Singapore-listed business space and industrial real estate investment trust, Ascendas Real Estate Investment Trust (Ascendas Reit) has agreed to acquire two office properties located in San Francisco, the United States for US$560.2 million (S$768.0 million) from B505 Industries, LLC and ARE-San Francisco No. 47, LLC.
The office properties are located at 510 Townsend Street and 505 Brannan Street in the South of Market (SoMa) submarket, the leading submarket in San Francisco with one of the highest concentration (over 85% of inventory) of technology tenants in the city.
“This acquisition allows us to plant a foothold in San Francisco, one of the most dynamic and progressive cities in the US. The properties are newly completed in 2017 and are fully leased to two high quality technology tenants, Stripe and Pinterest, for a long WALE of 9.1 years. We are really excited with this acquisition,” said William Tay, Executive Director and Chief Executive Officer of the Manager.
510 Townsend Street is a seven-storey building with 50 car park spaces. Newly completed in 2017, it features an attractive brick façade, expansive floorplates, high ceiling heights as well as a roof deck with a large urban garden. It has a net lettable area of 27,437 square metres and sits on a freehold land area of 5,504 square metres.
510 Townsend Street is fully leased to Stripe, Inc. (Stripe), a private global technology company that builds and licenses online payment infrastructure.
505 Brannan Street is a six-storey building with 68 car park spaces developed over a freehold land area of 2,377 square metres. It has a net lettable area of 13,935 square metres. Newly completed in 2017, the building has a glass and steel exterior, light-filled two-story lobby, expansive ceiling heights, a landscaped passageway, and a roof deck with panoramic views of the city.
Pinterest, Inc. (Pinterest) has its headquarters at 505 Brannan Street and occupies 100% of the office space. Pinterest’s lease has a remaining lease term of 12.4 years.