The high-end office market just heated up with American Realty Advisors acquiring Foundry Square III in San Francisco’s Transbay District from a JV of Tishman Speyer and JP Morgan Asset Management. The building sold for $350M ($1,200/SF), nearly double the $170M the JV put into the original development, according to the San Francisco Business Times.
The Class-A trophy office building was built in 2014 and is one block from the Transbay Transit Center. ARA bought the asset on behalf of one of its open-ended commingled real estate funds.
ARA senior director Drew Hess said this acquisition is the ultimate core investment.
"We see San Francisco continuing to lead global innovation with this location as its epicenter," Drew said.
The LEED Gold certified 10-story, 291,093 SF building is 100% leased with tenants such as IBM, Nasdaq, Perkins Coie, Neustar and Silicon Valley Bank. The building includes ground-floor retail, state-of-the-art building systems and floor-to-ceiling glass. Amenities include an open air sky deck, large floor plates and a two-story lobby with a living wall.
Eastdil Secured senior managing director Jeffrey Weber and managing director Stephen Van Dusen repped the seller.
ARA's portfolio also includes 153 Townsend in SoMa.
