The Swig Company and Mitsui Fudosan America, Inc. (MFA), today announced the purchase of 180 Montgomery Street, a 300,000 square-foot Class A office building in the heart of San Francisco’s financial district. The seller was a locally based partnership led by TMG Partners, which had owned the property since September 2000. Built in 1979, the 25-story office tower is currently almost 100 percent leased. Tenants include Bank of the West, Ameriprise, Daoro Zydel, Intermediary Insurance and Schneider & Wallace. Terms of the transaction were not disclosed.
Jeanne Myerson, CEO, The Swig Company, said that 180 Montgomery’s location within the financial district perfectly complements the company’s already significant strategic presence in the downtown market, while also affording the owners the opportunity to add value through a repositioning program.
“We continue to grow in San Francisco, which is one of our core investment markets. Our expanding office portfolio in San Francisco and the Bay Area provides tenants with flexibility, and a wide array of choices through which to expand their presence and grow their businesses in buildings owned and operated to the highest standards by The Swig Company,” said Meyers. “On this project, we are proud to be working with Mitsui Fudosan America. As the U.S. subsidiary of one of the most respected companies in the industry, MFA combines the financial strength of its parent company with its team of knowledgeable professionals in the United States. We are pleased that MFA also recognizes the intrinsic value of 180 Montgomery and has elected to partner with us on this transaction.”
Mitsui Fudosan America owns approximately 2.3 million square feet of commercial space in its flagship property at 1251 Avenue of the Americas in New York, where rents are now breaking $100 per square foot. The company continues to aggressively grow its U.S. portfolio, with a strong focus on the New York, San Francisco, Boston and Los Angeles markets. In the past year, MFA has acquired significant holdings in Washington, D.C. and also owns two substantial properties in downtown Los Angeles that it is holding pending future development opportunities.
“As we planned our reentry into the U.S. commercial real estate market, we were attracted to San Francisco because of its solid underlying fundamentals and the continued, steady recovery of its office market. 180 Montgomery is a stable, incomegenerating property and reflects our broader strategy of acquiring assets that will benefit from repositioning and improvement efforts,” said Kosei Murakami, President and CEO of MFA. “Creating joint venture relationships with capable, experienced partners like Swig fits well with our broader strategy and will enable us to compete effectively in local markets as we build our investment management platform. With its proven track record and rich understanding of the San Francisco market, The Swig Company will be an ideal partner as we continue to upgrade the quality and services at the property.”
The Swig Company owns close to two million square feet of office space in San Francisco, including: The Mills Building at 220 Montgomery Street; The Russ Building at 235 Montgomery Street; 115 Sansome Street and 369 Pine Street in the financial district, and 501 Second Street and 633 Folsom Street in the city’s expanding commercial district south of Market Street. The company also owns commercial development sites at 350 Bush Street and 500 Pine Street. The firm’s other Bay Area holdings include the 900,000 s.f.-plus Kaiser Center in Oakland and 444 Castro Street, a 165,000 s.f. office building in downtown Mountain View. Michel J. Seifer of the Northern California office of Jones Lang LaSalle’s Capital Markets Group marketed 180 Montgomery on behalf of TMG Partners.
About The Swig Company
The Swig Company (www.swigco.com) is a private investment company with a 70+-year history of development, ownership and management activity in commercial real estate properties in major markets throughout the United States. During the past two years, the Company completed more than $1.2 billion in combined transactions, including sales, purchases, refinances and other real estate investment activities. The Swig Company's diversified national portfolio includes over eight and a half million square feet of office buildings in markets such as New York, San Francisco and Southern California. The Company also owns and controls over 800 full-service luxury hotel rooms, approximately 650,000 square feet of industrial space, and an assortment of other credit-leased properties and land parcels. The Swig Company's primary investment mission is to add value as an owner and operating partner to its investment portfolio through proactive asset management, acquisitions, dispositions, selective development and redevelopment, and professional property management. Its target markets include urban, coastal Northern and Southern California, New York City and Washington, D.C.
About Mitsui Fudosan America, Inc
Mitsui Fudosan America, Inc. (MFA) is a real estate investment and development company headquartered in New York, NY. MFA is the U.S. subsidiary of Mitsui Fudosan Co., Ltd. Mitsui Fudosan America, Inc., Japan’s largest publicly quoted real estate company. MFA’s history in the U.S. markets dates back to the early 1970’s and includes its acquisition and redevelopment of the renowned Halekulani Hotel in Waikiki, Hawaii, with additional investments in San Francisco, Los Angeles, San Diego, Washington, D.C., Chicago and New York. MFA’s flagship commercial property is located in Rockefeller Center at 1251 Avenue of the Americas in New York, one of the city’s most prestigious business addresses.
Contact for Mitsui Fudosan America:
Gavin Anderson & Company
Contact for The Swig Company:
Gallen Neilly & Associates