ABOUT THE PROPERTY
This office tower is located in the heart of San
Francisco’s Financial District. At purchase, the rents were
significantly below market and the $227 per square foot purchase price
was well below the $300 per square foot sales of comparable properties.
Shortly after acquiring the property, the rental market leasing rates
started increasing dramatically. ZKS took advantage of this rising
rental market to negotiate several lease buyouts and early lease
terminations, re-leasing the space at significantly higher rental rates.
During the ownership period, rents increased from less than $40 per
square foot to $80 per square foot. The property was sold 14 months
after purchase for $332 per square foot, which generated a realized IRR
of 124%.
INVESTMENT DATA
Capital Partner The Carlyle Group
Sold to TMG Partners
Date Purchased July 1999
Date Sold September 2000
Purchase Price $68,000,000 ($227 psf)
PROPERTY DESCRIPTION
Location San Francisco, CA
Submarket Financial District
Property Type Class A Office
Property Description 25 story building
Rentable Square Feet 299,119
Year Built 1979