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Press Release, December 13, 2016

ARA Acquires Class A Trophy Office Asset in San Francisco's Transbay District

American Realty Advisors (“ARA”), a leading real estate investment firm, announced the acquisition of Foundry Square III, a Class A trophy office asset located in the heart of San Francisco’s highly sought-after and amenity-rich Transbay District. ARA has acquired the property on behalf of one of its open-end commingled real estate funds. The seller, a development joint venture between Tishman Speyer and institutional investors advised by J.P. Morgan Asset Management, completed the building in 2014.

Located one block from San Francisco’s visionary $4.5 billion Transbay Transit Center, Foundry Square III is at the intersection of the South Financial and SOMA submarkets and is surrounded by premier technology, financial, legal and consumer goods companies. The area is in immediate proximity to a number of public transit options and neighborhood amenities.

The LEED Certified-Gold asset consists of a single 10-story 291,093 sf dynamic office building that includes ground floor retail space. Foundry Square III, built in 2014, is 100% leased to high quality tenants including IBM, NASDAQ, Perkins Coie, Neustar, and Silicon Valley Bank. The property features state-of-the-art building systems, floor to ceiling glass, abundant building amenities including an open air sky deck, large efficient floor plates and a two-story lobby with a unique living wall.

Drew Hess, Senior Director, Investment Group, American Realty Advisors, notes, “acquiring a recently completed high-quality asset with long-term leases in-place to creditworthy tenants at First and Howard streets is the ultimate core investment.  We see San Francisco continuing to lead global innovation with this location as the epicenter.”

ARA focuses its national investment activity in major metropolitan markets that are innovation hubs containing high concentrations of our nation’s globally competitive industries that benefit from highly educated/professional human capital.

 “This acquisition gives us a significant position in one of the strongest office markets in the country adding to an existing San Francisco office portfolio that includes 153 Townsend in SOMA,” adds Austin Maddux, Assistant Portfolio Manager at American Realty Advisors. “Foundry Square III brings stability of income and potential future upside in an urban setting that is poised for long-term value appreciation. This acquisition represents the type of high-quality assets our firm continues to seek and we are pleased to add this exceptional property to our portfolio.”

The seller was represented by Jeffrey Weber and Stephen Van Dusen of Eastdil Secured. 

ABOUT AMERICAN REALTY ADVISORS

With more than $8.0 billion in assets under management, American Realty Advisors is a leading provider of commercial real estate investment management services.  For over 28 years, ARA has managed capital for institutional investors utilizing core and value-added commingled funds and separate accounts. ARA acquires assets directly or provides equity, preferred equity, mezzanine debt, debt, and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multi-family, and retail properties. 

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