Leon Lee, a private investor, acquired the property from a group of investors that had owned the property since 1979. Tim Maas and Tony Crossley with Colliers International in San Francisco represented both parties.
Maas tells GlobeSt.com the main tenant is East-West Bank. A Washington Mutual retail bank currently occupies the ground floor, but will vacate the space at the end of 2006.
The new owner currently envisions a restaurant replacing the bank, says Maas, in part to complement the nearby retail, which includes San Francisco Shopping Centre, Macy's and Neiman Marcus. In addition, Barney's is reportedly close to signing a lease for the former FAO Schwartz space at the corner of O'Farrell and Stockton streets.
The capitalization rate on the investment is about 6% based on in-place numbers. "Union Square properties like this one are a safe investment and continue to rise steadily in value," says Maas.
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