Old Fed The former home ofthe Federal Reserve Bank of San Francisco is a class-A creativeoffice building.

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SAN FRANCISCO—Designed by famed architect George Kelham, the OldFed has been a prominent landmark in the North Financial Districtsince its completion in 1924. Listed on the National Register ofHistoric Places, the iconic building at 301 Battery St. featureshistoric details including murals hand-painted by Jules Guérin, theBanking Hall, 25-foot marble columns, and custom designed walls andceilings.

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Today, the former 60-year home of the Federal Reserve Bank ofSan Francisco is a class-A creative office building. In a uniqueopportunity to acquire a prized San Francisco landmark, RFR HoldingLLC, a New York-based real estate investment company, recentlypurchased the asset for an undisclosed purchase price.

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CBRE's San Francisco investment sales team comprisedof  Mike Taquino, Kyle Kovac, Russell Ingrum, Mandy Leeand Giancarlo Sangiacomo represented the seller, Bently ReserveLLC. The CBRE capital markets debt and structured finance team inSan Francisco led by Mike Walker and Brad Zampa, and includingMegan Woodring and Taylor Shepard, arranged the financing for thistransaction.

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"The capital markets responded incredibly aggressively to thisfinancing opportunity. The landmark and irreplaceable 301 Batteryasset, coupled with the prolific RFR sponsorship, resulted in oneof the most accretive financing outcomes I've seen in this market,"says Walker.

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The San Francisco office market continues to benefit fromsignificant demand, especially from the technology sector. Averageclass-A office rents have experienced 7% growth in just the lastyear and now stand at $92 per-square-foot annually with just 2.5%vacancy. In 2019, 16 large deals of more than 100,000 square feetwere signed. Another 147 tenants are in the market, representingmore than 7.2 million square feet of tenant demand, according to aCBRE market report.

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"San Francisco continues to be the most sought-after commercialinvestment market in the world," Kovac tells GlobeSt.com. "RFR hasa unique opportunity to add additional value to a landmark assetwhich is already performing at a very high level."

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The North Financial District is San Francisco's most establishedand recognizable submarket, boasting several recognizableproperties including the historic Old Fed, the Transamerica Pyramidand the Embarcadero Center.

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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.