By Meghan Hall
In what is shaping up to be a busy fourth quarter in Bay Area real estate, another transaction in San Francisco marks continued investor interest in the market. New York-based Clarion Partners, a consummate real estate investor across the region, has sold off 350 Rhode Island St., a 127,000 square foot office building leased to the City of San Francisco, according to sources with knowledge of the sale details. The buyer of the property was Washington, D.C.-based PRP Real Estate Investment Management. The firm paid $134.2 million, or around $1,055 per square foot, for the asset, according to that report.
The building was originally constructed 17 years ago in 2002 and was repositioned in 2018 when the District Attorney’s Office moved out of the Hall of Justice and into the building. The DA leases the majority of the property, about 84,695 square feet, and pays a base rent of $51 per square foot per year, or around $4.3 million. The San Francisco Police Department is also anticipated to take just over 40,000 square feet in the building.
Primarily an East Coast firm, PRP owns a slew of office assets in D.C., Maryland and Virginia, with additional multifamily assets in other states such as Georgia. Reports indicate that the firm is aiming for a 2019 goal of $1 billion in real estate investments, which would expand the company’s footprint significantly across the markets in which it invests.
Currently, the PRP owns Two Washingtonian, a nearly 300,000 square foot Class A office building in Gaithersburg, M.D., 1111 Pennsylvania Ave. NW., a 337,000 square foot office building in Washington D.C., which is one of only 11 private properties on Pennsylvania Ave., and Sequoia Plaza, a 370,000 square foot building in Arlington, V.A., which serves as the headquarters for the Arlington County Department of Human Services and the Arlington County Public School System.