Additional supplemental income will be generated from the future parking contract at 925 Bryant Street.
Showplace Square, a submarket of the SOMA, is the primary wholesale and interior design district servicing Northern California, Oregon and Northern Nevada. Showplace Square has over 1.5 million square feet of permanent showroom, including 888 Brannan and 850 Brannan.
SKB's capital investment in the these two buildings is expected to not only spark renewed interest in the Giftcenter but also increase Pavilion rental income and trade show revenue streams.
“After a combination of capital work and marketing attention, new tenants and customers alike should be attracted to the Giftcenter because of its location in the rapidly changing SOMA area,” says Bob Scanlan, SKB's founder, chairman and CEO.
“It has historically enjoyed long-term occupancy by its tenants due to the lack of competitive mart alternatives in the region and the critical synergy generated from housing the jewelry, gift and apparel wholesalers in one locale.”
Nearby, the University of California at San Francisco is designing a 2.7 million square-foot campus development to accommodate over 9,000 bio-technology students in Mission Bay, a suburb of the SOMA.
In addition, new residential construction, with 32,000 units either completed or planned, is adding a mixed-use housing component to the district.
SKB acquired the Giftcenter and Jewelrymart from Pacific Union Development, which has owned and operated the buildings since 1976. Acquisition financing was provided by Wachovia Securities.
Approximately half of the equity SKB used to acquire the buildings came from SKB Real Estate Investors LP, a private equity fund to acquire value-add retail, office and industrial properties throughout the Western United States.
“We are continuing to focus on what we do best, which is acquiring assets in 'A' locations that have B-class improvements and then repositioning those assets in their respective submarkets,” says Scanlan.
“We have several additional properties and portfolios under contract to be acquired over the next several weeks.”
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
