Tuckerman says that M&J Wilkow is serving as both operating partner and managing agent for the investment, but that the equity for the deal came from Tuckerman's Redevelopment and Renovation Fund. Tuckerman is partially owned by State Street Global Alliance LLC, a joint venture of State Street Global Advisors, the investment management arm of State Street Corp., and the world's second largest pension fund, Netherlands-based Stichting Pensioenfonds ABP.
As previously reported by GlobeSt.com, the plan is to renovate the 1929-vintage art-deco building. The extent of the renovation is yet to be decided, but will definitely include the conversion of 3,750 sf of first floor office space to retail space. Neither Tuckerman senior managing director Glen Weisberg nor M&J Wilkow principal Clifton Wilkow were available for comment Thursday afternoon. In a prepared statement, Weisberg says there are "many possibilities for adding value [to the building]) through renovation."
The project was 84% leased at closing and is now closer to 90%. Plum Tree Software, which leases about 40,000 sf in the building, has less than two years remaining on its lease. Asking rates are in the high $20s, fully serviced.
Margaret Duskin and Mark Anderson of Cushman & Wakefield's San Francisco office have the leasing assignment. Duskin tells GlobeSt.com that the owners are currently interviewing architects regarding various value-add ideas. "There's no major rollover until 2008, which gives [the owners] time to decide how far the they want to take the [renovation]," she says.
The Tuckerman Group has $5.7 billion under management that is invested in real estate and real estate securities. State Street Global Advisors has $1.7 trillion under management.
M&J Wilkow owns about 6.7 million sf of real estate, fairly evenly split between office and retail properties. Its only other office asset in San Francisco is 600 Battery St., a wider and shorter 112,000-sf building of the same vintage as 500 Sansome that it 100% leased.
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