Reichmann Heir Buys Another San Francisco Building

Ian Jacobs, a scion of the legendary Reichmann real estate dynasty, is continuing his San Francisco building-buying blitz with a new Union Square purchase.

The former Warren Buffett protégé and Berkshire Hathaway investment researcher, acting through the entity 35 Powell LLC, bought 35-41 Powell Street for $7.1 million, the San Francisco Business Times reported. He bought the two-story, 17,000-square-foot commercial building from a real estate trust related to James and Dorothy Hatley.

Jacobs’ purchase is purportedly part of his Project Uris plan, which involved a $75 million fundraising effort to buy 3 million square feet of property in downtown San Francisco. It’s named after the now-defunct Uris Buildings Corporation which sold office buildings in New York City to the Toronto-based Reichmann family in the late 1970s. The buildings eventually grew in value exponentially, and Jacobs is similarly buying properties during market slumps and betting on a rebound.

The 35-41 Powell building is located next door to 111 Ellis Street, which Jacobs also purchased in recent weeks. The five-story, 21,412-square-foot building sold for an undisclosed amount, though it was significantly lower than its pre-pandemic value, the San Francisco Standard reported. The 111 Ellis Street structure is separated from the 35 Powell building by the six-story 45 Powell building.

Jacobs kicked off the buying spree in April with the purchase of an Art Deco building at 200-216 Powell Street for $7.4 million, according to the San Francisco Business Times.

Union Square is ostensibly headed for a turnaround and business and pedestrians return to the neighborhood, bolstered by recently opened stores including Nintendo and Shoe Palace, with clothing stores like Zara and John Varvatos on the way.

Mayor Daniel Lurie commended Jacobs for his commitment to purchasing properties in the city as it continues its post-pandemic recovery.

“I’m excited about Ian’s project,” Lurie told Max Raskin, Uris’ managing director, last year. “San Francisco is not like any other city. We’re coming all the way back, full stop.”

— Chris Malone Méndez