Huge Office Sale In Downtown San Francisco Nears Completion

STRS Ohio is selling its 631K SF office building at 44 Montgomery St. for $473M. Beacon Capital Partners is set to acquire the asset, IPE Real Estate reports. The sale will be one of the largest deals of the quarter.

STRS Ohio originally bought the property in 1997 for $111M or about $175/SF. The office is over 90% occupied. Beacon is expected to renovate the property.

The pension fund is selling the asset due to concentration risks. It has three buildings within eight blocks of each other in downtown San Francisco, STRS Ohio acquisitions director Eric Newberg said during a recent Bisnow event. No decisions have been made about how to redeploy the capital.

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