HFF Closes Sale of Historic Art-Deco Building in San Francisco’s SoMa District

HFF announced that it has closed the sale of 1400 16th Street, a historic, 100,000-square-foot office and warehouse property in San Francisco’s South of Market district (SoMa).

HFF represented the seller, Jessica McClintock, Inc. in the transaction, while Leland Parachini served as seller’s legal counsel. The buyer was ASB Real Estate Investments along with SKS Partners and ProspectHill Group.

Originally developed in 1938, 1400 16th Street is an art-deco style, reinforced concrete building that was occupied for nearly 40 years by owner-user, Jessica McClintock, Inc. The property occupies a full city block at 1400-1450 16th Street bounded by 15th, 16th, Carolina and De Haro Streets. This location offers tenants easy access to Interstates 80 and 280, and US Highway 101 as well as access to several San Francisco Muni bus routes with connections to the Bay Area Rapid Transit (BART) and Caltrain commuter rail lines, and San Francisco’s ferry service.

The HFF investment sales team representing the seller was led by managing director Steven Golubchik, director John Simerlein and senior real estate analyst Josh DiSalle.

“The SoMa and Potrero Hill districts are home to one of the largest R&D, prototyping and manufacturing tenant clusters in the city. The opportunity to transform the property into one of the area’s most iconic adaptive re-use buildings coupled with the ability to acquire a whole city block in San Francisco led to strong interest from groups both locally and nationally,” Golubchik said.

“We are seeing strong leasing velocity in the area along with a surplus of demand, specifically within the Potrero Hill / Showplace Square neighborhoods and for PDR-type users, and are witnessing a substantial uptick in PDR rents.  Further, the property’s ideal location, and proximity to San Francisco’s most rapidly evolving neighborhoods with a mixture of housing, jobs, entertainment destinations, and transportation options – combined, provide a 24/7 live, work and play environment,” added Simerlein.

ASB Real Estate Investments (ASB), a division of ASB Capital Management, LLC, is a leading U.S. real estate investment management firm, managing over $4.9 billion (as of 3/31/14) in gross assets under management for over 250 institutional clients. Headquartered in Washington DC, ASB invests in major urban markets across the country, concentrating in office, multifamily, retail and industrial properties.  ASB manages the ASB Allegiance Real Estate Fund, its sole vehicle for core investing, as well as the ASB Meridian Real Estate Fund, a low-leverage opportunistic vehicle and a development separate account. For more information about the company please visit asbrealestate.com.

Founded in 1992, SKS is a San Francisco-based investor, developer and advisor of commercial real estate properties in the western United States. The firm has acquired, entitled, developed, and operated over 5 million square feet of office, mixed-use, medical office, life science, and multifamily projects. For more information please visit sksre.com.

ProspectHill Group is a private real estate investment company which invests alongside experienced operators like SKS, and is involved in all aspects of an investment’s acquisition and asset management. The principals of ProspectHill have significant Bay Area experience, having acquired approximately 18 million square feet of office, multifamily and lodging assets valued at $3.2 billion in nearly 50 transactions in the Bay Area. For more information please visit prospecthillgroup.com.

HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF).  HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing.  For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.

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