Swift Real Estate Partners Acquires First Mid-Market Asset
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Swift Real Estate Partners has acquired the office portion of 1390 Market St., formerly Fox Plaza, in San Francisco, marking its first acquisition in Mid-Market. Seller Broadreach Capital Partners, which bought the asset in 2007 for $42.7M, sold the asset for about $110M. This deal is one of the largest of the year so far, but could be dwarfed by several others that are in the works.
Investment activity has picked up in the past few months and there are over 10 buildings worth over $1.5B on the market or about to sell, according to Cushman & Wakefield's Q1 MarketBeat report. The biggest assets on the market include Blackstone's sale of its ground-lease rights to The Ferry Building, which could fetch upward of $300M, and Transamerica Corp. selling a partial stake on Transamerica Pyramid potentially worth $900/SF.
Swift now owns 220K SF of office space that spans the first 12 floors of the 29-floor building and ground-floor retail at 1390 Market St. The top floors of multifamily are owned by Essex Property Trust.
The LEED Gold asset is 89% leased and is undergoing a voluntary seismic upgrade that will be complete early next year. Current tenants include Twitter, Arista Networks and several branch offices of the city of San Francisco.
Swift plans to renovate the asset’s lobby and common areas and enhance the building’s exterior. This transit-oriented building is two blocks from the Civic Center BART/Muni station in San Francisco’s technology hub.