Invesco to Buy 600 Battery in San Francisco for ~$120MM


By Jon Peterson

Atlanta-based Invesco Real Estate has been selected as the buyer of the 117,939 square foot 600 Battery Street office building in San Francisco for approximately $120 million, or just over $1,017 per square foot, according to multiple sources t hat track the sale of major office building sales in San Francisco.

The sale of the property has not closed yet. The projection is that there will be a final closing on the sale sometime during the month of January of 2019.

The seller of the property is a venture between Chicago-based M & J Wilkow and National Real Estate Advisors, based in Washington, D.C. The listing agent on the sale is the CBRE Capital Markets Group in San Francisco, which was led by Kyle Kovac and Michael Taquino. CBRE declined to comment when contacted for this story.

When the property was put up for sale in September, the asset was fully leased to Interpublic Group. This tenant has a lease that runs for the next two years at a rental rate that is close to $50 per square foot. This means that the new owner has an opportunity to add value to the property by re-leasing at a market rate.

600 Battery is located within the Jackson Square/North Waterfront sub-market for office space in San Francisco. At the end of the second quarter of 2018, average rents in the sub-market were at around $71 per square foot.

Invesco also has the opportunity to expand the size of the property. The office building is zoned C-2 with a height limit of 84 feet. This gives the new owner the potential to vertically add up to 93,000 square feet to the property in the future and expand the value of the asset further.