By Jon Peterson
New York City-based Blackstone Real Estate Partners is the buyer of the 417,266 square foot 211 Main Street office building in San Francisco for $292.8 million or $702 per square foot, according to public documents.
Blackstone declined to comment when contacted for this story.
The seller of the 18- story Class A property was Los Angeles-based CIM Group. It had acquired the property in 2009 for $113 million, according to public records. The real estate investment company sold the asset through the San Francisco office of HFF. The listing agent also declined to comment.
The cap rate on the transactions was in the five percent range, according to sources. This return is based on the property’s current income being produced. Charles Schwab & Co. occupies all of the space in the building, and the building is the investment company’s headquarters. Its below market lease runs through the end of 2018.
The building is located in the South Financial District of San Francisco and just blocks from the new, transforming redevelopments surrounding the Transbay Terminal.
Blackstone will likely add value to the property in the future by either bringing the rent up to market levels with the existing tenant or bring in a new tenant or tenants once the lease with Charles Schwab runs its course.