SAN FRANCISCO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that Africa Israel USA together with its partners, it has closed on the sale of the Rialto Building, an office and retail property situated in San Francisco's prime South Financial District. The nine-story building went to a joint venture between Invesco and Hines for an undisclosed amount.
“This sale proves that San Francisco is still unmatched as the nation's top-performing office market,” explains Tamir Kazaz, CEO of AFI USA. “The combination of historic architecture, creative layouts and central location make this a highly attractive property, one that will ensure long-term value and stable cash flows.”
Kazaz tells GlobeSt.com that they cannot disclose the price at this time, but in terms of reasons for selling, he says that “we are in a good market to sell.” But according to published reports, the deal was close to $60 million.
The sale was completed only six weeks after AFI USA placed the property on the market. In total, 17 offers were submitted as part of the bidding process.
Eastdil Secured represented the seller in the transaction. The Rialto Building, at approximately 135,485 square feet, boasts creative, open floor plans, high ceilings and abundant light, according to a prepared statement.
The building is 85% leased and is home to many prominent technology companies such as Trulia. The Rialto Building's ground-floor retail tenants include Walgreens and Chipotle, both of which retain long-term leases.
Originally built in 1902, the H-shaped Renaissance-style Revival building was designed by architects Meyer & O'Brien. After the great earthquake of 1906, the Rialto Building's interiors were completely rebuilt, although, the exterior structure made of steel, brick and concrete was left intact, according to a prepared statement.
AFI USA acquired the property in 2007, and soon after, undertook a capital investment program to restore the property “to its original grandeur.” Restoration work focused on original architectural components in the main lobby, including bronze staircase, ornate metal elevator doors, painted panel ceiling and marble flooring, according to a statement.
According to Damien M. Stein, director of asset management at AFI USA, “the widespread interest in the building is indicative of the Rialto's strengths, both architecturally and geographically.” He adds that “the demand for premier office space in the most sought-after area of San Francisco is clearly outpacing the ready supply.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
