The 135,000 sf of vacancy is seen as an opportunity given the Financial District's average vacancy rate and average asking rate, which are approximately 7% and $40 per sf, respectively. Hines, Sterling's partner in the acquisition, will assume the on-site property management and leasing responsibilities for the building.
The acquisition is Sterling's sixth in this market since in the last couple of years. "We believe that the timing is right to continue to expand in this market due to its resurgence and the recent leasing activity in the San Francisco area," says Hines SVP Paul Paradis.
Located between Montgomery and Kearney streets, 333 Bush was designed by Skidmore Owings & Merrill. Nearby landmarks include Union Square, the Crocker Galleria, and several top hotels and restaurants.
Sterling American Property is currently investing its fifth fund, Sterling American Property V, a discretionary fund in excess of $600 million that has an emphasis on office and multifamily investments.
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