Vanbarton Group, a privately owned, vertically integrated real estate investment and advisory firm with corporate offices in New York City and San Francisco purchased the retail building located in the city’s Union Square neighborhood for $33 million, or roughly $2,687 per square foot, according to public documents. The seller was an entity associated with the Beverly Hills-based real estate investor Ross Hilton Kemper.
Located at 39 Stockton Street, the two-story building is 100 percent leased to The Walt Disney Company. The property benefits from its location one block south of Union Square within the San Francisco’s primary shopping district with 146 retail stores in a four-block radius. The property is neighbored by some of the largest national and international brands such as Apple, Barney’s New York, Macy’s, Crate & Barrel and Ghirardelli.
A new Central Subway station, which will connect BART and Caltrain, is currently under construction nearby at Stockton and Market Streets. When completed in 2019, the Central Subway station is expected to increase pedestrian traffic on Stockton Street.
The buyer, together with one of its U.S. pension fund partners, took out a $16 million in first mortgage debt to finance a fully occupied 12,281-square-foot retail property. The loan was provided by Mesa West Capital.
“The Union Square submarket is already one of the most desirable retail districts in the United States, and occupancy and rental rates are at historic levels,” said Mesa West Principal Ronnie Gul who led the West Coast origination team. “The new subway will bring thousands of locals and tourists each day right to the front step of the asset, which will substantially increase the desirability of the property.”
Mesa West’s five-year floating-rate loan was originated out of the firm’s Mesa West Real Estate Income Fund IV, LLC.
The financing was arranged by John Churchward in HFF’s San Francisco office.