SAN FRANCISCO—A fund sponsored by CBRE Global Investors has acquired 235 Pine St., a 150,159-square-foot class A office building located in the heart of the San Francisco Financial District. The property is fully occupied with a significant General Services Administration presence.
However, nearly 50% of the space will be going vacant in the near term, including the GSA Bankruptcy Court. According to CBRE, this represents an opportunity for the Strategic Partners US team to implement its value-add strategies to offer tenants a market-leading environment in a high-quality building.
CBRE Global Investors plans to invest heavily in the property by adding its 5-Star Worldwide service and amenity program, including conference facilities, as well as by upgrading building systems and pursuing LEED certification. The firm tells GlobeSt.com that due to a confidentiality agreement, it cannot disclose financial information regarding the purchase at this time.
“San Francisco is a focus market for us with 235 Pine St. representing the second asset we have purchased in that market in the last 12 months,” says Vance Maddocks, president of Strategic Partners US. “We believe this property will provide a great opportunity for firms looking to create the best possible experience for their employees.”
The building is located in the San Francisco Financial District between California and Market streets near plentiful amenities, including restaurants, gyms and public transportation. The property was constructed in 1990 with a French limestone façade and a unique column-free, side core design combining distinctive design with modern building systems. It offers smaller 8,000 square foot floor plates that will be attractive to tenants seeking 2,500 to 15,000 square feet of space with elevator and/or full-floor identity. In addition, the property provides an above-market parking ratio. The architecturally distinctive exteriors, modernized building systems and flexible floor plates fit both technology and service-oriented tenants seeking flexible space.
Maddocks isn't just betting on the San Francisco office market. Earlier this month, he told GlobeSt.com reporter Jennifer LeClaire that “Miami, which is a top 10 metropolitan office market in terms of forecasted rent growth, has a relatively diverse economy, strong ties to fast-growing Latin America, a large port, a well-developed trade infrastructure and a dynamic magnetism that draws domestic and international tourists,” when talking about his interest in the region following a 45-acre, 11-building office park buy.
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