144 & 156 SECOND STREET
Location South Financial District, San Francisco
Property Type Brick & Timber Office
Square Feet 53,000
Equity Blue Vista Capital Group & New Urban Properties
Acquisition Date December, 2010

Opportunity // In June, 2010 Sansome Street Advisors identified a rapid decrease of available space in small floor plate, creative space office buildings in the South Financial District.  Our study suggested a 5% vacancy in this micro market vs. general vacancy of 17% in the greater downtown.  In July, 2010 Patelco Credit Union put its two headquarters buildings at 144 and 156 Second Street on the market for sale.  Though the two single tenant buildings had dated improvements and were occupied as back office space, SSA determined they could easily be converted to creative-space multi-tenant buildings for increasingly active technology tenants.

Transaction // SSA advised BV/NUP in the competitive bid process with Patelco’s brokers.  Because of SSA’s market intelligence, it was apparent that even after increasing the initial purchase offer by 25% in third round bidding the $11MM acquisition price was still a bargain.

Results // Patelco vacated the two buildings in March, 2011 and by June, 2011 SSA leased the entire 144 Second Street building to five separate technology tenants and 156 Second to one single tenant.  SSA brokered the sale of the property in 2012 for $25.5MM to Nicola Crosby Real Estate Investments and continues to handle the project leasing.