San Francisco Business Times - by J.K. Dineen
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Friday, June 27, 2008
Lembi's Nob Hill Tower sells for luxurious $37M
More details have emerged on the sale of the Nob Hill Tower, the 72-unit apartment building the Lembi Group recently sold to a joint venture between the Prado Group and principals of the Felson Companies. The joint venture paid $37.2 million for the property at 1221 Jones St., which works out to an astounding $517,569 per unit, $496 per residential square foot, and $345 per gross square foot. The property traded for a 4.2 percent cap rate and 11.9 times gross income.
The broker in the transaction was Dan McGue, now of Paragon Real Estate Group, who represented the seller and the buyer.
McGue said the building has four "coveted characteristics" rarely found in one building: location, luxury, views, and parking.
"The property has a prestigious Nob Hill address, it is a luxury doorman building, it has unobstructed Golden Gate Bridge views to the west, Huntington Park/Bay Bridge views to the east, and a rare commodity in Nob Hill and San Francisco generally: 83 subterranean parking spaces with over 1 space per unit," said McGue. "This property is located in a neighborhood where view condos and co-ops routinely sell for $1,500 per square foot."
Dan Safier, president of the Prado Group, called it "an irreplaceable, institutional-quality asset in a fortress location." He said the price was 60 percent of replacement cost.
"You could not build a 14-story, high-rise view property today at the top of Nob Hill," said Safier.
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