The seven-story building has 117,435 square feet of office space with ground-floor retail.
SAN FRANCISCO—150 Post St. in Union Square was built in 1908 and structurally renovated in 2003. Located in one of the key US urban retail districts, one block from the North Financial District and one-and-one-half blocks from the Montgomery Street BART, the seven-story building comprises 117,435 gross square feet of office space with ground-floor retail, including Shreve & Co. Jewelers.
Privately owned San Francisco-based Urban Land Development in a joint venture with Urban Land Capital, an affiliated real estate private equity fund, and institutional investor Meyer Corporation recently acquired the asset from a joint venture of Madison Capital and an institutional real estate advisor. The price was undisclosed.
"Downtown San Francisco continues to be a high-growth market with strong demand drivers and high barriers to entry," said Jon Mayeda, CEO of Urban Land Development. "Through immediate renovations to the property, transforming the office space to a high-end creative office, we will create a more open, and thus desirable workspace for companies seeking flexibility. With the nearby retail and restaurants in the Union Square neighborhood, the 150 Post property is in a prime submarket that is undersupplied and will enjoy improved access upon the completion of the Central Subway."
This interior repositioning will begin by uncovering the 14 to 15-foot concrete slab-to-slab ceiling heights, reconfiguring suites to occupy half or full floors of up to 14,000 square feet and creating an open office floor plan. Although the area is traditionally known for high-end retail which comprises 25% of the building, the upper floor offices represent a value-add opportunity with a steady lease rollover of 40% of the building in the next three years, which is key to Urban Land Development's strategy.
Further bolstering 150 Post's desirability is the anticipated completion of the Central Subway in 2021. The new light railway will extend its service to Union Square, providing another point of public transportation to the area.
"As a local real estate firm, we understand and continue to have confidence in the economic benefits of high-demand office space in Union Square that supports a more sustainable rental platform for the retailers," Mayeda tells GlobeSt.com. "It is a win for business, retail and even the international draw to San Francisco."
Kazuko Morgan of Cushman & Wakefield served as the broker.
Cable Car Clothiers' flagship store was established at 150 Post in the 1940s, and thrived in conjunction with a booming catalog and mail order business until the early 1980s when it moved to another Union Square location, GlobeSt.com learns. And, Shreve & Co. Jewelers has been in the building since 2016.
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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.
