San Francisco’s blazing rental rebound just collided with a cold splash of reality for one out-of-town landlord on Nob Hill.
ArtHaus Partners shelled out $25 million last week for the 12-story, 117-unit mixed-use building at 1330 Bush Street, leaving the prior owner, a Maryland-domiciled investment firm, staring at a paper loss north of $5 million compared with what the property fetched in 2011. The building, which includes more than 16,000 square feet of ground-floor commercial space, will be rebranded ArtHaus Terraces. All of this is unfolding while asking rents in San Francisco are soaring to record highs.
As reported by The Real Deal, ArtHaus Partners bought the property from Equity Residential, with transfer-tax records putting the sale price at $25 million. That reporting also notes that New York-based BrightSpire Capital provided an approximately $24 million loan for the acquisition and that ArtHaus plans to operate the building under the ArtHaus Terraces name…