Case: Roi on the Sf Gift Center

The San Francisco GiftCenter and Jewelrymart (SFGC) provides gift, apparel and jewelry showrooms with wholesale prices to only the trade industry of Northern California and the Northwestern United States. Located in the South of Market District (SOMA) off of the 101 and 280 freeways, the SFGC is the center of ‘Showplace Square.’ ‘Showplace Square’ is home to the up and coming design, home furnishing, apparel, gift and jewelry markets of the Bay Area. Six other wholesale venues are located within walking distance of the SFGC.

The SFGC is divided into two buildings. The first, is 850 Brannan and has three floors plus a lower level. Floors 1 and 2 belong to the ‘JewelryMart’ while floors 3-4 belong to the ‘GiftCenter and FashionMart.’ The second building is located next door at 888 Brannan and is 39,956 sq. ft larger than its neighbor. The first floor of 888 Brannan belongs to the ‘JewerlyMart’ and floors 2-5 belong to the ‘GiftCenter and FashionMart.’ 888 Brannan is 100% leased and is at capacity. Collectively, SFGC has a total of 292 tenants and is at 83% capacity.

Of the five main income sources, the jewelry segment brings a consistent high rate of cash flows. This is attributed to their high tenant retention rate and excellent rental achievement. They are also accredited with a long history of near full occupancy and ‘above market’ rents which contributes to their high rate of cash flow. The other four sources of income include gift/apparel tenants, special events a roof top billboard and two roof top cell phone towers.

Each tenant is a specialist in their field and know what their respective clients are looking for. Clients must either show their approved credential or identification to gain entry to SFGC or they can be seen by appointment made with a specific tenant. The center holds twelve trade shows each year that are open to world-wide retail buyers. Public entry is not granted except on special published dates such as those around the holiday...