PGIM JV Sells San Francisco Asset for $166M

360 Spear St. Image via Google Street View

A partnership between Madison Capital and PGIM Real Estate has sold a 173,907-square-foot mixed-use property in San Francisco. Harvest Properties acquired the building, according to The Real Deal. Cushman & Wakefield Executive Managing Director Seth Siegel assisted the seller.

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The new owner paid $165.5 million for the asset, backed by an acquisition financing package from Deutsche Bank, public records show. The property last changed hands in September 2018, when Digital Realty sold it for $92.3 million.

Located on 1 acre at 360 Spear St., the five-story building was originally constructed in 1924 as a Navy and Marine headquarters. The property includes conference rooms and two passenger elevators. The asset served as a data center until the 2018 sale. Following the acquisition, Madison invested $17 million in a capital improvement plan to “diversify the building’s uses”.

In October 2020, Madison Capital inked 90,000 square feet in leases at the property. Vitalant and Lattice agreed to occupy new space and AT&T signed a lease renewal agreement. ColoServe and Fastmetrics continue to lease data center space at the location.

In April 2020, Harvest Properties paid CIM Group $100 million for the 113,280-square-foot building at 274 Brannan St., less than a mile away from the current acquisition. ACORE Capital originated a $108 million acquisition and development loan, according to CommercialEdge data.

The company has been active in the San Francisco financial district: In August 2019, the firm partnered with Intercontinental Real Estate Corp for the $78.5 million acquisition of 400 Montgomery, an 85,580-square-foot office asset.