(EDITOR’S NOTE: According to industry sources, the property sold for $108 million, or about $771 per square foot.)
San Francisco, Calif. – September 23, 2019 – CBRE has announced the sale of 351 California Street, a 16-story, 140,047-sq.-ft. office building in San Francisco, California.
Kyle Kovac, Mike Taquino, Russell Ingrum, Mandy Lee and Giancarlo Sangiacomo of CBRE’s San Francisco office represented the seller, Polidev, Tidewater Capital and affiliates of the Goldman Sachs Merchant Banking Division purchased the property.
Built in 1920, 351 California Street is one of San Francisco’s most recognized historic office buildings located in the amenity-rich Financial District. The property features distinct architectural details, U-shaped floor plates and exposed ceilings. The previous ownership invested approximately $8 million into the property with a partial renovation in 2010 and a significant seismic retrofit in 2015. The building is currently 89% occupied by a diverse roster of tenants, including tech and professional services firms.
The prime location in the Financial District is saturated with amenities including many of San Francisco’s best restaurants, cafes and retailers, as well as providing for immediate transportation access with BART and MUNI stations just blocks away.
San Francisco continues to be the top-performing tenant and investment market in the United States, driven by more than five million sq. ft. of tenant demand. Average Class A asking rates now hover around $86 per sq. ft. while vacancy remains steady at 3.2%. The Financial District is consistently one of San Francisco’s most desirable submarkets with overall Class A asking rents of $87.12—the highest in the city and representative of the area’s continued strong tenant demand.
About Tidewater Capital
Founded in 2013, Tidewater Capital is a San Francisco-based real estate investor, developer and operator with expertise across office, residential, retail, hotel and industrial asset classes. The firm is exclusively focused on the Bay Area and manages a portfolio of approximately $500 million in assets. Tidewater’s investment philosophy is grounded in creating value for all stakeholders and generating positive impact in the communities in which it works. Visit www.tidewatercap.com for more information.
About Goldman Sachs Merchant Banking Division
Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division (MBD) is the primary center for the firm’s long-term principal investing activity. MBD is one of the leading private capital investors in the world with investments across private equity, infrastructure, private debt, growth equity and real estate.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.