SAN FRANCISCO—The partnership of The Swig Company and Medley Partners purchased 901 Battery in December 2012. The 89,904-square-foot creative office building with adjacent parking structure is located in the North Waterfront-Jackson Square submarket, one that is growing in popularity with creative tenants.
The Swig/Medley partnership immediately instituted a capital investment program designed to reposition the four-story building as an institutional-quality asset. As part of the program, Swig executed a seismic retrofit, lobby and façade renovations, and upgrades to each tenant floor. The renovated building features open floorplates, natural light and high ceilings.
The four-story building benefits from the $5.4 million investment in improvements, further positioning the asset for mid-size technology tenants seeking creative space. The building is home to a diverse group of tenants in technology communications and architecture, including Viscira and architectural firms BAR and KMD.
The partners recently sold the building to Shorenstein Company. Terms of the transaction were not disclosed but when the property went under contract, the approximate price was $55 million, GlobeSt.com learns.
“The repositioning of 901 Battery succeeded both as a tribute to the building's historic presence in the North Waterfront neighborhood through the façade restoration, and as an expression of strong, contemporary design in the reconstruction of interior lobbies and path-of-travel, all of which resonate strongly with today's creative tenants,” said Deborah Boyer, executive vice president of asset management, The Swig Company.
Newmark Knight Frank's executive managing director, Kyle Kovac, along with Michael Taquino, Daniel Cressman and Mandy Lee represented the sellers in the transaction.
“There was strong demand for this property given the great repositioning work the seller had done,” said Kovac. “They recognized the opportunity to leverage the building's unique features and take greater advantage of an established submarket that is getting increased attention from technology companies and venture capitalists.”
901 Battery Street includes ceiling heights ranging from 13'8” to 15'10” expansive windows and views of the bay. The property also has a separate 4,100-square-foot parcel used as a parking structure which can be entitled and developed.
“Shorenstein has the ability to substantially increase the yield in the near term by capitalizing on market rents as leases expire,” adds Kovac. “The Swig Company and Shorenstein are two of the most established real estate family offices in San Francisco. Their involvement in 901 Battery further underscores the strength of this asset and submarket.”
NKF notes that the North Waterfront-Jackson Square submarket has a combined vacancy rate of 5.6%. Recently, the submarket has recorded an increase in activity and new leases being signed in the $70 to $80 per square foot range.
“The Jackson Square-North Waterfront has experienced a recent rebirth as technology companies and venture capital firms continue to make commitments to the submarket along with a flood of trendy boutiques and restaurants that have created a new 'high-street' in San Francisco,” Kovac tells GlobeSt.com. “As such, the submarket will continue to appreciate more rapidly than others in the city.”
Medley Partners manages private market investments on behalf of Jim Simons' family and affiliated foundations. The partnership invests primarily in limited partnerships across the private asset classes, including buyout, growth equity, venture capital, real estate and credit in the United States, Europe and Asia. Medley will also participate in co-investment opportunities with existing managers and direct investments in real estate with experienced operating partners.
SAN FRANCISCO—The partnership of The Swig Company and Medley Partners purchased 901 Battery in December 2012. The 89,904-square-foot creative office building with adjacent parking structure is located in the North Waterfront-Jackson Square submarket, one that is growing in popularity with creative tenants.
The Swig/Medley partnership immediately instituted a capital investment program designed to reposition the four-story building as an institutional-quality asset. As part of the program, Swig executed a seismic retrofit, lobby and façade renovations, and upgrades to each tenant floor. The renovated building features open floorplates, natural light and high ceilings.
The four-story building benefits from the $5.4 million investment in improvements, further positioning the asset for mid-size technology tenants seeking creative space. The building is home to a diverse group of tenants in technology communications and architecture, including Viscira and architectural firms BAR and KMD.
The partners recently sold the building to Shorenstein Company. Terms of the transaction were not disclosed but when the property went under contract, the approximate price was $55 million, GlobeSt.com learns.
“The repositioning of 901 Battery succeeded both as a tribute to the building's historic presence in the North Waterfront neighborhood through the façade restoration, and as an expression of strong, contemporary design in the reconstruction of interior lobbies and path-of-travel, all of which resonate strongly with today's creative tenants,” said Deborah Boyer, executive vice president of asset management, The Swig Company.
Newmark Knight Frank's executive managing director, Kyle Kovac, along with Michael Taquino, Daniel Cressman and Mandy Lee represented the sellers in the transaction.
“There was strong demand for this property given the great repositioning work the seller had done,” said Kovac. “They recognized the opportunity to leverage the building's unique features and take greater advantage of an established submarket that is getting increased attention from technology companies and venture capitalists.”
901 Battery Street includes ceiling heights ranging from 13'8” to 15'10” expansive windows and views of the bay. The property also has a separate 4,100-square-foot parcel used as a parking structure which can be entitled and developed.
“Shorenstein has the ability to substantially increase the yield in the near term by capitalizing on market rents as leases expire,” adds Kovac. “The Swig Company and Shorenstein are two of the most established real estate family offices in San Francisco. Their involvement in 901 Battery further underscores the strength of this asset and submarket.”
NKF notes that the North Waterfront-Jackson Square submarket has a combined vacancy rate of 5.6%. Recently, the submarket has recorded an increase in activity and new leases being signed in the $70 to $80 per square foot range.
“The Jackson Square-North Waterfront has experienced a recent rebirth as technology companies and venture capital firms continue to make commitments to the submarket along with a flood of trendy boutiques and restaurants that have created a new 'high-street' in San Francisco,” Kovac tells GlobeSt.com. “As such, the submarket will continue to appreciate more rapidly than others in the city.”
Medley Partners manages private market investments on behalf of Jim Simons' family and affiliated foundations. The partnership invests primarily in limited partnerships across the private asset classes, including buyout, growth equity, venture capital, real estate and credit in the United States, Europe and Asia. Medley will also participate in co-investment opportunities with existing managers and direct investments in real estate with experienced operating partners.
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