JP Morgan & Chase Co. has purchased an office, hotel, and retail complex in downtown San Francisco from real estate investment firm Jamestown for a reported $415 million.
Included in the transaction is 22 Fourth St., a 231,600-square-foot mixed-use building with 202,000 square feet of office space and 29,600 square feet of retail. The deal also includes a ground lease on 801 Market St., the parcel that the 206,000-square-foot Hotel Palomar building sits on, along with an adjoining 15,703-square-foot development parcel.
The three properties at the corner of Fourth and Market streets are near Union Square, the South of Market area and the Financial District include 200 feet of frontage along Market Street. The Palomar Hotel, built in 1907 and renovated in 1999, is a 198-room, five-story hotel with ground-floor tenants that include flagship Old Navy and Levi's stores. The16-story office building includes retail space occupied by The Container Store.
Following a repositioning and renovation of the property by Jamestown, the 202,000 square feet of office space was fully leased last year to Demandforce, a unit of software company Intuit's small business division.
"The addition of a signature tenant like Intuit and its long-term lease created an attractive investment for a buyer," said Jamestown COO Michael Phillips. "We remain committed to the San Francisco Bay Area as we are very engaged in the community through our other local properties."
The LEED Gold-certified properties were previously held by Jamestown Premier Property Fund, the firm's flagship core and core-plus investment vehicle for institutional investors, which was represented in the sale by Eastdil Secured. The fund also owns Ghirardelli Square and 799 Market in San Francisco.
Please see CoStar COMPs #3051592 for more information on this transaction.