Investment Overview

445 Powell Street represents a unique opportunity for an investor to acquire a generational asset in San Francisco’s world-renowned Union Square district. The current family has owned the subject property since 1952, but it is believed the property has not been formally marketed for sale since its original construction in 1907. This historically significant property has been occupied by Bank of America under a triple-net lease since 1990. The current base term expires in January 2026, and the lease includes two options to extend the term at the then-prevailing fair market rental rate(s). The options to extend the term include a minimum rent floor, which provides the property owner with clearly defined minimum rent levels through the fair market rental rate option periods. Long-term tenancy, high-impact signage, and corporate branding have established class-leading goodwill for Bank of America over the past 25 years with tourist and business visitors, students, and residents. The property boasts two highly successful automated teller machines (“ATM”) at the building’s façade. The tenant occupies the entire three-level property with branch services and ATMs on the ground floor, new accounts, and loan services on the second floor, and support office use in the fully improved lower level, ADA restrooms, and other traditional office tenant improvements. The property enjoys vertical transportation to all levels via an elevator, including the lower level. Located a mere half-block from San Francisco’s Union Square, the subject property is situated on Powell Street, the major north/south arterial in the Union Square district, and the Powell Street cable car line. Powell Street is scheduled for a major aesthetic makeover from Market Street to Geary Street. Adjacent and nearby retailers merely steps from 445 Powell Street include Walgreens, The Beacon Grand Hotel (formerly the Sir Francis Drake Hotel), Sax Fifth Avenue, Tiffany & Co., Apple Store, Williams-Sonoma, and historical local favorite Sears Fine Foods. World-class hospitality properties within a block of the subject property include the Westin St. Francis, San Francisco Marriot Union Square, Chancellor Hotel, Grand Hyatt, and the Inn at Union Square. San Francisco’s Union Square district is poised for a dramatic recovery from the Covid-19 pandemic’s prolonged impact. New retail leases are being executed near the subject property with retailers such as Rolex, St. John, Breitling, Patek-Phillipe, and more. Domestic, local Bay Area, and business tourist visits and foot traffic to Union Square are increasing. 445 Powell Street offers an investor arguably a once-a-century opportunity to a core, generational real estate asset.