JP Morgan Pitching Mixed-Use Complex in SF
San Francisco’s landmark Pacific Place is on the market again.
The mixed-use complex, at 12 & 22 Fourth Street in the city’s Union Square neighborhood, could attract bids of about $485 million. The owner, J.P. Morgan Asset Management, has given the listing to Eastdil Secured.
The 436,000-square-foot property, which is fully leased, encompasses two buildings between Mission and Market Streets in the tony South of Market area. A nine-story building at 12 Fourth Street consists of the 192-unit Hotel Zelos — leased to Pebblebrook Hotel of Bethesda, Md., until 2097 — and 100,000 sf of retail space. A 16-story building at 22 Fourth Street has 202,000 sf of office space and 29,000 sf of retail space.
The tenants include software company Intuit (all of the office space at 22 Fourth Street until 2025); Old Navy (59,000 sf of retail space at 12 Fourth Street until 2023); and the Container Store (all of the retail space at 22 Fourth Street). The office and retail space have a weighted average remaining lease term of about seven years.
The building with the hotel was developed in 1907 and renovated most recently in 2014. The other building was developed in 1981.
Jamestown Properties of Atlanta acquired the complex in 2004 from Pacific Resources PCX Development of San Francisco for $184 million. Jamestown spent $20 million renovating common areas in the office building and a portion of the retail space. Pebblebrook signed a lease on the hotel in 2012.
J.P Morgan acquired Pacific Place in 2014 for $415 million. It has since pumped about $30 million into improvements to the retail space, the lobby of the office building and the heating/air conditioning systems.
The property is next to the Westfield San Francisco Centre mall and above the Powell Street subway and commuter-rail station.