Falcon Acquires 220 Post Street in San Francisco

ACQUISITION

Falcon Acquires 220 Post Street in San Francisco

Falcon Real Estate Investment Company, LP closed the purchase 220 Post Street in San Francisco. This property is on a long-term lease to Saks, Incorporated for use as the Men’s Store of the Saks Fifth Avenue Division.

This is the third property that Falcon has acquired in recent years on Post Street, which is one of the most important retail locations in the United States. 220 Post Street is immediately adjacent to 228-240 Post Street, already being managed by Falcon. These two buildings were formerly combined as the home of Gump’s, the famous San Francisco specialty retailer and the current purchase brings these buildings back under common ownership. In addition, two years ago Falcon purchased and now manages the very well-known Wells Fargo Building at the corner of Post and Montgomery Streets.

220 Post was acquired at a price of $31.2 million, representing a first year’s capitalization rate of 7.2%. Financing was provided by Credit Suisse First Boston resulting in a cash-on-cash yield to the investors of 8.2%.