BH Properties Acquires 117,000-Square-Foot Office Building on San Francisco’s Market Street
Former Zendesk Headquarters is Firm’s Third Bay Area Acquisition Following 2023 Purchases of Anchorage Square and the Holy Names University Campus
San Francisco, CA—September 17, 2024–BH Properties, a vertically integrated, value-add real estate investment company with a regional office in San Francisco, continues to expand its Bay Area portfolio with the acquisition of 989 Market Street, a 117,000-square-foot office and ground-floor retail building in the city’s Mid-Market neighborhood. Originally constructed in 1907, the property underwent an extensive renovation in 2018 with market-leading tenant improvements as the global headquarters of software giant Zendesk. At the time of the sale, the building was approximately 50% leased. Seller was represented by JLL’s Erik Hanson and team. Terms of the deal are not available.
“As a value-add focused investor, we are always on the lookout for properties that have a special combination of quality, location, and value, in markets that we believe will deliver long term growth,” said Jim Brooks, President of BH Properties. “989 Market Street was an opportunity to acquire an historical building that has been enhanced to meet the needs of modern creative tenants in the heart of San Francisco. As companies continue to re-evaluate their future space needs, we expect there to be growing demand for spaces and buildings that can accommodate medium and small creative space users and provide direct access to all the amenities the city has to offer.”
With high open ceilings and top-tier buildouts, 989 Market boasts headquarters-quality office space with ground floor retail, offering a unique combination of architecturally significant exteriors and modern, plug-and-play interiors. In addition to nearby amenities and entertainment, tenants have direct access to Bay Area Rapid Transit (BART) and SFMTA’s Muni public transportation networks.
With a regional office in San Francisco, BH Properties has been ramping up its acquisition efforts in the region, including the 2023 purchase of the 322,000-square-foot mixed use Anchorage Square in Fisherman’s Wharf, and the acquisition of the former Holy Names University Campus in the Oakland Hills. With 989 Market, the company owns and operates approximately 11 million square feet across 16 states.
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About BH Properties
Founded 31 years ago, privately held BH Properties (https://www.bhproperties.com) is a vertically integrated real estate investment company focusing on the acquisition and management of a geographically and product diverse portfolio of assets. The Los Angeles-based company, with six regional offices in San Francisco, Phoenix, Dallas, Houston, Seattle and Riverside, CA, continues to focus on value-add transactions, distressed debt, gap financing, and ground leases.
