SAN FRANCISCO, CA (August 20, 2024) –– Flynn Properties and Ellis Partners, two of California’s leading real estate investment firms, today announced their acquisition of a 109,000-square-foot historic office building in San Francisco’s South Financial District. The LEED Platinum and Energy Star rated property is located at 631 Howard Street and offers five floors of Class A creative office space.
Reflecting Ellis Partners’ and Flynn Properties’ belief in the city’s post-pandemic recovery, the joint acquisition comes at a time when many investors are still harboring a bearish outlook on San Francisco’s commercial real estate market. Fully leased to SC Johnson and Finix, 631 Howard will provide immediate income generation for both investors’ portfolios.
“I don’t believe it’s a question of whether San Francisco will recover” said Greg Flynn, Founder and CEO of Flynn Properties, “I just think it’s a question of when. Opportunities abound for investors right now in the Bay Area, and 631 Howard was a true diamond in the rough for Flynn Properties and Ellis Partners. Fully leased, it’s an asset that will provide immediate cash flow and thanks to recent renovations, the property requires relatively little capital investment to maintain occupancy. The future is bright for San Francisco and we’re proud to be playing a role in its return to glory with investments across the city in both commercial real estate and hospitality.”
Nearly a century old, more recent renovations to the 1929 Art Deco building include open floor plans, modern finishes, exposed ceilings and natural lighting. Tenants enjoy amenities including upgraded building systems, secured parking, bike storage, as well as showers and lockers. With return-to-office rates continuing to climb, 631 Howard is perfectly situated near all major transit options in San Francisco’s South Financial District. The building’s prominent location at the terminus of New Montgomery and Howard provides clear sight lines from Market Street and high value branding for building tenants interested in the signage that comes with the building.
“We believe we are at an inflection point in San Francisco’s recovery and properties like 631 Howard will continue to outcompete during the rebound of this great city,” said Jim Ellis, Co-Founder of Ellis Partners. “Together with Flynn Properties, we’re thrilled to be the next steward of this iconic San Francisco building, to continue to create elevated tenant space solutions and ultimately to enhance value for our investors”, said Melinda Ellis Evers, Co-Founder of Ellis Partners.
“It was a pleasure working with the talented JLL Investment team to get this transaction across the finish line,” added Jason Morehouse, Chief Investment Officer at Ellis Partners.