RFR Holding to Buy 301 Battery in San Francisco for $145MM

301 Battery Bently Reserve Bently Holdings CBRE San Franisco RFR Holdings

By Jon Peterson

New York-based RFR Holding is planning to close on the acquisition of 301 Battery Street in San Francisco in the near future. The purchase price on the property is $145 million, or just around $781 per square foot, according to multiple sources that are familiar with the sale of the office building. The new owner has made a non-refundable offer for the property, and the transaction is expected to close sometime in January of next year.

The listing agent on the sale is the San Francisco office of CBRE. Those working on the sale include Michael Taquino, Kyle Kovac and Russell Ingrum. CBRE declined to comment when contacted for this story.

301 Battery is an office building that totals 185,851 square feet. It has been known as the long-time home of the Federal Reserve Bank in San Francisco. It was first developed in 1924 and has gone through some significant renovations since 2005. The amount of capital spent on improvements has been more than $35 million. The upgrades have included the restoration of the building to its original grandeur, which also exceeded the property’s contemporary and environmental standards.

The sale of the property was thought to be a core plus kind of transaction. It is considered a core asset because of it is 94 percent leased with an average length of leases around 6.8 years. The plus part comes from the fact that additional income could be added once the leases come up for renewal as in-place rents are currently 35 percent below market.

Part of the property is now used to host of a variety of events. This section of the asset totals 33,509 square feet, and it has been used in the past for things like weddings and corporate functions. This part of the property could be used to host other similar events in the future or be converted into some type of office space.

RFR Holding is a privately held New York City real estate investment firm. If the close on the purchase of 301 Battery is finalized, this would be the only office asset that it owns in San Francisco. According to the company website, its other office assets are located in New York, Stamford and Seattle.

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