550 Kearny Street

San Francisco, CA

Property Overview

Brickman acquired the fee simple interest in 550 Kearny, a 193,011 square foot Class A office building located in San Francisco, California. The 10-story building was built in 1957 and renovated in 1981 and 2012.  The Property consists of ten floors of office space located above a two level, below-grade parking garage. 550 Kearny offered an opportunity to acquire a well-located asset in a one of the strongest office markets in the United States. Brickman purchased the Property for $75.55 million or approximately $391 per square foot.

Property type: Office

Investment type: Equity

Size: 196,438 SF

Investment date: July 2013

Investment Thesis

The Property represented an outstanding opportunity to acquire a high quality, well-located asset at an attractive basis relative to replacement cost. Brickman’s purchase price of $75.55 million, or $391 per square foot, was below comparable sales in the immediate surrounding area. At the time of acquisition, sales of similar buildings in the Financial District averaged $457 per square foot and development costs for Class A office towers were in excess of $700 per square foot. Brickman has performed some speculative construction and lease up of vacant suites as well as various base building capital improvements.

550 Kearny Street