Harvest Properties and Kinship Capital Sell The Pioneer Building in San Francisco for $17.5MM

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The Pioneer Bldg_San Francisco real estate Harvest Properties Kinship Capital The Registry

(EDITOR’S NOTE: According to public documents, the building sold for $17,500,000, or $471 per square foot, in a transaction that closed on January 21, 2014.)

Full Service Bay Area Real Estate Firm and Chicago-based Equity Partner Prove Mission District has Evolved to Become a Desirable San Francisco Office Market

Emeryville, Calif. (January 30, 2014) – Harvest Properties, a full service commercial real estate investment, development and management firm based in Emeryville, in partnership with Kinship Capital, a long- duration real estate investment firm, today announced the sale of their recently repositioned asset, 3180 18th Street in San Francisco, California to New York based Bridgeton Holdings for an undisclosed sum. Harvest currently manages the building and will continue to do so for the new owners.

Acquired by Harvest Properties and Kinship Capital in an off-market transaction in February of 2012, the asset, known as The Pioneer Building, is a 37,104 square foot historic “jewel box” office building located in the heart of the vibrant Mission District, San Francisco’s latest hotbed for technology companies. Since acquisition, Harvest and Kinship Capital completed a full state-of-the-art renovation enhancing the building’s original charm and successfully lured top tier technology start-up, Stripe, out of the South of Market area (SOMA) helping make the Mission District a burgeoning commercial real estate scene. A high profile online payment company currently working on a deal with Twitter to allow users to purchase products directly from the site, Stripe recently announced securing approximately $80 million in Series C funding from premier venture capital firms.

Harvest and Kinship Capital adeptly repositioned the 1902, Italianate style three-story wood frame structure in just 18 months and ultimately released it at considerably higher rates. The building, which was seismically upgraded and listed on the National Register of Historic Places in 1987, received over $5 million in landlord and tenant funded capital improvements during Harvest and Kinship’s Capital’s ownership converting it into highly marketable creative space while retaining the integrity of the original architecture. This is the second historic San Francisco office building Harvest counts among its success stories. The value-add developer and partner Cigna sold 115 Sansome Street ahead of plan in April of 2013 after giving it a dramatic and lucrative rebirth.

“We are proud to have enticed Stripe away from SOMA and excited about what this deal means to the San Francisco commercial real estate market” said John Winther, Founder and Managing Partner of Harvest Properties, “The Mission District is now a viable option for technology companies.”

Nick Thomson, Director of Real Estate at Kinship Capital commented, “Kinship’s flexible investment horizon and willingness to pursue projects in emerging submarkets and strategies led us into the Mission District with Harvest. We are thrilled with the outcome and are eager to pursue more projects in the Mission and greater Bay Area, with ample equity capital available to invest in 2014.” Kinship owns two other large commercial properties in the San Francisco Bay Area and is pursuing additional investments in the area.

Investment brokers involved in the transaction include David Terzolo, Josh Peterson and Charlie Withers of CBRE.

About Harvest Properties
Founded in 2002, Harvest Properties is a full service commercial real estate investment firm specializing in acquiring, developing, managing and financing commercial property, primarily through joint venture investments in Northern California. Harvest Properties strives to generate attractive returns for its financial partners and provide creative real estate solutions and outstanding service. Harvest Properties’ portfolio comprises approximately nine million square feet of office, industrial, R&D and retail properties in the San Francisco Bay Area. For more information, please visit www.harvestproperties.net.

About Kinship Capital
Kinship Capital draws on decades of experience at the highest levels of real estate investment, development, leasing, and operation. The company manages direct real estate investments for a Chicago-based family that has owned and operated a variety of businesses for more than 100 years. Kinship Capital provides its investors with superior risk-adjusted returns by identifying, acquiring, and adding value to high-quality commercial real estate assets in premier U.S. markets. The company offers significant advantages: a long investment horizon, substantial financial strength, access to preferred financing vehicles, and a team with rapid decision making and due diligence capabilities. For more information, please visit www.kinshipcapital.com.

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