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PREMIER UNION SQUARE HIGH STREET RETAIL BUILDING – SAN FRANCISCO, CA
INVESTMENT OPPORTUNITY
THE OFFERING
CBRE Capital Markets, as exclusive advisor, is pleased to present the opportunity to acquire 233 Grant Avenue (the “Property”), a premier, historic retail building strategically located in San Francisco’s Union Square District – widely recognized as one of the world’s most prestigious luxury shopping and tourist destinations. 233 Grant Avenue’s excellent location amid high-end retailers, luxury hotels, the City’s Financial District, and multiple forms of public transit (including the new Central Subway stop just two blocks away), ensures consistently high foot traffic to the Property. Consisting of 10,918 square feet across six floors plus a lower level, 233 Grant Avenue boasts expansive ceiling heights and a timeless historical façade that blends seamlessly into the urban fabric of Union Square. Opportunities exist to further add value, including leasing up the two vacant floors and re-tenanting the ground floor retail space upon Marlowe’s Lease expiration in January, 2020. 233 Grant Avenue’s excellent location in Union Square, along with its immediate value-add potential, makes the purchase of the Property a highly attractive investment opportunity.
P R O P E R T Y S U M M A R Y
BUILDING ADDRESS . . . . . . . . . . . . . . . . . . . . . 233 Grant Avenue, San Francisco
RENTABLE AREA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,918 Square Feet
OCCUPANCY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65%
STORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Six Stories, plus lower level
LOT S IZE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,178 Square Feet
FRONTAGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Grant Avenue
TENANCY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marlow, Nina McLemore
ZONING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .C-3-R
SUBMARKET. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Union Square
u 11,000 square foot historic retail jewel box located in world-renowned Union Square, one block away from the new flagship Apple Store.
u Built in 1907 and renovated in 2002, the Property blends historical sophistication with efficiencies afforded by modern improvements.
u Opportunities exist to further add value including leasing up the two vacant floors and re-tenanting the ground floor retail space upon Marlowe’s lease expiration in January, 2020.
u Well-served by public transit including BART and MUNI, 233 Grant Avenue is just two blocks away from the under-construction Union Square Central Subway Station that is expected to open in 2019.
T
T
T
POWELL STREET
BU
SH
STREET
SUTTER STREET
JW MARRIOTT UNION SQUARE
MARRIOTT UNION SQUARE
CAMPTON PLACE
T
WESTFIELD CENTER
HOTEL NIKKO
HILTON UNION SQUARE
THE WESTIN ST. FRANCIS
C A B L E C A R
MACY’STIFFANY & CO
KIMPTON SIR FRANCIS DRAKE
SAKS FIFTH AVENUE
NEIMAN MARCUS
LOUIS VUITTON
WILLIAMS-SONOMA
CARTIER
TOURBILLON
BURBERRY
HERMES CHANEL
JIMMY CHOO
MARKET STREET
APPLE
LONGCHAMP
DOLCE & GABBANAF I N A N C I A L D I S T R I C T
WEST COAST’S FINANCIAL CAPITAL
U N I O N S Q U A R EWORLD-CLASS SHOPPING
AND TOURISM
RETAIL
HOTEL
BULGARI
HIGH-IDENTITY UNION SQUARE RETAIL ASSET
UNION SQUARE JEWEL BOX: There are few opportunities to acquire assets in Union Square. The Property is a jewel box that represents a generational opportunity to acquire a historically and architecturally significant retail asset with existing cash flow.
TIMELESS HISTORICAL APPEAL: Built in 1907 and renovated in 2002, 233 Grant Avenue combines historic charm with efficiencies afforded by modern improvements. The Property features an attractive timeless façade with iconic pilasters framing large glass windows that allow plentiful natural light throughout the building.
COMMANDING RETAIL PRESENCE: Consisting of 1,747 square feet of premium retail space along Grant Avenue, the Property boasts an outstanding retail presence along one of San Francisco’s most recognized retail corridors.
