Joe's Jeans Building Sells in Union Square

It’s taking more time than usual and prices are down, but retail real estate is still selling in San Francisco and other retail capitals.

A six-story building anchored by a Joe’s Jeans boutique in San Francisco’s Union Square recently sold for $8 million, or $773 per square foot, at least $1 million below the original asking price, according to brokers.

The 11,000-square-foot building, located at 239 Grant Ave., is fully leased and sits across from the Banana Republic flagship store, ensuring mostly positive traffic. Joe’s will remain as one of six tenants. The building is two blocks away from Post Street, where other popular shops reside. Other retailers in the immediate vicinity include Coach, Shreves, DeBeers and Prada.

The Joe’s building was recently renovated. A group of investors led by private businessman Peter Tso acquired the property from Frances Chen, who heads up 239 Grant LLC.

The building was recently listed at $9.1 million, according to real estate guide LoopNet. The lower going price still tops the $7.6 million price tag that shoe retailer Nine West agreed upon, but the deal fell out of escrow about 18 months ago, said broker Joseph Lanyadoo.

Recent sales in the area are well below the height of the market a couple of years ago, when nearby properties were selling for about $1,500 to $1,800 per square foot. In 2007, for example, investors paid $1,800 per square foot for a neighboring property at 240 Post St., a building previously occupied by AnnTaylor.—Robert McAllister