Investment Overview

445 Powell Street represents a tremendous opportunity for a retail or office owner-user investor to acquire and occupy this high-identity generational asset in San Francisco’s world-renowned Union Square district. The historically significant property, a blend of French Renaissance Revival and Beaux-Arts architectural styles, features an attractive ground floor and second-level façade ideal for retail display and enhancing the branding and identity of any company. IDEAL OWNER-USER SCENARIO 445 Powell Street provides an ideal scenario for the owner-user investor. Bank of America has occupied all three levels of the property under a triple-net lease since 1990. Historically, as a business accounts branch catering to hospitality and retail businesses in and around Union Square, the bank’s operations have reduced significantly at this location over the years. The second floor is unused by staff or banking customers. The safe deposit services formerly on the sub-level have been transferred to Bank of America’s location at One Powell Street, leaving only a lunchroom rarely used by staff. The main-level branch remains in use; however, the entire branch is closed for lunch, a practice uncommon for a thriving banking location. The current term for the bank’s lease expires in January 2026. The lease includes two five-year options to extend the term at the prevailing fair market rental rate(s). However, the minimum rent level of the option period(s) cannot fall below $900,000 annually triple-net, the equivalent of over $160.00 per square foot annually over the entire building, the vast majority of which the Bank of America does not use. Based on available anecdotal evidence, including Bank of America’s recent extension of its flagship Union Square location at One Powell Street, a mere two blocks from 445 Powell Street, the chances the bank will elect to renew its lease at the required $900,000 annually appear far less than slim. In acquiring 445 Powell Street, an owner-user with a retail or office use will benefit from collecting above-market rent of $83,333 ($14.96) per sq. ft. in monthly triple-net income from Bank of America until the lease expires on January 21, 2026. During this time, the bank will remain obligated to secure and maintain the building and provide cash flows while the owner-user investor prepares plans and applies for tenant improvement permits. LOCATION 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 significant 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, historical restaurant favorite Sears Fine Foods, and the recently announced Nintendo flagship store, one of only two in the Nation. 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. The subject property comprises two floors above grade over a sub-level. The sub-level is fully finished, common in the Union Square district, and includes ADA-compliant restrooms. The property enjoys vertical transportation from elevator service to all levels, which also serves the lower level. The approximate gross rentable areas are 1,778, 1,668, and 2,103 square feet for the ground, second, and sub-level floors, respectively, for a total of 5,569 square feet. The roof is a flat, built-up type, and the roof-mounted is a gas-fired, heat-pump type, providing heating and cooling to the entire premises. San Francisco’s Union Square district is poised for a dramatic recovery from the COVID-19 pandemic’s prolonged impact. New retail leases have been executed for retail space near the subject property with retailers such as Rolex, St. John, Breitling, Patek-Philippe, Nintendo, and more. Domestic, local Bay Area, and international business tourist visits to Union Square are increasing. 445 Powell Street offers an owner-user arguably a once-a-century opportunity to acquire and occupy a core, generational real estate asset in one of the nation's most recognized locations.