By Jon Peterson
Toronto, Canada-based Manulife Financial has placed on the market for sale the 720,000 square foot Market Center, a two-building office building in downtown San Francisco located at 555 and 575 Market Street. The life insurance company is asking $750 per square foot, according to sources familiar with the transaction.
Manulife did confirm through an e-mail that it has placed the property on the market for sale. It declined to comment as to its reasons for selling the property at this time of the market cycle.
The sales price on a square foot basis would result in a trade of somewhere in the neighborhood of $577.5 million. This kind of pricing would earn a significant profit for the seller. Manulife had bought the property in September of 2010 for $265 million or $344 per square foot, according to sources that track the sale of major office buildings in San Francisco. The seller of the property at that time was known as New York City-based RREEF.
The listing agent on the sale is the San Francisco office of Eastdil Secured. The property is now 92 percent leased. Some of the major tenants in the property are Uber and DivcoWest. According to published reports, this real estate investment company had acquired Market Center in 2003 along with RREEF for $79.5 million. DivcoWest had sold its ownership stake to RREEF in 2006.