Strong Demand for Office Building as San Francisco Becomes Leading Technology Hub
Over the past decade, the majority of AFI USA’s activity in North America has been focused on luxury residential real estate in New York, Los Angeles, San Francisco, Las Vegas, Miami and Phoenix. AFI USA has built a reputation of excellence in its residential developments by introducing some of the top brands in the real estate market including 20 Pine by Armani Casa , Downtown by Philippe Starck , and The Marquis Residences in Miami. As AFI USA’s prime focus is currently the development of such desirable luxury real estate projects, it has set up an in-house infrastructure based in Manhattan for all related aspects, including construction, marketing, and sales.
NEW YORK, March 7, 2013 /PRNewswire/ — Africa Israel USA (AFI USA) today announced that, together with its partners, it has closed on the sale of the Rialto Building, a landmark turn-of-the-century office and retail property situated in San Francisco’s prime South Financial District, agreeing to sell the nine-story building to a joint venture between Invesco and Hines, said Tamir Kazaz , CEO of AFI USA.
The sale was completed only six weeks after AFI USA placed the property on the market. In total, 17 offers were submitted as part of the bidding process. Eastdil Secured represented the seller in the transaction.
One of San Francisco’s most iconic commercial properties, the Rialto Building, at approximately 135,485 square feet, boasts creative, open floor plans, high ceilings and abundant light. The building – which is 85 percent leased – is home to many prominent technology companies such as Trulia. The Rialto Building’s ground-floor retail tenants include Walgreens and Chipotle, both of which retain long-term leases.
“This sale proves that San Francisco is still unmatched as the nation’s top-performing office market,” Kazaz said. “The combination of historic architecture, creative layouts and central location make this a highly attractive property, one that will ensure long-term value and stable cash flows.”
Originally built in 1902, the H-shaped Renaissance-style Revival building was designed by architects Meyer & O’Brien. After the great earthquake of 1906, the Rialto Building’s interiors were completely rebuilt, although, the exterior structure made of steel, brick and concrete was left intact.
AFI USA acquired the property in 2007, and soon after, undertook a capital investment program to restore the property to its original grandeur. Restoration work focused on original architectural components in the main lobby, including bronze staircase, ornate metal elevator doors, painted panel ceiling and marble flooring.
“We were very pleased with the widespread interest in the building, which we feel is indicative of the Rialto’s strengths, both architecturally and geographically,” said Damien M. Stein , director of asset management at AFI USA. “The demand for premier office space in the most sought-after area of San Francisco is clearly outpacing the ready supply.”
Located at the intersection of Mission and New Montgomery streets, the Rialto Building is situated in the heart of the South Financial District, one block from both BART and the Transbay Terminal Redevelopment. It is also located at the doorstep of the future intermodal transportation hub of Northern California.
SOURCE Africa Israel USA