PCCP, LLC ACQUIRES 138,393-SF CLASS A OFFICE BUILDING FOR $120 MILLION IN SAN FRANCISCO
San Francisco, CA, February 5, 2019 – PCCP, LLC announced today it has acquired a four-story, 138,393-square-foot, Class A office building located at 350 Rhode Island Street for $120 million in San Francisco. The 100 percent occupied multi-tenant property is within the Potrero Hill neighborhood and the Showplace Square office submarket.
“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,” said Dorian Farhang, vice president with PCCP. “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 features 35,000-sf floor plates and a modern, distinctive architectural design. Constructed in 2001, 350 Rhode Island was completed as two interconnected, four story office buildings over three levels of subterranean parking. The buildings are now under separate ownership. Farhang noted that the parking structure component of PCCP’s acquisition provides added cash flow for the investment as it serves not only the subject building but the adjacent building and other office tenants in the area.
From a location standpoint, the property resides at the northern base of San Francisco’s Potrero Hill neighborhood, within the Showplace Square submarket, a high-growth location with substantial development activity in and around the immediate area. Formerly a primarily industrial and showroom area, over the past decade, Showplace Square has seen a significant influx of tech firms. Additionally, residential developers continue to deliver new housing supply into surrounding areas providing an abundance of living options for high-income tech employees who work in this submarket. 350 Rhode Island is located directly across the street from Whole Foods, and proximate to numerous neighborhood amenities. The property is situated between Hwy 101 and I-280 along the 16th Street Corridor, at the confluence of the Mission District to the West, Potrero Hill to the South, SOMA to the North, and the Mission Bay neighborhood to the East.