American Realty Advisors (ARA) has set a new record in San Franciso’s office market through the acquisition of a prime asset, according to a source close to the deal.
Fund manager ARA said it bought Foundry Square III, a class-A office in the Transbay District of the city, for one of its open-ended funds.
According to a source, ARA paid $350m (€336m) for 10-storey, 291,092sqft building at roughly $1200 per sqft – a record for the city.
ARA did not disclose the price paid, but senior director Drew Hess said the deal was “the ultimate core investment”.
Foundry Square III was built in 2014 by developer Tishman Speyer in joint venture with JP Morgan Asset Management.
It is situated at the intersection of the South Financial and South of Market (SOMA) submarkets, at the centre of a cluster of technology and financial companies.
The building is fully let to a number of tenants including IBM, NASDAQ, Perkins Coie, Neustar, and Silicon Valley Bank.
ARA has a particular focus on innovation hubs in major metropolitan markets in the US. It already owns 153 Townsend, an office building in SOMA.
“We see San Francisco continuing to lead global innovation with this location as the epicentre,” said Hess.