San Francisco, CA – CBRE Capital Markets’ announces the sale and financing for a creative office building at 153 Townsend Street. The nine-story, 179,000 square-foot Class A building is located across from Oracle Park in the SOMA district of San Francisco.
CBRE’s San Francisco Investment Sales team, comprised of Mike Taquino, Kyle Kovac, and Giancarlo Sangiacomo, advised on the transaction with the Seller American Realty Advisors and the Buyer Ellis Partners. The purchase is the first investment in Ellis Partners’ EPNY investment vehicle which was formed to acquire and manage core office, industrial and retail properties in the San Francisco Bay Area. “We are thrilled to be adding 153 Townsend to our core portfolio and look forward to identifying complementary investments to fill out the balance of our venture. We are grateful to Mike Taquino, Kyle Kovac, and the entire CBRE team for their expert help on this important acquisition”, said Jason Morehouse, Partner and Director of Acquisitions at Ellis Partners.
CBRE’s San Francisco Debt & Structured Finance team, led by Mike Walker and Brad Zampa, arranged the non-recourse, fixed rate financing with full-term interest only payments from a Life Insurance Company on behalf of the buyer, Ellis Partners.
The property sits across the street from Oracle Park and was originally constructed in 2002. The building is 100 percent leased and features 379 parking stalls. Amenities include bike storage, showers and locker rooms. 153 Townsend also offers large decks on upper floors, providing expansive views of San Francisco Bay and SOMA. The Caltrain terminal and Central subway are within two blocks of the site, providing immediate access to public transit.
“153 Townsend represents the best-in-class core creative asset in the SoMa submarket,” said Mr. Taquino.
San Francisco’s South of Market (SoMa) is ground zero for some of the world’s most well-known companies with many beginning as startups within the submarket’s boundaries. Today, SoMa is widely recognized as the center of the tech industry with dozens of innovative “unicorn” companies in the area. The submarket continues to draw private capital investing in new office and residential development. In addition to private capital, the City of San Francisco’s investment in major infrastructure projects such as the Transbay Terminal and Central Subway will continue to distinguish SoMa as a world-class location.
Mr. Walker added, “We had incredibly aggressive quotes from both banks and life insurance companies to finance this acquisition for Ellis Partners. Ultimately, the Life Company financing we structured aligned best with the sponsor’s business plan to hold this asset long term. Our lending partners have incredible conviction around the long-term prospects for the San Francisco office market and when you combine an asset of this quality, location and institutional sponsorship, we are seeing very favorable outcomes.”
The seller, a fund managed by American Realty Advisors (“ARA”), has owned the property since 2012.
Albert Pura, a Senior Director in ARA’s Investment Group, congratulated Ellis Partners and CBRE on the successful closing. He also thanked Eastdil Secured for its longtime advisory on the asset.
About American Realty Advisors.
American Realty Advisors (” ARA”) is a premier private equity real estate investment manager of institutional quality commercial real estate portfolios with more than $10.1 billion in assets under management. ARA is a fiduciary to its clients and acts in the best interests of its investors. For more information regarding ARA, please visit www.aracapital.com.
About CBRE Group, Inc.
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.