By Jon Peterson
San Francisco-based Rubicon Point Partners has acquired the 85,180 square foot United Nations Plaza office building located at 1130 Market Street in San Francisco for $49 million, or just over $575 per square foot, according to multiple quarterly reports from real estate brokerage companies released earlier this week.
Rubicon did not respond to several phone calls seeking comment for this story.
The seller of the property was San Francisco-based Kivelstadt Group, which had owned the asset since 2015. This real estate investment firm was represented in the transaction by the San Francisco office of CBRE. The listing agent on the sale was Mark Geisreiter, an executive vice president in the San Francisco office. CBRE also did not respond to phone calls for comment.
Kivelstadt paid $34.5 million for the property, or just around $405 per square foot, as stated by sources that track the sales of office buildings in San Francisco.
1130 Market will be a re-leasing opportunity for the new owner. The commercial component of the property is now 100 percent occupied by the Art Institute of California. This organization will be leaving the property next year since the tenant’s lease expires in July of 2019. The property also has a small retail space that is currently vacant.
The office asset is located within the Mid-Market sub-market in San Francisco. This region through the third quarter of this year had a total square footage of just over four million square feet. It has a total vacancy of 5.2 percent with an average direct asking rent of $76 per square foot. No new development is currently underway in the region.