By Jon Peterson
Hong Kong-based Sino-Ocean Land has acquired the approximately 65,000 square foot office building in San Francisco at 1161 Mission Street for $42 million, or $640 per square foot, according to sources familiar with the transaction.
The seller of the property was Los Angeles-based Downtown Properties, which is associated with the Gaw family of Hong Kong Gaw Capital. The realty firm was represented in the transaction by the San Francisco office of Colliers International. The sales effort was led by Tony Crossley, executive vice president, along with Frank Wheeler, executive vice president and Tim Maas and Darren Kuiper, both vice presidents. Colliers declined to comment when contacted for this story.
Colliers has also been retained for landlord representation for the property on the leasing side. The people involved are Mike McCarthy, Mike Monroe and Brain McCarthy.
Downtown Properties had owned the asset since August of 2012. The real estate investment firm had paid $19.35 million for the property at that time. The owner had made improvements to the complex including re-tenanting the entire building.
A major tenant in the building is WeWork. This company now occupies approximately two-thirds of the entire building. This company’s lease runs through 2030. Other tenants in the building include Forerunner Ventures, an all-women led venture capital firm, and Augmedix, a technology company. The property was 90 percent leased at the time of the sale.
The acquisition by Sino-Ocean Land of the building on Mission Street will represent its first ever acquisition in the San Francisco Bay Area, as stated by sources familiar with the company’s investment activities. The company is looking to buy core real estate in the United States and had San Francisco as one of its primary markets for investment.
The capital source that bought 1161 Mission Street is the latest example on Chinese capital coming into San Francisco. Sources that track the sale of office buildings in the region, have indicated that Chinese capital will be making significant investments this year in the purchase of office buildings in San Francisco.