NEW YORK – Clarion Partners, a leading real estate investment manager, today announced it has purchased a 358,590 square foot, 20-floor, Class-A office building at 600 California Street in San Francisco for $180 million.
Constructed in 1990 and updated in 2006, 600 California features a 2-1/2-story lobby and substantial underground parking. LEED Gold certified, the property is located in the city’s North Financial District at the prominent corner of California and Kearny Streets, and includes views of the Golden Gate Bridge, Alcatraz, Coit Tower, and the San Francisco Bay from the top six floors. It is close to public transportation and within walking distance of many top tier hotels as well as a multitude of restaurants.
“With its proximity to extremely tight market conditions in the South Financial District and South of Market (SOMA), the North Financial District is well positioned to draw new tenants from those submarkets who are looking for attractive office space,” said Richard Pink, Managing Director at Clarion Partners. “We are pleased to have the opportunity to acquire a property in the rapidly growing San Francisco marketplace.”
The San Francisco office market remains one of the country’s most vibrant, having recorded the strongest demand of all U.S. office markets over the past 12 months. Office vacancy rates are anticipated to average under 5 percent over the next several years, while rents are expected to climb by over 7 percent annually over the next 5 years as a result of job growth and limited supply of new office space.
The city’s overall economic condition continues to improve, driven by a rapidly expanding high-tech sector and those legal and financial services that feed off the dynamic growth of tech companies. Employment in the region grew by 2.5 percent in 2011, while the city’s current unemployment rate of 7.2% is below both the rates in the U.S. and California.
The seller of 600 California was an affiliate of Beacon Capital Partners, LLC and the investment agent was Eastdil Secured.
About Clarion Partners LLC
Clarion Partners has been a leading U.S. real estate investment manager for 30 years. Headquartered in New York, the firm has offices in major markets throughout the U.S. as well as a presence in Mexico and Brazil. With more than $24 billion in total assets under management, for over 200 institutional investors both domestic and international, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum.
More information about the firm is available at www.clarionpartners.com.