CIM Group Acquires Creative Office Building in Strong SoMa Submarket
- Apr 24, 2013
CIM Group, a company dealing with real estate and infrastructure investment, has recently announced the expansion of its commercial portfolio following the acquisition of a creative office building in San Francisco. The entity has moved on the market for a low-vacancy property located in one of the city’s hottest submarkets—the SoMa District. CIM acquired the 330 Townsend property for an undisclosed sum, as it increases the number of assets it owns in the blossoming district.
330 Townsend is a creative office property with an occupancy rate of 98 percent, in keeping with the area’s high average rates. The building is also located in close proximity to the CalTrain San Francisco Station, as well as the currently under-construction Central Corridor transit line.
Besides having zoning in place for additional development, in conformity with the West SoMa Community Plan, the newly acquired property is also within the city’s Central Corridor planning district, an area which is currently seeking new development guidelines. This could mean that current land uses and building heights may be adjusted in the near future, as well as an overall plan to turn the area into a more pedestrian-friendly one.
CIM Group also owns 260 Townsend and 211 Main Street, both of which are also located in the SoMa District. The two properties are Class A office buildings that currently boast 100 percent occupancy.
San Francisco’s office vacancy rates dropped in the fourth quarter of 2012, according to commercial real estate data provider Marcus & Millichap Real Estate Investment Services. The city’s office sector has outperformed the national rates over the past four years, and as the overall market seems to bounce back, San Francisco is expected to continue its positive evolution as well.
Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com