Rockpoint is Buyer of 100 Pine in San Francisco for Approx. $289MM

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

Rockpoint, San Francisco, Bay Area, LaSalle Investment Management, JLL

By Jon Peterson

Boston-based The Rockpoint Group has been chosen as the buyer of the 402,534 square foot 100 Pine Street office building in San Francisco with a price of around $720 per square foot or $289 million, according to multiple sources that track the sale of buildings in the city.

Rockpoint declined to comment when contacted for this story.

The seller of the property was Chicago-based LaSalle Investment Management. The real estate investor did not respond to emails seeking comment on the sale. It had hired JLL through its San Francisco Bay Area Capital Markets Group as the listing agent. JLL would also not provide comment when contacted for this story.

The deal has not closed yet. Once it does, it will trade at a much higher value that what occurred the last time it was sold. LaSalle had bought the property in 2005 for $149 million or $370 per square foot. The manger’s capital source on the transaction was a separate account relationship the manager has with the Alaska Permanent Fund Corporation. The rents at the time of the sale were 23.4 percent below the current average market rate.

Rockpoint is mainly known as a value-add/opportunistic investor. At the time the property was put on the market for sale in September of this year, there was a definite value-add play for the property in the future. 52 percent of the property’s rentable area is expiring over the next four years.

The current occupancy in the property is 95 percent. The major tenants in the complex include Republic Indemnity, Simpson Gumpertz & Heger, Artisan Partners, Bank of NY Mellon and Lifelock. These existing tenants will give the new owner protected in-place cash flow.

100 Pine has a number of non-tech companies in the building. Finance, insurance and real estate tenants make up 62.7 percent of the space in the property. Tech companies amount to less than 10 percent of the property.

100 Pine was first developed in 1972. The current ownership of the asset has invested more than $12.5 million in property improvements over the past 10 years. Among the upgrades were common areas, elevator lobbies and restrooms.

A main tenant amenity in the building is a three-level subterranean parking structure. This facility can hold up to 150 cars. This is important as many surface parking operations in San Francisco have gone away and been replaced by office and apartment developments.

West Coast Commercial Real Estate News