The building, which is located at 425 Market St., is a 38-story office tower that was built in 1973 and is partially owned by MetLife Inc., IBM and Fremont Properties. These three companies own a total of 86% of the building. The remainder of the building is owned by Shorenstein Co., which has decided to retain its share.
425 Market St. was designed by architects Skidmore, Owings & Merrill and features a large lobby and granite-paved plaza. The building is the heart of the city's Financial District.
According to a local realtor, the building is currently valued at approximately $280 psf. However, he adds, due to the building's prime location and appeal to large tenants, it may be sold at a higher rate.
Sources say that the building owners are putting the property on the block to "test the waters," meaning that an asking rate has not been set. Instead, they are interested in seeing what kind of offers they receive in a market that has very little product at the moment.
If the property sells, it will be the first major office building sale in San Francisco since Fremont Properties sold its 75% share in 199 Fremont St. to GLL Real Estate Partners, a German investment company. The sale was executed at approximately $310 psf.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
