PGIM Puts 101 Mission in San Francisco for Sale, Looking to Attract Near $800/SQFT

By Jon Peterson

PGIM Real Estate has put on the market for sale the 206,959 square-foot 101 Mission Street office building in San Francisco. The potential sales price could approach $800 per square foot or somewhere in the neighborhood of $165.6 million, as stated by sources familiar with the property.

PGIM has signed a contract with the San Francisco office of HFF to be the listing agent on the sale of the property. Both the real estate manager and HFF declined to comment when contacted for this story.

PGIM has owned the asset since 2013. The real estate firm had paid $100 million for the property at that time. It has made several improvements to the property since it was acquired, according to sources familiar with the building. These have included a reconstruction of the building’s lobby, a new building system and signing some new leases with the existing tenants in the property.

The building, which is on the corner of Mission and Spear streets and approximately two blocks from The Embarcadero is nearly fully leased, and many of the tenants have been signed up at market rents. The leasing efforts are managed by the San Francisco office of JLL, led by Chris Roeder and Brian Ivie. Some of the tenants in the building include Innovation Investment & Consulting North America, Castle Crow & Company and HNA Group.

According to the property flyer, suites with a bay view are still available. The document shows four suites totaling just over 25,000 square feet available, although some sources indicate that a portion of that vacancy is accounted for and should be taken off the market shortly.

The 22-story building is LEED Gold certified, Energy Star labeled, and it was designed by HKS Architects.

PGIM has been the owner and manager of the property for a large US-based institutional investor for a separate account relationship, as stated by sources aware of the ownership structure of the asset. PGIM’s client has a global investment strategy. A possible scenario is that the proceeds from the sale of the building might be re-invested in new investment opportunities around the globe, which could include Europe, according to sources.

West Coast Commercial Real Estate News