By Meghan Hall
Salesforce is continuing its San Francisco expansion, buying up commercial property in San Francisco even as businesses remain shuttered. In a transaction that closed in the middle of March, Salesforce purchased an aging commercial property at 440-450 Mission Street for $145.566 million, according to public documents. The seller of the property was Terminal Plaza Associates, a property management company that has since closed.
According to a source familiar with the transaction, the sale was an off-market deal, and no broker was involved.
The five-story building was constructed in 1920 and totals 73,385 square feet. Based on the total square footage, Salesforce paid about $1,984 per square foot for the property. No plans for the redevelopment or repositioning of the property have been submitted to the City of San Francisco at this time, although the property is zoned for development up to 550 feet in height.
The building is right across the street from Salesforce Tower, located at 415 Mission Street. Owned by Boston Properties, the tower is the tallest building in Northern California, rising 61 stories and totaling 1.4 million square feet, which is 100 percent leased to Salesforce.
The sale comes at a time when the future of the economy is somewhat uncertain due to the impacts of COVID-19. According to a first quarter report released by Cushman and Wakefield in April, the second quarter of 2020 is expected to see one of the largest real GDP declines in U.S. history, and payroll employment dropped by 701,000 jobs in March. However, some deals are still closing. During the first quarter, DWS Purchased 49 percent interest in 525 Market Street for about $608 million, while 301 Battery Street in the North Financial District sold to RFR Holding for $143 million, or about $769 per square foot.