Intercontinental and Harvest Properties Acquire 400 Montgomery in San Francisco for $77.5MM

Nuveen Real Estate, Oakland, Harvest Properties, San Francisco, JLL, TH Real Estate, New York City, North Financial District

(EDITOR’S NOTE: According to public records, the property sold for $77.5 million, or just around $905 per square foot. The guidance pricing on the sale was $75 million. The seller, Nuveen, had purchased the property in 2016 for $49.78 million.)

San Francisco, CA (August 14, 2019) – Intercontinental Real Estate Corporation and Harvest Properties announced today the acquisition and recapitalization of 400 Montgomery, an historic 85,580-square-foot office building in San Francisco’s Financial District.  

With the acquisition of 400 Montgomery, Intercontinental continues to grow its San Francisco Bay Area portfolio, which includes 12 assets totaling approximately 2.3 million square feet of office and industrial space and 1,400 multifamily units. This is the second joint venture with Harvest, which together in 2016 acquired 60 South Market, a 234,000-square-foot Class A office tower in Downtown San Jose, CA.   

400 Montgomery is located at the corner of California and Montgomery Streets in San Francisco’s North Financial District, a submarket that has a proven appeal to the millennial workforce driving many of the region’s most dynamic and innovative companies, according to Intercontinental’s Senior Director of Acquisitions Jessica Levin. 

“The Financial District’s immediate access to San Francisco’s best amenities and public transportation has created an attractive 24/7, live, work play urban environment,” she said. 

“The North Financial District has been a major beneficiary of San Francisco’s growing innovation-based economy,” added Intercontinental Director of Acquisitions Allen Logue. “Recent commitments from large tech firms continue to validate the North Financial District as a target location for San Francisco’s fastest growing companies, and we believe that 400 Montgomery is well positioned to benefit from that robust demand.” 

Harvest Properties acquired the building in 2016 in a joint venture with global investment manager Nuveen, which exits the investment.  Harvest will continue as operating partner in the new joint venture with Intercontinental, according to Harvest Properties Partner Griff King.

“After successfully improving the historically rich asset while preserving the character of the building to meet tenants’ current demands, Harvest Properties looks forward to staying involved and continuing the success of the project,” said King.

Over the past three years, the building constructed in 1901, has benefited from a multi-million-dollar capital improvement program that included upgraded building systems and infrastructure, a new lobby, refreshed common areas and restrooms, as well as a  complete façade restoration to preserve the richness and character of the historic building’s Renaissance/Baroque architecture and ornamentation.  More than half of the space has been re-designed as creative office space offering 13+ foot open ceiling heights, polished concrete floors and operable windows.  The building is currently 91 percent occupied to a diverse mix of technology, media and banking tenants including Hexagone, Clearmetal, WE Communications, Lightsource Renewable Energy, Bank of Guam and Sterling Bank & Trust. 

JLL’s Rob Hielscher, Michel Seifer, Erik Hanson, Cheri Pierce, Kristina Wollan and Michael Manas acted as exclusive advisors on the transaction. 

About Intercontinental Real Estate Corporation
Intercontinental Real Estate Corporation is an SEC Registered Investment Adviser with decades long experience in real estate investment, finance, development, construction management and asset management. Since 1959, Intercontinental and its affiliates have managed, developed, or owned collectively over $10 billion in real estate property. Today, Intercontinental manages a real estate portfolio of approximately $8.5 billion for its clients. The Intercontinental portfolio is diversified both by robust property mix and by geography. Fund strategies actively seek opportunities to invest in both Core and Core-Plus properties, as well as in Value-Add operating properties and development projects. www.Intercontinental.net

About Harvest Properties
Harvest Properties is a vertically-integrated, full-service commercial real estate investment firm that specializes in the acquisition, reposition, entitlement, development, management and financing of commercial property, primarily through joint-venture investments in Northern California. Over the last decade, Harvest has become an established leader in the marketplace by generating attractive returns for its financial partners, providing creative solutions and outstanding service. Harvest Properties’ portfolio comprises approximately ten million square feet of office, industrial, R&D and retail properties in the San Francisco Bay Area. For more information, please visit http://www.harvestproperties.com.

West Coast Commercial Real Estate News