799 Market Street
Acquisition of an existing building in an off-market transaction. Subsequent retenanting of the upper office floors, and then renewal of the existing major retailer.
At the time of acquisition, the lower four floors totaling 55,000 square feet were leased to a retail tenant at under-market rents, and the upper floors were occupied by the seller, a major financial institution.
The principals of Urban Realty, together with its capital partner, negotiated a purchase whereby the seller leased back several floors on an interim basis. The balance was then leased to quality tenants. Subsequently, the rent of the retail space was negotiated to market, resulting in an 80%+ increase in the net rent. This was one of the largest retail leases completed in San Francisco at that time.
The property was subsequently sold at a significant gain.