Downtown Office Building Trades Hands for $25M

SAN FRANCISCO-Great West Life Co. Inc. has sold 90 New Montgomery St., a 125,000-sf Downtown office building here that was included in its 2003 acquisition of Canada Life Assurance Co., which developed the building in 1986. The 98%-leased property sold for $25 million, or $200 per sf.

The new owner is 90 New Montgomery Partners LP, whose principal address is that of John K. Leung of Fremont, CA, according to the California Secretary of State’s office. His broker in the transaction was George Kosar with Sperry Van Ness. Kosar tells GlobeSt.com that Leung was able to buy the property despite 21 other offers thanks to an all-cash offer, a very short due diligence period and a prior relationship with the seller.

The South Financial District property came on the market in October, a few months after the $7.3-billion merger was complete. There was no asking price and the offer deadline was Oct. 31. Kosar says Leung tied it up in the third week of October, with an all cash offer and a due diligence period of less than 30 days. Many of the competing buyers were institutions, which typically require a longer due diligence period. “One of the other advantages was that the buyer had previously purchased a property from Great Life and performed, so they felt comfortable with him,” says Kosar.