A Texas investor has acquired another retail property in San Francisco’s Union Square, continuing a series of purchases in the area. The buyer, through an entity named 240 Post LLC, purchased the five-story, 32,000-square-foot building at 240 Post Street. The transaction was first reported by the San Francisco Business Times.
While the exact price of the sale was not made public, filings show that 240 Post LLC raised $33 million for the purchase, which equates to about $1,031 per square foot. The seller was Teachers Insurance & Annuity Association of America, who had owned the building since 2012. Eastdil Secured handled brokerage duties for the deal and Cushman & Wakefield is expected to continue as leasing agent.
This latest acquisition adds to a growing portfolio in San Francisco for the investor. In August, he bought One Union Square for $42.5 million. Last year’s purchases included several properties: among them was the Burberry building at 225 Post Street and a group of eleven retail units across five buildings near Hayes Valley for $10.9 million.
Other recent buyers in Union Square include Bijan Chadorchi from Beverly Hills—who acquired 251 Post for $30.5 million—and Fountainhead Development from Alaska, which bought 800 Market Street (known as San Francisco’s “flatiron”) for $17.2 million last month. Ian Jacobs, associated with the Reichmann real estate family, also invested in three major Powell Street properties this year.
The broader Union Square and downtown areas are showing signs of recovery after pandemic-related downturns as new tenants fill previously empty storefronts. Notable brands such as Nintendo and Pop Mart have recently opened on Powell Street; Zara returned to 250 Post after closing its flagship earlier this year; luxury retailers like Apple, Tiffany & Co., Breitling, Rolex, Patek Philippe, A. Lange & Söhne and St. John have all established locations nearby.
Speaking to The Real Deal last year about his ongoing investment strategy in downtown San Francisco, MacMahon said: “My partners and I are long-term investors, and we believe San Francisco in the long-term is a great market for investing in real estate.”
