Kansas Street Asset Benefits from Oracle, Chase Venues

GlobeSt.com:

SAN FRANCISCO—Currently, more than 5.7 million square feet of office space is under construction or planned in SoMa’s adjacent neighborhoods with more than 5,000 residential units also under construction, approved or planned. One of the properties in the area, 200 Kansas St., is located one mile from Oracle Park and Chase Center, not only the Warriors’ new home but the city’s largest concert venue.

Presidio Bay Ventures in a joint venture with Kinship Capital, a private real estate investment firm, recently acquired the desirably located asset. The seller was an entity sponsored by Ascent Real Estate Advisors, the principals of which are Dean Benjamin and John Porges.

“We strive to work with properties that benefit the communities in which they are located and 200 Kansas is a great example of that,” said Cyrus Sanandaji, managing director for Presidio Bay Ventures. “The building has an artistic yet functional design that fits the needs of both the tenants and neighborhood well, and the property is home to a much-needed daycare that will continue to serve this community.”

Located in the heart of the design district, the 90,000-square-foot building spans nearly a full city block, occupying more than 1-1/2 half acres. 200 Kansas features polished concrete flooring, and has a renovated lobby and common area which appeals to the neighborhood’s design focus.

The versatile property has served a variety of uses, from a US Navy manufacturing plant during World War II to a storage and lithograph printing plant in the 1970s. However, San Francisco’s production, distribution, repair/PDR market has evolved to serve a technology-oriented industry that has trended towards advanced manufacturing and the development of digital products. The two-story PDR building is situated near notable technology tenants such as Adobe and Samsara.

So more recently, the property’s 15-foot exposed ceilings and open floor plans have drawn tenants in the laboratory, healthcare hardware and technology industries. In fact, it is fully leased to four diverse tenants.

“200 Kansas fits perfectly with our commitment to owning high-quality properties in supply-constrained markets, where additional opportunities exist to enhance value for our tenants and the community,” said Nick Thomson of Kinship Capital. “We look forward to continuing to strengthen our relationship with Presidio Bay while reinforcing our commitment to being an innovative, duration-driven investor.”

Mike Taquino, Kyle Kovac, Russell Ingrum, Mandy Lee and Giancarlo Sangiacomo with CBRE capital markets’ institutional properties group in San Francisco represented the seller.

“200 Kansas is the premier creative PDR building in San Francisco, ideally located in Showplace Square with adjacent proximity to Mission Bay, SoMa and the Mission,” Taquino tells GlobeSt.com. “This was a highly sought after asset due to steady cash flow and future development opportunity.”

CBRE capital markets’ debt and structured finance group, led by Mike Walker and Brad Zampa as well as Megan Woodring and Taylor Shepard arranged the five-year, non-recourse financing with full-term interest-only payments priced at a competitive spread over 30-day LIBOR. The loan from a Los Angeles-based asset management company will finance the buyer’s acquisition of the property.

“Banks, debt funds and life companies all competed aggressively for this unique opportunity. Showplace Square is one of the most vibrant submarkets in all of San Francisco and some of the most well-regarded equity investors in the nation have been actively investing here, especially over the last 24 months. We are not surprised to see the large brand-name debt providers chasing these opportunities and looking for exposure in this incredible area,” said Walker.

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