SAN FRANCISCO — On behalf of a large pension fund advisor, Jones Lang LaSalle’s Capital Markets experts announced the $80 million sale of the Monadnock Building, a 204,625-square-foot office building located at 685 Market Street in the heart of San Francisco’s South Financial District, to Brookfield Office Properties.
Managing Directors Rob Hielscher and Michel Seifer and Vice President Aaron Herter led the Jones Lang LaSalle (JLL) team on this transaction. Brookfield also has retained JLL to lease the Property, and Managing Directors Chris Roeder and Jak Churton of JLL’s Agency Leasing Team will oversee that effort.
“The Monadnock Building is one of San Francisco’s premier landmark office properties. With an outstanding location in the heart of San Francisco’s South Financial District and historic touches like operable windows and a light-filled atrium, the Monadnock Building embodies the “creative” space that is in high demand from both tenants and investors,” Hielscher said.
“This is a high quality building with a storied history in a thriving location. It is ideal for a broad range of tenants, from creative companies to professional firms, seeking open plan layouts where they can incorporate collaborative space with efficient workspaces,” said Chris Roeder.
Built in 1907, the Monadnock Building is a great example of the turn-of-the-century “Beaux-Arts” style and one of the city’s landmark properties. New ownership has plans to further upgrade and reposition the LEED Gold-certified building. The Property offers immediate access to the Union Square shopping district and a wealth of dining and entertainment amenities. Macys.com, the online division of one of the nation’s largest retailers with investment-grade credit, occupies 46 percent of the Property on a lease that runs through May 2018.
Since the latter half of 2010, the San Francisco office market has experienced a dramatic increase in demand from a variety of industries, particularly technology, fueling significant net absorption and rental rate growth. More than 3.3 million square feet of space was absorbed between January 2011 and December 2012, and the average office rental rate in the city has spiked by more than 50 percent over the last three years. The market benefits greatly from significant barriers to entry due to geography and municipal development regulations.
Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2012 alone, Jones Lang LaSalle Capital Markets completed $63 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $60 billion in global investment sales and buy-side transactions, equating to nearly $240 million of investment trades completed every working day around the globe. The firm’s Capital Markets team comprises more than 1,300 specialists, operating all over the globe.
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About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit www.jll.com.
Contact: Heather Filkins
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