San Francisco, CA, February 5, 2019 – PCCP, LLC announced today it has acquired a four-story, 138,393-square-foot, Class A office building located at 350 Rhode Island Street for $120 million ($867 per square foot) in San Francisco. The 100 percent occupied multi-tenant property is within the Potrero Hill neighborhood and the Showplace Square office submarket. (EDITOR’S NOTE: The seller of the property was Lincoln Property Company, which has owned the building since August of 2013 when it paid $64 million for the asset.)
“350 Rhode Island presented a compelling opportunity to participate in San Francisco’s robust and technology centered office market, and do so with an attractive current yield and at a basis below today’s replacement cost,” said Dorian Farhang, vice president with PCCP. “This market continues to demonstrate record strength and 350 Rhode Island is a quality creative office building, with large floor plates and above-market parking that will support the asset’s long-term relevance within the leasing market.”
The property features 35,000-sf floor plates and a modern, distinctive architectural design. Constructed in 2001, 350 Rhode Island was completed as two interconnected, four story office buildings over three levels of subterranean parking. The buildings are now under separate ownership. Farhang noted that the parking structure component of PCCP’s acquisition provides added cash flow for the investment as it serves not only the subject building but the adjacent building and other office tenants in the area.
From a location standpoint, the property resides at the northern base of San Francisco’s Potrero Hill neighborhood, within the Showplace Square submarket, a high-growth location with substantial development activity in and around the immediate area. Formerly a primarily industrial and showroom area, over the past decade, Showplace Square has seen a significant influx of tech firms. Additionally, residential developers continue to deliver new housing supply into surrounding areas providing an abundance of living options for high-income tech employees who work in this submarket. 350 Rhode Island is located directly across the street from Whole Foods, and proximate to numerous neighborhood amenities. The property is situated between Hwy 101 and I-280 along the 16th Street Corridor, at the confluence of the Mission District to the West, Potrero Hill to the South, SOMA to the North, and the Mission Bay neighborhood to the East.
About PCCP, LLC
PCCP, LLC is a real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has $8.6 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco and Los Angeles, PCCP has a 20-year track record of providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP underwrites the entire capital stack to exploit inefficiencies in the market and provide investors with attractive risk-adjusted returns. Since its inception in 1998, PCCP has successfully committed $18 billion of capital through a series of investment vehicles including private equity funds, separate accounts and joint ventures. PCCP continues to seek investment opportunities with experienced operators seeking fast and reliable capital. Learn more about PCCP at www.pccpllc.com.