SAN FRANCISCO – Chinese developer Kylli Inc. has acquired the 583,000-square-foot office building at 225 Bush Street in San Francisco’s Central Business District. This is the largest office sale in San Francisco since 2012, according to Flynn Properties and GEM Realty Capital, two of the building’s owners. The Class A building was originally the headquarters for Standard Oil when it was built in 1922. The 22-story tower is currently 99 percent leased. Notable tenants include Lithium Technologies, Groupon, Zillow, Twitch.tv, Meltwater and RocketSpace. Flynn and GEM originally purchased the building in 2000. The joint venture owned the building with partner Whitehall-Goldman Sachs until 2005. In 2012, the JV partnered with SEB ImmoInvest on the building. GEM and SEB sold their entire stakes in 225 Bush Street as part of the sales transaction. Flynn will remain as an investor in the new joint venture. It will also act as the property manager and leasing agent for 225 Bush Street. JLL identified Kylli as Flynn’s new joint venture partner. The firm also provided support on this cross-border transaction.
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SAN FRANCISCO — Pebblebrook Hotel Trust has acquired the 160-room Prescott Hotel in San Francisco for $49 million. The hotel is located on Post Street, just one block from Union Square. It also enjoys close proximity to the Moscone Convention Center, the Powell & Market cable car turntable and the Westfield San Francisco Centre. The Prescott Hotel contains two buildings. The 96-room, seven-story building is located at 545 Post Street. Pebblebrook will own a fee-simple interest in this property. The company will own a leasehold interest in the second building, which contains 64 rooms on floors three through seven. That building is located at 555 Post Street. There is 75 years remaining on that lease, which expires in 2089. The former building was originally built in 1913 as the Cecil Hotel, while the latter building was constructed in 1922 for the Union League Club. Both buildings were renovated, repositioned and reopened as the Prescott Hotel in 1989. Pebblebrook also plans to renovate and reposition the property sometime between 2015 and 2016. The hotel’s design will be overseen by Dawson Design Associates. Kimpton will continue to manage the property. This is Pebblebrook’s sixth investment in San Francisco. The Prescott Hotel operated …
FORT COLLINS, COLO. — Mountain View Capital has acquired the 240-unit Terra Vida apartments in Fort Collins for $39 million. The community was built in 2012 at 3707 Precision Drive. It was 96 percent occupied at the time of closing. Terra Vida enjoys close proximity to Colorado State University, as well as some of the area’s major employers that are located along East Harmony Road. They include Agilent Technologies, HP, Intel, Poudre Valley Health Systems and Wolf Robotics. ARA Colorado’s Doug Andrews, Jeff Hawks, Terrance Hunt and Shane Ozment represented the seller, Milestone Development Group LLC and its partner, Les Kaplan, in this transaction.
FLAGSTAFF, ARIZ. – Clear Sky Summit has acquired the 168-unit Timberline Village Apartments in Flagstaff for $22.2 million. The community is located at 4255 East Soliere Ave. It sits adjacent to the Continental Country Club’s golf course. The Class A luxury apartment community was built in 1997. Rents range from $875 for a one-bedroom, one-bathroom, to $1,350 for a three-bedroom, two-bathroom unit. Clear Sky Capital was represented by David Fogler and Steven Nicoluzakis of Cassidy Turley. The seller was Bassham Trust’s Timberland Village I & II LLC.
Virtú Investments has acquired the 112-unit Hillcrest Apartments in Durango for $14.5 million. The community is located at 1000 Goeglein Gulch Road. That property was 92 percent occupied at the time of closing. ARA Colorado’s Terrance Hunt, Shane Ozment and Andy Hellman represented the seller, Butte Companies, in this transaction.
CANTON, GA. — Hendricks-Berkadia has arranged the $28 million sale of Harbor Creek, a 316-unit apartment community in Canton, a northern suburb of Atlanta. The apartment complex features one-, two- and three-bedroom floor plans ranging from 806 to 1,435 square feet in size. David Oakley and David Etchison of Hendricks-Berkadia, represented the seller, REDUS Georgia Commercial LLC, along with Bo Brown, Judy MacManus and Cory Sams of Brown Realty Advisors. The buyer was New York-based Mar Harbor Creek LLC.
FREDERICKSBURG, VA. — The Greysteel Co. has arranged the $18.8 million sale of Townsend Square Apartments, a 200-unit, transit-oriented community in Fredericksburg. Federal Capital Partners purchased the garden-style community located at 1100 Townsend Blvd. The apartment community features a fitness center, picnic area, playground, volleyball court and swimming pool. Federal Capital Partners has retained Kettler to manage the community. Ari Firoozabadi, John Mullen, Kyle Tangney, Lance Ahmadian, Caleb Brown, Mike Bediones and Jake Ying of Greysteel represented the seller, Insight Property Group, in the transaction.
MURRELLS INLET, S.C. — Rendina Healthcare Real Estate has commenced construction on a 23,000-square-foot medical office building in Murrells Inlet. Slated to open in March 2015, the facility will house Coastal Surgery Center on the ground floor and Carolina Orthopaedic Specialists and Proaxis Physical Therapy on the second floor. Greenville, S.C.-based Surgery & Recovery Partners LLC will manage the surgery center.
POMPANO BEACH, FLA. — Industrial Developments International (IDI) has inked a lease renewal and expansion agreement with Whole Foods Market Group Inc. at Pompano Business Center in Pompano Beach. Whole Foods has expanded its 71,754-square-foot lease to 123,062 square feet, which will bring Pompano Business Center’s Building M to full occupancy. The grocer uses the facility as its South Florida distribution center. Charlie Allen and Sky Groden of Cushman & Wakefield represented Whole Foods in the lease transaction. IDI was internally represented by Larry Dinner.
CHICAGO — NAI Hiffman has arranged the lease of 194,880 square feet of industrial space in Chicago. PECO Pallet, a provider of pallet rental services, will occupy space in the Chicago Manufacturing Campus located at 2924 E. 126th St. The space includes 20 exterior docks, abundant parking and access to the Calumet River. PECO Pallet plans to use this facility for the re-manufacturing and distribution of pallets to its grocery and consumer goods clients. Chris Gary and Howard Bergdoll of NAI represented the landlord, an institutional owner. Jeff Heymann of Colliers International represented PECO Pallet.