July 12, 2019
Connect Bay Area is coming up next week at the Grand Hyatt San Francisco. Get more information, and register to attend on this link.
A joint venture between REDCO Development and AEW Capital Management, L.P. acquired One Montgomery Street in San Francisco from 601W Companies for $82 million. Located at Montgomery and Post streets, the landmark, historical asset has been 100% occupied since 1984 by Wells Fargo.
CBRE’s Mike Taquino, Kyle Kovac, Russell Ingrum, Giancarlo Sangiacomo and Mandy Lee represented the seller.
The brokers note One Montgomery provides the opportunity for a full-building user to capitalize on an asset with no market comparables, in a region with tremendously limited, large block, single-tenant opportunities. The property also offers a future development opportunity with a 250-foot height limit and a high-density zoning designation.
CBRE’s Mike Walker, Brad Zampa and Megan Woodring arranged the $76.6 million acquisition financing. The five-year, non-recourse floating rate financing with full-term, interest-only payments at a competitive spread, priced over 30-day LIBOR, will finance a portion of the acquisition and provide funding for future capital expenditures and re-leasing costs.
For comments, questions or concerns, please contact Dennis Kaiser