Originally constructed in 1908, the ten-story building is fully occupied and is designated a Category 1 historic building in the Kearny-Mason-Sutter conservation district. Luxury retailer Gucci anchors the ground and second floors, with six office tenants above and a large 30x50 foot billboard facing Union Square leased to Apple. The property is certified LEED Gold and has been well maintained by the previous owner.
“The acquisition of 240 Stockton Street complements our high-street properties on Post Street around Union Square and our properties on Rodeo Drive and North Michigan Avenue – all properties owned for many years,” said Michael Beattie, Grosvenor’s chief investment officer. “The purchase of 240 Stockton Street enhances Grosvenor’s position as a high-street retail specialist and demonstrates Grosvenor’s commitment to the area.”
Union Square is recognized as one of the world’s premier shopping destinations and an international destination for luxury retailers. Local upscale retailers such as Gump’s and Wilkes Bashford; international fashion houses including Hermès and Dior; and mainstream tenants such as Apple and Zara contribute to the area’s vibrancy. The growth of San Francisco’s visitor industry continued to break records in 2015, with both spending and total visitors reaching the highest levels ever. Over 24.6 million visitors came to San Francisco in 2015 - up 2.7% from 2014 – and spent $9.3 billion, or $25.4 million, per day.
“240 Stockton Street is a significant corner retail property and is home to Gucci, one of Union Square’s highest profile tenants. In addition, unobstructed views of Union Square and generous natural light add to the desirability of this office address” said Peter Staver, Grosvenor’s senior investment manager.
Mike Taquino, Kyle Kovac and Daniel Cressman at Cornish & Carey Commercial represented Grosvenor in this transaction.
Grosvenor’s existing Union Square portfolio consists of 180, 185 and 251 Post Street, which feature tenants such as Dior, Coach, Façonnable and North Face. Investing in high quality assets in dynamic, vibrant cities with strong education systems and accessibility is an important part of Grosvenor’s investment strategy. When the Company acquired 185 Post Street in 2009, they upgraded it with a modern glass façade that artfully preserved the original brick exterior. The property later received an Excellence in Architecture Honor Award from the San Francisco chapter of the America Institute of Architects (AIA).
Grosvenor recently acquired 394 Pacific Avenue, a 50,220-square-foot office building in Jackson Square. They plan on renovating the property by improving the ground floor street experience and installing a new lobby, enhancing the façade and exposing the original exterior brick walls. Grosvenor’s local development team is also advancing plans to build two boutique residential projects atop Nob Hill and in Jackson Square.
For more information contact:
CEO Chase Communications
+1 202 997 8677
Director of Corporate Marketing & Communications, Grosvenor Americas
+1 604 640 3535
Notes to Editors
Grosvenor Group has 17 offices in 11 countries and assets in 16 countries. The Group has regional investment and development businesses in Britain and Ireland, the Americas, and Asia Pacific. The Group’s international fund management business operates across Continental Europe. It also has indirect investments, managed centrally. Unusual for a private company, Grosvenor publishes a detailed reporting suite - Annual Review, Financial Statements, Environment Data and index of sustainability reporting under the GRI initiative - available at: www.grosvenor.com.
Grosvenor Americas aims to become a market leader in select geographical areas and sectors in Canada and the USA through focused, strategic expansion. Grosvenor Americas uses their knowledge of the cities they work in and their property skills to develop projects that contribute to the vibrancy and attractiveness of those communities. With particular interest in retail, residential condominiums and apartments, and mixed-use sectors, the Company currently operates in Washington, D.C., Seattle, San Francisco, Los Angeles, Vancouver and Calgary. As at 31 December 2015, Grosvenor Americas had assets under management of $2.7B USD. For more information, please visit www.grosvenor.com.