Search
 

Morgan Stanley Sells 50% Stake in One Market

SAN FRANCISCO-Industry sources familiar with the deal tell GlobeSt.com the sale price was in the vicinity of $730 million.

By Brian K. Miller | Updated on July 04, 2007

SAN FRANCISCO-Morgan Stanley has sold a 50% stake in the 1.4-million-sf One Market Plaza complex here to Paramount Group Real Estate Fund III, the latest investment vehicle of Paramount Group Inc., a privately owned real estate investment and management company. Neither party would confirm the sale price, which local industry sources tell GlobeSt.com came in at around $730 million, which sets the overall value of the complex at $1.46 billion.

Situated at the base of Market Street overlooking the San Francisco Bay, One Market Plaza consists of the 42-story Spear Tower, the 27-story Steuart Tower and the 75 Howard St. parking garage. Morgan Stanley acquired the structures in April as part of a $2.4-billion, seven-property acquisition from Equity Office Properties, which has been selling off much of its portfolio market-by-market since being acquired by Blackstone Group earlier in the year.

One Market is 98% occupied. Tenants include Morgan Lewis & Bockius, Salesforce.com and Capital Group Cos. Several tenants have signed long term leases in the last 24 months. In September 2006, Ironwood Capital Management has signed a long-term lease for the 25th floor of Steuart Tower. In February 2006, Standard & Poor’s renewed its lease for the 15th floor. In April 2005, the law firm of Sedgwick, Detert, Moran & Arnold signed a long-term lease for most of the fifth through eighth floors in the building.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.