Bentall Kennedy Places 600 California in San Francisco Under Contract

Posted on November 4, 2014 by publisher in CommercialFinanceINDUSTRY news

By Jon Peterson

Seattle-based Bentall Kennedy has put under contract the purchase of the 358,590 square foot 600 California Street office building in San Francisco for around $600 per square foot or $215.1 million, according to sources aware of the transaction.

Bentall Kennedy has not responded to phone calls and e-mails seeking comment for this story.

The seller of the property is New York City-based Clarion Partners. The Los Angeles office of the real estate manager also declined to comment when contacted for this article.

The property is being sold as an off-market deal, and the transaction between the two parties has not yet closed.

This deal will earn Clarion a significant profit on the sale should the current pricing hold. The real estate manager had acquired the property for $180 million or $502 per square foot in July of 2012. This situation is considered a short-term hold according to industrial standards. Most institutional investors hold on to properties for a three- to seven-year time period.

600 California is a 358,590 square foot office building. The 22-story property was initially developed in 1992 and completed in 1994.

The property is located within the North Financial District sub-market of the San Francisco office market. The sale of 600 California will be the second major office building in the sub-market to be near a sale. The Rockpoint Group is in the process of paying $650 per square foot or $307 million for 275 Battery Street.

The North Financial District area is the largest sub-market for office buildings in San Francisco, according to the 3rd quarter research & forecast report prepared by the San Francisco office of Colliers International. Its 116 buildings and 28.4 million square feet of space account for 28.4 percent of all the office space in San Francisco.

This submarket remains very tight. Colliers stated in its report that the vacancy was at 7.9 percent and was unchanged from the second to the third quarter.

 

Source: http://news.theregistrysf.com/bentall-kennedy-places-600-california-san-francisco-contract/the

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