JLL Capital Markets facilitates the sale of the fully leased creative office asset
(EDITOR’S NOTE: The sale of the asset closed at $52 million, or around $1,160 per square foot, according to sources who track sales of commercial properties in San Francisco. The sale of 1098 Harrison is the third time it has sold since 2013. Downtown Properties bought the property for $11.5 million in 2013, and Embarcadero Capital paid $25 million for the asset in 2017. Hearst closed on the purchase of 1098 Harrison as a 1031 Exchange. The company had been the seller of the land at 5th and Harrison to Tishman Speyer. This development and investment firm has plans to develop the site into a 750,000 square foot office project that is fully entitled.)
JLL Capital Markets announced today that it has facilitated the sale of 1098 Harrison Street, a 44,794-square-foot creative office asset in the heart of San Francisco’s tech-driven SOMA District.
JLL facilitated the transaction between the buyer, Hearst, and seller, Embarcadero Capital Partners, in the all-cash, off-market transaction that was structured and completed during COVID.
Originally built in 1924, 1098 Harrison Street received a complete base building renovation over the last 10 years and is regarded as a state-of-the-art creative office space with top-of-the-line amenities, including an all-hands stadium seating area and a rooftop deck. The two-story building is fully leased into 2029 to Plaid, Inc. The property’s central location in Downtown San Francisco provides proximity to premier tenancy, numerous mass transit options providing connectivity throughout the Bay Area and an abundance of retail, entertainment, dining and cultural amenities located in San Francisco’s Union Square, Mid-Market and South/North Financial District neighborhoods.
The JLL Capital Markets team representing Hearst was led by Senior Managing Director Gerry Rohm (CA Lic. #01385740) and Senior Director Erik Hanson.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Jones Lang LaSalle Americas, Inc. (“JLL”) is a real estate broker licensed with the California Department of Real Estate, license #01223413.
About Embarcadero Capital Partners
Embarcadero Capital Partners is a private real estate investment, management, and development firm based on the San Francisco Peninsula. We focus on West Coast markets where innovation and collaboration drive demand for creative workplace environments. To learn more, please visit: embarcaderocapitalpartners.com.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.