A joint venture between Frontline Realty Capital and Triyar Realty Group has purchased a four-story office building in San Francisco for $28 million from Hudson Pacific Properties.
Located at 625 2nd St in the Rincon/South Beach area, the historic property was built in 1906 and renovated in 1999. The sale price represents approximately $202.38 per square foot based on the 138,354-square-foot figure cited in transaction records, or $163.56 per square foot based on the building's total 171,187 square feet.
The transaction marks a substantial decrease from the property's previous sale in September 2011, when it traded for $56.4 million, or $329.46 per square foot. The building currently has a 52% vacancy rate with 89,001 square feet available, while market asking rents in the area average $37.50 per square foot.
The 625 Second building features numerous amenities including 24-hour access, security systems, an Energy Star label, and a car charging station. It also offers excellent transit connectivity with nearby bus, commuter rail, and metro/subway options.
This acquisition adds to Triyar Realty Group's portfolio of 65 properties totaling over 5.5 million square feet. The company owns six office properties representing about 9.2% of its total holdings. Over the past 24 months, Triyar has acquired properties worth $35.65 million.
The seller, Hudson Pacific Properties, maintains a substantial presence in commercial real estate with 149 owned properties comprising approximately 17.4 million square feet across its portfolio.