Zendesk HQ Acquired by ASB Real Estate Investments in $60 Million Deal
- Jul 02, 2014
989 Market Street, the San Francisco home of cloud-based help desk provider Zendesk, just traded hands in a deal worth approximately $61.3 million. The office asset was acquired by ASB Real Estate Investments from seller Harbert Management Corporation, a deal in which the seller received more than double what it had paid for the property back in 2011. This recent purchase was made on behalf of ASB’s Allegiance Real Estate Fund, a $3.5 billion vehicle.
Located between 5th and 6th Streets in the Mid-Market district, 989 Market Street offers a total of 111,497 square feet of Class A office space. Zendesk and Zoosk, a social dating service, are the two tenants at the six-story building, currently taking up approximately 94 percent of the available space. The building also provides 13,000 square feet of street-level retail space with Market Street frontage, currently under contract with Blick Art Materials, an art supplier.
The building offers floorplates of 17,000 square feet that also offer ceiling heights of between 10 and 15 feet. The property offers great proximity to Union Square, as well as Powell Street and Civic Center BART subway stations. The area will soon add a nearby access point to Caltrain. The President and CEO of ASB Real Estate Investments, Robert Bellinger, the new owner of 989 Market Street, noted that “led by Twitter, Spotify, Yammer and Intuit, new and expanding tech companies have made the Mid-Market District a location of choice, leading to a market renaissance, from which our investors can take advantage.”
He also pointed out that given the property’s proximity to Union Square and the amount of premier retailing along Market St., will translate into sustained interest for the retail component of the building.