1155 Market Turns Big Profit
We've got big news about 1155 Market; not only did it close on Friday for a whopping $72.5M, but it's now 100% full. The buyer is S.F.-based Patson Companies. Lighthouse for the Blind will move its HQ from 214 Van Ness to the top three floors of the 11-story building; the city and county occupies the rest. (Some say government is the blind leading the blind. In this case, is the blind above the blind?) The tenant in tow made the deal attractive. Seller Laurus took a smart chance on the empty mid-Market building back in 2011, scooping it up for $27M and dumping in about $15M in upgrades. (That same year Shorenstein did a similar move nearby at 1355 Market, now home to Twitter.)
Patson has owned a lot in S.F. over the years, developing a couple of office buildings. Here, Patson's David Harrison and Ian Paget on the 235 Pine job site in 1989. Check out that 'stache! (Ian's placeholder pic on his bio page is one of James Bond. Are these two cool or what?) Patson has been quiet, sources tell us, and is now back on the radar with this 140k SF purchase. Earlier this year, CBRE started marketing the building. Cassidy lengthened financing, Starwood did the first mortgage, and Canyon Capital provided equity financing.
