The 28k SF Potrero Hill office building just traded to an affiliate of Zurich Alternative Asset Management for $20M. The seller is a JV between ASB Real Estate Investments and Union Property Capital, which bought it in 2012 at a significant discount to replacement cost, then upgraded building systems and brought in new tenants, bringing the building to its current 100% occupancy. ASB CEO Robert Bellinger says the firm has now round-tripped all investments in its Meridian Fund I, which launched in 2010.
The sale comes just weeks after ASB scooped up De Haro Place, a creative office building and an adjacent vacant building, from Ares Management for $92.7M. The Class-A 138k SF office building was built in 1927 and got a big redo in 2013 to attract tech tenants, with a dramatic two-story atrium, vaulted ceilings and skylights. Now it's fully leased to seven tenants. The adjacent property is three stories with 12k SF. The 1930s-era building is empty and primed for renovation or redevelopment as office, retail or multifamily.
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