Have San Francisco Office Values Finally Bottom? A SoMa complex sold for 27% less than the asking price.
Three San Francisco office buildings relisted at fire sale prices are now in escrow, including a 13-story office building at 180 Howard Street, According to the San Francisco Business Timesciting unknown sources.
San Francisco-based Ellis Partners and Boston-based Baupost Group purchased the 250,000-square-foot building south of the market.this Seller is the State Bar of California.
Estimated sale price of $62 million, or $250 per square foot. The building was purchased a year ago but not for sale.Relisted earlier this year $85 million, or $400 per square foot.
Two other San Francisco office buildings that came on the market since the pandemic failed to find a buyer willing to pay the asking price, but eventually did, and at a much lower price.
An office building at 350 California Street was once occupied by Union Bank, but the contract price is 75% below what Mitsubishi UFJ Financial Group hopes to sell for in 2020.San Francisco-based SKS Real Estate Partners paid $67.5 million.
An office building at 550 California Street is expected to sell for less than half what owner Wells Fargo paid for it nearly two decades ago.the buyer is Not yet disclosed.
All three deals are pending and have not yet been completed.
Ongoing negotiations suggest that owners of single-tenant buildings facing vacancy issues may have accepted weak demand in San Francisco and are willing to take significant losses.
Other buildings on the market that are likely to sell at steep discounts include a 157,400-square-foot tower at 60 Speer Street and a 138,000-square-foot tower at 123 Townsend Street, The Business Times reported.
Defaults are rising as rising interest rates make it difficult to refinance buildings.almost A third of offices remain empty. and nEarly $2 billion loan expected to mature this year in san franciscoNearly $2 billion more will be invested next year.
— Dana Bartholomew
