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Broadway Partners Shopping One Sansome

SAN FRANCISCO-Acquired less than a year ago as part of a $5-billion portfolio, the 652,000-sf Downtown office tower here is 93% leased.

By Brian K. Miller | Updated on March 27, 2008

SAN FRANCISCO-Broadway Partners has brokers marketing One Sansome St., a 652,000-sf Downtown office tower here that it acquired last spring as part of a 24-building portfolio, multiple industry sources tell GlobeSt.com. Also known as Citigroup Center because of its anchor tenant, the 43-story building is expected to trade for close to $400 million, which would translate to a sub-6% capitalization rate initially.

The North Financial District office building is encumbered with a $250-million, five-year, interest only (6.1%) mortgage that matures in mid 2012. The asset is seen as “core-plus” due to its 93% occupancy rate and near-term rollover, which could allow the new owner to raise rents and, therefore, its capitalization rate. In-place rents are said to be well below current asking rates, which are in the $60s per sf.

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