Buildings in San Francisco's Financial District continue to attract attention from all kinds of investors.
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San Francisco-based developer Tidewater Capital and affiliates of the Goldman Sachs Merchant Banking Division have closed on 351 California St., arranging brokerage CBRE said Tuesday.
Turkish investor Polidev, which bought the 16-story, 140K SF office building for $35M in 2010, sold the asset for $108M, or about $771 per SF. That was more than triple its last purchase price.
The sale price and occupancy of the FiDi property are reflective of the S.F. district's hot office market, which has seen multiple buildings trade for above $900 per SF, like REDCO Development AEW Capital Management's July purchase of One Montgomery Street for $1,081 per SF.
Tidewater and Goldman Sachs' new California Street property is 89% leased by a long list of tenants working on its U-shaped floor plates and under exposed ceilings.
CBRE's Kyle Kovac, Mike Taquino, Russell Ingrum, Mandy Lee and Giancarlo Sangiacomo represented the seller in the transaction, while Tidewater and Goldman Sachs were self-represented.
Polidev, which invested about $8M into the building for renovation work in 2010 and a seismic retrofit in 2015, acquired 351 California following dramatic events surrounding prior ownership.
According to past reporting from the San Francisco Business Times, the mid-rise was owned from 1997 to 2009 by Luke Brugara, who was sentenced to 30 months in federal prison for false statements about profits on his income taxes. It was then briefly controlled by lender Danny Pang of PEM Group, who was charged by the Securities and Exchange Commission for fraud and committed suicide five months later.
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