Barings Puts 201 California in San Francisco on the Market, Could Fetch $183MM

By Jon Peterson

Hartford, Conn.-based Barings Real Estate Advisers has put the 262,161 square foot 201 California Street office building in San Francisco on the market for sale. The potential price on the property could reach $700 per square foot or approximately $183.5 million according to multiple sources aware of this property.

Barings declined to comment when it was contacted for this story.

The real estate adviser has owned this property since April of 2007, according to public records. The buyer at that time was known as Cornerstone Real Estate Advisers. It had paid $113.2 million or $431 per square foot for the property when it was purchased.

The office building was first developed in 1980. There will be a chance for the new owner to add some value to the property going forward, which could be accomplished by bringing the existing rents in the property up to market levels, as stated by sources familiar with the property.

Barings currently owns the property as a separate account investment. Its client is the San Francisco-based University of California General Retirement Plan. The separate account currently has around $500 million of real estate assets in this relationship.

This pension fund invests in real estate through either commingled fund or separate accounts throughout the United States. According to its web site, the pension fund holds a total real estate portfolio valued at $3.1 billion, through the end of June. About $1.5 billion or 49 percent of the portfolio is core, 38 percent in value add and the balance in opportunistic.

West Coast Commercial Real Estate News