The office portion of Pacific Place was recently renovated. It now contains a new coffee bar and cafe concept by Small Foods.

SAN FRANCISCO -- JP Morgan Chase & Co. has acquired Pacific Place, a 430,000-square-foot office, retail and hotel property in downtown San Francisco for an undisclosed sum. The property is located at the intersection of 4th and Market streets at the nexus of the Union Square, South of Market and Financial District neighborhoods. 

Pacific Place contains three adjacent properties. They include 16 floors of office space, about 200 feet of Market Street retail storefront and the Palomar Hotel, a five-floor, 198-room luxury boutique hotel. 

The 202,000-square-foot office portion was leased to Intuit last year after the building was repositioned. It is currently home to Demandforce, which is a part of Intuit's Small Business Division. The renovation included enhancements to the lobby, in addition to a new coffee bar and cafe concept by Small Foods. 

The retail portion contains flagship stores for Levi's and Old Navy, as well as space for The Container Store. 

The asset was held by the Jamestown Premier Property Fund, the firm's flagship core and core-plus investment vehicle for institutional investors. Eastdil Secured represented Jamestown in the transaction. 

"The great collaboration with our team allowed us to position Pacific Place as a dynamic retail and office asset," says Michael Phillips, Jamestown's COO. "The addition of a signature tenant like Intuit and its long-term lease created an attractive investment for a buyer. We remain committed to the San Francisco Bay Area as we are very engaged in the community through our other local properties."

Pacific City's two-story open design will grant most of the tenants ocean views.

The new development is situated on a site that overlooks the Huntington Beach Pier and Pacific Ocean. Its two-story open design will grant most of the tenants ocean views. 

The tenant roster will include a mix of national retailers that represent "iconic California lifestyle brands," in addition to several well-known restaurants and an Equinox fitness center. The adjacent Lot 579 marketplace will feature local and regional food artisans in a farmer's market-style setting. 

Pacific City is scheduled to open next summer.

"What attracted us to this investment was the location and opportunity to create a special place that provides an experience beyond the usual shopping trip," says Lindsay Parton, DJM's president. "As a developer and owner of major retail projects in Orange County, including Bella Terra Shopping Center in Huntington Beach and Lido Marina Village in Newport Beach, we are bullish on coastal Orange County." 

The non-recourse financing, which consisted of a $56.5 million senior loan and a $37 million mezzanine loan, was arranged by George Smith Partners. Only a minimal amount of pre-leasing was required for the funding.

The 7,720-square-foot Elephant Bar in Rancho Bernardo was one of the restaurants affected by the closures.

COSTA MESA, CALIF. -- S.B. Restaurant Co., the Costa Mesa-based parent company of the Elephant Bar casual dining chain, has filed for Chapter 11 bankruptcy. The company has also closed 16 of its 29 restaurants, which are located throughout six states. 

Restaurants affected by the closures include the Elephant Bar locations in Irvine, Rancho Bernardo (San Diego), Palm Desert, Valencia, Northridge, Simi Valley, Burbank and Goleta, Calif., among other locations.

The City and County of San Francisco currently occupy 75 percent of the Market Street building.

SAN FRANCISCO -- Patson Cos. has acquired a 140,000-square-foot office building at 1155 Market St. in San Francisco for $72.6 million. The deal represents an internal rate of return of more than 56 percent for investors. 

The 11-story building was virtually empty when Laurus Corp. acquired it in 2011, as the single tenant was in the process of vacating. The company implemented a tenant improvement program and re-leased more than 75 percent of the building to the city and county of San Francisco within 90 days. 

The building also underwent a $14 million renovation program, which included upgrades to the facade, lobby, corridors, bathrooms, elevators and common areas, among other items.

"When we acquired 1155 Market Street, the San Francisco mid-market location was in the early stages of revitalization," says Philip Cyburt, CEO of Laurus. "We were able to capitalize on the momentum, executing a focused business plan and aggressively pursuing targeted goals, efforts that ended up achieving over three times equity multiple for our investors."

The majority of the sales proceeds will be rolled into the Ethika Diversified Opportunity Real Estate Fund. Laurus formed this fund to provide investors access to a unique platform that invests in opportunistic and value-add assets in the United States.

The five fee title buildings and 12 land parcels are subject to ground leases at the office campus.

NEWPORT BEACH, CALIF. -- A joint venture between AEW and Kearny Real Estate Company has acquired five fee title buildings and 12 land parcels within Newport Corporate Plaza in Newport Beach for $41.5 million. The 24-building Newport Corporate Plaza is situated on 20 acres of land on Corporate Plaza Drive. 

The acquired properties are subject to ground leases at the office campus. The joint venture was represented by CBRE's Gary Stache. The unnamed seller was represented by Don Nourse and Jim Nourse of Lee & Associates - Newport Beach.

NBC 7 San Diego plans to use the space for a new television studio and administrative offices.

SAN DIEGO -- An entity of NBC 7 San Diego has acquired a 52,347-square-foot office building in San Diego for $9.6 million. The Class A building is located at 9680 Granite Ridge Drive in the StoneCrest office complex of Kearny Mesa. 

The NBC station plans to use the space for a new television studio and administrative offices. NBC 7 San Diego is an NBCUniversal Owned Television Station. 

The entity that acquired the asset was KNSD Granite Ridge LLC, which was represented in the transaction by Tim Cowden, Jay Arnett and David Kim of Colliers International. The seller, T-C Stonecrest LLC, was represented by CBRE's Brad Black and Mike Hoeck. 

"Evolving media technologies, a need for a larger studio, and today's favorable cost of funds made it advantageous for NBC 7 San Diego to purchase their own building," says Cowden.