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Broadreach Invests $100M in SF Office

SAN FRANCISCO-In separate transactions, Broadreach Capital Partners acquires two class B office buildings here, one in the Financial District and another in the Civic Center area.

By Brian K. Miller | Updated on July 02, 2007

SAN FRANCISCO-Broadreach Capital Partners has picked up two class B office buildings here in separate transactions totaling approximately $101 million. Both transactions are value-add propositions for Broadreach, a Palo Alto-based real estate private equity firm formed in 2002 by the former executive team of Spieker Properties, which was acquired by Equity Office Properties in 2001 for $7.2 billion.

In the larger of the two deals, Broadreach paid Bay Pacific Corp. $58 million or $295 per sf for a 10-story, 196,630-sf (net rentable) building that sits at 550 Kearney St. in the North Financial District. The first six stories of the building were built in 1956, the remainder in 1981. The property includes subterranean parking for approximately 150 cars. The property is 50% leased.

Broadreach senior director Trevor Wilson, who oversees the firm’s investment activities in San Francisco and the Pacific Northwest, tells GlobeSt.com the bulk of the vacancy came in 2006 when the building’s primary tenant, a federal bankruptcy court, vacated the premises. “What it allows us to do is go in and put traditional office tenants in the building,” says Wilson, adding that class B office rents in the area range from the high $30s- to mid-$40s per sf, full service.

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