By Jeff Hamann
Swift Real Estate Partners has purchased the Sharon Building, a 103,861-square-foot historic office property in San Francisco, from Bernheim Cos. for $64.3 million, according to Yardi Matrix. A private lender originated $71.5 million of acquisition and development financing, which the new owner will use to renovate the 1912-built property. The mortgage terms provide for interest-only payments over the five-year term of the loan.
Located at 55 New Montgomery St. in the city’s South Financial District, the nine-story building is within a quarter mile of nearly 19 million square feet of Class A office space. Offering accessibility with a location two blocks from a BART station, the asset is situated less than 1 mile from Interstate 80. A wide variety of retailers and hotels operate in the immediate area.
The building is almost fully leased, with a vacancy rate of 1.3 percent, per Yardi Matrix data. The property’s tenants include an extensive roster of law firms and medical offices, as well as Caldwell Securities, Tax Aid and BRS Media. In addition to the office element, the asset contains around 13,500 square feet of retail space.
In May, Swift picked up a nearly 220,000-square-foot office tower a mile southwest of the Sharon Building for $110 million. That property previously changed hands in 2007 for $43 million.
Image courtesy of Yardi Matrix