NGKF Capital Markets, part of Newmark Cornish & Carey, today announced that Long Market Property Partners and Columbia Pacific Advisors sold 995 Market Street in San Francisco to Bridgeton Holdings for $62 million. The 15-story property has a commanding corner presence as the tallest building within a two-block radius offering unobstructed 360-degree views of San Francisco. The office building is fully leased with collaborative co-working space leader, WeWork, occupying the majority of the space.
“We are extremely pleased to have acquired this high quality asset in downtown San Francisco’s Mid-Market District,” said Atit Jariwala, CEO of Bridgeton Holdings. “995 Market Street represents our third major San Francisco acquisition and we look forward to continuing to grow our portfolio in this vibrant city.” Bridgeton is also set to open its San Francisco office this spring to focus on sourcing and executing investment opportunities on the West Coast. Akash Sharma, Managing Director, will head up the new office.
In 2013 Long Market Property Partners and Columbia Pacific Advisors jointly purchased 995 Market Street and began a comprehensive redevelopment of the property which included significant base building upgrades, a seismic retrofit, exterior improvements and state-of-the-art tenant finishes. Newly renovated, the property was well positioned to attract substantial interest from both domestic and international buyers.
“From day one we believed that with the right capital plan and vision, 995 Market had the potential to be one of the premier office assets in its neighborhood,” said Justin Shapiro, principal of Long Market Property Partners.
“The successful renovation and repositioning of 995 Market is a key part of the turnaround of one of the fastest growing neighborhoods in San Francisco,” said Todd Seneker, managing director of Real Estate Equity at Columbia Pacific Advisors.
“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 with Daniel Cressman, executive managing director, and Michael Taquino, senior managing director.
Since the implementation of the Payroll Tax Exemption program in 2011, the Mid-Market neighborhood has become a hotbed for high tech companies - Twitter, Uber, Square, Spotify, Dolby, Zendesk and Yammer have all set up shop there. In fact, in the past three years more than three million square feet has been absorbed by new tenants there; vacancy is currently just 1.6 percent and rental rates have increased by 40 percent. The influx of companies and workers precipitated the next stage of growth in Mid-Market. More than 7,000 residential units are currently under construction, approved or planned and retail and hotel development is also trending.
About Newmark Cornish & Carey
A dominant regional real estate force since 1935, Newmark Cornish & Carey has an expansive reach as part of Newmark Grubb Knight Frank, one of the world’s leading commercial real estate advisory firms. Regionally, Newmark Cornish & Carey has more than 280 agents in 13 strategically located offices throughout Northern California, creating a powerful platform from which to deliver superior services locally, while upholding its core values of integrity and knowledge. For further information, visit www.newmarkccarey.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,800 professionals operate from more than 370 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.