45 Third Street

45 Third Street

Mixed-Use Tower

San Francisco, CA

Entitlement of a signature mixed-use tower with hotel and residential as the focal point of project in the heart of Downtown San Francisco.

Asset Type

Hotel / Residential / Mixed-use

Acquired

Option Agreement executed 2020

DEVELOPED

TBD Development Start

Scope

600’ Mixed-use Tower

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Key Investment Thesis

With a location at the convergence of business and tourist activity in San Francisco and a desirable housing and hospitality mixed use profile, 45 Third Street is poised to be one of the beneficiaries of San Francisco’s push to support new large housing-oriented developments in the City core.

 

JMA Value Creation

JMA and its partner Build Inc. were selected by the Hearst Corporation as the optionee after a highly competitive RFP process involving some of the largest and most highly regarded tower developers in the nation

Developed project concept, programming and design alongside international design firm Skidmore Owings & Merrill

Submitted project preliminary application to San Francisco Planning Department to move forward entitlement process and full entitlement
Engaged with world class membership based residential operator on 45 Third project branding and programming
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Epic / Waterbar Restaurants

Waterbar & Epic Steak

(369-399 Embarcadero)

San Francisco, CA

Two iconic Pat Kuleto restaurants with an unrivaled location on San Francisco’s waterfront over a panoramic coastline view of San Francisco Bay and Bay Bridge.

Asset Type

Commercial

Acquired

2018

Scope

18,000 SF: 2 Restaurants
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Key Investment Thesis

Opportunity to develop industry-leading restaurants in a prime waterfront location.

  • Extremely desirable location on the Embarcadero in close proximity to Oracle Park and the Moscone Center
  • Opportunity to partner with restaurateur Pat Kuleto
  • This is a long-term hold project that has increasing ROI year after year

JMA Value Creation

Negotiated a long-term lease with an exceptional restaurant group and developed the property.
Asset management team works with the restaurants to ensure maximum profitability and sustain the position as two of the top-grossing restaurants in San Francisco
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Fairmont Heritage Place Ghirardelli Square

Fairmont Heritage Place Ghirardelli Square

San Francisco, CA

Ghirardelli Square is a world-renowned national historic landmark sitting on one of the most coveted waterfront properties in San Francisco. Transformational project given landmark designation of the site and change in tenant mix from tourist centric to high-end.

Asset Type

Hotel / Private Residence Club

Acquired

2004

DEVELOPED

2008

Scope

Mixed use retail (101,000 SF across 12 buildings and 283 parking spaces) and a 53 private residence club.

EXIT

Retail: Sold 2010
Private Residence Club: 2012 / 2020 / 2023
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Key Investment Thesis

Ghirardelli Square is a historic San Francisco destination, offering shopping, art galleries, family events, walking tours and more. Steeped in the history of the Ghirardelli chocolate family, dating back to the mid-1800s, Ghirardelli Square was the original site of the family’s chocolate, cocoa, mustard, and box factories. Today, it is a popular destination for visitors and Bay Area residents who desire a unique shopping and dining experience. As one of the first successful mixed-use redevelopment projects in the United States, Ghirardelli Square has been a San Francisco landmark for more than 100 years and to ensure its preservation for future generations, the Square was granted National Historic Register status in 1982. Fairmont Heritage Place opened in 2008 and was Fairmont’s first urban private residence.

JMA Value Creation

Acquisition due diligence and feasibility analysis of the entire development site
Development and construction management
JMA in-house specialists worked hand-in hand with contractors and designers on redevelopment concept
Sourced and negotiated sponsorship from Fairmont to be the brand and manager of the 54 fractional hotel project
Asset managed all aspects of the project including retail lease and financial oversight
Hired and currently manage a JMA inhouse sales team for the fractional sales of the Fairmont Heritage Place
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Hearst Hotel Auberge

Hearst Hotel Auberge

San Francisco, CA

Renovation and transformational adaptive re-use of the iconic Hearst Building into the premier luxury hotel, the Hearst Hotel Auberge Collection, in downtown San Francisco.

Asset Type
Hotel
Redevelopment / Conversion

2024

Scope

125 keys

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Key Investment Thesis

The Hearst Hotel will address the market void as the only highly differentiated, A+ location luxury hotel in San Francisco, a chronically undersupplied market for luxury product.

  • An irreplaceable location at the corner of 3rd and Market St., landmark building with historic character, and combination of the Hearst and Auberge brands to create an authentic and unique luxury hotel product to fill the market void
  • Ability to deliver what will be the most differentiated hotel in the entire San Francisco market in 2026, when San Francisco hospitality is projected to be fully recovered
  • Luxury hotels, and the Auberge portfolio in particular, have performed exceptionally well throughout the COVID-19 pandemic and are the hotel segment with the strongest secular trends going forward

JMA Value Creation

As a result of 8 years of pre-development, the project is fully entitled, with thorough due diligence and cost exercises and research completed, under an option to enter into an 85-year ground lease agreement with the Hearst Corporation.

JMA secured a management agreement with world class luxury hotel brand and operator Auberge Hotels
Negotiated ground lease structure with the Hearst Corporation that provides significant flexibility to the investment

Engaged renowned interior designer Roman & Williams to design a truly bespoke and unmatched luxury offering

The project is approved by the National Park Service to receive historic tax credits equal to 20% of the eligible project cost
The project is fully approved – CEQA and City entitlements – and past any appeal periods. The extensive entitlement period is further evidence of significant market barriers to entry.
JMA has been able to significantly diligence the project across all key disciplines, including taking steel beam sample for materials testing to verify the structural design and integrity
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