By Jon Peterson
Gaw Capital Partners has made the decision to place its 226,675-square-foot property located at 555 Montgomery Street in San Francisco on the market for sale. The price point on the potential sale could reach somewhere in the range of $190 million to $200 million, according to sources that track large office building sales in the San Francisco Bay Area. At that price point range, the per square foot amount could come between $838 and $882.
Gaw Capital declined to comment when contacted for this story. The global real estate investment firm has hired the San Francisco office of Eastdil Secured to be the listing agent on the planned sale.
Gaw Capital has been the owner of 555 Montgomery for almost three years. It acquired the property in March of 2017 for $120.6 million, or around $532 per square foot, according to public documents. The property owner stated on its website that it considers the asset to be a B quality property.
The property is located within the North Financial District of San Francisco. The building now has a current occupancy in the low 90 percent range, according to published reports. This would put the property lower than the current vacancy rate of 3.7 percent for the North Financial District for all office buildings in the sub-market through the fourth quarter of 2019, according to reports compiled by Newmark Knight Frank.
Newmark has the leasing agent assignment on 555 Montgomery, however, the company declined to comment when The Registry contacted it for this story.
One of the tenants in the office building is Knotel, the flexible workspace provider. The company signed a lease for 35,643 square feet in November 2018. This lease at the time was planned to cover the 3rd, 6th and 17th floors of the building.