Located at the corner of Market & New Montgomery, the building was built in 1907 and fully renovated during the 1990s. It is 90% leased. Major tenants include Bank of America and the Australian Consulate. Rob Dumas of Grubb & Ellis represented the seller and Dan Cressman of Grubb & Ellis represented the buyer.
Dumas and Cressman could not be reached for comment, but local brokers familiar with the transaction tell GlobeSt.com that no tenant has more than 10% of the building and that leases representing 35% of the space will expire over the next two years, and that those rents are above current market rates.
All but two floors were renovated between 1993 and 1998 and the remaining two floors were renovated by the seller, according to the sources. The sale price, which equates to $224 per sf, is about 25% to 30% below what it would have sold for 18 months ago, according to local brokers.
"The number of sale transactions in the first half of 2003 is well above 2002, but that the dollar volume is not," one local broker tells GlobeSt.com. "Under $20-million deals are happening all the time; but above that they are few and far between."
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