By Jon Peterson
The 631,255 square foot office building located at 44 Montgomery Street in San Francisco has been placed on the market for sale. The sellers have indicated to the marketplace that the pricing could start at $400 million and end up trading the property for an amount higher than that, according to sources familiar with the property.
The seller of the property in the State Teachers Retirement System of Ohio. Robert Jordan is a senior acquisitions officer II for the pension fund. He declined to comment when contacted for this story. He works out of the investor’s regional office in San Francisco. The pension fund’s office space is located within the building that is up for sale.
The company that has been awarded the listing for the sale is the San Francisco office of Eastdil Secured. This firm also did not respond to several phone calls seeking comment for this story.
Ohio STRS has owned the asset for some time. The pension fund had purchased the 42-story asset for $111 million in 1997, according to sources that track the sale of office buildings in San Francisco. The belief is that the property will need some renovation so additional capital will be needed to invest into the property beyond the purchase price by the new owner.
Ohio STRS has a fairly unique investment strategy for a public pension fund. The investor mostly looks to buy properties on a direct basis without the services of any real estate managers on a separate account basis.
The pension fund, according to its Web site, has four target markets on the West Coast. These are San Francisco, Seattle, Los Angeles and San Diego. Its investment focus is on the four main property types of office, industrial, retail apartments.