Search
 

PREI Buys 150 Spear St. for $142M

SAN FRANCISCO-The 257,000-sf office building in the South Financial District is 76% leased.

By Brian K. Miller | Updated on January 07, 2008

SAN FRANCISCO-Principal Real Estate Investors is the new owner of 150 Spear St., a 256,827-sf (net rentable) class A office tower in this city’s South Financial District. The Des Moines, IA-based institutional real estate fund manager paid $142 million or $557 per sf for the asset, according to an industry source, which pegged the first-year cap rate at 3.6%.

Built in 1981, the 18-story building was 76% occupied at the time of sale, according to the source. Tenants include NASDAQ, Kessler Pacific, the Department of Defense and Market Tools. Building amenities include underground parking and unobstructed views of San Francisco Bay.

PREI’s plan is to add value by leasing up the vacant space in the building. While vacancy in the building is 24% the overall vacancy in the 20 million-sf South Financial District is 7.1% on a direct basis and 11.1% including sublease space, according to CB Richard Ellis. PREI acquisitions director Chris Aust could not immediately be reached Monday morning for comment.

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.