San Francisco
Ivanhoé JV Joins Goldman, Greystar in 27 M-F Properties
Ivanhoé Cambridge has made its largest multi-family investment, joining a partnership of Goldman, Sachs & Co. and Greystar in the $1.5 billion acquisition of 8,010 multi-family units from Equity Residential.
115 Sansome Street Building Acquired by Harvest Properties, Set for Conversion to Creative Space
Harvest Properties will now carry out extensive renovations that will strip the building of its existing, more traditional tenant improvements. The company will then work with architecture firm Hooks ASD and contractor RN Field to highlight the building’s strong suites through new creative office space. The new owner is betting that such a property in a location like San Francisco’s North Financial District would be a welcome alternative to Class A office space or commodity space.
Hines, Boston Properties Break Ground on 101 First St. in San Fran
Boston Properties and Hines have closed on the $192 million purchase of 101 First St. in San Francisco, where they will erect the 60-story, 1.4 million-square-foot Transbay Transit Tower, the tallest building on the West Coast.
Walnut Creek Apartment Portfolio Trades Hands for $64.3 Million
A multifamily portfolio recently traded hands in the city of Walnut Creek after the completion of a deal made between seller JB Matheson and new owner Interstate Equities Corporation. Arranged by Marcus & Millichap’s multifamily brokerage division of Institutional Property Advisors, the deal includes three different apartment buildings located in Walnut Creek, the main business and entertainment hub of Contra Costa County. The fee that IEC paid for the residential portfolio stood at $64.3 million, according to a press statement issued by IPA.
Pleasant Hill Retail Property Trades Hands in $100 Million Deal as Retail Rates Make a Comeback
The Downtown Pleasant Hill retail center offers 345,687 square feet of commercial space in San Francisco’s Pleasant Hill community. The center is the area’s main commercial hub, featuring a 40-strong tenant roster that includes names such as Century Theaters, Lucky Supermarket, Bed Bath & Beyond, Michaels, Ross, Golfsmith, Paul Mitchell the School and Zachary’s Chicago Pizza. Loja Group LLC, a real estate investment management entity controlling Loja Real Estate LLC, has praised the newly offloaded property in a press statement as being a “strong property”. Katherine Burr, Loja Group LLC CEO said that “this was the opportune time to sell and advance other important initiatives at Loja”.
Over-Performing San Francisco Office Market Produces Yet Another Office Deal
San Francisco’s improving office market has produced yet another deal after a joint venture created by Hines and Invesco Real Estate moved to acquire an iconic construction located in the city’s South Financial District. The two real estate companies have completed a deal making their joint venture the new owner of the Rialto Building. While official financial terms for the deal were not disclosed, market specialists place the transaction’s value at around $57 million. The entity selling the Rialto Building was Africa Israel USA, AFI USA.
Former Solyndra Factory Given New Life as Seagate Unveils R&D Facility Plan
The old Solyndra site will be given a complete makeover as it morphs into a $180 million state-of-the-art R&D facility. Located on Kato Road, in Fremont, the 411,000-square foot complex was bought by Seagate earlier this year for a fee of $90 million, San Jose Mercury News writes. The rest of the $180 million-budget will be directed towards acquiring and installing the equipment that will turn the former factory into a Seagate facility that would create up to around 600 jobs in the field. According to Mercury News, Seagate shopped around the Bay Area and Silicon Valley looking at around 40 potential locations to house this new project.
Essex Property Trust Picks up Fox Plaza Residential Component, Commits to Improvement of New Asset
The acquisition deal did not include the lower floors featuring commercial office space. However, an adjacent two-story, 37,800 square-foot commercial building was part of the agreement. The REIT’s interest in this second building is clearly linked with the fact that there is permitting in place for a 250-unit, 11-story apartment development. While Essex maintains that it has no immediate intentions of activating the entitlement, the entity has confirmed that the possibility of developing the tower will be evaluated in the future.
Essex Buys Fox Plaza in SF for $135M
Last year, Essex Property Trust made more than $800 million in M-F acquisitions in California and the Seattle area. The REIT is continuing its spending this year, picking up Fox Plaza, a 444-unit property in San Francisco’s Mid-Market district, for $135 million from Archstone.
Hotel Durant Acquired by Gemstone Hotels & Resorts in $27M Deal
The 144-key hotel is located 2600 Durant Dr., in the immediate proximity of the University of California Berkeley campus. The boutique hotel offers a great location, within walking distance of Cal Bears Stadium and the Lawrence Hall of Science. The in-room amenities include high thread-count linens, hypo-allergenic pillows, ceiling fans and black-out shades, iPod docking stations, organic robes and laptop safes. Additionally, graduate floor rooms benefit from a concierge-style service with daily complimentary breakfast servings and wine hour events.