Clarion Partners appears poised to sell the San Francisco office building it bought in 2014 for $107 million, about two-thirds that price.
Presidio Bay Ventures Likely Buyer for 60 Spear Street San Francisco Business Times reports. Cyrus Sanandaji, managing principal of the San Francisco-based development firm, told the publication that his firm had put out bids on the property but could not disclose the price and said the deal had not yet been completed.
“We will continue to watch for opportunistic deals in the city centre,” Sanandaj said.
An unnamed “high-net-worth” individual who partnered with the developer bought the 11-story South Financial District tower for $235 a square foot, around the time New York’s Clarion Partners purchased it, according to multiple sources. One-third of the value nine years ago.
Of course, the city has changed a lot since then, with a third of the offices now empty, Southern financial district faces serious challenges recent. AAccording to Colliers International, fur rents across the city have fallen by 13% compared with the first quarter and are 20% below their pre-pandemic peak.
when sold 60 spears The closures will add to a growing number of office buildings in downtown San Francisco, which are reportedly trading for more than half their previous prices. SKS to Purchase 350 California StreetThe property, which is 75% vacant, sold for about $200 a square foot, 75% cheaper than what Tokyo-based Mitsubishi UFJ Financial Group wanted to pay for the property in 2020. Offer reportedly accepted for 550 California That is Banks cut $60m of $108m paid for tower in 2005 After rejecting an offer deemed too low last year. The buyer is unknown.
When the sale closes, the price will go from rumor to reality and could set a new floor for San Francisco business prices.
— Emily Landers