SAN FRANCISCO, CA – HFF announced today that it has closed the sale of Potrero Business Center, a three-building, 135,000-square-foot office and industrial/flex business park in San Francisco, California.
HFF marketed the property on behalf of Morrison Street Capital, LLC. SF Industrial 1, LLC, which was advised by Zurich Alternative Asset Management, LLC (“ZAAM”), purchased the property free and clear of existing debt.
The property is located on Cesar Chavez Street between Interstate 280 and Highway 101, adjacent to Mission Bay and in close proximity to the 22nd Street Caltrain station. Situated on 4.57 acres, the property is 94 percent leased to a wide spectrum of tenants.
The HFF investment sales team representing the seller was led by managing director Steven Golubchik and director John Simerlein.
The ZAAM team representing the buyer was led by managing director Sean Bannon and director Jesse Faneuil.
“San Francisco represents one of the highest barriers-to-entry markets in the country, with industrial and flex space being particularly scarce,” commented Golubchik.
Founded in 2002, Morrison Street Capital, LLC places investment capital on behalf of the Morrison Street series of private equity funds. As a buyer of commercial real estate, the firm invests with precision and a hands-on management approach. As a secondary lender providing preferred equity, B notes, bridge loans and mezzanine debt, the firm possesses extensive knowledge of local real estate markets throughout the western United States and has a commitment to integrity, flexibility and ingenuity.
Zurich Alternative Asset Management, LLC is the alternative investment advisor to Zurich North America and (“Zurich”) its affiliates, responsible for the group’s hedge fund, private equity and US real estate investments. Dating back to 1997, Zurich, advised by ZAAM and predecessor entities, acquired more than $2 billion of assets directly with a focus on high quality commercial properties with high grade tenancy. ZAAM currently manages approximately $2.5 billion of commercial real estate exposure in the Unites States for its various affiliated balance sheets.
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.