$180 M Office Transaction Announces Hong-Kong Investor Great Eagle Holdings’ Arrival to Bay Area Market
- Dec 02, 2013
It’s been a fruitful few weeks for the San Francisco office market, and it recently got even better with the completion of a major off-market office deal. Foreign capital has elevated its presence in the area’s investment market recently and with the acquisition of the 123 Mission St. asset, Hong Kong-based investor, Great Eagle Holdings has made quite the splash. The price tag for the asset stood at around $179 million, and it represents a great foothold for the company in the city’s tech-driven office market.
According to The San Francisco Business Times, the investor worked on the transaction through one of its subsidiaries, Pacific Eagle Holdings out of San Ramon, Calif. The 29-story office building at 123 Mission St. offers tenants 345,000 square feet of office space, making it one of the largest buildings of its kind in the area. The property’s anchor tenant is Salesforce, which leases around 115,000 square feet of space, but will begin freeing up space as it completes its transition to new facilities at 50 Fremont St. and 350 Mission St. The property, also known as the Pacific Gas & Electric Building, currently has a vacancy rate of 12 percent. The facility is LEED Gold certified by the U.S. Green Building Council.
The per square foot rate paid by the Chinese investment company stood at about $516, making it one of the blockbuster deals of the year for the San Francisco office market. While best-in-class properties in the Bay Area usually trade for more than $500/square foot, overall rates have seen a drop this year. According to data processed by Marcus & Millichap Real Estate Investment Services, by the end of 2013, the city will see sales rates decrease when compared to 2012, reaching a median value of around $325/square foot. This marks a drop of around $50 for 2013 when compared to the previous year.
Char courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com
Image courtesy of 123mission.axisportal.com