July 12, 2019 Comments Off on AEW-Led JV Buys Downtown San Francisco’s One Montgomery for $82M Views: 530 Bay Area, California News

AEW-Led JV Buys Downtown San Francisco’s One Montgomery for $82M

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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.

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