CBRE Arranges Sale and Financing of Historic San Francisco Office Building The Old Fed
27 Feb 2020
CBRE announced the sale and financing of the Old Fed, a landmark creative office building located at 301 Battery Street in San Francisco, California. CBRE’s San Francisco Investment Sales team, comprised of Mike Taquino, Kyle Kovac, Russell Ingrum, Mandy Lee, and Giancarlo Sangiacomo, represented the seller, Bently Reserve, LLC. RFR Holding LLC, a New York-based real estate investment company, purchased the property in a sale that closed on Feb. 13.
“301 Battery Street represented a truly unique opportunity to acquire a prized San Francisco landmark,” said Mike Taquino, Executive Vice President with CBRE.
The Old Fed is a Class A creative office building that was the former home of the Federal Reserve Bank of San Francisco for over 60 years. Designed by famed architect George Kelham, the Old Fed has been a prominent landmark in the North Financial District since its completion in 1924. Listed on the National Register of Historic Places, 301 Battery Street features stunning historic details including exquisite murals hand painted by Jules Guérin, a majestic Banking Hall, soaring 25 feet marble columns, and custom designed walls and ceilings.
“The capital markets responded incredibly aggressively to this financing opportunity. The landmark and irreplaceable 301 Battery asset, coupled with the prolific RFR sponsorship, resulted in one of the most accretive financing outcomes I’ve seen in this market,” added Mike Walker, Senior Vice President, CBRE.
The San Francisco office market continues to benefit from significant demand, especially from the technology sector. Average Class A office rents have experienced 7% growth in just the last year and now stand at $92 PSF/Yr. with just 2.5% vacancy. In 2019, 16 large deals over 100,000 were signed. Another 147 tenants are in the market, representing over 7.2 million square feet of tenant demand. The North Financial District is San Francisco’s most established and recognizable submarket, boasting several landmark properties including the historic Old Fed, the Transamerica Pyramid, and the Embarcadero Center.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.