By Jon Peterson
MetLife has made a $345 million equity investment into the Park Tower at Transbay office development located at the corner of Howard and Beale Streets in downtown San Francisco, according to sources that are familiar with the transaction.
A company representative of MetLife declined to comment on this transaction.
The equity investment made by the life company will be done for the general account of MetLife. The equity investment will give the life company a 95 percent ownership stake in the project. The other 5 percent is held by the other partners in the joint venture. These are two Chicago-based companies, The John Buck Company and Golub Real Estate.
These two companies had agreed to buy the development site for $172.5 million earlier this year from the Office of Community Investment and Infrastructure in partnership with the Transbay Joint Powers Authority. The total development cost of the project is projected to be in excess of $690 million. The proceeds of the land sale for this project will be used by the Transbay Joint Powers Authority to cover a portion of the construction costs of the Transit Center.
The office development will total 743,000 square feet. The LEED Gold pre-certified office tower is planned to begin construction next month. The projected finishing date is June of 2018.
“MetLife is excited to be involved in the Park Tower project in San Francisco as it fits our long-term strategy of developing core assets in markets with strong fundamentals,” said Robert Merck, senior managing director and head of global real estate for MetLife, in a prepared statement.
The leasing efforts on the development are being done by the San Francisco office of JLL. This company was also involved in brokering the deal with MetLife. The leasing agents are Christopher Roeder, Wes Powell and Steve Anderson. The project will have 43 stories. The floor plates will vary from 12,000 to 27,500 square feet. There is subterranean parking for 124 spaces. The complex will have 10,000 square feet of high-end ground floor retail.