ASB Real Estate Investments has completed the USD61.3 million acquisition of 989 Market Street, a 111,497-square-foot Class A office building in San Francisco.
The purchase from seller Harbert Management Corporation was made on behalf of ASB’s Allegiance Real Estate Fund, a USD3.5 billion core vehicle.
The six-story building’s office space is 94 per cent leased to Zendesk, the cloud-based help desk provider, and Zoosk, the social dating service.
The property’s architectural features ─ including 10-to-15 foot exposed ceilings and flexible 17,000-square-foot-floor plans ─ provide creative build-out solutions. The property also features 13,000 square feet of prime retail space on Market Street currently leased to Blick Art Materials, one of the nation’s largest and oldest art suppliers.
Robert Bellinger, president and CEO of ASB Real Estate Investments, says: “Led by Twitter, Spotify, Yammer and Intuit, new and expanding technology companies have made the Mid-Market District a location of choice, leading to a market renaissance, from which our investors can take advantage. The property’s proximity to Union Square and the extension of premier retailing along Market Street also translates to great long-term fundamentals for the retail space.”
ASB Real Estate Investments currently manages four other investments in San Francisco: the retail space at 200 Powell Street; the 795 Folsom office building; 135 Mississippi St, an office building; and apartments at 333 Fremont St. An ASB landholding at 350 Bush/500 Pine was sold in April.