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Rincon Center Brings Sellers $275M

SAN FRANCISCO-The mixed-use property here includes 757,000 sf of office space and 320 apartment units. Beacon Capital is the new owner.

By Brian K. Miller | Updated on July 18, 2006

SAN FRANCISCO-Rincon Center has sold for $275 million. The mixed-use property here includes 757,000 sf of office space in two buildings, 320 apartment units and 381 subterranean parking spaces. Rincon I is a five-story renovated historic U. S. Post Office facility. Rincon II comprises two 22-story towers built in the late 1980′s.

The seller is a joint venture of Blackstone Real Estate Partners II and Glenborough Realty Trust, a San Mateo-based REIT. Blackstone owned a 90% stake in the property and Glenborough the remainder. A source at Blackstone confirmed for GlobeSt.com that Boston-based Beacon Capital is the new owner. Beacon Capital senior managing director Jeremy Fletcher was on a plane and unavailable for comment.

Glenborough CEO Andrew Batinovich tells GlobeSt.com the sale was prompted by the renewal of the largest office tenant, SBC/Pac Bell, which signed a long-term lease, and the potential to convert the multifamily units to condominiums. Glenborough’s share of the gain from the June sale was approximately $9.5 million, which equates to an internal rate of return in excess of 20% to all investors, according to a statement issued Monday.

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