1155 Market Street Sold by Laurus Corporation for $72 Million
- Jun 26, 2014
The Laurus Corporation recently offloaded one of its most high-profile properties for a fee of $72.6 million. The private real estate investment and development firm has sold its 1155 Market Street in San Francisco, resulting in 56 percent Internal Rate of Return for investors.
1155 Market Street is an 11-story office asset that has been under the ownership of Laurus since 2011. The building offers a total of 140,000 square feet of rentable space, which was almost completely unoccupied when the property was acquired by Laurus. Since the acquisition, the owner increased the office asset’s occupancy by up to 75 percent by completing a leasing agreement with the City and County of San Francisco for a 10-year term. The lease came as a result of the extensive renovations carried out by the owner. Around $14 million was invested by Laurus into the refurbishment of various parts of the building including the façade, the lobby, common areas and elevators.
The improvements brought to the building have earned the asset LEED Gold certification from the U.S. Green Building Council, as well as Ashrae compliance.
According to a press statement announcing the sale, the CEO of Laurus Corporation, Philip Cyburt noted that the initial acquisition of the asset came during “the early stages of revitatlization” of the mid-market area. The company’s Chairman and Co-Founder Andres Szita expressed his satisfaction at his company’s success with the asset: “Renovation, leasing and disposition efforts were not exempt from challenges, yet a laser-focused attention to detail from the organization proved to be key to success.”