Ellis Partners acquires 179K sf office building in South of Market neighborhood

Deal highlights desirability of core office properties in San Francisco even as city’s tech companies allow most employees to work remotely

San Francisco /
Sep.September 15, 2021 03:24 PM
Jason Morehouse, Partner and Director of Acquisitions at Ellis Partners and the property (LinkedIn via Morehouse, LoopNet)
Jason Morehouse, partner at Ellis Partners, and 153 Townsend St. (LinkedIn via Morehouse, CBRE via CoStar)

Real estate investor and developer Ellis Partners has acquired a nine-story Class A office building in San Francisco, reinforcing the city’s attractiveness as a core market for office investors even as demand for that space remains below normal.

San Francisco-based Ellis is the new owner of a 179,000-square-foot building at 153 Townsend St., according to a statement Wednesday from CBRE, which represented the company in the deal and arranged a loan to finance it. The sale was conducted off-market, Kyle Kovac, an executive vice president at CBRE, said on Wednesday.

CBRE’s San Francisco Investment Sales team of Mike Taquino, Kovac and Giancarlo Sangiacomo represented Ellis in the sale, while the commercial brokerage firm’s local debt and structured finance team, led by Mike Walker and Brad Zampa, arranged the fixed-rate loan, the release said. Kovac and the other brokers declined to disclose the price or any other details beyond the release, including the loan’s interest rate. The seller was American Realty Advisors, which bought the property in 2012 for about $93.8 million, according to data from Reonomy, a commercial real estate analytics firm, and First Republic Title records.

American Realty declined to comment, and Ellis didn’t respond to requests for comment.

The building is in the city’s South of Market neighborhood, home to established tech companies and startups such as Salesforce, Slack and Okta. Built in 2002, it’s across the street from Oracle Park, where the San Francisco Giants play, and within two blocks of a Caltrain terminal and a subway stop, according to CBRE’s release.

The property is fully leased and mostly occupied by Ancestry.com, which is reportedly renting 128,570 square feet across four floors through February 2030. The company put its entire block of space on the market for sublease earlier this year, as it planned to transition to a hybrid work model, although a spokesperson said in June that it intends to maintain an office presence in San Francisco, the San Francisco Business Times reported at the time.

Ellis’ acquisition marks its first through EPNY Ventures I LLC, an investment vehicle and a joint venture between Ellis and the New York State Common Retirement Fund, which provided it with a $200 million equity commitment. The vehicle, which closed in September 2019, focuses on acquiring and managing core office, industrial and retail properties in the San Francisco Bay Area.

“We are thrilled to be adding 153 Townsend to our core portfolio and look forward to identifying complementary investments to fill out the balance of our venture,” Jason Morehouse, partner and director of acquisitions at Ellis, said in CBRE’s release.





    Related Articles

    arrow_forward_ios
    George Shultz and 999 Green St, San Francisco (Compass, iStock, U.S. Department of State/Public domain/via Wikimedia Commons)
    Eichler-designed George Shultz penthouses go into contract at record last ask
    Eichler-designed George Shultz penthouses go into contract at record last ask
    Wells Fargo ceo Charles W. Sharf and the Office tower at 550 California Street in San Francisco (Wells Fargo, Google Maps)
    Wells Fargo puts 335K sf tower up for sale in SF
    Wells Fargo puts 335K sf tower up for sale in SF
    Stockdale Capital Partners’ Steven and Shawn Yari with 501 Geary St (Stockdale Capital, The Markers, iStock)
    Pebblebrook sells DTSF’s Marker Hotel
    Pebblebrook sells DTSF’s Marker Hotel
    70 South Park, San Francisco, CA (70SouthPark)
    ‘Gallery House’ aims for South Park record with $12M ask
    ‘Gallery House’ aims for South Park record with $12M ask
    San Francisco Mayor London Breed (Getty, iStock)
    San Francisco to consider cutting affordable housing demands to spur construction
    San Francisco to consider cutting affordable housing demands to spur construction
    Residential Real Estate, San Francisco, Bay Area
    Silicon Valley’s return-to-office trend tied to jump in San Jose resi rents
    Silicon Valley’s return-to-office trend tied to jump in San Jose resi rents
    2190 Vallejo St (Zillow)
    Pacific Heights mansion with makeover plans in final approval stages hits market
    Pacific Heights mansion with makeover plans in final approval stages hits market
    SF office vacancy rises(iStock)
    Forecast: office vacancy in SF’s Downtown could grow to 50 percent
    Forecast: office vacancy in SF’s Downtown could grow to 50 percent
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...