SAN FRANCISCO—Laurus Corp., a US-based private real estate investment and development has closed the $72.6 million sale of 1155 Market St. in San Francisco, realizing over 56% Internal Rate of Return for investors.
Laurus purchased the 11-story, 140,000 rentable square foot office building in 2011 essentially empty, where the single tenant was vacating the asset. Laurus was able to quickly re-lease more than 75% of the building for a 10-year term to the City and County of San Francisco and implement tenant improvement renovations in just 90 days. In addition, Laurus executed a $14 million renovation of the building, including the façade, lobby, corridors, bathrooms, elevators, common areas and overall MAP systems toward LEED Gold certification and Ashrae compliance.
“When we acquired 1155 Market St., the San Francisco mid-market location was in the early stages of revitalization. We were able to capitalize on the momentum, executing a focused business plan and aggressively pursuing targeted goals, efforts that ended up achieving over three times (3x) equity multiple for our investors”, said Philip Cyburt, CEO of Laurus Corporation.
“We are extremely pleased and proud of our team’s execution on this project. Renovation, leasing and disposition efforts were not exempt from challenges, yet a laser-focused attention to detail from the organization proved to be key to success,” said Andres Szita, chairman and co-founder of Laurus.
“The Market St. asset is a prime example of Laurus’ ability to source opportunistic institutional quality real estate and effectively implement complex value-add strategies under time constraints,” said Jean Paul Szita, president of Laurus.
Most of the proceeds from the transaction will be rolled into Laurus’ real estate fund, the Ethika Diversified Opportunity Real Estate Fund, which was formed to provide investors access to a unique platform that tactically invests in opportunistic and value-add assets in the United States.
CBRE represented Laurus on both the lease with the City of San Francisco and in the sale of the building.