SAN FRANCISCO—A joint venture between ASB Real Estate Investments and Union Property Capital has inked a deal for the $20 million sale of 135 Mississippi Street, a 28,450-square-foot office building in the Potrero Hill submarket, south of the city's financial district. The sale of the property to an affiliate of Zurich Alternative Asset Management, LLC (“ZAAM”) was made by ASB on behalf of Meridian Fund I, a closed-end investment vehicle, and by ASB's joint venture partner, Union Property.

The joint venture acquired 135 Mississippi in 2012 at a significant discount to replacement cost, then upgraded building systems and re-tenanted the building to its current 100% occupancy. The investment has benefited from rising demand for space in Potrero Hill, one of the city's most dynamic neighborhoods, popular for its mixed-use environment and proximity to Mission Bay. The area is conveniently served by a vast public transportation network, a lively mix of cafes, high-end restaurants, a growing number of residential complexes and the new UCSF medical center.

“In meeting our value-creation strategy and given our holding period for the property, the timing of 135 Mississippi's sale is extremely opportune,” said Robert Bellinger, president and CEO of ASB Real Estate Investments. “We now have round-tripped all investments in Meridian Fund I, which we launched in 2010.”