By Jon Peterson
San Francisco-based Gerson Bakar and Associates has decided to put up for sale the approximately 800,000 square foot Levi’s Plaza office complex in San Francisco located at 1155 Battery Street. The potential price point on the sale could be in the range of $800 to $900 per square foot, according to multiple sources that track the sale of major office buildings within the city. At this pricing, the sales price could go over $700 million.
The seller has put the asset on the market through the San Francisco office of Eastdil Secured.
The investment sales brokerage community in San Francisco believes there is some uncertainty just how much space Levi Strauss will be occupying in the property in the future. This tenant is now out in the market looking at potential other locations, according to industry sources. According to a filing with the Securities and Exchange Commission, the tenant has a lease in the building totaling 354,797 square feet, or roughly 40 percent of the property, that lasts through the end of 2022.
Some other tenants in the property includes BCCI Construction, Spaces, WideOrbit and Ubiquity Retirement & Savings, as stated by CoStar.
The new owner of the property would certainly have the ability to raise the rent in the space occupied by Levi Strauss, whether the company decides to leave the space or remain in the building. As stated in regulatory filings, the tenant has rent that comes in at $33 per square foot on an annual basis. This compares to rent for many of the best locations in San Francisco at no less than $80 per square foot.