SAN FRANCISCO-Harvest Properties and partner Kinship Capital, has sold the Pioneer Building to New York-based Bridgeton Holdings for an undisclosed sum. Harvest and Kinship had recently repositioned the “jewel box” office building located in the heart the Mission District, at 3180 18th Street.
Harvest, a full service commercial real estate investment, development and management firm based in Emeryville, currently manages the building and will continue to do so for the new owners. The property was acquired by Harvest and Kinship Capital. in an off-market transaction in February of 2012. The partners completed a full state-of-the-art renovation enhancing the building's original charm and successfully lured top tier technology start-up, Stripe, out of the South of Market area (SOMA) helping make the Mission District a burgeoning commercial real estate scene.
A high profile online payment company currently working on a deal with Twitter to allow users to purchase products directly from the site, Stripe recently announced securing approximately $80 million in Series C funding from premier venture capital firms.
Harvest and Kinship Capital adeptly repositioned the 1902, Italianate style three-story wood frame structure in just 18 months and ultimately released it at considerably higher rates. The building, which was seismically upgraded and listed on the National Register of Historic Places in 1987, received over $5 million in landlord and tenant funded capital improvements during Harvest and Kinship's Capital's ownership. Kinship is a long duration real estate investment firm.
This is the second historic San Francisco office building Harvest counts among its success stories. The value-add developer and partner Cigna sold 115 Sansome Street ahead of plan in April of 2013 after giving it a dramatic and lucrative rebirth.
“We are proud to have enticed Stripe away from SOMA and excited about what this deal means to the San Francisco commercial real estate market” said John Winther, Founder and Managing Partner of Harvest Properties. “The Mission District is now a viable option for technology companies.”
Nick Thomson, director of real estate at Kinship Capital commented, “Kinship's flexible investment horizon and willingness to pursue projects in emerging submarkets and strategies led us into the Mission District with Harvest. We are thrilled with the outcome and are eager to pursue more projects in the Mission and greater Bay Area, with ample equity capital available to invest in 2014.”
Kinship owns two other large commercial properties in the San Francisco Bay Area and is pursuing additional investments in the area. Investment brokers involved in the transaction include David Terzolo, Josh Peterson and Charlie Withers of CBRE.
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