Presidio Bay Ventures is planning a renovation that will expand and upgrade an office building in San Francisco after buying the property in August in a deal that signified a reset for the city's hard-hit office market.
The San Francisco-based development firm paid just shy of $41 million for 88 Spear, formerly 60 Spear St. Clarion Partners sold the 157,000-square-foot office for about $260 per square foot. The office was just 33% occupied at the time.
The deal garnered a 2024 CoStar Impact Award for sale/acquisition of the year in San Francisco, selected by an independent panel of local industry professionals.
Presidio plans to expand the building to a 170,000-square-foot, Class A trophy office tower with additions including a spa with cold and warm plunges, saltwater floating pools, steam/sauna rooms, a fitness center, a conference and employee entertainment area, coworking lounges, a cafe and a rooftop bar and restaurant.
About the Deal: The sale "signaled to the market people still believed in San Francisco and that those with a long-term view were finally ready to take advantage of historic pricing and could pull it off," according to Michael Sanberg, head of San Francisco leasing and sales at TCP Touchstone Commercial Partners.
What the Judges Said: "The corner of Spear & Mission has been largely deactivated over the past several years, with Walgreens closing on 60 Spear's ground floor and the Wells Fargo branch across the street [at] 101 Mission also closing," said Paul Picciani, senior vice president of Kidder Mathews. "Presidio Bay Ventures' vision for 60 Spear is comprehensive, and with the patient capital they have behind the project, it should be transformative for that corner and nicely improve the attractiveness of the South Financial District."
They Made It Happen: JLL's Erik Hanson and Rob Hielscher facilitated the transaction.