Swift Buys 2 San Francisco Properties
Swift Real Estate Partners has bought two San Francisco properties, marking its second and third acquisitions in the city this year.
The company bought historic building 55 New Montgomery, also known as the Sharon Building, in San Francisco's South Financial District. The purchase was for a reported $64.25M.
Swift's purchase of the 100K SF 55 New Montgomery office building marks only the second time the building has sold since it was built in 1912.
“We are excited to announce our acquisition of 55 New Montgomery. This is our third acquisition in San Francisco for the year and we’re thrilled to add another historic building to our diverse portfolio,” said Swift Director of Asset Management for Northern California Tommy Christman, who spearheaded the acquisition on behalf of Swift. Christman will be one of the speakers at Bisnow's Bay Area Capital Markets and Real Estate Finance event Dec. 12.
Swift also bought 101 Utah, a two-story, 74K SF production, distribution and repair building in the city's Showplace Square District.
The 101 Utah building is 50% leased with 40 different tenants. Swift purchased the property with an eye toward repositioning and adding value as a modern, creative workplace.
Christman said San Francisco is currently the tightest office market in the U.S. and that should continue due to a continued supply-demand imbalance.
Swift, which started in 2010, has acquired and repositioned over 10M SF valued in excess of $3B, including five acquisitions to date in San Francisco. The vertically integrated real estate investment firm focuses on value-add office and industrial. Its first fund was raised in 2013, and investors include U.S. pension funds, foreign investors, investment advisers, endowments, foundations and high net worth individuals.
Its last historic building purchase in San Francisco was the 2013 buy of 260 California St., where Swift has its headquarters. Swift's plans for 55 New Montgomery include building upgrades and rebranding while respecting the building's historic features.
The building stands out because it is a historic landmark with potential for creative office conversion, due to its exposed brick, steel columns and concrete floors that are attractive to both creative and traditional tenants, Christman said.
55 New Montgomery is near BART and Muni stops, including the new Transbay Transit Center. Being near public transportation and amenities makes it attractive for current and prospective tenants, the company said. With offices above ground-floor retail, it is home to the House of Shields bar and Crunch Fitness gym.
CBRE's Mark Geisreiter was the investment sales broker, and Mike Walker was the debt broker for the purchase.
Geisreiter said there was strong buyer interest in the building, but Swift was laser-focused on acquiring 55 New Montgomery.
"Swift’s appreciation for the history of the building and their vision for the project really resonated with the sellers, and we are very confident that this will be a great project for them,” he said in a statement.
