S.F. Office Sales Are About to Heat Up. Here's Why.
Three months after the 16-story building at 450 Sansome in the heart of the North FiDi District hit the sales block, it's about to trade to LaSalle for $89M and kick off a flurry of upcoming deals in the city.
JLL managing director Steven Anderson, who leases the 133k SF building for seller Cornerstone Real Estate Advisers, confirmed that the deal is expected to close Thursday for $670/SF. He tells us there was "a ton of activity" and multiple buyers in the final rounds. It was 92% leased when it hit the market, and the last deal to close to make it fully leased was PartnerRe America Insurance Co, which took the whole fourth floor. The office got $4M in capital improvements over the last few years, including a brand-new modern lobby and entryway and new retail storefronts. Eastdil Secured marketed it. There was a dearth of for-sale signs in the city at the start of 2015, but that's about to change. "I would guess there will be a half a dozen assets coming to market in the next 90 days," he says.