By Jon Peterson
Atlanta-based Invesco Real Estate has placed under contract for purchase The Piers mixed-use project in San Francisco located at Piers 1.5, 3 and 5 near the Ferry Building, according to sources familiar with the transaction. The purchase price is projected to be in excess of $1,000 a square foot or no less than $82.5 million. The transaction has not closed yet.
This sales price would be a record price on a square foot basis paid for an office building in San Francisco should it come become a reality. The previous record was the $970 per square feet that Pembroke Real Estate paid for 140 New Montgomery earlier this year.
The seller of The Piers is San Francisco-based Pacific Waterfront Partners. The listing agent on the sale is the San Francisco office of Eastdil Secured. None of the parties in the transaction responded to inquiries seeking comment for this story.
Invesco is planning to acquire the property for an off-shore separate account client, according to sources aware of the deal.
The Piers asset has a total of 82,526 square feet. The office component of the project is totals 63,840 square feet, and the restaurant/retail part is 18,686 square feet. Some of the tenants in the project include Bloomberg and The Aperture Group on the office side and La Mar and Coqueta on the retail/restaurant portion.
The deal with The Piers property is a little different as it involves a ground lease that is controlled by the Port of San Francisco. The ground lease was started in April of 2004, and it expires in the year of 2054.