Vanbarton Selected as Buyer of 101 Mission in San Francisco for $163.25MM

By Vladimir Bosanac

PGIM Real Estate has selected the buyer for its 206,959 square-foot 101 Mission Street office building in San Francisco, and it is New York-based Vanbarton, which is paying nearly $791 per square foot, or $163.25 million for the property, according to public documents. PGIM had placed the asset on the market earlier this year, and according to sources familiar with the details of the sale, the company was looking for pricing around $800 per square foot, or just around $165.5 million.

HFF’s San Francisco office led the listing on the sale of the property.

PGIM has owned the asset since 2013. The real estate firm had paid $100 million for the property at that time. It has made several improvements to the property since it was acquired, according to sources familiar with the building. These have included a reconstruction of the building’s lobby, a new building system and signing some new leases with the existing tenants in the property.

The building, which is on the corner of Mission and Spear streets and approximately two blocks from The Embarcadero is nearly fully leased, and many of the tenants have been signed up at market rents. The leasing efforts are managed by the San Francisco office of JLL, led by Chris Roeder and Brian Ivie. Some of the tenants in the building include Innovation Investment & Consulting North America, Castle Crow & Company and HNA Group.

According to the property flyer, suites with a bay view are still available. The document shows four suites totaling just over 25,000 square feet available for leasing, although some sources indicate that a portion of that vacancy is accounted for and should be taken off the market shortly.

The 22-story building is LEED Gold certified, Energy Star labeled, and it was designed by HKS Architects.

PGIM has been the owner and manager of the property for a large US-based institutional investor for a separate account relationship, as stated by sources aware of the ownership structure of the asset. PGIM’s client has a global investment strategy. A possible scenario is that the proceeds from the sale of the building might be re-invested in new investment opportunities around the globe, which could include Europe, according to sources.

Vanbarton Group is a privately owned, vertically integrated real estate investment and advisory firm with corporate offices in New York City and San Francisco, according to its web site. The company operates a number of separate account relationships and pursues a major domestic market opportunities through debt, credit or equity scenarios.

This is not the company’s first foray into the San Francisco’s market. Vanbarton owns 301 Howard, 100 Montgomery, 115 Sansome and 29 Stockton buildings. The company has also been involved in multifamily properties in San Francisco in the past, but it does not own any of those assets at this time, according to industry experts with knowledge of the company’s holdings.

Vanbarton could not be reached for comment.