Bridges Capital, an emerging startup in San Francisco’s office market, has bought an 84,000-square-foot office building in the Northern Waterfront for $28 million.
The locally based family office led by Brandon Boze purchased the century-old Abbott Building at 1045 Sansome Street, the San Francisco Business Times reported, citing an unidentified source.
The sellers were Dallas-based Lincoln Property and Goldman Sachs, based in New York. The deal works out to $333 per square foot.
The investor and an affiliate of Goldman’s merchant banking division bought the building in early 2020 for $69.5 million, or $827 per square foot. They planned to add a roof deck and improved shared tenant spaces.
In January, they listed the property for about $30 million, or around $357 per square foot, 57 percent less than what the building sold for five years earlier.
The Abbott Building was built in 1926 by Frank Howard Abbott to house a printing plant. In the middle of the last century, the family converted it into offices. By 2019, the city’s office vacancy rate was around 4 percent, and the historic building was 95 percent leased to tech, architecture and media firms.
The building is near Jackson Square, a bright spot postpandemic in San Francisco. It has a sawtooth glass roof, open-floor plans and polished concrete floors, in addition to a rooftop deck and revamped tenant lounge.
When Lincoln and Goldman put it on the market, the four-story building was 65 percent leased, according to CBRE, whose Northern California capital markets team brokered the sale.
A pandemic shift to remote work helped drive office vacancy in San Francisco to nearly 37 percent, according to CBRE.
CBRE’s Kyle Kovac, who represented the sellers alongside Mike Taquino, said the building is well-positioned to capitalize on what he described as San Francisco’s “rapidly expanding tenant base,” according to a release.
In November, Bridges teamed up with locally based Redco Development to buy another historic building in San Francisco, paying $25.75 million for the 12-story, 85,600-square-foot Kohl Building at 400 Montgomery Street, in the Financial District.
The deal worked out to $301 per square foot, compared to $906 per square foot paid for the building in 2019.
Bridges Capital was founded last fall by Boze, a director at CBRE Group and a former partner at ValueAct Capital, according to state business records.
— Dana Bartholomew
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