Salesforce set to buy 50 Fremont skyscraper in S.F.'s south financial district

Nov 11, 2014, 11:29am PST UPDATED: Nov 11, 2014, 4:14pm PST

Cory Weinberg

Reporter-San Francisco Business Times

 

Salesforce is set to buy the 50 Fremont office tower from TIAA-CREF, sources close to the deal told the Business Times.

The deal would continue to grow the San Francisco-based software company's real estate footprint. The company is the largest technology employer in San Francisco, with 4,000 employees in the city. Salesforce already leased about a half-million square feet of 50 Fremont in 2012, more than half of the 817,000-square-foot building. That $339 million, 18-year lease gave Salesforce first dibs to purchase the building — if TIAA-CREF decided to sell — or the right to buy in 2017.

The 43-story 50 Fremont is the ninth-largest office tower in San Francisco, according to Business Times research. Mellon Capital Management and Drinker Biddle & Reath LLP are also tenants.

It's not clear just yet how much Salesforce would pay for the building, and representatives for its broker Cushman & Wakefield did not immediately return requests for comment.

UPDATE: Salesforce to join exclusive real estate club with SoMa tower purchase

Salesforce has leased more space in the city than any other company in recent years. The company inked a deal in April to become the anchor tenant of what will be the city's largest building – the Salesforce Tower. That 714,000-square-foot lease is valued at $560 million over 15 and a half years, starting in 2017.

In 2012, Salesforce also leased 444,273 square feet in 350 Mission St., which is being built by Kilroy Realty Corp., and 235,733 square feet in Rincon Center.

The 50 Fremont potential purchase comes in a near-record year for San Francisco office sales. It's expected to be the second-biggest year for office purchases in the city's history, after 2007. About $5 billion worth of sales have already closed, according to CBRE, with about $6.7 billion expected in total this year.

Salesforce refused to comment on the deal. John Cornuke, who runs TIAA-CREF's asset management team, said "it's premature" to comment.

Cushman & Wakefield is representing Salesforce and CBRE is representing TIAA-CREF in the deal. 

 

Source: http://www.bizjournals.com/sanfrancisco/blog/real-estate/2014/11/salesforce-buys-50-fremos

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