By Jon Peterson
The 10,918 square foot historic retail asset in San Francisco located at 233 Grant Avenue is on the market for sale. The pricing for this property could come in at $15 million, or roughly $1,374 per square foot, according to sources familiar with the sale of the asset.
The property is now owned by family trust based in San Mateo, as stated in public documents. The listing agent on the sale is the San Francisco office of CBRE. The two people involved in the sale are Michael Taquino and Kyle Kovac, both executive vice presidents. CBRE declined to comment when contacted for this story.
The property is currently viewed as a value-add asset, and it is now 65 percent occupied. The ground floor of the building is leased to Marlowe, a women’s clothing boutique. This retail tenant has a lease that expires in January 2020. The other retail tenant in the building is Nina McLemore. There are two floors in the building that are vacant.
The expectation is that there will be three types of buyers interested in buying the asset, according to sources familiar with the property. These would be investors that have niche focus of investing in high-street retail properties. But, the asset could also attract high net-worth individuals as well as 1031 Exchange buyers.
233 Grant was first constructed in 1907 and was renovated in 2002. The asset has six floors plus one lower level space.
The property is located in the Union Square retail sub-market. It stands one block from the new Apple store located at 300 Post Street. This tenant had spent $30 million to renovate the building that was formerly occupied by Levi’s. Union Square remains a very tight retail market with a vacancy of 4.6 percent through the third quarter of this year. The retail vacancy in the sub market has remained below 5 percent in the last six years.
233 Grant is near two major public transportation venues. One is that it’s two blocks from the Montgomery Street BART Station. It is also the same distance away from the Union Square Central Subway Station now under construction that is expected to open in 2019.