(For more retail coverage, click GlobeSt.com/RETAIL.)
SAN FRANCISCO-Brooks Properties of Limerick, Ireland this week made its second building acquisition in the Union Square area, paying an undisclosed price for 1 Grant Ave., a 24,400-sf former bank headquarters that is now home to a Giorgio Armani retail store.
The 97-year-old building is located where Grant Avenue meets O'Farrell and Market streets, one block from both the new Westfield San Francisco Centre and Union Square. The length of the Giorgio Armani lease was not immediately available. The selling brokers, Tony Crossley and Tim Maas of Colliers MacCaulay Nichols, were not available Wednesday for comment.
In Late September, Brooks Properties purchased 216-220 Post Street, a 37,500-sf building housing Saks Fifth Avenue for Men. The building is two blocks from 1 Grant Ave. and one block from Union Square. The sale price for that building was $42M, or $1,120 per sf.
In May, Los Angeles-based Blatteis & Schnur Inc. and Washington, DC-based ASB Capital Management paid $1,575 per sf ($12.6 million) for a vacant two-story building at northeast corner at Powell and O'Farrell streets, one block off Union Square and two blocks from Westfield San Francisco.
Tenants in other buildings on the intersection include Starbucks and H&M, a UK-based clothing retailer. The new owners plan to give the building a full seismic renovation and recapture its historic façade en route to creating a flagship retail location.
Ground floor space fronting Union Square rents for over $400 per sf per year, according to local brokers. One block away, the blended rate for a two-story flagship location would be in the vicinity of $250 per sf, according to local retail brokers.
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