By Jon Peterson
Manchester, Vermont-based Manchester Capital has placed on the market for sale the 137,624 square foot Townsend Building in San Francisco. The potential price point on the sale could be $160 million, or $1,170 per square foot, according to sources that are aware of the asset and what the ownership is seeking.
The seller has selected the San Francisco office of Newmark Knight Frank to be the listing agent on the sale. Part of the team involved in the transaction includes Steven Golubchik and Grant Lammersen, both vice chairmen. NKF declined to comment when contacted for this story.
The Townsend Building has two addresses; one is at 123 Townsend Street, and the other at 118 King Street. Manchester Capital has owned the property in its portfolio since October of 2003. The real estate investment firm had paid $18.3 million for the property at that time, according to public records.
The office building is considered to be a core asset, since the property is now 100 percent leased. The anchor tenant in the building is PayPal; this company occupies roughly three quarters of the net rentable square feet of the property. The average remaining lease term in the building is 8 years, and the in-place rents in the property are roughly 28 percent below market rates, so there is some room for value-add for the new ownership.
There has been a significant amount of capital invested into the building for the PayPal space. This is to the tune of over $200 per square foot invested into PayPal’s suites, which includes $110 per square foot tenant co-investment.
The Townsend Building is a six-story office building. It has a 6,000 square foot fitness center on site that includes showers. One of the biggest amenities of the building is its proximity to the San Francisco 4th and King Street Caltrain station, which is just a few blocks to the south.