Broadway Real Estate buys South San Francisco building for $66 million
San Francisco Business Times - March 8, 2007 by J.K. Dineen
Broadway Real Estate Partners has acquired 701 Gateway in South San Francisco for $66 million, further indication that the New York-based landlord is poised to become one of the Bay Area’s biggest institutional buyers in 2007.
Broadway paid $388 a square foot for the 170,000-square-foot building, according to NAI BT Commercial Managing Director Gary Willard, who brokered the deal for seller CF Gateway LLC.
The deal comes as Broadway is in contract to buy a national portfolio of properties from Beacon Capital Partners, a portfolio that includes four San Francisco properties: One Sansome St., 50 Beale St., 100 California St., and 120 Howard St. In June 2006, Broadway picked up 8000 Marina Blvd in Brisbane.
“I think this is further evidence of the bullish nature of capital when it comes to the Peninsula office market,” said Willard.
Willard said the building has appreciated dramatically in the last 12 months. While rents have increased 12 percent in that time, the value of the buildings has skyrocketed. A year ago 701 Gateway would have traded in the neighborhood of $250-a-square-foot, Willard said.
He said the investors are increasingly willing to accept lower cap rates in anticipation of a significant rent spike.
BT Commercial Managing Partner Mike Moran described Broadway as “very aggressive and very active.” Moran said typically one new prominent investor emerges each year that is especially bullish on Bay Area real estate. This year, Broadway may be…[continue to article]
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Mark Choey is Senior Sales Associate, Top Producer and principal of Climb Real Estate Group | Vanguard Properties. Mark specializes primarily in condo and loft sales in SOMA, South Beach, Rincon Hill, and Mission Bay.
Specializing in large buildings and especially new developments like The Infinity where he is the top agent in total sales, Mark has a passion for city living. Mark is the creator of www.SFnewdevelopments.com to help buyers and sellers navigate the dynamic new development condo housing market.
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