351 California is a 16-story 140,047-square-foot office building in the Financial District.
SAN FRANCISCO—Built in 1920, 351 California is one of the most recognized historic office buildings in the Financial District. The 16-story 140,047-square-foot office building features distinct architectural details, U-shaped floorplates and exposed ceilings.
Polidev invested approximately $8 million in the property with a partial renovation in 2010 and a significant seismic retrofit in 2015. The firm recently sold 351 California for $108 million, GlobeSt.com learns.
Tidewater Capital and affiliates of the Goldman Sachs merchant banking division purchased the property. Kyle Kovac, Mike Taquino, Russell Ingrum, Mandy Lee and Giancarlo Sangiacomo of CBRE's San Francisco office represented Polidev.
The building is currently 89% occupied by a diverse roster of tenants, including tech and professional services firms. Its prime Financial District location is saturated with restaurants, cafes and retailers. The building also provides immediate transportation access with BART and MUNI stations just blocks away.
San Francisco continues to be the top-performing tenant and investment market in the United States, driven by more than 5 million square feet of tenant demand. Average class-A asking rates now hover around $86 per square foot while vacancy remains steady at 3.2%, according to CBRE.
The Financial District is consistently one of San Francisco's most desirable submarkets with overall class-A asking rents of $87.12, the highest in the city and representative of the area's continued strong tenant demand.
"Office sales volume in San Francisco is on pace to match or surpass the $8.45 billion record established in 2007," Kovac tells GlobeSt.com. "So far, approximately $4.8 billion of office product has sold year-to-date with an additional $3.2 billion under contract and on the market."
The average household income in zip code 94104 is $113,607 from a total of 248 households. In terms of employment, there are 92.05 % white-collar and 7.95 % blue-collar jobs in zip code 94104, according to Commercial Café.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
