percent leased. Hotwire, a company owned by Expedia, recently expanded its presence in the building from two floors to six, now occupying over 40 percent of the building. The lease, which was recently signed, is in the mid $70s and runs through 2024, according to same sources. The building serves as the company’s headquarters location.
Other tenants in the building include Walgreens, which occupies the ground floor retail space, thredUP, an online thrift shop that buys and sells high-quality secondhand clothes, and Duncan/Channon, an ad agency. None of the other tenants in the building occupy more than one floor.
Credit Suisse is selling this asset as a one-off opportunity and not part of a larger portfolio. The Zurich-based investment and asset manager has owned the building since October 2013, when it purchased the asset for $105 million, or $560 per square foot. At the time, the asset was approximately 86 percent occupied. The seller at the time was Marin-based Seagate Properties, which paid $67 million for the property in 2007.
Industry sources peg the Adam Grant Building as one of the rare, historic creative office space opportunities for the next buyer. It was one of the first historic buildings in San Francisco to realize the potential of recreating itself as a creative office space targeting the new tech firms entering the market, and it started with major building systems and common areas updates in 2000. Since then, the owners have updated floors as they became available, and today the property is seen as a core asset. In 2012, the Adam Grant Building received LEED Gold certification from the USGBC as well as a 93 Energy Star rating.
Even with a recent expansion of Hotwire, industry sources confirmed that the building’s rent roll is roughy 24 percent below market rates, and the opportunity for the next owner would be to bring those up to current levels.
114 Sansome is on the corner of Bush and Sansome streets and less than a block from Market Street. It is approximately 2 blocks from two BART stations on Market Street, the Montgomery Street station and the Embarcadero station.