(EDITOR’S NOTE: According to public documents, the transaction closed for $135 million, which comes to approximately $1,365 per square foot. The buyer was a Spanish investment company Ponte Gadea SL, which was founded by Amancio Ortega Gaona, the founder of global retail giant Zara.)
San Francisco, September 23 2016 – Cushman & Wakefield has acted as exclusive advisor to Greenstone Realty Advisors LLC and 360 Post LP, for the sale of San Francisco’s iconic Tiffany Building to an undisclosed international investor. Retail Vice Chairman Kazuko Morgan and Executive Managing Director Seth Siegel led the team that advised on the sale. Financial terms are not disclosed.
The world renowned luxury retailer is located directly on Union Square at 360 Post Street, adjacent to Saks Fifth Avenue and Apple’s new flagship store. The 11 – story Tiffany Building is one of San Francisco’s most impressive buildings; comprised of 96,882 square feet of luxury high-street retail and office space, and is highlighted by 75 feet of prime retail frontage on Post Street.
“This building has had the same ownership for more than 20 years and throughout that period it has received frequent sale inquiries and unsolicited offers. This sale is a further confirmation that investors take a very long term approach. The owners are pleased by its outcome and entrust the new owner to carry on its enduring legacy,” said Spencer McCann and Andre Kinney, Principals, Greenstone Realty Advisors LLC.
“The Tiffany building is an irreplaceable asset that generated world-wide appetite from the highest caliber of investors and represents the continuing demand of iconic trophy buildings around the globe,” Kazuko Morgan said. “This highly sought after property faces directly onto the center of Union Square and suitors have been clamoring for it for decades.”
According to Seth Siegel, “Very few buildings in San Francisco offer a comparable level of access to such a large complement of restaurants, shops, convention and entertainment centers, and fine hotels – all conveniently located within walking distance. Apple opened its new flagship store at 300 Post earlier this year and is expecting foot traffic to double upon its relocation from One Stockton to Union Square.”
Carlo Barel di Sant’Albano, Chairman EMEA and Chief Executive, Global Capital Markets, Cushman & Wakefield, said, “Kazuko Morgan and Seth Siegel have successfully closed this significant and high-profile transaction that involved global collaboration across the firm. San Francisco is recognized as a prominent growth city with an economic prosperity bolstered by the tech boom. Cushman & Wakefield has the ability reach globally to investors and this sale ultimately was concluded with a European buyer.”
Gene P. Spiegelman, Vice Chairman, Head of North America Retail Services, Cushman & Wakefield said, “Cushman & Wakefield is a leader in urban high street sales in the US and Europe and this sale emphasizes the trend for recognizable high streets around the world. Kazuko is highly-sought after for her expertise in luxury retail leasing and urban high street sales. We have been fortunate to work on the best properties in the world due to our global platform and Kazuko’s strength in this sector,” Mr. Spiegelman said.
For nearly 25 years this location has served as one of Tiffany & Company’s most important global flagship stores. The Tiffany Building is also the U.S. headquarters for Cathay Pacific, one of Asia’s largest airline carriers. It is one of the tallest buildings on Union Square and its prominent presence is heightened by its extremely valuable signage and prime retail frontage along the most visited area of San Francisco.
Access to mass transit is a key consideration for San Francisco’s retailers and office tenants. The Tiffany Building has direct access to multiple public transportation options. The Powell Street BART/MUNI station and San Francisco’s famous Powell Street cable car are within a short walk. The new Central Subway line (scheduled for completion in 2019) is also steps away.
San Francisco’s Union Square retail district is recognized as one of the world’s premier shopping destinations such as Fifth Avenue, Rodeo Drive, Michigan Avenue, Champs-Elysees, Bond Street, Oxford Street and the Ginza District.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
About Greenstone Realty Advisors
Greenstone Realty Advisors is a professional real estate asset management and advisory firm that is based in Leesburg, VA. Principals of the firm have combined experience of more than 70 years in all facets of real estate strategy, structure, development, oversight, acquisitions, dispositions and financial management and have worked together for approximately 60 of those years at various firms.
Their clients include both foreign and domestic institutions and ultra-high net worth investors. Prior to forming Greenstone, the principals created the asset management division for a prior employer that grew to more than 18 million square feet valued at over $7 billion through new client acquisition and organic growth. To learn more, visit www.greenstonerealtyllc.com