115 Sansome Street Comprises 117,000 SF of Renovated, Creative Workspace with Stunning, Historic Architectural Features
(EDITOR’S NOTE: According to public documents, TA Realty had purchased the building in April of 2013 for $51.5 million. Sources familiar with the details of the transaction stated that the cap rate on the sale was between high four to five percent range. This return will be increased to six percent once the property is stabilized with market rents.)
BOSTON–TA Realty LLC, a leading provider of real estate investment management services to institutional and private investors, announced today that, on behalf of The Realty Associates Fund X, it sold 115 Sansome Street, a 15-story historic office building in San Francisco, California, for $83 million to privately owned real estate investment and advisory firm Vanbarton Group.
115 Sansome Street is 100% leased as a result of TA Realty’s comprehensive repositioning of the historic building, which features approximately 117,000 square feet of refurbished space. As part of this value creation process, TA Realty converted more than 70 percent of the building to “creative office”, artfully exposing the original features including concrete ceilings and floors, brick walls and copper-clad windows. The stunning architectural features of the ground floor lobby were restored and the upper floors were converted from traditional floorplates to a creative and collaborative workplace environment.
“The sale of 115 Sansome demonstrates the successful execution of TA Realty’s value-add strategy in a high barrier to entry market,” said Jim Raisides, Partner at TA Realty. “We were able to activate the ground floor retail while seamlessly integrating the historic charm of the building with innovative workplace dynamics. The result has provided a unique neighborhood gathering destination for building tenants, as well as other professionals throughout San Francisco’s Financial District. The building’s dynamic ground floor and coveted creative space has helped attract tenants from a diverse set of industries.”
Mr. Raisides represented the sale alongside colleagues, Doug Engelman, Partner, Scott Amling, Partner, Luke Marchand, Officer and Greg Bonomo, Associate. JLL’s Michel Seifer and Rob Hielscher, both managing directors, and Erik Hanson, vice president, represented TA Realty in brokering the transaction.
Constructed in 1912 to be the headquarters for the Standard Oil Company, 115 Sansome is an exquisite 19th Century French Beaux-Arts masterpiece. The building’s dramatic lobby featuring a double-height coffered ceiling and brass accents, attracted the popular Blue Bottle Coffee and, The Treasury, a Parisian-inspired restaurant and cocktail lounge.
About TA Realty
TA Realty is among the largest and most experienced providers of real estate investment management services to institutional and private investors. Since its inception in 1982, TA Realty has managed more than $25 billion of real estate assets through a series of value-added, commingled funds and customized core separate accounts. TA Realty’s investment philosophy focuses on creating diversified real estate portfolios that generate strong cash flow, benefit from intensive asset management and result in long-term value creation. For more than three decades, TA Realty has maintained this philosophy through multiple real estate and economic cycles, a strength recognized by leading pension funds, endowments, foundations and high net worth individuals. For more information please visit www.tarealty.com.
About Vanbarton Group
Vanbarton Group is a privately owned, vertically integrated real estate investment and advisory firm with corporate offices in New York City and San Francisco. With its proven expertise successfully investing across the capital stack in varying ways throughout real estate cycles, Vanbarton’s investments include U.S. domestic core plus, value-add and opportunistic equity investments, preferred equity, junior participations, bridge loans, secondary market debt acquisitions and securitized credit. To find out more about Vanbarton, please call 212-293-8800, or visit the firm’s website at www.vanbartongroup.com.