Rubicon Relists 43,000 SQFT 1125 Mission Office Building in San Francisco

San Francisco, Rubicon Point Partners, Newmark Knight Frank, Alexandria Real Estate Equities 1125 Mission
Image courtesy of Skyline Capital Builders

By Jon Peterson

San Francisco-based Rubicon Point Partners is trying for the second time to sell the 43,489 square foot 1125 Mission Street office building in San Francisco. The property this time around is being marketed for sale unpriced, according to a statement in an email from the property owner.

Rubicon Point Partners had placed the asset on the market in February of this year but then took it off the market due to COVID-19 and the ensuing consequences of the global pandemic. The potential sales price at that time was in the low $1,000 per square foot range with a seven percent cap rate, according to sources aware of the property’s marketing efforts.

Rubicon has been the owner of the property since April 2015. It had acquired the building when it was used as a parking garage at that time for $10.4 million, according to public records. 

The listing agent on the sale now, as well as earlier this year, is the San Francisco office of Newmark Knight Frank. This company did not respond to several emails seeking comment for this story.

Since it acquired the property, Rubicon has transformed the asset into a creative office building. All that remained from the previous use were three concrete walls, while the interior was reimagined as an open space with an interior second floor platforms and a curved ceiling. The new space also includes a new HVAC system, lobbies, passenger elevators, roof, security systems, showers, bathrooms, lockers, bike room and kitchen.

San Francisco, Rubicon Point Partners, Newmark Knight Frank, Alexandria Real Estate Equities 1125 Mission
Image courtesy of Skyline Capital Builders

The property is now leased to Lever, a company known for its work in recruitment and human capital software. The company’s lease is for 10 years, which is also secured by a $3.7 million letter of credit.

The new owner of the building will be able to add value to the property though an expansion. The can be increased by an additional 20,000 square feet. The benefit of growing the property by this size is that it doesn’t have to go through a Prop M allocation; anything less than 50,000 square feet is excluded from this San Francisco office space building regulation.

1125 Mission has a very strong public transit location. The property has convenient access to both BART and the Central Subway. It also is located in a region with strong housing offerings. There is over 10,000 multifamily units in the area that have been recently completed or are under construction.

1125 Mission is located within the SoMa sub-market for office buildings in San Francisco. This part of the city has seen an uptick in overall office vacancy, recently. In its second quarter of 2020 earnings call last week, Alexandria Real Estate Equities stated that the vacancy has moved from 1.3 percent to four percent in this sub-market.

San Francisco, Rubicon Point Partners, Newmark Knight Frank, Alexandria Real Estate Equities 1125 Mission
Image courtesy of Skyline Capital Builders
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