(EDITOR’S NOTE: The office building was sold for $163.25 million or nearly $791 per square foot, as stated by several sources familiar with the transaction. Vanbarton declined to comment on what it paid for the property.
“The current occupancy of the property is 82 percent. We think there is a strong value-add play with this property by leasing up the vacant space and bring rents up to market on a short-term basis,” says Richard Coles, managing partner with Vanbarton. Some of the leases in the property are now 25 percent to 30 percent below market. Vanbarton plans a five- to seven-year hold on 101 Mission. For the San Francisco Bay Area, the company is mostly looking to invest in irreplaceable assets. Almost all of its activity is in San Francisco.)
Vanbarton Group LLC, together with one of its U.S. pension fund partners, has acquired 101 Mission Street in San Francisco, CA. The Property is a Class A, LEED Gold, 21- story, and 206,455-square-foot office building with ground-floor retail centrally-located in the heart of the South Financial District.
Built in 1984 and previously known as 100 Spear Street until 2013, the Property features excellent physical characteristics including extensive protected views of the San Francisco Bay, column-free interiors, a corner block location and an adjacent outdoor garden.
101 Mission Street is currently well-leased to a diversified tenant base and has benefited from previous institutional ownership, but Vanbarton will implement a significant leasing and value enhancement program similar to the one recently executed at nearby 301 Howard Street, another Vanbarton-owned asset. The program will involve new tenant amenities, common area upgrades, a comprehensive lobby repositioning, as well as buildouts of vacant and rolling space to appeal to tenants’ preferred aesthetic which includes open layouts, exposed ceilings, polished concrete floors and maximization of views.
The Property offers a top-tier location in the highly sought-after Mission and Spear Street corridors with direct access to major modes of transportation, including the new Transbay Transit Center. The Transbay will provide substantially improved transportation connections and an assortment of amenities including retail, restaurants, an outdoor amphitheater and a public rooftop park. This project has already been transforming the South Financial District and when complete, it will be the largest transportation hub on the West Coast. In addition, the Property is located between Facebook’s and Google’s expanding urban campuses and close to a number of recently or soon to be delivered office and residential developments.
“Our acquisition of 101 Mission was the ideal opportunity to expand our increasing presence in the San Francisco market. The Property already possesses attractive characteristics and proximity to amenities and transportation that appeal to a wide array of tenants,” said William Bond, a principal with Vanbarton. “The planned extensive renovations and new tenant amenities will further strengthen the Property’s quality and perception in the market.”
This transaction follows the firm’s most recent acquisitions of 6725 Sunset Boulevard in Los Angeles, 305 East 46th Street in New York City, and 990 Avenue of the Americas in New York City. In addition to 101 Mission Street, Vanbarton also owns and manages nearby 301 Howard Street, 100 Montgomery Street, 115 Sansome Street and 39 Stockton Street. Veteran Brokers Wes Powell and Chris Holland of JLL will handle exclusive leasing for the Property.
Vanbarton Group is a privately owned, vertically integrated real estate investment and advisory firm founded in 1992 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 core, value-to-core and value-add 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.