Pacific Place Sells for $184M

SAN FRANCISCO-Pacific Place, a two-building, 430,000-sf mixed-use portfolio on Market Street has sold for $184 million, marking the largest transaction here in five years. The property is 100% leased.

The acquisition includes 801 Market St., a 10-story building anchored by Old Navy’s 100,000-sf flagship retail store and topped with the 198-room Palomar Hotel, and 22 Fourth St., a 207,000-sf 16-story office building anchored by Macy’s West, which will occupy just over 60% of the building following an expansion later this year. The properties are located adjacent to San Francisco Centre, which is undergoing a $410-million renovation and expansion by Sydney-based Westfield Holdings Ltd.

The new owner is Atlanta-based Jamestown, which plans to package the asset with four others to create a new fund that, like all of its funds, will be marketed to large groups of individual German investors. The seller is Pacific Resources, a Taipei, Taiwan-based real estate investment group that hadn’t planned on selling the building.