Commercial property sales in San Francisco

Property selling, residential or commercial depends on location mainly. This is proved once again at San Francisco that its historic submarket – Jackson Square – saw to it a mixed-use commercial property, The Pansini building along with another building changed hands for a good price of $16 million put together, even in this not-so-bright commercial real estate market.

Full details of the purchase activity are as follows:

The five-story Pansini building was built in the year 1985 and the promoters were the Savoy Corporation. The said building was located at the renowned Jackson Square – the address being 170 Columbus Street, just on the corner of Columbus Avenue and Kearny Street. The building had five stories together with lower level and ground floor retail stores; upper floors were leased for various offices; and the building was attached with a four-level subterranean parking garage. Pansini building measured totally 62,225 square feet, exclusive of parking.

Another building clubbed in the sale is situated at 1455 North McDowell Boulevard in the Redwood Business Park in Petaluma. This is a one-story affair, built in 1992, measuring 34,399 square feet. Sonoma Technology people occupied this building – almost 65 percent of it – on lease for their use.

It is reported that Rona Real Estate, LLC, a private investment firm clinched the purchase deal from Savoy Corporation, brokered by Colliers International, a brokerage company.

Now about the location – Jackson Square – it is a submarket for the San Francisco real estate in attracting investors by its location and brisk business. Commercial properties coming from this location has no dearth for buyers, owing to its expansive 2.26 million square feet business area.

This submarket is popular among investment seekers with its historically proved lesser vacancy rates of buildings, where important commercial activities such as – design firms, technology outfits, advertising companies and law firms – are carrying on their business.

It is reported in the Collier International Mid Year Report that Jackson Square recorded a vacancy rate of 11.6 percent this year and its occupancy growth is 8,251 square feet.

The selling agents said that there is considerable demand for commercial properties in this area and the supply is short. They boasted of this sale price in the above property deal, as an indication of activity picking up in commercial real estate of San Francisco.

Posted by Amitesh Kumar on Jul 28 2010. Filed under Market Updates. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry