Grosvenor Acquires Union Square Retail for $11M

SAN FRANCISCO-Grosvenor has acquired 185 Post St., a 26,200-sf retail building here that is one block from Union Square, the heart of the city’s high-end shopping district. The private international property developer has not commented on the price, but says it plans to lease it out as a multi-level flagship retail space following a complete renovation to turn it into a flagship-worthy space. Local industry sources tell GlobeSt.com that Grosvenor paid $11 million for the 98-year-old building.The four-story property at the corner of Post and Grand has 3,500-sf floorplates. It is surrounded by high-end retailers such as Hermes, Coach, Burberry, Cartier, Prada, Bulgari and others, says Grosvenor’s head of West Coast acquisitions Alan Chamorro. First floor rents in the area for premiere range from $350- to $450 per sf per year, Chamorra tells GlobeSt.com. The marketing package should be out in the next 90 days, he says.The building was originally constructed in 1907. Prada, the seller, acquired the building in 1996 with plans to open a multi-level flagship at the location, but the project never materialized, according to local industry sources. Grosvenor plans to complete a full renovation of the building, including a seismic upgrade and a new exterior that wil complement the Union Square district’s historic look and feel.”This marks our third investment in the Union Square district, and fits perfectly with our strategy of acquiring high-end street retail properties in key U.S. markets,” says Chamorro. Grosvenor owns two other buildings in the area: 180 Post Street and 251 Post Street.Retail property represents about one-third of Grosvenor’s international portfolio. Over the past few years, Grosvenor has acquired important retail assets in several major US cities. Grosvenor recently developed and leased 308-310 North Rodeo Drive in Beverly Hills to Harry Winston for its largest store in the U.S., and bebe. Grosvenor also owns fashionable retail space on Chicago’s Magnificent Mile, as well as 15 boutique retail properties in the most popular neighborhoods of Washington, DC.