Pacific Waterfront Partners sells The Piers development on San Francisco's waterfront for $103 million
By Kevin Truong | San Francisco Business Times | March 23, 2017
The sale of the upscale Piers waterfront office and retail complex for $103 million nearly broke records for the highest price per square foot ever paid on a property in San Francisco, at $1,250 per square foot.
Invesco Real Estate picked up the property from the California State Teachers’ Retirement System and Pacific Waterfront Partners LLC.
In 2001, when developer Pacific Waterfront Properties won a 66-year ground lease from the Port of San Francisco to develop what would become The Piers, the site was dirty, distressed and falling into disrepair.
“When they bought this it was seismically unstable waterfront property that wasn’t necessarily oriented toward retail and office,” said Paul Nelson with Eastdil Secured. “In some ways, it was a blank canvas.”
The developers had a vision to revitalize the 82,158-square-foot property — which spans the historic Piers 1-1/2, 3 and 5 — into a world-class office and retail development with some of the best waterfront views in the city.
Pacific Waterfront’s $54 million renovation effort wrapped up in 2006, transforming the piers by blending the historic architecture with modern building systems. It wasn’t easy. Building over an active waterfront is complex and requires scuba gear along with heavy machinery.
“When we bid on The Piers, the buildings were so dilapidated that portions were falling into the Bay,” Simon Snellgrove, the founding principal of PWP, told the Business Times last year.
The Pier’s continued success in signing tenants over the past decade is a testament to how well the building owners and developers achieved their goals in revitalizing the property.
The building’s office space is 97 percent leased to tenants anchored by Bloomberg and its retail space features high-profile restaurants Coqueta, Hard Water and La Mar.