SAN FRANCISCO-GlobeSt.com has learned that Station House #1, a multi-use residential and retail property in the burgeoning South of Market neighborhood, is being offered for sale. The asset, which contains 25 ultra-luxury residences, a two-story restaurant/lounge space and modern stacked parking system, is not publicly priced, but industry sources say it is expected to fetch roughly $20 million.
Owner Martin Building Co. is exclusively marketing the property via Jones Lang LaSalle’s Jordan Moss. According to JLL, the “unencumbered offering presents investors a unique opportunity to acquire an irreplaceable mixed-use asset in the heart of the nation’s top-performing market.”
Located at Six Mint Plaza, Station House #1 was originally constructed in 1900 as a fire station, Moss tells GlobeSt.com. The building was completely repurposed, with all new building systems, in 1997. At that time, Martin designed and developed the property as a component of the Mint Collection—four distinct historic buildings surrounding Mint Plaza. The company is selling the asset to repatriate capital into other planned developments.
The 25 residential units, while individually mapped as condominiums, are 100% leased apartments, Moss says. “A new buyer may continue to run the asset as a boutique, luxury rental community or to sell the units on an individual basis.”
Station House #1 features rich finishes unique to the Bay area rental market, while providing residents with concierge services and 24-hour security. Additional building amenities include a high-quality fitness center, dog run, custom spa and roof deck offering supreme views of the surrounding area.
Squarely positioned within the SOMA submarket, the property commands market-leading rents while benefiting from immediate access to significant employers including Twitter four blocks southwest, public-transportation options such as the $4 billion Transbay Transit Center Project four blocks northeast and an abundance of shopping, dining, entertainment and cultural destinations.
“A burgeoning high-tech employment base has led to substantial job creation and surging demand for quality rental units,” Moss concludes. “Furthermore, all significant economic development activity within San Francisco is occurring in the immediate area.”
Driven by its booming high-tech industry, San Francisco’s apartment market recorded a 15% growth in multifamily rental rates in 2011, according to JLL, with rental rates in SOMA growing 22% during the past year. Additional 10% increases are anticipated through 2012 as insatiable apartment demand continues to outweigh anemic new supply.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
