By Jon Peterson
New York City-based Clarion Partners has completed the acquisition of the 427,393 square foot 215 Fremont Street office building in San Francisco for $335 million, or about $784 per square foot, according to multiple sources familiar with the sale of the property.
Clarion did not respond to a phone call for this story. The seller of the building was New York City-based Jack Resnick & Sons.
The property was formerly known as the Charles Schwab Building. The main existing tenant in the building is Fitbit, who currently occupies around 124,380 square feet of space. There could be another tech tenant coming into the property soon. According to multiple sources familiar with the property, Google could be a tenant in the property in the future for a total of around 180,000 square feet.
Clarion Partners has a variety of capital sources that it could tap into for the acquisition of 215 Fremont. One of these would be its open-ended core commingled fund, the Clarion Partners Lion Properties Fund. It had a net asset value of $8.2 billion through the end of June 2018. This information was stated in a board meeting for the Nebraska Investment Council.
Clarion Partners also has multiple separate accounts with large pension funds around the country. One of its larger accounts is the California State Teachers Retirement System.