Archstone traded Fox Plaza, a 444-unit multifamily complex in San Francisco, CA, to Essex Property Trust Inc. (NYSE: ESS
), an apartment REIT, for $135 million.
Archstone purchased the entire tower in 2005 for $147.5 million, and in 2007 sold the 232,000-square-foot office/retail component for $42.7 million to Broadreach Capital, which maintains ownership.
Built in the 1960s, the 29-story high rise consists of office space on the lower 13 floors and multifamily units on floors 14 through 19. The acquisition price included the residential portion plus a two-story property next door comprised of 37,800 square feet of office and retail space as well as and a two-story underground garage with 400 parking spaces. The commercial building is entitled for a 250-unit, 11-story apartment community. Essex does not plan to develop the tower but will evaluate the option in the future.
The REIT plans to invest $27 million over the next several years to upgrade the exterior and interior of the building.
More than 300 of the units are studios that average 450 square feet per home with the remaining mix consisting of one- and two-bedroom floor plans. The property is at 1390 Market St. in the Mid-Market district. Tenants such as Twitter, Dolby Laboratories
have leased more than 1 million square feet of office space recently.
Frank Wheeler, Mark Feldman, Stephen Jackson, Tony Crossley, Tim Maas and David Orosco (now with Cassidy Turley) of Colliers International represented Archstone Residential.
See CoStar COMPS #2683001 for more information.