Rockpoint Acquires 100 Pine in San Francisco for $287.5MM

JLL, Alaska Permanent Fund Corporation, LaSalle Investment Management, The Rockpoint Group, San Francisco, Bay Area,

JLL, Alaska Permanent Fund Corporation, LaSalle Investment Management, The Rockpoint Group, San Francisco, Bay Area,

By Jon Peterson

Boston-based Rockpoint Group has acquired the 402,534 square foot 100 Pine Street office building in San Francisco for $287.5 million or $714 per square foot, according to sources that are familiar with the details of the transaction. The deal was completed on February 8th.

Rockpoint declined to comment when contacted for this story.

The seller of the property was Chicago-based LaSalle Investment Management. LaSalle had owned the property through a separate account relationship with the Alaska Permanent Fund Corporation. The real estate manager had bought the property in 2005 for $149 million or $370 per square foot.

The listing agent on the sale was the San Francisco office of JLL through its San Francisco Bay Area Capital Markets Group. Both LaSalle and JLL would not comment for this article.

Rockpoint is known in the real estate industry as a value-add investor. This won’t change with the company buying 100 Pine. There are a couple of factors that should allow the new owner to add value to the asset in the future. One is that 52 percent of the property’s rentable area has leases that will be expiring over the next four years. The rents at the time when the property was put up for sale in September of last year were 23.4 percent below market rates.

The property is now 95 percent occupied. The main tenants in the 1972-vintage property include Republic Indemnity, Bank of NY Mellon and Lifelock. Fire, insurance and real estate tenants make up 62.7 percent of the property. The tech exposure is less than 10 percent.

A main amenity in the asset is a three-level subterranean parking structure that has room for 150 cars. This is significant as many surface parking operations have been replaced in San Francisco by new development of office space and apartments.