TH Real Estate Acquires 539 Bryant in San Francisco for $46MM

Zurich North America, San Francisco, Cushman & Wakefield, TH Real Estate, Nuveen, TIAA, 539 Bryant Street, South of Market, SoMa, HoneyBook, Life360, Sauce Labs, HKS Architects, Gigwalk

(EDITOR’S NOTE: Sources familiar with the property details that it sold for $46 million, or roughly $768 per square foot. The office building was sold by an affiliate of Zurich North America, which had acquired the property in 2013 for $34.2 million. The seller was represented in the transaction by the San Francisco office of Cushman & Wakefield. Seth Siegel, executive director, and Adam Lasoff, senior director, worked on the deal. They declined to comment.)

TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA), has acquired 539 Bryant Street in San Francisco’s South of Market submarket. The 4-story, creative office building totaling 59,868 square feet was first developed as a warehouse in 1912 and converted to creative office space in 1983. It is 100 percent occupied by multiple tenants including HoneyBook, Life360, Sauce Labs, HKS Architects and Gigwalk.

“We have acquired a core asset that has the potential to offer premium-over-core returns throughout a long term hold,” said Rich Kimble, Senior Director and head of the Northwest region for TH Real Estate. “We believe we can strategically manage tenant rollover and that the SOMA submarket–which is home to the city’s leading technology companies–will remain the epicenter for these tenants.”

The open floor plans offer high-functionality and reusability, featuring large operable windows, concrete floors, high exposed ceilings (13’6” to 16’6”) and abundant natural light.

Located on Bryant Street between 3rd Street and 4th Street, the property is in close proximity to the San Francisco Caltrain station, numerous Muni bus and light-rail stops, the future Central Subway line (scheduled for completion in 2019) and offers easy access to all three major freeways of I-80, I-280 and Hwy 101.

It is also surrounded by numerous retail amenities and is steps away from South Park, San Francisco Giants’ AT&T Park and the rapidly expanding Mission Bay.

TH Real Estate, an investment affiliate of Nuveen (the investment management business of TIAA), is one of the largest real estate investment managers in the world with $96.8 billion in AUM as of 12/31/16. Managing an extensive suite of nearly 80 funds and mandates spanning both debt and equity across diverse geographies, sectors, investment styles and vehicle types, the firm provides access to every aspect of real estate investing. With offices in 18 cities throughout the U.S., Europe and Asia Pacific, the platform leverages its 60 years of investing experience to offer deep local expertise coupled with a sophisticated global perspective.

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