CBRE has brokered the off-market sale of 945 Bryant Street, an approximately 42,000-square-foot (sq. ft.) office building located in the SoMa submarket of San Francisco.
Bridgeton Holdings sold the property to Chilean-based Stars Investments in partnership with San Francisco-based The Swig Company. Kyle Kovac, Michael Taquino, Mandy Lee, and Giancarlo Sangiacomo of CBRE Capital Markets represented the buyer in the transaction. CBRE’s Debt and Structured finance team led by Mike Walker and Brad Zampa arranged the financing on behalf of the buyer.
This marks Bridgeton’s second office exit in San Francisco after the Pioneer Building. “We are proud to have added significant value to this asset and will continue to do so across our portfolio by leveraging our entrepreneurial approach, vertically integrated platform, and extensive relationships,” said Atit Jariwala, Bridgeton’s CEO.
Bridgeton acquired the building in late 2017 for $27 million to capitalize on the near-term expiration of tenants paying significantly below market rents. At the time, the building was leased to a mix of technology and professional services tenants. “We recognized the opportunity to recapture and re-lease the building at market rents and subsequently negotiated a full building lease to the City and County of San Francisco,” said Bridgeton’s CIO, Akash Sharma.
The three-story building is fully leased to the City and County of San Francisco for a 20-year term. The City will phase into the building between now and 2020 as in-place tenant leases expire. Substantially renovated in 1999 and 2013, the property has been substantially improved including open floor plans, exposed ceilings, and a private deck. The property sits on a 50,000 square foot lot.
“San Francisco continues to be the most sought-after investment market in the world,” said Kyle Kovac, an executive vice president with CBRE.
Ideally positioned in San Francisco’s SoMa district, which is regarded as one of the nation’s epicenters of technology and innovation, 945 Bryant Street is adjacent to the headquarters of several prominent Bay Area tech firms. At approximately $87 per square foot, average Class A asking rates in the submarket are among the highest in the United States with vacancy rates at 4.5 percent, continuing their historic lows.
945 Bryant Street is conveniently located near public transit with multiple Muni lines at its doorstep, immediate access to I-80 and I-280 and the San Francisco Caltrain station just four blocks away, making it an ideal long-term home for the City and County of San Francisco.
About Stars Investment
Solely owned by Felipe Ibañez Scott, Stars investments was founded in 2009 as an investment management company that handles a privately held financial, private equity and real estate portfolio. Felipe Ibañez Scott was one of the owners of D&S, the largest supermarket chain in Chile which was sold to Walmart in phases between 2008 to 2014. As of today, Stars Investments real estate portfolio includes holdings in London, Manchester, Denver, Boston, Cambridge, Seattle, Washington D.C., New York City, and the Bay Area, and totals more than 1.3 million square feet. For more information, visit: www.starsrei.com.
About The Swig Company
The Swig Company, LLC is a privately-owned, San Francisco-based real estate operator with a 75+ year history of investment, development, partnership and management of commercial real estate properties in major US markets. Founded by Benjamin Swig, The Swig Company is guided by a long-term investment perspective that has proven adept at stewarding investors safely through multiple market cycles. The company’s vertically-integrated operational platform, which includes investment, asset and property management expertise, uses flexibility, generational thinking and a sensitivity to sustainable practices to stay at the forefront of emerging trends in the commercial real estate industry. For more information, visit: www.swigco.com.
About Bridgeton Holdings LLC
Established in 2009 as a partner for investors seeking value-add real estate investments, Bridgeton is a full-service real estate firm with in depth expertise in investment management, development, property management and hotel management. Bridgeton has significant strength in value-add strategies and proven investment discipline across all property types, including office, residential and hospitality. Bridgeton’s investments are focused primarily in New York, San Francisco and Boston, as well as major secondary markets. Bridgeton is headquartered in New York, with offices in San Francisco and St. Louis.
Over the past 10 years, Bridgeton has been actively involved in over 60 properties. For more information, visit: www.bridgeton.com.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
