SAN FRANCISCO-The mixed-use asset known as 799 Market St. at the intersection of Union Square and the SoMa technology office corridor downtown has been sold to Jamestown L.P. by a partnership between Urban Realty and Commonfund. The parties involved were unable to reveal the sales price to GlobeSt.com, but industry sources unrelated to the deal say the amount was $93.5 million.
The class-A urban retail and creative-office building is a 142,902-square-foot, eight-story property that includes five floors of creative-office space atop 55,000 square feet of retail. The retail section is currently 100% occupied by a Ross Dress for Less flagship store, one of the five highest-performing Ross stores in the nation.
Michael Philips, Jamestown’s COO, said in a prepared statement, “The acquisition of this asset is part of our ongoing strategy to expand Jamestown’s presence on the West Coast and furthers our commitment to locations that support the intersection of media, technology and retail.” Philips added that the property is “well positioned to capture the growing demand from tenants attracted to the area’s vibrant atmosphere.” Jamestown owns two other properties in Northern California: a neighboring mixed-use property consisting of two buildings at 22 Fourth St. and 801 Market, and an open-air regional shopping center with approximately 594,000 square feet in Alameda, CA.
799 Market St., which is currently 89% leased, was built in 1968 and renovated in 1986 and features 100 ft. of retail frontage on Market St. and 170 ft. along Fourth St. The office space offers 17,000-square-foot floorplates, tall ceilings, large windows and open floor plans, therefore appealing to technology and creative companies. The building’s location offers easy access to public transportation, including BART, Muni and a future Central Subway station, with a direct connection to Caltrain.
Eastdil Secured represented the seller in the transaction and helped Jamestown secure financing. As GlobeSt.com previously reported in September, Eastdil had advised the seller in the disposition of 50 Beale St., a distinctive, class-A office tower in the South Financial District, to a joint venture between the Rockefeller Group and Mitsubishi Estate New York. While the parties involved declined to reveal the sale price to GlobeSt.com at the time, industry sources unrelated to the deal said it was rumored to sell for $300 million and that the seller was a joint venture between Fortress Investment Group and Lehman Brothers Holdings Inc.
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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.