GROUND FLOOR RETAIL COMMANDS A PREMIUM: Grant Avenue is one of the most trafficked and well-known streets in Union Square, surrounded by notable neighboring retailers. As a result, the ground floor commands some of the highest market rents in San Francisco, which are projected to be in the low to mid-$300 PSF range. Currently occupied by Marlowe, the ground floor retail space of 233 Grant Avenue benefits from significant potential to increase rents once Marlowe’s lease expires in January, 2020.
VALUE-ADD INVESTMENT PROFILE: 233 Grant Avenue represents an excellent value-add investment profile, with the opportunity to capitalize on the leasing momentum in the San Francisco retail market. A new owner can immediately capture increased cash flow by leasing the two available floors.
SIGNIFICANT UPSIDE POTENTIAL
WORLD-CLASS UNION SQUARE LOCATION
STRONG RETAIL CORRIDOR: As one of the world’s most prestigious shopping districts, Union Square boasts hundreds of luxury, department, and boutique retail stores including Christian Dior, Coach, the Harry Winston flagship store, Louis Vuitton, Neiman Marcus, and Hermes. Additionally, dozens of major hotels anchor Union Square as a prime tourist destination.
ADJACENT TO NEW APPLE STORE: Apple opened their new location at 300 Post Street, one blockaway from 233 Grant Avenue, following a substantial $30 million renovation of the building formerlyoccupied by Levi’s. The new flagship store, which incorporates the latest innovations in building design,has significantly increased pedestrian traffic to the area.
PUBLIC TRANSIT & PARKING OPTIONS: Well-served by public transit, 233 Grant Avenue is just two blocks away from the under-construction Union Square Central Subway Station that is expected to open in 2019. Located in one of the most transit rich locations in San Francisco, 233 Grant Avenue is just two blocks away from Montgomery Street BART Station and is easily accessible to MUNI light rail options along Market Street. Across the street from 233 Grant is the White House parking garage, which serves as a starting point for many visitors to Union Square and ensures consistent foot traffic to the Property.
STRONGEST MARKET IN THE UNITED STATES: San Francisco continues to be the top performing tenant and investment market in the United States. Average Class A office asking rates now stand at $80.00 per square foot while vacancy remains steady at 4.7 percent. With over 5.3 million square feet of active tenant demand, the outlook is positive for sustained growth.
OFFICE LEASING MOMENTUM: 2018 has been an exceptionally strong leasing year in the office market with 13 leases of 100,000 square feet or more totaling 3 million square feet thus far. By year-end another 1 million square feet of large leases are expected to be signed, which would surpass 2017’s record of 20 deals for 3.9 million square feet. Technology companies continue their unprecedented growth with companies such as Facebook, Dropbox, Google, Amazon, Airbnb, and Uber making historic commitments to expand in San Francisco.
TIGHT UNION SQUARE RETAIL MARKET: As of Q3 2018, vacancy in Union Square stands at just 4.6 percent. In the last six years, vacancy has remained sub-5 percent, reflective of high demand for prime retail space. Rental rates for premier ground floor retail space facing the landmark square and in some of the blocks surrounding it can reach between $900 PSF/Yr.
EXCELLENT MARKET FUNDAMENTALS
O F F I C E I N V E S T M E N T A D V I S O R S
MICHAEL TAQUINO Execut ive Vice President 415.378.0460 [email protected] CA License #01431337
KYLE KOVAC Execut ive Vice President 415.407.7122 [email protected] CA License #01731229
D E B T & E Q U I T Y A D V I S O R S
MIKE WALKER Senior Vice President 415.772.0278 michael . l [email protected] CA License #01843658
BRAD ZAMPA Execut ive Vice President 415.772.0225 [email protected] CA License #011743866
LAURA SAGUES Senior Vice President 415.772.0122 [email protected] CA License #01888298
R E TA I L I N V E S T M E N T A D V I S O R
GIANCARLO SANGIACOMO Senior Associate 415.772.0347 giancar [email protected] CA License #00409987
© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners.
