Kensington Investment Group, a real estate developer and owner based out of San Francisco and Portland, made an acquisition in December in San Francisco’s SoMa neighborhood for $20 million, according to public documents. The property the company had purchased is located at 28 Second St., and it is a seven-story, 27,000 square foot building located on the corner of Market Street and Second Street. The company paid just over $$740 per square foot for the property and also took out a $16.5 million loan for the acquisition with First Hawaiian Bank, according to public documents.
The seller of the property was an entity associated with Burlingame-based Michael Tzuwen Wang.
According to a report by the San Francisco Business Times, Kensington plans to invest $4 million to upgrade the Class C property into a Class A asset with creative offices that would welcome tech companies and higher rents.
“This is one of the most dynamic markets in the world and one of the strongest corridors in San Francisco,” said Robert A. Jensen, principal with Kensington, in the report. “We know where we are in the real estate cycle but this is a long-term play for us. There will be ups and downs, but in the big picture, we believe in San Francisco.”
The property was acquired with the firm’s own capital, according to the report, and no equity partners were brought in for the purchase. Kensington is primarily managed by the Jensen family. The husband-wife team of Robert and Shirley Jensen founded the company 40 years ago and have since brought in their three kids, Robert, Rebecca and Michelle into the organization. The company has primarily focused on acquisitions in Oregon and Monterey County.
According to its web site, Kensington invests in hotel, retail, office and mixed-use assets and focuses on a full range of services from acquisition and development to design and project management and asset management of real estate properties.