By Jon Peterson
The planned sale of the Ferry Building in San Francisco has officially become a reality as it was placed on the market earlier this week. The pricing for this asset could reach the low $300 million range, or around $1,100 per square foot, as stated by sources aware of the sale.
The asset to be sold will be done so on a ground lease. The current owner of this lease is New York City-based Blackstone through its office building operating platform partner Equity Office. The listing agent on the sale is the San Francisco office of Eastdil Secured. Blackstone and Eastdil both declined to comment for this story.
The Ferry Building is an iconic and trophy asset in the San Francisco market. It would likely attract capital sources from the United States and on a global basis that are looking for a major core asset to acquire.
The Ferry Building has a ground lease that has another 65 years left to run. The land on the property is owned by the Port of San Francisco. The property has a total of 270,000 square feet. The mixture of the property is 190,000 square feet of office and 80,000 square feet of retail. The property right now has a current occupancy in the mid 90 percent range.
Blackstone and Equity office have owned the Ferry Building since 2006. Blackstone uses Equity Office as its operating platform when it makes new investments in office buildings around the country.