San Francisco, California – July 13, 2020 – A fund sponsored by CBRE Global Investors has acquired 123 Townsend Street, a 137,625-square-foot office building in San Francisco’s SoMa neighborhood. The acquisition is part of the fund’s broader strategy to invest in target office markets across the U.S.
123 Townsend Street is a historic six-story brick-and-timber building that was built in 1903 and underwent a full renovation in 2000, including significant seismic structural upgrades, a new roof, new systems and the addition of elevators and skylights. The low-rise property benefits from multiple stairwells and large, flexible floorplates. On-site amenities include a state-of-the-art fitness center, bike storage and a rooftop deck with panoramic views of the city.
“123 Townsend Street is listed with the Historic Preservation Office as one of the few buildings to survive the great San Francisco earthquake in 1906. Because of this, much of the property’s historic features remain intact, though now with significant upgrades that have modernized and safe-guarded the building against seismic activity,” said Kim Hourihan, Senior Managing Director and Portfolio Manager for CBRE Global Investors.
123 Townsend Street is surrounded by an abundance of restaurants, bars and entertainment options. The property benefits from multiple transit options nearby, including the CalTrain, which provides direct connectivity between San Francisco and Silicon Valley; the MUNI Metro Rail that provides convenient citywide access and links to the BART, which services San Francisco and the East Bay; and the MUNI Rapid Bus, providing direct access to eight different routes throughout the city.
“We believe that the SoMa neighborhood in San Francisco is well-positioned for long-term growth due to its superior accessibility,” said Gary Jaye, Senior Managing Director and Head of Commercial Acquisitions for CBRE Global Investors. “San Francisco is considered by many as the financial capital of the west coast. We believe the city benefits from strong-performing submarkets – thanks in part to new-economy tenants – and world-class education, healthcare and cultural institutions. 123 Townsend Street is ideally situation within the city, affording excellent walkability and easy access to the area’s major freeways, I-80 and I-280, which are both less than a half mile away.”
The property was previously ENERGY STAR-rated, and the CBRE Global Investors team plans to pursue ENERGY STAR recertification and LEED certification.
About CBRE Global Investors
CBRE Global Investors is a global real assets investment management firm with $108.1 billion in assets under management* as of March 31, 2020. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2019 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers.