Juul Labs to Buy 123 Mission in San Francisco for $397MM

By Jon Peterson

San Francisco-based Juul Labs has put a non-refundable offer of to acquire the office building in San Francisco located at 123 Mission Street for a total purchase price of $397 million, or roughly $1,147 per square foot, according to one source that is familiar with the sale of the property.

Juul declined to comment on the purchase and pricing of the property when contacted for this story. A company spokesperson wrote in an email “Juul Labs is experiencing rapid growth. Last year we grew from approximately 200 to 2,000 employees with a large portion of those jobs based in San Francisco. As a result, we are currently looking for additional office space in San Francisco and the surrounding Bay Area, but we have nothing to announce at this time.”

This planned transaction is an off-market deal, and there is no listing agent involved in the transaction, according to sources that track the sale of office buildings in San Francisco. The property is now roughly 40 percent vacant with additional space opening up once Salesforce leaves the property later this year.

The seller of 123 Mission is New York City-based Northwood Investors. This company did not respond to a phone call seeking comment for this story. This realty firm has owned the property since late May of 2018, when it acquired the 346,000 square foot 28-story property from HNA Group for $290 million, or $840 per square foot, according to public information.

123 Mission is the only San Francisco-based office asset Northwood owns. This property is not listed on either of its listed portfolio of owned assets or recent realized investments on its website.

The planned sale of the property would represent the third time that the property had traded hands in less than three years. HNA had acquired the property for $255 million, or $737 per square foot, in August of 2016. The property had been 95 percent occupied by a total of 14 tenants at that time.

Juul’s current headquarters are also in San Francisco. The company has a lease totaling 76,000 square feet at Pier 70.

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