Mission District Attracts Institutional Investors
San Francisco Business Times:
Long a magnet for high-end restaurants and housing developers, the Mission District is attracting institutional office investors.
Kinship Capital, a Chicago-based real estate investment firm, in partnership with Harvest Properties, has closed on the purchase of the Pioneer Building, a boutique creative office building in San Francisco’s supply-constrained Mission District.
The 34,000-square-foot property at 3180 18th St. offers rare vacant office space in an increasingly popular area of the city, according to a joint statement by the two investment firms. Nick Thomson and Ethan Meers of Kinship Capital and Griff King and Blair Volckmann of Harvest Properties were the lead executives on the deal. The partnership plans to significantly upgrade the property to attract new tenants and retain existing ones.
The price was not immediately available. The building last sold in 1987 for $162,000, according to public records
“The Mission is an increasingly popular area where technology, creative, and philanthropic professionals want to live and work. Kinship is particularly interested in emerging real estate trends within diversified growth markets. This transaction represented an attractive opportunity to add this San Francisco property to the Kinship Capital portfolio,” said Thomson, vice president at Kinship Capital. “The unique location, building’s heritage and character, and ability to offer creative office space at The Pioneer Building align with our strategy of investing in high-quality real estate in premier U.S. cities.”
John Winther, founder and managing partner of Harvest Properties, said the plan is to combine the buildings’ “historic nature with modern renovations that define and identify with the Mission neighborhood.”
“The Pioneer Building will be reintroduced to the market, featuring exposed timber, operable windows and an abundance of natural light,” he said. “The building’s great location, private parking lot and overall desirability create a compelling value proposition for tenants.”
Originally constructed in 1902 for luggage company C.A. Malm, the three-story, wood-framed building underwent a substantial renovation and seismic retrofit in 1986.
The Hawthorne Group represented the seller.