The fireplace sale of growing older workplace buildings in San Francisco exhibits no indicators of abating: this week, Wells Fargo disclosed it’s promoting a 13-story Monetary District workplace tower it listed final 12 months for $160M for about $45M.
The financial institution is making ready to take a $60M loss on the constructing, positioned at 550 California Road. Wells Fargo purchased the constructing in 2005 for $108M, or $304 per SF. The sale value interprets to about $125 per SF, based on a report within the San Francisco Enterprise Occasions.
That is the second time 550 California Road has gone on the promoting block up to now twelve months. Final June, JLL listed the constructing, however received no takers for the asking value.
Bids for the 355K SF constructing at 550 California Road got here in round $39M, Inexperienced Road reported. The unique whisper value was $160M. After Wells Fargo assigned Eastdil Secured to relaunch the itemizing in January, the whisper value was slashed to $53 million, the report mentioned.
The customer of the 63-year-old tower has not been disclosed. The financial institution mentioned it vacated the constructing as employees shifted to distant work.
Final June, a 33-story constructing at 333 Market Road went available on the market shortly after Wells Fargo renewed its lease for the whole 620K SF tower for an additional ten years. Columbia Property Belief and Allianz Actual Property Belief have been buying the constructing.
Columbia paid $395M for the 622K SF tower at 333 Market in 2012 and now owns a 55% stake within the property.
In pulling again from 550 California Road, Wells Fargo consolidated its workplace area with a give attention to its HQ at 420 Montgomery Road. The discount within the financial institution’s workplace footprint included the termination of a least for workplace area at 45 Fremont.
Final month, two extra downtown workplace properties have been listed with pricing that displays collapsing workplace valuations in San Francisco.
CBRE Funding Administration is buying a 138K SF workplace constructing at 123 Townsend Road which is 73% leased to PayPal. The property, which is being marketed by Newmark, is predicted to get gives round $90 million, properly beneath the $140M CBRE Funding paid for it in July 2020, based on a Inexperienced Road report.
NYC-based Clarion Companions is advertising and marketing a 157K SF constructing at 60 Spear Road that’s 37% occupied and is valued at $55 million, about half the $107M Clarion paid for the constructing in 2014, when it was 80% occupied. JLL is advertising and marketing the constructing for Clarion.
When it was first listed in 2020, the asking value for 350 California Road in Downtown San Francisco was $250M. In an indication of the occasions within the beleaguered metropolis, the workplace tower was bought final month for about $60M.
MUFG Americas has bought the 286K SF tower at 350 California Road to San Francisco-based developer SKS in a deal estimated at $200 to $225 per SF. A Korean actual property investor is partnering on the deal, based on a report within the San Francisco Enterprise Occasions.
The 22-story Monetary District constructing is almost empty. Union Financial institution, the anchor tenant at 350 California Road, has vacated the constructing. In 2021, bidding on the constructing by no means exceeded $180M and the house owners took it off the market.
For 123 Townsend Road, often called the Townsend Constructing, CBRE Funding is also providing vendor financing. Newmark’s advertising and marketing supplies word that a purchase order at such a low foundation may permit a purchaser to supply aggressive rents to fill vacant area. It additionally touts the steady money movement offered by PayPal, which nonetheless has six years left on its lease and has invested greater than $11Mn into its area since 2018.
JLL is pitching 60 Spear Road as a value-added play, highlighting the constructing’s location within the Monetary District, a block from the Embarcadero BART Station and San Francisco Ferry Terminal. The property was renovated in 2013.
Practically a 3rd of the workplaces in San Francisco are empty, a emptiness fee that approached 30% within the first quarter of 2023.
