SAN FRANCISCO-Hamburg, Germany-based Union Investment Realty GmbH has acquired 555 Mission St., a 33-story, class-A office property in the South Financial District, for approximately $446.5 million. The seller for the LEED-CS Gold-certified property, which was completed in 2008, was developer Tishman Speyer.
The tower has been acquired on behalf of the open-ended real estate fund Unilmmo: Europa. This and other recent acquisitions and dispositions here and in Seattle further increase the geographical diversification of the fund’s American holdings.
555 Mission St. is 88% leased to 12 tenants with an average lease duration of 9.3 years. The anchor tenant is international consulting firm Deloitte, which has a 14-year lease. Designed by Kohn Pederson Fox Associates and Heller Manus Architects, the office complex comprises approximately 557,000 square feet featuring highly efficient layouts.
“In addition to the compelling quality of the building itself, 555 Mission St.’s location in one of North America’s strongest economic regions makes it a particularly sustainable investment for us,” said Volker Noack, a member of the management team at Union, in a prepared statement. “The impressively dynamic development of the submarket should see 555 Mission St. benefiting from rising rents.”
The property is adjacent to the site of the future Transbay Transit Center, which is scheduled for completion in 2017 as a bus and rail transportation hub for the West Coast. Tenants at 555 Mission St. will have direct access to the Center, thereby further enhancing the building’s already excellent public transportation links. In addition to conventional CBD tenants, the area attracts companies from the creative and technology industries seeking space.
A spokesperson from Union tells GlobeSt.com that the firm has been an active investor in US real estate since 1985, when it completed its first acquisition in Washington, D.C. “We are a long-term investor, which means that we keep the assets in our real estate portfolio, in general, for at least five to eight years or even longer.”
The firm has also been active in Europe. As GlobeSt.com reported in January, Union acquired Forde Park, a 504,407-square-foot retail center in the Flensburg region of Germany. The company purchased the shopping center for its real estate fund, UII Shopping Nr. 1. Also, in May 2011 Union sold the SMT office building in Seoul for about $91 million. Local investor TRUS Y7 REIT Co. Ltd. purchased the 400,000-square-foot tower.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
