Less than a year after picking up a 50k SF building at 166 Geary in Union Square, an LA-based landlord has big plans to reposition the old building. Bisnow toured the property with Concord Real Estate Services asset director Aric Ohana, who gave us all the details.
Aric tells us the property is about to undergo a big makeover under his watch that will include a modernized lobby with white marble and refurbished elevators with glass enclosures. Here's Aric in one suite up for grabs (there's a proposal in place from a skin care doctor).
Concord bought the 16-story building last fall for $60M with two other groups, and the goal is to re-tenant the building. It was built in 1907 during the earthquake and fires and its steel frame was able to withstand nature's forces that caused all that damage around town. Right now there are a lot of salons and doctor offices inside, and the plan is to plug in more professional services, such as law firms, architects and tech companies. Aric says the firm is looking for more full-floor tenants, which would entail blowing out walls with the elevator in the middle.
At first the new owners were exploring a residential conversion into condo units, but Aric says the retrofit was going to be too costly. Office sale prices have shot up big time in the past 24 months, but his firm is actively looking to tack on more properties in the city. And rents at 166 aren't cheap, as Aric says they range from $63/SF to $75/SF.
This dramatic shot Aric sent us was taken after the fires in 1906, which destroyed 80% of S.F. There's the steel frame of 166 in the background.
One limitation is that each floor is just 2,500 SF so there's not a lot of space for a growing company. Aric lives a block from Rodeo Drive action in LA, but says this area is much more exciting with so much to do. He says it reminds him of his days in NYC when he used to be in the restaurant business. He sent us this pic recently shot from a drone (166 is the brown building).
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