Mission Capital Advisors, a national real estate services firm, announced that it had arranged a $45 million acquisition loan for 995 Market Street in San Francisco on behalf of Bridgeton Holdings, a fully integrated owner, developer, and manager of commercial and residential real estate. Bridgeton purchased the 91,300 square foot tower for $62 million, or approximately $680 per square foot. The 15-story building was first placed on the market in October of 2015 by a joint venture between Seattle-based investment firm Columbia Pacific Advisors and San Francisco-based real estate company Long Market Property Partners, who at the time expected it to sell for $60 million. The JV originally acquired the property in 2013 for an undisclosed sum, though the building reportedly sold for $17 million. Columbia Pacific and Long Market redeveloped the property to include significant base building upgrades, a seismic retrofit, exterior improvements and state-of-the-art tenant finishes.
"995 Market Street is a prime example of the radical transformation that has taken place in the Mid-Market neighborhood over the past few years. Since 2012, more than $1 billion of commercial redevelopment has been invested into the area, creating the most dynamic submarket in San Francisco," said Kyle Kovac, a Newmark Cornish & Carey senior managing director who marketed the property for sale.
"The building will be a long term asset for us, as we continue to amass strategic properties in transitioning markets that have improving neighborhood dynamics and strong supply and demand fundamentals," said Atit Jariwala of Bridgeton Holdings.
Built in 1962, the property has a commanding corner presence as the tallest building within a two block radius, offering unobstructed 360-degree views of San Francisco. 995 Market Street is located within the Payroll Tax Exclusion zone, and benefits from the economic incentive plan implemented by the City of San Francisco in 2011 to attract tenants to the mid-Market area. The office space is currently leased to WeWork and a non-profit tenant, while the retail component is full occupied by CVS on a long-term lease.
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