TMG Partners and Invesco Real Estate have snapped up an office building at 600 Battery St. in San Francisco's Jackson Square, marking TMG's second stint owning the site.
Terms of the deal were not disclosed, but the Business Times previously reported the 120,000-square-foot building could fetch a more than $1,000 per square foot or near $125 million, according a source close to the deal.
The seller was a joint venture of M & J Wilkow and the National Real Estate Advisors LLC. Marketing company IPG Mediabrands occupies the site, but that lease expires in 2020.
TMG's owned the building in the 1990's, renovating it and selling in 1998. The building's unusually large 40,000-square-foot floorplates and modern amenities attracted TMG back for a second time, the company said in a statement. It was renovated again in 2000 to Class A standards.
"It's a rare opportunity to acquire a property whose history you know this well," said TMG Partners' CIO Matt Field.
TMG has recently been active in the Oakland market, winning approvals for a massive 760,000-square foot tower at 2201 Valley St. and looking to unload another adjacent building it renovated at 2201 Broadway. Also in Oakland, Invesco and partner Hines recently started leasing up a 385-unit residential development next to the MacArthur BART station.
The historic Jackson Square district has long been home to boutiques and smaller public relations and architecture firms. But tech companies have increasingly eyed the neighborhood, with companies like former Twitter CEO Dick Costolo's firm 01 Advisors taking space. Other creative companies, such as footwear maker Allbirds, recently expanded in the area.
Vacancies were about 5.4 percent in the Jackson Square and North Waterfront areas in the fourth quarters, with asking rents at about $71 annually per square foot, according to brokerage CBRE. That's on the softer end of the San Francisco market overall, where asking rents hit $81 per square foot and vacancies dipped to 4.1 percent.
Kyle Kovac and Mike Taquino, two brokers with CBRE, represented the seller.