445 Powell St

445 Powell Street provides an ideal scenario for the owner-user investor. Bank of America has occupied all three levels of the property under a triple-net lease since 1990. Historically, as a business accounts branch catering to hospitality and retail businesses in and around Union Square, the bank’s operations have reduced significantly at this location over the years. The second floor is unused by staff or banking customers. The safe deposit services formerly on the sub-level have been transferred to Bank of America’s location at One Powell Street, leaving only a lunchroom rarely used by staff. The main-level branch remains in use; however, the entire branch is closed for lunch, a practice uncommon for a thriving banking location. The current term for the bank’s lease expires in January 2026. The lease includes two five-year options to extend the term at the prevailing fair market rental rate(s). However, the minimum rent level of the option period(s) cannot fall below $900,000 annually triple-net, the equivalent of over $160.00 per square foot annually over the entire building, the vast majority of which the Bank of America does not use. Based on available anecdotal evidence, including Bank of America’s recent extension of its flagship Union Square location at One Powell Street, a mere two blocks from 445 Powell Street, the chances the bank will elect to renew its lease at the required $900,000 annually appear near zero. In acquiring 445 Powell Street, an owner-user with a retail or office use will benefit from collecting above-market rent of $83,333 ($14.96) per sq. ft. in monthly triplenet income from Bank of America until the lease expires on January 21, 2026. During this time, the bank will remain obligated to secure and maintain the building and provide cash flows while the owner-user investor prepares plans and applies for tenant improvement permits for its work which would ideally commence when Bank of America vacates.