By Jon Peterson
A privately held owner/user has closed on the acquisition of the office building in San Francisco located at 451 Pacific Avenue. The purchase price on the 9,000 square foot building is $13 million or $1,444 per square foot, according to sources that follow office building sales in San Francisco.
The previous owner of the property was also a private owner, and the listing agent on the sale was the San Francisco office of CBRE. The people working on the sale included Kyle Kovac and Michael Taquino, both executive vice presidents, and Mandy Lee, vice president. CBRE declined to comment when contacted for this story.
451 Pacific currently has no tenants, however the asset was recently converted to a creative office building. Prior to the sale, there was a property condition assessment that identified almost no required repairs for the new ownership.
The office building was first constructed in 1908. It had been used at one time for the Engine Company Number One, one of San Francisco’s fire brigades. The property still has some features that show off its history and past use, like the wide arched main entrance, spiral staircase and an old fire pole near the entrance of the property.
The property also has some features that would appeal to creative or technology types of tenants. These include spacious ceiling heights, plentiful natural light, roof views and exposed brick walls.
451 Pacific is located within the Jackson Square/North Waterfront sub-market of San Francisco. The Jackson Square part of the city is known as one that attracts both venture capital and investment firms as tenants. In this sub-market rents for premium creative office space are exceeding $95 per square foot per year, according to sources that track leasing rates across the city.