In a significant move highlighting the robust San Francisco commercial real estate market, JLL (Jones Lang LaSalle) has successfully arranged a $350 million refinancing for 225 Bush Street Sf, a landmark Class A office building located in the heart of San Francisco’s bustling Financial District. This 580,000-square-foot tower, steeped in history, has secured a fixed-rate loan through Deutsche Bank, with JLL representing the owner, Kylli, Inc., in this major transaction.
225 Bush Street SF: A Testament to San Francisco’s Architectural Heritage
Constructed in 1922, 225 Bush Street SF is not just another office building; it’s a piece of San Francisco history. Originally commissioned as the Standard Oil Building by the legendary John D. Rockefeller, this iconic structure was designed by world-renowned architect George W. Kelham. At the time of its completion, this 22-story architectural marvel held the distinction of being the tallest building in San Francisco, a symbol of the city’s burgeoning economic power in the early 20th century. Its enduring design and prime location have cemented its status as a premier office destination in San Francisco.
Prime Location and Accessibility at 225 Bush Street SF
Located at the prominent corner of Sansome and Bush Streets, 225 Bush Street SF boasts unparalleled accessibility to key San Francisco neighborhoods. The Financial District, South of Market (SOMA), Union Square, and Jackson Square are all within easy reach, making it a highly desirable location for businesses. Furthermore, its proximity to major public transportation hubs, including the Transbay Transit Center and Park, the Ferry Terminal, and Montgomery and Embarcadero BART stations, ensures convenient commutes for employees from across the Bay Area. This strategic positioning enhances the appeal of 225 Bush Street SF for a diverse range of tenants.
Tenant Profile and Market Confidence in 225 Bush Street SF
The enduring appeal of 225 Bush Street SF is further evidenced by its 100% lease occupancy. Currently, the building is home to 31 diverse tenants representing a broad spectrum of industries, including technology, media, business services, consulting, and finance. This diverse tenant mix underscores the building’s attractiveness to leading companies and reflects the strength and dynamism of San Francisco’s economy.
Jordan Angel, Managing Director at JLL, who led the Capital Markets team representing Kylli, emphasized the strength of the San Francisco market. “San Francisco consistently ranks as a top-tier market, outperforming many other cities in crucial areas such as investor demand and financing availability,” Angel stated, referencing JLL Research. He further added, “With tenant demand significantly exceeding available space, we anticipate continued tightening in the market’s fundamentals.” This successful refinancing of 225 Bush Street SF serves as a testament to this positive market outlook and the enduring value of prime San Francisco office properties.
Kylli, Inc. and JLL: Key Players in the 225 Bush Street SF Deal
Kylli, Inc., the owner of 225 Bush Street SF, is a full-service real estate investment management company with a significant portfolio in the San Francisco Bay Area. Focusing on acquiring, developing, and managing high-quality real estate assets, Kylli is committed to sustainability and design excellence. Their San Francisco assets under management exceed 500,000 sq. ft of office space, with further developments underway in the region.
JLL Capital Markets, a global leader in real estate capital solutions, played a pivotal role in arranging this refinancing. With a vast network of specialists worldwide, JLL provides comprehensive services to real estate investors and occupiers, offering expertise in investment advisory, debt and equity placement, and recapitalization. Their involvement in the 225 Bush Street SF deal underscores their market expertise and ability to deliver optimal financial solutions for their clients.
Conclusion: 225 Bush Street SF – A San Francisco Real Estate Success Story
The $350 million refinancing of 225 Bush Street SF is more than just a financial transaction; it’s a reaffirmation of the enduring value and appeal of prime San Francisco commercial real estate. This historic building, with its prestigious location and strong tenant base, continues to be a sought-after address in the Financial District. The deal, expertly facilitated by JLL for Kylli, Inc., and financed by Deutsche Bank, reflects the ongoing strength of the San Francisco office market and the confidence investors have in premier properties like 225 Bush Street SF.
