(EDITOR’S NOTE: According to sources familiar with the details of the transaction, the sale closed for around $94 million, or $800 per square foot. Madison Capital had owned the building since August of 2017, when it paid $69,330,000 for the asset.)
SAN FRANCISCO (Nov. 5, 2019) – Urban Land Development (ULD), a privately owned, full-service real estate development firm based in San Francisco, in a joint venture with Urban Land Capital, an affiliated real estate private equity fund, and Meyer Corporation, an institutional investor, has acquired 150 Post Street in the Union Square neighborhood of downtown San Francisco from a joint venture of Madison Capital and an institutional real estate advisor.
“Downtown San Francisco continues to be a high-growth market with strong demand drivers and high barriers to entry,” said Jon Mayeda, CEO of Urban Land Development. “Through immediate renovations to the property, transforming the office space to a high-end creative office, we will create a more open, and thus desirable, workspace for companies seeking flexibility. With the nearby retail and restaurants in the Union Square neighborhood, the 150 Post property is in a prime submarket that is undersupplied and will enjoy improved access upon the completion of the Central Subway.”
Located in one of the world’s premier destination urban retail districts, just one block from the North Financial District and one-and-one-half blocks from the Montgomery Street BART, the seven-story building comprises 117,435 gross square feet of commercial office space with ground-floor retail, including Shreve & Co. Jewelers. The building was built in 1908 and structurally renovated in 2003. ULD will embark on a transformative repositioning of the building interior by uncovering the 14 to 15-foot concrete slab-to-slab ceiling heights, reconfiguring suites to occupy half or full floors of up to 14,000 square feet, and creating an open office floor plan.
Although the area is traditionally known for high street retail, which comprises 25% of the building, the upper floor offices represent a value-add opportunity with a steady lease rollover of 40% of the building in the next three years, which is key to ULD’s strategy. Further bolstering 150 Post’s desirability is the anticipated completion of the Central Subway in 2021; the new light railway will extend its service to Union Square, providing another point of public transportation to the area.
Kazuko Morgan of Cushman & Wakefield served as the broker.
About Urban Land Development
Urban Land Development (“ULD”), a privately owned, full-service real estate development firm based in San Francisco, has extensive real estate expertise in acquisition, value-enhancement, asset repositioning, ground-up development, and land entitlement. The Principals of ULD provide over 50 combined years of real estate experience creating commercial and residential projects that seamlessly integrate trendsetting, design-focused architecture to establish a new paradigm for the urban environment. For more information, please visit www.uldevelopment.com.