By Jon Peterson
Atlanta-based Columbia Property Trust has been selected as the buyer of the 585,621 square foot 650 California Street office building in downtown San Francisco. This publicly traded real estate investment trust is now working out a contact on the investment, according to sources familiar with the transaction.
Columbia Trust declined to comment when contacted for this story.
The sales price is projected to be in the range of $650 per square foot or $380.6 million, stated sources who have knowledge of the sale. The transaction at this point has not closed, and it’s unclear at this point when the deal will be completed.
The office building is being sold by New York City-based Tishman Speyer. This real estate firm does have a regional office in San Francisco located at One Bush Street. Companies’ representatives declined to comment when contacted for this article. The listing agent on the sale is Eastdil Secured.
650 California is a major Class A building located in San Francisco. It was first developed as a build-to-suit for Hartford Insurance in 1964, according to the Tishman Speyer Web site. It has twice been renovated over the past seven years in 2007 and 2013.
The 33-story office building is located within the Financial District sub-market in downtown San Francisco. Some of the major tenants in the property include Credit Suisse, Littler Mendelson and Goodby Silverstein & Partners.
The Financial District in San Francisco continues to hold tight occupancy. According to data from the San Francisco office of Colliers International, vacancy for this submarket is 7.6 percent for the second quarter of this year. It had been 8.9 percent in the first quarter.
650 California would be the second major office acquisition deal in San Francisco this year for Columbia Trust when it closes. In April, the public REIT paid $228.8 million or $589 per square foot to purchase the 387,943 square foot 221 Main Street office building.
Columbia Trust does consider the San Francisco Bay Area as one of its targeted markets. It also owns three buildings in Palo Alto and 333 Market Street in San Francisco.
Photo courtesy of gork.me