SAN FRANCISCO-50 Beale St., a distinctive, class-A office tower in the South Financial District, is off the block since a joint venture between the Rockefeller Group and Mitsubishi Estate New York has closed on the acquisition. While the parties involved declined to reveal the sale price to GlobeSt.com, industry sources unrelated to the deal say it was rumored to sell for $300 million and that the seller was a joint venture between Fortress Investment Group and Lehman Brothers Holdings Inc. The seller was advised by Eastdil Secured.
The property, completed in 1968, is 662,060 square feet and has undergone extensive renovations as recently as this year. The LEED-EB-certified building is approximately 90% occupied by major corporations including Bechtel and Blue Shield of California. It was designed by Skidmore Owings & Merrill LLP and built as the headquarters for Bechtel.
The 23-story building is located at the intersection of Beale and Mission sts., two blocks from the future site of the Transbay Transit Center, a $4.2 billion transportation project. As GlobeSt.com previously reported, higher-density developments around urban transportation facilities like Transbay Transit Center is a resurgent trend in some of the larger California cities such as San Francisco, Los Angeles and even parts of San Diego, according to industry experts.
“We are very pleased to partner with Mitsubishi and to expand our holdings in San Francisco,” said Kevin Hackett, president and CEO of the Rockefeller Group. “50 Beale Street is well designed and well maintained, and it will continue to benefit from its quality and location long into the future.”
Masato Kawasaki, EVP of Mitsubishi Estate New York, added that his firm is “aiming to expand our investment in the US market.”
50 Beale St. represents the third joint-venture acquisition completed by the two firms. With this acquisition, the joint venture has acquired more than 1.3 million square feet of US office space over the past 18 months. In 2011, the companies acquired 1100 First St. and 1101 K St. in Washington, DC, which total 347,608 square feet and 306,000 square feet, respectively.
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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.
