SAN FRANCISCO-As GlobeSt.com previously reported, the 21-story 475 Sansome St. office tower here in downtown San Francisco has changed hands. While HFF brokers involved still remain mum, GlobeSt.com spoke with buyer Multi-Employer Property Trust, who confirms what unidentified sources previously quoted us, which was that it went for $450 per square foot.
That number equates to approximately $158.97 million for the 353,269-square-foot tower. In addition, while no parties involved could confirm the seller, an unidentified source tells GlobeSt.com that the seller is soverign wealth fund, Abu Dhabi Investment Authority.
The buyer was a JV between MEPT and Bentall Kennedy. “On behalf of MEPT, we have strategically focused on acquiring a select number of high-quality CBD office buildings in US primary markets over the past eighteen months,” explains David Antonelli, EVP and MEPT portfolio manager at Bentall Kennedy.
Antonelli adds that “475 Sansome St. was particularly appealing since it is in a market with high barriers to entry, supply constraints and solid fundamentals driven by a diverse economic base. We believe market conditions in San Francisco suggest that office rents in the North Financial District submarket will continue to improve over the next few years.”
Furthermore, he adds, 475 Sansome's sustainable features and energy-efficient operations are a complement to MEPT's existing office portfolio and consistent with the Fund's global leadership in environmental performance.” The office was awarded the Leadership in Energy and Environmental Design for Existing Buildings Gold certification in 2010 by the USGBC and has the E.P.A.'s ENERGY STAR designation.
According to a prepared statement, the property is attractive to tenants due to its convenient location, large and efficient floor plates, and above-average parking. The location of the property is at the corner of Sansome Street and Clay Street in the North Financial District, which is immediately adjacent to the landmark Transamerica Pyramid Center, and two blocks from Embarcadero Center.
“With the acquisition of 475 Sansome, MEPT has successfully made investments of approximately $2.5 billion over the last three years to further its strategic plan,” stated Jim Howard, SVP of acquisitions at Bentall Kennedy, in a prepared statement. “We continue to seek attractive investment opportunities for the Fund. Our focus remains on identifying high-quality CBD office properties, grocery-anchored retail centers in urban infill or established suburban neighborhoods, and multi-family assets in urban markets serving the Echo-Boom generation.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
