Hines and Foreign Capital Partner Near Closing on 49% Interest in Park Tower in San Francisco for $534MM

By Jon Peterson

Hines and the Hong Kong Monetary Authority are getting near the closing stage on their purchase of a 49 percent interest in the Park Tower office building in San Francisco. The purchase price closed at $534,000,000, according to a report by Newmark Knight Frank, or $1,425 per square foot. Closing on the transaction could be happening as soon as sometime in April, and it would value the property at almost $1.1 billion.

Hines declined to comment when contacted for this story.

The seller of the property is New York City-based MetLife. Last year the institutional investor had put the partial interest of the office building located at 250 Howard in San Francisco up for sale. It had hired the San Francisco office of Eastdil Secured as the listing agent.

The office building is now 100 percent leased to Facebook for the next 14 years. MetLife first came into the property in October of 2015. This investor had made a $345 million equity investment in the asset for the general account of Met Life. This capital allowed MetLife to be a 95 percent owner of the building. The other 5 percent is owned by John Buck Company and Golub & Company, who were the original developers of the asset. Both of these firms are based in Chicago.

The 43-story Park Tower has a total area of 764,000 square feet. The asset also includes 10,000 square feet of high-end ground floor retail and subterranean parking with a total of 124 spaces.

West Coast Commercial Real Estate News