)
New York Life Real Estate Investors is in negotiations to acquire debt associated with 353 Sacramento St., potentially making it the third San Francisco office building the firm has acquired in the past calendar year, according to the San Francisco Business Times.
Under the deal, which is a collaboration between the real estate investment arm of New York Life and Lincoln Property Co., the partners will pay some of the money owed to lender Aareal for the 284K SF office property.
The past owner, a joint venture between Pacific Oak Capital Markets and Israeli insurer Migdal, owed approximately $89.6M, according to the Business Times. The news outlet also cited sources that said the purchase price will be in the low $200s per square foot, equating to a valuation of around $50M to $60M.
New York Life has been bullish on San Francisco lately, especially for deals below market value.
In August, New York Life partnered with investment firm Bridgeton to purchase 410 Townsend St., a 77K SF office building in San Francisco’s SoMa neighborhood, for $22M.
“We’re starting to see the green shoots of a San Francisco real estate market recovery as both start-up and more established companies seek compelling workspaces,” Albert Pura, New York Life Real Estate Investors senior director of transactions, said in a company announcement at the time.
He added that the price was attractive because it was well below its previous sale of $85.7M, which Clarion Partners paid in 2019.
In a third deal, New York Life partnered again with Lincoln Property Co. on the acquisition of the 210K SF office building at 600 Townsend St. W., the San Francisco Business Times reported last fall. The Showplace Square deal was for $62M.
Last year, San Francisco recorded approximately $1B in sales, the majority being distressed sales of one form or another, according to Colin Yasukochi, executive director of CBRE’s Tech Insights Center.
“Either a loan has come through and they can’t refinance it or they just want to sell it because performance has gone down. They either lost tenants or their income is less,” Yasukochi told Bisnow.
While the 353 Sacramento St. acquisition has yet to close, all signs point to a deal being completed soon, the Business Times reported.
New York Life and the other parties involved in the sale didn't immediately respond to requests for comment.
)
)
)
)
)
)
)
)
)
)
)
)