Newmark Knight Frank (NKF) has completed the sale of 901 Battery Street, an 89,904-square-foot office building located in the North Waterfront-Jackson Square neighborhood. The building benefits from a recent $5.4 million investment in substantial improvements further positioning the asset for mid-size technology tenants seeking creative space.
“There was strong demand for this property given the great repositioning work the seller had done,” said Kovac. “They recognized the opportunity to leverage the building’s unique features and take greater advantage of an established submarket that is getting increased attention from technology companies and venture capitalists.”
901 Battery Street encompasses a number of standout features that include ceiling heights ranging from 13’8” to 15’10”, large and expansive windows, and views of the San Francisco Bay. The Swig Company and Medley Partners completed a number of improvements such as lobby and façade renovations and state of the art tenant improvements. The property also has a separate 4,100 square foot parcel used as a parking structure which can be entitled and developed.
The four-story building is home to a diverse group of tenants in technology communications and architecture. “Shorenstein has the ability to substantially increase the yield in the near-term by capitalizing on market rents as leases expire,” added Kovac. “The Swig Company and Shorenstein are two of the most established real estate family offices in San Francisco. Their involvement in 901 Battery further underscores the strength of this asset and submarket.”
NKF noted that the North Waterfront-Jackson Square submarket has a combined vacancy rate of 5.6 percent. Recently, the submarket has seen an increase in activity and new leases being signed in the $70 to $80 per square foot range.
With the completion of 901 Battery, Kovac, Taquino, and Cressman have closed eight San Francisco office buildings to date for 2017, a substantial market-leading statistic.
About Newmark Knight Frank
Newmark Knight Frank (NKF) is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NKF’s strong foundation makes it one of the most trusted names in commercial real estate. NKF’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.
NKF 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.
About The Swig Company
The Swig Company, LLC is a privately-owned, San Francisco-based real estate operator with an 80 year history of investment, development, partnership and management of commercial real estate properties in major US markets. Founded by Benjamin H. Swig in 1936, The Swig Company is guided by a long-term investment perspective that has proven adept at stewarding investors safely through multiple market cycles. The company’s vertically-integrated operational platform, which includes investment, asset and property management, and leasing expertise, uses flexibility, generational thinking and sensitivity to sustainable practices to stay at the forefront of emerging trends in the commercial real estate industry. For more information, visit: www.swigco.com.
About Medley Partners
Medley Partners manages private market investments on behalf of Jim Simons’ family and affiliated foundations. Medley invests primarily in limited partnerships across the private asset classes, including buyout, growth equity, venture capital, real estate and credit in the United States, Europe and Asia. Medley will also participate in co-investment opportunities with existing managers and direct investments in real estate with experienced operating partners. For more information, visit www.medleyp.com.