Kinship Capital Sells Union Square Retail Property with Condo Approvals

San Francisco Business Times:

Chicago-based Kinship Capital has sold a 39,000-square-foot Union Square property at 300 Grant Ave. that it purchased two years ago for a big payoff.

The primarily retail development has Calvin Klein Performance, Industry Denim, Optical Underground, West Coast Leather and Jin Wang among its tenants. But the real value for new owner St. Brides is the entitlements for a 10-story mixed-use building with 16,000 square feet of ground floor and second floor retail space, 45 condos and below grade parking for 40 spots.

“It was amazing because there was an astounding amount of interest in the property,” said Nick Thomson, a principal with Kinship. “San Francisco is a must-invest market for institutional investors and I think (broker) HFF set a record in terms of the number of interested buyers. In excess of 200 groups were seriously evaluating the opportunity.”

The project won entitlements in 2008, said Thomson, but the developers “hit the pause button” when the economy tanked. Kinship bought the building in 2012.

“We knew if the market improved, those entitlements would be worth a lot. During the course of our ownership, the market has roared,” he added.

Kinship sold the Pioneer Building in the Mission District in January, which it co-owned with Harvest Properties, for a big profit. Thomson said the firm has investments in Santa Clara and the East Bay and is “evaluating a number of other investments in the market.”

Nick Bicardo of HFF San Francisco represented Kinship in the deal.

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