Two Landmark Buildings are Acquired as CIM Group Expands and Credit Suisse Enters Local Market
- Nov 21, 2013
As the final weeks of 2013 come to a close, the San Francisco office market seems to be heating up with investors eager to tie up their big money deals before the end of the fourth quarter. Two of the largest deals of the year in the local office market were recently completed as Credit Suisse and CIM Group moved on the market to acquire assets. Credit Suisse dished out $105 million for the Adam Grant Building while Los Angeles-based CIM Group paid approximately $48.3 million for the San Francisco Call Building.
The Adam Grant Building is located at 114 Sansome Street and offers 186,785 square feet of office space. The asset’s current vacancy rate stands at around 14 percent, and rent rates at the property are around 20 percent lower than the average value for the market, the San Francisco Business Times writes.
The 14-story historic property is 105 years old, and its last major renovation process started in 2000 with a focus on renewing major building systems and the facility’s common areas. The building has held LEED Gold certification for existing buildings since 2012 and has an Energy Star score of 93, both major selling points for a property of its kind. Credit Suisse has chosen the Adam Grant Building as its first San Francisco purchase, with the company already owning assets in major markets such as New York, Boston, Chicago and Washington D.C.
The other recent major acquisition was completed by CIM Group, when the company acquired the Call Building asset at 703 Market Street. The buyer paid a per square-foot rate of around $350 for the 93,000-square-foot property that is also known as Central Tower, with a 45,000 square-foot annex also part of the deal. The building has been around for more than a century and has been under the ownership of the same family for the past seven decades, SFBT writes. The property is 87 percent occupied and has a tenant roster of about 100 names that fill its 21 stories. The building has received tons of praise throughout its existence, not only for its architecture, but also for its build quality, having resisted the San Francisco earthquake of 1906.