Originally completed in 1902 at 116 New Montgomery St. in theSouth Financial District, the Rialto Building has eight stories ofoffice space above street-level and mezzanine retail space. Theproperty is 88% occupied by tenants including Trust for PublicLand, Walgreens and Chipotle Grill.


Wilemon and director Zane Sweet (HFF San Francisco) worked onbehalf of Steven Firtel, corporate counsel and director ofdevelopment for Bomel. Firtel says the financing "will enable us toimplement a long-term leasing and capital improvements plan on theRialto."


HFF managing director Larry Wilemon says proceeds from thethree-year loan also are being used to defease the existing loan onthe property and pay off an unsecured note. Bomel intends to holdthe property long term, he says.


"The Rialto Building is a tremendous value-add opportunity dueto a majority of the leases being below market and expiring withinthe next six to 36 months," Wilemon says. "In a market that hasseen rents increase from $24 per square foot to roughly $40 persquare foot for Class B office space, this is a perfect time forthe current owners to reposition the building and raise rents tomarket levels."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.