{"id":1004153577,"date":"2016-09-27T01:41:35","date_gmt":"2016-09-27T09:41:35","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004153577"},"modified":"2020-05-11T03:47:36","modified_gmt":"2020-05-11T11:47:36","slug":"san-franciscos-tiffany-building-trades-hands","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/san-franciscos-tiffany-building-trades-hands\/","title":{"rendered":"San Francisco\u2019s Tiffany Building Trades Hands"},"content":{"rendered":"

By Barbra Murray, Contributing Editor<\/p>\n

\"The<\/a>

The Tiffany Building<\/p><\/div>\n

San Francisco<\/strong>\u2014The Tiffany Building in San Francisco has come under new ownership, courtesy of a transaction orchestrated by Cushman & Wakefield<\/a>. The commercial real estate services firm served as exclusive advisor to Greenstone Realty Advisors LLC<\/a> and 360 Post LP on the sale of the approximately 97,000-square-foot premier retail<\/a> and office<\/a> building to a group based in Europe.<\/p>\n

The Tiffany Building is high street retail at its best. Home to a Tiffany & Co.<\/a> flagship store for nearly a quarter-century, the 44-year-old property features 75 feet of coveted retail frontage along the well-traveled Post Street on Union Square, an internationally known luxury retail shopping district. And then there\u2019s the impressive office tenant roster, which includes the headquarters of Cathay Pacific<\/a>.<\/p>\n

\u201cLooking at this transaction, the current ownership did very well on holding the property, and the buyer, I think, is going to do extremely well as well,\u201d Seth Siegel, executive managing director with Cushman & Wakefield, told Commercial Property Executive<\/a><\/em>. \u201cPeople buy this kind of real estate not just because its iconic real estate but because when you see properties like this\u2014these rare properties in areas like Union Square\u2014they tend to have a history of outperforming the average type of investment.\u201d<\/p>\n

The Tiffany Building, which last traded in late 1995 for $22 million, according to San Francisco Planning Department records, attracted the attention of both domestic and international investors, including institutional capital, high net worth groups and the other usual suspects. While parties involved in the current transaction aren\u2019t publicly revealing the sale price at this time, Bay Area real estate publication The Registry<\/a><\/em> reports that the 11-story property traded for approximately $145 million.<\/p>\n

Without sharing so much as a hint of the financial specifics of the deal, Siegel noted that the undisclosed price tag speaks volumes. \u201cI think the proof is in the pudding in terms of pricing,\u201d he said. It\u2019s very unusual for this type of real estate to come to market, so when it does, you have countless trophy hunters that have what I would describe as a very voracious appetite. So it\u2019s not cycle specific; it\u2019s more about buying the best-of-the-best and putting your money to work in assets that will hold their value over time and continue to appreciate in the long run, and I think this asset certainly represents that.\u201d<\/p>\n

The magic extends beyond the Tiffany Building and Union Square; the San Francisco commercial real estate market in general is faring quite well. Per a Cushman & Wakefield report, the retail sector recorded an overall vacancy rate of just 1.7 percent in the second quarter, marking the lowest rate in at least a decade. Additionally, the average office vacancy rate is nothing to sneeze at either, coming in at 7.3 percent in the second quarter. Sales are strong as well, and replacement costs are through the roof, having risen from roughly $650 per square foot in the last cycle to north of 900 per square foot, noted Siegel. Rents are on the rise and demand remains strong. Will the party ever end in San Francisco? That\u2019s not the right question to ask, he said.<\/p>\n

\u201cThe question you have to ask about San Francisco is do you believe it\u2019s going to be a healthy market in the long run,\u201d Siegel explained. \u201cIf you need to be out of a deal within one or two years, then are you buying in San Francisco? Probably not. But if you\u2019re buying for four, five years plus, then it\u2019s an easy decision to make.\u201d He pointed again to such indicators as replacement costs and demand, and the migration of tech companies. \u201cAnd if you look at the transformation of the city just this last cycle, it\u2019s more vibrant than it\u2019s ever been,\u201d he added. \u201cAnd I think people believe that with the Transbay Transit Center<\/a> and the construction you see going on today, especially from a residential side, it\u2019s going to be a very, very viable and exciting place to be in five years. So I think that there\u2019s no shortage of people who believe in San Francisco, especially over a sustained period of time.\u201d<\/p>\n

Image courtesy of Kenmark<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Cushman & Wakefield orchestrated the $145 million sale of the iconic retail and office asset.<\/p>\n","protected":false},"author":969,"featured_media":1004153622,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21742,21747,21749,1609,15],"tags":[],"class_list":["post-1004153577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-latest","category-office","category-retail","category-san-francisco","category-west"],"acf":[],"yoast_head":"\nSan Francisco\u2019s Tiffany Building Trades Hands - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/san-franciscos-tiffany-building-trades-hands\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"San Francisco\u2019s Tiffany Building Trades Hands\" \/>\n<meta property=\"og:description\" content=\"Cushman & Wakefield orchestrated the $145 million sale of the iconic retail and office asset.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/san-franciscos-tiffany-building-trades-hands\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-09-27T09:41:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-11T11:47:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/09\/3.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"533\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Barbra Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/san-franciscos-tiffany-building-trades-hands\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/san-franciscos-tiffany-building-trades-hands\/\",\"name\":\"San Francisco\u2019s Tiffany Building Trades Hands - 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