1155 Market is on the sales block—a rare occurrence these days in the wildly popular tech corridor. (It's easier to get Kanye West's sneakers than open space in this area.)
Pembrook Capital just closed $7.5M in preferred equity to help wrap up the renovation of the 143k SF office building, which is almost all leased to the City of S.F.; three floors are still up for grabs. We learned CBRE is actively marketing the building, located steps from BART. The upgrades will include glass to replace granite at the entrance of the building for more natural light (and to trap dumb birds), and developers are also adding a new façade for the first and second stories. Total capitalization of the property is about $50M.
Sources say interest from potential buyers has been very high, fueled by the office, retail, and residential interest in mid-Market. LA-based Laurus took a gamble and bought the building in 2011 for $27M when mid-Market was still relatively uncharted territory (that was the same year Shorenstein made the slam-dunk purchase of nearby 1355 Market, aka Twitter's HQ). Last month, Shorenstein CIO Charlie Malet (above) said the area is not that big and basically leased up. (The residential story there still has many chapters left, however, he adds.)
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