Cushman & Wakefield Brokers Historic Investment Sale and Will Manage the Property
Cushman & Wakefield represented Thor Equities in the $374 million ($1,256 per square foot) sale of San Francisco’s historic Phelan Building at 760 Market Street in the city’s Union Square district. Additionally, a New York-based team represented the building’s buyer, a private family owned entity with global holdings.
Cushman & Wakefield’s Retail Vice Chairman Kazuko Morgan and Executive Director Seth Siegel represented New York-based Thor Equities. Senior Director Joshua Goldman represented the buyer.
The 11-story, 250,000-square-foot building is fully leased to tenants such as tech startups Obvious Ventures and Medium, both led by Twitter co-founder Ev Williams, and personal finance company Credit Karma. The building’s 52,000 square feet of retail space includes Walgreens, Starbucks and Orogold.
A Union Square Landmark
Union Square’s largest building that is not a department store, the Phelan Building was built in 1907 by former San Francisco Mayor James Phelan, whose family owned the property for nearly a century. The landmark asset in the heart of Union Square’s retail corridor includes prestigious neighbors such as the Four Seasons Hotel, Four Seasons Residences and Barneys New York.
“This is the first time ever that 760 Market Street has been openly on the market,” Morgan said. “Although there have been a few trades investor-to-investor, they were always done off market, and it is rare that a property of this magnitude becomes available. The buyer believes the asset’s prime location combined with strong market fundamentals make this acquisition a great long-term investment.”
“In our experience, many buyers, whether they are prominent families or reside off-shore, do not want a commodity building,” Morgan continued. “If they are going to acquire an asset, it has to be special and impactful. The Phelan Building is one of the most recognized buildings in San Francisco and is located in a neighborhood surrounded by world renowned retailers and internationally recognized accommodations.”
760 Market Street
Added Seth Siegel, “Thor Equities has done a fantastic job converting an iconic building with over 300 smaller tenants on the upper floors and replacing them with full-floor tenants. The building has also been consistently occupied by very strong retailers on the ground floor. 760 Market is now considered one of the top creative buildings on the West Coast and routinely generates some of the highest rents in San Francisco.”
Cushman & Wakefield Director Blake Peterson has been retained to lead property management for the Phelan Building.
“This transaction is a prime example of the seamless collaboration our capital markets, retail and asset services teams provide to clients,” said Noble Carpenter, Cushman & Wakefield President, Capital Markets, Americas. “Across service lines, geographies and product types, we are setting a new standard for exceeding clients’ expectations at every phase of the process, from acquisition, finance and disposition to leasing and management,” he said.
According to Joshua Goldman, “I have known the buyers of the asset for 20 years. I was fortunate enough to match a requirement with a fantastic asset in one of the strongest office markets in the country.”
Other prominent deals completed by Cushman & Wakefield San Francisco include Salesforce Tower and 50 Fremont Street. The retail team also recently was awarded the leasing assignment for the NBA Warriors Chase Arena.