(EDITOR’S NOTE: The amount of the loan that was funded at the time of the acquisition was around $70 million, which represents 65 percent of the cost of the acquisition, according to sources familiar with the transaction. The additional $30 million is to cover the future CapEx projects, tenant improvements and seismic retrofits.)
SAN FRANCISCO, CA (May 21, 2018) – HFF announces the $109.8 million sale and the $103.61 million financing of a subdivided condominium interest in 1390 Market Street, a transit-oriented, 219,711-square-foot office building with ground-floor retail in San Francisco, California.
The HFF team represented the seller, Broadreach Capital Partners, and procured the buyer, Swift Real Estate Partners. Additionally, the HFF team arranged a floating-rate acquisition loan through Brookfield on behalf of the buyer.
1390 Market Street is located in San Francisco’s Mid-Market, which has become one of the most desirable neighborhoods for growing technology companies. This location along Market Street is just two blocks from the Civic Center BART/Muni station providing all major forms of public transit to the San Francisco International Airport, Oakland and the greater Bay Area. Originally built in 1967, 1390 Market Street was renovated in 2007 and features 218,791 square feet of office space and 920 square feet of ground-floor retail. The LEED Gold certified building is leased to tenants, including Twitter, Jones Clifford and several branch offices of the City of San Francisco. The property also includes apartments on the top floors of the building, which were not a part of the sale or financing.
“We are pleased with the acquisition of 1390 Market Street, and are excited to expand our presence in San Francisco,” said Tommy Christman, the asset manager of the acquisition. “We believe 1390 Market has the potential to be Mid-Market’s premiere multi-tenant destination appealing to a wide array of tenants, including those in government and tech.”
The HFF investment advisory team representing the seller included senior managing directors Michael Leggett and Gerry Rohm, senior directors David Dokko and Ben Bullock, director Thomas Foley and analyst Austin White.
The HFF debt placement team representing the borrower that arranged the Brookfield financing consisted of senior director Jordan Angel and analyst Bercut Smith.
Holliday GP Corp. (“HFF”) is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.
About Broadreach Capital Partners
Established in 2002, Broadreach Capital Partners is a real estate investment firm that focuses on western U.S. commercial and hotel and resort properties. The firm invests in a wide variety of real estate assets across a number of geographies. Their primary objective is the creation of value through the application of experience gained over decades of involvement in all phases of the real estate business, including the acquisition, development, redevelopment, management, financing, entitlement and disposition of real property. The firm combines this expertise with significant financial resources to produce what, over time, have been industry-leading results. Learn more at broadreachcp.com.
About Swift Real Estate Partners
Headquartered in San Francisco, Swift Real Estate Partners (“Swift”) is a vertically integrated real estate investment firm, which seeks to generate attractive risk-adjusted returns for its investors. Swift acquires and repositions office and industrial assets in select West Coast markets, identifying unique opportunities and executing well-defined business plans while providing real-time, day-to-day oversight for each investment. Since inception, Swift has owned and operated real estate valued in excess of $3 billion across more than eight million square feet. Swift’s professionals bring experience encompassing all aspects of real estate investment and management, including acquisition, financing, leasing, disposition, construction management, property management and creative and marketing services. Swift was founded in 2010 by Christopher Peatross.
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.