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PCCP has acquired a four-story, 138K SF Class-A office building in San Francisco for $120M.
The multi-tenant property at 350 Rhode Island St. is 100% occupied. It has 35K SF floor plates and was built in 2001 as one of two interconnected, four-story office buildings over three levels of subterranean parking. The buildings are now under separate ownership.
The parking structure brings additional cash flow to the property by serving the building PCCP purchased as well as the connected building and other office tenants.
“350 Rhode Island presented a compelling opportunity to participate in San Francisco’s robust and technology centered office market, and do so with an attractive current yield and at a basis below today’s replacement cost,” PCCP Vice President Dorian Farhang said in a statement. “This market continues to demonstrate record strength and 350 Rhode Island is a quality creative office building, with large floor plates and above-market parking that will support the asset’s long-term relevance within the leasing market.”
The property is in San Francisco's Potrero Hill neighborhood in the Showplace Square submarket, which has had substantial development and investment in recent years.
In December, Swift Real Estate Partners purchased 101 Utah, a two-story, 74K SF production, distribution and repair building in the Showplace Square District. Swift plans to reposition the property as a creative office building.
Though Showplace Square was an industrial and showroom area, the submarket has drawn in tech companies and spurred nearby residential development.
PCCP, which has offices in New York, San Francisco and LA, has $8.6B in assets under management on behalf of institutional investors.
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