625 Market Street is a 71,141-square-foot, 15-story office building at the corner of Market Street and New Montgomery Street in downtown San Francisco. The historic landmark was purchased by Bentall Green Oak in 2011 with under market rents and significant deferred maintenance issues. After a comprehensive capital improvement campaign, under Kennedy Wilson Property Services the building was LEED certified 2017.
Strategy & Results
Kennedy Wilson Property Services' goal was to maintain cash flow and high occupancy while completing approximately $3 million in capital improvements within the first three years of managing the property. Tenant satisfaction was critical during the construction process and a significant amount of time and effort went into maintaining positive tenant relations. Work completed included full retrofit and renovation of the four elevators located in the building, mechanical systems replacement, and seven floors of tenant improvements. In addition, the energy management system and building security systems were fully upgraded.
The building maintained an 89% occupancy rate over the three-year construction period, generating above pro forma rental rates while reducing operating expenses.