(Editor’s Note: According to two sources familiar with the transaction, the Phelan Building sold for $374 million at a 4.5 cap rate. At that rate, the per square foot price comes to $1,238 (based on 250,000 square feet of office space and 52,000 square feet of retail space). The buyer is an entity associated with Patrick Hotung, a promiment Buffalo, NY business leader.)
National Real Estate Leader Achieves Substantial Profit on Historic Mixed-Use Property at 760 Market Street in Union Square
San Francisco, August 25, 2016 – Thor Equities, a global leader in urban real estate development, leasing and management, has closed on the sale of the Phelan Building at 760 Market Street in San Francisco for a substantial profit, company executives announced today. The 11-story mixed-use property features approximately 250,000 square feet of office space, and 52,000 square feet of retail space.
“After upgrading 760 Market and leasing the property to leading technology companies and retailers, we felt the time was right to sell this magnificent historic building,” said Joseph Sitt, CEO of Thor Equities.
When Thor purchased 760 Market Street in 2008 for $130 million, it was comprised of small individual offices. With the explosion of Silicon Valley, many technology firms were looking for large open work spaces in San Francisco. After making upgrades throughout the building and reconfiguring the office space to reveal the vast size of each floor, the property immediately became desirable to technology firms and retailers.
Current office tenants include Credit Karma and Medium, an online publishing platform founded by Twitter co-founder Ev Williams. Retail tenants include Starbucks, Orogold Cosmetics, Walgreens, Verizon and Marshalls.
Built in 1907, 760 Market Street was instantly one of the most prominent and preeminent office buildings in San Francisco. Thor Equities preserved the history of the property including restoring the original brick, mosaic tiles and marble lobby, while installing modern amenities and infrastructure throughout.
Thor continues to own properties in San Francisco at 152 Geary Street in the heart of Union Square, as well as 440 Jackson Street and 444 Jackson Street in Jackson Square.
About Thor Equities
Thor Equities is a leader in the development, leasing and management of commercial, residential, retail, hotel and mixed-use assets in premier urban locations worldwide. The company maximizes returns for investors by recognizing a property’s potential, reducing operating expenses, increasing tenant satisfaction, and leveraging market trends to maintain a long-term competitive edge. Thor Equities is also the exclusive representative of global retailers through Thor Retail Advisors, a premier leasing agent for marquee properties worldwide. For more information, visit www.thorequities.com.