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Thursday, 15 December 2016

American Realty Buys San Francisco's Foundry Square III

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American Realty Advisors has purchased Foundry Square III, a 291,093-square-foot office building in San Francisco's Transbay district, for what is said to have been about $350 million, or just more than $1,200/sf.

The Glendale, Calif., investment manager, which has some $8 billion of assets under management, bought the 10-story building, at 505 Howard St., from its developer, a venture between Tishman Speyer Properties and JPMorgan Asset Management. It bought the property on behalf of an open-ended fund it operates.

The $350 million price tag is believed to take into account sales costs, sundry fees and expenses.

Tishman had purchased the site for the building, a former parking lot, in 2012 for $41 million. It then partnered with JPMorgan on the development, which is said to have cost another $130 million and was completed two years ago. It since has leased it up, most recently signing Tealeaf, an IBM affiliate, to 85,000 sf. Other tenants include Perkins Coie, Silicon Valley Bank and Nasdaq.

The property straddles the South Financial and South of Market Street submarkets and is a block from the Transbay Transit Center, a $4.5 billion regional mass-transit hub. It has a sky deck on its top floor and a two-story lobby.

"Acquiring a recently completed high-quality asset with long-term leases in place to creditworthy tenants at First and Howard streets is the ultimate core investment," explained Drew Hess, senior director of the investment group at American Realty. "We see San Francisco continuing to lead global innovation with this location as the epicenter."

In San Francisco, the investment manager also owns 153 Townsend, a 168,000-sf building in the SoMa district that it bought four years ago for $93.75 million.

The Tishman venture was represented in the sale by Eastdil Secured.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: San Francisco
  • States: California
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Valuation: More than $150 million
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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