San Francisco office building sales are rare these days. However, a small property in the downtown area near Salesforce Park changed hands last week.
Long Market Property Partners is a San Francisco-based real estate investment firm that closed on Friday the purchase of 40 Jessie St. - a 48.500-square foot building. Golden Gate University listed the building in fall last year.
Public records reveal that Long Market, in partnership with DRA Advisors paid $17.6m, or $362 per sq. ft., for the Financial District.
Formerly, the Student Services Center was located in this building behind GGU’s Mission Street Campus.
Long Market stated in a press release that 40 Jessie was fully leased, and had been renovated recently. Long Market describes the property as "a research and development office in the heart San Francisco's Transbay district."
Justin Shapiro is a principal of Long Market. He said that the building's existing improvements were "well-suited" to San Francisco's current office climate, which is re-imagining older office stock for modern tenant uses.
Shapiro stated that "we believe this building is unique in downtown San Francisco, and it will be a model for others to follow as older office assets will be repurposed" in the future.
GGU did respond immediately to a comment request sent on Thursday. Last year, I reported that the university had listed 40 Jessie as well as its larger Financial District Campus at 536 Mission St. up for sale. This 210,000-square foot building has been owned by GGU for over 50 years. Eastdil Secured handles the GGU property listings. Both buildings are within a block from Salesforce Tower. No word has been released on the disposition of the remaining properties.
GGU President David Fike informed me at the time that the move to sell the properties was due to the continued shift towards hybrid and remote education, although Fike stated the private nonprofit institution will remain in San Francisco.
GGU has roots dating back to 1850. It offers undergraduate and graduate degrees for professional careers in accounting, taxation and law. According to its website, it has a total enrollment of 3,387.